Winter Leader Conference February 4, 2009 “ Building Strong “1 The FY 2011 CW Program Mr. Pete Luisa 1 March 2010 PNWA

Winter Leader Conference February 4, 2009 “ Building Strong “2 US Ports & Waterways convey > 2B Tons Commerce Foreign Trade alone creates > $160 B Tax Revenues Recreation areas 376 M Visitors/yr Generate $15 B in economic activity, 500,000 jobs 11,000 miles of Commercial Inland Waterways: ½ the cost of rail 1/10 the cost of trucks 400 miles of Shore protection 8500 Miles of Levees 299 Deep Draft Harbors Emergency Operations Stewardship of 11.7 Million Acres Public Lands Environmental Restoration 627 Shallow Draft Harbors Regulatory ¼ of Nation’s Hydropower: $500 M + in power sales Civil Works Value to the Nation

Winter Leader Conference February 4, 2009 “ Building Strong “3 PROGRAM STRUCTURE Business Line Navigation Coastal harbors; Inland Waterways Flood Damage Reduction Riverine Floods; Coastal Storms Environment Aquatic Ecosystem Restoration Stewardship Formerly Utilized Site Remedial Action Hydropower Recreation Water Supply Emergency Regulatory Account Investigations Construction Operations & Maintenance Mississippi River & Tribs Regulatory Program Formerly Utilized Sites Remedial Action Program Expenses Flood Control & Coastal Emerg

Winter Leader Conference February 4, 2009 “ Building Strong “4 Budget Reviewed & Presented to SecArmy (Jun - Aug ) OMB Passback ( Nov ) Budget Submitted to OMB ( Sep ) President’s Budget to Congress ( Feb ) All Offices Develop Program Requirements ( Feb - May ) Appropriations Bills ( Jul - Sep ) Cong. Hearings ( Mar - Apr ) President Signs Approp. Bill ( Sep - Oct ) OMB-ASA GUIDANCE ( FEB-MAR ) Funding Alloc. To Field Offices ( Oct - Dec )

Winter Leader Conference February 4, 2009 “ Building Strong “5 FY 09 PROGRAM PROCESS Use Performance Measures and Policy Direction Guidance memo to: · Rank competing investments in each business program · Demonstrate improved outcomes from added increments Develop amounts based on their own internal performance metrics for: · GE; REG; FCCE; REC; ENV Stewardship; FUSRAP Develop Performance Based program for project competing business lines: · Initial level (No new work, phases or contracts, previously budgeted projects only) · O&M at 75% of last 5 years budget; Investigations same as PY-1. · Categorize and Prioritize CG projects into Priority levels · Add Performance Base High Return items and increments for GI and O&M items Add to the Highest Priority, ongoing projects & contracts to “Final Budget”

Winter Leader Conference February 4, 2009 “ Building Strong “6 Budgeting Measures Construction FRM & NAV & HYDRO - Benefit to Cost Ratio FRM & NAV - Dam Safety & Seepage Stability FRM – Construction Flood “Risk” Index ENR - Loss prevention for significant natural resources O&M NAV – Tonnage movements FRM & NAV & HYDRO – “Risk” Assessments ALL New/Continuing/Completing/Years to Complete Watershed Elements ESA & compliance needs Safety, Caretaker, Compliance, Subsistence

Winter Leader Conference February 4, 2009 “ Building Strong “7 PROGRAM COMPARISON ($ millions) FY08 App FY09 Bud FY09 App FY10 Bud FY10 App FY11 Bud Investigations Operation & Maintenance Construction Miss. River & Tribs Regulatory Program Flood Control & Coastal Em F.U.S.R.A.P Expenses OASA(CW) Total

Winter Leader Conference February 4, 2009 “ Building Strong “8 Budget Arithmetic Civil Works Budget Math$4,800mil Allocate GE, REG, FCCE, REC, FUSRAP…- 900 Allocate Base O&M (~75% of required)- 1,800 Essential Dam Safety- 500 High Performing Construction- 700 Life Projects- 200 Environmental Requirements Planning Studies- 100 Minimum Essential Allocation = - $4,400 Left for all other CW Projects & Programs ~ $ 400 mil* Use the $400 mil to restore project O&M to prior year levels

Winter Leader Conference February 4, 2009 “ Building Strong “9 NEW ACTIVTIES & HIGHLIGHTS Construction – Louisiana Coastal Area, LA., Onion Creek, TX. Investigations – Water Priorities Study Water Resources P&G Support O&M – Coastal Data Information Program Global Change Sustainability Program $82.3 M from the IWWTF $764.4 M from the HMTF $58 M to be cancelled from the MR&T

Winter Leader Conference February 4, 2009 “ Building Strong “10 CW Funding Through FY11 Budget

Winter Leader Conference February 4, 2009 “ Building Strong “11 And for the Out Years … Expect a major debate on Federal funding priorities to commence with the FY 11 budget and continue beyond We will continue to place a high priority on execution of all that is appropriated We will seek to improve our budget ‘defense’ of the value to the nation of the water resources infrastructure for which we are responsible

Winter Leader Conference February 4, 2009 “ Building Strong “12 ARRA Breakdown by Account SUMMARY OF APPROPRIATIONS ($Billions) Investigations$0.025 Construction$2.000 O&M$2.075 MR&T$0.375 Regulatory$0.025 FUSRAP$0.100 TOTAL$4.600

Winter Leader Conference February 4, 2009 “ Building Strong “13 American Recovery and Reinvestment Act Selection Criteria - I Purposes of the Law: To preserve and create jobs and promote recovery To assist those impacted by the recession To provide investment needed to increase economic efficiency by spurring technological advance in science and health To invest in transportation, environmental protection, and other infrastructure that will provide long term economic benefits To stabilize State and local government budgets Criteria in Conference Report refer to project, programs or activities that will: (1) be obligated/executed quickly; (2) result in high, immediate employment; (3) have little schedule risk; (4) be executed by contract or direct hire of temporary labor; and (5) complete either a project phase, a project, or will provide a useful service that does not require additional funding.

Winter Leader Conference February 4, 2009 “ Building Strong “14 Stimulus-Project Selection Criteria * CriteriaImplementation Obligate/execute quickly; High, immediate employment Sort and select by awards and/or completions dates Little schedule riskDistricts filter out all projects with schedule risk Complete phase, project, element, or will provide a useful service with no additional funding Districts prepare work packages accordingly Execute by contract or direct hire of temporary labor No in-house labor except for OH/E&D/S&A No reimbursements No land purchase * No cost sharing with Inland Waterways Trust Fund Significant “transparency” requirements for tracking, monitoring and reporting of specific metrics All unobligated funds (except for E&D, S&A and claims) expire 30 Sep 2010.

Winter Leader Conference February 4, 2009 “ Building Strong “15 Civil Works Recovery Act Status ProgramsPlanned ($M) Obligated ($M) Outlays ($M) Projects Planned/S tarted (#) Operation & Maintenance $2,075 74% $ % $ /521 Construction$2,000 53% $ % $ /147 Mississippi River & Tributaries $375 58% $218 31% $117 45/37 Formerly Utilized Sites Remedial Action Program (FUSRAP) $100 90% $90 13% $13 10/10 Investigations$25 64% $16 24% $6 66/54 Regulatory Program$25 46% $12 33% $8 1/1 Program Status: Congress appropriated and U.S. Army Corps of Engineers (USACE) Civil Works Program planned to spend $4.6 billion in the Recovery Act funds. U.S. Army Corps of Engineers (USACE) obligated $75 million during the week ending, January 29 bringing the cumulative obligation total of Recovery Act funds to $2,917 million, 63% of the appropriation. USACE cumulative total outlays as of January 29 was $851 million, 19% of the appropriation. End of March obligation target = 76% 830/770

Winter Leader Conference February 4, 2009 “ Building Strong “16 # of Contracts FY10 Civil Works ARRA Execution All Programs Data a/o 29 January 2010

Winter Leader Conference February 4, 2009 “ Building Strong “17 ARRA PLANNED ACCOMPLISHMENTS Hydropower 35 projects repaired or improved Environmental Infrastructure 148 Local water supply & wastewater project constructed Recreation 460 recreation areas maintained or upgraded Navigation 48 Locks repaired or improved Flood Risk Management 122 Dam safety 76 Local Protection 96 Dams repaired or improved 10 Emergency bank protection 820 Levee inspections

Winter Leader Conference February 4, 2009 “ Building Strong “18 How We All Contribute USACE: –Develop the vision, goals, objectives in an open, collaborative way –Implement the Strategic Plan Administration: –“Walk the performance-based budget talk.” Stakeholders: –Contribute to vision, Goals, Objectives, Metrics ALL: Keep Communicating! - A Vision to be the desired future state of water resources and the desire to have a water resources infrastructure that will serve this Nation’s economic, quality of life needs, today and into the future.