[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] A REVIEW OF RECENTLY COMPLETED UNITED STATES ARMY CORPS OF ENGINEERS CHIEF'S REPORTS, PART 3 ======================================================================= (114-52) HEARING BEFORE THE SUBCOMMITTEE ON WATER RESOURCES AND ENVIRONMENT OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION __________ SEPTEMBER 15, 2016 __________ Printed for the use of the Committee on Transportation and Infrastructure [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available online at: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=transportation ______ U.S. GOVERNMENT PUBLISHING OFFICE 21-646 PDF WASHINGTON : 2017 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE BILL SHUSTER, Pennsylvania, Chairman DON YOUNG, Alaska PETER A. DeFAZIO, Oregon JOHN J. DUNCAN, Jr., Tennessee, ELEANOR HOLMES NORTON, District of Vice Chair Columbia JOHN L. MICA, Florida JERROLD NADLER, New York FRANK A. LoBIONDO, New Jersey CORRINE BROWN, Florida SAM GRAVES, Missouri EDDIE BERNICE JOHNSON, Texas CANDICE S. MILLER, Michigan ELIJAH E. CUMMINGS, Maryland DUNCAN HUNTER, California RICK LARSEN, Washington ERIC A. ``RICK'' CRAWFORD, Arkansas MICHAEL E. CAPUANO, Massachusetts LOU BARLETTA, Pennsylvania GRACE F. NAPOLITANO, California BLAKE FARENTHOLD, Texas DANIEL LIPINSKI, Illinois BOB GIBBS, Ohio STEVE COHEN, Tennessee RICHARD L. HANNA, New York ALBIO SIRES, New Jersey DANIEL WEBSTER, Florida DONNA F. EDWARDS, Maryland JEFF DENHAM, California JOHN GARAMENDI, California REID J. RIBBLE, Wisconsin ANDRE CARSON, Indiana THOMAS MASSIE, Kentucky JANICE HAHN, California MARK MEADOWS, North Carolina RICHARD M. NOLAN, Minnesota SCOTT PERRY, Pennsylvania ANN KIRKPATRICK, Arizona RODNEY DAVIS, Illinois DINA TITUS, Nevada MARK SANFORD, South Carolina SEAN PATRICK MALONEY, New York ROB WOODALL, Georgia ELIZABETH H. ESTY, Connecticut TODD ROKITA, Indiana LOIS FRANKEL, Florida JOHN KATKO, New York CHERI BUSTOS, Illinois BRIAN BABIN, Texas JARED HUFFMAN, California CRESENT HARDY, Nevada JULIA BROWNLEY, California RYAN A. COSTELLO, Pennsylvania GARRET GRAVES, Louisiana MIMI WALTERS, California BARBARA COMSTOCK, Virginia CARLOS CURBELO, Florida DAVID ROUZER, North Carolina LEE M. ZELDIN, New York MIKE BOST, Illinois (ii) Subcommittee on Water Resources and Environment BOB GIBBS, Ohio, Chairman CANDICE S. MILLER, Michigan GRACE F. NAPOLITANO, California DUNCAN HUNTER, California DONNA F. EDWARDS, Maryland ERIC A. ``RICK'' CRAWFORD, Arkansas JOHN GARAMENDI, California DANIEL WEBSTER, Florida LOIS FRANKEL, Florida JEFF DENHAM, California JARED HUFFMAN, California REID J. RIBBLE, Wisconsin EDDIE BERNICE JOHNSON, Texas THOMAS MASSIE, Kentucky ANN KIRKPATRICK, Arizona RODNEY DAVIS, Illinois DINA TITUS, Nevada MARK SANFORD, South Carolina SEAN PATRICK MALONEY, New York TODD ROKITA, Indiana ELIZABETH H. ESTY, Connecticut JOHN KATKO, New York ELEANOR HOLMES NORTON, District of BRIAN BABIN, Texas Columbia CRESENT HARDY, Nevada RICHARD M. NOLAN, Minnesota GARRET GRAVES, Louisiana PETER A. DeFAZIO, Oregon (Ex DAVID ROUZER, North Carolina Officio) MIKE BOST, Illinois BILL SHUSTER, Pennsylvania (Ex Officio) (iii) CONTENTS Page Summary of Subject Matter........................................ vi WITNESSES Major General Donald Jackson, Deputy Commanding General for Civil and Emergency Operations, U.S. Army Corps of Engineers: Testimony.................................................... 4 Prepared statement........................................... 18 Responses to questions for the record from Hon. Bob Gibbs, a Representative in Congress from the State of Ohio.......... 23 PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS Hon. Rick Larsen of Washington................................... 16 SUBMISSIONS FOR THE RECORD Letter of June 27, 2016, from Hon. Patty Murray, a U.S. Senator from the State of Washington, et al., to Hon. Jo-Ellen Darcy, Assistant Secretary of the Army (Civil Works), U.S. Department of the Army, submitted by Hon. Rick Larsen..................... 26 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] A REVIEW OF RECENTLY COMPLETED UNITED STATES ARMY CORPS OF ENGINEERS CHIEF'S REPORTS, PART 3 ---------- THURSDAY, SEPTEMBER 15, 2016 House of Representatives, Subcommittee on Water Resources and Environment, Committee on Transportation and Infrastructure, Washington, DC. The subcommittee met, pursuant to notice, at 9:30 a.m., in room 2167, Rayburn House Office Building, Hon. Bob Gibbs (Chairman of the subcommittee) presiding. Mr. Gibbs. We will call the Subcommittee on Water Resources and Environment of the Committee on Transportation and Infrastructure to order. Today we are having a hearing to review the recently completed United States Army Corps of Engineers Chief's Reports. I would like to welcome everybody to the hearing. This past May, the Committee on Transportation and Infrastructure unanimously passed H.R. 5303, the Water Resources Development Act of 2016. This legislation builds upon the success of WRRDA 2014, one of the most policy- and reform- focused pieces of legislation related to the U.S. Army Corps of Engineers. H.R. 5303 is a bipartisan bill that was developed by working across the aisle to achieve a common goal of investing in America's future. H.R. 5303 contains no earmarks, as WRRDA 2014 did, and strengthens our water transportation networks to promote competitiveness, prosperity, and economic growth. This committee held numerous public roundtables and official hearings in developing this legislation. We have heard from the public, industry, stakeholders, and from our colleagues in Congress while developing this legislation and have incorporated their ideas into H.R. 5303. I appreciate Chairman Shuster, Ranking Member DeFazio, and Mrs. Napolitano's bipartisan work to address the vital need for America. Today we are holding a hearing to review two Army Corps of Engineers reports that have been delivered to Congress since this subcommittee met last in May of this year. We intend to review these proposed projects to ensure they meet our criteria for authorization. Additionally, the Corps of Engineers has delivered to Congress two Post-Authorization Change Reports recommending modifications to ongoing construction projects at Swope Park, Missouri, and Picayune Strand, Florida. These Chief's Reports and Post-Authorization Change Reports address the missions of the Corps and balance economic development and environmental considerations equally. The Corps of Engineers constructs projects for the purposes of navigation, flood control, shoreline protection, hydroelectric power, recreation, environmental protection, restoration and enhancement, and fish and wildlife mitigation. The Corps of Engineers planning process considers economic development and environmental needs as it addresses water resource challenges. This rigorous planning process addresses the Nation's water resources needs by exploring a full range of alternatives in developing solutions that meet both national and local needs. The two Chief's Reports and two Post-Authorization Change Reports we are discussing today are the result of this rigorous planning process. These projects are proposed by the non- Federal interests in cooperation and consultation with the Corps. All of these Chief's Reports and Post-Authorization Change Reports, while tailored to meet locally developed needs, have national economic and environmental benefits. I would like to welcome General Jackson for being here today. It is an important hearing today, and thank you for your hard work on both the Upper Ohio River and southwest coastal Louisiana's Chief's Reports. And before I move on, I do want to ask unanimous consent that Representative Rick Larsen be permitted to join this subcommittee for today's hearing, if there is no objection. Without objection, so ordered. At this time I recognize my colleague from California, Mrs. Napolitano, for any comments she may have. Mrs. Napolitano. Yes, thank you, Mr. Chairman. Today's hearing will review the Chief's Reports and Post- Authorization Change Reports that have been completed and submitted to Congress since our hearing in May of this year. We applaud the chairman's willingness to make sure that all of the pending Chief's Reports are eligible for inclusion in the new Water Resources Reform and Development Act and for the decision to hold this hearing today. Since February, the committee has received completed Corps feasibility studies on the southwest coastal Louisiana project. In addition to the project, it brings the total to 29 pending Chief's Reports by the upcoming Water Resources Reform and Development Act. These important projects representing a diversity of projects' purposes and geographic regions are the next general of water infrastructure investment for our Nation. They all help to maintain and it helps national, regional and local economies in a variety of ways. As noted in our last hearing, the range of pending projects include ecosystem restoration projects ranging from Los Angeles River, California, to the Central Everglades in Florida; navigation projects, such as the project for the Port of Brownsville, Texas; and flood control projects, such as the American River common features project, also in California. Again, Mr. Chairman, I am pleased that we are discussing the pending Chief's Reports, and I would remind the chairman of the constraints we continue to face in utilizing Corps expertise on a host of other issues within the Corps authorities. While Chairman Shuster has been accommodating to many Members on both sides of the aisle, including new Corps projects and studies in the pending water resources bill, I also recognize the constraints placed on him and this committee by the ill-conceived moratorium on infrastructure investment of the Republican Conference. To that end, I want to call to this committee's attention a bipartisan House resolution, H.R. 813, introduced by a gentleman from Florida, Mr. Rooney, that would exclude water resources development projects of the Corps from the definition of a congressional earmark. This is a first good step to what I hope is a refocus of Congress on this wise infrastructure investment throughout the Nation. Regardless of the party, we should all support robust investment in our water resources and our water infrastructure. For too long we have been simply closing our eyes to the condition of our Nation's infrastructure as it crumbles around us. Now in places like Flint, MI, Toledo, OH, and in my home State in California, we face what decades ago should have been unthinkable: questions about the continued reliability and safety of our water systems and water-related infrastructure. Mr. Chairman, this bill is now past due. This is a serious issue for our States and our local communities for the safety and well-being of our families and for our overall quality of life. Yet day after day no action is taken in this Congress to address these issues. Mr. Chairman, we need to change that. Thank you, Mr. Chairman, for today's hearing, and I welcome General Jackson for his testimony. Mr. Gibbs. Thank you. I also ask unanimous consent that the record of today's hearing remain open until such time as our witnesses have provided answers to any questions that may be submitted to them in writing. So ordered. At this time I want to recognize Chairman Shuster of the full committee for any comments he may have. Mr. Shuster. Thank you, Chairman Gibbs, and thank you Ranking Member Napolitano for holding this hearing today. This is a critical part of getting back to a 2-year, every Congress process where we conduct oversight of WRDA and authorize these projects. So today, looking at these two Chief's Reports and these Post-Authorization Change Reports, it's critical we do this to make sure that it is in the next WRDA bill as we move forward hopefully here in the coming days and weeks or at least months. I really want to especially thank General Jackson and General Semonite for your swift action on the Upper Ohio River, the Emsworth, Dashields, and Montgomery Locks Facilities, which is critical to the Port of Pittsburgh, one of the Nation's busiest inland ports. I cannot thank you enough for that speed. We hope and I understand talking to General Semonite that you are doing some standardization, and you want to do that to make sure we save dollars and, again, be able to use the taxpayers' dollars wisely. And as Representative Napolitano said, and I echo her words, we are not investing the way we should in these locks and dams. It is a critical part of our infrastructure, and it is one of the reasons this country is a great economic power, going back 200 years, because of the rivers and the ports and the harbors we have in this country. So, again, thanks for being here today, and I yield back. Mr. Gibbs. Thank you. At this time I want to welcome General Ed Jackson. He is the Deputy Commander General for Civil Emergency Operations in the United States Army Corps of Engineers. He is here to talk about the two Chief's Reports and the Change Reports, and anything else. So welcome, General. The floor is yours. TESTIMONY OF MAJOR GENERAL DONALD JACKSON, DEPUTY COMMANDING GENERAL FOR CIVIL AND EMERGENCY OPERATIONS, U.S. ARMY CORPS OF ENGINEERS General Jackson. Chairman Gibbs, Chairman Shuster, Ranking Member Napolitano, and distinguished members of the subcommittee, as the chairman said, I am Major General Ed Jackson with a long title, Deputy Commanding General for Civil and Emergency Operations for the U.S. Army Corps of Engineers. I sincerely thank you for the opportunity to be here today to discuss the Chief's Reports that have been completed since I last testified for you on May 17th of this year. My written testimony includes detailed descriptions of the six Chief's Reports and two project Post-Authorization Change Reports that have completed executive branch review since May 17 of 2016. I will cover these projects briefly in my remarks today. My written testimony also identifies Corps decision documents that are still under review by the administration, including eight potential projects that have Chief's Reports and two projects with Post-Authorization Change Reports. On the first, the Upper Turkey Creek Chief's Report was transmitted to Congress on June the 30 of 2016. The recommended plan reduces flood risk along the Turkey Creek, a tributary to the Kansas River in Merriam, Kansas, which is a part of the Kansas City metropolitan area. Based upon October 2015 price levels, the total initial cost for this project is estimated at $37.8 million. The West Sacramento Chief's Report was transmitted to Congress on August 22, 2016. The report recommends flood risk management improvements along the Sacramento River, Yolo Bypass and Sacramento River Deep Water Ship Channel within the metropolitan area of West Sacramento, California. Based on October 2015 price levels, the total initial cost for this project is estimated at $1.2 billion. The American River Watershed, Common Features Chief's Report was transmitted to Congress on August 29, 2016. The report recommends flood risk management improvements along the American and Sacramento Rivers and Eastside tributaries in the Sacramento, California, area. Based upon October 2015 price levels, the total initial cost for this project is estimated at $1.6 billion. The South San Francisco Bay Shoreline Chief's Report was transmitted to Congress on 28 July of 2016. The report details plans to reduce flood risks for the community of Alviso, California, as well as ecosystem restoration measures in the Alviso pond complex. Based on October 2015 price levels, the total initial cost for this project is estimated at $173.9 million. The Craig Harbor Chief's Report was transmitted to Congress on August 22 of 2016. The report outlines navigation improvements to Craig Harbor, Alaska, including the construction of an L-shaped breakwater and provision of additional moorage for approximately 145 vessels. Based on October 2015 price levels, the total initial costs for this project is estimated at $32.3 million. The Corps has also completed a Chief's Report on the disposition of Green River Locks and Dams Nos. 3, 4 and 5, and Barren River Lock and Dam No. 1. This report was submitted to Congress on June 30 of 2016. The locks and dams identified in this report have not hosted commercial navigation for several decades and no longer support the congressionally authorized project purpose. Following deauthorization of commercial navigation at these facilities, the Corps will dispose of these properties and facilities through existing Army regulations and General Services Administration procedures unless Congress provides specific disposal authority. Yesterday the Assistant Secretary of the Army for Civil Works signed the Record of Decision for the West Shore Lake Pontchartrain project. The Chief's Report for this project has already been submitted to the Congress, and we just received confirmation this morning that the administration transmitted the report to Congress today. An additional Chief's Report recommending restoration of the Puget Sound Nearshore Ecosystem has completed the necessary policy and statutory reviews and has been provided to the Chief of Engineers for consideration and signature. This report is expected to be signed by the Chief within the next several days. Section 902 of the Water Resources Development Act of 1986 sets a maximum percentage cost increase for Civil Works projects. A further authorization is required to use Federal funds beyond this maximum authorized project cost. In these cases, the Corps completes a Post-Authorization Change Report, which is then provided to Congress if there is a recommendation for a further authorization. There are two of these projects or reports that have been completed since our last testimony in May. The Swope Park industrial area project, which is located along the Blue River, reduces flood risk in the Kansas City, Missouri, metropolitan area, and the Picayune Strand Restoration Component of the Comprehensive Everglades Restoration Plan, which provides for ecosystem restoration benefits. I would also like to take this opportunity to provide a brief update on the 2017 report to Congress on future water resources development as required by section 7001 of the Water Resources Reform and Development Act of 2014. The open season for submission of proposals by non-Federal interests closes on Monday, September 19. The Corps has proactively engaged with potential non-Federal sponsors to generate interest in submission of proposed water resources projects through various solicitations, informational sessions, and outreach opportunities. Notifications have been placed in the Federal Register, Corps Web sites, and on several social media platforms, and agency leadership has endeavored to promote this initiative at conferences and applicable information meetings. The Corps has also advertised and hosted a public Web-based information session to explain the 7001 criteria and how to submit proposals. We look forward to reviewing the proposals that we have received. Mr. Chairman, this concludes my statement. I appreciate the opportunity to testify today, and I look forward to answering any questions that you may have. Mr. Gibbs. Thank you. Just for clarity, in your testimony you talk about these that OMB sent in in June and stuff. Those were already in the bill. We had Chief's Reports. It is just how OMB functions. So I am really focusing on the two new Chief's Reports and the two new Change Reports that we just received and maybe the ones that we are going to receive before the deadline Monday, I believe, September 19. My first question is a question I always need to ask to hold everybody accountable. Between these two Chief's Reports and the two Post-Authorization Change Reports that came in since our previous hearing, did the Corps encounter any significant opposition to these reports? And if they did, can you kind of generalize what that opposition was and the concerns? General Jackson. No, Mr. Chairman, we did not encounter any significant opposition. We have been able to work through all of the issues with our resource agency partners and stakeholders to deliver these reports. Mr. Gibbs. That is great. That is good to hear. And on this hearing the two Post-Authorization Change Reports that we are looking at, can you give us several reasons why these projects cannot be completed within the budget that Congress has already provided? General Jackson. Generally speaking, as we work through the completion of these reports, over time we found in some cases differing site conditions that we had to address. In other cases we had cost increases that were not foreseen at the time when these reports were initiated. As always it is to make sure that the report that we deliver and have to update from time to time is technically and policy compliant. That is what we have attempted to do with these particular reports. Mr. Gibbs. OK. Now, the deadline to submit to get into this bill hopefully is Monday, September 19, and I know that the annual report process is in February. Your testimony was that the Corps posted on their Web site a Webinar on August 17 to inform the non-Federal sponsors of submission requirements. How else has the Corps provided assistance to non-Federal project sponsors prior to submission, knowing about the deadline coming up? General Jackson. Sir, we have done a number of things. We have, again, used social media to the extent that was can to get the word out about what this process is and how sponsors or potential project sponsors can take advantage of this. We have certainly blanketed and done extensive training within our own organization to make sure that at the district level where we have the greatest outreach, they are able to have that face-to-face contact through townhall meetings and other relational opportunities to get the word out on what we are trying to accomplish. And I will go so far as to say I even did a personal YouTube video to encourage folks to take advantage of this opportunity, which I hope you will never look at, but we went to that extent to try to get the word out so we could get as many opportunities as we could as a result of this process. Mr. Gibbs. That is great to hear because for our process that we set up in WRRDA 2014, for it to work, to function right, the non-Federal project sponsors need to know how the mechanism works. So I am glad to hear that we moved forward on that. On the Houston Ship Channel that addressed navigation safety and what we call the Bayport Flare, which I know you are aware of, why does the Corps no longer use the bend easing authority contained in U.S. Code 562 for carrying out that type of activity? General Jackson. Sir, I am going to have to ask if I can get back to you on that. Mr. Gibbs. OK. General Jackson. That is a technical question I am not prepared to answer. Mr. Gibbs. OK. General Jackson. I will say this though, that we are working very hard with the administration to get this report cleared. I was personally at the Port of Houston 2 weeks ago to make sure that I understood the significance. The Port of Houston Authority was very kind in laying all of this out, not only the Post-Authorization Change Report that we are trying to get to address this one issue, but also the channel extension project that we are in the midst of working through right now where we are trying to schedule Civil Works Review Board by the end of the calendar year. Mr. Gibbs. Can you give us any more details on the Puget Sound Chief's Report that we expect is probably coming in the next couple of days for what this project would do? General Jackson. Yes, sir, I am glad to do that. This particular project is an aquatic ecosystem restoration project. It is a part of the EPA's Ecosystems of National Significance. So it is a very significant effort on a national basis. We have had significant participation at the Federal and State level. We started out with about 35 different potential project features, and we have worked that down to the four that we have in the report, which will be the Duckabush River Estuary, the Nooksack River Delta, and two parts of the North Fork Skagit River. The cost information that we are looking at right now is about a $450 million project that is 65 percent Federal, 35 percent non-Federal. We have had wholesale support by about 15 different Federal agencies in developing this, so I am very excited about the way it was formulated and looking forward to getting this signed by the Chief. Mr. Gibbs. And back to my first question. Was there any significant opposition or concerns about this project? General Jackson. No, sir, none that I am aware of. Mr. Gibbs. All right. Thank you very much. Mrs. Napolitano. Mrs. Napolitano. Well, thank you very much, Mr. Chairman. I was starting to say that we have been working with you for a short-term deviation for the current water control plan for a specific area, Whittier Narrows, in my area, augmenting the critical water shortage. I thank the Corps for their efforts in that regard, but we are still in a drought. According to the latest map, we are heavily in drought and must continue to address it. Thank you to Chairman Shuster there is language in the committee approved Water Resources Development Act to benefit L.A. County drainage area, and I encourage the Corps to make more frequent and timely reviews and revisions of existing water control manuals in drought prone areas. We certainly are and most of California is in that same position. I look forward to the enactment of the language before the end of this session. However, I expect that Los Angeles will need to make another attempt for a short deviation during the 2016-2017 winter storm to capture as much water as we can. And I would like to know if you can commit towards working to approving a second season deviation for that area, especially Whittier Narrows, to help prepare for what looks like another seasonal crippling drought for the Southwest. It would help tremendously, and of course, we are still looking at dredging to be able to prepare the dams for capturing more water. General Jackson. We will certainly commit to doing that. We are certainly committed to addressing the drought through whatever means that we have, and working the short-term deviations and the long-term reservoir fixes that we are in the process of working through across southern California. Mrs. Napolitano. Well, I thank you very much, sir. And, Mr. Chairman, I am certain that Mr. Larsen's request for the Puget Sound is going to be well received since it has already received quite a bit of support from his area. And I yield back. Mr. Gibbs. Just for a point of clarification, I think I misspoke when I talked about the September 19 Monday deadline. That is for going into the February 2017 annual report, not WRDA. I just wanted to clarify that when I spoke. Mr. Webster. Mr. Webster. Thank you, Mr. Chairman, for having this hearing. And I want to take my time just to thank General Jackson for presenting the Post-Authorization Change Report for the Picayune Strand restoration project authorized in 2007 and redesigned post Hurricane Katrina. The project will restore 55,000 acres of former residential unit in southwest Florida. The completed project will deliver restoration benefits to 170,000 acres in Western Everglades, including downstream the Ten Thousand Islands Estuary and neighboring preserves, which will reap the benefits of the restoration with natural sheet flow. In addition, the project will enhance the protection recovery of the iconic, though sometimes imperiled, Florida species, including the Florida panther, the wood stork and the Florida manatee. Inclusion in this change report and WRDA 2016 will be a significant milestone for the Western Everglades. I am grateful for Army Corps and for the South Florida Water Management District for their substantial investment in resources to date and ongoing commitment to completing this component of the comprehensive Everglades restoration plan. Thank you very much. I yield back. Mr. Gibbs. Thank you. Mr. Larsen. Mr. Larsen. Thank you, Mr. Chairman, and I thank you and the subcommittee for allowing me to sit in since I am on the full committee but not on the subcommittee. I want to say thanks. I want to thank General Jackson and the Army Corps team for your work as well, the local folks on the Puget Sound Nearshore Ecosystem Restoration Project, and our Washington Department of Fish and Wildlife, as well those who worked with you on this, for their work on the study. This is going to be one of the largest habitat restoration efforts in the U.S. It is integral to our own State's Puget Sound Action Agenda, which includes recovery and protection of several fish and mammal species and the fulfillment of tribal treaty rights. As Congress continues to work towards WRDA, I am encouraged by the progress being made on this particular report and pleased to see the report recommends construction authorization for the three tier 1 projects. You mentioned four, but you split the North Fork Skagit into two: so the Duckabush River Estuary, the Nooksack River Delta, and North Fork Skagit River Delta. Together these projects improve title exchanges, restore freshwater tidelands, improve sound restoration activities, among other things. I just would ask that given the importance as well of tier 2 projects at the overall restoration, I strongly support the inclusion of the tier 2 projects as well in the final Chief's Report, along with these tier 1 projects. But I do want to, if I could, ask unanimous consent to include my full statement for the record, which also includes, Mr. Chairman, a letter I signed along with the Members of the Washington State Delegation who have districts abutting the Puget Sound, representing our complete support for this Chief's Report. Mr. Gibbs. So ordered. Mr. Larsen. And in closing, I would like to reiterate the importance of this restoration project to the entire Puget Sound region and look forward to the Army Corps. So with that, before I yield back, I have a couple more minutes and I will not take long. I have just one question for General Jackson. Could you clarify the timeline for the Chief's signature on this? General Jackson. Yes, Congressman. We have provided the Chief the report for him to review. He is out of the country. He is on his way back. He will be back late tonight. We are going to sit down and review it with him tomorrow and make sure he does not have any questions. He could sign it as early as sometime tomorrow. Depending on how he wants to synthesize the information, it may take a few days, but we are going to press him to get it done as soon as possible. He is committed to doing that. Mr. Larsen. Where is he? And does he have Skype? General Jackson. I think he is over the Atlantic right now, sir. So unless he is logged into the Gogo in flight, I am not sure if I can get him. Mr. Larsen. All right. General Jackson. But we will hit him as soon as he lands. Mr. Larsen. Well, you understand my urgency. I appreciate it. Thank you so much. And I yield back. Mr. Gibbs. Dr. Babin. Dr. Babin. Yes, sir. Thank you, Mr. Chairman, and thank you for being here, General Jackson. I offer my thanks to the Corps for completing the section 902 report for the Houston Ship Channel project, which I represent there at Houston Ship Channel. I understand that the purpose is essentially to update the calculated cost of the project, which was completed in 2005, and that this report reflects a project cost at the same level as the Corps reported in its original Chief's Report from 1996, which was $508 million; is this correct? General Jackson. Yes, sir. The cost that I am showing is a total cost of $508 million. Dr. Babin. OK. Thank you. Can you provide assurances that the Corps will do everything possible to assure the report is released by this administration for full consideration by the Congress? General Jackson. Congressman, I commit to that. I do. Dr. Babin. All right. Thank you. Then I know you just mentioned in the hearing today that you had recently visited the Port of Houston to see firsthand all of the exciting navigation work that is going on there and being accomplished by the Corps and the Port Authority. I understand that there is some confusion regarding Corps policies and appropriate sites for oyster mitigation, which is a very important issue for Galveston Bay and the people of Texas. Can you assure me that the Corps will fully communicate with the sponsor about the basis for its draft decision to abandon the State and Federal preferred oyster reef location and resolve this issue so that the pending environmental restoration contracts will be as successful as the original mitigation projects? General Jackson. Sir, I commit to that. That was an issue that was raised when I was at the port. We committed to work with the sponsor to try to work through the confusion and the concern so that we can get a project that meets all of the NEPA compliance requirements in the best interest of all parties. So we will continue to work that. Dr. Babin. Well, that is a very important industry for us there in the seafood and oysters. So we certainly hope it is as successful as the last one. And finally, as you may know, the Limited Reevaluation Report, LRR, for the Sabine-Neches Waterway is due at the end of this month, and I am hopeful and confident that this report will reflect the military and economic importance of this waterway. I grew up on this waterway as a matter of fact, which has a direct link to two strategic seaports, Beaumont and Port Arthur, Texas. Can you speak briefly to the importance of strategic seaports not only in my area, but across the country and how you weigh their importance when performing evaluations, such as an LRR? General Jackson. Well, certainly, sir. When we take a look at all of the economic and environmental work that we do to evaluate the importance of every project, we factor in national security, force projection, and all the things that the ports do to provide for the national defense. That is all part of the calculus that goes into assessing what the benefit-cost ratios are for projects of this type. Then, as you take a look at those benefit-cost ratios, that pretty much lays out the strategic importance of any particular project across the Nation. That is how we evaluate it in our reports, and then the administration prioritizes them for their funding purposes once we get these projects authorized. So we are working hard to do that. Dr. Babin. Excellent. Thank you very much, General. And I yield back the balance of my time, Mr. Chairman. Mr. Gibbs. Mr. Garamendi. Mr. Garamendi. Thank you, Mr. Chairman. And, General, thank you so much for your work and the Corps' work both in terms of the ongoing projects as well as the emergency situations that all of us face and you handle so very well. A couple of things. Mr. Chairman, there is a longstanding project that has been underway. It is authorized. It is the Hamilton City project in California. It is really the first of its kind in which the environmental organizations and the Nature Conservancy are working with the Corps and the local community to establish both habitat restoration as well as flood control. Construction is ongoing. It is an authorized project. Construction is going on as we speak. However, a couple of bumps, well, let's say pipelines and property have perhaps put this project in jeopardy, and what I would like to do is set up a situation here where if and when the Corps presents its Post- Authorization Cost Report, it can be included in the WRDA bill, which may pass the House next week and get out of Congress in the lame duck session. So I am trying to set things up here so that we can do not an air drop, but a modification. So, General, is it the case that the Sacramento District is actually in the process now of looking at the 209 limits as it pertains to the cost of land that was actually donated, but has significantly increased because of the inflation in the area and also the discovery of the gas pipeline and how to deal with it? General Jackson. Yes, sir, I think you are absolutely right. When we did our last certified cost estimate on this particular project in 2014, it revealed some cost growth along the lines of what you described. Unforeseen site conditions which had an impact on the current contract that required modification, and then also the increase in the real estate cost. So what we are doing now is doing the 902 revision. The calculations and the certified cost is due in December of 2016. What the staff is telling me is that once we get that, if the costs that have been estimated are going to exceed the 902 limit, then we are going to work with the sponsor to try to descope so they can stay below the 902 and continue to move forward. If it does not, then they will just continue to move forward. It is more of a precautionary measure to make sure we do not run out of authorization limit on this project so we can continue to move forward, given some of the bumps that we have encountered. Mr. Garamendi. Just a couple of things here that I think we need to understand. The land cost is actually land that was purchased some 10 years ago by the Nature Conservancy. It is donated. The cost issue is a result of the inflation that has occurred in that intervening time. There is no additional cost to the Federal Government here. It is already land that has been donated for the purposes of habitat restoration. But the rules are the rules, and I guess the new cost, inflated cost, is included, and that may drive up over the authorized cost. The pipeline, as I said earlier, was recently discovered. It may be that it will have to be relocated, or it may be able to stay in place and protected in place. We will see what happens. You did say something a moment ago that is troublesome, and you said December 1. That does not or may not coincide with the work that needs to be done in a conference report to WRDA, and so I am asking if you might be able to get it done quicker, like maybe early October. Is that possible? General Jackson. Congressman, I will have to get back to you on that because I cannot commit to that without knowing what is left to be done on that particular report. But if you would allow me to do two things, one is to come back to you with a detailed accounting of how we got to where we are and to clarify what we are actually verifying, and then, two, give you some options on what we think the future holds. And we will try to get that done really quickly so we can make some good, informed decisions on how to go forward. Mr. Garamendi. I think I heard you say you are going to ask the Sacramento District Office how quickly they can get it done. Is that what I heard you say? General Jackson. Congressman, what I said was I need to understand what they have left to do on it. Mr. Garamendi. Well, then let me ask you to ask them how quickly they can get it done. If we can meet our own deadline here, I think we can drop this in, and I will let it go at that. But I am looking for a placeholder here, Mr. Chairman. Mr. Gibbs. Mr. Bost. Mr. Bost. Thank you, Mr. Chairman. General, the last time the Corps testified before this committee, I requested the Corps respond to a request for them to examine the deep flaws in the agency's environmental impact statement whenever they put it together for the next NGA West Campus, and I still have not received that and any information on that inquiry. Let me kind of explain what all was involved with that and why that is important. The Corps EIS was used by the agency to determine where to locate the NGA West. The EIS misidentified in that report St. Clair County, Illinois, by going with St. Clair County, Missouri, along with St. Clair County, Michigan. In that study they wanted to bring up the environmental impact for the Osage River, which is in Missouri, not in Illinois. That was then used in making the determination. Now, let me tell you that the Secretary said that it was not the only thing used in making the determination, but in the St. Clair County, Illinois, the county owned and controlled the land that they were offering and were going to give it to the Federal Government for free. The St. Louis site that they did look over is an already developed urban area, and it required imminent domain of 42 properties, land acquisition movements, and also the removing of historical structures. It also has some environmental impacts that we know exist from the Cold War days, and that is not even digging into the ground yet to figure that out. This site, then the Corps EIS claimed it would be cheaper on the St. Louis site than the St. Clair County site. This makes no sense to me whatsoever, and that is why I asked for the report, and it has been quite some time to try to figure out exactly what was done here and why. Everything I have done with the Corps since being elected has been fairly good. I mean, it really has, and believe me, I deal with you a lot because, lucky me, I have three navigable waterways in the Illinois 12 and so from that side and other projects. But this one has really got me concerned because for a professional agency to come forward with a report like that, and of all things, the agency that they were getting the study for is geo mapping, but they cannot figure out what county or where their county is located that they need to be looking at. So that is why I really need if you could to get that report to me and find out why. General Jackson. Well, Congressman, thank you very much for that, and I remember very well the conversation we had when I testified last to the committee on the 17th. We received a letter from your staff shortly thereafter, maybe within a couple of days, asking for an engineering inspector general investigation into that. I am told as of yesterday it is done and they are working to schedule an out-brief to you that will lay out all of the details of the investigation and answer the questions that you posed. So I want to let you know that that is coming to you shortly. Mr. Bost. Thank you. General Jackson. If it can be scheduled, that will probably answer all of the questions. As an agency leader, we are always looking to do the right thing. We are always looking to be technically proficient in everything that we do. I do acknowledge that as we have done our own investigative work, there were errors made in the draft EIS that we put together, and we acknowledge also that the EIS was a part of the decision calculus that NGA has used to make final decisions. But I will leave the details that you have asked for to the EIG update, and I will be glad to follow up with you on any questions that you might have that the update does not answer, sir. Mr. Bost. OK. I look forward to that meeting. Thank you very much. Mr. Gibbs. They called votes. We have 11 minutes to go yet. We are going to go to Ms. Frankel, and when she finishes her questions the hearing is adjourned. Go ahead. Ms. Frankel. OK. Thank you, Mr. Chair. I thank you to the Army Corps, General Jackson, for your work. Just three quick things. I want to echo Mr. Webster and say thank you, thank you so much on the course modification on the Picayune Strand, the Central Everglades restoration projects. All of those restoration projects are very, very important to Florida. So thank you for that. I wanted to remind everybody that we have this archaic law that does not allow us to buy sand from the Bahamas, and we are running out of sand in Florida, and I do not understand why we have that in the law. So I persist in saying that we have really got to do something about that. And the third thing, which is very serious, and I brought this up with you last time, General Jackson, and, Mr. Chair, I really hope that maybe this committee could work with some of the other pertinent committees on this issue, which is the cost analysis that is used in evaluating these projects. And I want to use an example, Port Everglades, which after 18 years finally we got the Chief's Report. Thank you for that. It was a lot of hard work, and I sat in the final review and I saw how many different people and committees, whatever, had to go through, and in that review I sat in there for hours and hours, and now I understand why almost it takes so long. Eighteen years was a little long. Now we are learning that the Office of Management and Budget uses a completely different formula in terms of evaluating the benefit-cost analysis, and that could actually prevent the project from going forward. I would guess, although I have not looked at every single project, that this might be something that is a problem with other projects, too. So my concern is not only that we might get our project stalled again, but my concern is this. Army Corps working on getting a Chief's Report for many, many years, with a lot of people, and it is costing millions of dollars, and you are using a different cost analysis than the Office of Management and Budget, and that just does not make any sense to me. Because in a sense, they can say, ``All right. All of your 18 years of work,'' and now it is going to be three under the new law, ``is for naught.'' Have you given any thought to how we can try to resolve that situation? General Jackson. Ma'am, I will tell you that we struggle with this. What is authorized in law for addressing a problem is a 1.0 BCR based on the current discount rate, and that changes very slightly over time. The budget-ability rate is different, as you described. It is based upon a 7-percent discount rate, which has a serious impact on BCR. We have had discussions with OMB leadership about what other ways could we calculate investment decisions outside of the BCR, and so we are working with the administration to try to figure out what that might be. And certainly this current administration and senior leadership is open to that if we can come up with something we can all live with. If there are any good ideas that Congress has that can help us, we are all ears. We would like to be able to make it make more sense, but we also realize that the administration has tough budget decisions to make, as you do, and has to set some type of criteria to separate projects into what can and cannot be budgeted. I cannot speak for them, but we will certainly say we are working on this to the extent that we can at the levels that we are. Ms. Frankel. All right. If I can make an analogy, it is almost like sending someone out to run the marathon, and then all of a sudden somebody hides the finish line from them. And they have done all of this running and now somebody else moves the finish line. Mr. Chair, I really again would just like to request that this committee take a look at this issue and maybe reach out to I do not know whether it would be the Budget Committee or what committee in the Congress that would also have jurisdiction. Do we know what it would be? Probably the Budget Committee, because this just does not make any sense to put the Army Corps and the communities through all of this work and effort and then all of a sudden have a whole different analysis of the cost. And with that, I yield back. Thank you. Mr. Gibbs. I think the administration has some input in that, too. We have 6 minutes to go over and vote, and thank you, General Jackson for being here today, and this adjourns our hearing. General Jackson. Thank you, Mr. Chairman. [Whereupon, at 10:17 a.m., the subcommittee was adjourned.] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [all]