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CORPS OF ENGINEERS—CIVIL WORKS
Since 2001, the Administration:
• Completed 64 civil works construction projects;
• Focused the Corps construction program on building projects with the highest
economic and environmental return;
• Helped protect the Nation’s environment by encouraging developers to avoid
development on 25,000 acres of wetlands; and
• Led efforts to prioritize resources for the completion of ongoing construction projects
before starting new ones.
The President’s Budget:
• Completes an additional 16 construction projects in 2007, with an average return of
$9.57 per dollar invested;
• Initiates a comprehensive inventory and risk assessment of the Nation’s flood and
storm damage reduction projects;
• Invests in maintenance of key locks and dams on the Nation’s busiest inland
waterways; and
• Supports improvements in the Corps emergency management program that build
upon lessons learned from Hurricane Katrina.

247

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CORPS OF ENGINEERS—CIVIL WORKS

FOCUSING ON THE NATION’S PRIORITIES
Katrina Response and Recovery: Emergency Management in Action
The 2007 Budget reflects the Administration’s robust support for the Corps emergency
management program and its ongoing contribution to the Gulf Coast recovery effort.
The Administration will continue to work
with the Congress to fund and complete vital
improvements to the New Orleans levee
system, which will help provide protection
for New Orleans that is better and stronger
than ever before. In addition to emergency
preparedness, response, and recovery work
performed under its own authority, the Corps
responds to national emergencies, such as
Planning for Emergencies Now Pays Off Later. The Budget supports
Hurricane Katrina, as part of the larger,
critical training and preparedness activities so the Corps can respond
Federal response team led by the Federal
quickly and effectively to emergencies, such as Hurricane Katrina.
Ensuring a rapid, effective, and efficient response to future events
Emergency Management Agency (FEMA).
requires budgeting for preparedness, response and recovery activities
As part of the coordinated Federal response
now.
to Hurricane Katrina in 2005, the Corps
mobilized over 2,500 of its employees to meet the critical needs of hurricane victims quickly and
effectively. A response of that magnitude is a major logistical challenge, and the Corps emergency
operations team met that challenge. As of January 2006, the Corps had:
• Delivered 232 million pounds of ice and 112 million gallons of drinking water to hurricane
victims;
• Removed 34 million cubic yards of debris from affected areas; and
• Placed 189 thousand temporary roofs for residents of damaged homes.
The Budget takes steps to improve upon the successes of both the Corps’ direct emergency response
program and its support to FEMA’s Federal response team, building upon several lessons learned
from the 2005 hurricane season. First, the Budget provides funding to improve the Corps’ overall
logistics capability so that its emergency operations teams will be prepared for a broader array of
post-disaster logistical challenges, including commodities distribution and tracking, and response
team mobilization and integration.
Second, the Budget continues the Administration’s policy of ensuring an effective response to future
emergencies through responsible funding and planning now. In recent years, the Corps has often not
received funding for emergency management in regular annual appropriations, and instead has had
to rely upon support from emergency transfers or supplemental funding. The 2007 Budget supports
a more proactive approach to emergency management by funding the Corps’ planning, preparedness,
response and recovery activities through the regular budget process.
Third, the Budget provides $20 million for three key efforts that will help ensure that Americans
can make more informed decisions on building homes, locating businesses, and purchasing flood
insurance based upon the actual risk of flood and storm damages where they live. The Corps will:
(1) inventory the Nation’s levees and other flood and storm damage reduction projects, including
those built or maintained by State, local, or private entities; (2) develop a risk assessment tool for

THE BUDGET FOR FISCAL YEAR 2007

249

evaluating the structural and operational integrity of these identified projects; and (3) create a national flood and storm project database that identifies project location, actual level of protection,
maintenance condition, and the parties responsible for project maintenance. The Corps will coordinate these efforts with FEMA’s Map Modernization Program to enhance the accuracy of that ongoing
floodplain mapping effort. This collaboration builds upon two Corps pilot projects now underway to
better integrate Federal and non-Federal floodplain management programs and policies.

Maintaining Key Inland Navigation Infrastructure

The Budget gives priority to the maintenance of infrastructure on the
Nation’s most important inland waterways.

The 2007 Budget increases funding to
properly maintain locks and dams on the
Nation’s three busiest inland waterways—the
Ohio River, the Mississippi River, and the
Illinois Waterway.
Since the 1960s, the
Federal Government has invested heavily in
the maintenance and rehabilitation of these
major transportation arteries, which support
substantial movements of agricultural products, energy-related materials, and other bulk
commodities and handle the vast majority
of all inland waterway traffic. The Corps is
giving priority to the continued maintenance
and rehabilitation of the locks and dams on
these key waterways.

For example, a series of rehabilitation projects at locks and dams 24 and 25 on the Upper
Mississippi River over the past 10 years has contributed to improved performance by reducing the
incidence of malfunctioning and breakdowns. These investments reduce the likelihood that barges
will encounter unexpected, protracted delays. The Corps periodically evaluates the condition of
all of the lock and dam sites on the Upper Mississippi River and the Illinois Waterway, and has
concluded that the existing locks can continue to process tows safely and reliably for the next 50
years or more, as long as we continue to invest prudently in their maintenance and rehabilitation.
The Budget furthers this objective by funding four rehabilitation projects and boosting spending for
maintenance.

Helping to Restore Nationally Significant Aquatic Ecosystems
The 2007 Budget includes a focus on the restoration of three important aquatic ecosystems: Coastal
Louisiana, the Upper Mississippi River, and Everglades/South Florida.
Coastal Louisiana. The wetlands of coastal Louisiana support many plant and animal species,
but are subject to continuing pressures as a result of human intervention and natural causes. The
1990 Coastal Wetlands Planning, Protection and Restoration Act took steps to address this ecological
challenge. The Administration seeks to build upon the 1990 Act by supporting generic authorizing
legislation to address the most critical ecological needs over the next 10 years, with the understanding that significant additional work will be needed in subsequent years. These wetlands also provide
a natural buffer that can lessen the impacts of some storms, and are in fact an important part of the
overall storm damage reduction system for coastal communities, such as New Orleans. The Budget
includes $25 million for studies, design work, and a science program to lay the groundwork for this
effort, a $4 million (19-percent) increase over the 2006 level of funding.

250

CORPS OF ENGINEERS—CIVIL WORKS

FOCUSING ON THE NATION’S PRIORITIES—Continued
Upper Mississippi River.
Through the
Upper Mississippi System Environmental
Management Program, the Corps is helping
to revitalize the side channels of the Upper
Mississippi, where habitat has been damaged
by the construction and operation of the
existing navigation system.
The Budget
includes the funding needed to continue
critical baseline environmental data collection
and related analysis, while making further
progress on the ongoing projects. A Corps
report has recommended a major expansion
of the Federal commitment to restore this
ecosystem. The Budget includes $3 million for
a focused 10-year plan—modeled after the one
recently developed for Coastal Louisiana—that
will establish near-term priorities for this
program.

Restoring the Mississippi Flyway. The Upper Mississippi River, the
Illinois Waterway, and their floodplains support one of the principal
flyways for migratory birds in North America. The area includes
285,000 acres of National Wildlife Refuge and is home to nearly 500
species of fish, amphibians, reptiles, birds, and mammals, 10 of which
are listed as endangered or threatened.

Everglades/South Florida. The Corps budget includes $164 million for activities that will benefit the ecosystem of South Florida, including the
Everglades, while supporting future population growth. In 2007, the Corps will begin construction
of one or more bridges along the Tamiami Trail (U.S. Highway 41), allowing more water to enter
Everglades National Park. Work on seepage control north and south of Tamiami Trail, the Kissimmee
River, and aquifer storage and recovery pilot projects will be a priority. The Corps will also work
with the non-Federal sponsor to develop a full range of options to: (1) optimize management of the
waters in and around Lake Okeechobee over time, based on the expected net environmental and
net economic returns; and (2) develop a full range of options for improving water flows through the
Central Everglades, both in the Water Conservation Areas and in Everglades National Park.

Strengthening the Regulatory Program for Wetlands
The Budget provides $173 million for the Corps regulatory program, a $15 million (9-percent)
increase over the 2006 funding level. The program helps to preserve and protect the Nation’s
wetlands. The Corps evaluates permit applications submitted by developers of roads and real estate
and others whose activities will affect wetlands. It requires developers to avoid, minimize, and
mitigate any wetland damage. Increased funding for the program will allow the Corps to improve
permit processing, increase compliance by permit recipients with the terms of their permits, and
upgrade the ability of the Corps to assess and review wetland-related projects using a broadly
focused watershed approach rather than a narrower and less effective site-by-site approach. The
funding increase will also allow the Corps to work with local officials to identify environmentally
sensitive areas in advance of development and to work with the Environmental Protection Agency
to upgrade the database both agencies use to track and coordinate wetland-related data.

THE BUDGET FOR FISCAL YEAR 2007

251

RESTRAINING SPENDING AND MANAGING FOR RESULTS
Setting Priorities for the Construction Program
The 2007 Budget provides strong support for the Corps construction program with a sharpened
focus on completing more projects sooner, building the best projects faster, and ensuring that taxpayer dollars are spent on projects with the greatest return on the investment, based on objective
performance criteria. The Budget again proposes to use performance guidelines to guide the development of the Corps construction budget and establish a clear, performance-based framework for
selecting the most worthy construction investments. This approach mimics the decision-making of
businesses and individuals who seek the greatest return from the investment of their own resources.
The Budget supports a major change to the guidelines proposed in the 2006 Budget to ensure funding for flood and storm damage reduction projects that address a significant, ongoing risk to human
safety.
One of the lessons learned from Hurricane Katrina is the importance of setting spending priorities
to meet the water resources needs that are most compelling from a national perspective. To that end,
the budget for construction focuses funding on six national priorities and other high-ranking projects
within the Corps main mission areas.

Priority Construction Projects

2007 Budget
Authority
(in millions
of dollars)

Sims Bayou, Houston (TX) .........................................................

22

Flood Damage Reduction

New York/New Jersey Harbor (NY, NJ)..................................

90

Commercial Navigation

Olmsted Locks and Dam, Ohio River (IL, KY).....................

110

Commercial Navigation

Oakland Harbor (CA)....................................................................

44

Commercial Navigation

Upper Mississippi River System Environmental
Management Program (IL,IA,MN,MO,WI) ............................

27

Commercial Navigation/Mitigation

Everglades/South Florida Ecosystem Restoration (FL) ..

164

Aquatic Ecosystem Restoration

Project Purpose

Two other efforts are also national priorities—the work now underway in the Columbia River and
Missouri River basins to benefit listed species. The Budget funds these efforts under the operation
and maintenance program. The Budget does not include additional funding for the flood damage
reduction project in the West Bank and Vicinity, Louisiana, because sufficient funds to complete that
project were provided in 2006.

Staying on Mission
In any given year, there are about 300 new or ongoing construction projects that compete for limited
available resources in the Corps construction budget. Not all of these projects, however, are appropriate investments. For example, many projects fall outside the Corps main missions—commercial
navigation, flood and storm damage reduction, and aquatic ecosystem restoration. Other projects
have not completed the necessary policy review within the Executive Branch or, as a result of such
review, have raised serious policy concerns.

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CORPS OF ENGINEERS—CIVIL WORKS

RESTRAINING SPENDING AND MANAGING FOR RESULTS—Continued
In response to an Administration proposal
last year, the Congress took an important
2002-2006 Congressional Spending
2007 Corps Construction
step and placed limits on the Corps’ use of
for Non-Mission Projects in
Budget for Main Missions
Corps Construction Budget
(dollars in millions)
continuing contracts. The 2007 Budget builds
(dollars in millions)
upon this successful effort by improving and
All Other Missions
reproposing performance guidelines for the
2006
$200
Corps construction program. The guidelines
$935
continue to focus on projects that are within
2005
$121
the Corps mission areas and have completed
$141
$750
2004
rigorous policy review. Projects are then ranked
$144
2003
within each mission area by their estimated
Flood/Storm Damage Reduction
2002
$229
economic or environmental return. Projects
with economic outcomes are ranked by the
5-Year Total = $835 million
$750 million = 2007 Total
Lvs.
ratio of their remaining economic benefits to
for Projects Outside the Corps
for Flood/Storm Damage
Missions
Reduction
the remaining costs. Environmental projects
are given priority if they involve restoration of
a nationally or regionally significant aquatic ecosystem that has become degraded as a result of a
Corps project or, if the Corps is otherwise uniquely suited to undertake the restoration. Flood and
storm damage reduction projects that address significant risk to human safety also receive priority.
The highest-ranking projects in each mission area will receive at least 80 percent of the maximum
amount the Corps can efficiently spend, and the lowest-ranking projects will be considered for
deferral. Setting priorities and adhering to objective performance criteria will help ensure that the
construction program produces the best value for the American taxpayer. The Administration will
continue to work with the Congress to achieve this worthy goal.

Staying and Spending on Mission Matters

Authorizing New Ways to Support Recreation at Corps Lakes and Reservoirs
The Corps manages 4,300 recreation areas at 465 Corps projects (mostly lakes and reservoirs) in 43
States. Millions of people each year enjoy the marinas, camping areas, and conference centers that
line Corps lakes. The Corps spends about $267 million each year to support this popular program. To
help finance upgrades to recreation facilities at Corps lakes, the Administration reproposes a recreation modernization (RecMod) initiative that would improve these facilities and increase program
quality through additional fees (e.g., entrance fees, which are not now authorized), leasing arrangements, and public/private partnerships. The RecMod initiative would provide better service to all
visitors at less cost to taxpayers. The initiative would be implemented in a collaborative manner
that draws on local leadership and protects environmental values, similar to the approach taken in
the President’s cooperative conservation efforts.

Budgeting for Operation and Maintenance
The Budget supports development of risk-based facility condition indices to enable strategic,
objective investment decisions on the maintenance of the Corps’ aging infrastructure. The Corps
will use these analytic tools to standardize decision-making across its divisions and districts and to
help set priorities for maintenance spending. In addition, to improve accountability and oversight,
reflect the full cost of operating and maintaining existing projects, and support an integrated
investment strategy, the Budget transfers the following activities from the construction program to
the operation and maintenance program:

THE BUDGET FOR FISCAL YEAR 2007

253

• Rehabilitation of navigation and hydropower infrastructure, where the extent of the work is not
large enough to be considered a replacement;
• Endangered Species Act compliance, where the Corps is implementing a reasonable and prudent
alternative set forth in a biological opinion in order to be able to continue operating an existing
project without jeopardizing the existence of listed species;
• Construction of facilities, projects or features (including islands and wetlands) to use materials
dredged during navigation maintenance; and
• Mitigation of impacts on shorelines from navigation maintenance activities.

Assessing Corps Program Performance and Management
The Corps worked with the
Office of Management and Budget
Innovations in Management: Improving the Quality of
to assess two programs this year
Water Resource Project Review
using the Program Assessment
In March 2005, the Corps established a Civil Works Review
Rating Tool (PART). These assessBoard to serve as a corporate checkpoint for reviewing the
ments yielded a set of findings and
quality of the recommendations that Corps field offices make
follow-up actions for improving the
regarding future Federal water resource projects. The Board,
performance and management of
chaired by the Deputy Commanding General of the Corps of
each program. For example, an
Engineers, will allow for improved quality control in project
assessment was completed for the
formulation and a more integrated and collaborative project
Corps environmental stewardship
review process.
program, which involves management of 12 million acres of land
and water nationwide (equal in size
to the States of Vermont and New Hampshire combined). The assessment found that the natural
resource inventories and management plans for these properties are in many cases incomplete or
out of date. In response to this finding, the Corps will complete and update these inventories and
plans to ensure Corps environmental assets are managed in a more responsible way. An assessment
was also completed for the Corps program tasked with cleaning up sites contaminated as a result
of the Nation’s early efforts—mostly under the Manhattan Project—to develop atomic weapons.
The assessment found that many stakeholders at individual clean-up sites have significantly
differing views on the purpose and goals of this program. In response, the Corps will work with
local community leaders and other stakeholders to better document and clarify agreements on the
program’s goals and commitments at the 22 sites scheduled for clean-up.

254

CORPS OF ENGINEERS—CIVIL WORKS

RESTRAINING SPENDING AND MANAGING FOR RESULTS—Continued
Update on the President’s Management Agenda
The table below provides an update on the Corps’ implementation of the President’s Management
Agenda as of December 31, 2005.

Human Capital

Competitive
Sourcing

Financial
Performance

E-Government

Budget and
Performance
Integration

Status
Progress
The Corps continued to refine improvements to its 2012 Reorganization Plan while deploying over 2,500
employees to areas affected by Hurricanes Katrina, Rita, Ophelia, and Wilma. The Corps is aggressively
working to ensure the security of its information technology systems and expects all systems to be secure and
fully accredited by the end of 2006. The Corps is taking advantage of competitive sourcing to lower costs
and improve the performance of information technology, finance, and public works activities. The Corps is
working diligently to address and resolve problems identified in past financial audits, which it must do to lay
the groundwork for a future audit. To advance Budget and Performance Integration, the Corps has completed
assessments of two additional programs this year using the PART: the Environmental Stewardship program and
the Formerly Utilized Sites Remedial Action Program.

Initiative

Status

Progress

Real Property Asset Management
The Corps is completing its real property inventory, asset management plan and performance measures, as
called for by the Federal Real Property Council. These efforts are expected to be completed by mid-2006.

THE BUDGET FOR FISCAL YEAR 2007

255

Corps of Engineers—Civil Works
(In millions of dollars)

2005
Actual
Spending
Discretionary Budget Authority:
Construction 1 .......................................................................................................
Operation and Maintenance 1 ..........................................................................
Flood Control, Mississippi River and Tributaries .......................................
Flood Control and Coastal Emergencies .....................................................
Investigations .........................................................................................................
Regulatory Program ............................................................................................
Formerly Utilized Sites Remedial Action Program ...................................
Expenses .................................................................................................................
Office of Assistant Secretary (Civil Works) .................................................
Total, Discretionary budget authority .................................................................

2006

2007

1,755
1,944
298
59
144
144
164
166
4
4,678

2,348
1,970
396
—
162
158
139
152
4
5,329

1,555
2,258
278
81
94
173
130
164
—
4,733

...............

772

2,900

—

Total, Discretionary outlays ...................................................................................

4,885

7,380

5,843

Mandatory Outlays:
Existing law ........................................................................................................
Legislative proposal, Recreation Program User Fee ..........................
Total, Mandatory outlays ........................................................................................

119
—
119

33
—
33

45
9
36

Total, Outlays ..............................................................................................................

4,766

7,413

5,879

Memorandum: Budget authority from enacted supplementals

1

Estimate

The 2007 Budget reflects a transfer of certain activities from the construction program to the operation and maintenance program.