To:
Hupp, Millan[hupp.millan@epa.gov]
From: Jared Craighead
Sent: Thur 9/14/2017 1:53:31 PM
Subject: Port of Corpus Christi Update
Commissioner Sitton General Semonite Letter.pdf
James Dalton Response to Sitton Letter.pdf
Millan,
I hope you are well!
When Administrator Pruitt was at the Port of Corpus Christi, this project was discussed extensively and he seemed very interested in helping. The Army Corps of Engineers just sent a reply to correspondence Ryan sent them and I wanted to make sure you had copies of both letters. The Ports Ship Channel Improvement project would be a HUGE help to that area that was impacted by Hurricane Harvey. I'm hopeful you all can put in a good word for this project.
Please let me know if you have any questions or need anything.
Thanks so much!
Jared
Jared Craighead Chief of Staff and General Counsel Commissioner Ryan Sitton Texas Railroad Commission 1701 North Congress - 12thFloor Austin, TX 78711
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512-463-7144
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August X. 2017
Ryan S m on
T exas R ailroad C ommissioner
Lieutenant General Todd T. Semonilc Commanding [General Lalnd[ChiefLbf Engineers U U.S. Army Corps Idf[Engineers[HeadquartersLJ 441 LG[Street LNWU Washington, DC 203141000 LJ
Dear [General Semonilc. L
A sa statewide elected [official tasked With [overseeing the Cnergy [industry in the largest energy producing U state in lihe nation. I am writing to ask for your assistance in prioritizing the Corpus Christi Ship Channel LJ Improvement Project thatlife fully authorized and permitted. A s fully described below. this project is_ critically important to the people of Texas. America's energy industry land the nation's economic landu national [security interests. I appreciate vour [consideration of the Ibllming information land look lbrw aril LJ to your thoughts on what the U.S. Army Corps of Fngineers can do to ad\ anee this important work.
By Way of background, las you may not be intimately familiar with the Specifies of this project, the port of Corpus Christi has more than L$100 million in [goods value Lrhove through lilCvery day..lust a few months U ago, the largest tanker to Ldver enter Latil'J.S. Gulfport docked Lt the [pert of Corpus Christi. The T,093-foot U vessel [ft capable of loading more than 2 million barrels of American crude oil to transport o\ erseas. The LJ importance of this milestone cannot be LOverstated.TfIfhe United States does not [enhance its Cnergy LJ transportation infrastructure [given the new global energy paradigm thousands of potential U.S. jobs will LJ not be created nor economic gain realized. Now that the crude oil export Lban[has been lifted LandLJ production levels Ldre near historic highs. We must met to .ensure [that our eounliy life[prepared to take LJ advantage of the enormous energy opportunities in front of us.
These statistics demonstrate the incredible economic impact the port of Corpus Christi has not [Only for LJ Texas, but for the nation:
LJ The Port of Corpus Christi is the 4th largest Sea Port in the U.S. (by tonnage ) LJ It is the largest U.S. produced crude export port The Ship Channel Improvement Project vvill add nearlv S35 billion [annually in goods value LJ
exports The Ship Channel Improvement Project will prov ide 1$100 million in Annual transportation cost LJ
sav ings Li
There Are [CurrentlyL$50 billion in private industrial projects underw ay in the South [Texas Coastal L
Bend and Corpus Christi Ship Channel. Creating tens of thousands of jobs and billions in Li
economic output The Port of Corpus Christi life expected to become one of the largest, if not the largest, export ports
for [Liquified Natural Gas (by 12020) LJ
1701 NORTH CONGRESS AVENUE AUSTIN, TEXAS 78701-2967 PHONE: 512/463-7144 FAX: 512/463-7161 HTTPL/WWW.RRC.TEXAS.GOV
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Texas [economists [Have[predicted [that expanded [crude oil [exports could [result in 130,000[additional jobs in Corpus Christi [alone. [Nationally the number of jobs [Created [related to [Crude [exports lii Cven [stunningly LI larger.
Given all lbf[this, lit life[disappointing [that IU.S. Arun [Corps o1' Engineers FY17 [Work Plan and LJ Administration's FY18 Budget funded fourINEW START deepening projects (Boston. Charleston.! Jacksonville, Tampa), all of which were authorized AFTER the Corpus (hristi Project. The [majority oI' those projects [have Benelit-Cost Ratios (BCRs) below the Corpus (hristi Project and higher costs. Furthermore, the [NEW SI ART ports [are primarih for containers 111led with Chinese made goods, which exacerbate the U.S. trade delicit.LJ
The Corpus ( hristi Ship Channel [Improvement Project has been authorized by Congress three times LJ (WRDA 2007. WRRDA 2014. W11N 2016) to deepen [the3 6-mile ship channel to 54 feet Ml.I.W (VIcan U Lower Low Water) Ldr32 ' (MET) Mean Low Tide from the current [45' (MET). Rather than embrace this LJ necessary project and the tremendous opportunities it holds for our Country, the port has described the LJ many roadblocks it has [faced in the follow ing WayJ
Although authorized by Congress three times (WRDA 2007. reauthorized WRRDA 2014. reaffirmed WIIN 2016) USACE and Office of Management and Budget eontinueto throw up LJ unnecessary bureaucratic hurdles (many examples such as three Limited [Review [Reports (I.RRs). and delays inLrbview processes.[arguinglthe Corpus ( hristi Project was a "New Start" rather than a continuing project, therein keeping the project from being funded (resohed in special language in [Section 1146 of W11X Act as a continuing project)). U
Office of Management & Budget also [appears to be stripping the Corpus Christi Project from the LJ USACE budget each year, claiming[$200 million is too large a sum. which will "break" their 10 year plan.
President Trump. Energy [Secretary Rick Perry. [Ulterior Secretary [Ryan Zinke. Land numerous otheru administration officials [have made clear that they want the United States to be [energy dominant. I interpret [energy dominance as producing more energy than anyone else in [the[World, land using Jbat energy to ad\ anee our economic and national [Security interests. Make no mistake, the Corpus ( hristi Ship LJ Channel [Improvement Project will help the United States become energy dominant. LJ
Please let me know [at your earliest coinenienee the U.S.[Army Corps' thoughts on what can be done toU bring this project to fruition. Tlstand[ready to assist you in any Way neeessaiy to move this project LJ forward. T[appreciate your consideration of my thoughts and I thank you for your [Service to our country.
If I can [answer [any questions for you related to this correspondence, please do not h esitate to contact nn L office [tl3 12-463-7144. U
Respectfully, U
Railroad Commissioner State of Texas
Cc: I
Justin R. Clark.[Deputy Assistant to the President and DirectorLbf[Intergovernmental Aflairs) \ iaLJ electronic mail)U The FIonorable Mick M uhanex. Director o f the Office o f Management and [Budget (\ ia electronic mail) The Honorable Rick Peny.[Secretary of the [Department of Energx
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The [Honorable Doug l.amonl. [Acting[Assistant [Secretary of the Army-Civil [Works[.(via1.4 electronic mail) Col. Ears LZetterstrom, District Commander, [USACE4LGalvestonDistrict (Via electronic mail) Col. Calvin C. Hudson II. District Commander, U SA CE4Et. [Worth District [(Via electronic [mail) The Honorable JohnComyn, United States Senator (\ a electronic mail) The Honorable J e d Cruz, [United States Senator (Via[.electronic mail) U The Honorable Jh a d Cochran, Chairman Senate Appropriations [(Via[electronic mail).I The Honorable Lamar Alexander, Chairman Senate Appropriations Subcommittee 4 [Energy land Water Development (\ ia ebetronie mail) 4 The Honorable [Rodney Erelinghuysen, Chairman House Appropriations (Via [electronic mail) The Honorable [Mike Simpson, Chairman House Appropriations Subcommittee 4 [Energy land 4 Water Development and [Related Agencies I(Via[.electronic [mail) The Honorable Greg Abbott. [Governor of Texas [(via electronic mail) 4 The Honorable George P. Bush. Land Commissioner [(Via[electronic mail) The Honorable Craig Estes, Chairman Texas Senate [Natural Resources (via electronic mail) The Honorable Drew Darby, Chairman Texas House Energy Committee [(Via[electronic mail) 4 Texas Congressional Delegation [(Viaelectronic mail)
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DEPARTMENT OF THE ARMY
U.S. ARMY CORPS OF ENGINEERS 441 G STREET, NW
WASHINGTON, D.C. 20314-1000
UG 3 1 2017
Ryan Sitton Texas Railroad Commissioner 1701 North Congress Avenue Austin, Texas 78701
Dear Mr. Sitton:
I am writing in response to your letter dated August 8, 2017, requesting prioritization of the Corpus Christi Ship Channel Improvement Project (CCSC). The letter expressed strong support for the CCSC and requested that the U.S. Army Corps of Engineers (Corps') provide thoughts about how to bring the CCSC project to fruition.
I realize that this project would be a tremendous benefit to the Port of Corpus Christi, local businesses, the State of Texas and our Nation; and I appreciate your support on this project. The Office of Management and Budget determined CCSC to be a continuing construction project, which was documented in a December 2016 Question For the Record and through the inclusion of Section 1146 of the Water Resources Development Act of 2016. Additionally, the Administration and House and Senate Appropriations Subcommittees have cleared the Port of Corpus Christi Authority's request to provide funds
on an accelerated basis to cover the costs oi certain work, up to the amount of the non Federal cash contribution for the pres et This will allow the Port to negotiate a Project
Partnership Agreement with the Department of the Army to begin work on the remaining two separable elements whether or not Federal funding is available.
If funds are provided by Congress for a Work Plan in Fiscal Year (FY) 2018 this project will be considered for eligibility, along with other similar programs, projects and activities across the Nation that are competing for limited Federal resources in accordance with the directions from Congress provided with the Appropriations Act. The project will be similarly considered for inclusion in the FY 2019 President's Budget. However, the Administration cannot commit to including the project in either the FY 2018 Work Plan or the FY 2019 Budget at this time.
Thank you for your interest in the Corps Civil Works program. If you have additional questions or concerns, please feel free to contact me or your staff may contact Ms. Kathleen Williams, Deputy Chief, Southwestern Division Regional Integration Team, at (202) 761-0315.
Sincerely,
James C. Dalton, P.E. Director of Civil Works
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