Federal Water Resources
Development Act of 2007
The Water Resources Development Act of
2007 (WRDA), regarded as the largest civil works bill in the nation’s
history, was recently passed by Congress and signed into law by the
President. The new law mandates federal budget authorizations of $23 billion
in funding for more than 900 projects overseen by the U.S. Army Corps of
Engineers.
The projects, which currently will impact 24 states, include flood control,
coastal restoration, navigation and recreational projects, as well as
studies for future projects.
Numerous construction industry groups, including the Construction Management
Association of America and the Associated General Contractors of America,
urged passage of the measure. The economic benefits of this new law for the
construction industry are expected to be significant.
Who Gets What
Utility contractors are likely to be among the winners since the WRDA
authorizes $2.4 billion for water and wastewater projects. Other contractors
will benefit from an estimated $1.9 billion allocated for the construction
of enhanced navigation improvements for the Upper Mississippi River. In
addition, $1.7 billion will be spent on an ecosystem restoration project,
also for the Upper Mississippi River.
The Gulf Coast, which has seen significant construction activity since
Hurricane Katrina, will benefit from money allocated for coastal restoration
projects
and water control infrastructure that are needed to mitigate hurricane
damage. An estimated $600 million will be spent on reducing hurricane and
flood damage across 1,700 square miles of coastal Louisiana.
In all, the Congressional Budget Office estimates that nearly $7 billion
will be spent over the next 10 years on these Gulf Coast projects.
Work-In-Process is provided by
Somerset for our clients and other interested persons upon request.
Since technical information is presented in generalized fashion, no
final conclusion on these topics should be made without further review.
For additional information on the issues discussed,
please contact
Ken
Hedlund,
Jay Feller,
Steve George,
Chris
Mayfield or
Rebecca Ogle
of our
Construction & A/E Team.
This document is not intended or written to be used, and cannot be used,
for the purpose of avoiding tax penalties that may be imposed on the
taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
