BUILDING STRONG ® 1 US Army Corps of Engineers BUILDING STRONG ® America’s Water Resources: A View to the Future Presentation to National Waterways Conference Steven L. Stockton, P.E. Director of Civil Works U.S. Army Corps of Engineers 24 September 2010

BUILDING STRONG ® 2 National Water Resource Challenges Energy Persistent Conflict Aging Infrastructure Aging Infrastructure Globalization Increasing Demand for Water Increasing Demand for Water Governance  Federal Budget  Legislative Changes Governance  Federal Budget  Legislative Changes Climate Change Climate Change Environmental Values Declining Biodiversity Disaster Preparedness and Response Disaster Preparedness and Response Demographic Shifts Demographic Shifts

BUILDING STRONG ® 3 Asian Carp (Great Lakes/Mississippi River) Vegetation on Levees (WA, CA, TX) ACT/ACF Basins (GA, AL, FL) Everglades Restoration Great Lakes - Lake Levels Chesapeake Bay Bay Delta, CA Columbia Fish Program (OR, WA, ID) Columbia River Treaty Missouri River Regional Water Resources Challenges

BUILDING STRONG ® Asset Management & Infrastructure Recapitalization Deliver reliable infrastructure through use of risk-based assessments Risk-informed strategy applied to budget process Optimize use of limited resources across multiple business lines 4

BUILDING STRONG ® The value of the Corps CW’s capital stock portfolio has declined from a peak value of ~ $250 billion in 1983, to ~ $165 billion today, as new investment & maintenance have not kept pace with depreciation. 5

BUILDING STRONG ® This graph shows the annual difference between depreciation & expenditures. For the years where a line is above 0 axis the CW’s net capital stock is growing, while for the years where the line is below zero the value of the stock is declining.

BUILDING STRONG ® A Risk Management Approach to Asset Management 7 Time

BUILDING STRONG ®  Addressing user needs: Nonstationarity & Hydrologic workshop: Jan 2010  The risk associated with extreme events has been based on relatively short-term hydrologic records – in some cases potentially affecting the reliability of critical infrastructure during floods and droughts.  Planning and operations need to be re-assessed & verified given nonstationary conditions.  Best Practices - analytical techniques integrating climate change into statistical evaluation of designs & operations are needed as basis for consistent policies on assurance of reliability. Products thus far: Proceedings (summer 2010) Special issue JAWRA (16 papers) The Future Will Not Look Like the Past

BUILDING STRONG ® 9 Corps Water Resources Priorities – FY10 Transforming the Corps Civil Works Program to meet 21 st Century needs Flood Risk Management Contingency Planning & Disaster Response Integrated Water Resources Management - Watersheds & Systems Knowledge Management Asset Management & Infrastructure Recapitalization Regulatory Program

BUILDING STRONG ® 1) Integrated Water Resources Management - Focus on Sustainable Solutions Using Watershed Perspective/Approach 2) Governance & Management - Federal Interagency Partnerships 3) Continue Dialogue - Increase awareness & national emphasis in support of State water priorities 4) Collaboration - Management of water as a collaborative endeavor focused on shared responsibilities 5) Water Resources Investment Strategies - Innovative Financing 6) Managing Extreme Events - Adaptation to Climate Change 7) Knowledge & Technology Transfer - Integrated Water Information & Services 8) State Water Resources Leadership - Recognize Primacy of State Role 9) Communications and Education - Active & Continuous Engagement w/Public Responding to Water Resource Challenges

BUILDING STRONG ® The USACE Planning Process A structured, rational approach to problem solving A specialized discipline that requires experience, analysis, inspiration & intuition A way to identify water resources problems and opportunities, formulate and evaluate alternative solutions and identify tradeoffs. A disciplined process to assist decision makers in recommending appropriate investments. 11

BUILDING STRONG ® Continue to Move Civil Works direction toward Integrated Water Resources management (IWRM) Shape Principles and Guidelines revisions ►Support interagency team developing procedures and methodologies ►Ensure recommendations are implementable Shape National water resources direction ►Build the public will to support water resources /infrastructure ►Raise awareness within the Administration and Congress of water resources challenges and opportunities ►Provide data and information nation-wide to assist in planning and management our water resources---A Federal Support Toolbox Transforming the CW Program to Meet 21 st Century Needs 12

BUILDING STRONG ® Modernizing the Process Updating key guidance Improving independent external peer review (IEPR) procedures Improving current pre-authorization process Legislative recommendations for alternative feasibility process that can be achieved in 18 months Simplifying cost-sharing requirements 13

BUILDING STRONG ® Stronger partnerships for collaborative problem solvingStronger partnerships for collaborative problem solving A comprehensive strategy to inform and educateA comprehensive strategy to inform and educate Smarter regional planningSmarter regional planning Advocacy for critical national water needsAdvocacy for critical national water needs Joint efforts/resources to achieve common goalsJoint efforts/resources to achieve common goals Life-cycle approach from holistic assessment through O&MLife-cycle approach from holistic assessment through O&M Risk-based managementRisk-based management Resilient water infrastructureResilient water infrastructure A Picture of the Future …. 14

BUILDING STRONG ® 15 US Army Corps of Engineers BUILDING STRONG ®