LVXXU

Funding mechanisms for maintaining or improving coastal ports, inland waterways, and related infrastructure
is a shared responsibility. The available funding sources depend in part on the nature of the investment and the
type of infrastructure involved. 67
Under current law, the Federal Government is authorized to pay all operations and maintenance costs for
inland waterways and generally for half the cost of the construction, replacement, rehabilitation, and expansion
of locks and dams on these waterways. The other half is paid for with an excise tax on diesel fuel used on the
27 fuel-taxed inland waterways, which in effect is deposited in the Inland Waterways Trust Fund. 68
The Federal Government is authorized to pay 100 percent of the cost of eligible operations and maintenance at
coastal ports for all work at depths up to 50 feet depth. For channels at coastal ports, the Federal Government
provides a 50 percent to 90 percent cost share for new construction (this varies by channel depth needs and
contributions by sponsors). 69 There are two port channel systems in use or under construction that exceed 50 feet
depth—Los Angeles/Long Beach and Seattle/Tacoma—both of which have limited needs for maintenance
dredging. Additional ports have been authorized to depths greater than 50 feet and may require non-Federal
maintenance dredging expenditure, but construction has not yet begun.
Improving Inland Waterways
The largest categories of tons of commodities shipped on U.S. inland waterways are coal and petroleum (by
tonnage). Together, these energy commodities were 57 percent of goods transported on inland waterways in
2012. 70 In addition, a significant proportion of chemicals and crude materials shipped on inland waterways are
energy related (see Figure 5-7).
Figure 5-7. Inland Waterborne Shipments by Commodity, 2012 (by weight) 71 Petroleum
27%
30%
Coal
Crude Materials
1%
5%
Food and Farm Products
Chemical & Related Products
15%
9%
Primary Manufactured Goods
13%
Other
Energy commodities are the dominant commodity group in U.S. waterborne cargo traffic. In 2012, crude oil, refined petroleum products, and coal
were 56 percent of all shipments by weight on U.S. inland waterways. Energy commodities were a similarly large portion by weight of all domestic
and international waterborne shipments in the United States.
QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015 5-17