[Congressional Record Volume 140, Number 84 (Tuesday, June 28, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 28, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                    SENSE OF THE CONGRESS RESOLUTION

                                 ______


                           HON. SAM GEJDENSON

                             of connecticut

                    in the house of representatives

                         Tuesday, June 28, 1994

  Mr. GEJDENSON. Mr. Speaker, today I am introducing a sense of the 
Congress resolution relating to the Oil Pollution Act of 1990. My 
resolution states that marinas should not be classified as offshore 
facilities for the purpose of guaranteeing financial responsibility 
under the act.
  Section 1016 of the Oil Pollution Act requires offshore facilities 
which could pollute the navigable waters of the United States to 
demonstrate $150 million in financial responsibility to cover the costs 
of comprehensive environmental restoration in the event of an oil 
spill. As my colleagues know, the act was passed in large part as a 
response to the Exxon Valdez spill which released 11 million gallons of 
crude oil into Prince William Sound in Alaska. This was the Nation's 
worst oil spill ever and its ramifications continue to be felt today in 
abnormally low fish harvests and ongoing legal battles between 
fishermen, residents, native groups, and Exxon. It is entirely 
appropriate to require that major corporations which transport and 
handle large quantities of heavy oil products to have $150 million in 
financial backing to cover cleanups.
  However, large multimillion dollar corporations are not the only ones 
which would have to comply with this section. The Minerals Management 
Service [MMS], which is writing the regulations to enforce section 
1016, has so broadly defined offshore facilities that marinas coast to 
coast would be covered by this provision. Moreover, it would apply to 
marinas in any navigable waters of the United States. In an advanced 
notice of proposed rulemaking, the MMS would require marinas, which are 
overwhelmingly small businesses, to secure a letter of credit, self-
insure, or obtain an insurance policy worth $150 million. I think it 
goes without saying that this would place an unfair and unwarranted 
burden on marinas, and ultimately, on the boating public.
  Congress didn't intend this section to apply to marinas. Marinas do 
not pose the threat the Oil Pollution Act was passed to address. 
Marinas handle gasoline and diesel fuel only and fuel spills are 
infrequent. According to the Coast Guard, there were 64 fuel spills 
with a volume of 9,642 gallons nationwide in fiscal year 1993. 
Moreover, while I would rather spills never occurred, small fuel spills 
do not have the long-term negative environmental impacts of heavy oil 
spills. The bottom line is that our Nation's marinas do not pose an 
environmental threat warranting this level of coverage.
  As I mentioned above, the vast majority of marinas are small, family-
run businesses. According to the National Association of Marine 
Manufacturers [NAMM], 68 percent of marinas have fewer than 100 slips 
and 87 percent have fewer than 200 slips. These businesses do not have 
the capital to self-insure or secure letters of credit for $150 
million. Moreover, according to NAMM insurance policies for this amount 
are not available for this purpose. In fact, it appears that marinas 
would not be able to secure any of the forms of financial 
responsibility enumerated in the MMS proposal. If they are unable to 
comply with these regulations, they will be forced to discontinue fuel 
sales. This will adversely impact their businesses as well as millions 
of boaters who fuel their boats safely and conveniently where they dock 
their craft.
  Mr. Speaker, my resolution would provide relief to marinas by 
expressing the sense of Congress that marinas should not be classified 
as offshore facilities. It is clear to most that they are onshore 
facilities and should be treated as such. By passing this resolution, 
Congress can send a clear signal to the MMS that marinas are not 
offshore facilities and they should not be covered by section 1016. 
This measure does not reopen the Oil Pollution Act and it will not 
undermine environmental protection. It will provide relief to many 
small businesses and ensure that millions of recreational boaters will 
have convenient and safe sites to fuel their boats. I urge my 
colleagues to support this resolution.

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