ArcelorMittal Calls for Enactment of the Water Resources Development Act

The enormous undertaking by the US and Canadian Coast Guard to clear the Great Lakes of ice this year underscores the need for passage of the Water Resources Development Act (WRDA). Over 200 million tons of cargo, including iron ore and coal for steel mills, are shipped every year through the Great Lakes, according to the Great Lakes Environmental Research Laboratory. The WRDA provides authorization and funding for the US Army Corps of Engineers to address water infrastructure needs including the building, upgrade or repair inland waterways and ports. The Senate passed the WRDA in May 2013 and the House passed the Water Resources Reform Development Act (WRRDA) in October, but enactment of the bill is held up over a proposed increase in user fees.

It is proposed that the current fee of 20 cents per gallon on diesel fuel paid by 300 barge and towing companies be raised by 26- to 29-cents per gallon. The fee supports the Inland Waterways Trust Fund which provides funding for new construction and major repairs of priority navigation projects on US inland waterways. An increase of 6 cents would add on average $25.2 million annually to the Trust fund. That amount would be matched by the government for a total of $50.4 million annually. A 9-cent increase would add $37.8 million, or $75.6 million total with government matching.