Inland Navigation Improvement Act

Inland Navigation Improvement Act - Authorizes the Secretary of the Army acting through the Chief of the Corps of Engineers, to replace locks and dam 26, Mississippi River, Alton, Illinois, in accordance with the project report dated July 31, 1976.

Authorizes the Secretary of the Army, acting through the Chief of the Corps of Engineers, to replace as a part of such project, the terrestrial wildlife habitat inundated by project construction, and to manage such lands for wildlife mitigation purposes. Authorizes the Secretary to construct a project-related recreation development near Ellis Island, Missouri, on a cost-sharing basis with Missouri. Directs that such recreation area be administered in accordance with the Federal Water Project Recreation Act.

Establishes the Mississippi River navigation channel above Alton, Illinois, at nine feet. Prohibits the Secretary or other Federal officials from studying the feasibility of deepening the navigation channels in the Minnesota River, Minnesota; Black River, Wisconsin; Saint Croix River, Minnesota and Wisconsin; the Mississippi River north of Cairo, Illinois; Kaskaskia River, Illinois; and Illinois River, Illinois.

Directs the President to study the alternative of rehabilitating the present lock and dam structure at Alton, Illinois. Permits the President to proceed with new construction if he finds the rehabilitation alternative not to be in the best interests of the United States. Requires the President to report to Congress if such rehabilitation appears feasible. Permits the President, in the latter instance, to proceed with the new construction, if Congress fails to act within 120 days.

Creates an Upper Mississippi River System Council consisting of the Secretary of Transportation, the Secretary of Agriculture, the Chair of the Council on Environmental Quality, the Secretary of the Army, the Secretary of the Interior, the Administrator of the Environmental Protection Agency, and the Governors of Wisconsin, Minnesota, Iowa, Missouri, and Illinois. Directs the Council to prepare a comprehensive master plan for the management of the Upper Mississippi River system. Directs the Council in such preparation to cooperate with appropriate State and local agencies. Requires such master plan: (1) to identify the economic, recreational, and environmental objectives of the Upper Mississippi River system; and (2) to recommend guidelines for such objectives. Requires the guidelines of such master plan to include channel maintenance, minimizing dredging volumes, uses of dredged material barge fleeting, water quality, fish and wildlife protection, wilderness preservation, and fish and wildlife refuge management.

Authorizes the Council to carry out necessary studies, including those concerning the environmental and economic effects of present and projected traffic levels. Requires the Council to utilize, to the fullest extent possible, the Upper Mississippi River Resources Management (GREAT) study. Authorizes the Secretary of the Army to provide for the Secretary of the Interior to study the carrying capacity of the System, its ecological impact, the impact of navigation expansion, operation and maintenance programs, wildlife loss mitigation, the environmental impact of a second lock at Alton, Illinois, the relationship of navigation expansion to national transportation policy, and the impact on rail service.

Prohibits the Secretary of the Army from undertaking the rehabilitation, replacement, or construction of locks and dams which will increase the traffic capacity of the upper Mississippi River system, until Congress has approved the master plan. Authorizes the appropriation of $20,000,000 for master plan.

Directs the Secretary of the Army, acting through the Chief of Engineers and in concurrence with the Secretary of Transportation, to promulgate final regulations implementing nonstructural improvements to minimize congestion on the Illinois River and the Mississippi River.

Requires the Secretary of Transportation to establish, after hearings and notice in the Federal Register, a system of user charges intended to recover a portion of Federal navigation-related costs of the operation, maintenance, new construction, and rehabilitation of inland waterways. Bases the assessment of such charges upon: (1) the annual operation, construction, and rehabilitation costs of inland waterways; (2) the volume of traffic; (3) seasonal and peak demand periods; and (4) other factors. Authorizes the Secretary of Transportation to utilize as mechanisms of such system: (1) license fees; (2) congestion charges; (3) ton-miles charges; (4) lockage fees; and (5) cargo capacity. Directs the Secretary of Transportation to allow vessels using the inland waterways to deduct from user charges any Federal tax (including a tax on fuels) which may be imposed exclusively on vessels after enactment of this Act. Requires that final rates be adequate to recover 100 percent of the Federal navigation-related expenditures for operation, maintenance, new construction, and rehabilitation of inland waterways. Sets forth procedures for implementation of such charges over a five year period. Imposes a fine of $5,000 per day for failure to pay user charges, and prohibits the violator from using any lock in the inland water system during the period of such violation. Requires the Secretary of the Treasury, in cooperation with the Secretary of the Army, to submit to Congress three years after the implementation of a system of user charges, a report describing the economic impact and effectiveness of such charges.