[Congressional Record Volume 140, Number 45 (Thursday, April 21, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 S. 2029--DIESEL FUEL TAX REQUIREMENTS

  Mr. GORTON. Mr. President, I am pleased to join my distinguished 
colleague from Louisiana, Senator Breaux, by cosponsoring S. 2029, a 
bill to correct a terrible problem caused by the implementation of the 
diesel fuel tax requirements of last year's tax bill.
  Let me make clear from the outset, Mr. President, that I did not 
support this diesel fuel tax increase. I felt that it would cause 
economic harm to the boating community in the State of Washington, and, 
coupled with the other huge tax increases contained in the bill, would 
hurt our economy. That is why I voted against the budget bill.
  However, the diesel fuel tax increase has been signed into law, and I 
must now turn my attention to the manner in which it is being 
implemented. Unfortunately, I have heard from the boating community in 
Washington State that this implementation will wreak havoc.
  The problem stems from the dyeing requirements for diesel fuel 
contained in the Omnibus Budget Reconciliation Act of 1993. Under this 
new law, diesel fuel used in recreational boats is subject to a 24.4-
cents-per-gallon tax, while diesel fuel used for commercial purposes is 
not taxed and must be dyed before it is sold.
  Marinas now must stock two separate fuel systems--one for dyed fuel 
and one for clear fuel. Many marinas throughout the State of Washington 
are not equipped to stock two separate fuel systems to handle dyed and 
clear fuels, and cannot afford the exorbitant expense of installing a 
new system. In the end, the marinas will have to choose which type of 
fuel they will sell.
  As an example of the kind of hardship this regulation has caused, the 
owner and operator of Port Angeles Marine has told me that his marina 
is not set up to dispense two types of diesel fuel, yet it is the only 
marine fuel facility in Port Angeles. Because he sells most of his 
diesel fuel to commercial users, such as ferry boats, tug boats, and 
fishing vessels, he has chosen to sell dyed fuel. In this instance, 
recreational boaters are left out in the cold, without adequate fueling 
facilities. Both marinas and recreational boaters lose in this 
situation. Marinas lose part of their customer base and recreational 
boaters lose their ability to purchase diesel fuel.
  The executive director of the Port of Grays Harbor tells me of 
another example. To improve the depressed economic condition of this 
area, the Port of Grays Harbor is embarking on a strategy to attract 
greater use of their various marinas and docks by recreational boaters 
who are vacationing from Oregon and California. This economic 
initiative, however, is being undermined by the fact that recreational 
boaters are not able to purchase clear, taxable diesel fuel from most 
marinas in this area. Therefore, this community is being denied the 
opportunity to expand its tourism industry to recreational boaters.
  The two situations which I just described are only a sampling of the 
problems that marinas, ports and boaters throughout the State of 
Washington have been experiencing. The boating community has been 
telling me about the nightmare posed by these regulations and the major 
headaches cased by their implementation. I have heard their call and 
agree that this situation must be rectified.
  That is why I wrote to Treasury Secretary Lloyd Bentsen earlier this 
month, bringing this situation to his attention, and asking how the 
Treasury Department will address this issue and solve the problem. And 
that is why I am joining with my colleague, Senator Breaux, by 
cosponsoring this legislation.
  This bill is simple. It would allow the sale of dyed diesel fuel to 
recreational boaters who pay the diesel fuel tax. It will solve the 
problem of inadequate fuel facilities for recreational boaters and 
restore some common sense to this situation.
  Mr. President, this issue is extremely important to the boating 
community, the ports and the marinas of my home State of Washington. 
They've presented their case very convincingly, and this issue is 
important to me. I encourage my colleagues to review this legislation 
and join as a cosponsor. Together, we can solve this problem.

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