Infrastructure funding. And in land waterways have the impact of the panama canal expansion on us ports. It is an hour and 45 minutes. [inaudible conversations] the meeting will come to order. And i happen to be one of those. And i recognize that this time, senator cardin. And introduce pleasure to have secretary ron here before the committee. Secretary ron, secretary of transportation in maryland. As i was telling as a chairman, this is the third state, secretary of transportation. Department of transportation and new mexico state highway and transportation, cant hold onto a job. Very proud of the work in maryland. And the organization in maryland with the secretary of transportation is responsible for coordinating modes of transportation. Mister ron has done an outstanding job in directing that department, very large budget. He also served as american state transportation officials, 20072008 and national leadership, proud to have him before the committee. Very good. Recognize senator merkley for your introduction. Thank you, mister chairman and Ranking Member for discussing parts of investing in our ports and waterway infrastructure. I am pleased to introduce rick goche from my home state of oregon. Here to testify. Not only is he a port commissioner but has been a fisherman and small businessman for almost 50 years, involved in many aspects of the fishing community. He owns and operates a fishing vessel and owns a sacred season a brand. He is chairman of the commission, president of aquatic resources, Consulting Group of Seafood Holding and shipping. He is chairman of fish, crab, statewide fisherman organization. Very few people know as intimately as rick the importance of maintenance for our small ports, navigation channels and jetties. In fact rick should probably be home preparing his boat for annual maintenance but he is here on behalf of fishermen whose lives and livelihoods depend on this funding to make sure they can get to safe harbor. He has crossed every bar between San Francisco and canada and is here to advocate for the Army Corps Budget to make sure our small ports day the economic driver of our coastal communities. Thank you for being here, commissioner, appreciate it. Welcome, rick goche. Senator shelby, would you like to introduce your thank you . Thank you, Ranking Member cardin, great opportunity to introduce james lyons, director and ceo of state Port Authority, glad he could join us here today. I have known jimmy and his family for many years and the work he has done at the Port Authority, the port of mobile has not only been wilds to our state but the gulf coast region. Jimmy is, as i said, the ceo of Alabama StatePort Authority, the port of mobile is the 10th largest us seaport, importer and exporter of domestic trade, total volume. The ports largest commodity as crude oil, steel and petroleum. In any given year 52 to 67 million tons of cargo moved annually through their support and the number continues to grow. James lyons continuously worked to meet the growing demands of post panama market. In 2014, the Port Authority submitted a request to the corps of engineers to consider increasing the depth and width of the Mobile Channel harbor, the core subsequent began general revaluation report that examines potential cost and benefits associated with the deepening and widening of the port, the study is expected to conclude in 2019. The port of mobile provides access to nearly 15,000 miles of in land waterways, in mississippi and valley forge, simply put, the port serves, and mobile. And to ensure the industry and businesses big and small, and the global marketplace. It is Important Congress make infrastructure legislative a priority. The core place as we all know, and modernizing the nations waterways, core projects provide 100 billion annually in net economic benefits, this illustrates job creation and Economic Growth associated with such investments. Im thankful for the committee today under your leadership, to understand the challenges we are facing and look forward to your testimony. We have mister grant freeze grant homefreeze. I have known his dad since longer than he was alive. It is a pleasure having you here in the capacity of what you are doing in oklahoma. He is a Real Estate Developer and investor and homebuilder. 10 years ago grant began the process of founding and developing in oklahoma and some of you are not aware of the fact, more miles of freshwater shoreline than any of the 50 states, did you know that . In carlton landing, he embarked in an ambitious project. And also the founder and principal of Traditional Craft homes. And special specific production homes, developing a project, grant has become involved in a community of lake developers in the region and can speak to his and others experiences of getting a project started. Transportation infrastructure subcommittee here on subject that is important to our own nation including oklahoma. The Water Resources provide our economy with a platform for the movement of goods, facilitate trade and bring jobs and other benefits to the communities that surround it. The corps of engineers projects generate 109 billion annually and economic benefits, and generate 34 billion in revenue to the United States treasury. Unfortunately like most of our infrastructure our Water Resources are aging and in need of repair and upgrades. Recognizing this need the last two congressman, congresses work to authorize new project and create reforms to provide federal funding and private investment, something we couldnt do not long ago. Today at sears will ask for the benefits of Water Resources provided to local and National Economies to be examined and the continued needs that must be met so the us can be globally competitive and provide jobs and other local benefits here at home. In oklahoma we know these benefits firsthand on the mcclellan arkansas connecting oklahoma with Mississippi River and the rest of the world. And spans arkansas and the eastern part of oklahoma. Between the port of muskogee and tulsa port, oklahoma ports are home to over 70 companies and industries shipping 5. 79 tons of cargo with the values of 22. 56 billion, employing more than 6500 oklahomans and creating an Overall Economic impact of more than 400 million to our state each year. The ability to move all kinds of goods without relying solely on one form of transportation keeps shipping costs low, benefiting companies that ship their wares regionally and globally and benefiting consumers who can stretch their dollars further. In addition to moving products and manufactured goods, other army corps projects help our communities by providing for flood Risk Management, water storage, hydropower and recreation. Every authorized use of a core project allows the surrounding communities to realize a greater potential for Economic Development and improves the quality of life for those who depend on the infrastructure, either directly or indirectly. The challenge before todays uss understand the full need for repairing and maintaining our current infrastructure and the need for new projects to ensure that the United States remain globally competitive and our communities continue to reap the benefits of the army corps infrastructure. With the topic of infrastructure in the news during the election cycle and within the new administration, that time is that worked toward Solutions Solutions to meeting these needs. So i think our witnesses for being he here today. I want to make one comment about the attendance here. This is taking place at the same time were having a Senate Armed Services committee which i have been Ranking Member so its difficult to be two places at once. They will be going back and forth. Senator cardin. First, try to let me say what a pleasure it is to be sitting next to you on this command as we can be our first public hearing of our subcommittee. Senatosenator inhofe and i camee congress on the same date in the house of representatives, and weve been friends ever since. Its a real pleasure to serve with him on the subcommittee because im going to let you in on a secret. Senator inhofe is one of the most progressive people i know in this country on infrastructure development. I told them i always told you id be glad to come to a state to campaign for him but he told me he would prefer me to stay in maryland. [laughing] but the two of us share a passion for the importance of Water Infrastructure, roads and bridges, Transit System for the entire modernization of our infrastructure because both of us understand it means jobs for it means u. S. Competitiveness. It means america having the ability to compete globally. Thats what it means and recognize the importance of the governmental part, the private sector part in putting this all together. I particularly want to just acknowledge my pleasure to serve as the Ranking Member with senator inhofe on the subcommittee. I think its appropriate our first hearing deals with the role of Public Private sector and Water Resources because we need both. You heard centered i enough braa bit about his state on water projects. Well, i could spend the next two hours talking about the state of maryland. Im not going to do that but am going to conflict again secretary rahn for the leadership we have and are maryland port. I had a brief on the maryland for last week. Were doing extremely well. January 2017 the port of baltimore hit another record month. Where the closest to the midwest than any other east coast port which is maryland, gives maryland an advantage. We rank ninth overall in value of cargo. Baltimore is well known for the cars to come in and out of that port as the largest in that region. Were significantly increasing our capacity on container, we handle a great deal. One of the facts, i just had to put this in the record to brag, the general of commerce ranked baltimore number one in the nation for container productivity for three years in a row with the port averaging 71 container movements each hour. Where pretty efficient and were proud of our efficiency in the port of baltimore. Under our state leadership we move quickly, recognizing that expansion of the panama canal with move our larger vessels. Him him baltimore is one of only four eastern u. S. Ports with a 50foot channel and a 50foot container berths allowing to accommodate some of the largest container ships in the world. On july 19, 2016, the Cargo Carrier from taiwan was the first supersized container ship to reach baltimore through the panama canal. We are ready. We are ready, and its critically important to our economy. Ive got some numbers and this will be typical just before in our country but the business of the port generates 13,000 plus jobs, director jobs, with more than 127 jobs in total in maryland are linked to the port activity. This is very important to our economy. 3 billion of wages and salaries contributing more than 310 310 million for state and local tax revenues. This is important business for a senator from maryland, its an important business for the senator from every one of our states and thats why were particularly pleased to have this hearing. I do want to just point out that we cant do this just by one of the stakeholders alone. We appreciate the role the federal, place. Its very important the direct help of the Water Resources and will talk today, general, talk a little bit about the next important leg in maryland which is the dredging materials and reclaiming of lance, my predecessor, send address our brains, was directly responsible for popular either which is been a Great Success and a model for the nation on allowing reclaiming of land as well as location for dredge material. We now need to move on to midday which are been studied and i think were on track but well talk about it but we also need the roads and bridges, we also need the rail and we also need a private sector. This hearing is an attempt to try to understand we need all the above. And hope as result of this hearing and for the things that we have that will be able to get the investments by the public and private sector so america can indeed be competitive in our port and Water Activities so we can get the job growth that the people of this country need. Thank you, senator cardin. Let me just say that we have worked so well together for so many years and we work on things that actually become productive. I can remember confession is good for the soul, and if youll pardon me for bragging a little bit, when we had been having our meeting with the chairman of the republican side, happens every tuesday. We had them every tuesday at 12 15. When it comes to my turn i always say, now from the committee that actually does things. Because we did. I would say to my friend, senator cardin, we had the fast act. We have the water act. We had the chemical act. Those are three of the four biggest objects or bills that were actually pass. We are used to accomplishing things. What were going to do because with eyewitnesses, we have many such a senator capito and i have other committees at the same time, were going to try to get you to adhere to if you would a fiveminute maximum on your comments. And, of course, your entire statement will be made a part of the record and we will start with general semonite. Chairman inhofe, Ranking Member cardin and distinguished member of the subcommittee, i am general semonite, commanding general of the army corps of engineers and the 54th cheech of engineers. Im pleased to be a to discuss the role of the United States army corps of engineers Civil War Program and associated value of water Resource Investment across the nation. The corps has a significant role in the dillman of the nations Water Resources and carly manages an Extensive National water resource infrastructure portfolio including maintenance of 13,000 miles of coastal navigation channels, 12,000 miles of inland waterways, 715 dams, 24 241 blo, 14,000 miles of levees and hydropower plants at 75 locations. These projects will provide Risk Reduction from flooding in our River Valleys and along our coast. Facility of the movement of approximately 2,000,000,000 tons of waterborne commerce and provide up to 24 of the nations hydropower. There are about 250 million 250n recreational visits a year making the corps one of the top federal recreation providers. Corps water Resource Investments bring significant value to the nation. For example, United StatesMaritime Transportation industry supports proximally 2 trillion in commerce with over 2,000,000,000 tons of commerce moving through harbors, channels and waterways constructed and maintained by the court. Approximately 98 a nice dates overseas trade by weight, 99 by volume enters or leaves the United States through a u. S. Coastal port. The inland waterway supports this commerce by facilitating the export of approximately 60 of u. S. Grain, 22 of goal and 22 of petroleum products. Corps Risk Reduction products and activities provide resilient Risk Reduction infrastructure and prepare individuals and communities for potential floods. The corps is responsible for the construction and operation of 383 major dance and reservoir projects that regulates floodwaters in the nations major rivers and tributaries, and is constructed over 14,700 miles of levees in partnership with local nonfederal partners. Additionally the corps is construct over 90 major Coastal Protection projects onto one of 40 miles of the nations coastline that provide storm damage reduction benefits to vulnerable coastal communities. Over the past ten years it is estimated on average the corps Risk Management reduction projects have prevented over 65 billion worth of flood damages to urban and Rural Communities across the nation. The corps maintained recreation facilities at over 400 of its multipurpose projects. The corps has a long history of developing partnerships within existing recreational authorities. It leases about half of the 5000 recreation sites at these multipurpose projects to the public and private entities, including private sector commercial operators, state and local governments. Private recreation sites include approximately 562 privately owned marinas, resorts, campgrounds, but rants, fuel docks, Convenience Stores and of the public use areas. The corps has constructed much of this infrastructure in the first half of the 20 century and some of it is experiencing various stages of degradation and disrepair. In fact, proximally half of the corps locked and dan facility for more than 50 years old and bring operations and maintenance challenges commensurate with their age. The corps dedicates a signific