> 
ities specifically designed to aid and“jmprove U.S. 
he four are: the’Arm 
The port-related acthvities of three of these agencies 
will be briefly discussed in the rest of this section, 
while those of the Coast Guard will be deferred until 
the next section where they will be included along 
with an examination of other Coast Guard activities 
relating to marine navigation and safety. A later sec- 
tion will consider the marine environmental and 
coastal zone management functions of the Federal 
Government, which today also significantly influence 
.S. port planning and development. 
U 
@ Historically, aid provided through Corps of Engi- 
neers dredging activities and port and harbor tech- 
nical assistance programs has represented, by far, the 
largest component of Federal support to U.S. port 
development. Beginning with the transportation pub- 
lic works responsibilities conveyed in 1824, the 
central role of the Corps of Engineers in the devel- 
opment of the U.S. water navigation system has been 
consistently reaffirmed by the Congress in various 
river and harbor statutes. Over the years, these stat- 
utes have, in turn, modified_and expanded the scope 
of the water navigation authority of the Corps in 
response to changing transportation requirements. 
In addition, other statutes have greatly enlarged 
other Corps responsibilities with respect to general 
water resource mana t, As a 
consequence, water navigation development and im- 
provement today is but one part of a multi-faceted 
Corps of Engineers water resource program which 
derives its authority from an array of Federal stat- 
utes. In fiscal year 1976, more than one-third of the 
$588 million obligated for general operations and 
maintenance was provided in support activities other 
than those related to navigation. And in the con- 
struction account, only about 20 percent of the more 
than $1.2 billion obligated in fiscal year 1976 was 
specifically earmarked for navigation projects.’ In 
addition to its water navigation activities, the Corps 
today carries out major water-related programs in 
such diverse areas as hydroelectric power generation, 
flood control, recreation, control of shore and beach 
erosion, hurricane protection, and preservation and 
improvement of water quality. 
Although its responsibilities for general water re- 
source management have been vastly expanded over 
the years, the central role of the Corps of Engineers 
in providing Federal aid to water navigation devel- 
opment has not diminished as a consequence. Water 
11U.S. Executive Office of the President, Office of Manage- 
ment and Budget. The Budget of the United States Govern- 
ment—Appendix (Fiscal Year 1978), Washington, D.C., Govern- 
ment Printing Office, 1977, p. 385. These figures, no doubt, 
somewhat understate the actual size of the total navigation, 
Program since the navigation components of programs identified 
as multipurpose are not separately quantified in the budget. 
navigation development projects sponsored by this 
agency continue to dominate Federal support to port 
and harbor development as they have in the past, 
despite declines in the percentage of total Corps re- 
sources committed to this activity. According to its 
1975 annual report, since the navigation program 
began in 1824, “. . . the Corps has participated 
in the construction of 25,000 miles of inland and 
intercoastal waterways, 107 commercial port facil- 
ities, 400 small boat harbors, and 261 locks.” 
These statistics provide evidence of the preeminent 
historic role played by the Corps in U.S. water navi- 
gation development. The size of the fiscal year 1976 
navigation obligation cited previously provides evi- 
dence that this role continues. 
Most of the water resource responsibilities of the 
Corps, including most navigation activities, are 
carried out directly by Corps personnel at the local 
level. As a consequence, the Corps maintains an 
extensive field organization of 11 divisions with a 
total of 36 districts. The field structure is organized 
geographically by river basins and major drainage 
systems. Managed under the Directorate of Civil 
Works, this organization has about 300 military 
officers and 30,000 civilian employees.° 
A recent major controversial issue relating to 
projects proposed by the Corps of Engineers and 
other water resource agencies has centered on the 
adequacy of the cost/benefit assessment_made prior 
to proceeding with a new water development project. 
Specifically this controversy pertains to the selection 
of an appropriate discount rate for evaluating the 
present value of the stream of future benefits ex- 
pected from a particular water navigation project. 
Essentially, the objective of the cost/benefit proce- 
dure is to assure selection of the best projects and 
to assure a yield on water resource projects at least 
equal to the yield which could be expected if the 
same resources were devoted to a secure long-term 
investment. 
In October 1973, a major discount rate con- 
frontation arose with the publication by the Water 
Resources Council of its Principles and Standards for 
Planning. Established by the Water Resources Plan- 
ning Act of 1965 as an independent, interagency 
executive organization, comprised of various Cab- 
inet-level officials, the Water Resources Council 
12 U.S. Department of the Army, Corps of Engineers. 1975 
Annual Report of the Chief of Engineers on Civil Works Activ- 
ities. Washington, D.C., Corps of Engineers, February 1, 1977, 
p. 4. 
13 Ibid., p. 5. 
14 Council members include Secretaries of Agriculture, Army, 
Commerce, Interior, Housing and Urban Development, and 
Transportation; Administrator of Environmental Protection 
Agency; and Chairman of Federal Power Commission. Other 
agencies that participate in the activities of the Council when 
requested include Office of Management and Budget, Depart- 
ment of Justice, Council on Environmental Quality, and four 
regional River Basin Commissions. 
V-6 
