Meeting the Non-federal Cost Share, and other Financial/Administrative Issues

Transcription

1 Meeting the Non-federal Cost Share, and other Financial/Administrative Issues Beneficial Use of Dredged Materials Summit March 15, 2013 Jan Miller Great Lakes & Ohio River Division US US Army Army Corps Corps of of Engineers Engineers

2 Agenda Challenges and Opportunities Federal Standard/Base Plan Cost Sharing Making BU Happen Questions 2

3 Challenges and Opportunities to Beneficial Use of Dredged Material Dredged material properties Proximity to market Comparative costs of other materials Regulatory requirements Public and agency acceptance Cost sharing requirements 3

4 Challenges and Opportunities Dredged Material Properties Waukegan, IL Dredged material that are principally sand are highly marketable Milwaukee, WI Dredged material that are principally silt and clay are often more challenging to market, unless amended 4

5 Michigan City, IN Challenges and Opportunities Proximity to Market Local markets in close proximity to harbor/channel are preferable Rehandling and transportation costs are often the largest financial limitation to beneficial use of dredged material Duluth, MN 5

6 Availability and costs of competing materials may limit economic viability of beneficial use Holland, MI Challenges and Opportunities Comparative Costs Detroit, MI Local communities may subsidize these costs or mandate BU through local ordinances 6

7 Challenges and Opportunities Regulatory Requirements Some states have regulatory framework specifically for beneficial use of dredged material Buffalo, NY In other states, dredged material fall into a regulatory black hole 7

8 Local acceptance of beneficial use relies on local proponents working with local elected officials and stakeholders Ashtabula, OH Challenges and Opportunities Public Acceptance St. Joseph, MI Unfortunately, support is often delayed until there is a sense of urgency 8

9 Challenges and Opportunities Cost Sharing Requirements Beneficial use requires cost sharing when costs are greater than federal base plan Green Bay, WI Beneficial use for habitat restoration and shore protection have specific cost sharing requirements Saginaw, MI 9

10 Federal Standard/Base Plan USACE financial decision (not regulatory) Establish baseline for federal funding on dredged material management Defines the non-federal costs (if any) that are required for beneficial use projects 10

11 Federal Standard/Base Plan Least-costly dredged material management alternative that is: feasible and with sound engineering environmentally acceptable 11

12 Federal Standard/Base Plan Least-costly dredged material management alternative that is: feasible and with sound engineering environmentally acceptable USACE interpretation of environmental acceptability is based on federal laws and NOT on state policies 12

13 Cost Sharing USACE funding for navigation projects is limited to the Federal Standard/Base Plan Additional costs for dredged material management options must come from other sources (non-federal or other federal) USACE has authorities for certain beneficial use applications that can fund part of the increased costs 13

14 Example A: Cost Sharing Testing and evaluation indicates dredged material are suitable for open water placement at site near harbor ($6/CY) County wants dredged material placed on beach a few miles away ($9/CY) County would be responsible for difference in costs for transporting dredged material extra distance ($3/CY) 14

15 Example B: Cost Sharing Testing and evaluation indicates dredged material are suitable for unrestricted upland placement ($9/CY) City wants to use dredged material as cover on brownfield site 3 miles from harbor ($15/CY) City provides temporary holding area for dredged material near harbor and transportation to brownfield site ($6/CY) 15

16 Beneficial Use of Dredged Material (Sec 204, WRDA 1992, as amended) Authority for projects to restore, enhance or protect aquatic ecosystems or create shoreline storm damage protection with dredged material from USACE navigation projects. Non-federal partner required to provide: all lands, easements, rights-of-way 35% of costs above the Base Plan operation and maintenance of completed project 16

17 Example C: Testing and evaluation indicates dredged material are suitable for open water placement ($2M) City wants to use material for habitat restoration project ($5M) Cost Sharing City and USACE execute cost sharing agreement for 204 project. City pays 35 percent of costs over Base Plan (35% of $5-2M = $1M) 17

18 Making BU Happen USACE policies on beneficial use are not totally consistent. For example, consider the transportation of dredged material to beneficial use sites. If newly dredged material is placed at a holding area provided by a local partner for gradual distribution to beneficial use sites, the transportation costs are non-federal. However, if the materials are taken directly to a site for beneficial use, USACE may agree to pay for transportation costs if the distance to the placement site is reasonable. 18

19 Making BU Happen Some existing confined disposal facilities may be mined for materials suitable for some beneficial uses USACE policy interprets the mining of dredged material from a CDF as a means of increasing CDF capacity and equivalent to building a new facility. The USACE can cost-share excavation and transport of dredged material from existing CDFs using same formula as new CDF construction 19

20 Making BU Happen The value of lands, easements, and rights-ofway at Section 204 projects can count towards the non-federal cost-share Projects using public lands with high market value may have reduced non-federal cash requirements 20

21 Making BU Happen Some port authorities sell the dredged material stockpiled near harbor to buyers needing fill for construction projects Local communities or states could require that dredged material be beneficially used for construction through policies or laws State or local interests could transport dredged material to stockpiles near construction projects to make it the most economically advantageous material for construction contactors to use 21

22 Making BU Happen The USACE can provide information and tools to help state and local dredging proponents find local markets for beneficial use In some cases, the USACE can perform demonstration projects of beneficial uses to address technical or regulatory concerns 22

23 Summary Dredged material can be used for a wide range of beneficial purposes, including construction fill Cost sharing may be needed to pay for costs above the USACE Base Plan In some cases, the Base Plan may be negotiable and/or real estate values used as part of the cost share USACE relies on local partners to find markets for beneficial use applications 23

24 Questions? 24