June 16, 2020 Honorable Peter A. DeFazio Chairman House Committee on Transportation and Infrastructure 2165 Rayburn House Office Building Washington DC, 20515 Honorable Sam Graves Ranking Member House Committee on Transportation and Infrastructure 2165 Rayburn House Office Building Washington DC, 20515 Honorable Grace F. Napolitano Chair Water Resources and Environment Subcommittee House Transportation and Infrastructure Committee 1610 Longworth House Office Building Washington, DC 20515 Honorable Bruce Westerman Ranking Member Water Resources and Environment Subcommittee House Transportation and Infrastructure Committee 209 Cannon House Office Building Washington, DC 20515 Dear Chairmen and Ranking Members, We write on behalf of our constituents who work and do business on and around the Delaware River’s ports. Because of your committee’s leadership, our states have a decades long partnership with the Federal government which has led to job and business growth in our region. Those jobs and businesses are in jeopardy due to new Senate legislation. The most important Federal investment in the Delaware River maritime industry has been the engagement of the US Army Corps of Engineers (USACE) in deepening the Delaware River’s main channel to 45 feet. This deepening allows today’s ships, such as those that navigate the Panama Canal, to load and off load at ports in Delaware, New Jersey, and Pennsylvania. The project, which was authorized in the Water Resources Development Act, has been undertaken with Pennsylvania’s sponsorship and significant financial participation. The deepening of the Delaware River underwent extensive and appropriate review for its viability, and financial and environmental impacts. Most importantly, the project was required to demonstrate its impact to the national economy prior to the approval of Federal participation and funding. That process is vital to protect national taxpayer funds and is consistent with long-standing procedures for Federal participation in any state’s dredging projects. Moreover, there are longstanding requirements which require ports to pay for ongoing maintenance dredging and to identify long term sites in which to dispose of dredged materials, and which reserve Federal disposal sites for materials dredged from Federal projects. Port operators in our states were required to submit plans and enter into contracts for their maintenance materials and are disposing of that material at considerable expense in private disposal sites. 2205407_1.docx As you may know, the Senate Environment and Public Works Committee (EPW) recently passed the America’s Water Infrastructure Act of 2020 (S. 3591), which included a number of provisions aimed at supporting the expansion of the Port of Wilmington and creating a new facility at Edgemoor, DE. The state entered into a contract with a foreign-owned entity to operate both facilities. These provisions in the Senate bill have the effect of overturning decades old regulations and granting an unprecedented favorable competitive advantage to this foreign operator over existing US-owned and operated facilities in the region. If the Senate bill amendments become law, the new facilities would effectively be federally funded without undergoing the normal review processes. They would not be required to undergo the cost of future maintenance of their project. They would be relieved of the need to plan for and safely dispose of their maintenance materials. And they would enter the regional maritime market with significant cost and time savings over every other port. We believe that the effect of these provisions was not given full consideration in EPW and ask that your committee reject including them in your Water Resources Development Act bill. Moreover, we respectfully request that you specifically deny the waiver of longstanding USACE regulations aimed at protecting our nation’s environment and ensuring proper spending of taxpayer funds. The bipartisan House delegation on both sides of the Delaware River, joined by other members of your committee and a Pennsylvania appropriator, previously sent you a letter opposing these proposals. We are attaching a copy of that letter hereto for you reference. We strongly request your support in this matter because US workers and entities should not be jeopardized by foreign competitors at taxpayer expense, and because Federal legislation should require that all similarly situated organizations compete under the same rules. Thank you for your kind consideration of the foregoing. Sincerely, Tom Wolf Governor Commonwealth of Pennsylvania Phil Murphy Governor State of New Jersey