Nearly $3 Billion in Budget Deal Slated for Olmstead Lock and Dam Project

Who said earmarks are dead? Tucked into yesterday's long-anticipated Congressional deal to raise the debt ceiling and end the government shut-down was this seemingly innocuous paragraph:

"Sec. 123. Section 3(a)(6) of Public Law 100-676 is amended by striking the occurrences of "$775,000,000" and inserting in lieu thereof, "$2,918,000,000."


PL 100-676 is the WRDA bill of 1988, which originally authorized the Olmstead lock and dam project at $775 million. The now-approved budget resolution more than triples the authorized expenditures for the cost overrun plagued project on the Ohio River. As you can see from the text of the joint budget resolution, it was not exactly a "clean" resolution, with various other individual funding provisions (including $186 million for Maritime Security - sec. 152).

With the ink apparently still drying in the budget deal, some have already referred to the Olmstead provision as the "Kentucky Kick-Back."

See also, my earlier post on the draft WRRDA bill which attempted to free the Inland Waterways Trust fund from essentially funding only the Olmstead project given its huge costs. Presumably funding Olmstead via the budget resolution solves the problem of Olmstead monopolizing the Inland Waterway Trust Fund.

Bi-Partisan House WRRDA Bill Rolled Out

The House Transportation and Infrastructure Committee has rolled out the long-awaited Water Resources Reform and Development Act (WRRDA, formerly WRDA - "reform" is new) yesterday. Bill H.R. 3080 is sponsored by Chair Bill Shuster (R-PA), Nick Rahall, Committee Ranking Member (D-WV), and Bob Gibbs (R-OH) and Tim Bishop (D-NY), both members of the Water Resources and Environment Subcommittee.

The public relations blitz surrounding the bill's release is impressive, consisting of a press conference, press release, a colorful summary of the bill's expected accomplishments, as well as a "white-board" video, narrated by Chairman Shuster extoling the benefits of the waterways to the U.S. economy and the virtues of the proposed bill. Finally, a full text of HR 3080 is attached here.

This legislation, if passed, would be the first WRDA bill since 2007. Among the reform provisions are a deadline and monetary cap on U.S. Army Corps of Engineers' studies, a streamlining of environmental reviews, and reform of the Harbor Maintenance Tax Trust Fund and the Inland Waterways Trust Fund. For the HMTF, the bill sets target expenditures of up to 80% of HMT revenue by 2020. For the Inland Waterways Trust Fund (IWTF), the bill caps expenditure for the never-ending money pit Olmstead lock and dam project at 25% annual cost-share, freeing up IWTF funds for other inland projects. The bill also expresses the "sense of congress" that the annual appropriation for the Olmstead project should be no less than $150 million per year until completed (Sec. 213(3)).

Other interesting aspects of the bill include the funding mechanism, potential operation function of corps facilities by private parties (Sec. 225), and a mandate for the corps to inventory its property not essential to its mission which could be sold. The funding mechanism is to use $12 billion for projects funded before the 2007 WRDA bill which have not started, which the bill Summary somewhat euphemistically describes as "fully offsets new authorizations with deauthorizations."

The bill also creates a "Water Infrastructure Public Private Partnership Program" to encourage private participation in USACE projects, as well as creating an "Inland Waterways Stakeholder Roundtable" to address the needs of the Inland Waterways Trust Fund, and support the needs of the Inland Waterways System. (Sec. 215).

Actual action on this an ambitious attempt to fund port and inland waterway structure will of course remain to be seen given the looming fiscal and debt ceiling crises Congress faces.