<DOC> [109th Congress House Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:29708.wais] STRENGTHENING THE NATION'S WATER INFRASTRUCTURE: THE ARMY CORPS OF ENGINEERS' PLANNING PRIORITIES ======================================================================= HEARING before the SUBCOMMITTEE ON ENERGY AND RESOURCES of the COMMITTEE ON GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED NINTH CONGRESS SECOND SESSION __________ MARCH 15, 2006 __________ Serial No. 109-172 __________ Printed for the use of the Committee on Government Reform Available via the World Wide Web: http://www.gpoaccess.gov/congress/ index.html http://www.house.gov/reform ______ U.S. GOVERNMENT PRINTING OFFICE 29-708 WASHINGTON : 2006 _____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512ÿ091800 Fax: (202) 512ÿ092250 Mail: Stop SSOP, Washington, DC 20402ÿ090001 COMMITTEE ON GOVERNMENT REFORM TOM DAVIS, Virginia, Chairman CHRISTOPHER SHAYS, Connecticut HENRY A. WAXMAN, California DAN BURTON, Indiana TOM LANTOS, California ILEANA ROS-LEHTINEN, Florida MAJOR R. OWENS, New York JOHN M. McHUGH, New York EDOLPHUS TOWNS, New York JOHN L. MICA, Florida PAUL E. KANJORSKI, Pennsylvania GIL GUTKNECHT, Minnesota CAROLYN B. MALONEY, New York MARK E. SOUDER, Indiana ELIJAH E. CUMMINGS, Maryland STEVEN C. LaTOURETTE, Ohio DENNIS J. KUCINICH, Ohio TODD RUSSELL PLATTS, Pennsylvania DANNY K. DAVIS, Illinois CHRIS CANNON, Utah WM. LACY CLAY, Missouri JOHN J. DUNCAN, Jr., Tennessee DIANE E. WATSON, California CANDICE S. MILLER, Michigan STEPHEN F. LYNCH, Massachusetts MICHAEL R. TURNER, Ohio CHRIS VAN HOLLEN, Maryland DARRELL E. ISSA, California LINDA T. SANCHEZ, California JON C. PORTER, Nevada C.A. DUTCH RUPPERSBERGER, Maryland KENNY MARCHANT, Texas BRIAN HIGGINS, New York LYNN A. WESTMORELAND, Georgia ELEANOR HOLMES NORTON, District of PATRICK T. McHENRY, North Carolina Columbia CHARLES W. DENT, Pennsylvania ------ VIRGINIA FOXX, North Carolina BERNARD SANDERS, Vermont JEAN SCHMIDT, Ohio (Independent) ------ ------ David Marin, Staff Director Teresa Austin, Chief Clerk Phil Barnett, Minority Chief of Staff/Chief Counsel Subcommittee on Energy and Resources DARRELL E. ISSA, California, Chairman LYNN A. WESTMORELAND, Georgia DIANE E. WATSON, California ILEANA ROS-LEHTINEN, Florida BRIAN HIGGINS, New York JOHN M. McHUGH, New York TOM LANTOS, California PATRICK T. McHENRY, North Carolina DENNIS J. KUCINICH, Ohio KENNY MARCHANT, Texas Ex Officio TOM DAVIS, Virginia HENRY A. WAXMAN, California Lawrence J. Brady, Staff Director Dave Solan, Professional Staff Member Lori Gavaghan, Clerk Richard Butcher, Minority Professional Staff Member C O N T E N T S ---------- Page Hearing held on March 15, 2006................................... 1 Statement of: Lamont, Douglas W., Deputy Assistant Secretary of the Army for Project Planning, accompanied by Claudia Tornblom, Deputy Assistant Secretary for Management and Budget, and Thomas Waters, Chief, Planning and Policy; Anu Mittal, Director, Natural Resources and Environment, Government Accountability Office; Steve Ellis, vice president, Taxpayers for Common Sense; and S. Elizabeth Birnbaum, vice president for government affairs, American Rivers.......... 6 Birnbaum, S. Elizabeth................................... 43 Ellis, Steve............................................. 33 Lamont, Douglas W........................................ 6 Mittal, Anu.............................................. 16 Letters, statements, etc., submitted for the record by: Birnbaum, S. Elizabeth, vice president for government affairs, American Rivers, prepared statement of............ 46 Ellis, Steve, vice president, Taxpayers for Common Sense, prepared statement of...................................... 36 Issa, Hon. Darrell E., a Representative in Congress from the State of California, prepared statement of................. 4 Lamont, Douglas W., Deputy Assistant Secretary of the Army for Project Planning, prepared statement of................ 10 Mittal, Anu, Director, Natural Resources and Environment, Government Accountability Office, prepared statement of.... 18 Watson, Hon. Diane E., a Representative in Congress from the State of California, prepared statement of................. 69 STRENGTHENING THE NATION'S WATER INFRASTRUCTURE: THE ARMY CORPS OF ENGINEERS' PLANNING PRIORITIES ---------- WEDNESDAY, MARCH 15, 2006 House of Representatives, Subcommittee on Energy and Resources, Committee on Government Reform, Washington, DC. The subcommittee met, pursuant to notice, at 3:02 p.m. in room 2203, Rayburn House Office Building, Hon. Darrell E. Issa (chairman of the subcommittee) presiding. Present: Representatives Issa and Watson. Staff present: Larry Brady, staff director; Lori Gavaghan, legislative clerk; Tom Alexander, counsel; Dave Solan, Ph.D., and Ray Robbins, professional staff members; Richard Butcher, minority professional staff member; and Jean Gosa, minority assistant clerk. Mr. Issa. A working quorum under our rules being present, this meeting is called to order. Mr. Lamont, I'll begin by also saying I understand you have someone else from the Corps of Engineers who would like to be able to testify if areas outside of your expertise arise. They can come forward and just be here the whole time. That's fine. Mr. Lamont. Is it appropriate now? Mr. Issa. It's appropriate right now; that's fine. Mr. Lamont. Claudia Tornblom is the Deputy for Management and Budget in our Office of the Assistant Secretary. Mr. Issa. Excellent. At these hearings, we try to have the greatest amount of impact by having all of your staff available. I will mention in advance before I get to it in the script that we will swear in all who may testify and all who may assist you answering questions so that either whether they speak directly or they whisper in your ear and you reiterate, it's covered. We do that as a matter of committee policy in order to make it easier on you because the last thing we want to have is you're speaking somebody else's words and then you've been sworn and they haven't. So hopefully it works for all of us. The Army Corps of Engineers has a long and distinguished history of building and maintaining critical water resources and infrastructure in the United States. As we have witnessed in Hurricane Katrina, the Corps' traditional missions of flood control and navigation are as important as ever. And I would like to take a moment to personally thank the many Corps employees who have volunteered to work in the area devastated by Katrina. As I understand, a fairly significant, of the total transferrable work force is presently working in the Gulf. Again I'd like to thank the Corps for their service and their efforts. The Nation's existing infrastructure is the result of priority-setting, decisions and projects constructed in the past. For decades to come, infrastructure priorities that we set today and in the near future will impact commerce, electricity generation, wetlands, and most importantly, the safety of communities that depend on the Corps for flood protection. It is imperative that we have the tools and information to make the right choices. But the Corps faces a number of significant challenges in carrying out its mission. Funding for the Corps inevitably involves tradeoffs between congressionally authorized projects. And, unfortunately, critical maintenance of existing infrastructure is sometimes deferred because of other competing priorities. Next, financial management is another area of concern. It has become a common practice for the Corps to shift funds to meet the needs of the moment, which suggests that priority- setting within the Corps is either lacking or not sustainable. And as the rest of the committee comes, I would like to take a moment to set a context for that, for your statements to come. I had the privilege of spending almost 2 years with the Corps of Engineers on active duty and as an executive officer of an engineering company. On more than a few occasions somebody managed to have enough construction sites that I had to have one bulldozer at two sites at one time. It is a fairly low-level decision. It requires that you put the bulldozer on a truck every day so that it is in both sites at some point during the day. Four hours on both sites, no problem. The problem is the 2-hours it takes to load the bulldozer, get it over there and unload it was lost time. Now that may be just a microcosm of what you are facing in the Corps of Engineers but it is a perspective that I put on it, that if we are asking you to have a bulldozer in two places at one time, if that requires an inefficiency, it leads to a greater total cost for those two projects and Congress needs to know that and Congress needs to take action. Third, the shortcomings in a cost/benefit analysis done by the Corps have been well documented by the GAO, the National Academy of Sciences and the Army Inspector General. To its credit, the Corps has moved aggressively to address these flaws and improve its planning processes. The Corps has also taken steps to be more cooperative and reorganize so that stove- piping no longer exists. In conclusion, I must note that we are not here to revisit the Water Resource Development Act, which passed the House by more than 390 votes. We are not here to criticize the Corps or any part of government for the purpose of making points in the press. We are here today to find out primarily if the relationship between Congress and the Corps has led to mixed messages, excess projects and insufficient funds. I certainly look forward to hearing from each of the witnesses. I certainly want to hopefully set in motion in your minds the fact that this Congressman recognizes that Congress is clearly part of the problem in the Corps today and in the quantity of backlog, some dating 25 years, that have never been fully funded. [The prepared statement of Hon. Darrell E. Issa follows:] [GRAPHIC] [TIFF OMITTED] T9708.001 [GRAPHIC] [TIFF OMITTED] T9708.002 Mr. Issa. Again I look forward to hearing from our esteemed guests. Mr. Douglas Lamont, Deputy Assistant Secretary of the Army for Project Planning. I thank you for being here. Thank the Corps for making you available on relatively short notice. I realize there are several people juggling their schedules to make this happen. Ms. Anu Mittal, Director, Natural Resources and Environmental Team of the Government Accountability Office. Thank you for being here and again thank you for the work that the GAO has already done. Mr. Steve Ellis, vice president of Taxpayers for Common Sense. Thank you for being here. We live and die by our watchdog organizations here and I do emphasize and die. And Ms. Elizabeth Birnbaum, vice president and general counsel, American Rivers. Thank you all for being here. As I mentioned earlier, for all of you and anyone who you are going to have assist you, I would ask that you stand now and be sworn in. [Witnesses sworn.] Mr. Issa. I indicate that all said affirmative and the one gentleman in the back, if you would also give the recorder your name and spelling, that will help. And please have a seat. The ranking member is on her way back. As you probably know, we have the president of Liberia speaking before a joint session. I ducked out early but for appropriate reasons, some of the Members will be coming in afterwards. So the good news is you miss an opening statement, although she may want to give it when she gets in. But Mr. Lamont, if you would begin. Oh, and I will ask and I will clearly get unanimous consent that all of your written testimony be placed in the record, which will allow you to go off of your testimony and add or modify as you see fit. In fairness to so many speakers, try to be about 5 minutes. If it runs over a little bit, we certainly would be understanding. Thank you. STATEMENTS OF DOUGLAS W. LAMONT, DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR PROJECT PLANNING, ACCOMPANIED BY CLAUDIA TORNBLOM, DEPUTY ASSISTANT SECRETARY FOR MANAGEMENT AND BUDGET, AND THOMAS WATERS, CHIEF, PLANNING AND POLICY; ANU MITTAL, DIRECTOR, NATURAL RESOURCES AND ENVIRONMENT, GOVERNMENT ACCOUNTABILITY OFFICE; STEVE ELLIS, VICE PRESIDENT, TAXPAYERS FOR COMMON SENSE; AND S. ELIZABETH BIRNBAUM, VICE PRESIDENT FOR GOVERNMENT AFFAIRS, AMERICAN RIVERS STATEMENT OF DOUGLAS W. LAMONT Mr. Lamont. Thank you, Mr. Chairman and distinguished members of the subcommittee. Thank you for the opportunity to testify on strengthening the Nation's infrastructure, U.S. Army Corps of Engineers planning priorities. The Corps of Engineers civil works program provides a framework to develop reasoned environmental and engineering solutions to support the water resources needs of our Nation. Over the last few years the Corps has implemented several initiatives to improve its planning processes and maintain and strengthen its planning expertise. Mr. Issa. Is the green light lit? Mr. Lamont. Yes, sir, it is. Shall I move closer? Mr. Issa. We may be able to adjust it but if you would move as close as you can, I would appreciate it. Mr. Lamont. These initiatives include revisions to the planning guidance, the planning models improvement program, peer review, the establishment of planning centers of expertise, planner capability development, and project priority-setting. I would like to briefly describe each of these initiatives for you. The Corps water resources planning is guided by the U.S. Water Resources Council's 1983 Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies. The analyses required for individual project decisions go well beyond the calculation of benefit and cost ratios. Systematic evaluation of projects of different scales and scopes is required so that tradeoffs among different mixes of project purposes and alternative solutions can be identified. Using the Principles and Guidelines as the basic analytical framework, the Corps has developed its planning guidance in response to evolving national priorities and congressional direction, which include considerations such as greater emphasis on environmental protection and restoration and greater collaboration among project interests. Recently the Corps has issued guidance to broaden the planning considerations through collaborative watershed-based planning and to more fully document alternative plans' beneficial and adverse effects in the areas of national economic development, environmental quality, regional economic development, and other social effects. This approach would provide a basis for more comprehensive solutions to complex water resource challenges. The use of technical models is part of the science and engineering that form the foundation of our investment decision documents. To ensure the quality and credibility of the Corps' models, the Corps has implemented a Planning Models Improvement Program. This program enhances the planning capability of the Corps by requiring the use of certified and defensible technical models in the development of its decision documents. The use of the certified models will improve the Corps' ability to provide theoretically and technically sound data for decisionmaking. The guidance and emphasis of this program should also, in the long term, result in significant efficiencies in conducting planning studies. Early last year the Corps adopted a peer review process as called for in the Information Quality Act. Our peer review process closely follows the Final Information Quality Bulletin for Peer Review issued by the Office of Management and Budget in 2004. The purpose of peer review is to ensure that the technical quality of Corps documents is evaluated by a group of independent reviewers not involved with the report production. Potential projects that are controversial, precedent-setting or have significant national effects will also require external peer review by experts outside the Corps of Engineers. In addition, external peer review is added in most cases where the risk and magnitude of a proposed project are such that a critical examination by a qualified person or a team outside the Corps is necessary. Further, the Corps has established a Civil Works Review Board composed of Corps Senior Executive Service personnel and a deputy commanding general for the Corps of Engineers to determine if the planning recommendations of the Corps districts are ready for formal State and agency review and circulation of a proposed Report of the Chief of Engineers. In August 2003 the Director of Civil Works designated six national Planning Centers of Expertise to enhance the Corps' planning capability for inland navigation, deep draft navigation, ecosystem restoration, hurricane storm damage reduction, flood damage reduction, and water management and reallocation. The centers have key roles in maintaining and strengthening planner core competencies within the Corps, providing technical assistance, providing independent review, transferring the latest technology, and sharing lessons learned and best practices throughout the Corps' Planning Community of Practice. With the increasing maturity and development of these centers, the Corps can more widely leverage its resources regionally and nationally. Fully functioning centers will provide leadership for the Corps planning process nationwide, support the regional technical specialists, provide for independent technical reviews, ensure certified models are used in decisionmaking documents, share lessons learned, develop core training modules and oversee the implementation of new guidance. The ability of an organization to work with not only the scientific and engineering aspects of water resources but also the economic and environmental components depends upon a multi- talented, experienced work force. One way the Corps is addressing the need for experienced planners is through the Planning Associates Program that is an advanced training opportunity for Corps water resource planners at the journeyman level. The goals of this program are to broaden the planners' competencies in solving complex water resources problems, to strengthen their leadership skills, and to retain critical planner capability within the Corps of Engineers. The Corps has also established an Advanced Degree Program in Integrated Water Resources Planning and Management that has been created in close partnership between the Universities Council on Water Resources and the Corps of Engineers. It is designed to provide the next generation of Corps water resources professionals with a requisite skill set to address multi-objective planning and management. Planners completing the program earn a masters degree or doctorate from one of the participating accredited universities. The Corps has played and continues to play a large role in the development and management of the Nation's water and related land resources. The administration's 2007 budget incorporates objective, performance-based metrics for the construction program, funds the continued operation of commercial navigation and other water resource infrastructure, and supports the restoration of nationally and regionally significant aquatic ecosystems, with emphasis on the Florida Everglades, the Upper Mississippi River, and the coastal wetlands of Louisiana. Mr. Chairman, the Corps of Engineers is committed to staying on the leading edge of service to the Nation. I am confident that the planning process improvements and performance-based budgeting recently undertaken by the Corps have strengthened our ability to be responsive to the Nation's complex water resources needs. I will be happy to answer any questions, sir. [The prepared statement of Mr. Lamont follows:] [GRAPHIC] [TIFF OMITTED] T9708.003 [GRAPHIC] [TIFF OMITTED] T9708.004 [GRAPHIC] [TIFF OMITTED] T9708.005 [GRAPHIC] [TIFF OMITTED] T9708.006 [GRAPHIC] [TIFF OMITTED] T9708.007 [GRAPHIC] [TIFF OMITTED] T9708.008 Mr. Issa. Thank you. Ms. Mittal. STATEMENT OF ANU MITTAL Ms. Mittal. Mr. Chairman, we are pleased to be here today to discuss the Corps of Engineers' civil works planning and project management processes. My testimony today is based on five reports issued by GAO over the last 4 years and focuses on two specific aspects of the civil works program. First I will cover shortcomings that we have identified and the economic analyses used by the Corps to support its planning decisions on specific civil works projects. And second, I will cover the Corps' lack of an effective financial planning and priority- setting process for managing its civil works appropriations. As you know, before undertaking a civil works project, the Corps generally completes a two-phased planning study. This two-phased process helps inform congressional decisionmakers about whether or not to authorize a civil works project and helps determine if Federal investment is warranted. As part of this process, the Corps analyzes and documents whether the costs of constructing the project are outweighed by the benefits provided by the project. Consequently, the accuracy and reliability of the Corps' cost/benefit analysis is critical to ensuring that only the most beneficial projects are proposed to decisionmakers. However, our reviews of individual civil works projects and activities have found that the results of the Corps' analysis are often questionable and are inadequate to support this kind of strategic decisionmaking. Specifically, when we reviewed the Corps' cost/benefit analyses for four different projects and activities, we found that they were fraught with errors, mistakes and miscalculations. These analyses often used invalid assumptions and outdated data to arrive at their conclusions. In each of our reviews we found that the Corps' analyses typically understated the cost of a project and overstated its benefits. For example, when we have tried to recalculate the benefits of some of these projects we have only been able to find credible support for about a fraction of the benefits claimed by the Corps. More troubling is the fact that these analyses went through a three-tiered Corps internal review process but none of these reviews detected any of the problems that we uncovered. This raises serious questions in our minds about the adequacy of the Corps' internal reviews. In response to our report, usually at the direction of the Congress, the Corps has addressed or is in the process of addressing the specific issues identified relating to these individual projects. However, we remain concerned about the extent to which these problems are systemic in nature and therefore may be prevalent throughout the rest of the Corps' civil works portfolio. Effectively addressing these issues may require a more global and comprehensive revamping of the Corps' project planning processes rather than a piecemeal approach. We also undertook a review last year on how the Corps manages its appropriations for the civil works program. We found that the Corps did not have an effective financial planning and management system for these accounts. As a result, the Corps could not identify the highest priority projects across hundreds of authorized projects and allocate appropriated funds to them in an efficient manner. To manage its appropriated funds, we found that the Corps relied on a just-in-time reprogramming approach and moved funds among projects as needed. The benefit of this just-in-time approach was that it provided funds rapidly to projects that had unexpected needs. However, this approach also resulted in many unnecessary and uncoordinated movements of funds among projects. We found that over a 2-year period the Corps moved over $2.1 billion by conducting over 7,000 reprogramming actions and many of these actions were conducted for reasons that were inconsistent with the Corps' own guidance. In response to the findings in our report, the Congress has directed the Corps to revise its procedures for managing its civil works appropriations starting in fiscal year 2006. The Corps has been directed to reduce its reliance on reprogramming actions and institute a more rational financial discipline for the civil works appropriations accounts. In closing, Mr. Chairman, the recurring themes in our reviews of individual Corps projects indicate that the Corps' track record for providing reliable information to assess the merits of undertaking certain civil works projects and managing its appropriations for this program is spotty, at best. This is of particular concern in a time when decisionmakers have to determine how to best provide increasingly scarce Federal resources to hundreds of competing civil works needs across the country. This concludes my prepared statement. I would be happy to answer any questions. [The prepared statement of Ms. Mittal follows:] [GRAPHIC] [TIFF OMITTED] T9708.009 [GRAPHIC] [TIFF OMITTED] T9708.010 [GRAPHIC] [TIFF OMITTED] T9708.011 [GRAPHIC] [TIFF OMITTED] T9708.012 [GRAPHIC] [TIFF OMITTED] T9708.013 [GRAPHIC] [TIFF OMITTED] T9708.014 [GRAPHIC] [TIFF OMITTED] T9708.015 [GRAPHIC] [TIFF OMITTED] T9708.016 [GRAPHIC] [TIFF OMITTED] T9708.017 [GRAPHIC] [TIFF OMITTED] T9708.018 [GRAPHIC] [TIFF OMITTED] T9708.019 [GRAPHIC] [TIFF OMITTED] T9708.020 [GRAPHIC] [TIFF OMITTED] T9708.021 [GRAPHIC] [TIFF OMITTED] T9708.022 [GRAPHIC] [TIFF OMITTED] T9708.023 Mr. Issa. Thank you. And I want to thank you for your testimony and the other testimonies arriving in a timely fashion. Mr. Lamont, I want to thank the Corps for getting theirs in to OMB on time. I will mention that as we are trying to put together questions, OMB held it up until 6 p.m. last night. So hopefully we will be thorough in our questions and the minority counsel when they arrive I am sure are going to somewhat have the same story of feeling that you did not blind-side them but they did not have a lot of notice. Mr. Lamont. Thank you for your understanding. Mr. Issa. We certainly understand the Corps was timely in its delivery to the administration. Mr. Ellis. STATEMENT OF STEVE ELLIS Mr. Ellis. Thank you. Good afternoon, Mr. Chairman. I am Steve Ellis, vice president of programs at Taxpayers for Common Sense, a national nonpartisan budget watchdog. Thank you for holding this hearing on the U.S. Army Corps of Engineers' planning process and project priorities. I want to be clear from the outset that I have a great deal of respect for the Corps and for Congress. However, we have been significantly concerned about the well-documented waste of taxpayer dollars on our Nation's water resources program. Over the last several years there have been numerous studies into the Corps' shortcomings, some of which were just mentioned. In a more direct way, Katrina exposed many of these same weaknesses. It appears Congress's response has been to do nothing because the lack of strong rules, easily manipulated economics, and a priority-free environment lends itself to pork barrel spending and political machinations. Congress and the Corps have become, wittingly or unwittingly, partners in wasting the U.S. taxpayers' money. The agency's roughly $5 billion budget is almost entirely made up of earmarks for projects. By courting Members of Congress, the Corps helps ensure that their budget level is maintained. The Corps takes care of Congress and Congress takes care of the Corps. The Army Inspector General pointed out that for the Corps, ``the budget process was deemed a first-half irrelevancy. The measure of effectiveness of the divisions and districts was the amount of funds actually appropriated by Congress.'' Then chairman of the Energy and Water Appropriations Committee, Sonny Callahan, indicated his interest in getting the Dog River in Mobile, AL dredged because it had silted in too much for even recreational traffic. Recreational dredging is not a Corps mission, so the project was redefined as environmental restoration because as noted in an internal Corps memo, ``The project is Congressman Callahan's personal initiative. The yellow dot on the photo below shows Mr. Callahan's Mobile residence in relation to the Dog River.'' I can tell you that it was right next door. The Dog River was his back yard. The Corps is incapable of correcting itself. For example, dredging projects on the Delaware and the Columbia Rivers were found by independent experts to not be economically justified, returning pennies for every dollar invested. In response, the Corps created review panels but then ignored serious economic shortcomings in the projects, declared victory, and moved ahead with them. Part of the blame lays with the rules that govern project selection, the Principles and Guidelines. More than 20 years old, these rules need to be revised to consider new factors in the benefit/cost analysis, updates to the economic methodology and reorienting the civil works program toward fewer and less structural projects. For example, the Corps' current method of calculating benefits has encouraged high-risk development by creating a false sense of confidence in flood damage reduction projects. To be sure, flood insurance and disaster relief payments have also contributed but now a levee that is built to protect soybeans can end up growing subdivisions. Since the 1920's the Federal Government has spent more than $123 billion on flood damage reduction projects. During that same period, average annual flood damages have nearly trebled to $6 billion. As projects churn through the flawed development process, they end up in a heap called a backlog. The Corps has a $58 billion backlog of authorized projects that have yet not been constructed. There is no prioritization system for projects, so the $2 billion in annual construction funding is spread thinly across many projects. Corps appropriations include irrigation systems, wastewater treatment, and water supply facilities, none of which are primary Corps missions. The Corp is involved in building schools. Building and renovating schools is a laudable job but should not be a priority of the Nation's premier water resources agency. The lack of priorities and the symbiotic Corps-Congress relationship have significant costs. President Bush has frequently criticized the pre-9/11 mindset. Well, those making the much-ado-about-nothing argument on the Corps are suffering from a pre-Katrina mindset. With more than 1,000 lives lost and a total cost likely exceeding $100 billion, we need to fundamentally alter our country's approach to water resources if we are to avoid this devastation in the future. After Katrina hit and the levees failed in New Orleans, many said we did not spend enough money. No, we did not spend enough money wisely. Louisiana took home $1.9 billion in Corps funding in the 5 fiscal years preceding Katrina. That was more than any other State. California came in a distant second at less than $1.4 billion. We had the money. It went to the wrong things, like a new lock on the Industrial Canal in New Orleans. Levees on the very same Industrial Canal failed, inundating the lower Ninth Ward. In retrospect, lock or levees? I hope our priorities would be different today. In closing, to reign in this culture of waste, strong new measures must be enacted. This includes earmark and lobby reform. It also means modernizing the Corps by establishing independent review, developing a prioritization system, and updating the Principles and Guidelines. The earmarked project- by-project budgeting must be ended. It is up to Congress to reign in the Corps and the excesses of their fellow lawmakers. Thank you for holding this hearing and we hope that we can work together to bring the Corps of Engineers into the 21st century and to meet our country's pressing water resources needs in a fiscally responsible manner. Thank you. [The prepared statement of Mr. Ellis follows:] [GRAPHIC] [TIFF OMITTED] T9708.024 [GRAPHIC] [TIFF OMITTED] T9708.025 [GRAPHIC] [TIFF OMITTED] T9708.026 [GRAPHIC] [TIFF OMITTED] T9708.027 [GRAPHIC] [TIFF OMITTED] T9708.028 [GRAPHIC] [TIFF OMITTED] T9708.029 [GRAPHIC] [TIFF OMITTED] T9708.030 Mr. Issa. Thank you. That was not only almost exactly on the 5-minutes but you alternated very well between the failures of the Corps and the failures of the Congress. I thought that was pretty fair. Ms. Birnbaum. STATEMENT OF S. ELIZABETH BIRNBAUM Ms. Birnbaum. Good afternoon, Mr. Chairman. Thank you for the opportunity to appear today. My name is Liz Birnbaum and, as you mentioned, I am the vice president for government affairs at American Rivers, the Nation's leading river conservation organization, with over 40,000 members and working with thousands of local watershed and river groups across the country. We also co-chair the Corps Reform Network, a growing coalition of more than 135 organizations from across the country. To protect lives, communities, the economy, and the environment, Congress must modernize Corps of Engineers project planning. No stronger evidence is needed than the horrifying flooding of New Orleans, which highlighted many critical problems with the Corps' project planning and construction. First, Corps projects repeatedly suffer from flawed project planning and design. Hurricane Katrina was a Category 3 storm when it reached New Orleans, a storm the flood walls were supposed to protect against. The floodwall design did not meet the Corps' own guidelines, and the Corps failed to act on additional concerns about unstable soils and levee heights. A panel of the American Society of Civil Engineers has concluded that the system's failure demonstrates that ``fundamental flaws were part of how the system was conceived and developed.'' Second, New Orleans exemplifies how many Corps projects destroy natural systems that provide the first line of defense against floods. Since the 1930's, Louisiana has lost about 1,900 square miles of coastal wetlands, which protect against storm surges. The Corps contributed to these wetlands losses with upstream projects that blocked the sediment necessary to nourish coastal wetlands and downstream levees that pushed the remaining sediment load out into the Gulf. Another Corps project, the Mississippi River Gulf Outlet, or Mr. GO, also damaged 20,000 acres of coastal wetlands. But more than that, community leaders, activists and scientists had warned for years that Mr. GO would funnel storm surges directly to the city, yet the Corps did not act. The initial flooding that devastated St. Bernard Parish and the lower Ninth Ward came from Mr. GO. Third, the Corps does projects that encourage development in high-risk areas, placing people in harm's way. After Hurricane Betsy hit New Orleans in 1965, killing 75 people, instead of reinforcing levees located at the city's edge, the Corps planned a new system stretching miles into uninhabited wetlands. The Corps then claimed the increased property values of the newly drained wetlands as an economic benefit. Tragically, many of these wetlands became the impoverished eastern Orleans Parish neighborhoods that suffered the brunt of Katrina's flooding. Fourth, Corps projects and project funding do not prioritize national needs. While Louisiana receives far more money for Corps projects than any other State, as Steve mentioned, the funding has not been directed to priority flood protection projects. Over the past 5 years Congress sent $1.9 billion, again as Mr. Ellis mentioned, none of which went to upgrade New Orleans' defenses. New Orleans' repeated requests for increased flood protection garnered only a small appropriation to study the problem. The flooding of New Orleans is by no means the only evidence of the need to modernize Corps projects. The flood of studies listed in the attachment to my testimony, from the National Academy of Sciences, the Government Accountability Office, the Army Inspector General, and independent experts, shows that the Corps' problems are pervasive, affecting projects nationwide. Although the problems are large, the solutions are manageable. A bill recently introduced in the Senate, S. 2288, would make necessary changes. First, input from independent experts must be integrated into Corps project planning. A transparent process should allow independent outside experts to examine whether projects will meet needs while minimizing costs and environmental harm. S. 2288 would subject all projects costing more than $25 million or projects deemed controversial to review by an outside panel of experts. This input would then receive weight in the Corps' planning process. Second, Congress should require the Corps to protect natural systems. In addition to avoiding harm to rivers and wetlands whenever possible, the Corps must mitigate any impacts that cannot be avoided. S. 2288 would require the Corps to meet the same mitigation requirements as everyone else does. Wetlands mitigation offers a host of benefits, including natural flood protection. One wetland acre, saturated one foot deep, retains 330,000 gallons of water, enough to flood 13 average homes thigh deep. Third, the Corps' planning guidelines must be modernized. The Corps is operating under 20-year-old planning guidelines that promote the destruction of the healthy natural ecosystems that defend against storm surges and flooding but allow the Corps to recommend projects in high-risk areas, luring people into harm's way and that do not adequately address loss of life. Indeed, under the current rules, the Corps can count draining wetlands as an economic benefit of a project. S. 2288 would reinstate the Water Resources Council to address these and other failings of the Corps' planning guidelines, in consultation with the National Academy of Sciences. And here I am going to accept the offer to step off my written testimony and mention the Corps cannot do this itself. The Water Resources Council established these guidelines in 1983 and then disbanded. It has not met since then. The Corps cannot fix this problem itself. Finally, Congress should ensure that the Corps gives Congress necessary information to prioritize projects that will provide vital flood protection for urban areas and critical infrastructure, and avoid damage to natural flood protection systems. S. 2288 would ask the Water Resources Council to analyze how Corps projects can reflect national priorities for flood damage reduction, navigation, and ecosystem restoration. It would require the Corps to plan projects that avoid the unwise use of floodplains and that restore and maintain natural systems that defend against flooding. We urge Congress to address these lessons so tragically highlighted by Hurricane Katrina and we urge Congress not to pass another Water Resources Development Act unless needed reforms are included. We would be happy to work with the committee to make these changes a reality. [The prepared statement of Ms. Birnbaum follows:] [GRAPHIC] [TIFF OMITTED] T9708.031 [GRAPHIC] [TIFF OMITTED] T9708.032 [GRAPHIC] [TIFF OMITTED] T9708.033 [GRAPHIC] [TIFF OMITTED] T9708.034 [GRAPHIC] [TIFF OMITTED] T9708.035 [GRAPHIC] [TIFF OMITTED] T9708.036 [GRAPHIC] [TIFF OMITTED] T9708.037 [GRAPHIC] [TIFF OMITTED] T9708.038 [GRAPHIC] [TIFF OMITTED] T9708.039 [GRAPHIC] [TIFF OMITTED] T9708.040 [GRAPHIC] [TIFF OMITTED] T9708.041 [GRAPHIC] [TIFF OMITTED] T9708.042 [GRAPHIC] [TIFF OMITTED] T9708.043 [GRAPHIC] [TIFF OMITTED] T9708.044 Mr. Issa. Thank you all. Thank you for very much staying within, I think, a good timeframe. And for all of you went off your prepared speeches, you are allowed to go off your prepared speeches and I always appreciate that. I will begin questioning. This hearing is not about Katrina. I want to make that clear. But it is inevitable that Katrina is a poster child for what the Corps should be in the future and perhaps what it has not been, and what Congress's role has not been in the past. So I hope you will all look at this as anecdotal questions, because we are using Katrina, but not that this committee is investigating Katrina. Mr. Lamont, Ms. Birnbaum's testimony claims the Corps knowingly used incomplete, outdated weather information in the design of the levees that were to protect New Orleans. I am astonished that the Corps may use obsolete data for projects the primary purpose. This is an allegation that I have heard before. Would you like to address it, please, of how old the data was, why there was not an update before the levees were produced and how it may have impacted the levees? Before you answer, I would ask that you primarily concentrate on what this committee should look to doing in the future. Again I do not want this to be about a specific event but rather, is there a flaw that either has been corrected or could be corrected and if so, what Congress would also participate in doing. Please, Mr. Lamont. Mr. Lamont. Thank you, Mr. Chairman. I am involved with the forensic investigation of what happened in New Orleans. Let me give you some quick background on that, to put this in proper context. The Chief of Engineers, General Strock, set up an Interagency Performance Evaluation Task Force composed of some of the best and brightest people within the Corps, outside the Corps, and in academia, to try to find out exactly what happened. This is the first time that I have heard, for example, that there may have been an allegation of parameters that may have been looked aside. As a professional engineer myself, and engineers in the community and the Corps of Engineers, the first thing that you are going to look at is the available information and the existing design criteria and codes at the time. A lot of these were designed back in the 1960's and I do not know this as a fact but I suspect that the design criteria have changed over time. The Interagency Performance Evaluation Task Force is also having the results of their input reviewed separately by the American Society of Civil Engineers. Mr. Woodley, who is the Assistant Secretary of the Army for Civil Works, has also established under Mr. Rumsfeld's direction a contract with the National Academies of Science to independently review what the ASCE is externally reviewing and what the Corps of Engineers Interagency Task Force is looking at. The heart of this is that the chief of engineers and Mr. Woodley are looking for the answers in a transparent fashion. We are trying to get to the bottom of exactly what happened, to determine lessons learned, and then incorporate that in the reconstitution of the levee system in New Orleans. I have no personal knowledge, sir, of the allegations that I just heard. I think this needs to be further examined as this comes about. We are looking for a June 1st date to wrap up the Interagency Performance Task Force information and provide that information to the NRC panel and also to ASCE. That is the best information I have at this time. Mr. Issa. OK. And what I would like to do is give you a copy. This is from a site Greenwire that specifically says that the Corps of Engineers knew the threat to the levees as early as 1972. It does quote that the knowledge, the research was done in 1959 for a worst-case scenario, so you were very close to accurate on it being the 1960's. I would like to give this to you so that in answer after the fact, if you could respond to the specifics of this as you look at when the design was done and whether or not the weather data of 1959 was, in fact, what was used, because this is something that--like anything you pull down off the Internet, as good as it might seem, you would certainly like to give an opportunity for fair response. So if you will make sure they get a copy of it. I would like to go to something, and I make it a point not to try to characterize--I characterize folksy things from my own life, but I try not to make things about my own district. And with 88 percent of your funds earmarked in fiscal year 2006, I think way too many of us have lived and died based on how much we earmark for our own districts. And the only thing I can say in defense is if we do not do it, the remaining amount is not sufficient for you to do those jobs in our districts that need to be done, either. But I would like to talk briefly about one that I would like your response on. The San Luis Rey River project, which is over a decade old, was a project that was to be completed in about 6 years, 5 to 6 years. It ran out of funding and additionally, the maintenance that was to be done during that time was not done. So what started off as a flood prevention levee now is, in fact, habitat in which the Corps of Engineers on an annual basis pays to exchange eggs from smart birds to dumb birds so that the dumb bird will continue to be around as an endangered species. The Corps of Engineers manually removes arrondo and other invasive species so as to minimize the flooding while, at the same time, not being able to disturb habitat in general. Isn't the best--and this comes to the real question--isn't the best way for the Corps to do a project to start the project, have full funding on the project until the project is completed, regardless of whether there is a powerful appropriator representing that district or not? And shouldn't there be a process in which a project in its development says if it is not done on this time schedule, there will be secondary or potential secondary costs? Shouldn't that be part of the whole way the Corps allocates its resources? Mr. Lamont. Mr. Chairman, if I could, I would like to ask our Deputy for Management and Budget, who is emminently more qualified than myself, to try to answer that. Mr. Issa. Well, I hit a home run if I can get the big guns in here. Thank you. Ms. Tornblom. Thank you, Mr. Chairman. It is easy to say that the Corps budget is largely earmarked, but many of those are the President's earmarks. Some of them are congressional earmarks that are added to the budget. The Corps budget is that way because each project is individually authorized. We do not have underlying generic authorization in most cases. So the program has evolved over the decades as you see it now, individual project funding. On occasion the administration has proposed fully funding projects. That was never found acceptable by the Congress, for I am sure a variety of reasons. We are, however, moving steadily toward prioritizing the project based on performance and how near they are to completion and being much more efficient about the way we use the funds, reducing the number of reprogrammings and the number of continuing contracts which require further funding in the future. Mr. Issa. I appreciate that but my real question was since I have one in my district that I have been up close and personal on, that has at least $18 million of mitigation required because on an annual basis during construction it was never cleared because funds were reprogrammed away. Now that is a personal, anecdotal, granted, but a personal observation where the Corps is now doing the work of Fish and Wildlife, spending Corps money on an annual basis in order to meet agreed-on requirements as a result of accidentally creating habitat in a project that was supposed to have 200- year flood benefits, now may have less than a 100-year flood benefit. And just so you understand why this is so significant. I have advised and the attorneys for the city that contracted and should have already had full cost of maintaining the thing, I have advised them not to accept the project because there is no basis for them to take your problem, your habitat you have created, and take it on. There is no reason for them to spend the million dollars a year. So the $18 million, if not spent, will mean that in perpetuity $1 million more a year will be spent by the Corps from your $5 billion budget to continue basically producing habitat because the city is not going to accept the output of the levees because it does not meet the spec that you agreed to, all of this because on an annual basis, the dredging was not done and the project was not completed. It was defunded and stretched out over more than a decade. Ms. Tornblom. We are trying to avoid stretching the money across as many projects, which has the effect that you just described, by concentrating the resources we do have on fewer projects that produce higher benefits for the Nation so that we can get them finished. Mr. Issa. Well, how do we do that as the Congress is really the question, and I want others to pipe in. Particularly Miss Mittal, you said, and I know all of you actually said the Corps cannot do it itself. There is a belief by the other three panelists that the Corps itself, which has 25-year-old projects that have been substantially unfunded but left on the books for all these years, is incapable of getting rid of a project and narrowing the scope to where within a $5 billion level of funding, you can do and realistically deal with. I mean it would be more than a decade if you took on no new projects to finish all the projects that you have in your backlog today. Is that a fair assessment, if I just do $5 billion into $58 billion of known backlog? Is that a fair assessment? Ms. Tornblom. Your math is correct, sir. Mr. Issa. Thank you. Mr. Ellis. And I will get to the ranking member quickly because I think we need to get her in, too. Mr. Ellis. Absolutely, Mr. Chairman. I would just point out that the $5 billion is the total Corps budget. They only have $2 billion in construction funding, so your $58 billion is actually going to take a lot longer to finish than just a decade. Mr. Issa. I am not that young. That is why I picked a number I could deal with. Mr. Ellis. I understand. But I do think that there are two points that I would like to raise about this. One is that absolutely Congress is part of the problem in giving a little bit more money to the Corps and stretching it out further over more projects. In just the fiscal year 2007 budget that the president has proposed, there were 532 earmarks that he defunded that were in the fiscal year 2006 appropriation, so that was 532 projects that Congress essentially added to that budget last year. Also---- Mr. Issa. You mean the President took away and we put back? Mr. Ellis. Well, you put in the fiscal year 2006 and then he specifically delineated those projects were not getting funding in fiscal year 2007. I imagine that a significant number of those, if not all of those, will reappear in the fiscal year 2007 budget for the Corps. The other point I would like to make is that in the Corps' planning, in their economic analyses of projects, they actually assume optimal funding when they do the economic analysis, the benefit/cost ratio. So there is some optimal timeline of building a project. If it is a $50 million project you could not spend all the $50 million in 1 year. It would take a couple of years. So let us say you take $10 million a year for 5 years to build a project. The Corps assumes that in their economic analysis. That has never happened. I do not think that has ever happened probably for a Corps project, where it has gotten every dime that it could have possibly spent in a particular year. So what the Corps is effectively---- Mr. Issa. Hoover Dam would be the clear exception. Mr. Ellis. What that actually ends up meaning, though, is that it holds the cost down and it accelerates the delivery of the benefits. So it essentially skews the benefit/cost analysis to help justify projects when, in reality, it is going to cost more and the benefits are going to take longer to be achieved. So it actually ends up skewing it to justify more projects, as well. Mr. Issa. It is clear that we could have an infinite amount of questions. As soon as Miss Birnbaum has made her comment, I want to turn this over to the ranking member so she can get her questions in. Please. Ms. Birnbaum. I just want to comment that we are supporting the idea that there needs to be some sort of legislative way to prioritize Corps projects to meet the problems you are talking about and the bill I was talking about, S. 2288, would have the Water Resources Council do that every 2 years with a specific requirement that they balance maintaining the rankings with any new really important projects that might come along. So somebody has to sit back and balance any new important priorities, but also look at that consistency of funding that you are talking about and maintaining consistent priorities at the same time. Mr. Issa. Thank you. Ms. Watson. Ms. Watson. First, I want to apologize, Mr. Chairman, for being late and not hearing the presentations. So if I repeat something that has already been addressed, just let me know. I want to thank all the witnesses for coming down and I wanted to side with you, Mr. Chairman, that we have some problems in the State of California and I do not know how priorities are being set now that FEMA is operating under Homeland Security. From testimony I heard earlier today, the kind of bureaucracy that has been set up under Homeland Security automatically has an effect on FEMA where it cannot move as quickly to respond. Now we had one of the greatest disasters this country has ever known, Katrina, Wilma, and all the rest of the ladies, female names. Mr. Issa. Guys are getting their turn now but they are underproducing. It seems the big ones are still tending to be women on these hurricanes. Did you notice that? Ms. Watson. Well, you know, let us just take the names off and have Hurricane A and B and C and get out of that debate. Anyway, in all seriousness, I am really concerned about how we set priorities. What I read in the paper is all that I know because information, vital information is not always shared with the Members of the House. Just understand that. I want to commend my chair for going after some of these issues and doing oversight because, as you know, many of our committees do not do the oversight that we are responsible for. The question is I hear the Corps of Engineers trying to repair the 17th Street Bridge levee is using material that cannot last the strength of a category 3 landfall. I would like someone to respond to that. The other thing I need a response to, I understand that FEMA has people down there and they are not given work orders but they are getting paid the big bucks. And when we talk about the funding for FEMA to address the levees, why is it we have contractors that are there sitting on ships and sitting in mobile units waiting to work but they are getting paid? Now if my information is inaccurate, please correct me because all I know is what I read in the newspapers. Really, we do not get informed. Regardless of what you hear, we do not get informed. So can someone respond? Mr. Lamont. Yes, ma'am. To give you the best possible information, if I could, I would like to turn to Mr. Tom Waters, who could bring you up to speed on that. Ms. Watson. Please do. Mr. Issa. Please come up and sit in the hot seat. Mr. Waters. Thank you. I am not going to be able to give a good, definitive answer on the debris. I am sorry but I just do not have that information available. Ms. Watson. I am not talking about the debris. I am talking about addressing the needs of the levees, the materials and the cost of doing it and the time span in which it is supposed to be done. I understand there are people down there and they are not working, but they are getting paid. Mr. Waters. Yes, ma'am. And I---- Ms. Watson. These are FEMA contracts. Mr. Waters. Right. And I just cannot answer that part of the question. I do not have enough information to provide you an answer in terms of what you are asking about the acquisition and how that is going with the debris. But we certainly can find out the answer to that and get it to you. Ms. Watson. I would like to give you something in writing and have you respond to us in writing. Mr. Waters. Yes, ma'am. On the question of materials on the 17th Street Canal, Mr. Lamont earlier gave a description of an effort that the Chief of Engineers and Mr. Woodley have commissioned using the National Academies, American Society of Civil Engineers and Corps of Engineers, probably the best group of experts ever convened in the country to examine what exactly has happened there. This is called the Interagency Performance Evaluation Task Force and they have made two public findings so far. The last one was released on March 10th. I am not going to be able to address the materials. That is a matter of public record, but the---- Ms. Watson. Excuse me. Is that public record accurate? Mr. Waters. Well, it is a public record that is being reviewed by experts and yes, ma'am. We are bringing the best-- -- Ms. Watson. OK. Well, let me tell you what I read. Mr. Waters. Yes, ma'am. Ms. Watson. That the materials that were in the levee, the one that broke, were inferior materials and now the Corps is using another material that will not withstand landfall at category 3. That is what I am reading. Mr. Waters. Yes, ma'am. And the final conclusions of what happened and why the levees were breached will be available-- the schedule for that is the first of June of this year. And I cannot address the materials. It is a work in progress, unless something is covered in the report that was published on March 10th. That is about as good as I can do, I am afraid. Ms. Watson. Thank you for nothing. You cannot address it. Is there anyone that can address the work orders for the people who were called down to work on the levees? I understand they are not working and getting paid big dollars. Anyone? If you cannot address it, then do not respond. Mr. Lamont. We would be happy to take the question and answer it for the record to the best of our ability, ma'am. Ms. Watson. I will put it in writing. Mr. Lamont. As Ms. Tornblom has just pointed out to me, the issue relative to FEMA, we have no knowledge about. Ms. Watson. All right. Mr. Lamont. But we will investigate that and get back to you on that. Ms. Watson. Fair enough. I will send it to you in writing, I will share with the chair and other members of our committee, and I will share the response. Thank you. Mr. Issa. And I am going to ask unanimous consent that all Members, present or not present, be able to have followup questions and submit them to each of you in writing. Additionally, I would ask unanimous consent that the record be left open for 2 weeks or extended further by the majority and minority, if necessary, to allow for that. I will tell you that the efficiency of this has been excellent, but there is no question that we are going to have additional followup questions. I would like to thank you for beginning the process with us. I would like to summarize, in closing, that it appears very much at the end of this hearing, as it began, that the Congress is a willing and active culprit in the poor performance of the Corps' projects in that clearly if we have $58 billion of backlog projects, $2 billion in funding, and a larger and larger amount of funds that find themselves unintendedly going to the studies, the mitigation, various activities under the Endangered Species Act and others, as a result, those continue on an every-year basis while, in fact, the project itself may be at a virtual standstill. So I think that will characterize a lot of the questions we are going to have, not just for all of you but for the Members themselves as we begin to find out how we can one, eliminate a $58 billion backlog or two, fund it in a reasonable period of time. I will close, with the ranking member's permission, by letting you all know that when I entered Congress and actually when Ms. Watson entered Congress we had a similar backlog in military housing. We had a policy of talking about how special the troops were but not building them housing. Using public- private partnerships and some other techniques, we have substantially reduced that. Hopefully, with the great minds that exist on both sides of this issue, we can begin to look at how we could eliminate the backlog with Congress of those that must be there. Last and least, I would charge all of you to, whether asked specifically or not, you are being asked now to give me as many projects that are still on the books for as many years as you can that, in fact, you believe should be eliminated and reauthorized if and only if Congress is willing to put substantial new dollars. We will followup with the rest in writing. I want to thank you for your time. I want to thank the audience, who came here to participate and to listen, for their attentiveness. And with that, I would yield to the ranking member. Ms. Watson. Thank you so much. My concern is this. I was not here when you discussed the projects and the timing, and so on, but we know that there are climate changes and we know that we are going to in a matter of few months get back into another hurricane season and we are going to have devastating hurricanes. And when we talk about the backlog, what are we doing to take into consideration if we are going to dump money into these projects, to do it in a more timely fashion? I take my own State of California. We are always prone to earthquakes. We know the big one is coming. Every 19 years we have a huge earthquake. So I hear about the backlog. I hear about the funding, Mr. Chairman. I hear that we are cutting funds. What are we doing to be ready in case there is another hurricane? What are we doing to address the fact that we are going to have another earthquake? We have them every day. I just want to know what kind of planning and thinking goes into it. Some things cannot be put off, and let me give you an example. In 1994 we had a huge earthquake in California. The freeway that went down, went down in my district, right, in the center of my district and affected the 405, affected the 10, affected the 5, the I-5, and so on. And the Governor had a plan and we were in the third segment. I said you cannot do that. I said you have to fix all freeways and you have to be able to see that they can withstand an earthquake that goes to 7. By the way, there is no 10 on the Richter Scale. It only goes to 9. So you have to retrofit all of them at the same time because we never know where the next--we are on a fault line, so putting it off, you know, project one over several years and project two, project three, this lays us bare. So I am wondering can anyone respond to how we lay out what priority fixing of levees receives? We are having tremendous problems in the northern part of our State. I was just up there Sunday around the Sacramento area and we have flooding because the levees did not stand up. So how do you think this through and how do you plan? How do you set priorities? Can anyone respond? Mr. Lamont. Ma'am, I will give it a try. Ms. Watson. Thank you. Mr. Lamont. It is clearly a dynamic world that we are living in right now. There is definitely a limitation of resources that are available to fund projects. This is myself personally speaking as an engineer. This country is probably faced with looking at the infrastructure that is out there, looking at it from a regional or national basis, and then making some hard decisions by the administration, working with the Congress, and that is about as far as I would want to go right now. Ms. Watson. Do you want to add anything? Ms. Tornblom. I mentioned earlier what we are using to prioritize the construction projects, the remaining benefit/ cost ratios, looking at the performance, trying to finish projects that are under way. In terms of the levees you are speaking of, we are just right now taking another look at that since the Governor has elevated the issue and I expect some movement on that soon to raise the priority of that. We have been talking about it but you are probably right; we have not done much about it yet. Mr. Issa. OK. And with that, I am going to use the power of the gavel to thank you all and to say that I have no doubt this is not the last hearing on this subject. Ms. Watson. And may I have my opening statement included in the record? Mr. Issa. We made that by unanimous consent when I sat here alone. [The prepared statement of Hon. Diane E. Watson follows:] [GRAPHIC] [TIFF OMITTED] T9708.045 [GRAPHIC] [TIFF OMITTED] T9708.046 [GRAPHIC] [TIFF OMITTED] T9708.047 Mr. Issa. Thank you. With that, we are adjourned. [Whereupon, at 4:05 p.m., the subcommittee was adjourned.] [Additional information submitted for the hearing record follows:] [GRAPHIC] [TIFF OMITTED] T9708.048 [GRAPHIC] [TIFF OMITTED] T9708.049 [GRAPHIC] [TIFF OMITTED] T9708.050 [GRAPHIC] [TIFF OMITTED] T9708.051 [GRAPHIC] [TIFF OMITTED] T9708.052 [GRAPHIC] [TIFF OMITTED] T9708.053 [The Army Corps of Engineers Response to Chairman's Questions follows:] [GRAPHIC] [TIFF OMITTED] T9708.054 [GRAPHIC] [TIFF OMITTED] T9708.055 [GRAPHIC] [TIFF OMITTED] T9708.056 [GRAPHIC] [TIFF OMITTED] T9708.057 [GRAPHIC] [TIFF OMITTED] T9708.058 [GRAPHIC] [TIFF OMITTED] T9708.059 [GRAPHIC] [TIFF OMITTED] T9708.060 [GRAPHIC] [TIFF OMITTED] T9708.061 [GRAPHIC] [TIFF OMITTED] T9708.062 [GRAPHIC] [TIFF OMITTED] T9708.063 <all>