RE: Harbor Maintenance Trust Fund (HMTF) Bill H.R. 4844, Srupak-Boustany
March 19, 2010 —
TO: ALL MEMBERS
GSMA’s circular M 23-10, dated February 26, 2010, advised our members of matters concerning the HMTF and the latest shortfall in the Corps’ New Orleans District (NOD) Operations and Maintenance budget to fund dredging on the Lower Mississippi River (LMR). Current estimates by the Corps’ NOD proclaim a shortfall of $67 million that will be needed to restore and maintain the LMR to fully authorized dimensions for the remainder of Fiscal Year 2010. These yearly funding shortfalls have persisted for years; yet the Harbor Maintenance Tax (HMT), a .125% ad valorem tax on imported cargo, has generated a surplus of over $5 billion. Over the last several years, the unappropriated funds from the HMT, which are placed into the Harbor Maintenance Trust Fund (HMTF), equal about half of the funds collected via the HMT. The HMTF is a national issue, but because a substantial portion of maintenance dredging occurs on the LMR, is critical to Louisiana. In circular M 23-10, it was noted that there were several ongoing efforts to promote the full use of the HMT for its intended purposes. The Stupak-Boustany bill, H.R. 4844, was recently assigned to the House Committee on Transportation and Infrastructure and the House Committee on Rules. The theme of H.R. 4844 is:
“To ensure that amounts credited to the Harbor Maintenance Trust Fund are used for harbor maintenance. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled.”
Congressman Boustany’s continued support in moving the HMTF bill to its first step in the legislative process is greatly appreciated. The potential for additional funding for beneficial use of dredged material along coastal Louisiana makes it clear that not only does this effort benefit the navigation industry , it also promotes coastal restoration. The following response was provided by James Walker, Chief of Navigation at Corps’ Headquarters, when the undersigned requested clarification on what harbor maintenance projects were to be funded by the HMTF:
“The HMTF is primarily dedicated to maintenance dredging of navigation channels, but other projects that can be funded by this Trust Fund include: maintenance of jetties and breakwaters; the Federal share of constructing Dredged Material Placement Facilities (DMPF), as required by Federal harbor and channel O&M; operation and maintenance of DMPFs and projects for the mitigation of impacts on Federal navigation projects on nearby shores; dredging of contaminated sediments in, or those affecting, Federal navigation harbors and channels; and projects for the beneficial use of dredged material.”
If this legislation was already in effect, maintenance dredging on the world’s greatest waterway would have sufficient funding. With the exception of one year, since 2005 the Corps’ NOD required supplemental or emergency funding to dredge the LWR. The current shortfall of $67 million is critical, and funding is expected to run out in early May. If supplemental funds are not secured, draft restrictions on the LMR may be necessary. Because of the prevailing flooding of tributaries to the Mississippi River due to heavy rain events and unseasonably warm weather melting the above-average snowfall across this same area, it is expected that this water will keep the LMR at high water levels over the next few months. The National Weather Service’s extended forecast predicts the level on the Carrollton Gauge to be at 10.3 feet on March 23, 2010, and to remain above 11 feet until at least April 14, 2010. The Corps expects high river levels to extend until June or July.
In years past, the LMR normally gets supplemental funding prior to the enforcement of stringent draft restrictions, but the current Administration ceased all Supplemental Funding bills. Inside the Beltway, the next chance for supplemental funding is thought to come in the way of a War Supplemental request, but this may not be put forward until June. If additional dredging funds are not made available before then, the LMR may remain at less than authorized dimensions that could result in severe draft restrictions for an extended period of time.
GSMA continues to support Harbor Maintenance initiatives and recognizes the coalition members of Realize America’s Maritime Promise (RAMP) with the work that has led to the three potential ways (Stupak-Boustany, Levin-Hutchinson, WRDA 2010) for this legislation to change. The RAMP effort, and that of the resulting proposed HMTF bills, are to establish a legislative firewall around the HMTF to ensure that all monies collected are used for one of the intended purposes. The unused portion of the HMTF has, to this point, been used to offset the national deficit. The $5.5 billion diverted for this purpose would have helped maintain our Nation’s waterways including the LMR.
GSMA respectfully requests your support for H.R. 4844. Please contact the members of the Congressional Delegation and ask for their support for this legislation. Similar legislation is being prepared in the Senate via the Levin- Hutchinson HMTF Bill that could be introduced soon. These two efforts may, at best, familiarize both sides of the House on the importance of this legislation and lead the way for its inclusion in the Water Resources and Development Act in 2010 However, if the standalone versions are successful, the outcome will be the same, which is the HMTF would be restored to its intended purpose, and our nation’s maritime highways would be repaired and maintained.
Sean M. Duffy, Sr.
President and CEO
