Glenn VanselowExecutive Director

Kristin MeiraGovernment Relations Director

PNWA Staff Update

FCRPSBiOp

Biological Opinion LawsuitFinal 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

Biological Opinion LawsuitUnprecedented 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

BiOp-Related ActivitiesDam breach advocates aggressive campaign

Administration

Congress

Media

Outdoor businesses

Calls for new, “inclusive” collaboration

Plaintiffs

A few Members of Congress

PNWA Supports/Defends NavigationKey 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

Barging is the lowest cost, most fuel efficient & least polluting mode of transportation.

Fuel Efficiency (ton-miles per gallon)

0

0.5

1

1.5

2

2.5

3

HC CO NOx PM

Truck

Western Railroad

Eastern Railroad

Inland Towing

Emissions (grams per ton mile)

Each year, barging keeps 700,000 trucks off the highways through the sensitive airshed of the

Columbia River Gorge

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.

Dam Breaching is not the answer1992 Snake River drawdown test

Lower Granite Reservoir, Clarkston, WA. March 17, 1992

The Red Wolf Marina was destroyed and went bankrupt

Tributaries were cut off from the mainstem of the Snake River

Thousands of smolts and adult fish were stranded and killed

1992 Snake River drawdown testLower Granite Reservoir, Clarkston, WA. March 17, 1992

Recent PNWA ActionsFederal 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

BiOp OverviewPNWA supports this collaboration

PNWA supports the Biop

The dams provide environmental benefits

Dam breaching is not the answer

BiOp’s FutureAdministration 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

Review ofour

navigationefforts

PNWA is delivering on policyWorking 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

NavigationFundingReview

PNWA is delivering on appropriationsTotal 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 deliverssignificant funding increases for Northwest navigation

projects – even when national Corps budgets are constrained

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

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

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

Despite challenges, PNWA is making progress on …Channel deepening

MCR jetties

Coastal projects

Inland projects

Puget Sound projects

WRDAOutlook

New WRDA unlikely until 2010 at the earliestHouse 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

HarborMaintenan

ceTrustFund

Harbor Maintenance Tax revenue is not fully spentHarbor 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

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.

InlandWaterway

sTrustFund

Proposed lockage fee for bargesBush, 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

Proposed lockage fee for bargesPNWA 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

Whatnext?

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

Questions?