Oversight Hearing - State of the Civil Works Program

Environmental Permitting and Water InfrastructureHouse Appropriations Subcommittee on Energy and Water Development, and Related Agencies · 2025-02-25 · 119th Congress
The House Appropriations Subcommittee on Energy and Water Development held this oversight hearing to examine the state of the Army Corps of Engineers' civil works program, focusing on recurring cost overruns, schedule delays, engineering shortfalls, and contracting challenges across major projects nationwide. Begins at 0:04:48
Transcript
Highlights

Title

Army Corps of Engineers civil works project delays, costs, and permitting reform

Purpose

The House Appropriations Subcommittee on Energy and Water Development held this oversight hearing to examine the state of the Army Corps of Engineers' civil works program, focusing on recurring cost overruns, schedule delays, engineering shortfalls, and contracting challenges across major projects nationwide. Lieutenant General William "Butch" Graham Jr., Chief of Engineers, testified alongside four division commanders about efforts to improve engineering maturity, project management, and acquisition strategy, while members raised district-specific projects and questioned a controversial water release from California dams. Begins at0:04:48

Who spoke

Chairman Chuck Fleischmann (R-TN)0:04:48: Opened by describing recurring patterns of Corps cost overruns and inadequate engineering, citing the Chickamauga Lock in his district as an example needing further discussion0:07:25; later detailed Chickamauga's cost growth from a projected $39 million shortfall in FY23 to $237 million more in FY250:22:34.

Ranking Member Marcy Kaptur (D-OH)0:10:18: Highlighted the Corps' role in power generation and flood/ecosystem protection, citing 27 confirmed billion-dollar weather disasters in 2024 totaling over $182 billion0:12:07; raised concerns about cost and schedule overruns on the Soo Locks0:15:14 and Brandon Road Asian carp project0:16:07, and pressed on Toledo water-main funding0:26:27 and dredge-material land application options1:20:47.

Lt. Gen. William Graham Jr., Chief of Engineers0:17:53: Said the Corps' current on-schedule rate is 73% and outlined three focus areas — "get the engineering right, get the project management right, get the business right"0:19:42; cited construction inflation of 34%, wage growth of 25%, and material/diesel cost increases of 38% and 58% over five years0:20:11; pledged to only sign Chiefs' reports with sufficiently mature engineering0:20:40.

Col. James Handura, South Pacific Division Commander0:34:20: Explained the Prado Dam project's shift to an integrated design-and-construction contract with cost-sharing incentives to control price growth0:34:46; confirmed Murrieta Creek's phase 2B award is on track for June 2025 with construction starting fall 20250:36:14.

Col. George Walter, Southwestern Division Commander0:39:26: Discussed the Oceanside mitigation study, noting legal/policy barriers to evaluating a beach-fill-only alternative in a mitigation study restricted to least-cost planning0:39:55; on the San Luis Rey River project, said geotechnical analysis was on schedule for completion by March 20250:41:14.

Brig. Gen. Daniel Hibner, South Atlantic Division Commander0:54:10: Explained that after a 2024 federal court order stripped Florida's Section 404 permitting authority, Corps permit backlogs mounted again despite establishing a regional permitting office0:55:36; on Port Everglades, said a biological assessment was submitted in May 2024 with a goal of a record of decision by October 20261:18:00; called Everglades restoration the largest ecosystem restoration program in the world1:31:47.

Maj. Gen. Mark Quander, Great Lakes and Ohio River Division Commander0:26:51: Committed to expeditiously executing Toledo's $10 million water-main rehabilitation funding0:27:18; discussed Great Lakes dredge-disposal capacity constraints, including an impasse at the Calumet confined disposal facility0:52:00; described industry-day outreach practices1:19:49.

Rep. Ken Calvert (R-CA)0:32:04: Noted the Prado Dam/Santa Ana River Mainstem project's estimated cost rose from $650 million in FY23 to $1.3 billion in FY240:33:21; pressed on Murrieta Creek delays after 30 years of work0:35:44.

Rep. Mike Levin (D-CA)0:36:44: Thanked the Corps for Southern California coastline work and raised limited Pacific dredge capacity0:38:02; later pressed General Graham with a series of yes/no questions on the Terminus and Shafer Dam water release, asking whether the roughly 2 billion gallons released reached Los Angeles and whether it worsened future water-shortage risk1:25:44.

Rep. Michael Cloud (R-TX)0:42:11: Criticized the Biden administration's rescission of the Matagorda Ship Channel's record of decision, calling it unprecedented0:43:03, and questioned whether environmental groups seek to permanently block the project0:43:44; raised concerns the benefit-cost ratio doesn't account for a non-federal sponsor willing to fund nearly the entire project0:46:20.

Rep. Mark Messmer (R-IN)0:47:53: Asked about dredge material disposal challenges affecting Great Lakes projects in his district0:50:16 and about the Great Lakes Coastal Resiliency Study's benefits0:52:00.

Rep. Scott Franklin (R-FL)0:53:17: Compared Section 404 permitting throughput, noting Florida's state-run program processed roughly 1,615 permits in 2022 versus about 850 under Corps management in 2018, before authority reverted to the Corps in February 2024 causing renewed backlogs0:54:100:55:09.

Rep. Michael Guest (R-MS)0:58:49: Asked whether the Corps has adequate workforce for smaller projects and how to expedite environmental compliance under NEPA, ESA, and the Clean Water Act1:01:32; cited only 25 firms nationally capable of projects over $500 million1:00:35.

Rep. Susie Lee (D-NV)1:04:19: Questioned whether the Terminus and Shafer Dam water release was a politically motivated "stunt" tied to the LA wildfire response rather than sound water management1:05:14; asked whether the Corps would defy Congress if OMB illegally ordered withholding of appropriated funds1:08:32.

Rep. Celeste Maloy (R-UT)1:09:58: Discussed her FREE Act and Executive Order 14154's directive to use "permit by rule" to streamline permitting, urging the Corps to work with her on implementation1:10:24.

Rep. Debbie Wasserman Schultz (D-FL)1:13:29: Pressed on expediting Port Everglades' O&M dredging, currently scheduled for 2027-2028, given shoaling concerns1:14:22; noted the project has faced delays for over 20 years and asked for a milestone timeline1:16:39; later highlighted $1.1 billion in bipartisan infrastructure law funding for Everglades restoration and a University of Florida finding that every dollar spent generates at least $4 in economic benefit1:30:501:32:16.

Key moments

General Graham stated the Corps' current on-time delivery rate is 73%, which he called "a C," and set a goal of exceeding 80% within three years0:19:420:24:47.

Chairman Fleischmann detailed the Chickamauga Lock's cost trajectory: a projected $39 million shortfall in FY23 ballooned to $237 million more by FY25, with the completion contract still unawarded0:22:340:22:58.

Rep. Calvert cited the Prado Dam/Santa Ana River Mainstem project's federal cost estimate rising from $650 million (FY23) to $1.3 billion (FY24)0:33:21.

Rep. Kaptur noted Brandon Road's cost estimate grew from $830 million in 2021 to $1.1 billion after further engineering0:30:17.

Rep. Franklin's data showed Florida's state-run Section 404 permitting nearly doubled throughput (about 1,615 permits in 2022) compared to the Corps' roughly 850 in 2018, before a February 2024 court ruling returned authority to the Corps and backlogs "started to mount again" within weeks0:54:100:55:36.

Sharp exchange: Rep. Lee and Rep. Levin separately pressed General Graham on the Terminus and Shafer Dam release of roughly 2 billion gallons of flood-storage water; Graham repeatedly stated the release was "in compliance with the executive order that we were given" and within statutory water-control-manual authority, but could not confirm whether the water reached Los Angeles or its effect on future water shortages1:07:391:08:031:26:111:27:22.

General Graham said the Corps' pool of large contractors capable of $3 billion projects "has shrunk over the years," alongside industrial-base shortages also affecting military shipbuilding, where an additional $2 billion-plus is being spent on submarine delivery delays0:28:110:28:36.

Rep. Guest noted Hoover Dam was built in five years (two years early, under budget) and the Apollo moon landing was achieved eight years after President Kennedy's challenge, contrasting this with Corps projects running 36-40 years1:00:35.

General Graham said Congress-directed funding questions involving potential OMB withholding "would be best directed" to policy officials, since no Assistant Secretary of the Army for Civil Works is currently on board1:08:321:09:02.

Rep. Wasserman Schultz said the Port Everglades navigation project has been unimplemented for over 30 years; General Hibner said the biological opinion process could begin in July 2025, targeting a record of decision by October 20261:14:221:18:001:18:27.

Metadata

CommitteeHouse Appropriations Subcommittee on Energy and Water Development, and Related Agencies
Chamber / CongressHouse · 119th Congress
Date2025-02-25
TypeHearing
Witnesses
Lieutenant General William Graham Jr. — Chief of Engineers and Commanding General, U.S. Army Corps of Engineers
Colonel James Handura — Commander, South Pacific Division, U.S. Army Corps of Engineers
Colonel George Walter — Commander, Southwestern Division, U.S. Army Corps of Engineers
Brigadier General Daniel Hibner — Commanding General, South Atlantic Division, U.S. Army Corps of Engineers
Major General Mark Quander — Commanding General, Great Lakes and Ohio River Division, U.S. Army Corps of Engineers
Videoyoutube
Transcript211 caption blocks · 15,474 words · 1:36:19 runtime
EventCongress.gov 117921