The FY 2011 CW Program

Mr. Pete Luisa 1 March 2010 PNWA

Winter Leader Conference February 4, 2009

“ Building Strong “ 1

Civil Works Value to the Nation

Recreation areas 376 M Visitors/yr Generate $15 B in economic activity, 500,000 jobs ¼ of Nation’s Hydropower: $500 M + in power sales 11,000 miles of Commercial Inland Waterways: ½ the cost of rail 1/10 the cost of trucks 299 Deep Draft Harbors 400 miles of Shore protection

Winter Leader Conference February 4, 2009

627 Shallow Draft Harbors 8500 Miles of Levees Emergency Operations Stewardship of 11.7 Million Acres Public Lands Environmental Restoration

• •

US Ports & Waterways convey > 2B Tons Commerce Foreign Trade alone creates > $160 B Tax Revenues “ Building Strong “ Regulatory 2

PROGRAM STRUCTURE

Business Line Navigation

Coastal harbors; Inland Waterways

Flood Damage Reduction

Riverine Floods; Coastal Storms

Environment

Aquatic Ecosystem Restoration Stewardship Formerly Utilized Site Remedial Action

Hydropower Recreation Water Supply Emergency Regulatory Account

Investigations Construction Operations & Maintenance Mississippi River & Tribs Regulatory Program Formerly Utilized Sites Remedial Action Program Expenses Flood Control & Coastal Emerg Winter Leader Conference February 4, 2009

“ Building Strong “ 3

OMB-ASA GUIDANCE ( FEB-MAR ) Funding Alloc. To Field Offices ( Oct - Dec ) All Offices Develop Program Requirements ( Feb - May ) Budget Reviewed & Presented to SecArmy (Jun - Aug ) Budget Submitted to OMB ( Sep ) President Signs Approp. Bill ( Sep - Oct ) Appropriations Bills ( Jul - Sep ) OMB Passback ( Nov ) President’s Budget to Congress ( Feb )

Winter Leader Conference February 4, 2009

“ Building Strong “ 4

FY 09 PROGRAM PROCESS

Use Performance Measures and Policy Direction Guidance memo to:

· Rank competing investments in each business program · Demonstrate improved outcomes from added increments

Develop amounts based on their own internal performance metrics for:

· GE; REG; FCCE; REC; ENV Stewardship; FUSRAP

Develop Performance Based program for project competing business lines:

· Initial level (No new work, phases or contracts, previously budgeted projects only) · O&M at 75% of last 5 years budget; Investigations same as PY-1.

· Categorize and Prioritize CG projects into Priority levels · Add Performance Base High Return items and increments for GI and O&M items

Add to the Highest Priority, ongoing projects & contracts to “Final Budget”

Winter Leader Conference February 4, 2009

“ Building Strong “ 5

Budgeting Measures

Winter Leader Conference February 4, 2009

Construction FRM & NAV & HYDRO - Benefit to Cost Ratio FRM & NAV - Dam Safety & Seepage Stability FRM – Construction Flood “Risk” Index ENR - Loss prevention for significant natural resources O&M NAV – Tonnage movements FRM & NAV & HYDRO – “Risk” Assessments ALL New/Continuing/Completing/Years to Complete Watershed Elements ESA & compliance needs Safety, Caretaker, Compliance, Subsistence “ Building Strong “ 6

Winter Leader Conference February 4, 2009

PROGRAM COMPARISON

($ millions)

FY08 App FY09 Bud FY09 App FY10 Bud FY10 App FY11 Bud Investigations 167 91 168 Operation & Maintenance 2244 2475 2202 Construction 2294 1402 2142 Miss. River & Tribs.

Regulatory Program Flood Control & Coastal Em. 0 40 0 F.U.S.R.A.P.

140 130 140 Expenses 387 240 384 180 180 183 175 177 179 OASA(CW) 5 6 100 2504 1718 248 190 41 134 184 4.5 6 160 2400 2031 340 190 0 134 185 5 104 2361 1690 240 193 30 130 185 6 Total 5592 4741 5403 5125 5445 4939 “ Building Strong “ 7

Budget Arithmetic

Civil Works Budget Math $4,800 mil

• Allocate GE, REG, FCCE, REC, FUSRAP… • Allocate Base O&M (~75% of required) • Essential Dam Safety • Planning Studies - 900 - 1,800 - 500 • High Performing Construction • Life Projects - 700 - 200 • Environmental Requirements - 200 - 100 • Minimum Essential Allocation =

- $4,400

• Left for all other CW Projects & Programs

~ $ 400 mil*

• Use the $400 mil to restore project O&M to prior year levels Winter Leader Conference February 4, 2009

“ Building Strong “ 8

NEW ACTIVTIES & HIGHLIGHTS

Construction – Louisiana Coastal Area, LA., Onion Creek, TX.

Investigations – Water Priorities Study Water Resources P&G Support O&M – Coastal Data Information Program Global Change Sustainability Program

Winter Leader Conference February 4, 2009

$82.3 M from the IWWTF $764.4 M from the HMTF $58 M to be cancelled from the MR&T “ Building Strong “ 9

CW Funding Through FY11 Budget

Winter Leader Conference February 4, 2009

$6,000 $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Budget Request Final Approp.

“ Building Strong “ 10

Winter Leader Conference February 4, 2009

And for the Out Years …

• Expect a major debate on Federal funding priorities to commence with the FY 11 budget and continue beyond • We will continue to place a high priority on execution of all that is appropriated • We will seek to improve our budget ‘defense’ of the value to the nation of the water resources infrastructure for which we are responsible

“ Building Strong “ 11

ARRA Breakdown by Account

• • • • • •

SUMMARY OF APPROPRIATIONS ($Billions)

Investigations Construction $0.025

$2.000

O&M MR&T Regulatory FUSRAP

TOTAL

$2.075

$0.375

$0.025

$0.100

$4.600

Winter Leader Conference February 4, 2009

“ Building Strong “ 12

American Recovery and Reinvestment Act Selection Criteria - I

Purposes of the Law:

To preserve and create jobs and promote recovery To assist those impacted by the recession To provide investment needed to increase economic efficiency by spurring technological advance in science and health To invest in transportation, environmental protection, and other infrastructure that will provide long term economic benefits To stabilize State and local government budgets

Criteria in Conference Report refer to project, programs or activities that will:

(1) be obligated/executed quickly; (2) result in high, immediate employment; (3) have little schedule risk; (4) be executed by contract or direct hire of temporary labor; and (5) complete either a project phase, a project, or will provide a useful service that does not require additional funding. Winter Leader Conference February 4, 2009

“ Building Strong “ 13

Stimulus-Project Selection Criteria *

Criteria Implementation Obligate/execute quickly; High, immediate employment Sort and select by awards and/or completions dates Little schedule risk Complete phase, project, element, or will provide a useful service with no additional funding Execute by contract or direct hire of temporary labor Districts filter out all projects with schedule risk Districts prepare work packages accordingly No in-house labor except for OH/E&D/S&A No reimbursements No land purchase

*

No cost sharing with Inland Waterways Trust Fund Significant “transparency” requirements for tracking, monitoring and reporting of specific metrics All unobligated funds (except for E&D, S&A and claims) expire 30 Sep 2010.

Winter Leader Conference February 4, 2009

“ Building Strong “ 14

Civil Works Recovery Act Status

Programs

Operation & Maintenance Construction $2,075 $2,000 Mississippi River & Tributaries $375 Formerly Utilized Sites Remedial Action Program (FUSRAP) $100

Planned ($M) Obligated ($M)

74% $1532 53% $1049 58% $218 90% $90

Outlays ($M)

23% $486 11% $221 31% $117 13% $13

Projects Planned/S tarted (#)

• 533/521 175/147 • 45/37 • 10/10 •

Program Status:

Congress appropriated and U.S. Army Corps of Engineers (USACE) Civil Works Program planned to spend $4.6 billion in the Recovery Act funds. U.S. Army Corps of Engineers (USACE) obligated $75 million during the week ending, January 29 bringing the cumulative obligation total of Recovery Act funds to $2,917 million, 63% of the appropriation.

USACE cumulative total outlays as of January 29 was $851 million, 19% of the appropriation.

End of March obligation target = 76% Investigations $25 Regulatory Program $25 64% $16 46% $12 24% $6 33% $8 66/54 1/1

830/770

Winter Leader Conference February 4, 2009

“ Building Strong “ 15

FY10 Civil Works ARRA Execution All Programs

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 900 800 700 600 500 400 300 200 100 0 Basic Sched Current Sched Actual Aw ds Basic Sched (cum) Current Sched (cum) Actual Oblig (cum) May 09 Jun-09 Jul-09 Aug 09 64 110 124 228 228 228 127 223 267 535 535 535 328 381 434 899 899 899 333 454 Sep 09 613 771 Oct-09 77 84 Nov 09 89 103 Dec 09 230 208 Jan-10 289 292 1,308 2,214 2,405 2,569 2,803 2,948 Feb 10 180 192 Mar 10 272 345 Apr 10 57 58 May 10 26 22 Jun-10 Jul-10 39 32 18 14 Aug 10 24 20 Sep 10 26 18 453 738 103 134 209 175 1,308 2,214 2,404 2,562 2,733 3,050 3,286 3,667 3,743 3,881 3,955 4,072 4,144 4,266 FY 2011 16 1,308 2,214 2,404 2,568 2,801 3,065 3,294 3,680 3,771 3,903 3,985 4,099 4,188 4,331 4,431 0 Data a/o 29 January 2010 Winter Leader Conference February 4, 2009

“ Building Strong “ 16

ARRA PLANNED ACCOMPLISHMENTS

Winter Leader Conference February 4, 2009 Hydropower 35 projects repaired or improved Environmental Infrastructure 148 Local water supply & wastewater project constructed Recreation 460 recreation areas maintained or upgraded Navigation 48 Locks repaired or improved Flood Risk Management • 122 Dam safety • 76 Local Protection • 96 Dams repaired or improved • 10 Emergency bank protection • 820 Levee inspections

“ Building Strong “ 17

How We All Contribute

•

USACE:

– Develop the vision, goals, objectives in an open, collaborative way – Implement the Strategic Plan •

Administration:

– “Walk the performance-based budget talk.” •

Stakeholders:

– Contribute to vision, Goals, Objectives, Metrics •

ALL: Keep Communicating

!

A Vision to be the desired future state of water resources and the desire to have a water resources infrastructure that will serve this Nation’s economic, quality of life needs, today and into the future.

Winter Leader Conference February 4, 2009

“ Building Strong “ 18