Final Report
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June 2018 This page intentionally left blank. Figure ES-1: Recommended Plan This page intentionally left blank. San Juan Harbor Integrated Feasibility Report and Environmental Assessment EXECUTIVE SUMMARY Integrated Feasibility Report and Environmental Assessment (IFR/EA) are used to determine if there is a Federal interest in navigation improvements at San Juan Harbor, Puerto Rico. The USACE study authority for this IFR/EA is House Resolution 2764 of the Committee on Transportation and Infrastructure, U.S. House of Representatives, adopted September 20, 2006, which authorizes the Secretary of the Army to determine the feasibility of providing navigation improvements at San Juan Harbor, Puerto Rico to increase security, safety and efficiency. DESCRIPTION OF REPORT The lead agency for this navigation study is the U.S. Army Corps of Engineers, Jacksonville District (USACE). The Puerto Rico Ports Authority (PRPA) is the non-Federal sponsor. The USACE navigation mission statement is to provide safe, reliable, efficient, and environmentally sustainable waterborne transportation systems for movement of commerce, national security, and recreation consistent with the Environmental Operating Principles. The Environmental Operating Principles are: • Foster sustainability as a way of life throughout the organization. • Proactively consider environmental consequences of all the U.S. Army Corps of Engineers (USACE) activities and act accordingly. • Create mutually supporting economic and environmentally sustainable solutions. • Continue to meet our corporate responsibility and accountability under the law for activities undertaken by the USACE, which may impact human and natural environment. • Consider the environment in employing a risk management and systems approach throughout life cycles of projects and programs. • Leverage scientific, economic, and social knowledge to understand the environmental context and effects of the USACE actions in a collaborative manner. • Employ an open, transparent process that respects views of individuals and groups interested in the USACE activities. In accordance with the USACE navigation mission and the Environmental Operating Principles, this Integrated Feasibility Report and Environmental Assessment (IFR/EA) documents the study process and presents the results of investigations and analyses conducted to evaluate modifications to the existing Federal navigation system to improve its ability to efficiently serve the current and future vessel fleet and process the forecasted cargo volumes. The San Juan Harbor, Puerto Rico study area encompasses the bar (entrance) channel, inner harbor channels, offshore dredged material placement sites, beneficial use dredged material placement sites, and any extension of the water bodies and shorelines that could be impacted by proposed improvements. This IFR/EA presents: (1) a survey of existing and future conditions; (2) an evaluation of related problems and opportunities; (3) development of potential alternatives; (4) a comparison of costs, benefits, adverse impacts, and feasibility of those alternatives; and (5) the results of the engineering, economic, environmental, and real estate investigations performed for this study which are used to determine if there is a Federal interest in navigation improvements at San Juan Harbor for identification of a National Economic Development (NED) Plan and a Recommended Plan. ES-1 San Juan Harbor Integrated Feasibility Report and Environmental Assessment PURPOSE AND NEED As the cargo transportation industry continues to shift to larger, more efficient petroleum tankers and larger cruise ships to meet increased passenger transportation needs, the vessel fleet is trending toward larger, deeper-draft vessels, particularly for gasoline, jet fuel, diesel, liquefied petroleum gas (LPG) products, and liquefied natural gas (LNG). The Federal channels serving San Juan Harbor’s major terminals are currently authorized to depths ranging from -30 to -40 feet MLLW. To reach port terminals, existing petroleum product tankers must light load, which results in additional transits to provide the required quantities of gasoline, jet fuel, diesel fuel, and other petroleum products for the island. These channel depth constraints require vessel operators to forego potential transportation cost savings available from the economies of scale associated with existing and larger ships drafting deeper. Restrictive channel widths along Army Terminal Channel also limit access of larger Long Range (LR2) tankers and future LNG ships to terminals at the Army Terminal Turning Basin. Additionally, prevailing winds from the east at 25 30 knots can increase the effective beam of vessels. This problem is particularly notable in the Bar Channel. For cruise ships, the limiting channel depths in cruise ship related channels and basins restrict maneuverability for turn-and-go movements, ultimately increasing transit time within the harbor. The purpose of this study is to reduce or eliminate transportation cost inefficiencies for the petroleum product tankers and larger cruise ships transiting the Federals channels of San Juan Harbor and to avoid and/or minimize environmental impacts. The study is needed as the existing depths and widths of the Federal channels place constraints on vessels currently calling San Juan Harbor. These navigation concerns are primarily attributed to three main problems: difficult wind and wave conditions, limited channel and turning basin widths, and insufficient Federal channel depths. RECOMMENDED PLAN Federal interest in cost sharing of the navigation improvements for the Recommended Plan are based on the expected returns to the national economy, or National Economic Development (NED) benefits. NED benefits are generated by reducing inefficiencies in the existing transportation system resulting in transportation cost savings or reducing transportation costs. Net benefits are calculated by subtracting the total cost to construct and maintain the improvements over a 50-year study period from the total transportation cost savings (project benefits) that would be generated by the proposed improvements over that period. The NED Plan is the alternative that reasonably maximizes net average annual equivalent (AAEQ) NED benefits (AAEQ benefits minus AAEQ costs) while remaining consistent with the Federal objective of protecting the Nation’s environment. Alternative plans combining multiple structural and nonstructural measures to improve the efficiency of the navigation system were assessed to determine the Recommended Plan. In this study, the Recommended Plan is the NED plan. It proposes navigation improvements by combining the identified measures within the following economic modeling phases: From Economic Modeling Phase 1: Widen Army Terminal Channel 100 feet (from an existing width of 350 feet to a width of 450 feet) at the existing depth of -40 feet mean lower low water (MLLW). From Economic Modeling Phase 2: Deepen Cut-6 to -46 feet MLLW, Anegado Channel to -44 feet MLLW, widen Army Terminal Channel by 100-foot to a width of 450 feet, deepen Army Terminal Channel (ATC) to -44 feet MLLW, deepen Army Terminal Turning Basin (ATTB) to -44 feet MLLW, and construct two flares (east and west) in the Army Terminal Turning Basin to -44 feet MLLW. ES-2 San Juan Harbor Integrated Feasibility Report and Environmental Assessment And, from Economic Modeling Phase 5: Deepen San Antonio Channel, San Antonio Approach Channel, San Antonio Channel Extension, and Cruise Ship Basin East to the authorized depth of -36 feet MLLW. Expand the limits of San Antonio Channel Extension by 1,050 feet to the east. Dredged Material Placement Options: Base Plan - Place dredged material at the existing Ocean Dredged Material Disposal Site (ODMDS). Estimate includes use of a mechanical clamshell dredge in combination with a hydraulic hopper dredge to excavate approximately 2.2 million cubic yards of material. Optional beneficial use of dredged material involves the filling of artificial depressions in Condado Lagoon to restore seagrass habitat and improve water quality. The Recommended Plan is economically justified. Based on evaluation of existing surveys and benthic surveys conducted by both the National Marine Fisheries Service (NMFS) Habitat Conservation Division (HCD) and the USACE Planning and Operations Divisions (PD/OD), deepening and widening improvements of the Recommended Plan are not anticipated to result in direct impacts to submerged aquatic vegetation (SAV). Impacts to listed corals from dredging and dredged material transport related turbidity are not anticipated. The Recommended Plan recommends widening and deepening the inner harbor channels leading to several petroleum terminal operators within the Army Terminal Turning Basin. Deepening would also occur to the Federal channels leading to cruise ship terminals. Specifically, the Recommended Plan recommends deepening Cut-6 of the entrance channel from -42 feet to -46 feet MLLW, deepening the Anegado Channel, the Army Terminal Channel, and the Army Terminal Turning Basin from -40 feet to -44 feet MLLW. Widening involves a 50-foot widener to both sides of Army Terminal Channel to increase the total width by 100 feet from 350 feet to 450 feet, and eastern and western flares at the southern terminus of the Army Terminal Turning Basin to accommodate larger vessels. The Recommended Plan also includes a 1,050 foot expansion of the San Antonio Channel Extension. Additionally, the Recommended Plan includes