Mason City Globe Gazette, IA 10-29-07 Congress proposes $3.7 billion to upgrade Mississippi’s locks By MATTHEW WILDE, For The Globe Gazette Congress says it’s time to give the upper Mississippi River a face-lift. Lawmakers recently passed the Water Resources Development Act that would, among other things, authorize $3.7 billion to double the size of seven locks and improve the river’s ecosystem. The river is a vital link in the food chain and Iowa’s economy, bill supporters say. Fixing its nearly 90-year-old crumbling infrastructure means billions of dollars worth of grain, fertilizer, coal, road salt, building materials and other goods can be shipped more efficiently. That means more money in the pockets of Iowans and a better quality of life, supporter say. “It’s a very important bill because it contains critical funding to modernize our aging system of locks and dams along the Mississippi River to bring them up to 21st century standards,” said Rep. Bruce Braley of Waterloo. “And that’s going to be very important to the Iowa economy.” Members of Iowa’s congressional delegation expect the legislation to land on President Bush’s desk in the next week. The administration has indicated Bush plans to veto the $23.3 billion bill for water restoration projects nationwide, calling it a budget buster. However, due to bi-partisan support for the legislation — 81 votes in the Senate and 381 votes in the House — Braley expects Congress will override the veto shortly after the president officially stamps his disapproval. A two-thirds majority is needed. Republican U.S. Sen. Charles Grassley, who sides with Bush on many issues, said farmers rely on the river the most to get corn and soybeans to foreign buyers, but the aging locks — most are 600 feet long — are too small to accommodate modern 1,100-foot tows. “We have found ourselves falling further and further behind, so these infrastructure improvements are needed to remain competitive in the world ag economy,” Grassley said. Iowa’s senior senator said the president thinks the Mississippi upgrades are needed, but other parts of the 434-page bill are getting in the way. An administration policy statement concerning the bill says there’s too much “wasteful spending” and the bill fails to ensure projects yield high economic and environmental returns, among other things. Some conservation and taxpayer watch-dog groups agree. “In a time when fiscal restraint is much needed, the additional spending authorized in this bill, such as provisions for local wastewater and drinking water infrastructure projects (hundreds of millions of dollars), is unacceptable,” according to a White House statement. Braley, a first-term Democrat, doesn’t buy it. He thinks politics are getting in the way of a bill that will help Iowans and the environment. The president OK’d plenty of large spending bills when the Republicans were in control of Congress, Braley said. “Now he’s apparently found religion on fiscal conservatism,” he said. HISTORY AND PURPOSE OF THE LOCKS AND DAMS The 27 locks and dams on the Upper Mississippi River — a 858-mile stretch from Minneapolis to the junction with the Ohio River south of St. Louis — were primarily constructed in the 1930s and ’40s. At the time, Congress viewed the Mississippi as an untapped resource and wanted to make it a viable transportation artery. Commerce was happening on the river, just not in large quantities. Traffic was often at a standstill, even in the summer, due to low flow. At times people could walk across it from Iowa to Illinois. To solve the problem, dams were built to hold back water to create a navigable channel for boats and barges. The U.S. Army Corps of Engineers, which maintains the river and operates the locks, still needs to continually dredge the waterway to maintain a minimum 9-foot channel for barge traffic. Locks allow barges and boats to step up or down from one water level to another. River traffic enters a concrete chamber, water is pumped in or out to match the level of the water the vessels will sail on next, and the boats exit. The 600-foot locks require modern 15-barge tows to double lock, or be split in two so each half can pass through. That takes about 2 hours instead of the 30 minutes it would take if tows could pass through in one piece. To alleviate downtime and congestion, the bill authorize five new 1,200-foot locks be built between Keokuk and St. Louis on the Mississippi River and two on the Illinois River. Corps officials said the amount of tonnage moved in these areas warrant an expansion, but none to the north at this time. “Nobody knew how much shipping would we would have today,” said Ron Fournier, Corps spokesman for the Rock Island district, which oversees the river from Guttenburg to Saverton, Mo. Corps statistics show 2.3 million tons of cargo was shipped in the Rock Island district in 1948. By 2005, 27.4 million tons moved. Millions of dollars worth of upgrades and new construction has been done on the system since it was built, but Fournier said a lot more work is needed. He said it’s not uncommon to see concrete falling off and electrical systems going bad. For example, the hinges on Lock and Dam 15’s auxiliary lock doors are so bad it’s been shut down for three years for fear the doors might fall off, he said. Paul Rohde, vice president of the Waterways Council Inc., an advocacy group for inland waterways improvements, said, “We’re living on borrowed time. They’re (locks) more than 80 years old for crying out loud ... it’s amazing they’re still performing admirably. The Corps is just trying to keep them operational.” Importance to Iowa Farmers and urban residents depend on the river to transport all kinds of goods to and from the state. While barge industry officials say the Mississippi is the most efficient way to haul goods — the average 15-barge tow can haul the same amount as 225 rail cars and 900 semi trucks — lock expansion will make it better. And increased efficiency, industry officials say, means lower shipping costs and more money for end users. Larry Daily, president of Alter Barge Line Inc. of Bettendorf, has been pushing for river upgrades for 16 years. He doesn’t deny that new locks will help the profitability of his businesses, but they will also help his customers. Daily said the revenue forfeited by Iowa corn growers alone last year due to shipping delays is staggering. At a minimum, he said, his boats waste 40 hours double locking and many more waiting at a lock during a round trip voyage on the upper Mississippi. That means extra wages, fuel, wear and tear on equipment, etc. Shipping expenses directly reflect what commodities are worth or cost. For example, transportation on the Mississippi costs about 15 cents a bushel more than on the Ohio River, where there are 1,200-foot locks throughout. That’s 15 cents per bushel that didn’t go into farmers’ pockets, Daily said. Last year, the Iowa Corn Growers Association estimated 875 million bushels of corn left the state destined for international markets. The figures show Iowa farmers may have lost at least $15 million last year and possibly more than $30 million through higher shipping costs. It adds up year after year, officials said. DECLINING NEED DUE TO ETHANOL? Last year, Iowa’s leading grain economist, Bob Wisner from Iowa State University, speculated that the burgeoning ethanol industry could turn Iowa into a net importer of corn. Iowa’s soybean acres also dropped by 13 percent this year. Bill opponents wonder why spend billions on the river if the two commodities representing the lion’s share of barge freight from Iowa will decrease or become nonexistent? “The growth of biofuels means less grain going down the river,” said Jeff Ruch, executive director of the Public Employees for Environmental Responsibility. Proponents dismiss this argument, saying that doesn’t change the fact river upgrades are needed. Reports also indicate ethanol expansion has slowed. Even if grain exports diminish — which doesn’t appear to be the case as commodity groups report record commitments this year — barge officials expect to be hauling more dried distillers grains, a byproduct of the ethanol process, and ethanol itself. Tim Burrack, who farms near Arlington, has been fighting for river upgrades for almost two decades as part of the National Corn Growers Association. He said 50 percent of fertilizer used to grow crops comes to Iowa via barge, along with a good amount of steel, cement and salt used to keeps roads clear of ice. Ten percent of the electricity produced in the nation comes from coal shipped on barges. “If you live in the Midwest, you’re impacted by the river in some way or form,” Burrack said. OPPOSITION TO THE BILL Despite claims by the barge industry that using inland waterways add $5 billion a year to the U.S. economy, anad reduced road congestion and air pollution, the bill detractors say it’s nothing more the pork-barrel spending. The Bush Administration says Congress overspent by at least $8 billion. The conservation-based Sierra Club thinks new construction and adding traffic on the river will only hurt the environment despite a section in the bill to spend $1.7 billion to improve the river’s ecosystem. Public Employees for Environmental Responsibility believes declining river traffic just doesn’t warrant a major expansion project, just needed repairs. In a document e-mailed to the Waterloo-Cedar Falls Courier by White House officials this week, the administration voiced its dismay that the compromise version of the water resource bill was significantly higher than either of the versions originally passed by the House and Senate. They were $15 billion and $14 billion, respectively. Tax dollars, though, will only pay a portion of the project on the upper Mississippi River. According to the bill, half of the $2 billion authorized to build new locks and other infrastructure will come from the Inland Waterways Trust Fund, which was created by extra diesel fuel taxes paid by barge and tugboat companies. The federal government is slated to pay 65 percent to 100 percent of the environmental improvements, which is authorized at $1.7 billion. Ed Hopkins, director the Sierra Club’s environmental quality program, thinks the bill overall will do more harm than good. “We do support environmental restoration projects, but not the expansion of (locks),” Hopkins said. “The real issue is if there’s a need for new projects or the existing infrastructure is there to meet the demand.” PEER contends Mississippi River barge traffic is on a 17-year decline through the first half of 2007 and throwing tax dollars at the river is a waste. “It’s a (multi) billion dollar absurdity,” Ruch said. “If the barge industry and ag groups think it’s so important, they are free to pay for it themselves.” THE FUTURE Even if lawmakers override the president’s threatened veto, there’s still no guarantee the bill will be funded as proposed. Money still needs to be appropriated by Congress each year. Time is also an obstacle. River officials said it will take at least 20 years to build the new locks, if the project is properly funded. Daily is confident Congress will do its part, though he says the bill isn’t perfect because at this time lock expansions are only planned south of Iowa between Keokuk and St. Louis, and the Illinois River. That doesn’t mean Iowa’s section of the river won’t benefit from the bill. Freight leaving Iowa will eventually pass through the new locks, improving shipping efficiency, which should lower barge rates, he said. “It’s the best we got. The next fight is over money,” Daily said. “We’re bullish enough to buy 50 new barges worth $23 million.” Matthew Wilde is a reporter for the Waterloo/Cedar Falls Courier, which like the Globe Gazette is a Lee Enterprises newspaper. Reach him at 319-291-1579 or matt.wilde@wcfcourier.com.