Business Matters/ June, 2016 15
Congressman Blake Farenthold (R-TX-27) announced May 9, 2016 that language he and Congressman Henry Cuellar (D-TX-28) worked on will be included in the Fiscal Year 2017 House Energy & Water Appropriations Bill that will strengthen the Port of Corpus Christi as a key player in the U.S. economy, particularly in the energy sector. The port is the fifth largest port in total tonnage in the United States. A 2012 study found that it is responsible for 66,500 jobs and has an economic impact of $17.4 billion, along with a current $40 billion in new construction. The local Port Authority expects annual tonnage to top 100 million tons in 2016. The language will now have to be approved by the full House and Senate before being sent to the President’s desk.
The language included specifically addresses the issue of “new starts” in projects approved by the Army Corps of Engineers. At issue is whether recent plans to begin widening and deepening the channel to allow ships carrying crude oil in and out of the port constitute a “new start” under the Army Corps’ terms. Classifying it as a new start would require the project, which has existed since 2007, to re-enter a competitive process with other similar projects for funding. In 2007, the port received congressional authorization to begin upgrades that would allow it to better compete in the national and global economies. Currently, the Army Corps of Engineers argues that because the widening and deepening of the channel are “separable” parts of the port upgrades, they can be considered “new starts” – however, the congressman’s language makes it clear that they are not new starts.
Congress has appropriated up to around $61 million to the upgrade, with $14 million currently available for the remainder of the project.
With the repeal of the decades-old ban on repealing U.S. crude oil, the port in Corpus Christi has needed to begin widening and deepening its drafts to let through ships carrying crude oil product with larger drafts. In fact, the first ship to carry U.S. crude oil in 40 years left the Port of Corpus Christi early this year.
“The term ‘new start’ as it applies to the Port of Corpus Christi is being misinterpreted by the Office of Management and Budget (OMB),” Congressman Farenthold said. “The Port’s improvement project started long ago and as part of that project, we have the La Quinta Channel. Congressman Henry Cuellar has worked with me to include language similar to what I’m working on in the Transportation Committee in the Energy and Water Appropriations Bill to clear this up. The change improves the Port of Corpus Christi’s ability to compete for funding to continue construction of its vital widening and deepening project. It could also make the Port eligible for additional funding mechanisms, in which the Port could continue work using its own funds and any existing federal funds in the Channel Improvement Project account. ”
“The links between my district and the upgrade project in Corpus Christi are undeniable,” Congressman Cuellar said. “Although the port is not in my district, the product that left Corpus Christi following the repeal of the decades-old crude oil export ban in early January was from the Eagle Ford Shale in my district. All the port is doing here is starting a new portion of the project with funds already set aside by Congress. By treating the widening and deepening of the channel as just another part of the port upgrades, which it clearly is, it will help the economy of my district and that of Congressman Blake Farenthold of Corpus Christi. I would like to thank him, Appropriations Committee Chairman Hal Rogers (R-KY-5), Appropriations Committee Ranking Member Nita Lowey (D-NY-17), Energy and Water Appropriations Subcommittee Chairman Mike Simpson (R-ID-2) and Energy and Water Appropriations Ranking Member Marcy Kaptur (D-OH-9) for their assistance in introducing this language.”
“I want to thank Congressman Blake Farenthold for his support to move the Corpus Christi Ship Channel project forward. The deepening and widening will allow the Port of Corpus Christi to accommodate new, larger vessels and increased ship channel traffic, essential for maritime safety and channel efficiency. Having deep water access is vital to ensuring our Nation remain globally competitive,” said John LaRue, Executive Director.