Senator Bob Casey (D-PA) Offers New Waterways Funding Proposal
WCI Executive Committee Endorses River Act of 2013
Waterways Council Inc. Release
15 February 2013
In a special meeting called yesterday to consider this proposal,
WCI’s Executive Committee unanimously voted to support The
Reinvesting in Vital Economic Rivers and Waterways (RIVER) Act of
2013, announced today by its sponsor, Senator Bob Casey
(D-PA). The plan, introduced in Pittsburgh, would establish
a sustainable, cost-effective way to ensure that the inland and
intra-coastal waterways of the United States remain economically
viable. This bill would modernize America’s inland waterways
system, create jobs, relieve traffic congestion, and optimize
American competitiveness through the most low-cost,
energy-efficient transportation mode.
The River Act of 2013, based upon the elements contained in the
Inland Waterways Capital Development Plan, would:
- Prioritize the completion of navigation projects across
the entire waterways system;
- Improve the Corps of Engineers’ project management and
processes to better deliver projects on time and on budget, in
order to realize $8 billion in job creation;
- Reform project cost allocations;
- Recommend an affordable – and increased -- user fee
funding mechanism to meet the system’s needs, and,
- Realize a sustainable annual appropriation of $380
million, of which a significant portion is paid for by
commercial users of the system.
The River Act of 2013 represents a new approach to meet the
long-standing, recognized need for efficient delivery and timely
completion of critical navigation projects and sustainable funding
for the Inland Waterways Trust Fund. The nation’s
transportation system and taxpayers would benefit from the
completion of essential navigation infrastructure and the
containment of cost overruns.
The proposal would:
- Preserve the existing 50% industry/50% federal
cost-sharing formula for new lock construction and major lock
rehabilitation projects.
- Include a cost-share cap on lock construction projects to
incentivize keeping projects on budget and prevent shippers
from bearing the burden of paying for unreasonable cost
overruns. This will strengthen the ability of the Inland
Waterways Trust Fund to fund more priority projects in the
pipeline.
- Increase by 45% (9 cents per gallon) the existing fuel
tax of 20-cents-per-gallon that is paid by the barge and
towing industry, the only users of the system who currently
are taxed. At the same time, the recommended reforms to
the Corps of Engineers’ project management and delivery
process would ensure that these additional resources are spent
wisely.
WCI President/CEO Michael J. Toohey participated in the
announcement in Pittsburgh and said this in a press release issued
today: “We applaud Senator Casey’s effort in devising the River
Act that will modernize our critically important inland navigation
system and its infrastructure. Modern waterways are critical
to U.S. competitiveness in the world market, to environmental
protection, to energy efficiency, to highway congestion relief and
to the sustainment of well-paying American jobs. They
benefit the U.S. agricultural sector, our construction industry,
our energy sector, our environment, our economy, and all the
beneficiaries of the waterways system.”