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

2. FCRPS BiOp

3. 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

4. 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

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

6. 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

7. 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

8. 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.

9. 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

10. 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

11. 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

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

13. 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

14. Review of our navigation efforts

15. 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

16. Navigation Funding Review

17. 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

18. 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.

19. 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

20. 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

21. 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

22. WRDA Outlook

23. 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

24. Harbor Maintenance Trust Fund

25. 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

26. 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.

27. Inland Waterways Trust Fund

28. 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

29. 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.

30. What next?

31. 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

32. Questions?