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1 1 (February 26, 2018)

handle is hein.crs/govcazr0001 and id is 1 raw text is: Inland Waterways Trust Fund - mmm, go mppm qq\ , q I MM 11LIANJILiM, Updated February 26, 2018 The Inland Waterways Trust Fund (IWTF) is a fund in the U.S. Treasury that receives revenues from a tax (also known as the inland waterway user fee) on commercial- barge fuel on federally designated waterways. Approximately 11,000 miles of the nation's 36,000 miles of inland waterways are part of this system and subject to the fuel tax (see Figure 1). Pursuant to the Water Resources Development Act of 1986 (WRDA 1986; P.L. 99-662), IWTF monies are subject to appropriation and used to finance construction and major rehabilitation projects on these waterways. IWTF funds are used to match federal appropriations from the General Fund of the Treasury. Overall, expenditures from the IWTF typically make up 5%-15% of total spending by the Army Corps of Engineers (Corps) on federal inland waterways. Regular operations and maintenance costs on these waterways, including dredging and minor lock repairs, are funded entirely from the General Fund. The Water Resources Reform and Development Act of 2014 (WRRDA 2014; P.L. 113-121) authorized changes to IWTF project planning and delivery, altered the cost- sharing threshold for major rehabilitation projects, and partially exempted one project (Olmsted Locks and Dam Project, on the Ohio River) from IWTF cost sharing. That same year, P.L. 113-295 included among its provisions an increase to the inland waterway fuel tax. These changes have stabilized the IWTF balance and allowed for an overall increase in IWTF-related expenditures on inland waterways (see Figure 2). This In Focus discusses the IWTF, inland waterways, and related issues for Congress. s'.........~ Wy B .) Annual commercial traffic on the federal inland waterways system (i.e., fuel-taxed waterways designated by Congress and eligible for funding from the lWTF) accounts for 4%- 5% of total commercial tonnage shipped in the United States. Although inland waterways are a relatively small part of the nation's freight transportation network, they are an important transportation route in some regions. In some areas that rely on movement of bulk goods, the percentage of commercial tonnage shipped by barge, especially for specific commodities, is high. Along with freight rail, inland waterways are a means of transport for the nation's grain and oilseed exports and for bulk products such as coal, petroleum, chemicals, processed metals, cement, sand, and gravel. Figure I. Federal Fuel-Taxed Inland Waterways Source: CRS, based on Corps data. Note: Alaska and Hawaii have no fuel-taxed waterways. Whereas total freight tonnage for all other modes of domestic shipping has increased in recent years, traffic and tonnage on the inland waterways system has remained relatively flat over the last 20 years. Future inland waterways shipping is expected to increase, albeit at a rate slower than other modes. A primary concern for many commercial waterway users is the age of inland waterways infrastructure and the potential for delays in shipping as this infrastructure deteriorates. Some are concerned that these delays could lead users to turn to other modes of freight transit. Congress established the inland waterways user fee in 1978. WRDA 1986 formally established the system by which these fees are utilized, including the IWTF and the current system of financing inland waterways construction and major rehabilitation projects. Costs for these projects are shared equally between the IWTF and the General Fund, whereas regular waterway operations and maintenance costs are funded entirely from the General Fund. The IWTF balance has varied considerably over time, reaching its highest level in FY2002. Shortly thereafter, IWTF appropriations increased significantly as the George W. Bush Administration requested and Congress appropriated greater investments in IWTF-funded projects. At the same time, fuel tax receipts declined. As a result, the balance fell sharply from FY2005 to FY2010 (see Figure 2). .O 'T

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