President Barack Obama has proposed new fees on U.S. inland-waterways users, such as Cargill Inc., that would raise $1.1 billion in 10 years to build and repair locks and dams, Bloomberg reported.

The administration is seeking a two-tier fee that would augment diesel-fuel taxes paid by vessel operators, according to details of its deficit-reduction proposal sent to members of Congress. The fuel tax of 20 cents per gallon brings in about $80 million to $100 million a year. Shippers have pushed for an increase in the fuel tax to as much as 29 cents a gallon.

Many locks and dams on U.S. inland waterways are more than 50 years old and in disrepair.

“There is no doubt that the inland waterways need additional funding,” said Mike Steenhoek, executive director of the Soy Transportation Coalition, an Ankeny-based industry group. “But shifting more of the costs to the users defeats the overall goal of making U.S. products more affordable, particularly in overseas markets.”