Last week, NWC reported on the Administration’s “Building Infrastructure, Not Paperwork” (BINP) initiative, which is intended to refocus the U.S. Army Corps of Engineers (USACE/Corps) Civil Works program on delivering infrastructure projects more efficiently. That February 24 NWC News Alert can be found here.

NWC has since obtained a series of memoranda transmitted in late February from the Office of the Assistant Secretary of the Army for Civil Works (ASACW) to the Chief of Engineers outlining expectations for implementing elements of the initiative across the Civil Works program. NWC is currently reviewing these memoranda and will provide a more comprehensive analysis for members in the coming days.

The memoranda address the following topics:

  • Development and Investment of Hydropower through Non-Federal Investment of Corps of Engineers Facilities
  • Increasing Dredging Capacity Through Better Mitigation Banking
  • Policy on Use of Project Labor Agreements on Army Civil Works Projects
  • Preliminary List for the Deauthorization of Projects
  • Prioritization of Effort in Planning, Design, and Construction of Infrastructure in the Army Civil Works Program
  • Prioritization of Effort within the Army Civil Works Program
  • Programmatic Direction on Processing Requests for Permission Under Section 408
  • Propelling Project Delivery through Early Actionable Increments for Complex Water Resources Problems
  • Realignment of Investigation Phase and Federal Interest Determination to Ensure Effective Use of Federal Resources
  • Section 902 Reassignment – Reallocation Strategy
  • Smarter Real Estate Acquisition
  • Use of Ship Simulation in Navigation Project Design

Initial Observations. While NWC is continuing to review the memoranda in detail, several directives stand out from an initial review.

Prioritization of USACE Priorities. The memorandum establishes a prioritization process for Civil Works infrastructure projects. Each district commander must identify and rank no fewer than five top priorities, which are then forwarded to the division commanders by March 6. Divisions must develop a ranked list of no fewer than twenty priorities and submit them to USACE Headquarters by March 13, after which the Chief of Engineers will review and rank the priorities before forwarding them to the ASACW by March 20.

The memorandum notes that the Corps already develops recommendations for the President’s Budget each year and states that prioritization should precede and inform the budget formulation process. How this process may influence the FY2027 President’s Budget, which is expected to be released this month, is unknown.

Revising Section 408 Permissions. Another memorandum directs the Corps to develop nationwide categorical permissions for certain categories of activities that alter existing Corps projects. The memo calls for the Corps to identify activities that could qualify for standardized categorical permissions across districts; standardize review procedures to ensure consistency nationwide; and incorporate these procedures into formal rulemaking that would codify Section 408 processes.

The memorandum also directs the Corps to examine whether categorical permissions could facilitate non-federal investment at Corps facilities, including hydropower development.

Mitigation Banking and Navigation Dredging. One memorandum directs the Corps to expand the use of mitigation banks for navigation dredging projects and indicates that mitigation banks should be viewed as the preferred option for meeting mitigation requirements when feasible. The memorandum notes that project-specific mitigation requirements have often caused delays and directs the Corps to facilitate permitting of mitigation banks and integrate them into major deep-draft navigation dredged material management plans.

Deauthorization of Projects. Another memorandum directs the Corps to develop a preliminary list of projects that may be candidates for deauthorization. The directive focuses on projects that were authorized before June 10, 2014; that have not received construction funding; or that lack an active non-federal sponsor. Districts are instructed to review authorized projects and identify those that meet these criteria.

Prioritization of Effort in Planning, Design, and Construction of Infrastructure Across the Civil Works Program. A separate memorandum directs the Corps to prioritize activities that support core Civil Works missions in the following order: protecting life and safety; protecting economic activity; maintaining efficient navigation and minimizing supply chain impacts; protecting human property; restoration of nationally significant aquatic ecosystems, protecting state and municipal level infrastructure. The memo states “Work outside of these areas should be considered lesser priority and should generally be conducted by outside resources.” This directive is also likely to inform the district, division, and headquarters recommendations developed under the prioritization of USACE priorities.

The directive also instructs the Corps to make greater use of non-federal capabilities (Sections 203, 204, 1043, etc.) for feasibility studies and projects, noting that many local sponsors and partners have technical expertise and resources that could allow projects to move forward more efficiently. The memorandum states that when non-federal partners can perform work at lower cost or with fewer delays, the Corps should facilitate those arrangements.

The memorandum also encourages districts to utilize contracting mechanisms to advance priority projects when neither a non-federal sponsor nor Corps staff have the capacity to carry out the work.

Hydropower Development and Non-Federal Investment. Another memorandum directs the Corps to review Corps facilities to identify opportunities for non-federal investment in hydropower infrastructure. The directive calls for an inventory of facilities with existing hydropower or potential for new development and directs the Corps to examine barriers that may limit private-sector participation.

The memorandum references coordination with the Federal Energy Regulatory Commission licensing process and signals an interest in expanding public-private participation in hydropower development at Corps facilities.

Complex Water Resources Projects and Early Actionable Elements. One memorandum addresses the use of early actionable elements for complex water resources problems. The directive states that studies should be limited in scope such that they can be completed within three years and $3 million, consistent with existing study constraints. The memorandum also notes support for initiatives that encourage advancing projects to approximately 35 percent design, provided that doing so does not unnecessarily extend the timeline for completing studies. It further states that design maturity alone should not be used as a criterion for determining project complexity or as justification for requesting additional time or funding.

In conclusion, the memoranda provide direction from ASACW to USACE on how these initiatives shall move forward and indicate that USACE should brief the ASACW office as implementation proceeds. USACE may also need to further develop guidance for divisions and districts as these directives are carried out. NWC will continue analyzing the memoranda and expects to share additional information with members as further details and implementation guidance emerge. Members who have insights or perspectives on specific provisions of the memoranda or their potential implementation are encouraged to share their observations with NWC.