SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The inland waterways navigation system is 
vital to the economic well-being of the Nation. 
(2) Energy reliability and conservation are the 
cornerstones of the inland waterways navigation sys-
tem. 
(3) The efficiency of the inland waterways navi-
gation system creates the optimum transportation 
mode for bulk commodities in the United States. 
(4) The inland waterways navigation system 
provides for environmental protection and ecosystem 
sustainability. 
SEC. 3. PURPOSES. 
In order to ensure continued safe, dependable, highly 
cost-effective, and environmentally sustainable navigation 
on the inland and intracoastal waterways of the United 
States, the purposes of this Act are to— 
(1) improve program and project management 
applicable to the construction and major rehabilita-
tion of navigation projects on such waterways; 
(2) optimize inland waterways navigation sys-
tem reliability; 
(3) minimize the size and scope of inland water-
ways navigation project completion schedules; 
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(4) eliminate preventable delays in inland wa-
terways navigation project completion schedules; and 
(5) make inland waterways navigation capital 
investments through use of prioritization criteria 
that seek to maximize system-wide benefits and min-
imize overall system risk. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) QUALIFYING PROJECT.—The term ‘‘quali-
fying project’’ means any construction or major re-
habilitation project for navigation infrastructure of 
the inland and intracoastal waterways that is— 
(A) authorized before, on, or after the date 
of enactment of this Act; 
(B) not completed as of the date of enact-
ment of this Act; and 
(C) funded at least in part from the Inland 
Waterways Trust Fund. 
(2) MAJOR
REHABILITATION
PROJECT.—The 
term ‘‘major rehabilitation project’’ means a project 
for the restoration of a major project or major 
project feature that has an estimated cost greater 
than $100,000,000. 
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SEC. 5. PROJECT DELIVERY PROCESS REFORMS. 
The Secretary of the Army, acting through the Chief 
of Engineers, shall require the following: 
(1) Formal project management training and 
certification for project managers of a qualifying 
project. 
(2) Assignment as project managers for a quali-
fying project only of personnel fully certified by the 
Chief of Engineers. 
(3) Cost estimation that is risk-based and has 
a confidence level of at least 80 percent for a quali-
fying project. 
(4) Independent external peer review and sub-
mission to Congress (in the case of a feasibility re-
port) or the Secretary (in the case of a rehabilitation 
evaluation report) for any qualifying project— 
(A) that— 
(i) has an estimated total project cost 
greater than $45,000,000; 
(ii) is subject to public safety con-
cerns, as determined by the Chief of Engi-
neers; 
(iii) involves a high level of complexity 
or novel or precedent-setting approaches, 
as determined by the Chief of Engineers; 
or 
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(iv) is identified by the Chief of Engi-
neers as a matter of significant inter-
agency interest; or 
(B) for which such a review has been re-
quested by the Governor of any State affected 
by the project. 
(5) Appointment to a project development team 
for a qualifying project of a member of the Inland 
Waterways Users Board, selected by the Chairman 
of the Users Board. 
(6) Communication quarterly to the Inland Wa-
terways Users Board of the status of a qualifying 
project that is under construction. 
(7) Inclusion of the Chairman of the Inland 
Waterways Users Board and the project develop-
ment team appointee under paragraph (5) as sig-
natories of the project management plan for a quali-
fying project. 
(8) Establishment of a system to identify and 
apply on a continuing basis lessons learned from 
prior or ongoing projects so as to improve the likeli-
hood of on-time and on-budget completion of quali-
fying projects. 
(9) Evaluation, including through use of one or 
more pilot projects, of early contractor involvement 
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acquisition procedures to improve on-time and on- 
budget project delivery performance. 
(10) Such additional measures that the Sec-
retary determines will achieve the purposes of this 
Act, including, as determined appropriate by the 
Secretary— 
(A) implementation of applicable practices 
and procedures drawn from the Secretary’s 
management of the military construction pro-
gram; 
(B) creation of one or more centers of ex-
pertise for the design and review of qualifying 
projects; 
(C) development and use of a portfolio of 
standard designs for inland navigation locks; 
(D) use of full-funding contracts or formu-
lation of a revised continuing contracts clause; 
and 
(E) establishment of procedures for recom-
mending new project construction starts using a 
capital projects business model. 
SEC. 6. 20-YEAR CAPITAL INVESTMENT PROGRAM. 
(a) PROGRAM REQUIRED.—Not later than 1 year 
after the date of enactment of this Act, the Secretary of 
the Army, working in conjunction with the Inland Water-
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ways Users Board, shall submit to Congress a 20-year 
program for making capital investments on the inland and 
intracoastal waterways based on application of objective 
national project-selection prioritization criteria, as devel-
oped by the Secretary. Such program may be based on 
the 20-year capital investment strategy contained in the 
Inland Marine Transportation System (IMTS) Capital 
Projects Business Model, Final Report published on April 
13, 2010, as approved by the Inland Waterways Users 
Board. 
(b) ANNUAL REVIEW AND UPDATE.—Beginning not 
later than 1 year after the date on which a 20-year pro-
gram is submitted to Congress under subsection (a), and 
each year thereafter, the Secretary of the Army, working 
in conjunction with the Inland Waterways Users Board, 
shall submit to Congress an updated 20-year program. 
Such updated program shall include identification and ex-
planation of any changes that were made to the prior 
year’s project-specific recommendations, including any 
changes that were made to the objective national project- 
selection prioritization criteria that were used to develop 
the updated recommendations. 
(c) STRATEGIC REVIEW AND UPDATE.—Not later 
than 5 years after the date of enactment of this Act, and 
every 5 years thereafter, the Secretary of the Army, work-
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ing in conjunction with the Inland Waterways Users 
Board, shall submit to Congress a strategic review of the 
capital investment program for the Inland Marine Trans-
portation System and make such revisions to the program 
as the Secretary and Users Board jointly consider appro-
priate. 
SEC. 7. COST SHARING FOR QUALIFYING PROJECTS. 
(a) GENERAL RULE.—Notwithstanding any other 
provision of law, and subject to subsection (b), one-half 
of the cost of construction of a qualifying project shall be 
paid only from amounts appropriated from the general 
fund of the Treasury, and one-half of such costs shall be 
paid only from amounts appropriated from the Inland Wa-
terways Trust Fund. 
(b) SPECIAL RULE
FOR DAMS.—Notwithstanding 
subsection (a), the cost of construction of a dam shall be 
paid only from amounts appropriated from the general 
fund of the Treasury. 
SEC. 8. LIMITATION ON EXPENDITURES FROM THE INLAND 
WATERWAYS TRUST FUND. 
Section 9506 of the Internal Revenue Code of 1986 
is amended— 
(1) in subsection (c)(1), by— 
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(A) inserting ‘‘and subject to subsection 
(d),’’ after ‘‘Except as provided in paragraph 
(2),’’; and 
(B) striking ‘‘, as in effect on the date of 
the enactment of this section’’ and inserting ‘‘, 
provided that such expenditures may not exceed 
50 percent of the total cost of the construction 
or rehabilitation’’; and 
(2) by inserting at the end the following: 
‘‘(d) LIMITATION ON EXPENDITURES FROM TRUST 
FUND.—(1) Amounts in the Inland Waterways Trust 
Fund shall not be available for expenditures for— 
‘‘(A) construction or rehabilitation of dams; or 
‘‘(B) any rehabilitation expenditure that does 
not equal or exceed $100,000,000. 
‘‘(2) Amounts in the Inland Waterways Trust Fund 
may not be used to pay for any part of the cost to con-
struct an authorized Federal project that exceeds the sum 
of— 
‘‘(A) the total authorized cost to construct the 
Federal project as specified in the Public Law that 
authorized construction of the project or, in the case 
of a rehabilitation project, in the relevant rehabilita-
tion evaluation report; 
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‘‘(B) an adjustment for inflation for the time 
that elapses between the date of the project’s au-
thorization and the date on which construction of 
the project begins; and 
‘‘(C) an additional amount, if any, jointly 
agreed to by the Secretary and the Inland Water-
ways Users Board as appropriate to the project.’’. 
SEC. 9. REVISION TO INLAND WATERWAYS USER FEE. 
Section 4042(b)(2)(A) of the Internal Revenue Code 
of 1986 is amended to read as follows: 
‘‘(A) The Inland Waterways Trust Fund 
financing rate is the rate determined in accord-
ance with the following table: 
The tax per 
‘‘If the use occurs: 
gallon is: 
During 2013 ................................................................................ 20 cents
After 2013 ................................................................................... 26 cents’’. 
Æ 
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