Title VII — S. 601 (Engrossed in Senate)

Sec. 7001 Purposes

The purposes of this title are—

(1)

to improve program and project management relating to the construction and major rehabilitation of navigation projects on inland waterways;

(2)

to optimize inland waterways navigation system reliability;

(3)

to minimize the size and scope of inland waterways navigation project completion schedules;

(4)

to eliminate preventable delays in inland waterways navigation project completion schedules; and

(5)

to make inland waterways navigation capital investments through the use of prioritization criteria that seek to maximize systemwide benefits and minimize overall system risk.

Sec. 7002 Definitions

In this title:

(1)

Inland Waterways Trust Fund— The term Inland Waterways Trust Fund means the Inland Waterways Trust Fund established by section 9506(a) of the Internal Revenue Code of 1986.

(2)

Qualifying project— The term qualifying project means any construction or major rehabilitation project for navigation infrastructure of the inland and intracoastal waterways that is—

(A)

authorized before, on, or after the date of enactment of this Act;

(B)

not completed on the date of enactment of this Act; and

(C)

funded at least in part from the Inland Waterways Trust Fund.

(3)

Secretary— The term Secretary means the Secretary of the Army, acting through the Chief of Engineers.

Sec. 7003 Project delivery process reforms

(a)

Requirements for qualifying projects— With respect to each qualifying project, the Secretary shall require—

(1)

formal project management training and certification for each project manager;

(2)

assignment as project manager only of personnel fully certified by the Chief of Engineers; and

(3)

for an applicable cost estimation, that—

(A)

the estimation—

(i)

is risk-based; and

(ii)

has a confidence level of at least 80 percent; and

(B)

a risk-based cost estimate shall be implemented—

(i)

for a qualified project that requires an increase in the authorized amount in accordance with section 902 of the Water Resources Development Act of 1986 (Public Law 99–662; 100 Stat. 4183), during the preparation of a post-authorization change report or other similar decision document;

(ii)

for a qualified project for which the first construction contract has not been awarded, prior to the award of the first construction contract;

(iii)

for a qualified project without a completed Chief of Engineers report, prior to the completion of such a report; and

(iv)

for a qualified project with a completed Chief of Engineers report that has not yet been authorized, during design for the qualified project.

(b)

Additional project delivery process reforms— Not later than 18 months after the date of enactment of this Act, the Secretary shall—

(1)

establish a system to identify and apply on a continuing basis lessons learned from prior or ongoing qualifying projects to improve the likelihood of on-time and on-budget completion of qualifying projects;

(2)

evaluate early contractor involvement acquisition procedures to improve on-time and on-budget project delivery performance; and

(3)

implement any additional measures that the Secretary determines will achieve the purposes of this title and the amendments made by this title, including, as the Secretary determines to be appropriate—

(A)

the implementation of applicable practices and procedures developed pursuant to management by the Secretary of an applicable military construction program;

(B)

the establishment of 1 or more centers of expertise for the design and review of qualifying projects;

(C)

the development and use of a portfolio of standard designs for inland navigation locks;

(D)

the use of full-funding contracts or formulation of a revised continuing contracts clause; and

(E)

the establishment of procedures for recommending new project construction starts using a capital projects business model.

(c)

Pilot projects—

(1)

In general— Subject to paragraph (2), the Secretary may carry out 1 or more pilot projects to evaluate processes or procedures for the study, design, or construction of qualifying projects.

(2)

Inclusions— At a minimum, the Secretary shall carry out pilot projects under this subsection to evaluate—

(A)

early contractor involvement in the development of features and components;

(B)

an appropriate use of continuing contracts for the construction of features and components; and

(C)

applicable principles, procedures, and processes used for military construction projects.

(d)

Inland Waterways User Board— Section 302 of the Water Resources Development Act of 1986 (33 U.S.C. 2251) is amended—

(1)

by striking subsection (b) and inserting the following:

“(b) Duties of Users Board

“(1) In general—The Users Board shall meet not less frequently than semiannually to develop and make recommendations to the Secretary and Congress regarding the inland waterways and inland harbors of the United States.

“(2) Advice and recommendations—For commercial navigation features and components of the inland waterways and inland harbors of the United States, the Users Board shall provide—

“(A) prior to the development of the budget proposal of the President for a given fiscal year, advice and recommendations to the Secretary regarding construction and rehabilitation priorities and spending levels;

“(B) advice and recommendations to Congress regarding any report of the Chief of Engineers relating to those features and components;

“(C) advice and recommendations to Congress regarding an increase in the authorized cost of those features and components;

“(D) not later than 60 days after the date of the submission of the budget proposal of the President to Congress, advice and recommendations to Congress regarding construction and rehabilitation priorities and spending levels; and

“(E) a long-term capital investment program in accordance with subsection (d).

“(3) Project development teams—The chairperson of the Users Board shall appoint a representative of the Users Board to serve on the project development team for a qualifying project or the study or design of a commercial navigation feature or component of the inland waterways and inland harbors of the United States.

“(4) Independent judgment—Any advice or recommendation made by the Users Board to the Secretary shall reflect the independent judgment of the Users Board.”

(2)

by redesignating subsection (c) as subsection (f); and

(3)

by inserting after subsection (b) the following:

“(c) Duties of Secretary—The Secretary shall—

“(1) communicate not less than once each quarter to the Users Board the status of the study, design, or construction of all commercial navigation features or components of the inland waterways or inland harbors of the United States; and

“(2) submit to the Users Board a courtesy copy of all reports of the Chief of Engineers relating to a commercial navigation feature or component of the inland waterways or inland harbors of the United States.

“(d) Capital investment program

“(1) In general—Not later than 1 year after the date of enactment of this subsection, the Secretary, in coordination with the Users Board, shall develop, and submit to Congress a report describing, a 20-year program for making capital investments on the inland and intracoastal waterways, based on the application of objective, national project selection prioritization criteria.

“(2) Consideration—In developing the program under paragraph (1), the Secretary shall take into consideration the 20-year capital investment strategy contained in the Inland Marine Transportation System (IMTS) Capital Projects Business Model, Final Report published on April 13, 2010, as approved by the Users Board.

“(3) Criteria—In developing the plan and prioritization criteria under paragraph (1), the Secretary shall ensure, to the maximum extent practicable, that investments made under the 20-year program described in paragraph (1)—

“(A) are made in all geographical areas of the inland waterways system; and

“(B) ensure efficient funding of inland waterways projects.

“(4) Strategic review and update—Not later than 5 years after the date of enactment of this subsection, and not less frequently than once every 5 years thereafter, the Secretary, in conjunction with the Users Board, shall—

“(A) submit to Congress a strategic review of the 20-year program in effect under this subsection, which shall identify and explain any changes to the project-specific recommendations contained in the previous 20-year program (including any changes to the prioritization criteria used to develop the updated recommendations); and

“(B) make such revisions to the program as the Secretary and Users Board jointly consider to be appropriate.

“(e) Project management plans—The chairperson of the Users Board and the project development team member appointed by the chairperson under subsection (b)(3) shall sign the project management plan for the qualifying project or the study or design of a commercial navigation feature or component of the inland waterways and inland harbors of the United States.”

Sec. 7004 Major rehabilitation standards

Section 205(1)(E)(ii) of the Water Resources Development Act of 1992 (33 U.S.C. 2327(1)(E)(ii)) is amended by striking “$8,000,000” and inserting “$20,000,000”.

Sec. 7005 Inland waterways system revenues

(a)

Findings— Congress finds that—

(1)

there are approximately 12,000 miles of Federal waterways, known as the inland waterways system, that are supported by user fees and managed by the Corps of Engineers;

(2)

the inland waterways system spans 38 States and handles approximately one-half of all inland waterway freight;

(3)

according to the final report of the Inland Marine Transportation System Capital Projects Business Model, freight traffic on the Federal fuel-taxed inland waterways system accounts for 546,000,000 tons of freight each year;

(4)

expenditures for construction and major rehabilitation projects on the inland waterways system are equally cost-shared between the Federal Government and the Inland Waterways Trust Fund;

(5)

the Inland Waterways Trust Fund is financed through a fee of $0.20 per gallon on fuel used by commercial barges;

(6)

the balance of the Inland Waterways Trust Fund has declined significantly in recent years;

(7)

according to the final report of the Inland Marine Transportation System Capital Projects Business Model, the estimated financial need for construction and major rehabilitation projects on the inland waterways system for fiscal years 2011 through 2030 is approximately $18,000,000,000; and

(8)

users of the inland waterways system are supportive of an increase in the existing revenue sources for inland waterways system construction and major rehabilitation activities to expedite the most critical of those construction and major rehabilitation projects.

(b)

Sense of Congress— It is the sense of Congress that—

(1)

the existing revenue sources for inland waterways system construction and rehabilitation activities are insufficient to cover the costs of non-Federal interests of construction and major rehabilitation projects on the inland waterways system; and

(2)

the issue described in paragraph (1) should be addressed.

Sec. 7006 Efficiency of revenue collection

Not later than 2 years after the date of enactment of this Act, the Comptroller General shall prepare a report on the efficiency of collecting the fuel tax for the Inland Waterways Trust Fund, which shall include—

(1)

an evaluation of whether current methods of collection of the fuel tax result in full compliance with requirements of the law;

(2)

whether alternative methods of collection would result in increased revenues into the Inland Waterways Trust Fund; and

(3)

an evaluation of alternative collection options.

Sec. 7007 GAO study, Olmsted Locks and Dam, Lower Ohio River, Illinois and Kentucky

As soon as practicable after the date of enactment of this Act, the Comptroller General of the United States shall conduct, and submit to Congress a report describing the results of, a study to determine why, and to what extent, the project for navigation, Lower Ohio River, Locks and Dams 52 and 53, Illinois and Kentucky (commonly known as the “Olmsted Locks and Dam project”), authorized by section 3(a)(6) of the Water Resources Development Act of 1988 (102 Stat. 4013), has exceeded the budget for the project and the reasons why the project failed to be completed as scheduled, including an assessment of—

(1)

engineering methods used for the project;

(2)

the management of the project;

(3)

contracting for the project;

(4)

the cost to the United States of benefits foregone due to project delays; and

(5)

such other contributory factors as the Comptroller General determines to be appropriate.

Sec. 7008 Olmsted Locks and Dam, Lower Ohio River, Illinois and Kentucky

Section 3(a)(6) of the Water Resources Development Act of 1988 (102 Stat. 4013) is amended by striking “and with the costs of construction” and all that follows through the period at the end and inserting “which amounts remaining after the date of enactment of this Act shall be appropriated from the general fund of the Treasury.”.

Title VII — Inland waterways

VII Inland waterways