Kristin Meira Government Relations Director PNWA Staff Update Glenn Vanselow Executive Director Kristin Meira Government Relations Director

FCRPS BiOp

Biological Opinion Lawsuit Final BiOp issued May 2008 Challenged in court by: National Wildlife Federation, et al State of Oregon Nez Perce Tribe Defended by: Federal Agencies States of Washington, Idaho, Montana Warm Springs, Yakima, Umatilla, Colville, Salish-Kootenai Tribes Navigation (IPNG) Bonneville Customers (NWRP) Irrigators (CSRIA, WA Farm Bureau

Biological Opinion Lawsuit Unprecedented collaboration Fish Accords (6 Tribes, 3 states) Obama Administration review Judge Redden guidance letter Issues in play Validity of jeopardy standard NOAA’s judgment that all 13 stocks are “trending toward recovery” Additional actions sought by Redden Contingency plan and dam breaching

BiOp-Related Activities Dam breach advocates aggressive campaign Administration Congress Media Outdoor businesses Calls for new, “inclusive” collaboration Plaintiffs A few Members of Congress

PNWA Supports/Defends Navigation Key messages: The science-based collaboration has worked Support the BiOp The BiOp provides: More funding… More actions… More certainty… More cooperation… More promise… for rebuilding fish runs than this region has ever seen Climate change benefits of dams Dam breaching is not the answer

Fuel Efficiency (ton-miles per gallon) Emissions (grams per ton mile) Barging is the lowest cost, most fuel efficient & least polluting mode of transportation. Fuel Efficiency (ton-miles per gallon) Emissions (grams per ton mile) Each year, barging keeps 700,000 trucks off the highways through the sensitive airshed of the Columbia River Gorge

Hydropower is clean, carbon free, renewable and reliable. It would take 3 coal-fired, or six gas-fired power plants to replace the average annual power produced by the four Snake River dams. It would take 6 coal-fired, or 14 gas-fired power plants to provide the average peaking capacity of the four Snake River dams.

Dam Breaching is not the answer 1992 Snake River drawdown test Lower Granite Reservoir, Clarkston, WA. March 17, 1992 The Red Wolf Marina was destroyed and went bankrupt

1992 Snake River drawdown test Lower Granite Reservoir, Clarkston, WA. March 17, 1992 Tributaries were cut off from the mainstem of the Snake River Thousands of smolts and adult fish were stranded and killed

Recent PNWA Actions Federal agencies’ strategy on: Administration review Redden response Defense coalition strategy Met with Dr. Lubchenco in DC Met with Congressional delegation Idaho Statesman Sunday op-ed Keep coalition together IPNG strategy and activity

BiOp Overview PNWA supports this collaboration PNWA supports the Biop The dams provide environmental benefits Dam breaching is not the answer

BiOp’s Future Administration review is key - due August 14 Outcome in court is uncertain Redden’s decision will be appealed, either way Plaintiffs will continue to be aggressive We have been winning Navigation will remain fully functioning over the long run But only if we carry on the fight

Review of our navigation efforts

PNWA is delivering on policy Working to resolve deep draft and inland navigation trust fund issues Making progress on regulatory challenges in our region WRDA success in 2007: dredge fleet restrictions lifted Section 214 extended, with continued effort to make permanent Snake River PSMP moving forward Channel deepening, jetty repairs, and inland project priorities advanced PNWA: Successfully advocating for transportation, trade, energy, tourism and the environment

Navigation Funding Review

PNWA is delivering on appropriations Total funding increase: over $166 million in last seven years Average annual funding increase: $24.2 million per year Average number of projects increased: 11 projects per year Average number of projects increased from zero: 6 projects per year PNWA is the only regional group that consistently delivers significant funding increases for Northwest navigation projects – even when national Corps budgets are constrained All touts are for FY2003-FY2008

2009 is a unique and challenging year, because … FY2009 funding was not finalized until March 11, 2009 This is over five months after the fiscal year began Corps funding was rolled into “omnibus” with most other domestic spending Channel deepening received $34.5M Many coastal projects received increases over the budget amounts Projects that received increases in omnibus over FY09 PBUD: Mt. St. Helens sediment control, WA Elliott Bay Seawall, WA study (Port of Seattle) Tillamook Bay & Bar (Port of Garibaldi) Yaquina River (Port of Toledo) Siuslaw River (Port of Siuslaw) Umpqua River (Port of Umpqua) Swinomish Channel (Port of Skagit County) Columbia River at Baker Bay (Port of Ilwaco) Columbia River b/t Chinook & Sand Island (Port of Chinook) Important inland projects received funding. The major rehab study of John Day received approximately $2 million. Operations and maintenance funding for the eight locks and dams on the Columbia Snake River System was fairly flat, though many of these projects were the recipients of stimulus spending.

2009 is a unique and challenging year, because … ARRA funding for the Corps was greatly delayed Corps received $4.6B in the “American Recovery and Reinvestment Act” (stimulus package) OMB nitpicking delayed the Corps’ ability to finalize their project lists for over seven weeks Corps project lists were released on April 28th A number of PNWA projects were stimulus beneficiaries: Columbia River channel deepening: $26.6M Tillamook Bay & Bar (Port of Garibaldi): $13.9M John Day lock gate and tainter valves: $19M Coos Bay: $4.5M The Dalles tainter valves: $3M Lake Washington Ship Canal: $2M Port of Siuslaw: $1.9M Port of Umpqua: $659K Port of Toledo: $640K

2009 is a unique and challenging year, because … The Corps FY2010 budget details were not released until May 19, 2009 OMB continues to exercise extraordinary oversight in Corps budget creation The Corps budget details were released after House and Senate members had closed out their appropriations requests PNWA is seeking a $52.5M increase for our supported projects, including: Maintenance for Columbia & Lower Willamette, and channel to the Dalles Coos Bay jetty major maintenance report All eight inland navigation projects, including $14M for LoMo lock gate Columbia River at Baker Bay (Port of Ilwaco) Skipanon Channel (Port of Astoria) Mt. St. Helens sediment control Elliott Bay Seawall study and maintenance for Duwamish/Seattle Harbor and Lake Washington Ship Canal Humboldt Bay Shoal Management study and maintenance dredging

Despite challenges, PNWA is making progress on … Channel deepening MCR jetties Coastal projects Inland projects Puget Sound projects Pictures are Seattle Seawall, LoMo, and the MCR south jetty

WRDA Outlook

New WRDA unlikely until 2010 at the earliest House Transportation & Infrastructure Committee (T&I) requested submissions for a new WRDA in early 2008 PNWA staff polled membership for project and policy needs Section 214 permanence is high priority policy request PNWA is working with Corps and Congress to address improvements to the authority Two ports have project submissions Highly unlikely WRDA will be enacted this year PNWA is laying foundation for success when a new WRDA is passed WRDA is one potential vehicle for new user fees, or changes to existing user fees

Harbor Maintenance Trust Fund

Harbor Maintenance Tax revenue is not fully spent Harbor Maintenance Trust Fund (HMTF) was designed to collect funds to pay for 100% of navigation O&M Administrations have used some of those funds to balance the budget Current tally of unexpended receipts is over $4.7 billion It is expected to grow to $8 billion by 2011 Approximately $500M per year is unexpended Fund grows while O&M remains underfunded PNWA has long advocated for increased HMTF expenditures for navigation maintenance

Several proposals to address the HMTF “surplus” RAMP proposal would legislate spending all HMT receipts collected on navigation maintenance Other proposals would divert HMT funds for alternate purposes PNWA supports: Protect trust funds to ensure that all transportation user fees collected are dedicated and used for their stated transportation infrastructure maintenance and development purposes; Harbor Maintenance Trust Fund: Support spending from the Trust Fund to fully maintain the nation’s ports, waterways and harbors. Ensure that the existing Harbor Maintenance Tax (HMT) is fully spent for navigation purposes; Freight Transportation Fund: Create a dedicated national Freight Trust Fund (FTF) to meet port intermodal, rail and highway needs that is funded by sources other than existing navigation user taxes.

Inland Waterways Trust Fund

Proposed lockage fee for barges Bush, and now Obama Administration … Looking for more revenue Towboaters currently pay a 20 cent/gallon tax that goes into the Inland Waterways Trust Fund IWTF pays for 50% of Corps construction and major rehab projects on the inland waterways About $90 million is generated annually, which is insufficient to keep pace with current and expected project costs In FY2010 budget, Administration proposed a lock user fee to replace the existing diesel fuel tax The IWTF share of the cost for work was $205M in FY2007 and is expected to be $205M in FY2008 The balance in the IWTF has been declining since 2002 Balance at the end of FY2008 is anticipated to be $29M

Proposed lockage fee for barges PNWA opposes these proposed lockage fees Higher fees are counter to other Administration policies: More fees on barging could result in modal shifts Modal shifts would result in greater fuel use and air emissions Higher transportation costs will reduce the competitiveness of American products in international markets New fees should not be assessed until there is consistency in navigation trust funds. Though PNWA opposes lockage fees, our membership supports a national dialogue to determine equitable stakeholder funding levels We are also working to have our inland major maintenance needs met while the IWTF remains unaddressed Lockage fees would be passed along to the growers who rely on this system Inland barging is the least polluting way to move cargo - increasing the cost of barging may result in a shift of some cargo from barge to other modes of transportation. That would lead to an increase in fossil fuel consumption at a time when our country is working to reduce our dependence on foreign oil, decrease air pollution and address climate change.

What next?

PNWA’s 2009 Agenda: Work to meet FY2010 appropriations goals Fight new/increased user fees Continue to improve permitting process Continue effort to protect navigation, hydropower and salmon Help our members meet their needs

Questions?