Detailed Information on the
Corps of Engineers: Water Storage for Water Supply Assessment

Explore in a systematic way how much storage space the Corps owns for storing water and how best to use it. Adjust the fees, charges and contributions the Corps collects for water storage to ensure that scarce water is not wasted and instead used in an economical and financially sound way. This is a three phase effort: (1) development of a water supply module in the Operation and Maintenance Business Information Link (OMBIL), (2) completion of a national "Portfolio Assessment," and (3) using the data obtained from (1) and (2), complete the Improvement Plan. The following expected completion date is for the first phase or (1) above.

Measure: Increase the percent of storage space under contract versus the acre-feet available.

Explanation:The purpose of the Corps of Engineers water supply program is to participate and cooperate with States and local interests in developing domestic, municipal and industrial water supplies in connection with the development of Corps of Engineers multiple purpose projects. The program has two measures, the first of which is to increase the percent of storage space under contract versus the acre-feet available. The 1958 Water Supply Act permitted up to 30% of storage space to be placed in Corps reservoir projects for future use where State or local sponsors provided assurances that that space would be utilized within the life of the project. While this is no longer permitted (for Corps of Engineer projects), considerable space was included in Corps projects under this provision. This first measure shows how well that the storage included under just an assurance is being placed under a repayment agreement. In past years there was no "water supply" budget and the data were captured only periodically. With the initiation of water supply becoming a budgeting item in fiscal year 2005, however, the Corps has initiated steps (beginning in fiscal year 2007) to monitor progress on a yearly basis through the Corps of Engineers Operations and Maintenance Billing Link (OMBIL) and through a proposed nationwide assessment of water storage opportunities in the fiscal year 2008 budget. In past years there were no "targets," just absolute values with percents of available storage under contract increasing over time.

Measure: Percent of costs covered by revenues returned to Treasury

Explanation:The purpose of the Corps of Engineers water supply program is to participate and cooperate with States and local interests in developing domestic, municipal and industrial water supplies in connection with the development of Corps of Engineers multiple purpose projects. The program has two measures, the second of which is to increase the percent of costs covered by revenues returned to the Treasury. The 1958 Water Supply Act permitted up to 30% of storage space to be placed in Corps reservoir projects for future use where State or local sponsors provided a contact for future payment or an assurance that the costs assigned to that space would be repaid within the life of the project. While this future concept is no longer permitted (for Corps of Engineer projects), considerable space was included in Corps projects under this provision. This second measure shows how well that storage included in Corps projects under the "future" provision is being placed under a repayment agreement. In past years there was no "water supply" budget and the data were captured only periodically. With the initiation of water supply becoming a budgeting item in fiscal year 2005, however, the Corps has initiated steps (beginning in fiscal year 2007) to monitor progress on a yearly basis through the Corps of Engineers Operations and Maintenance Billing Link (OMBIL) and through a proposed nationwide assessment of water storage opportunities in the fiscal year 2008 budget. In past years there were no "targets," just absolute values with percents of revenues returned to Treasury increasing over time. Note that all costs recovered under this provision are returned to the Treasury.

Measure: Administrative yearly cost per acre-foot of storage

Explanation:

Is the program purpose clear?

Explanation: The major mission of the Corps' water supply program originated in the 1958 Water Supply Act. As explained in this act, the purpose of the Corps' water supply program is to provide storage space in any Corps reservoir project to impound water for present or anticipated future demand or need for municipal or industrial purposes. However, the Corps is not in the water supply business. The agency will not build reservoirs to store water for consumption, for example.

Evidence: Public Law 85-500, as amended (43 United States Code § 390) (72 Stat.319) (The 1958 Water Supply Act). A copy of this law, as amended is contained in IWR Report 96-PS-4 "The Water Supply Handbook" at: http://www.iwr.usace.army.mil/iwr/pdf/96ps4.pdf (See Appendix A page 9, or page 191 of 404).

Does the program address a specific and existing problem, interest, or need?

Explanation: The 1958 Water Supply Act states that the Federal Government should participate and cooperate with States and local interest in developing domestic, municipal and industrial water supplies in connection with the construction, maintenance, and operation of Federal navigation, flood control, irrigation, or multipurpose projects.

Evidence: See answer to 1.1

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: Only the Federal government owns the projects and has the authority to operate them for multiple purposes. Each project represents an exclusive investment in a site to realize water resources opportunities, including water storage for water supply. Reservoir storage for water supply complements, but is not duplicative with other sources. The Corps provides water storage for water supply in conjunction with its main missions, such as flood damage reduction. However, water treatment and distribution beyond the boundaries of its reservoirs is not a main mission of the Civil Works program. During the past ten years, Congress has authorized the Corps to implement 150 [ck #] municipal water supply, drinking water treatment and waste water treatment plants at a cost of some $2.0 billion [ck #]. The Administration opposes these "environmental infrastructure" projects. They nationalize or federalize state and local responsibilities. They are subject to limited oversight. Further substantive assessment of environmental infrastructure is outside the scope of this PART

Evidence: See answer to 1.1

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: The 1958 Water Supply Act states water supply is a state and local responsibility. The appropriate allocations or reallocations among the multiple project purposes at each reservoir are determined through a comprehensive, multi-purpose economic, environmental, and engineering analysis.

Evidence: See answer to 1.1

Is the program design effectively targeted so that resources will address the program's purpose directly and will reach intended beneficiaries?

Explanation: Corps policies and procedures provide specific guidelines wherein the Corps can participate in providing water supply to non-Federal public agency sponsors. All costs are a non-Federal responsibility.

Evidence: Corps of Engineer Regulation (ER) 1105-2-100 dated 22 Apr 2000 (The PGN). http://www.usace.army.mil/inet/usace-docs/eng-regs/er1105-2-100/toc.htm See paragraph 3-8 (pages 3-31 to 3-36).

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The purposes of this program are to provide storage space in Corps reservoir projects and to recover assigned costs through repayment agreements with state and local interests. The program has two specific long-term performance measures that were established as part of the Corps Strategic Plan to judge efficiency and the ability to return revenues to the U.S. Treasury. All revenues collected are returned to the U.S. Treasury.

Evidence: Corps of Engineer Circular (EC) 11-2-187 dated 31 March 2004 (page VIII-1) states the objectives and performance measures of the Corps of Engineers Water Supply Program. These are listed as: Program Objectives - In partnership with non-Federal water management plans and consistent with law and policy, manage Corps reservoirs to provide water supply storage in a cost efficient and environmentally responsible manner. Performance Measures - (a) Acre-feet of storage under contract versus acre-feet available (b) Percent of costs covered by revenues returned to the Treasury. These items were published in the March 2004 Civil Works Strategic Plan. The CW Strategic Plan was developed with an explicit assumption of an unconstrained resource environment to encourage an unconstrained assessment of the nation's water resources needs and potential Corps response. Preparation of the fiscal year 2006 Budget Request requires the recognition of a constrained budget environment and the ongoing effort to evolve better budget linked performance measures.

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: The program has two long-term goals: (1) to place 100 percent of storage allocated to water supply under contract, and (2) to recover 100 percent of costs allocated to municipal and industrial water supply. These are ambitious goals.

Evidence: See answer to 2.1

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation: The program's annual goals are the same as the long-term goals (see answer to 2.3)

Evidence: See answer to 2.1

Does the program have baselines and ambitious targets for its annual measures?

Explanation: The baselines and targets are an extension of the long-term goals (see answer to 2.2)

Evidence: See answer to 2.1

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: Partners sign repayment agreements to pay all the costs of the program and in return they receive the benefits of the project.

Evidence: Standard water agreements between the Corps and our partners are contained at the following web site. http://www.usace.army.mil/inet/functions/cw/cecwp/branches/policy_compliance/wtrsamp.pdf PART 1 of this document (page 1-19) pertain to storage space under the 1958 Water Supply Act.

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: There are no independent evaluations of this program. However, the budget proposes to fund a nationwide assessment of water storage opportunities.

Evidence: See page 6 (or page 7 of 124), under Investigations, Operation and Maintenance General of the Fiscal Year 2007 Civil Works Budget for the United States Army Corps of Engineers at: http://www.usace.army.mil/civilworks/cecwb/budget/budget.pdf

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: The budget is formulated to fund annual operations, contract negotiation and management, and related costs. In addition, a national assessment of water reallocation opportunities is proposed to guide future studies of water storage reallocation and improve the use of storage capacity for economic and environmental purposes.

Evidence: See answer to 2.6

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: See answer to 2.6.

Evidence: See answer to 2.6.

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: The agency currently collects data on a periodic basis. As part of the first quarter of fiscal year 2007, however, the program will be integrated into the Corps' Operations and Maintenance Information Link (OMBIL). This program will provide a continuing yearly update of the program including signing of agreements, status of studies, costs to administer the program, revenues recovered, etc.

Evidence: The OMBIL web site is: https://ombil.usace.army.mil/. Note that the water supply portion of this site is underdevelopment.

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: No new storage for water supply is being constructed at Civil Works projects.However, Federal managers are being encouraged to collect fees from program beneficiaries.

Evidence: Not applicable.

Are funds (Federal and partners') obligated in a timely manner, spent for the intended purpose and accurately reported?

Explanation: All water supply-related costs are tracked and are recovered under water supply agreements.

Evidence: See answer to 1.5.

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: The budget proposes a nationwide assessment of water storage reallocation opportunities to improve economic and environmental outputs from the projects.

Evidence: See answer to 2.6.

Does the program collaborate and coordinate effectively with related programs?

Explanation: There are no related programs with which to coordinate. This is a program between the Corps and its cost-sharing partners who pay the costs of storage for water supply.

Evidence: Not applicable.

Does the program use strong financial management practices?

Explanation: The Corps has in place financial management practices to track costs, allocate them among purposes, and recapture the required costs from the cost-sharing partner. All costs collected from the water supply program are turned over the U.S. Treasury.

Evidence: These financial management practices are contained in Corps of Engineer Regulation (ER) 11-2-10, dated April 1969. This regulation prescribes the accounting systems and related procedures for all Civil Works activities of the Corps of Engineers. It is applicable to the Waterways Experiment Station and to all Division and District offices engaged in Civil Works activities. Chapter 5 "Fund Accounts and Central Procedures" of this ER are available at the following site: http://www.usace.army.mil/publications/eng-regs/er37-2-10/ch05.pdf

Has the program taken meaningful steps to address its management deficiencies?

Explanation: For fiscal year 2006, the Corps initiated work category codes to report costs associated with the program. As of the first quarter of fiscal year 2007 the program will be integrated into the Corps' Operations and Maintenance Information Link (OMBIL). This program provides a continuing update of the program including signing of agreements, status of studies, costs to administer the program and revenues recovered.

Evidence: See answer to 3.1

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: For fiscal year 2004, 92% of the storage is under contract and 71% of capital costs have/or are being recovered. The 1958 Water Supply Act provides that recovery of capital costs may extend over a period of up to 50-years.

Evidence: The percent of storage under contract for 2004 is contained in Table 1 and the percent of cost recovery is presented in Table 2 of IWR Report 05-PS-1 "Water Supply Database 2004 Survey." Table 1 shows: There are 295 water storage agreements in 134 Corps reservoir projects. Total storage space in these reservoir projects for water supply is 9,855,893 acre-feet. Of that total amount 9,108,339 acre-fee are under a present or future use contract. Table 2 shows: The total Federal investment allocated to water supply in the 134 reservoir projects is $1,477,245,000. Of that total amount, $1,043,996,000 has been or is in the process of being recovered.

Does the program (including program partners) achieve its annual performance goals?

Explanation: The long-term performance goals are being approached on a yearly basis. Prior to 2004, data was updated only on a periodic basis. Beginning in fiscal year 2007 the data will be collected annually through the Corps of Engineers Operations and Maintenance Billing Information System (OMBIL). (See question 3.1)

Evidence: Figures 2 and 3 of IWR Repoprt 05-PS-1, referenced in the answer to 4.1, provides the following data: Figure 2 compares the storage space data in 1996 and in 2004. The data show: the storage under a present use contract increased from 6,335,393 in 1996 to 7,002,679 in 2004; the future under contract reduced from 2,410,539 in 1996 to 2,105,660 in 2004; and the not under contact reduced from 778,699 in 1996 to 774,554. Figure 3 compares the Federal water supply investment cost in 1996 and in 2004. The data show: the under contract being repaid increased from $700,978,000 in 1996 to 1,063,996,000 in 2004; under contract for future decreased from $512,8091,000 in 1996 to $321,802,000 in 2004; and the not under contact decreased from $119,761,000 in 1996 to $91,447,000 in 2004.

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: The national reallocation was first proposed for fiscal year 2007

Evidence: See answer to 2.6

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: No comparison has ever been made. The 1958 Water Supply Act (see 1.1) also applies to the Bureau of Reclamation. Local and private interests also develop their own water supply sources. The Corps proposes to assess the fees, charges and contributions the Corps now collects to ensure that scarce water is not wasted and instead is used in an economical and financially sound way.

Evidence: Not Applicable.

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: There are no independent evaluations of this program. However, the budget proposes to fund a nationwide assessment of water storage reallocation opportunities.

Evidence: See answer 2.6.