Statement of Administration Policy: S. 1567 - Water Resources Development Act of 1985

(Senate)
(Senator Abdnor (R) South Dakota)

The Administration supports enactment of S. 1567 as reported, and particularly commends the provisions which would:

— impose comprehensive new cost-sharing to increase the local share of the costs of Army Corps of Engineers' water resource projects, which should help weed out new projects (and separable elements of existing projects) that are not economically justified;

— establish a new port user fee equal to .04 percent of the value of cargo loaded/unloaded at U.S. ports, to offset 40 percent of Corps of Engineers' harbor operations and maintenance costs; and

— double the existing inland waterway fuel tax over ten years beginning in CY 1988, to help pay for Corps of Engineers' construction and rehabilitation costs of the nation's inland waterway system.

However, the inclusion of any new or expanded water resources programs, erosion of the cost-sharing and navigation user fees in S. 1567 as reported, or exemption of major water projects or geographic regions from enhanced cost-sharing requirements would seriously jeopardize the bill's acceptability to the President.

In addition, there are several other issues that require further consideration, and we anticipate working with the conference to make necessary changes.