AGC Letter to WRDA Conferees on Legislative Priorities

June 26, 2007

Dear Conferee:

On behalf of the Associated General Contractors of America (AGC), I am writing to commend the hard work of the House and Senate in passing your respective Water Resources Development Acts (WRDA).  Both the House- and Senate- passed bills contain provisions that will have a major impact on the long-term planning, construction, and maintenance of our waterways system for many years.  As you develop a final Conference Report, AGC urges you to consider the following priorities of the construction industry.

Fiscal Transparency:

Section 2004 of the Senate-passed bill authorizes the Chief of Engineers, beginning in 2008, to submit to Congress a comprehensive report on previous, current, and anticipated expenditures of the U.S. Army Corps of Engineers.  The report will serve as an important tool to better inform the Corps, Congress, and the public in making water resources investment decisions.

• AGC supports the fiscal transparency provisions included in Section 2004 of the Senate-passed bill.

Principles and Guidelines:

Both the House- and Senate- passed bills include provisions to address whether the Corps should update the Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies. AGC believes that the “Principles and Guidelines” implemented by the Corps has served the nation well for over 20 years. In addition, the Corps has implemented significant changes to their own policies and processes over the past few years. AGC recognizes the need for the Congress to call on the Corps to formally revise its current Principles and Guidelines to reflect changing national priorities. However, AGC sees serious adverse implications for our nation’s water resources policy with the approaches taken in the House- and Senate-passed bills.

• AGC respectfully submits for your consideration the attached substitute language.

Planning:

Section 2005 of the Senate-passed bill requires the Corps to complete a Chief’s Report within two years of executing a feasibility study cost-sharing agreement for a project. This section also requires “complex or controversial projects” to be reviewed for up to four years. This provision will help expedite the development of water resources projects in a timely manner and also affords proper review and consideration of projects that may raise additional concerns or questions.

• AGC supports Section 2005 of the Senate-passed bill.

Independent Peer Review:

Both bills address the issue of peer review in a substantial manner. Careful analysis of Section 2007 of the Senate-passed bill has brought to light numerous concerns for construction contractors, including mandated federally-funded reviews of all projects with flood control elements throughout the entire construction process. It is clear that projects would be subject to multiple and duplicative reviews, even after project authorization occurs. Finally, this provision promotes a policy of deferring to the judicial branch for water resources solutions.  AGC believes the Section 2037 of the House-passed bill more readily reflects the type of compromise needed on Corps reform issues as it fully addresses long-standing concerns, including those raised in the aftermath of Hurricane Katrina, while ensuring projects are not unreasonably delayed or made prohibitively expensive with multiple and duplicative reviews.

• AGC urges conferees to reject Section 2007 of the Senate-passed bill and recommends the independent peer review provisions included in Section 2037 of the House-passed bill.

Use of Firms Employing Local Residents:

Section 2040 of the House-passed bill requires that at least 50 percent of workers on all Corps projects are hired locally. AGC strongly believes this language does not take into consideration the real-world aspects of how construction contracts for water resources projects are awarded. It does not consider how a contracting firm hires and manages their employees or how subcontractors are hired and managed. In addition, it does it acknowledge any comprehension of the seasonal aspects of the construction season.

• AGC strongly urges the Conferees to reject Section 2040 of the House-passed bill.

Federal Hopper Dredge Fleet:

Another matter that needs to be addressed by the conferees is the continued use of the Federal Hopper Dredge McFarland. The McFarland, a medium class hopper dredge, is currently operating at a cost of $79,500 per day while a comparable industry dredge operates at an average daily rate of $34,000 per day. Continuing to schedule work for the McFarland is a waste of precious Operation and Maintenance funds and results in reduced utilization of industry hopper dredges. This reduction in market share is seriously impacting the viability of the industry and is increasing the likelihood that industry hopper dredge assets may have to seek markets outside the U.S. to sustain investments. This may translate to permanent loss of private hopper dredge capability and put at risk the ability of industry to respond to unforeseen or emergency needs of our nation's ports and channels. 

• AGC recommends the Conference Report include a requirement to decommission the McFarland one year after enactment of this legislation.

Expedited Actions for Emergency Flood Damage Reduction:

In response to national emergencies, Section 2021 of the House-passed bill authorizes the Secretary to expedite any authorized planning, design and construction of any project for flood damage reduction for any area that, within the preceding 5 years, has been subject to flooding that resulted in the loss of life and caused damage of sufficient severity and magnitude to warrant a declaration of a major disaster by the President under the Robert T. Stafford Disaster and Emergency Relief Act.

• Given the size and scope of the disaster that has plagued the Gulf Coast, AGC strongly urges the Conferees to include Section 2021 of the House-passed bill in the final Conference Report.

Technical Assistance:

Section 2025 of the House-passed bill authorizes up to $5 million in technical assistance for the management of water resources projects and allows the Corps to participate with state and local governments in watershed planning.

• AGC recommends adoption of this language in Section 2025 of the House-passed bill. 

Coordination and Scheduling of Federal, State, and Local Actions:

Section 2027 of the House-passed bill calls for procedures to establish a schedule for consolidating environmental assessments, project reviews, and permit issuance at all levels of government for the construction or modification of non-federal water supply, wastewater infrastructure, flood or storm damage reduction, ecosystem restoration, or navigation projects.

• AGC recommends adoption of the language contained in Section 2027 of the House-passed bill.

Project Streamlining:

Section 2028 of the House-passed bill directs the Secretary to develop and implement a coordinated review process for water resources projects. The benefits of water resources projects are important to the nation’s economy and environment, and AGC agrees that recommendations to Congress regarding such projects should not be delayed due to uncoordinated and sequential environmental reviews or the failure to timely resolve disputes during the development of water resources projects.  AGC has strongly supported similar project streamlining provisions in the aviation and surface transportation reauthorization bills enacted by Congress in recent years.

• AGC strongly concurs with the stated policy intent of the House-passed bill and supports inclusion of Section 2028 of the House-passed bill in the Conference Report.

Mitigation for Fish and Wildlife Losses:

The fish and wildlife mitigation provision of both bills are similar. However, the Senate’s use of mitigation banks if other mitigation is not practicable can serve to be a useful tool in difficult circumstances.

• AGC recommends that Section 2008 of the Senate-passed bill be adopted.

Projects to Enhance Estuaries and Coastal Habitats:

Section 2035 of the Senate-passed bill creates a new continuing authority program for improving environmental quality through estuary habitat restoration, with an annual program limit of $10 million and a per project limit of $5 million.

• AGC supports creation of this environmental program and recommends inclusion of Section 2035 of the Senate-passed bill in the final legislation.

Continuing Authorities Programs:

Both the House- and Senate- passed bills recommend increased authorization levels for several Continuing Authority Programs. These programs have been highly successful and allow the Corps to address a variety of water resources challenges in a more expedited manner.

• AGC supports the increased authorization levels for all Continuing Authority Programs included in both the House and Senate bills and urges the Conferees to adopt the higher authorization level where similar provisions exist in either bill.

National Levee Safety Program:

Subtitle C of the Senate-passed bill authorizes a National Level Safety Committee and Program to ensure the safety of new and existing levees at the federal and state levels. Under the program, the Secretary would be required to develop, maintain, and update every 5 years an inventory and prioritized assessment of all levees in the United States.

• AGC urges the Conferees to adopt Subtitle C of the Senate-passed bill in the Conference Report.

Remediation of Abandoned Mine Sites:

Section 2036 of the Senate-passed bill expands the existing Remediation of Abandoned Mine Sites (RAMS) program into a Continuing Authorities Program, with an annual program limit of $20 million, and authorizes the Secretary to perform construction activities associated with remediation of abandoned mines.

• AGC supports expansion of this program and recommends inclusion of Section 2036 of the Senate-passed bill in the final legislation.

Small Projects for the Rehabilitation and Removal of Dams:

Section 2037 of the Senate-passed bill creates a new Continuing Authorities Program, which authorizes the Secretary to carry out a small dam removal or rehabilitation project if the Secretary determines that the project will improve the quality of the environment or is in the public interest.

• AGC supports creation of this program and recommends inclusion of Section 2037 of the Senate-passed bill in the final Conference Report.

AGC thanks the conferees for the opportunity to present our suggestions to improve this critical legislation. WRDA reaffirms the government’s pledge to authorize, modify and improve projects, programs and policies protecting the nation from floods and keeping our waterways open to navigation. It is our strong belief that passage of this important measure will help foster economic development, facilitate trade and commerce, aid international competitiveness, stimulate employment, provide water recreation opportunities, enhance agricultural and industrial productivity and augment our national defense.

AGC urges conferees to complete action on this legislation as quickly as possible.

Sincerely,

Stephen E. Sandherr
Chief Executive Officer