1. USACE Northwestern Division Leadership
COL William J. Leady
Deputy Commander, Northwestern Division
October 16, 2014

2. PNWA Conference October 16, 2014
Panel Agenda
Management Update
Regional Topics
Budget Climate
Long term outage
WRRDA
Fish returns and BiOp goals
Columbia River Treaty Update
Division Headquarters Move
District Topics

3. Northwestern Division Leadership Team
BG John S. Kem
Deputy
Commander
Programs Director
Reg. Business Director
Omaha
PHOTO
Dave Ponganis
Jim Hearn
COL Joel
Cross
Portland
COL Jose
Aguilar
Kansas City
Seattle
Walla Walla
LTC Timothy Vail
COL John
Buck
COL Andrew
Sexton
COL William Leady
Recent Changes in leadership during 2014
4 of 5 Northwestern Division District Commanders have changed in the past year
Division Navigation Program Manager has changed : Eric Braun retired in December. Sheryl Carrubba (who many know from her Portland District Career) has replaced him

4. Corps Funding FY 14-15 FY 14 Appropriation - Favorable for NWD
FY 14 Funding pots in NWD O&M + $38.6M
FY 14 NWD Navigation funding + $31.5M
Great Overall Execution
FY 15 Pbud – Overall NWD decrease from FY 14 Pbud
O&M increased share of the funds
Low Commercial Use Navigation continues
to be funded at low levels compared to FY 12
BUDGET CLIMATE – CLOUDY WITH A FEW SUN BREAKS
After a very rocky beginning of Fiscal Year 2014 – recall this time last year, because Congress could not to come to an agreement on spending levels – and the Corps and many other Federal agencies were furloughing employees. Government work across the board was quite disrupted.
In December, the Congress negotiated a two year deal to set spending levels and a month later passed an Omnibus Bill for Appropriations.
In FY 14, overall the Government spending was cut … but the Corps of Engineers budget saw an increase. Using the “Funding Pots”, Congressional Appropriators increased funding to certain categories of the Corps budget, primarily O&M and in the Northwestern Division, primarily in Navigation Projects.
FY 14 Nationally Funding Pots for Navigation O&M = $236 M
FY 14 NWD showed a region wide increase of $38.6 million, the lions share of that … 31.5 was in Navigation O&M.
We do not know if the spending deal that was negotiated will result in an increase in the FY 15 Appropriations or in the FY 16 Budget PBUD. It’s a midterm election year – more volatile that usual. All of the Federal Government is working on Continuing Resolution Authority at this time.

5. President’s Budgets ($ millions)
Coastal Navigation
Inland Navigation
Navigation Total
Civil Works Total
Navigation %
FY 15
$991
$834
$1,825
$4,561 40
FY 14
$980
$904
$1,884
$4,826 39
FY13
$967
$780
$1,747
$4,731 37
FY12
$832
$744
$1,575
$4,631 34
FY11
$873
$779
$1,652
$4,939 33
FY10
$971
$796
$1,767
$5,125 35
FY09
$969
$931
$1,900
$4,741
FY08
$957
$1,052
$2,009
$4,900 41
Constrained spending is still the byword for most executive agencies of the government, but despite this some areas of the Corps Budget have seen modest increases.
While both the Navigation and Civil works funding is still under the 2008 funding levels, the percentage of the Navigation Funding compared to the total has increased.
Within Navigation, the priority has remained with the high commercial use projects, although the recent Water Resources, Reform and Development Act authorizes change that apportionment for projects funded by the Harbor Maintenance Trust Fund.
* Directs the Sec Army to starting in FY 15, 10% of Baseline year FY 12 distributions to be spent the maintenance needs of emerging harbors
* Additionally, when the distributions from the HMTF reach 80% of the funds collected, 10% will be used for ‘expanded uses’

6. NWD NAV BUDGET ($ millions)
The picture for NWD O&M spending is slightly better than the overall national picture.
TOP ROW: ALL O&M
Looking at the Budget History, you can see the O&M program in NWD has competed well for funding across all business lines, the funding has grown by over $61 million in the PBUD (22.7%) while federal funding over all has been constrained.
We have likewise done well at allocation, meaning our packages that were close to the funding line competed well during the work plan process
Second Row – NAV Specific
The Nav portion of the O&M budget has also increased, which mirrors the national trend
Third and Fourth Rows.
High and Medium Commercial use projects get the Lion’s Share of the Funding, which is consistent with the National Priority of funding Highest Commercial use projects
However, as a percentage of the Nav Funding altogether, the Low Commercial Use Projects do slightly better against our totals than the national average of 6% (The Missouri River received about 6.5M in FY 14 and has 7.7M in the FY 15 Pbud)
All of NWD Navigation benefited by the FY 14 “Funding Pots”, but Low Commercial Use benefited proportionately more with many Washington and Oregon harbors getting needed dredging.
In FY 2012: Funding Pots Increased the NWD O&M budget by $19M … $11.2M was in Navigation and of that, $3.6M going to low commercial use navigation
In FY 13 was a year long CRA, and across the board NWD felt the constraint … especially in small coastal harbors
In FY 14: Funding Pots Increased the NWD O&M budget again. This time by almost $39M, with about $31.5M going to Navigation and of that, $13.2 million going to low commercial use harbors
FY 15, Right now the House and Senate Budget Bills include Funding Pots in Navigation totaling between $232M and $303M nationally, across all the entire Navigation Program. Whether they survive the budget process during the coming months is likely dependent on the winners of the next elections.

7. WRRDA (P.L.113-121) Very Broad Impacts to Corps programs and processes
Authorizations and Deauthorizations
Project Planning and Development
Alternative Financing and Partnerships
Levee and Dam Safety
Regulatory Processes
Water Supply
Navigation
Listening Session during August & September
Implementation Guidance forthcoming
Slide 7:
Water Resources Reform and Development Act:
Many of you know the highlights of this already … there aren’t many areas of the Corps Civil Works mission that aren’t affected.
Important for PNWA membership:
Authorizes 23 water resources projects and requires an Annual List from ASA to congress on status of Authorized Projects and projects proposed for Authorization
Streamlines Deauthorization of projects, too. Those that havent gone to constructions and those that are no longer maintained for lack of a federal interest
Codification of the 3x3 Planning Process (3 year, 3 million dollars); directs early coordination with other Federal resource agencies,
Water Infrastructure Public Private Partnership Pilot Partnership Program (at least 15 authorized projects)
Amends the Planning Assistance to States program to include State levee safety program, Corps can provide technical assistance for levee safety
Regulatory provisions relating to the streamlining for permits by allowing the Corps to accept funds from public interests to expedite permit processing and allows public utility companies to participate.
Navigation:
Inland Waterways Trust Fund
Increases the threshold for Major Rehab to $20M,
Requires Corps to study alternate revenue collection, including tax free bonds
Decrease in IWTF proportion for Olmstead L&D)
Directions to Increase the utilization of the Harbor Maintenance Trust Fund
Goal is 80% of collected revenues by 2020.
If goal is met, up to 5% can be used on dredging berths and contaminated sediments adjacent to the Federal Project
Direction to use 10% of HMTF on EMERGING Commercial Use Harbors (emerging harbors is a new term)
NOTE: AUTHORIZATION IS NOT APPROPRIATION !!
While we have started on those tasks and reports that have deadlines attached to them (for example a review and updating of the Capital Investments Business Practice for Inland Navigation Locks), the implementing guidance for the bill has not yet been delivered to the field.
At present, there are over 200 pieces of guidance being developed. And very few are complete for the field.

8. Long Term Lock Outage Regional Topics
Long Term Lock Outage was briefed at the PNWA Mid Year Meeting in Coeurs d’Alene
This is a high priority for the Northwestern Division. We continue to work with the Corps Headquarters on the needed funding for the outage –.
The coordination of the effort to reduce impacts to the users and
the NWP and NWW reputation for being able to deliver major repair projects on schedule is
widely regarded as a good model for project delivery for the rest of the Inland Waterways system

9. Record breaking counts
Regional Topics
Fish Returns and
BiOp Requirements
Fish Returns and BiOp Requirements
Fish Returns are Front Page News here in the Northwest.
The KEY element in this success has been an unprecedented level of regional collaboration to make this progress (Federal Agencies, Utilities, States and Tribes)
As of the 14 OCTOBER the counts were 844,070 FALL Chinook; 96, 261 WILD Steelhead and 221,671 Coho FYI, these are the significant species of concern, totals of all fish, including all chinook runs, jack, shad, lamprey, etc, are close to two million)
Performance testing shows that the Federal Agencies are on track to meet BiOp performance targets for in-river survival, juvenile survival and adult survival.
With our partners, we regularly review salmon and steelhead survival at the dams based on scientifically designed tests, and take new information into account
When new information indicates modified protocols are warranted, then other measures can be considered and implemented.
Record breaking counts

10. Columbia River Treaty Regional Topics
Columbia River Treaty – We appreciate the interest of PNWA members and their input during the development of the recommendations to State Department on the Columbia River Treaty
Official Talking Points:
The U.S. Government has already begun to engage internally on the Columbia River Treaty and is deliberating the issues surrounding the Treaty.
The U.S. Government has begun the Administration’s consultation process on the issue and are gathering input from various Federal government agencies. (SC: We continue to develop information for State Department)
The U.S. Government has received the recommendation from the U.S. Entity which included deliberations with Northwest Tribes and states as well as other regional stakeholders, and it is serving as a starting point for the deliberations.
States, Tribes, and other stakeholders can continue to share their perspectives, through the relevant agencies, on renegotiating the Treaty.
If asked:
There is no deadline for negotiations. September 2014 was the first time either party could notify the other of an intent to terminate
General Kem’s admonition: Don’t mess with success (??) our recommendation is with the US Entity (State Department)

11. Northwestern Division Prepares to Move to New Offices
Regional Topics
February 2015
Northwestern Division Move
Late this winter, the Corps Northwestern Division Offices will move to the other side of the Willamette River.
Our new address will be 1201 NE Lloyd Blvd., located in the Lloyd District. We will be in the newly refurbish office space, which will be ready for us in February.
We are looking forward to the move.
On the down side, … you won’t be able to combine your meetings with our staff and a lunch trip to Powell’s Books any more, but the new space is located right on the Max line and is literally across the street from the Bonneville Power Administration Regional Offices.
Northwestern Division Prepares to Move to New Offices

12. USACE Northwestern Division Leadership
Before Turning the Podium – (mircrophone?) To the district commanders
I’d be happy to take a few questions.
Questions?