General Fund News

The United States’ vast network of navigable inland rivers is vital to the nation’s economy, serving as an aquatic superhighway for the efficient shipment of critical commodities like agricultural goods, energy products, building materials and industrial chemicals to destinations within the U.S. and to deepwater ports for export. The Waterways Council, Inc. (WCI), which advocates for a modern, efficient and well-maintained inland waterways, often describes the network as “the…

I. MoneyNo one ever said it’s easy to understand federal budgets and spending plans. Nevertheless, a general sense of clarity and straightforwardness is critical for any review of public expenditures. This becomes more pressing when tracking revenue and expenditures linked to specific users’ fees, such as the $0.29/gallon fuel tax, paid by inland waterways operators. In 2021, the Inland Waterways Trust Fund (IWTF) held $221.5 million, money earmarked to build, maintain and operate…

The Water Resources Development Act (WRDA) of 2022 on Thursday passed in the Senate by a vote of 83-11. It was included as part of the FY23 National Defense Authorization Act (NDAA). The bill, which passed in the House of Representatives on December 8, now heads to the President for his signature into law.WRDA 2022, which remains on a biennial schedule in Congress, authorizes 33 Chief’s Reports and includes a policy provision that makes permanent the 65% general revenues/35% Inland…

The Federal Maritime Commission approved a settlement agreement reached between its Bureau of Enforcement (BoE) and Hapag-Lloyd AG (Hapag-Lloyd) where the ocean carrier will pay a $2 million civil penalty to address alleged violations related to their detention and demurrage practices.“To restore full confidence in our ocean freight system, vigorous enforcement of FMC rules is necessary. Specifically, we must ensure powerful ocean carriers obey the Shipping Act when dealing with American importers and exporters.

All signals from Washington, D.C., indicate that Fiscal Year (FY) 2022 could be a record-breaking year for inland port and waterway investment. The successful opening of the Harbor Maintenance Trust Fund, a recording-breaking United States Army Corps of Engineers (USACE) budget request, positive improvements to the Port Infrastructure Development Program, and a possible bipartisan infrastructure deal, could result in billions of dollars in additional federal investment in inland ports and waterways.Opening the Harbor Maintenance Trust FundOn May 28…

In early October, Waterways Council, Inc. (WCI) reported in its newsletter Capitol Currents that the future of the Water Resources Development Act (WRDA) of 2020 hung in the balance, with many unknowns for its chances of being signed into law during the Lame Duck session of Congress that just concluded in late December.But despite twists and turns and a roller coaster ride, WRDA was, indeed, passed by Congress on December 21 as part of the FY21 Omnibus Appropriations that included a $900 billion COVID Relief package.

As we head toward the end of a very chaotic and COVID-filled 2020 and try to reflect on the positives, the inland waterways had a pretty good year overall. Waterways Council, Inc. (WCI), whose members depend on a modern, efficient inland waterways system, offers this look back, with hopes ahead for the passage of a Water Resources Development Act (WRDA) 2020 with our construction cost-share adjustment priority in the lame duck session of Congress.A disappointing FY21 budget requestIn February…

We recently checked in with Tracy Zea, Waterways Council Inc.’s new President & CEO, on what’s in store for the U.S. inland waterways for the remainder of 2020.To start, give us some insight on your background and how you came to lead WCI.I was born and raised in Chandler, Ariz., and attended South Dakota State University, receiving a degree in Political Science. After college, I found my way to Washington, D.C. via an internship with Senator Thune (R-S.D.). After the internship, I was hired by the House of Representatives, Transportation and Infrastructure Committee.

Governor Robert Bentley on Thursday announced that Alabama has agreed to a settlement with Transocean Offshore Deepwater Drilling, Inc., which owned the Deepwater Horizon. Alabama will receive $20 million. “The State of Alabama suffered tremendous environmental and economic losses because of the BP/Deepwater Horizon oil spill in April 2010,” Governor Robert Bentley said. “I appreciate the entire Alabama team for working to ensure Alabama is fairly compensated. On April 20, 2010, the Deepwater Horizon floating drilling rig owned by Transocean and used by BP, experienced a well destabilization that ultimately led to an explosion causing catastrophic fires, a leak of over 3 million barrels of oil into the Gulf of Mexico, and the death of 11 people.

Washington-based Tracy R. Zea advocates for Waterways Council, Inc. (WCI) goals for authorizations and appropriations which support a modern, efficient, and reliable inland waterways transportation system. Zea also works to enhance WCI’s stakeholder relationship with the U.S. Army Corps of Engineers while additionally tracking implementation of WRRDA legislation and ensuring that WCI’s views are reflected in the outcomes. Before joining WCI, Zea served on the House Committee on Transportation and Infrastructure (T&I) for five years.

Ecology issues $112,500 penalty for sunken vessel. American Gold Seafoods faces a $112,500 penalty for an oil spill caused by the accidental sinking of its vessel, the Clam Digger, in July 2013 near Anacortes. The Washington Department of Ecology investigated the cause of the sinking and spill and determined that negligence was a key factor. When the Clam Digger left Anacortes on July 10, the boat encountered high waves, began taking on water, and eventually sank. AGS immediately initiated appropriate response protocols. Divers recovered the boat six days later, but during the recovery efforts 315 gallons of oil spilled. "This spill was preventable," said Dale Jensen, who manages Ecology’s Spill Prevention, Preparedness and Response Program.

On May 22, the Water Resources Reform Development Act (WRRDA) of 2014, containing major recommendations of the Capital Development Plan (CDP), was passed by a vote 91-7 in the Senate. As MarineNews was going to press, President Obama finally signed the bill into law. The conference agreement had passed the House on May 20 by an overwhelming 412-4 vote. The bill contains four key elements of the Capital Development Plan that were included in the House WAVE 4 (H.R. 1149) and Senate RIVER Act (S.

Spend dollars up on dredging, cubic yards moved down. Combined with a reduction in the USACE federal budget, the situation threatens a perfect storm for domestic requirements. U.S. dredging this decade, measured in cubic yards, is only half as active as it was in the early 1960s, with maintenance down slightly since then and new work off considerably, according to the U.S. Army Corps of Engineers or USACE. The nation’s spending on dredging in unadjusted dollars has swelled tenfold since the 1960’s, however.

Urges President’s Signature into Law. Waterways Council, Inc. (WCI) today celebrated the passage of the Water Resources Reform Development Act (WRRDA) of 2014, containing major recommendations of the Capital Development Plan (CDP*). WCI urges the President to sign the bill into law. The conference agreement passed the House on Tuesday by an overwhelming 412-4 vote. Today’s Senate passage by a strong vote of 91-7 underscores the strong bi-partisan effort to enact the critical water resources bill.

The Minerals Management Service (MMS) has accepted high bids valued at $111,385,124 and awarded 155 leases to the successful high bidders who participated in Western Gulf of Mexico Oil and Gas Lease Sale 210 held August 19, 2009. Funds from the total high bids will be distributed to the general fund of the U.S. Treasury, shared with the affected States, and set aside for land and water conservation efforts that benefit all fifty states. The leases were awarded following the completion of an extensive, two-phase bid evaluation process to ensure that the Federal government receives a fair monetary return for the public mineral resources it makes available. During Lease Sale 210, twenty-seven companies submitted 189 bids on 162 tracts in the Western Gulf of Mexico.

The Minerals Management Service (MMS) has accepted high bids valued at $690,163,194 and awarded 328 leases to the successful high bidders who participated in Central Gulf of Mexico Oil and Gas Lease Sale 208. Funds from the total high bids will be distributed to the general fund of the U. S. Treasury, shared with the affected States, and set aside for special uses that benefit all fifty states. The leases were awarded following the completion of an extensive, two-phase bid evaluation process to ensure that the Federal government receives a fair monetary return for the public mineral resources it makes available. Seventy companies submitted 476 bids on 348 tracts in the sale, held March 18, 2009. The total for high bids submitted on all tracts was $703,048,523.

The Department of the Interior's Minerals Management Service (MMS) has disbursed $65 million to six coastal states: Alabama, Alaska, California, Louisiana, Mississippi and Texas. This is the fourteenth installment in a series of annual payments based on 1985 settlement legislation regarding the allocation of royalties, rents and bonuses from certain federal offshore oil and gas leases. The 1978 Outer Continental Shelf (OCS) Lands Act Amendments provided for certain coastal states and the federal government to share revenues earned from OCS leases, generally, three to six miles beyond a state's coastal boundary. This area, known as the 8(g) zone, is named after the enabling paragraph of that legislation.

In September 1993, as the Secretaries of Defense and Transportation announced a new commercial shipbuilding initiative, the President declared that "[s]hipbuilding is one of the keys to America's national defense, and helping our shipbuilders succeed commercially is an important goal of defense conversion." A cornerstone of the 1993 Shipbuilding Initiative was the revival of the Federal Ship Financing Program (commonly known as the "Title XI Program" because its statutory authority is spelled out under Title XI of the Merchant Marine Act, 1936). Administered by the Maritime Administration ("MarAd") of the U.S. Department of Transportation, the program has prospered since 1993 under a rigorous review process mandated by the Federal Credit Reform Act of 1990 ("FCRA").

U.S. ports got confirmation at its Annual Convention meeting from a just-released General Accounting Office (GAO) Report that both the number and the dollar amount of fees assessed on the maritime industry have increased since the last study was released in 1993. The GAO Report, Federal Assessments on the Maritime Industry, states 11 federal agencies collect 124 different fees and assessments on maritime commerce, for a total of almost $22 billion ($21 billion of which is collected by U.S. Customs alone). Total collections have increased from $18.2 billion in fiscal 1991 to $21.9 billion in fiscal 1998. "This confirms what we've been saying for years: Shippers, vessel owners, operators, importers and exporters are already heavily taxed," said Kurt J. Nagle, AAPA president.

U.S. ports got confirmation at its Annual Convention meeting from a just-released General Accounting Office (GAO) Report that both the number and the dollar amount of fees assessed on the maritime industry have increased since the last study was released in 1993. The GAO Report, Federal Assessments on the Maritime Industry, states 11 federal agencies collect 124 different fees and assessments on maritime commerce, for a total of almost $22 billion ($21 billion of which is collected by U.S. Customs alone). Total collections have increased from $18.2 billion in fiscal 1991 to $21.9 billion in fiscal 1998. "This confirms what we've been saying for years: Shippers, vessel owners, operators, importers and exporters are already heavily taxed," said Kurt J. Nagle, AAPA president.