PNWA Staff Update

1. PNWA Staff Update Glenn Vanselow Executive Director Kristin MeiraGovernment Relations Director Heather Kenneson Communications Manager

2. PNWAinReview

3. PNWA is delivering on policy • WRDA success in 2007: dredge fleet and Section 214 • Navigation protected in the FCRPS BiOp • Channel deepening, jetty repairs, and inland project priorities advanced • Snake River dredging lawsuit settled, channel maintenance performed • Making progress on regulatory challenges in our region • Performed studies on the dredge fleet, regional transportation projects • Working to resolve deep draft and inland navigation trust fund issues • PNWA: Successfully advocating for transportation,trade, energy, tourism and the environment

4. PNWA is delivering on appropriations • Total funding secured: over $645 million in last six years • Total funding increase: over $92 million in last six years • Annual funding increase: average $15.3 million per year • Number of projects increased: average 13 projects per year • Number of projects increased from zero: average 7 projects per year • PNWA is the only regional group that consistently deliverssignificant funding increases for Northwest navigationprojects – even when national Corps budgets are constrained

5. FY2009AppropriationsReview

6. President’s FY2009 budget had some bright spots • Columbia River channel deepening • Project received $36M in the budget • More than double the highest amount ever included in previous budgets • Will be a challenge to preserve this funding in the appropriations process, especially in the House bill

7. President’s FY2009 budget had some bright spots • Columbia River jetty rehab project • $675K included in the “Columbia River at the Mouth” O&M account • Funding is designated for plans and specs for the eventual rehab • Major rehab report due out this fall • Three-year interim repairs completed last fall

8. President’s FY2009 budget had some bright spots • Lower Monumental lock rehab project • Budget has $1.56M for plans and specs for an eventual downstream lock gate replacement • If the project continues moving forward, replacement of the lock gate could take place in 2011 • Project will be coordinated with other major work on the inland system • Project will be scheduled for a time of year when impacts to the system can be minimized

9. President’s FY2009 budget had some bright spots • Critical inland infrastructure needs addressed • $1M for pintle bearings and $3M for tainter valves at The Dalles lock • $2.5M for tainter valves at John Day lock • $6.7M for the Programmatic Sediment Management Plan for the Lower Snake River

10. Additional funding needs on the PNWA agenda • PNWA has made these appropriations requests to our Northwest delegation, and House & Senate appropriations committee staff • Friction drum crack repair at John Day navlock • Shallow draft coastal port channels and jetties • Cargo ports of Coos Bay and Newport • All PNWA requests can be found in our FY2009 document at www.pnwa.net

11. Completion of FY2009 approps bills will be delayed • Highly unlikely bills will be completed when 2009 fiscal year begins October 1st • Federal gov’t will begin operating under a continuing resolution (CR) • Presidential election in November adds another wrinkle • Many are already whispering of a year-long CR, similar to how the government operated in FY2007 • This could have detrimental funding impact on the Corps of Engineers and PNWA projects

12. WRDAOutlook

13. Another WRDA so soon? • PNWA was very successful in WRDA 2007 • Operating restrictions were lifted from the Essayons and Yaquina • Section 214 regulatory funding authority was extended to 12/31/09 • Deed and flowage restrictions were lifted from certain port properties Essayons Yaquina

14. Preparations begin for a new WRDA • WRDA 2007 was limited to items in earlier versions • House Transportation & Infrastructure Committee (T&I) has requested submissions for a new WRDA • PNWA staff polled membership for project and policy needs • Section 214 permanence is high priority policy request • PNWA is working with Corps and Congress to address improvements to the authority • Two ports have project submissions • Highly unlikely WRDA will be enacted this year • PNWA is laying foundation for success when a new WRDA is passed • WRDA is one potential vehicle for new user fees, or changes to existing user fees

15. HarborMaintenanceTrustFund

16. Harbor Maintenance Tax revenue is not fully spent • Harbor Maintenance Trust Fund (HMTF) was designed to collect funds to pay for 100% of navigation O&M • Administrations have used some of those funds to balance the budget • Current tally of unexpended receipts is over $4 billion • It is expected to grow to $8 billion by 2011 • Approximately $500M per year is unexpended • Fund grows while O&M remains underfunded • PNWA has long advocated for increased HMTF expenditures for navigation maintenance

17. Several proposals to address the HMTF “surplus” • RAMP proposal would legislate spending all HMT receipts collected on navigation maintenance • CMANC proposal would guarantee a percentage of HMT revenue back to the states for navigation and non-navigation uses • Other proposals would create a new Freight Trust Fund (FTF) • FTF would be partially funded with HMT revenue • FTF would be available for landside projects around the country • PNWA Board of Directors will discuss these proposalson 6/20/08 and recommend action • All PNWA members are encouraged to attend

18. InlandWaterwaysTrustFund

19. Proposed inland users lockage fee • Administration is looking for more revenue • Towboaters currently pay a 20 cent/gallon tax that goes into the Inland Waterways Trust Fund • IWTF pays for 50% of Corps construction and major rehab projects on the inland waterways • About $90 million is generated annually, which is insufficient to keep pace with current and expected project costs • Administration proposed legislation to implement a lock user fee to replace the existing diesel fuel tax

20. Proposed inland users lockage fee • PNWA opposes these proposed lockage fees • Higher fees are counter to other Administration policies: • More fees on barging could result in modal shifts • Modal shifts would result in greater fuel use and air emissions • Higher transportation costs will reduce the competitiveness of American products in international markets • PNWA Board of Directors will discuss • the IWTF on 6/20/08 and recommend action • All PNWA members are encouraged to attend

21. FCRPSBiOp

22. Federal Columbia River Power System (FCRPS) Biological Opinion (BiOp) Lawsuit • PNWA represents navigation interests (IPNG) • Navigation has been successfully protected as fish passage has improved • Final BiOp has been issued by NOAA Fisheries • PNWA and IPNG support the Columbia Basin Fish Accords • We expect more legal challenges • We expect to have to fight to protect ourselves over the long term • We expect navigation to remain fully functioning in the long run • We expect much more focus and research on ocean conditions

23. PNWAMediaEffort

24. PNWA is actively working to be the #1 resource for reporters with questions regarding navigation, transportation, salmon, trade and policy for the Pacific Northwest • How are we doing this? • Increasing frequency of media contact • Reducing response time for press releases • Looking ahead • Developing relationships • Maintaining accurate and detailed press lists • Creating a more dynamic website

25. We are seeing results! • PNWA has seen increased press coverage • Quotes in 12 articles • Coverage in 9 different media outlets

26. Whatnext?

27. PNWA’s 2008 Agenda: • Work to meet appropriations goals • Fight new/increased user fees • Continue to improve permitting process • Continue fight to protect navigation, hydropower and salmon • Help our members meet their needs

28. Questions?