1. US Army Corps of Engineers BUILDING STRONG ® COL Richard P. Pannell District Commander, Galveston District U.S. Army Corps of Engineers United States Army Corps of Engineers Supporting Non-Federal Investment 5 November 2014

2. BUILDING STRONG ® Purpose & Agenda Provide an update to stakeholders on the U.S. Army Corps of Engineers (USACE) efforts to support non- federal investment  USACE Basics  District Strategy  Support to Others

3. US Army Corps of Engineers BUILDING STRONG ® USACE Vision Engineering solutions for the Nation’s toughest challenges. USACE Mission Deliver vital engineering solutions, in collaboration with our partners, to secure our Nation, energize our economy, and reduce risk from disaster.

4. BUILDING STRONG ® USACE Around the World

5. BUILDING STRONG ® $100+ Billion in Infrastructure Investment (Non-Federal) Oil/Gas Shale Boom & Ethane Revolution Increasing Population pressures Limited Water Resources 1,000+ miles of channels (750 miles shallow draft, 270 miles of deep draft) 28 ports (15 deep draft, 13 shallow draft) 9 watersheds 300 full time employees Limited Federal $$$ $100+ Billion in Infrastructure Investment (Non-Federal) Oil/Gas Shale Boom & Ethane Revolution Increasing Population pressures Limited Water Resources 1,000+ miles of channels (750 miles shallow draft, 270 miles of deep draft) 28 ports (15 deep draft, 13 shallow draft) 9 watersheds 300 full time employees Limited Federal $$$ Galveston District

6. BUILDING STRONG ® Future of the Texas Coast Shared Visioning for the Texas coast:  The navigation system (Deep Draft Ports / Shallow Draft Ports / GIWW) is positioned for sustainable economic growth and Texas ports continue to drive the regional and national economic engine.  The Texas Coast environment is protected from coastal erosion & storm surge; ecologic health and community resiliency are improved;  USACE has strong strategic partnerships within the Texas Coastal Stakeholder community that support Federal and non-Federal investment in the system’s infrastructure The Texas Coast is protected & resilient, positioned for sustainable economic growth with strategic partnerships that support non-federal investment. Future

7. BUILDING STRONG ® Improve Navigation (Deepen / Widen / Safety / Capacity) Improve Navigation (Deepen / Widen / Safety / Capacity) Support non-Federal Investment (Regulatory Permits, Real Estate Outgrants, Partnerships) Support non-Federal Investment (Regulatory Permits, Real Estate Outgrants, Partnerships) Protect the Coastal Zone (Storm Damage, Ecosystem Restoration, Regulatory Program) Protect the Coastal Zone (Storm Damage, Ecosystem Restoration, Regulatory Program) Sustain Federal Projects (Dredging / Placement Area Management) Sustain Federal Projects (Dredging / Placement Area Management) Lines of Effort “Ways” – Lines of Effort

8. BUILDING STRONG ® Stakeholder Community Stakeholder Community Communication Transparency Maximizing Capital 8 Collaboration with Partners/Clients/Stakeholders

9. US Army Corps of Engineers BUILDING STRONG ®Navigation 9 Texas ranks #2 for total tonnage and accounts for over 21% of the Nation’s tonnage (2012)

10. BUILDING STRONG ® Support to Others Support to Others Technical Support Support non-Federal Investment Partnering to Maximize Resources Regulatory Permitting Program Flood Plain Management Services Planning Assistance to States eHydro

11. BUILDING STRONG ® Regulatory Permit Program Real Estate Outgrant Program Operations Program Project Management Technical Support Use of Federal Placement Areas Support non-Federal Investment 33USC408 (RHA 1899) 3 rd Party/NFS constructs new/increased capacity + No capacity loss – Limited funding – Approval at HQ-DCW 33 USC 408 ► 408 Report ► 404 Permit ► RE Outgrant  Sec 401(c), CWA ► Stand alone MOA ► Determination Report ► 404 Permit ► RE Consent to Easement  Sec 217b, WRDA 1996 ► Stand alone MOA ► Report of Availability ► 404 permit ► RE Consent to Easement  Sec 217a, WRDA 1996 ► Incorporate into PPA ► 404 permit ► RE Consent to Easement Sec 401(c) CWA 3 rd Party/NFS uses excess capacity + Process validated – Loss of capacity to project – Subject to Determination Report – Approval at HQ-DCW –Separate MOA/ROA for each action Sec 217b WRDA 1996 NFS uses existing capacity + No loss of capacity to project + Ability to collect fees through NFS – Approval at ASA (CW) – Process not validated –Separate MOA/ROA for each action Sec 217a WRDA 1996 USACE/NFS builds capacity in advance for 3 rd Party + Systems approach to managing PAs + No loss of capacity to project + Capacity increased during construction phase – Requires new DMMP or new PPA

12. BUILDING STRONG ® Next Steps Use of Federal Placement Areas Support non-Federal Investment 33USC408 (RHA 1899) Continue to refine process 33 USC 408 ► 408 Report ► 404 Permit ► RE Outgrant  Sec 401(c), CWA ► Stand alone MOA ► Determination Report ► 404 Permit ► RE Consent to Easement  Sec 217b, WRDA 1996 ► Stand alone MOA ► Report of Availability ► 404 permit ► RE Consent to Easement  Sec 217a, WRDA 1996 ► Incorporate into PPA ► 404 permit ► RE Consent to Easement Sec 401(c) CWA Continue to refine process Request delegation approval Sec 217b WRDA 1996 Develop draft MOA Develop process for construction costs Formalize process for funding Request delegation approval Sec 217a WRDA 1996 Investigate stand alone MOA Develop process

13. BUILDING STRONG ®