The FY 2011 CW Program

1. Mr. Pete Luisa 1 March 2010 PNWA The FY 2011 CW Program

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

3. PROGRAM STRUCTURE Account Investigations Construction Operations & Maintenance Mississippi River & Tribs Regulatory Program Formerly Utilized Sites Remedial Action Program Expenses Flood Control & Coastal Emerg 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

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

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”

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

7. PROGRAM COMPARISON($ millions) FY08 AppFY09 Bud FY09 AppFY10 BudFY10 AppFY11 Bud Investigations 167 91 168 100 160 104 Operation & Maintenance 2244 2475 2202 2504 2400 2361 Construction 2294 1402 2142 1718 2031 1690 Miss. River & Tribs. 387 240 384 248 340 240 Regulatory Program 180 180 183 190 190 193 Flood Control & Coastal Em. 0 40 0 41 0 30 F.U.S.R.A.P. 140 130 140 134 134 130 Expenses 175 177 179 184 185 185 OASA(CW) 5 6 4.5 6 5 6 Total 5592 4741 5403 5125 5445 4939

8. Civil Works Budget Math$4,800 mil 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 - 200 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 Budget Arithmetic

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

10. CW Funding Through FY11 Budget

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

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

13. American Recovery and Reinvestment ActSelection 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.

14. Stimulus-Project Selection Criteria * * 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.

15. Civil Works Recovery Act Status 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

16. FY10 Civil Works ARRA Execution All Programs # of Contracts Data a/o 29 January 2010

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

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.