US waterways bill commended

(Posted on 31/07/20)

The National Grain and Feed Association (NGFA) has commended the US Congress for passing by a unanimous voice vote the Water Resources Development Act (WRDA) of 2020 (H.R. 7575).

The House bill includes two key NGFA priorities – an increase in the federal share of the funding for inland waterways projects and full use of the Harbor Maintenance Trust Fund (HMTF).

NGFA, established in 1896, consists of more than 1,000 grain, feed, processing, exporting and other grain-related companies that operate more than 7,000 facilities and handle more than 70 percent of all U.S. grains and oilseeds. Its membership includes grain elevators; feed and feed ingredient manufacturers; biofuels companies; grain and oilseed processors and millers; exporters; livestock and poultry integrators; and associated firms that provide goods and services to the nation’s grain, feed and processing industry.

“To maintain American agriculture’s competitive transportation advantage against other countries, stakeholders must relentlessly make the case for continued investment in U.S. waterways infrastructure,” said NGFA Vice President of Legislative Affairs and Public Policy Bobby Frederick. “Today’s bipartisan vote in the House brings Congress one step closer to achieving new WRDA legislation in 2020. NGFA will continue to work with both the House and Senate in an effort to ensure these policy wins for inland waterways and ports are reflected in the final agreement. An efficient waterborne transportation system is crucial for growing the American economy and job creation, and is vitally important to U.S. agricultural exports and their positive contribution to the U.S. balance of trade.”

WRDA legislation provides authority for the U.S. Army Corps of Engineers to implement water resources development projects. Since 2014, Congress has successfully enacted three consecutive WRDA bills on a biennial basis. The House Transportation and Infrastructure Committee unanimously approved WRDA 2020 on July 15 and the Senate Environment and Public Works Committee passed its version of the legislation — dubbed the America’s Water Infrastructure Act of 2020 (S. 3591) — in May.

The NGFA submitted a July 14 letter in support of H.R. 7575, which outlined priorities for the grain, feed and processing industry in the legislation. In addition, NGFA spearheaded a July 28 support letter from the Agricultural Transportation Working Group signed by 27 organizations.

H.R. 7575 would expedite completion of inland waterways projects by changing the cost-share formula from the current 50 percent general revenue and 50 percent Inland Waterways Trust Fund (IWTF) funding to 65 percent general revenue and 35 percent IWTF. The trust fund consists of revenues generated by barge fuel taxes assessed against commercial users of the inland waterways.

“It is well known that the majority of the nation’s locks and dams have outlived their 50-year design life and changing the cost-share is one prudent way to address this problem and bring U.S. waterways infrastructure into the 21st century more quickly,” Frederick said.

The Senate’s legislation also includes the same change in the cost-share amount, and also contains a beneficial provision that would make the cost-share change permanent instead of expiring in fiscal year 2027, as the House bill stipulates.

H.R. 7575 also would allow access to the existing balance of funds within the HMTF. Currently, more than $9 billion has been collected and deposited in the fund but gone unspent for its intended purpose.

“Allowing full use of the [HMTF] for its intended purpose would correct the fiscal disservice to those that pay the 0.125 percent ad valorem tax based upon the value of cargo imports and would help restore the United States’ comparative transportation advantage,” Frederick said.

Latest News

American Feed Industry commends vital supply chain legislation

The American Feed Industry Association (AFIA) has commended Representatives Ashley Hinson, R-Iowa-02... Read more

NGFA says NASS reports are critical to agribusiness operations

In a letter to U.S. Agriculture Secretary Tom Vilsack, the National Grain and Feed Association (NGFA... Read more

Bauxite and aluminium businesses deliver stable Rio Tinto results

Bauxite production of 13.4 million tonnes was 11% higher than the first quarter of 2023 for Rio Tinto... Read more

Rio Tinto spends more than A$16.1 billion with Australian suppliers

Rio Tinto increased its spend with suppliers and local businesses in Australia to more than A$16.1 billion... Read more

Cargill increases its renewable energy capacity by more than 40%

Cargill has reported increasing its contracted renewable energy capacity by 42% after signing five new... Read more

Agreement to set up KEZAD steel recycling and production facility

The UAE’s largest operator of integrated and purpose-built economic zones, Khalifa Economic Zones... Read more

Senate legislation includes phosphate and potash as critical minerals

The Fertilizer Institute (TFI) has praised the U.S. Senate for introducing bipartisan legislation to... Read more

Agribusiness expert’s legacy and optimism for GrainCorp’s future

Farmer, Company Director and long-standing member of the GrainCorp Board of Directors, Dan Mangelsdorf... Read more

Research offers Rotterdam guidelines for raw material transition

Different product processes, non-fossil raw materials and rare materials are crucial for a CO2-neutral... Read more

Bunge Chevron Ag Renewables to build Louisiana processing plant

Bunge and Chevron have announced approval of a final investment decision for their joint venture Bunge... Read more