NWC NEWS ALERT (March 3, 2024)

Congress to vote on first set of FY2024 appropriations bills later this week: Draft text for FY2024 Energy and Water released

As you may be aware, Congress narrowly avoided triggering a shutdown in the latest drama of FY2024 appropriations by passing their fourth Continuing Resolution to extend the current fiscal year to March 8 and 22 respectively. Congress is on track to vote on the first set of bills by this Friday after draft text was released on March 3 for the Consolidated Appropriations Act, 2024, which would fund six appropriations bills including the Energy and Water Appropriations (U.S. Army Corps of Engineers civil works program,  Department of Energy and the Bureau of Reclamation), Military Construction, Veterans Affairs; Agriculture, Rural Development, Food and Drug Administration; Commerce, Justice, Science; Department of the Interior, Environment; and Transportation, Housing and Urban Development. The pathway for the second set of bills, set to expire on March 22, is less certain.

According to a GOP fact sheet, the FY2024 Energy and Water Development and Related Agencies Appropriations Act is funded at $58.19 billion which includes $8.68 billion for the USACE’s civil works program ($21 million over FY2023 levels) and $1.75 billion for the Bureau of Reclamation’s Water and Related Resources account.

USACE civil works FY2024 funding highlights (according to the agreement explanation):

  • Investigations: The agreement includes $142,990,000 for Investigations. The agreement also includes a rescission of $11,413,000 of unused, previously appropriated funds, for a net appropriation of $131,577,000.
    • The Corps is expected to allocate the additional funding provided in this account primarily to specific feasibility and PED phases, rather than to remaining items as has been the case in previous work plans.
    • Additionally, on Preconstruction, Engineering and Design (PED), the Corps is shifting risk to PED to comply with study duration and cost metrics which concerns Congress. As such, they request a briefing on technical information related to study and project execution specific to PED.
    • The agreement provides $4,000,000 to continue the modernization of existing Corps coastal and hydraulics models.
    • The agreement provides $5,000,000 to complete efforts to research and develop automated assessment and inspection of flood control systems, for the purpose of identifying levee deficiencies.
  • Construction: The agreement includes $1,854,688,000 for Construction. The agreement also includes a rescission of$9,678,000 of unused, previously appropriated funds, for a net appropriation of $1,845,010,000. The agreement also includes $1,434,500,000 from the use of prior-year balances from Public Law 117-58. Of the funds made available from Public Law 117-58, not less than $113,537,000 shall be allocated to inland navigation purpose construction projects as named in the bill.
    • Of the additional funding provided in this account for flood and storm damage reduction, the Corps shall allocate not less than $30,000,000 to additional nonstructural flood control projects and continue construction of projects that principally address drainage in urban areas, of which not less than $20,000,000 shall be for projects that principally include improvements to rainfall drainage systems that address flood damages.
    • Of the additional funding provided in this account, the Corps shall allocate not less than $20,000,000 to projects with riverfront development components. Of the additional funding for other authorized project purposes and environmental restoration or compliance, the Corps shall allocate not less than $20,000,000 for execution of comprehensive restoration plans developed by the Corps for major bodies of water. The agreement reminds the Corps that shore protection projects are eligible to compete for additional funding for flood and storm damage reduction.
    • Of the additional funding provided for Environmental Infrastructure, not less than $11,000,000 shall be for a multi-state environmental infrastructure program.
    • Aquatic Plant Control Program, Mississippi River Basin.-The agreement includes $150,000 consistent with Senate direction.
    • Real Estate Requirements for Shore Protection Projects. -The agreement notes ongoing obstacles to carrying out authorized shore protection projects in the South Atlantic Division. The lack of progress is concerning. The Corps is directed to review its existing real estate policies that were developed to ensure compliance with WRDA 1986. Not later than 90 days after enactment of this Act the Corps shall provide to the appropriate committees of Congress a briefing that recommends alternatives to existing real estate requirements that would enable expeditious construction of delayed projects and incorporates the views of non-federal sponsors.
  • Mississippi Rivers and Tributaries: The agreement includes $368,037,000 for Mississippi River and Tributaries. The agreement also includes a rescission of $1,110,000 of unused, previously appropriated funds, for a net appropriation of $366,927,000.
    • Additional Funding for Ongoing Work.-When allocating the additional funding provided in this account, the Corps shall consider giving priority to completing or accelerating ongoing work that will enhance the nation’s economic development, job growth, and international competitiveness or for studies or projects located in areas that have suffered recent natural disasters. While this funding is shown under remaining items, the Corps shall use these funds in Investigations, Construction, and Operation and Maintenance, as applicable. When allocating additional funds recommended in this account, the Corps is directed to consider cooperative projects addressing watershed erosion, sedimentation, flooding, and environmental degradation.
  • Operation and Maintenance: The agreement includes $5,552,816,000 for Operation and-Maintenance. The agreement also includes a rescission of $30,000 of unused, previously appropriated funds, for a net appropriation of $5,552,786,000.
    • Additional Funding for Ongoing Work
      • The Corps shall allocate not less than $350,000 for the purpose of completing the report required in section 8205 of WRDA 2022. It is expected that completion of this report will enable Corps Districts to readily develop work packages for Harbor Maintenance Trust Fund (HMTF)-eligible work that reflects maintenance to authorized dimensions instead of historical maintenance levels.
      • $200,000 shall be to provide a report consistent with the direction under the heading “Levee Rehabilitation Projects in the Northwestern Division.”
      • $2,600,000 shall be for cooperation and coordination with the Great Lakes States to develop sediment transport models for Great Lakes tributaries that discharge to federal navigation channels and for water control manual updates for non-Corps owned high hazard dams where: (1) the Corps has a responsibility for flood control operations under section 7 of the Flood Control Act of 1944; (2) the dam requires coordination of water releases with one or more other high-hazard dams for flood control purposes; and (3) the dam owner is actively investigating the feasibility of applying forecast-informed reservoir operations.
      • The Corps shall allocate the additional funding provided in this account consistent with the direction under the headings “Donor & Energy Transfer Ports” and “Harbor Maintenance Trust Fund Targets.”
    • Aquatic Nuisance Control Research Program. The agreement provides $5,000,000 to supplement activities related to harmful algal bloom research and control, consistent with House direction; $3,500,000 to develop next generation ecological models, consistent with House and Senate direction; $5,000,000 to continue work on the Harmful Algal Bloom Demonstration Program, as authorized by WRDA of2020; and $4,000,000 to work with university partners, consistent with Senate direction.
    • Asset Management/FEM, Structural Health Monitoring. The agreement includes $5,000,000 to support the structural health monitoring program to facilitate research to maximize operations, enhance efficiency, and protect asset life through catastrophic failure mitigation.
    • Coastal Inlets Research Program. The agreement includes $14,200,000 in addition to the budget request for the Corps-led, multi-university effort to identify engineering frameworks to address coastal resilience needs; to develop adaptive pathways that lead to coastal resilience; for efforts that measure the coastal forces that lead to infrastructure damage and erosion during extreme storm events.
    • Donor & Energy Transfer Ports. The agreement directs the Corps to allocate any work plan HMTF funding for Donor and Energy Transfer Ports consistent with section 102 and section 104 of WRDA 2020. The Corps is reminded that Donor and Energy Transfer Ports are eligible to receive additional funding recommended in the deep-draft harbor and channel funding line for expanded uses.
    • Harbor Maintenance Trust Fund Target. The agreement expects the Corps to meet the donor and energy target in the fiscal year 2024 work plan. In conjunction with the fiscal year 2024 work plan, the Corps is directed to provide to the Committees a list of all projects with HMTF funding amounts for each section 102 WRDA target, including expanded uses.
    • Levee Safety. The agreement includes $1,000,000 to meet the requirements of section 131 of WRDA 2020. The agreement notes that the Corps has paused the formation of the Levee Safety Committee to better incorporate the views of levee sponsors. The Corps is directed to provide a briefing to the Committees at least 30 days prior to resuming these efforts.
    • Monitoring of Completed Navigation Projects, Fisheries. The Corps is directed to continue ongoing research. The agreement includes $3,000,000 for research to assist the Corps across all waterways, lock structures, lock operation methods, and fish species and that will more fully inform the Corps’ operations. Additionally, the agreement provides $1,500,000 for the National Information Collaboration on I.:; Eco-hydraulics effort to research the impact of reduced lock operations on riverine fish.
    • Regional Sediment Management. The agreement includes $6,000,000 to develop integrated tools that build coastal resilience across navigation, flood risk management, and ecosystem projects within the program.
  • Regulatory Program: $221 million
  • Formerly Utilized Sites Remedial Action Program: $300 million
  • Flood control and coastal emergencies: $35 million
  • WIFIA (dams) revolving loan program: $7.2 million
  • New starts: In addition to individual new starts specifically identified in this Act, the agreement includes three additional new starts in Investigations and one in Construction. The three new starts in Investigations shall be for flood and storm damage reduction studies that were authorized in WRDA 2022 and are in states that had a Federal Disaster Emergency declared in 2022. The new construction start shall be for flood and storm damage reduction.

Under the language, the Corps will be required to submit a work plan to Congress 60 days after the bill is signed into law.

Bureau of Reclamation FY2024 funding highlights (according to the agreement explanation):

  • Water and Related Resources Account: $1.75 billion (For management, development and restoration of water and related natural resources including operation, maintenance and rehabilitation)
    • Additional Funding for Ongoing Work
      • Priority in allocating these funds should be given to advance and complete ongoing work, including preconstruction activities and where environmental compliance has been completed; improve water supply reliability; improve water deliveries; enhance national, regional, or local economic development; promote job growth; advance tribal and nontribal water settlement studies and activities; or address critical backlog maintenance and rehabilitation activities.
    • Water Conservation and Delivery
      • $134,000,000 shall be for water storage projects as authorized in section 4007 of the Water Infrastructure Improvements for the Nation (WUN) Act (Public Law 114-322).
      • $50,000,000 shall be for implementing the Drought Contingency Plan in the Lower Colorado River Basin.
      • $20,000,000 shall be for the planning, pre-construction, or construction activities related to projects found to be feasible by the Secretary and that are ready to be initiated for the repair of critical Reclamation canals where operational conveyance capacity has been seriously impaired by factors such as age or land subsidence, especially those that would imminently jeopardize Reclamation’s ability to meet water delivery obligations in drought-prone states.
      • $10,000,000 shall be allocated to aquifer recharge projects.
      • $6,000,000 shall be for the Anadromous Fish Screen Program.
    • Environmental Restoration or Compliance
      • $20,000,000 shall be for activities authorized under sections 4001 and 4010 of the WIIN Act (Public Law 114-322) or as set forth in federal-state plans for restoring threatened and endangered fish species affected by the operation of Reclamation’s water projects.
    • Aquatic Ecosystem Restoration Program. The agreement includes an additional $3,250,000 for studies or projects that will develop alternative pumping sites in a location to produce multiple benefits including dewatering ofriver segments, improved water quality, and reliable water delivery.
    • Desalination and Water Purification Program. The agreement includes $12,000,000 for desalination projects.
    • WaterSMART Program: Title XVI Water Reclamation & Reuse Program. The agreement includes $20,000,000 for water recycling and reuse projects
  • Central Valley Project Restoration Fund: $48.5 million
  • California Bay-Delta Restoration: $33 million
  • Policy and Administration: $66.8 million