US Army Corps of Engineers

BUILDING STRONG®

Texas Water Conservation AssociationFall 2012 Conference

Brigadier General Thomas W. KulaSouthwestern DivisionU.S. Army Corps of Engineers 26 October 2012

Transforming the Corps of Engineers’ Civil Works Program

BUILDING STRONG®

Southwestern Division Footprint

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Moonshine Beach, Table Rock Lake, Mo.

Regulators examine soils on a wetland delineation

field visit.

Dallas Floodway

Bull Shoals Powerhouse, Arkansas

Houston Ship Channel

Sardis Dam, Oklahoma

Navigation (Ports and Channels)• 4 of the Nation’s “Top Ten” ports• 32 channels (15 deep draft, 17 shallow draft) • More than 500 M tons of commerce annually

Navigation (Inland)2 major waterways (GIWW and MKARNS)

Hydroelectric Power• 18 power plants in 6 states produce 6.7 billion kw hours• 87% of regional capacity, second in the Corps

Water Supply• 8.4 million acre-feet of

water storage• Water control contracts =

water for 1.8 million households

Regulatory (work in waters & wetlands)

• Over 5000 permit decisions annually

• Protection of waters & wetlands

Recreation• 20 percent of the Corps'

total recreation projects located within the regional boundary• 83 million visitors at 90

operating projects located in five states

Flood Damage Reduction

• 74 flood damage reduction

lakes/reservoirs• 33.22M acre-feet

of flood storage• 760 miles of local

flood protection projects

• $85 B in cumulative flood

damage prevention

Little Rock District's MV Ted Cook positions the Crane Barge Mike Hendricks at Dam 2 during the

flood of 2011

SWD Civil Works Mission Areas

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BUILDING STRONG®

Brigadier General Thomas W. Kula

SWD Commander SWD Deputy Commander Mr. Robert Slockbower,

SESDirector of Programs

Mr. Pete PerezActing Director, Regional

Business

Colonel Charles H. KlingeFort Worth District Commander

Colonel Christopher SalleseGalveston District Commander

Colonel Glen A. MassetLittle Rock District Commander

Colonel Michael TeagueTulsa District Commander

Colonel Richard J. Muraski

Southwestern DivisionLeadership Team

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Our Nation’s Infrastructure GPA -- D

Roads

Runways

Railways

Rivers

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The USACE Program

'01 '02 '03 '04 '05 '06 '07 '08 '09 10 11 12 13 14 15 160

10

20

30

40

50

60

10.4 10.714.9

17.821.5

23.8 22.427.0 29.0 29.9

23.827.7

18.4 18.2 16.3 14.2

8.3 8.2

8.1

8.1

9.2

19.1

9.7

20.7 17.2

8.3

7.8

9.6

7 6.66.6

6.6

Military Civil Works

18.7 18.9

23.0

25.9

30.7

42.9

32.1

47.746.2

38.2

31.6

37.3

25.4 24.822.9

20.8

( $ billions )

Fiscal Year

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Are We on the Way to Becoming an O&M-Only Organization?

1962

1966

1970

1974

1978

1982

1986

1990

1994

1998

2002

2006

2010

0

1000

2000

3000

4000

5000

6000

7000

8000

O&MConstrInvest

Appropriation ($million in 2012 $)

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USACE Backlog

Construction Funds (an-

nual)

USACE Backlog

$0

$20

$40

$60

$2 billion

$60 billion

Billions

*Hydropower projects less than 1 percent

Backlog Projects by Business Line

Environmental In-frastructure; 5%

Envi-ron-

mental; 20%

Navigation - Ports; 20%

Navigation - In-land; 5%

Flood Damage

Reduction; 35%

F-Shore Protec-tion; 10%

Environmental Infrastructure

Environmental

Navigation - Ports

Navigation - Inland

Flood Damage Reduction

F-Shore Protection

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Shaping Strategic Direction

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Civil Works Strategic Plan

• Integrated Water Resource

Management

• Systems-Based Approach

• Risk-Informed Decision Making

& Communication

• Collaboration & Partnering

• Asset Management/

Recapitalization

• State-of-the Art Technology

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Organizational ChangeDrivers for change . . .

Project/ Programs ► Meet Customer Commitments ► Declining Workload► Fiscal Constraints► CW and Mil Missions Transformation► O&M Focus- Moving more from “O” to “M”

Methods of Delivery► Regionally resourced ► More Efficient / Effective Ways of Doing our

Business

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Win in the Turns• Win in the turns - Invest in

our infrastructure• New starts - Think future

water resources direction• Use systems-based and

watershed approach• Find ways to finance the

Nation's infrastructure• Become the Nation’s water

resource solutioneer

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Methods of

DeliveryBudget Development

Infrastructure Strategy

Planning

Major CW Transformation Initiatives

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Short Term Wins . . .

Successes: Reset on water supply

► Funding to levels of performance Levels of Service on MKARNS

► Optimize maintenance for increased reliability SWL Recreation Adjustment Restructuring of Contracting (SWF/SWG) Successful CWRB for Freeport Established New Business Line Mil Missions (facility

assessment) Tri-State Water Partnerships

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Sabine-Neches Waterway (4)

Houston Ship Channel (2)-Barbour’s Terminal Channel-Bayport Ship ChannelTexas City Ship Channel (10)Galveston Harbor (41)

FreeportHarbor (27)

Matagorda Ship Channel (54)

Corpus Christi Ship Channel (6)-La Quinta Channel

Brazos Island Harbor- BIH (78) -Port Isabel Ch. & Turn. Basin

(#) SWG Port Rankings vs. Nation

Constructed (3)

Pending Authorization (2)

LNG Facilities

GIWW

GIWW

GIWW

Home to 28 Ports Handling over 500 million tons

of commerce Eight (8) Deep Draft Channels 275 Miles of Deep Draft Channels Total of 749 Miles of Shallow Draft Channels GIWW runs 440 miles connecting the state’s 12-deep water ports, 16 shallow draft ports Dredging Activities from 30 to 40 million cubic yards of material annually

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Coastal Texas Ecosystem Protection & Restorationo Texas coast at significant risk of damages to

public safety, property, and ecological resources from storms, sea level rise and other coastal hazards.

• 18 counties home to 26% of state’s population

• 4 of Nation’s top 10 ports located in Texas

• Two-thirds of nation’s petrochemicals produced along the Texas coast

• 64% of Texas coast is eroding at average rate of 5.9 feet/year with some areas losing 30 feet/year

o Study integrates: programmatic plans for flood damage reduction; storm damage protection; ecosystem restoration; risk reduction measures for damages to public safety, property and environmental resources from storms and erosion

o Plan would provide: Basis for informed decision-making by the Federal government and non-Federal sponsors

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Water Supply in the Southwestern Division

The Corps is the single largest water supplier in the region:

►SWD reservoir projects currently contain 8.4 million acre-feet of storage for municipal, industrial and agricultural use.• 36% of the potable water for Texas• 35% of the potable water for Oklahoma• 20% of the potable water for Kansas

“Water, not oil, is the lifeblood of Texas...” – James Michener in Texas: A Novel

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BUILDING STRONG®

Water Supply ProgramSuccesses

Raised Water Supply to a higher level of attention within the Corps and ASA(CW)

Water Supply budget based on performance to streamline the funding process

Involve the States in establishing the Corps future strategies for infrastructure investment

Established a test program in Kansas for a Liaison Position for coordination between the Corps and Kansas Water Office

...Streamlining the 404 permitting process…

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Water Strategy

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TWDB / Corps Permitting Flowchart

• Goal: educate water resource providers on permitting process and identify ways to reduce the time needed for review/approval of water resource development projects

• Developed a multi-agency permit process flow chart – currently being reviewed by state and Federal Resource Agencies

• Next steps: Post the flow chart on TWDB hosted web site, develop and execute interagency training workshops

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What Can You Do?

• Tell the Story

• Help us transform the Civil Works process.

• Continue to partner with stakeholders, industry and

beneficiaries of the system

• Facilitate a Watershed approach

• Help the Nation prioritize efforts and projects.

BUILDING STRONG®

Questions?Connect With Us!

Facebook:www.facebook.com/swdusace

Twitter:www.twitter.com/usace_swd

Online: www.swd.usace.army.mil

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Planning ModernizationTop Four Performance Priorities

• Improve planning project delivery (investigations and CG) and instill accountability at all levels

• Develop a sustainable national & regional planning operational and organization model

• Improve planner knowledge and experience (build the bench)

• Modernize planning guidance and processes

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Budget Transformation• Establish a goal-oriented, program based

approach to budgeting• Vertical alignment and integration of

programs/BLs to National goals and objectives

• Institutionalize our CW Strategic Direction; move IWRM into our budget development framework

• Develop a budget framework that identifies relevant, important and smart decisions

• Improve justification & defense of budget allocations

End state: Sustainable and reliable water resources infrastructure

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Methods of Delivery • Relook our methods of delivery to be

more efficient, cost-effective & timely• Link technical capabilities to desired

levels of service• Integrate a Human Capital Plan to

maintain core competencies• Improve operation and management

of our water infrastructure-reduce enterprise risk

• Focus areas-Centers of Expertise (CXs):• Dam safety, inland navigation

design and deep draft navigation economics

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Infrastructure Strategy• Infrastructure Comprehensive Strategy: An integrated approach to

manage our assets, the life cycle of the system and seeking alternative financing: Asset Management: Comprehensive approach to asset

management Life cycle system: Ensure future systems’ viability through risk

assessment and management, funding prioritization and sound decision making

Alternative financing: Provide a safe and reliable infrastructure by looking into alternative financing options

CW decision making: Develop a decision framework and process that enables a cross-cutting systems approach, supported by user friendly decision tools (WISDM, Money Ball, etc.)

Strategic communication: A robust strategy with key messages to increase national attention to water infrastructure, its value to the nation, critical needs and sustainability of our systems

End state: A reliable and sustainable infrastructure FUTURE!!

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Maintenance Modernization Initiative

Leve

ls o

f Ser

vice

(P

erfo

rman

ce)

Levels of Maintenance (Costs)

“Compliance Zone”

“Service Life

Zone”

“Perfo

rmance

Zone”

• Optimize limited O&M dollars through an informed decision-making process

• Link desired levels of service with ongoing service activities and maintenance investments

• Significantly improve planning, budgeting, execution, performance and communication (stewardship) of our federal assets.

• Buy down backlog maintenance and reduce risk

• Remain reliable, relevant, and resilient

• Design & modernize SWD for the future! 26