My name is Cline Jones, I am a resident of Athens, Alabama and the Executive Director of the Tennessee River Valley Association (TRVA), a non-profit public interest organization that has strongly supported and partnered with the Tennessee Valley Authority for nearly a half century.

The TRVA membership consists of towing companies, barge lines, port & terminal operators, municipalities, industrial water users, and concerned citizens from across the Valley region.

As an organization that represents a diverse group of Tennessee River users, the TRVA very much appreciates the opportunity to speak here today.

Members of the Board and Mr. Kilgore, according to a joint study by the U.S. Geological Survey and the TVA, the Tennessee River is the most intensively used river system in the country.  Approximately 97 percent of the water currently withdrawn from the river is returned to the system for use downstream, making our region one of the lowest overall water consumers in the United States.

Economies throughout the Tennessee Valley Region depend on the river system for low-cost power generation, municipal & industrial water supply, efficient waterborne transportation, recreation, tourism, environmental preservation, and jobs.  One hundred thirty-seven municipalities and fifty-eight industries in the Tennessee Valley rely on withdrawals of water from the Tennessee River System.  Water is also withdrawn for TVA power-plant cooling and for irrigation purposes.

In recent years, in excess of fifty million tons of commodities have been shipped annually via the Tennessee River.  One hundred-eighty ports and terminals on the Tennessee support industries that provide thousands of beneficial jobs for valley residents.

As the population of the southeast grows, municipalities and regional water councils from outside of the Tennessee River basin are desperately searching for a reliable source of municipal and industrial water supply to support their expected growth.  Increasingly, the Tennessee River is being targeted to accommodate those forecasted needs.

Recent proposals have called for large withdrawals of water from the Tennessee River that will result in interbasin transfers, the practice of pumping fresh water from one river basin to another.  One problem with such transfers is that once the water is used, it is discharged into the receiving basin rather than returned to the originating river basin.

In addition to the TVA 26a permitting process for water withdrawals from the Tennessee River, this Board has acknowledged the potentially adverse effects of interbasin transfers by adopting policies that require board approval of any interbasin transfers in excess of 1 million gallons per day.

For nearly eight decades, TVA has successfully managed the River System by balancing the needs of the many beneficiaries, including the nine million residents in the TVA Region that are dependent in many ways on the river system.  Large volumes of water transferred away from the Tennessee River basin will threaten that critical balance.

While the TRVA applauds this Board’s actions establishing the one million gallon per day threshold for board action, we encourage careful consideration of all applications and proposals that will result in interbasin transfers of water out of the Tennessee River basin.  Especially during low water and in drought years, such transfers could potentially result in devastating effects on water users and economies throughout the Tennessee Valley.  Thank you.

Members and guests of the Tennessee River Valley Association (TRVA) and its Tennessee-Cumberland Waterways Council (TCWC), gathered in the beautiful Gatlinburg, Tennessee on October 17-18, 2011 for the TRVA 45^th Annual Meeting.

Since 1967, the Tennessee River Valley Association has served as the only unbiased non-partisan unified voice for overall common sense water resource policies in the Tennessee and Cumberland River Valleys.  The membership of TRVA consists of towing companies, barge lines, port and terminal operators, municipal and industrial water users, and concerned citizens from across the region.

Economies throughout the Tennessee and Cumberland Valleys rely on the twin rivers system for low cost power generation, municipal & industrial water supply, efficient waterborne transportation, recreation, tourism, environmental preservation, and jobs.  The purpose of TRVA Annual Meetings is to bring together river users, representatives of related government agencies, and public officials in a comfortable, relaxed atmosphere to discuss topics important to the region.

This year, two primary concerns were at the center of discussions related to the river systems and their impacts on the economies of the region.  1) Without an immediate resolution to its funding crisis, the insolvency of the Inland Waterways Trust Fund (IWTF) will likely result in the suspension of lock construction at both the Chickamauga Replacement, and the Kentucky Addition Projects on the Tennessee River.  2) As the population of the southeast grows, municipalities and regional water planning boards are increasingly identifying interbasin transfers of water from the Tennessee as a solution to accommodate their forecasted needs.

In a USACE Nashville District presentation, Tom Cayce, Chief of Programs and Project Planning briefed TRVA on Corps activities in the Nashville District including efforts related to reducing impacts of the flooding in the Spring of 2011, and progress at the Wolf Creek and Center Hill Dam Foundation Remediation Programs on the Cumberland River System.  Mr. Cayce also reported on the status of the Kentucky Lock Addition on the Tennessee River.  An IWTF cost-shared project that is not receiving funding, construction at Kentucky Lock is moving forward as result of $79.6 million in American Recovery and Reinvestment Act (ARRA) funds.  ARRA funding will provide for excavation and construction of 9 of 61 monoliths that will move the project into FY13.  Without a resolution to the funding crisis of the IWTF, when ARRA funds are exhausted, the project will be mothballed.

Wayne Huddleston, Project Manager at the Chickamauga Lock Replacement updated TRVA on the status of efforts to replace the deteriorating existing lock near Chattanooga on the Tennessee River.  An Alkali Aggregate Reaction (concrete growth) has plagued the lock since its completion in 1940 and the likelihood of a catastrophic failure is increasing as a result of the misalignment of critical components of the structure.  Mr. Huddleston reported that onsite construction has virtually halted, and the only work currently ongoing is ARRA funded offsite fabrication of mitre gates, valves and guide walls that when completed will be stored at various Corps facilities on the Tennessee River until lock construction is complete.  An IWTF cost-shared project, funding for lock construction will not be available in the near future, as with the Kentucky Lock, without a solution to the IWTF funding crisis.

Dr. Larry Bray, Research Professor for the Center for Transportation Research at the University of Tennessee told conference attendees that members of the public do not fully appreciate the value of the 9-foot navigation channel that exists on the nations Inland Waterway System.  Referring to the United Launch Alliance production facility in Decatur, Alabama where Delta and Atlas Rockets, used to launch commercial and military payloads, are produced then shipped via the Tennessee, Ohio, and Mississippi Rivers in route to launch sites in Florida and California, Bray said, “Americans who use cell phones or receive weather reports benefit from commercial navigation.”  Dr. Bray also pointed out the financial benefits to waterfront property owners who realize stable and increased values associated with navigable waterways, according to results of recent studies by the University of Tennessee.

In recent years, the Tennessee River has been targeted as a source of water for municipal and industrial users far removed from river’s basin.  Recent proposals by the State of Georgia have included moving the Georgia/Tennessee state line one mile to the north in an effort to gain riparian access to the waters of the Tennessee River, and offered the trading of water from the Tennessee for high-speed rail access between Atlanta and Chattanooga.  Areas in northwest Georgia are expected to exhaust their available water supply by as early as 2017 while Metro Atlanta will likely outgrow their supplies within 20 years.  The Tennessee Valley Authority’s (TVA) Manager of Water Supply, Gary Springston told TRVA that recent policies adopted by the TVA Board of Directors will require board approval of any potentially harmful interbasin transfer of water from the Tennessee of more than 1 million gallons per day.  Any withdrawals of water from the Tennessee resulting in an interbasin transfer must first meet the requirements of TVA’s 26a permitting process that includes home state approval of any withdrawal; NEPA review; notification and comments by all neighboring states that will be affected by the withdrawal and; an EIA or EIS based on need.  Mr. Springston stated, “Even if Georgia is successful in moving the state line to gain access to the Tennessee, they will still need to meet TVA 26a permitting requirements to be able to withdraw water from the Tennessee River.”

US Congressman Chuck Fleischmann (TN3), a freshman member of the House Committee on Transportation and Infrastructure offered the Keynote Address of the conference.  In his comments, primarily related to the Chickamauga Lock Project, Congressman Fleischmann indicated his efforts to secure funding for the Federal Project located in his district are ongoing.  “I have spoken with Chairman Mica (T&I Chairman), and I have spoken with Speaker Boehner about the need to fund this project” Fleischmann said.  Referring to the traditional methods used to direct funds to important projects in individual congressional districts and a member of the conservative freshman class in congress, Fleischmann said, “Earmarks are gone forever and they are not going to come back, the solution rests in fixing the Inland Waterways Trust Fund.”

In addition to the program that included informative guest speaker presentations, the TRVA Board and Membership elected Officers and Board members for 2012.  TRVA elected Ron Coles of W.R. Coles and Associates of Nashville, Tennessee as President and Mark Hommrich of Volunteer Barge & Transport of Brentwood, Tennessee as Board Chairman for 2012.

In 2012, the TRVA Board and Membership will continue to closely follow developments related to potentially harmful transfers of water out of the Tennessee River Basin.  It will also continue to encourage support, as it has since its inception, for the Inland Waterways Users Board’s Capitol Development Plan (CDP) as a solution to the funding crisis of the IWTF.  The CDP will not only insure the timely completion of projects on the Tennessee River, but will also provide a reliable funding source for future improvements on our nation’s critically important Inland Waterway Transportation System.

TRVA 45^th Annual Meeting Agenda

Monday October 17, 2011

10:00 AM Golf Outing

Gatlinburg Municipal Golf Course

5:30 PM Welcome Reception & Early Registration

Clarion Inn & Suites Hotel, James K. Polk Penthouse Suite

Tuesday October 18, 2011

8:00 AM TRVA Board of Directors Meeting

TRVA 45^th Annual Meeting

Clarion Inn & Suites Hotel, Governor John Sevier Conference Center

8:30 AM Registration Desk Opens

9:15 AM Welcome and Introductions

9:30 AM Guest Speaker Presentations

Mr. James Murphy, Director, U.S. Maritime Administration

Eastern Gulf Coast/Lower Mississippi Gateway

Mr. Thomas Cayce, Project Management

Nashville District, U.S. Army Crops of Engineers

Mr. Don Getty, Project Manager, Kentucky Lock Addition

Nashville District, U.S. Army Corps of Engineers

Mr. Gary Springston, Manager, Water Supply

Tennessee Valley Authority

Dr. Larry Bray, Center for Transportation Research

University of Tennessee

Mr. Sean Crimmins, President

TPG Green Solutions

12:00 PM Luncheon, Awards & Keynote Address

U.S. Congressman Chuck Fleischmann (TN3)

1:30 PM

Navigation Updates

3:00 PM

Adjourn

TRVA 45th Annual Meeting

http://www.gawrc.org/2011paper_pdfs/3.5.3Carver.pdf

URGING THE STATE OF GEORGIA TO INVEST IN INFRASTRUCTURE AND IMPROVE CONSERVATION EFFORTS TO ADDRESS ITS WATER SUPPLY NEEDS.

WHEREAS, the Tennessee River is of enormous economic and environmental importance to the Tennessee Valley region and its citizens; and

WHEREAS, the Tennessee River provides in excess of 200 million gallons of water per day that supports flows essential to the operation of the Tennessee-Tombigbee Waterway, the Tombigbee River, and the Alabama State Port; and

WHEREAS, the transfer of water out of the Tennessee River Basin by an upstream state into another river basin imposes costs on downstream communities by diminishing the flow of water in the Tennessee River, particularly during periods of drought; and

WHEREAS, the Atlanta metropolitan area in the State of Georgia has failed to invest adequately in water supply infrastructure for decades, but has instead relied in meeting water supply needs upon use of storage in federal reservoirs to which it has no legal entitlement to the detriment of downstream communities, including communities located in Alabama; and

WHEREAS, a United States District Court has ruled that the illegal water supply usage by metropolitan Atlanta communities of Lake Lanier in Georgia must stop in 2012; and

WHEREAS, a study performed by Atlanta area interests after that district court ruling showed that those water supply needs of metropolitan Atlanta currently being met out of the Chattahoochee River Basin can still be met out of that Basin in the future if local interests make a sufficient investment in infrastructure and undertake appropriate conservation measures; and

WHEREAS, the Georgia Senate and House of Representatives recently passed a resolution urging a study of the withdrawal, storage, and distribution of waters from the Tennessee River Basin to other parts of Georgia in need of additional water supplies; and

WHEREAS, the resolution did not recognize or consider the costs on downstream communities in Alabama, Mississippi, Tennessee, and Kentucky of such a proposed transfer of water out of the Tennessee River Basin; now therefore,

BE IT RESOLVED BY THE TENESSEE RIVER VALLEY ASSOCIATION, That we urge the State of Georgia to recognize that meeting the water supply needs of the Atlanta metropolitan area and other communities in Georgia outside of the Tennessee River Basin should be met through long overdue investment in infrastructure and improvement of conservation in the river basin in which those communities are located, rather than through the contemplated transfer of water away from the Tennessee River Basin.

BE IT FURTHER RESOLVED, That the Governors and Congressional Delegations of the States of Alabama, Mississippi, Tennessee, and Kentucky are urged to support measures to prevent efforts by the State of Georgia to divert water away from the Tennessee River Basin to other parts of Georgia.

BE IT FURTHER RESOLVED, That copies of this resolution shall be provided to the Governors and Congressional Delegations of Alabama, Mississippi, Tennessee, and Kentucky as an expression of our strong sentiments on this issue.

Adopted 2 May 2011

Economies throughout the Tennessee Valley Region depend on the river system for low-cost power generation, municipal & industrial water supply, efficient waterborne transportation, recreation, tourism, environmental preservation, and jobs.  Approximately one hundred thirty-seven municipalities, fifty-eight industries, and seven mining companies in the Tennessee Valley rely on withdrawals of water from the Tennessee River System.  Water is also withdrawn for TVA power-plant cooling and for irrigation purposes.

In recent years, in excess of fifty million tons of commodities have been shipped annually via the Tennessee River.  Approximately one hundred-eighty ports and terminals on the Tennessee support industries that provide thousands of beneficial jobs for valley residents.  Recreational boating contributes over $25 million to the valley economy each year, and overall water-based recreation generates in excess of $2 Billion in annual revenues throughout the Tennessee Valley Region.

As metro Atlanta and other growing areas in north Georgia desperately search for a reliable source of municipal and industrial water supply to support their expected growth, they continue to look to the Tennessee River to accommodate their forecasted needs.  A recent proposal offers to trade road and rail transportation access to Atlanta and the Port of Savannah in exchange for long sought access to water from the Tennessee River.

The large withdrawals of water from the Tennessee River that are currently being proposed by Georgia will result in interbasin transfers, the practice of pumping fresh water from one river basin to another.  One problem with such transfers is that once the water is used, it is discharged into the receiving basin rather than returned to the originating river basin.

Adverse effects of interbasin transfers from the Tennessee River include: after the water is transferred, no water is returned to the Tennessee for reuse; impacts may not occur at the point of withdrawal, but on reservoirs far from the point of withdrawal potentially impacting municipal and industrial water supplies; interbasin transfers could impair TVA’s ability to carry out mandated responsibilities for managing the Tennessee River; interbasin transfers will reduce hydropower generation and possibly reduce water availability for power-plant cooling; and interbasin transfers at some locations would create environmental conflicts with in-stream uses such as for fish and other aquatic life.

During the drought of 2006-07, TVA experienced disruptions in power generation at the Browns Ferry Nuclear Plant, downstream of any potential Georgia water withdrawal point, due to elevated water temperatures associated with reduced flow rates.  The same reduction of water flow also negatively impacted hydropower generation, TVA’s most economical source of electricity.  TVA, Tennessee Valley municipalities, and industries will likely see more widespread disruptions in future droughts if exacerbated by large transfers of water out of the Tennessee River basin.

In addition to the most recent proposal, both houses of the Georgia General Assembly have approved resolutions that identify water flows of at least 725 million gallons per day for possible diversion from the Tennessee River basin.  The multiple benefits and opportunities that have historically been provided by the Tennessee River System must be protected.  TRVA is actively encouraging legislatures in Tennessee, Alabama, Kentucky, and Mississippi to adopt measures in opposition to Georgia’s current proposal that seeks to transfer large volumes of water out of the Tennessee River basin.  Tennessee Valley Governors and Congressional Delegations are also being encouraged by TRVA to publicly support efforts that will further protect the Tennessee River System from the potentially adverse effects of the interbasin transfers now being proposed by the State of Georgia.

For nearly eight decades, TVA has successfully managed the Tennessee River by balancing the needs of the many beneficiaries, including the nine million residents in the TVA Region that are dependent in many ways on the river system.  Large volumes of water transferred away from the Tennessee basin will threaten that critical balance.  If Georgia gains access to the Tennessee River as proposed, the prospect of ever-increasing interbasin transfers without regard for downstream needs could potentially result in devastating effects on water users and economies throughout the Tennessee Valley.

Valley economies depend on our region’s river systems for low-cost power generation, municipal & industrial water supply, efficient waterborne transportation, recreation, tourism, environmental preservation and jobs.

Not to impugn the merits of the Congress designating funds to museums, universities, and for other local needs, but these projects are unlike appropriations to individual water resources projects that have been previously reviewed and authorized by enabling Acts of Congress.

Unlike most other federal programs, the Congress exercises close oversight over water resource projects. Administrations have historically requested funding for the Corps of Engineers on an individual project basis. After congressional hearings with agency officials and input from project stakeholders, including their congressional representatives, the Congress has provided annual appropriations to the Corps on this same basis. Some Corps projects may receive increases above that requested by the President. Other projects may be funded at the President’s request or at a reduced amount by the Congress due to circumstances that may have occurred after the Administration’s budget request was prepared. All of these congressional decisions regarding project spending are accomplished within the total budget allocation given to the Appropriations Subcommittee and consequently do not result in a net increase in federal spending.

A water resource project is not eligible for federal funding unless it has been reviewed and authorized by the Congress in prior legislation. Moreover, these projects are subjected to rigorous economic and environmental analyses and to an extensive coordination and review process by federal, state, and local interests before the Congress will authorize them as a candidate for funding. Most projects also require financial contributions by non-federal beneficiaries to pay a share of the costs of these infrastructure needs.  For example, a special fuel tax levied on commercial users pays one-half of the costs for federally authorized waterway improvements with the remainder coming from congressional appropriations. No other federal program is subjected to such scrutiny and public involvement.

The Congress should continue its traditional appropriations process for water resources projects, which are so critical to the nation’s economic well-being, job retention and growth, and quality of life. The Congress should also permit stakeholders and their congressional representatives to participate in this process as it has historically done.

A far- reaching congressional ban on so-called earmarks will not preclude political decisions on the ultimate use of discretionary spending. Instead, the Congress would allow those spending choices to be made solely by the Executive Branch. For example, the Congress appropriated $600 million to USDOT in FY 2010 to fund its capital grant program (TIGER II) for transportation improvements. These funds were provided with little congressional direction or input on project selection. All 50 states submitted grant applications that totaled $19 billion, more than 30 times that available for funding.

Last fall, USDOT selected 42 capital projects totaling nearly $575 million, which were located in 20 states. Alabama, Kentucky and Mississippi did not receive any funding. Tennessee did receive one $13M grant for Cates Landing, which is a new port on the Mississippi River. It’s likely not coincidental that nearly 90 percent of these grant funds went to projects located in or benefiting congressional districts held by Democrats.  However, this kind of political favoritism by the Administration escaped the watchful eye of the media and the general public.

More such decisions can be expected in the future if the Congress shrinks from its constitutional duties to provide greater oversight and direction on the use of federal spending, regardless of the earmark moratorium. To do otherwise and not ensure a more appropriate and equitable allocation of federal appropriations for domestic needs, such as water resources projects, would be unconscionable and likely subject the Congress to further public criticism.

February 2011