On April 30, 2019, Congressman Peter DeFazio (D-OR) as the Chairman of the U.S. House of Representative’s Transportation & Infrastructure Subcommittee (T&I) introduced the bipartisan Harbor Maintenance Trust Fund Act (H.R. 2396) with the support of Ranking Member Congressman Sam Graves (R-MO) and Water Resources and Environment Subcommittee Chairwoman Grace Napolitano (D-CA) Ranking Member Bruce Waterman (R-AR) and Congressman Mike Kelly (R-PA).
The Press Release issued by the U.S. House of Representatives’ Transportation & Infrastructure Subcommittee is attached along with the full details as prepared by the Big River Coalition.
The Big River Coalition has supported the majority of efforts designed to appropriate full revenues from the Harbor Maintenance Trust Fund (HMTF) for authorized channel maintenance projects. The Coalition supported the Realize America’s Maritime Promise Act (RAMP Act or H.R. 104 of 2011) as authored by former Louisiana Congressman Charles Boustany (R-LA) and a sister bill in the Senate authored by former Senator Carl Levin (D-MI) (S. 601 also in 2011). Although, neither of these Bills was ever fully adopted they are to be credited for making Congress aware of the discrepancy between collections and allocations. Last year the allocations from the HMTF approached 92 percent where in 2011 just more than half of the collections were allocated to Harbor Maintenance projects.
The Big River Coalition remains hopeful that Congress will be able to enact legislation that requires full allocation of the annual revenues from the HMTF for the intended purposes (Harbor Maintenance). The markup for H.R 2396 could occur later this week, our membership is encouraged to support this effort to restore trust to the Harbor Maintenance Trust Fund.
Full complete details please see the attachments.
FULL UTILIZATION OF THE HARBOR MAINTENANCE TRUST FUND ACT H.R. 2396
Full Utilization of the Harbor Maintenance Trust Fund Act H.R. 2396 5719.pdf
The Big River Coalition (BRC) was created in Fiscal Year 2011 in response to the announcement by the Commander of the United States Army Corps of Engineers’ (USACE) Mississippi Valley Division that channel maintenance on the Mississippi River Ship Channel, Gulf to Baton Rouge (Louisiana) would be limited by the dedicated funding (Operations and Maintenance [O&M] budget). Prior to this position change the Mississippi River Ship Channel received preferential treatment and often received additional funding from other USACE projects. After the 1989 grounding of the M/V MARSHAL KONYEV (Pilottown) that virtually closed the Ship Channel to all traffic, the USACE’s Headquarters announced in a position statement that it would maintain the nation’s most critical navigation channel. The BRC originally focused on obtaining additional funding to supplement the shortfall in the Corps’ O&M budget, to strive to establish a legislative firewall around the Harbor Maintenance Trust Fund and to represent members of the Mississippi River navigation industry in matters related to coastal restoration. As our membership grew and continued to make effective progress on these initiatives, members supported the Coalition’s commitment to actively advocate for the deepening of the Mississippi River Ship Channel Gulf to Baton Rouge to 50 feet.
The Big River Coalition has supported the majority of efforts designed to appropriate full revenues from the Harbor Maintenance Trust Fund (HMTF) for authorized channel maintenance projects. The Coalition supported the Realize America’s Maritime Promise Act (RAMP Act or H.R. 104 of 2011) as authored by former Louisiana Congressman Charles Boustany (R-LA) and a sister bill in the Senate authored by former Senator Carl Levin (D-MI) (S. 601 also in 2011). Although, neither of these Bills was ever fully adopted they are to be credited for making Congress aware of the discrepancy between collections and allocations. Last year the allocations from the HMTF approached 92 percent where in 2011 just more than half of the collections were allocated to Harbor Maintenance projects.
On April 30, 2019, Congressman Peter DeFazio (D-OR) as the Chairman of the U.S. House of Representative’s Transportation & Infrastructure Subcommittee (T&I) introduced the bipartisan Harbor Maintenance Trust Fund Act (H.R. 2396) with the support of Ranking Member Congressman Sam Graves (R-MO) and Water Resources and Environment Subcommittee Chairwoman Grace Napolitano (D-CA) Ranking Member Bruce Waterman (R-AR) and Congressman Mike Kelly (R-PA).
The following is reproduced from the Press Release issued by the T&I Subcommittee (attached):
“EXECUTIVE SUMMARY:
H.R. 2396, the “Full Utilization of the Harbor Maintenance Trust Fund Act”, provides for the investment of approximately $34 billion for our Nation’s coastal and inland harbors over the next decade without raising one more dime in taxes
This bipartisan bill ensures the Harbor Maintenance Trust Fund is used for its intended purpose— maintaining our Federally-authorized harbors. By providing a discretionary cap adjustment for full- utilization of the Harbor Maintenance Trust Fund, the bill makes it easier for Congress to appropriate any funds collected in the Trust Fund for authorized harbor maintenance needs, including the existing $9.3 billion balance in the Trust Fund. The legislation enables the expenditure of approximately $34 billion over the next decade, which will allow the U.S. Army Corps of Engineers (Corps) to dredge all Federal harbors to their constructed widths and depths.
The Full Utilization of the Harbor Maintenance Trust Fund Act offers the following benefits:
- Provides approximately $34 billion in infrastructure investment for our Nation’s coastal and inland harbors over the next decade without raising one more dime in taxes – including:
- Authority to expend the expected $24.5 billion in new revenue (including interest) collected in the Trust Fund over the next decade; and
- Authority to appropriate additional funds for harbor maintenance needs from the existing $9.3 billion balance in the Trust Fund.”
The American Society of Civil Engineers reported in 2014 that if the U.S. simply maintains current levels of investment in its marine transportation system by 2020 there will be an estimated 738,000 fewer jobs nationwide. Jobs lost due to America’s lack of competitiveness in global trade and because U.S. households will be spending more for the imported goods and commodities moving within the U.S. along its waterways.
The Big River Coalition is committed to ensuring the future of navigation on the Mississippi River Ship Channel (MRSC) as one of the nation’s fundamental natural resources and true economic powerhouse. The Mississippi River has an estimated $ 735.7 billion annual impact on the nation’s economy and is responsible for approximately 2.4 million jobs (585,000 jobs on the Lower River – Cairo, IL to the Gulf of Mexico and 1.86 million plus jobs on the Upper River-Lake Itasca, MN to Cairo, IL and including the IL River).
The Coalition believes the markup for H.R 2396 could occur later this week, members are encouraged to support the effort to restore trust to the Harbor Maintenance Trust Fund.
H.R. 2396, the Full Utilization of the Harbor Maintenance Trust Fund Act Introduced by T&I Chairman Peter A. DeFazio and Ranking Member Sam Graves, Water Resources and Environment Subcommittee Chairwoman Grace F. Napolitano and Ranking Member Bruce Westerman, and Congressman Mike Kelly
H.R. 2398 Full Utilization of the Harbor Maintenance Trust Fund Act 5619.pdf
EXECUTIVE SUMMARY
H.R. 2396, the “Full Utilization of the Harbor Maintenance Trust Fund Act”, provides for the investment of approximately $34 billion for our Nation’s coastal and inland harbors over the next decade without raising one more dime in taxes.
This bipartisan bill ensures the Harbor Maintenance Trust Fund is used for its intended purpose—maintaining our Federally-authorized harbors. By providing a discretionary cap adjustment for full- utilization of the Harbor Maintenance Trust Fund, the bill makes it easier for Congress to appropriate any funds collected in the Trust Fund for authorized harbor maintenance needs, including the existing $9.3 billion balance in the Trust Fund. The legislation enables the expenditure of approximately $34 billion over the next decade, which will allow the U.S. Army Corps of Engineers (Corps) to dredge all Federal harbors to their constructed widths and depths.
HARBOR MAINTENANCE BACKLOG
According to the Corps, navigation channels at our Nation’s busiest 59 ports are available less than35 percent of the time—and the conditions of our midsize and emerging harbors are far worse. With the opening of the expanded Panama Canal in June 2016, larger container ships will increasingly call on our ports, and dredging needs will continue to grow.
In 2016, the Corps estimated the total cost to dredge and maintain authorized widths and depths of all Federal navigation projects is $20.5 billion over the next decade (in 2019 dollars). This estimate includes:
- $11.5 billion—to achieve authorized dimensions in the next five years ($2.3 billion annually); and
- $9.0 billion—to maintain authorized dimensions for an additional five years ($1.8 billion annually).
Moreover, total Corps navigation needs are likely higher. The Corps’ $20.5 billion estimate includes additional expenses related to navigation work (e.g., construction of dredged material placement facilities). However, this estimate does not likely include all necessary jetty and breakwater work, or other needs identified by ports to maintain and expand harbor use nationwide.
HARBOR MAINTENANCE TRUST FUND
In 1986, Congress enacted the Harbor Maintenance Tax (HMT) to recover the operation and maintenance dredging costs for Federally-authorized ports from maritime shippers. The HMT is directly levied on importers and domestic shippers using coastal or inland ports as a 0.125 percent ad valorem tax on the value of imported cargo (e.g., $1.25 per $1,000 value)1 and is typically passed along to U.S. taxpayers on the purchase of imported goods or services. These revenues are deposited into the Harbor Maintenance Trust Fund within the U.S. Treasury from which Congress currently appropriates funds to the Corps for harbor maintenance dredging.
The Harbor Maintenance Trust Fund collects more revenue from shippers than Congress has appropriated to the Corps to maintain our harbors. Approximately $9.3 billion in already collected revenue is sitting idle in the U.S. Treasury. As a result, while shippers continue to pay into the Trust Fund for promised maintenance activities, the Federal Government has not carried out many of them. The funds sitting unused in the Trust Fund would be sufficient to meet the maintenance dredging needs of all Federally-authorized ports.
According to the Congressional Budget Office (CBO), the Harbor Maintenance Trust Fund willcollect an additional $24.5 billion in new revenue (including interest) over the next decade—on top of the estimated $9.3 billion in previously collected but unspent revenue. Yet, according to CBO, Federal appropriations from the Trust Fund are only estimated to total $19.4 billion over the same decade, resulting in the Trust Fund balance reaching $14.4 billion in fiscal year 2029.
INVESTING IN AMERICA: FULL UTILIZATION OF THE HARBOR MAINTENANCE TRUST FUNDH.R. 2396 enables the investment of approximately $34 billion from the Trust Fund over the
next decade for the intended purpose of maintaining our Federally-authorized harbors.
As the bar chart above demonstrates, the bill unlocks significant additional funds for the Corps to address the backlog of maintenance dredging needs of our Federally-authorized ports. If Congress simply utilizes expected receipts to the Trust Fund over the next decade for their intended purposes
we will invest more than $24.5 billion in our critical port and harbor needs—and all this work could be performed without raising one dime more in taxes or borrowing from the U.S. Treasury. At the same time, H.R. 2396 also provides authority for full-utilization of the more than $9.3
billion balance in previously collected Harbor Maintenance Taxes in the Trust Fund to ensure the Corps has sufficient funds to address all identified annual maintenance needs.
H.R. 2396, THE FULL UTILIZATION OF THE HARBOR MAINTENANCE TRUST FUND ACT
To honor the Federal commitment to U.S. shippers and taxpayers, to ensure the competitiveness and viability of Federally-authorized harbors, and to create and sustain thousands of jobs dependent on a vibrant and efficient marine transportation system,2 H.R. 2396:
- Provides approximately $34 billion in infrastructure investment for our Nation’s coastaland inland harbors over the next decade without raising one more dime in taxes – including:
- Authority to expend the expected $24.5 billion in new revenue (including interest) collected in the Trust Fund over the next decade; and
- Authority to appropriate additional funds for harbor maintenance needs from the existing $9.3 billion balance in the Trust Fund.
