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based budget… using seven performance guidelines to allocate funds among con- struction projects, to achieve greater value to the Nation from the Civil Works con- struction program. The budget provides a high level of funding for the projects that offer the best returns." "We concur with Secretary Woodley and applaud the Administration's strategy to accelerate high priority projects because they provide high-return benefits, including Olmsted Locks and Dam (Ohio River, IL/KY), McAlpine Lock, (Ohio River, IN/KY), Marmet (Kanawha River, West Virginia), Lower Monongahela River 2, 3 and 4 (PA), as wells as major rehabilitation projects on the system," Palmer continued. These major rehabili- tation projects include Locks and Dams 11, 19 and 24 for the Upper Mississippi River, and the Emsworth Dam downriver from Pittsburgh's Point on the Ohio River. Waterways Council Inc. is, however, concerned about the proposed possible suspension of funding for projects not as far along in their construction cycle, such as Inner Harbor Navigation Lock Replacement (LA), Kentucky Lock (Ten- nessee River, KY), and Chickamauga Lock (Tennessee River, TN). "We are also concerned that the proposed budget does not envision moving more quickly to construct navigation improvements on the Upper Mississippi and Illinois Rivers," said Palmer. Waterways Council Inc. is also encour- aged by the Corps' FY 06 budget request in the Operations & Maintenance (O&M) account for a reserve fund to perform unexpected, yet urgent Corps' mainte- nance and repair at key waterways facili- ties. "There have been emergency shut- downs at 15 key inland navigation facili- ties on America's inland navigation sys- tem in the last three years. These shut- downs, due to a failure of components at lock and dam sites, have created signifi- cant avoidable economic loss to shippers and end users utilizing America's water- ways," Palmer continued. The emergency shutdown of the Greenup Locks and Dams on the Ohio River in October 2003 cost industry users an additional $73 mil- lion due to the unscheduled closure. A critical economic generator, the nation's waterways transport key build- ing-block commodities such as coal, grain, petroleum, chemicals, and aggre- gates that fuel the nation's industrial and agricultural activity. The U.S. barge and towing industry is the most efficient mode of transportation, moving 15 percent of the nation's freight for just two percent of the freight trans- portation cost, saving shippers and con- sumers more than $7 billion annually compared to alternate transportation modes. 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