Nashville District Update for Tennessee Tombigbee Waterway Opportunities Conference

Nashville District Update for Tennessee Tombigbee Waterway Opportunities Conference Mike Wilson, P.E. Deputy District Engineer for Project Management Planning, Programs and Project Management Division Nashville District August 2013 US Army Corps of Engineers BUILDING STRONG

Discussion

Nashville District Projects Mississippi R. Ohio R. Paducah Kentucky Tennessee Tennessee R. Barkley Cumberland R. Cheatham Cumberland River Basin Nashville J. Percy Priest Kentucky Old Hickory Center Hill Wolf Creek Cordell Hull Laurel Dale Hollow Melton Hill Watts Bar Martins Fork Knoxville Ft. Loudoun North Carolina Virginia Mississippi Tennessee-Tombigbee Waterway Pickwick Wilson Alabama Wheeler Chattanooga Guntersville Nickajack Tennessee River Basin Chickamauga Georgia Lock & Dam Dam South Carolina 3

KY Lock & TennesseeTombigbee Waterway Kentucky Lock BUILDING STRONG

Kentucky Lock $857M Project FY 12: $6.5M (ARRA) FY 13: Budget: $0M FY 13: Work Plan: $39.7M (CG) FY 14: Budget: $0M Construction Activities: Upstream Lock 71%

Total Project Cost Estimate (Oct 2013, Fully Funded)

Kentucky Lock Funding Status American Recovery and Reinvestment Act (ARRA) - short term relief for navigation projects does not require IWTF match. KY Lock received $88.9M in ARRA funds. Allowed new lock construction to resume after its halt in 2006. FY13 Work Plan funding of $39.7M (all CG with future IWTF payback) - will be used to complete a permanent line of protection against pool loss : Upstream Lock Monolith 6 remaining contract options (construction of 9 upstream monoliths) Upstream Miter Gates Fabrication and Installation

KY Lock Addition - July 2013 New Hwy and RR Bridges New PH Island Access Bridge Upstream Cofferdam Ongoing Upstream Lock Monoliths BUILDING STRONG

Upstream KY Lock 19 Aug 2013 BUILDING STRONG

Upstream KY Lock 19 Aug 2013 BUILDING STRONG

KY Lock Future Funding Existing ARRA and FY 13 (CG) funds - Maintain construction activities into FY 15 (Upstream Lock Monoliths and Upstream Miter Gates). Status of IWTF Project may not receive significant additional funding until there is a fix to the IWTF. Year-long Continuing Resolutions or Appropriation Mini-pots are possible sources for future funding. If no additional funding in FY 15 or FY 16 Project construction will be suspended indefinitely.

Chickamauga Lock & TennesseeTombigbee Waterway Chickamauga Lock BUILDING STRONG

Chickamauga Lock $705M Project FY 11&12 ARRA Funds FY 13 Budget: $0 FY 14 Budget: $0 Construction Activities: Cofferdam Gates & Valves Approach Walls All completed in FY12/13

Chickamauga Lock Concrete Growth

Total Project Cost Estimate (Fully Funded)

Chickamauga Lock Funding Status American Recovery and Reinvestment Act (ARRA) - short term relief for navigation projects did not require IWTF match. Chickamauga Lock used $49.4M in ARRA funds; Allowed completion of the cofferdam and fabrication of miter gates, culvert valves, culvert bulkheads and approach wall beams. Did not receive FY13 Work Plan funding. Not in FY14 Budget Completed construction plans and specifications can be separated into various sized contracting packages to take advantage of funding availability. If no additional funding is received, this important navigation project will cease construction activities indefinitely.

Chickamauga Lock Cofferdam Contract

Chickamauga Lock Miter Gates, Culvert Valves and Culvert Bulkheads Stored at Muscle Shoals

Chickamauga Lock Approach Wall Beams Transiting Chickamauga Lock Stored at Watts Bar BUILDING STRONG

Chickamauga Lock Future Funding Existing ARRA contracts will close out this CY. Status of IWTF Unlikely project receives significant additional funding in FY 14 - Depends on the fix to the IWTF If no additional funding in FY 14 indefinite halt to construction activities at the project.

Chickamauga Lock

To FY09 - $15.3M FY10 - $3.8M FY11 - $3.5M FY12 - $1.8M FY13 - $0 FY14 - $0 FY15 - $? Chickamauga Lock AAR-Related Maintenance

Four Active IWTF Projects Olmsted Lock & Dam $3.1B Kentucky Lock $857M Lower Mon $1.8B Chickamauga Lock $705M BUILDING STRONG

Inland Waterway Trust Fund Annual Revenues ($ Millions) FY 05 FY 06 FY 07 FY 08 FY 09 FY10 FY 11 FY12 FY13 91.3 80.8 91.1 87.6 76.0 74.1 83.9 89.2 82? Olmsted L&D Annual need through FY 16 = $75M+

Inland Waterways Trust Fund (IWTF) Funds 50% of Capital Improvement and Major Rehab Projects Revenues from a $0.20/gallon tax on marine diesel fuel Over last seven years, revenues have not been sufficient to cover ongoing construction for existing projects, much less planned projects

IWTF Funding (cont.) Only four active, large capital improvement projects (all LRD) in order of priority: Olmsted ($3.1B, 50% complete) LRL Lower Mon ($1.8B, 32% complete) LRP KY Lock ($857M, 48% complete) Chickamauga Lock ($705M, 26% complete)

IWTF Funding (cont.) Olmsted has annual funding needs of about $150M+ through 2020, (or $75M+ IWTF annually) Annual revenues of IWTF $74M to $85M.

IWTF Funding (cont.) Inland Waterways User Board Presidential appointed board of industry leaders that make recommendations on IWTF to Congress Capital Projects Business Model Joint report of Corps and Nav. Industry (IWUB) 100% consensus on recommendations by Navigation Industry Submitted fall of 2010 Key Recommendations Increase tax from $0.20/gall to 0.26-0.29. Exempt major rehabs <$100M from IWTF cost share December 2010 letter from ASA(CW) was not supportive of plan Requires authorizing legislation, probably WRDA

Future IWTF Funding Prospects Possible Fixes to the IWTF WAV4 Cong. Ed Whitfield (KY-1) et al Incorporates much of recommendations of Capital Projects Business Model American Waterworks Act Sen Lamar Alexander (TN) et al Exempts Olmsted from the IWTF Increases revenues to the IWTF by increasing diesel fuel tax Various Exempts Olmsted from the IWTF Any of the above would benefit KY and Chickamauga Locks but may not result in immediate funding. Timing and Prospects for above???

Ramifications (without IWTF Fix) Both KY and Chickamauga Locks construction will probably be (mothballed) Chickamauga in 2014 and KY in 2016. $597M invested that will be idled and degrading/rusting Lost AAB 318 River miles at risk above Chickamauga Lock

Mississippi R. Ohio R. Paducah Kentucky Tennessee Barkley Cumberland R. Cheatham Nashville Cumberland River Basin Kentucky Old Hickory Wolf Creek Cordell Hull Laurel Dale Hollow Martins Fork Knoxville Virginia Tennessee R. J.Percy Priest Center Hill Melton Hill Ft. Loudoun Watts Bar North Carolina Mississippi Tennessee-Tombigbee Waterway Pickwick Wilson Alabama Wheeler Guntersville Chattanooga Nickajack Tennessee River Basin Chickamauga Georgia Lock & Dam Dam South Carolina

Tennessee River O&M Funding ($ Millions) FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Pres. Bud. $M 22.3 20.2 16.8 16.2 21.3 20.4 22.7

Navigation Two lock dewaterings Kentucky Lock FY13 O&M Installing tow haulage, repair and paint lower gate, modify culvert valves Pickwick Main Lock Repaired upper gate operating machinery, cracks in the lower gate and seals on culvert fill valves Repaired maintenance closure structures for multiple locks Removed an obstacle below Wheeler Main Chamber and reset mooring buoys above the chamber Shifted Nickajack, Guntersville and Barkley to 20- hours per day operation

Navigation Planned FY14 O&M Cut slots for new maintenance closures at Wilson and Wheeler Main Chambers (upper end) and Kentucky (lower end) No closures Limited to daytime hours probable interference with NAV Guntersville Lock Culvert valve work No closure Minimal interference with NAV daytime only. L&D 52 work for LRL in Fall 13 dates TBD Fall Navigation Meeting - TBD

Nashville District Homepage www.lrn.usace.army.mil