1. 1 Coal Handling & Storage Conference 2015 Paul Rohde, Vice President Waterways Council, Inc.

2. 2 The Lumps on Coal 17% decline in export coal Domestic U.S. coal declining in 2015-16 (984MMst to 984- 977MMst) EPA War on Coal Low price of natural gas

3. 3 Good News on Coal Coal = U.S. Jobs Still strong global demand…

4. What’s Moving? Inland Waterways Commodities (2013) 566.7 Million Tons, $216 Billion Value Coal 31.6% Petroleum & Petroleum Products 25.2% Chemicals 9.2% Crude Materials 15.5% Primary Manufactured 4.2% Food & Farm Prod 13.1% Manufactured 1.1% All Others 0.2%

5. 2014: WCI banner year Continuing Appropriations Act, 2014 (“FY14 omnibus”) Water Resources Reform and Development Act of 2014 (“WRRDA”) Consolidated and Further Continuing Appropriations Act, 2015 (“CRomnibus”) ABLE Act of 2014

6. Trends: How We Move Things … 6

7. The Trouble with Aging The 12,000 miles of our navigable inland waterways system touch 38 states and carry approximately 565 million tons of freight annually. The 242 locks and dams are maintained and operated by the U.S. Army Corps of Engineers. The oldest of these, the Elizabeth Lock and Dam (L/D#3) in Pittsburgh, opened to traffic in 1906, but most were built in the 1930s and ‘40s. The aging infrastructure as a whole is in critical need of modernization, without which the inland waterways system will cease to provide reliable freight transportation capacity.

9. Waterways Benefit the Entire Nation

10. Waterways’ Beneficiaries Accrued Value

11. Inland Waterways Trust Fund 1992-2014

12. IMTS: Capital Development Plan (CDP) Consistent message since 2010: Prioritize navigation projects across the entire system Improve Corps’ project management and processes to deliver projects on time and on budget Recommend an increased funding mechanism that is affordable to meets the needs of the entire system

13. Public Law 113-121 (June 10, 2014) White House Signing Ceremony Senate Vote: 91-7 (May 22, 2014) House Vote: 412-4 (May 20, 2014)

14. A Savings for the Nation! Project Completion Dates (Pre-WRRDA, New Construction) Olmsted L/D Construction (2020) Lower Mon 2,3 & 4 Replacement, phase 1 (2027) NOW 2023 Kentucky Lock Addition (2041) NOW 2023 Chickamauga Replacement Lock (2051) NOW 2024 L/D 25 Upper MS 1200’ Lock Addition (2064) NOW 2032 High Island to Brazos River, TX (2053) NOW 2016 Lagrange 1200’ Lock Addition (2070) NOW 2028 L/D 22 Upper MS 1200’ Lock Addition (2083) NOW 2035 L/D 24 Upper MS 1200’ Lock Addition (2090) NOW 2036

15. Project Completion Dates (Pre-WRRDA, Major Rehab) L/D 25 Upper MS Dam (2053) NOW 2030 Lagrange (2064) NOW 2018 Lower Monumental (2065) ILL WW Thomas O’Brien L/D (2065) NOW 2023 Greenup Dam Rehab PED & Constr. (2079) NOW 2031 JT Myers Dam (2081) Meldahl Dam (2079) Montgomery (2084) Mel Price Upper MS (2086) No. 2 Lock AR Lock Wall/Bank Slope Rehab (2085) Willow Island Dam Rehab PED & Constr. (2089) Marmet Dam (2090)

16. FY13 Post- Sequestration FY14 Omnibus FY15 Cromnibus Investigations118.5125122 Construction1,586.601,6561,639.49 Operations & Maintenance2,286.102,8612,908.51 Miss. River & Tribs.238.8307302 General Expenses175.3182178 Flood Control/Coastal Emerg.25.628 Regulatory182.9200 Formerly Used Defense Sites99.9103.5101.5 OASA (CW)4.653 Total4,718.305,467.505,482.5 Recission-28 Revised Total4,718.305,467.505,454.5 Corps Civil Works Program Appropriations

17. ( FY ‘16 Funding (House) --$5.637 billion (+$905 million to Administration request and increases the Corps' FY ‘15 appropriated amount by $182 million) --Construction: + 40% to $1.634 billion, with $340 million for IWTF projects (full use) --O&M: $3.094 billion (highest ever appropriated, third consecutive year of record-level O&M funding) --General Investigations: +$13 million above Administration request --HMTF: $1.25 billion, which is $150 million or 14% + last year’s $1.1 billion, and well above the $915 million than the Administration requested from the HMTF.

18. ( FY ‘16 Funding (Senate) --$5.499 billion and + $768 million to Administration request) --Construction: +$469 million to $1.641 million, and six new starts; $340 million for IWTF projects (full use) --O&M: $3.094 billion (highest ever appropriated, third consecutive year of record-level O&M funding) --General Investigations: $2.909 billion, nearly $199 million+ Administration request. Additional O&M money for deep draft harbors and channels ($135 million), inland waterways ($45 million), and small, remote or subsistent harbors and channels ($50 million) --HMTF: $1.254 billion, an 11.96% + above FY 2015 appropriated levels

19. Annual Funding for IWTF Modernization Projects

20. Operation & Maintenance Account Civil Works Program, Corps of Engineers

21. Base Program Annual Funding: Civil Works Program Corps of Engineers

22. www.waterwayscouncil.org