NOR'WESTER NEWSLETTER                                                          Issue 311, October 6, 2008
 masthead 

In This Issue:
Stopgap speding bill enacted
Port security grant program funded
Another "Miracle at Chinook"
Corps Principles and Guidelines revision concerns PNWA
PNWA Annual Meeting to be a great success
2009 PNWA Regional Meeting locations and dates announced
Stopgap spending bill enacted
 
Congress has enacted a stopgap spending bill to temporarily fund most federal agencies, including the U.S. Army Corps of Engineers, until March 2009.  The "Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009" (P.L. 110-329) is a continuing resolution that maintains government operations, programs and services through March 6, 2009, at the rate provided in the regular FY2008 appropriations bills.
                  
PNWA has contacted the Seattle, Walla Walla, and Portland Districts of the Corps of Engineers to determine whether any Northwest navigation projects will suffer adverse effects due to the temporary funding stream.  Senior civilians at all three districts confirmed that there should be no effect on projects of interest to PNWA's membership.  In particular, dredging and other projects are slated to continue normally.  These types of projects, which usually require a lengthy contracting period, have been jeopardized in the past when Congress has only provided temporary funding measures of a few weeks.  The length of the current funding package will allow the Corps to budget and spend on a more normal basis.
 
PNWA Staff Contact: Kristin Meira   
 
Port security grant program funded
 
In the Homeland Security sections of P.L. 110-329, Congress provided $400 million for port security grants in 2009. This is the level PNWA and other navigation interests have requested. The President originally requested only $210 million. The President recently signed this bill into law, so application details for this year's grant program are not yet available. This year, FEMA will allocate grant funds to the various Coast Guard Sectors around the nation. The local Area Maritime Security Committees (AMSCs) will then allocate sector funds to specific ports. Glenn Vanselow, PNWA Executive Director, is a member of the AMSC Columbia River.
 
The Ports of Seattle and Tacoma will continue as Tier I ports, which gives them priority for funding. Portland, Vancouver, Kalama and Longview have been defined as Tier II ports in past years and will continue in this Group. This year, at the request of Capt. Fred Myer, Captain of the Port for U.S. Coast Guard Portland Sector, it appears that several other Columbia and Snake River ports will be included in the definition of Tier II ports. This list has not been formally adopted as yet, but PNWA expects that the new Tier II ports will be Astoria, Benton, Clarkston, Hood River, Ilwaco, Kennewick, Lewiston, Pasco, St. Helens, The Dalles, Umatilla, Walla Walla and Whitman County. Other ports on the Columbia and Snake Rivers and the Oregon and Washington coastal ports will be in Tier IV. Tier IV ports are eligible for funding, but there will likely be less funding and more competition at this level.
 
This is a step forward in accomplishing PNWA's policy goal to increase funding priority for all Northwest ports handling cargo or serving passenger vessels. PNWA thanks Capt. Myer and his staff at Sector Portland for initiating this change. 
 
PNWA Staff Contact: Glenn Vanselow
Another "Miracle at Chinook"
 
The Port of Chinook received tremendous news last week, learning that an additional $1.5 million will be provided for dredging the significant sedimentation that had accumulated in the federal navigation channel after last winter's storms.  Shoaling was making it difficult to navigate the channel, and mariners were forced to only use the channel when the tides were favorable.  Port officials were trying to avoid a situation that would have diverted fishermen - and jobs - away from the Chinook marina, a critical part of the local economy.
 
Port Manager Dan Todd noted that "we are so grateful for all the hard work of Senator Murray, Congressman Baird, the Corps of Engineers, and PNWA for making this channel maintenance project a reality."
 
The Corps of Engineers had only received $229,000 for FY2008 to perform maintenance dredging for the federal channel that serves the port.  This number was far short of the amount needed to clear shoaling in the channel, especially after the severe storms in late 2007.
 
U.S. Sen. Patty Murray and U.S. Rep. Brian Baird stepped in, conveying their concerns directly to Corps leaders in Washington, DC.  A contract dredge from Manson Construction was already prepared to remove sediment from the federal channel at Ilwaco.  This provided the perfect opportunity to also address sediment in Chinook's channel - if emergency funding could be found.  The additional $1.5 million for Chinook's federal channel was included in the recently completed FY2008 emergency supplemental spending package.
 
"The channel at the Port of Chinook has reached a crisis point, and port officials were afraid they wouldn't be able to stay open.  We made it clear to the Corps that we needed to take action - and we needed to take action now," Senator Murray said.  "With the additional money - and by using a dredge that is already in the area - we can save on mobilization costs and keep the channel open for the crabbers and fishermen who call the Port of Chinook home.  I'm glad we were able to convince the Corps that fully dredging the Port of Chinook is essential to preserve jobs and keep the local economy going."
 
"The Port of Chinook pumps millions of dollars into the Pacific County economy every year, and the Corps' original plan for cleaning it up was simply unacceptable," Congressman Baird said.  "For months, Senator Murray and I simply refused to take no for answer, and we pushed for a solution like this.  Getting this money was literally a matter of survival for the fishing industry in the port.  It will not only benefit the people who live and work there, but all of Southwest Washington.  Senator Murray and I were committed to doing everything possible get this dredging project in motion and thankfully our hard work paid off in the end."
 
Port of Chinook officials note that local businesses handled over 3.5 million pounds of crab in 2007, with an estimated market value in excess of $8.5 million.  In addition, over 180,000 pounds of other seafood products are processed at the port, worth over $500,000.  About 350 jobs are associated with businesses that rely on the Port of Chinook, with more than fifteen port-dependent businesses.
 
Maintenance dredging on the federal channel should commence early next week, and will last between sixty and ninety days.  The shoaling in the channel is expected to be fully addressed, with roughly 240,000 cubic yards of sediment removed.  Barring any adverse weather events, the channel should remain clear and not need any additional dredging for five to six years.
 
PNWA would like to thank Senator Murray and Congressman Baird for their dedication to solving this funding issue.
 
PNWA Staff Contact: Kristin Meira
Corps Principles and Guidelines revision concerns PNWA
 
The Water Resources Development Act of 2007 directs the Army Corps of Engineers to revise the economic and environmental principles and guidelines it uses in water resources planning. These are the guidelines by which Corps projects are evaluated for potential authorization and funding. The Corps is seeking comment on a set of draft principles, stating that it will seek separate comment on guidelines for implementing the principles at a later date. PNWA has serious concerns about the direction of the draft principles and the public comment process.
 
Comment process is flawed. Procedurally, PNWA believes that presenting the principles without the guidelines defining how the principles will be implemented does not provide a fair opportunity to comment. The public is being asked, in essence, to comment on the terms of a contract without knowing how the terms are defined. PNWA will submit comments on this draft, but we will do so with objection. The principles must be open for comment and possible revision when the accompanying guidelines are available for review.
 
Changing the benefit-cost ratio. The draft raises the threshold of benefits for acceptable navigation and hydropower projects. The long-standing practice of determining that a project may be in the national interest if its benefits are equal to or greater than its costs (a 1:1 Benefit-Cost Ratio) is arbitrarily discarded. Instead, the benefit-cost ratio must be 1.5:1 to be considered "minimally acceptable".
 
This change in policy is unacceptable. It may be viewed by the Administration as a way to reduce the number of projects it is expected to fund. It would certainly do that. However, this change is contrary to several other national policies and goals. For navigation, it would discourage investment in the least cost, most fuel efficient and least polluting transportation mode (U.S. Maritime Administration/Texas Transportation Institute, A Modal Comparison of Domestic Freight Transportation Effects on the General Public, 2008). It would increase fuel consumption, air pollution and congestion by shifting cargo from water to rail and truck. For hydropower, it would discourage investment in the nation's most prevalent form of renewable energy. Hydropower produces energy without consuming fuel, without any air pollution, and without producing greenhouse gasses or contributing to climate change.
 
Peer review and other concerns. PNWA commented on an earlier draft. Our comments are available at the following Corps website and are presented in summary fashion below. http://www.usace.army.mil/cw/hot_topics/ht_2008/4Jun2008_PacificNorthwestWaterwaysAssociation.pdf.
PNWA agrees with the concept of peer review, but we have serious concerns about how the Corps intends to implement peer review. Peer review should only be included for projects that meet the criteria established by Congress. Peer review also needs to be limited so that projects do not result in an endless set of iterations between the Corps and peer reviewers.
 
The development of alternative plans is appropriate, but they should be limited to actions for which some federal or non-federal entity has authority.
 
Nonstructural alternatives are given preference in the draft principles. Such alternatives need to be analyzed for any potential negative economic consequences they may generate resulting from decreasing economic activity or diminution of authorized purposes.
 
Plan selection criteria and net beneficial effects rules need to include a broader set of benefits, including regional economic development, tourism, commercial fish landings and Endangered Species Act contributions in calculating project benefits. On the Columbia-Snake River System, navigation provides major ESA benefits as fish transportation is an integral part of the actions required under the Biological Opinion. These ESA benefits need to be added to the economic benefits when prioritizing funding for navigation projects.
 
The draft principles are available at http://www.usace.army.mil/cw/hot_topics/ht_2008/pandg_rev.htm. Comments may be emailed to larry.j.prather@usace.army.mil and are due by October 15.

PNWA Staff Contact: Glenn Vanselow
PNWA's Annual Meeting to be a great success
 
Don't miss your chance to attend  - there is still one week left to register!  Our Annual Meeting will give you the opportunity to share your ideas and input as the Pacific Northwest trade and economic development community works to move forward together.  This is a unique meeting, with something to offer every PNWA member - you won't want to miss out!  Visit our website, www.pnwa.net to register today! 
 
PNWA Annual Meeting - October 15-17, 2008
The Governor Hotel
614 SW 11th Avenue
Portland, Oregon 97205
1-800-554-3456
www.govhotel.com
 
Highlights of the 2008 Annual Meeting include: 
  • Introductions to the new Corps leadership: BG William Rapp, Northwestern Division; Col. Steve Miles, Portland District; Col. Anthony Wright, Seattle District; Lt. Col. Michael Farrell, Walla Walla District
  • Pollster Tim Hibbitts' perspective on the upcoming federal election
  • Recent changes in the nature of transpacific container trade, and how this will affect the Northwest
  • Learn about the recent trends in international markets for Northwest grain
  • Hear from your fellow PNWA members on how to maximize your regulatory partnerships
  • Meet the newest PNWA members and hear about the opportunities they can offer
  • Get the latest news on the MCR Jetty Rehab Report
  • Hear the results of the recent trade study done by Portland State University and the Oregon Economic and Community Development Department
  • Learn how trade can create opportunities for your small and medium sized organizations
  • Hear the latest status report on the Columbia River Crossing project
  • Amy Larson, President of the National Waterways Conference, will provide the latest news from Washington, DC  
  • Get the latest information on the Columbia Basin Fish Accords from Charles Hudson, Public Affairs Director for the Columbia River Inter-Tribal Fish Commission
  • Elect PNWA leadership and set policy goals for 2009
  • AND MUCH MORE!  

PNWA Staff Contact: Heather Kenneson

2009 PNWA Regional Meeting locations and dates announced
 
PNWA Regional Meetings are free to all members and are a great way to update staff on your latest projects and issues. Your attendance helps to further prepare our 2009 priority agenda and allows us to meet as a group one more time before our annual Mission to Washington, DC. Please note that you do not need to register for the Mission to Washington to attend the Regional Meetings.  Online registration will be available for these meetings, as well as for the Mission to Washington, on December 1, 2008.
 
Puget Sound Regional Meeting
Tuesday, February 10, 2009
11:30am-2:00pm
Moffatt & Nichol
One Union Square
600 University Street, Suite 610
Seattle, WA 98101
 
Tri-Cities Regional Meeting
Thursday, February 12, 2009
11:30am-2:00pm
Port of Benton
Conference Room
3100 George Washington Way
Richland , WA 99354 
 
Portland/Vancouver Regional Meeting
Friday, February 13, 2009
12:00pm-3:00pm
Port of Portland
Commission Room
121 NW Everett Street
Portland , OR 97209-4049
 
PNWA Staff Contact:  Heather Kenneson
THANK YOU TO OUR CURRENT 2008 ANNUAL MEETING SPONSORS!
Port of Portland
 
 Ball Janik           Shaver
CH2M Hill          Bradwood Landing
 
Foss          Port of Umatilla
 
 Port of Lewiston           PNGC
 
 Ball Janik       Schwabe Logo
 
 Port of Whitman County