[Congressional Record Volume 142, Number 129 (Wednesday, September 18, 1996)]
[House]
[Pages H10540-H10543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    DEEPWATER PORT MODERNIZATION ACT

  Mr. SHUSTER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2940) to amend the Deepwater Port Act of 1974, as amended.
  The Clerk read as follows:

                               H.R. 2940

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Deepwater Port Modernization 
     Act''.

     SEC. 2. DECLARATIONS OF PURPOSE AND POLICY.

       (a) Purposes.--The purposes of this Act are to--
       (1) update and improve the Deepwater Port Act of 1974;
       (2) assure that the regulation of deepwater ports is not 
     more burdensome or stringent than necessary in comparison to 
     the regulation of other modes of importing or transporting 
     oil;
       (3) recognize that deepwater ports are generally subject to 
     effective competition from alternative transportation modes 
     and eliminate, for as long as a port remains subject to 
     effective competition, unnecessary Federal regulatory 
     oversight or involvement in the ports' business and economic 
     decisions; and
       (4) promote innovation, flexibility, and efficiency in the 
     management and operation of deepwater ports by removing or 
     reducing any duplicative, unnecessary, or overly burdensome 
     Federal regulations or license provisions.
       (b) Policy.--Section 2(a) of the Deepwater Port Act of 1974 
     (33 U.S.C. 1501(a)) is amended--
       (1) by striking ``and'' at the end of paragraph (3);
       (2) by striking the period at the end of paragraph (4) and 
     inserting a semicolon; and
       (3) by inserting at the end the following:
       ``(5) promote the construction and operation of deepwater 
     ports as a safe and effective means of importing oil into the 
     United States and transporting oil from the outer continental 
     shelf while minimizing tanker traffic and the risks attendant 
     thereto; and
       ``(6) promote oil production on the outer continental shelf 
     by affording an economic and safe means of transportation of 
     outer continental shelf oil to the United States mainland.''.

     SEC. 3. DEFINITIONS.

       (a) Antitrust Laws.--Section 3 of the Deepwater Port Act of 
     1974 (33 U.S.C. 1502) is amended--
       (1) by striking paragraph (3); and
       (2) by redesignating paragraphs (4) through (19) as 
     paragraphs (3) through (18), respectively.
       (b) Deepwater Port.--The first sentence of section 3(9) of 
     such Act, as redesignated by subsection (a), is amended by 
     striking ``such structures,'' and all that follows through 
     ``section 23.'' and inserting the following: ``structures, 
     located beyond the territorial sea and off the coast of 
     the United States and which are used or intended for use 
     as a port or terminal for the transportation, storage, and 
     further handling of oil for transportation to any State, 
     except as otherwise provided in section 23, and for other 
     uses not inconsistent with the purposes of this Act, 
     including transportation of oil from the United States 
     outer continental shelf.''.

     SEC. 4. LICENSES.

       (a) Elimination of Utilization Restrictions.--Section 4(a) 
     of the Deepwater Port Act of 1974 (33 U.S.C. 1503(a)) is 
     amended by striking all that follows the second sentence.
       (b) Elimination of Precondition to Licensing.--Section 4(c) 
     of such Act is amended--
       (1) by striking paragraph (7); and
       (2) by redesignating paragraphs (8), (9), and (10) as 
     paragraphs (7), (8), and (9), respectively.
       (c) Conditions Prescribed by Secretary.--Section 4(e)(1) of 
     such Act is amended by striking the first sentence and 
     inserting the following: ``In issuing a license for the 
     ownership, construction, and operation of a deepwater port, 
     the Secretary shall prescribe those conditions which the 
     Secretary deems necessary to carry out the provisions and 
     requirements of this Act or which are otherwise required by 
     any Federal department or agency pursuant to the terms of 
     this Act. To the extent practicable, conditions required to 
     carry out the provisions and requirements of this Act shall 
     be addressed in license conditions rather than by regulation 
     and, to the extent practicable, the license shall allow a 
     deepwater port's operating procedures to be stated in an 
     operations manual approved by the Coast Guard rather than in 
     detailed and specific license conditions or regulations; 
     except that basic standards and conditions shall be addressed 
     in regulations.''.

[[Page H10541]]

       (d) Elimination of Restriction Relating to Applications.--
     Section 4(e)(2) of such Act is amended by striking 
     ``application'' and inserting ``license''.
       (e) Findings Required for Transfers.--Section 4(f) of such 
     Act is amended to read as follows:
       ``(f) Amendments, Transfers, and Reinstatements.--The 
     Secretary may amend, transfer, or reinstate a license issued 
     under this Act if the Secretary finds that the amendment, 
     transfer, or reinstatement is consistent with the 
     requirements of this Act.''.

     SEC. 5. INFORMATIONAL FILINGS.

       Section 5(c) of the Deepwater Port Act of 1974 (33 U.S.C. 
     1504(c)) is amended by adding the following:
       ``(3) Upon written request of any person subject to this 
     subsection, the Secretary may make a determination in writing 
     to exempt such person from any of the information filing 
     provisions enumerated in this subsection or the regulations 
     implementing this section if the Secretary determines that 
     such information is not necessary to facilitate the 
     Secretary's determinations under section 4 of this Act and 
     that such exemption will not limit public review and 
     evaluation of the deepwater port project.''.

     SEC. 6. ANTITRUST REVIEW.

       Section 7 of the Deepwater Port Act of 1974 (33 U.S.C. 
     1506) is repealed.

     SEC. 7. OPERATION.

       (a) As Common Carrier.--Section 8(a) of the Deepwater Port 
     Act of 1974 (33 U.S.C. 1507(a)) is amended by inserting after 
     ``subtitle IV of title 49, United States Code,'' the 
     following: ``and shall accept, transport, or convey without 
     discrimination all oil delivered to the deepwater port with 
     respect to which its license is issued,''.
       (b) Conforming Amendment.--Section 8(b) of such Act is 
     amended by striking the first sentence and the first 3 words 
     of the second sentence and inserting the following: ``A 
     licensee is not discriminating under this section and''.

     SEC. 8. MARINE ENVIRONMENTAL PROTECTION AND NAVIGATIONAL 
                   SAFETY.

       Section 10(a) of the Deepwater Port Act of 1974 (33 U.S.C. 
     1509(a)) is amended--
       (1) by inserting after ``international law'' the following: 
     ``and the provision of adequate opportunities for public 
     involvement'';
       (2) by striking ``shall prescribe by regulation and enforce 
     procedures with respect to any deepwater port, including, but 
     not limited to,'' and inserting the following ``shall 
     prescribe and enforce procedures, either by regulation (for 
     basic standards and conditions) or by the licensee's 
     operations manual, with respect to''; and
       (3) by redesignating clauses (A), (B), and (C) as clauses 
     (1), (2), and (3), respectively.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Pennsylvania [Mr. Shuster] and the gentleman from Pennsylvania [Mr. 
Borski] each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Shuster].
  Mr. SHUSTER. Mr. Speaker, I am pleased to yield such time as he might 
consume to the gentleman from New York [Mr. Boehlert].
  Mr. BOEHLERT. Mr. Speaker, I thank the distinguished chairman of the 
committee for yielding time to me.
  Mr. Speaker, I rise this morning in strong support of this bipartisan 
legislation to improve the way we manage and promote the use of 
deepwater ports. Unfortunately, only one deepwater port has been 
constructed since the passage of the original 1974 Deepwater Ports Act, 
the Loop facility off the coast of Louisiana.
  Deepwater ports make environmental and transportation safety sense, 
and with the passage of this measure, deepwater ports will make 
economic sense. By unloading supertankers laden with oil in deep 
offshore waters, we can dramatically reduce the likelihood of 
catastrophic oil spills like we have witnessed on both the Pacific 
coast and, most recently, off the coast of Rhode Island.
  The Louisiana delegation has long realized the benefits of deepwater 
ports and has taken the lead in developing H.R. 2940. The gentleman 
from Louisiana [Mr. Hayes] has been especially effective in educating 
the members of the Committee on Transportation and Infrastructure on 
the merits of deepwater ports. Deepwater ports will become increasingly 
important as traffic entering our Nation's ports continues to grow.
  This legislation has been developed with extensive input from 
transportation and environmental interests, and I am confident that 
this measure reflects the best ideas of both of these very important 
constituencies. We should be doing more to promote the use of deepwater 
ports, and this legislation is a huge step in the right direction.
  As we enter into the next century, it would be my hope that we could 
develop deepwater ports for the Atlantic and Pacific coast as well. I 
urge all of my colleagues to support the passage of this Deepwater Port 
Modernization Act.
  I thank the ranking member of our subcommittee, the gentleman from 
Pennsylvania [Mr. Borski], for his cooperation, I thank the 
distinguished chairman of the full committee, the gentleman from 
Pennsylvania [Mr. Shuster], for his leadership, and the ranking member 
of the full committee, the gentleman from Minnesota [Mr. Oberstar], for 
his partnership. Together we are moving on important legislation.
  Mr. BORSKI. Mr. Speaker, I yield myself such time as I may consume.
   Mr. Speaker, I rise in strong support of H.R. 2940, the Deepwater 
Port Modernization Act, which will help streamline the layers of 
regulation that apply to deepwater ports. Despite the ever growing 
thirst in this country for imported oil, there is currently only one 
deepwater port operating, and that port, the Loop facility in 
Louisiana, is only operating at 60 percent of its capacity.
  The changes contained in H.R. 2940 should make it easier for 
deepwater ports to compete against other shipment options which do not 
face the same complex web of regulations. With passage of H.R. 2940, 
coordinated licenses and operation manuals will streamline the process. 
I want to emphasize that a provision in the introduced bill that would 
have allowed a relaxation of environmental monitoring requirements for 
deepwater ports has been removed to address serious concerns about it.
  H.R. 2940 contains only modest changes to existing law. Hopefully 
these changes will be enough to provide the springboard for more 
widespread use of deepwater ports for oil imports that was envisioned 
by the Deepwater Port Act of 1974. During the past 3 years a daily 
average of 700,000 barrels of oil have passed through the 48-inch 
pipeline that links the Louisiana offshore oil port 18 miles off the 
Louisiana coast to its inland storage terminal.
  Loop is the off-loading point for about 12 percent of the Nation's 
oil imports. With the passage of this bill, and as the Nation's oil 
imports increase, Loop and other proposed deepwater ports should be 
used on a greater scale. H.R. 2940 is a sensible streamlining of 
regulations for an efficient means of meeting our Nation's needs for 
imported oil.
  I believe very strongly, Mr. Speaker, that we should be working to 
reduce the demand for imported oil. Our Nation cannot maintain its 
position as a global power if we continue to increase our demand for 
foreign oil on a virtually unlimited basis.
  However, until we begin to turn our oil import policy around, the use 
of deepwater ports makes sense. I urge support of H.R. 2940, the 
Deepwater Port Modernization Act.
   Mr. Speaker, I reserve the balance of my time.

                              {time}  1115

  Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
  I would urge strong support for this legislation which is bipartisan 
and updates and improves the Deep Water Port Act of 1974. 
Representative Jimmy Hayes along with other colleagues introduced this 
legislation back in February. Our committee held hearings and worked 
with all the interested parties to craft this legislation. In some 
respects, the 1974 act has worked very well. However, there is a clear 
need to modernize and improve this act in several areas which have 
already been outlined. The committee report on this legislation 
contains a detailed description of the bill and of the committee's 
intent.
  Finally, let me thank the ranking Democrat of the committee, Jim 
Oberstar, the chairman and ranking member of the Water Resources and 
Environment Subcommittee, Sherry Boehlert and Bob Borski, and the 
chairman and ranking member of the Coast Guard and Maritime 
Transportation Subcommittee, Howard Coble and Bob Clement. They have 
been very instrumental in moving this important legislation. I would 
urge its strong support.
   Mr. Speaker, I reserve the balance of my time.

[[Page H10542]]

  Mr. BORSKI. Mr. Speaker, I yield 3 minutes to the gentleman from 
Tennessee [Mr. Clement], the distinguished ranking member of the 
Subcommittee on Coast Guard and Maritime Transportation.
  Mr. CLEMENT. Mr. Speaker, I rise in strong support of H.R. 2940, the 
Deepwater Port Modernization Act. This bill will streamline the 
licensing and operating procedures.
  On March 28, the Subcommittee on Coast Guard and Maritime 
Transportation held a joint hearing on this bill with the Subcommittee 
on Water Resources. At that time we received testimony from the 
administration, the deepwater port industry, and the environmental 
community on this legislation and how this industry has developed much 
differently from what was anticipated when the Deepwater Port Act was 
enacted in 1974.
  The amendments contained in H.R. 2940 will allow the deepwater 
facility in Louisiana and the proposed deepwater port in Texas to meet 
new market conditions. For example, the present law prohibits the 
deepwater port from shipping oil from other oil production facilities 
on our outer Continental Shelf to refineries on shore. This prohibition 
is eliminated to allow these facilities more flexibility in their 
operations.
  Since we have had only one deepwater port built to date, the 
regulations and licensing process were designed for that single 
facility. As a result the bureaucratic hurdles that must be overcome to 
make minor changes to the facility are overly burdensome and expensive. 
H.R. 2940 will allow many of the day-to-day decisions affecting the 
facility and minor modifications to the port to be completed by getting 
the approval of the local Coast Guard captain of the port instead of 
the Secretary of Transportation.
  The history of the deepwater port in Louisiana demonstrates that this 
facility is safe and poses less of a threat to the environment than 
lightering crude oil between two floating tankers.
  I am hopeful that H.R. 2940 will make the LOOP deepwater port 
facility more cost efficient and promote the construction of other 
deepwater ports in the United States.
  I urge my colleagues to support the passage of H.R. 2940, the 
Deepwater Port Modernization Act.
  Mr. SHUSTER. Mr. Speaker, I yield such time as he may consume to the 
distinguished gentleman from Louisiana [Mr. Hayes] who has been a prime 
mover of this legislation.
  Mr. HAYES. Mr. Speaker, I wish to thank both sides of the aisle, in 
the room as well as in the committee, and to briefly repeat the 
argument that was made that as a consequence of our energy dependence, 
we have the extraordinary circumstance where America is now looking at 
more of its energy needs coming from the region in the world that is 
most unstable, so that even with a small skirmish in the northern part 
of one country, the price of a barrel of oil moves up almost 30 
percent. This just cannot be acceptable as future energy policy.
  In connection with what the House has done earlier in recognizing 
additional production that can be gained through advanced technology on 
our Outer Continental Shelf, it then becomes a simple question to 
understand what is the most environmentally efficient way to try to 
reduce energy dependence as well as to make sure that those folks in 
Pennsylvania, in the Northeast, as well as at my home on the gulf 
coast, are able to plan their future needs based upon a price of energy 
that allows them to lead their daily lives.
  The answer is, we have got to increase the ability to move these 
ports. Whenever they give you a quote in a national news media about 
the price of oil, they do not tell you the cost to get it to the pump. 
When you begin looking at tens of thousands of miles in movement each 
and every year, you understand that all of that cost is added on, as 
opposed to shallow and deep offshore with much smaller distances to 
move.

  The environmental dangers elevate with every mile that a tanker 
moves, and therefore, energy dependence on the Middle East also means 
environmental concerns and fears at a higher and higher level.
  Finally, to my knowledge, no one in this place that keeps a notebook 
and a report on just about every subject has ever calculated the cost 
of our military presence in a region that we defend almost solely 
because of its energy production capability that we are so dependent 
upon. I wonder what the price of a barrel of oil would be in the Middle 
East if you put on the line all of those military personnel, aircraft 
carriers, and F-117A's that make that security, hopefully, dependable 
for the immediate future.
  With that in mind, I want to again thank my colleagues on both sides 
of the aisle. This is the right thing for the only existing facility in 
Louisiana, and Louisiana is doing the right thing in helping to ensure 
the energy independence of America's future, for Pennsylvania and the 
rest of the Nation.
  Mr. BORSKI. Mr. Speaker, I yield 3 minutes to the gentleman from 
Minnesota [Mr. Oberstar], the distinguished ranking member of the 
Committee on Transportation and Infrastructure.
  Mr. OBERSTAR. Mr. Speaker, this bill has a broad consensus now and 
should pass. It was not always so.
  At the outset, when the legislation was first proposed to revitalize 
the Louisiana offshore oil port and to revitalize the basic underlying 
law itself, there was considerable environmental concern and vigorous 
opposition. In fact, there were concerns expressed by the Department of 
Transportation that wanted to maintain a very strong regulatory hold on 
this legislation. Those concerns came to my attention.
  I discussed these matters with the gentleman from Pennsylvania [Mr. 
Shuster], our chairman, and with the gentleman from New York [Mr. 
Boehlert] and the gentleman from Pennsylvania [Mr. Borski], the 
chairman and ranking member of the subcommittee, and we set about on 
our side to resolve within our Democratic ranks the outstanding issues. 
We brought in the environmental groups, we brought in the Department of 
Transportation, we heard them out, and we came up with proposals which 
I think were well received by the majority. We worked out a very fine 
bipartisan solution.
  I say that because I have a piece of legislation pending in the other 
body that is not receiving the same kind of comity. I would hope that 
the leading supporters of this legislation in the other body would 
extend the same comity to concerns House Members have about issues that 
are intensely of concern to the people in their district.

  This legislation is going to benefit not only the Louisiana offshore 
oil port but all future possible deep water ports by allowing ports to 
become more competitive, be more efficient and to do so in an 
environmentally safe regime with economic considerations that will 
advance the cause of energy efficiency and keep the cost of imported 
energy within reach and keep our U.S. ports competitive.
  We can do those things when we work together on a sound, bipartisan, 
constructive basis, to look at what is best for the overall interests 
of the country. I urge the same kind of comity from our colleagues in 
the other body.
  It had been my intention to obstruct the passage of this legislation 
by asking for a recorded vote, but I will not do that out of respect 
for our chairman and out of respect for the merits of the issue and in 
hopes that we get the attention of our colleagues across the way.
  Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
  I want to assure the gentleman from Minnesota that, as he knows, I am 
very well aware of the important legislation that he is referring to in 
the other body and as he knows we have already expressed our strong 
support for his legislation and this legislation, while I expect will 
pass the House overwhelmingly today, of course, what happens as we go 
to conference is a question mark and that question could be answered in 
the affirmative or the negative based on the comity which we know our 
good friends in the other body are likely to give to us.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I support this important 
legislation. It amends the Deepwater Port Act to remove some 
restrictions on the use of deepwater ports and clarifies and simplifies 
certain Coast Guard regulations. This legislation is designed to 
strengthen the ability of deepwater oil ports off of the U.S. coast 
beyond U.S. territorial waters to conduct their business. There is 
currently only one licensed deepwater port off of the

[[Page H10543]]

coast of the United States, which is the Louisiana Offshore Oil Port. I 
hope this legislation will help us see more of such ports off of the 
U.S. coast, especially in my home State of Texas.
  With respect to operations of a deepwater port, the bill would 
require deepwater ports to only comply with regulations established in 
the Transportation Department's facilities operations manual instead of 
the various other licensing provisions that are currently required. 
Additionally, the bill would enable the Coast Guard to streamline the 
approval process for maintaining certain environmental safeguards.
  Mr. HAYES. Mr. Speaker, when the U.S. House of Representatives first 
debated the merits of deepwater ports on June 6, 1974, Members on that 
day supported the concept of deepwater ports much for the same reasons 
that we support them here today--deepwater ports make environmental and 
economic common sense. This afternoon, H.R. 2940, the Deepwater Port 
Modernization Act, epitomizes the very essence of how this 104th 
Congress has tried to streamline our Federal regulatory structure to 
better meet the needs of the regulated community while still protecting 
the public interest and the environment.
  H.R. 2940 will reduce the top-down, duplicate and unnecessary 
barriers that inhibit our Nation's only deepwater port--the Louisiana 
Offshore Oil Port [LOOP]--from making the business decisions required 
to most effectively compete in today's marketplace. This bill will make 
it easier for other potential deepwater ports to be constructed and 
operated successfully. Finally, H.R. 2940 will further improve one of 
the most cost effective and environmentally friendly means of 
transporting crude oil onshore.
  The Deepwater Port Modernization Act clarifies LOOP's authority to 
receive oil from the Outer Continental Shelf [OCS]. Deepwater finds 
will significantly reduce our national dependence on imported oil and 
help keep more investments in oil exploration and production in 
Louisiana. Approximately 30 discoveries have been made by the offshore 
oil and gas industry on deepwater leases in the Gulf of Mexico, 
amounting to an estimated total of 3 to 4 billion barrels of oil. 
Recent discoveries have the possibility to provide yields equal to or 
greater than Prudhoe Bay, AK. With LOOP's proximity to the OCS and its 
available underused capacity, producers will have a cost effective and 
environmentally responsible option to transport these large oil 
quantities to pipelines and refineries across the Nation, particularly 
if the Federal Government removes unnecessary regulatory barriers.
  LOOP's license allows the facility to physically double in size, but 
doing so has never made economic sense--until now. With such new 
sources of oil on the OCS and increased capacity, it is estimated that 
at least 200 new jobs will be created in Louisiana nearly doubling the 
employment at LOOP. The port's annual economic impact will also nearly 
double to $62.7 million. Currently, LOOP employs more than 225 people, 
and has an economic impact of $32.7 million each year on the local 
economy, including wages and purchases of local materials and services.
  Under current law, LOOP is the only strictly regulated entity among 
its chief competitors. Day-to-day business decisions are inhibited and 
delayed due to federal requirements calling for unnecessary oversight 
at the highest levels of the Federal Government. H.R. 2940 would simply 
regulatory activities, and enable LOOP and any new deepwater ports to 
respond more quickly to changing market conditions and improving 
technologies, as well as to pursue appropriate business opportunities, 
using procedures more comparable to those applicable to their 
competitors.
  H.R. 2940 removes a redundant mandatory antitrust review for even 
minor changes in LOOP's license. The outdated legislative language 
proved unnecessary because abundant competition exists especially from 
ligherering operators that was not anticipated in 1974 when the 
Deepwater Port Act was originally enacted. Additionally, enforcement of 
rules will be transferred from the Department of Transportation [DOT] 
to local authorities, including the Louisiana Department of 
Transportation and Development, which support my bill.
  H.R. 2940 makes a commitment to guaranteeing the efficient movement 
of this environmentally protective mode of transportation. I want to 
thank Chairman Shuster, Chairman Boehlert, Chairman Coble, and the 
House leadership for bringing the Deepwater Port Modernization Act 
before the House, and I urge its immediate adoption.
  Mr. SHUSTER. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. BORSKI. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Bereuter). The question is on the motion 
offered by the gentleman from Pennsylvania [Mr. Shuster] that the House 
suspend the rules and pass the bill, H.R. 2940, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________