By TIM ALEXANDER Illinois Correspondent
WASHINGTON, D.C. — Legislation sponsored by U.S. Rep. Ed Whitfield (R-Ky.) intended to ensure safe, dependable, cost-effective and environmentally sustainable navigation on the U.S. inland waterway system was filed last Friday, with bipartisan support.
The Waterways are Vital for the Economy, Energy Efficiency and Environment Act of 2012 (WAVE-4) requires the use of objective criteria for the prioritization of major construction and rehabilitation projects, including lock and dam upgrades, according to Whitfield, who is chair of the House Subcommittee on Energy and Power. The bill also seeks to fund river infrastructure projects by revising the current cost-sharing structure through an increase in the barge fuel tax operators are assessed – a condition waterway users are supporting – and revising the U.S. Army Corps of Engineers’ project delivery process.
“Efficient and reliable transportation of goods on our inland waterways is essential to economic development, job creation and remaining competitive in the global marketplace,” Whitfield stated. “Our aging infrastructure jeopardizes efficient waterborne commerce and highlights the need for the WAVE-4 Act, that will implement a comprehensive plan to improve project management and put in place an objective investment strategy that will prioritize our infrastructure needs.”
If passed, WAVE-4 would more than double the revenue collected through the barge tax. It would impose the first increase in the barge tax in 17 years and would not impose tolls on barges moving through locks.
“This legislation represents a comprehensive effort among key stakeholders to more efficiently use the resources dedicated to improving our inland waterway system,” said Rep. Jerry Costello (D-Ill.), a senior member of the House Transportation and Infrastructure Committee. “Importantly, industry has committed to paying more to meet the maintenance challenges we face, and addressing how projects are prioritized should be a part of this process.”
Illinois’ future economic growth depends on the passage of WAVE-4, according to Costello and fellow Rep. Tim Johnson (R-Ill.). “As a member of the Committee on Transportation and Infrastructure, I am proud to cosponsor Mr. Whitfield’s bill, as it addresses the critical issues of getting Illinois’ corn, soybeans and coal to other markets in the United States and around the world,” he said. “Without this crucial waterway system, Illinois exports would not be able to export the goods that drive our economy with billions of dollars in revenue,” he continued, adding he is anxious to advance the legislation through committee for consideration by the full House.
Paul Taylor, First District director and vice president of the Illinois Corn Growers Assoc. (ICGA), identified passage of WAVE-4 as one of three top legislative priorities for the organization in 2012, along with passage of a new farm bill and ethanol considerations. He explained WAVE-4 is similar to the Water Resources Development Act (WRDA), for which Congress failed to authorize funding, with the major difference being who pays for the majority of infrastructure improvements on the upper Mississippi, Illinois and Ohio rivers.
“What we ran into (with WRDA) was a change in the political climate, in that (Congress) was mandated to cut taxes and government,” Taylor said. “Out of the WRDA, the Waterways Council – which is made up of shippers, importers, the grain groups and unions – came back to Congress with a proposal that involves a barge fuel tax of 6 cents.”
With many conservative Republicans swearing a “no new taxes” oath, including Whitfield and two other backers of WAVE-4, Taylor and other supporters realize the legislation may not win approval this year. Complicating matters is opposition to the bill because it limits the use of revenue generated from the fuel tax to new locks and repairs totaling $100 million or more; cheaper lock repairs and project costs would still be footed by taxpayers.
Adding an election year to the mix erects yet another barrier to the bill’s passage, according to Taylor. “Even during difficult times things have to be done to maintain infrastructure. At some time and some point, we have to rise above that. Our absolute concern is the long-term economic competitiveness of U.S. agriculture,” he said.
“It illuminates the inability of the U.S. to take direction on a sound transportation policy, and in the future we’re going to lose our competitive advantage with Brazil, Argentina (and others). We think it is important to the economy and well-being of the Midwest to keep the inland waterway system going.”
Taylor said projections show the barge fuel tax would collect well over $100 million in revenue per year for locks and dams and other waterway infrastructure improvement projects. The Corps currently spends approximately $550 million per year in maintenance and construction on the nation’s 11,000-mile inland waterway system. Some 624 million tons of cargo valued at nearly $70 billion traverse these waterways annually. |