[Congressional Record Volume 146, Number 41 (Wednesday, April 5, 2000)]
[Extensions of Remarks]
[Page E498]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             INTRODUCTION OF LEGISLATION ON SHIP SCRAPPING

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                         HON. PETER A. DeFAZIO

                               of oregon

                    in the house of representatives

                        Wednesday, April 5, 2000

  Mr. DeFAZIO. Mr. Speaker, I rise today to introduce legislation to 
address the pressing problem of how to safely dispose of the U.S. fleet 
of obsolete vessels which are threatening to pollute our nation's 
waterways. Currently, the U.S. Maritime Administration maintains a 
fleet of vessels located in waterways around the country that are 
designated for disposal. However, due to limitations under current law 
and concerns about the conditions under which these ships could be 
scrapped, these ships remain rotting at anchor with no easy disposal 
option in sight.
  My legislation would authorize funding for a ship scrapping pilot 
program at the U.S. Maritime Administration (MARAD). The legislation 
would allow MARAD to pay qualifying U.S. shipyards to scrap its 
obsolete vessels.
  Under current law, MARAD is required to make money off of its ship 
scrapping program. However, because of the considerable expense of 
scrapping vessels in the U.S., MARAD has had difficulty in selling its 
obsolete vessels to U.S. shipyards. Until 1994, MARAD sold most of its 
vessels designated for scrapping to overseas shipyards. Many of these 
ships ended up in shipyards in India where workers toiled in horrific 
conditions. A series of articles in the Baltimore Sun in December 1997 
highlighted the environmental and worker safety hazards facing the 
workers who toiled on former U.S. government-owned ships in India.
  Following the 1997 articles and under pressure from the Environmental 
Protection Agency and the U.S. Congress, MARAD stopped sending its 
obsolete vessels overseas. MARAD has not sold ships for scrapping 
overseas since 1994. However, there are few options in the U.S. for 
scrapping the obsolete ships.
  Shipyards scrapping vessels in the U.S. must abide by U.S. labor and 
environmental laws, making it a costly process. However, under MARAD's 
statutory mandate to maximize financial returns on its obsolete 
vessels, it must try to sell the ships for scrapping. Meanwhile, 
MARAD's vessels are in extremely poor condition and pose environmental 
risks because they contain hazardous substances such as PCBs and 
asbestos. A recent Department of Transportation Inspector General (IG) 
report cited these risks to illustrate why MARAD's ship scrapping 
program needs to be revamped. The IG report recommended changing the 
law requiring that MARAD maximize financial returns on the sale of its 
obsolete vessels.
  ``Environmental dangers associated with MARAD's old, deteriorating 
ships are very real and increasing daily,'' the IG report stated. 
``Some vessels have deteriorated to a point where a hammer can 
penetrate their hulls.''
  It's time to let go of the fantasy that the U.S. government can make 
money off of its obsolete ships. We should allow MARAD to pay shipyards 
to do the scrapping in a responsible and safe manner here in the U.S. 
By allowing MARAD to pay for ship scrapping, MARAD can reduce its 
inventory of obsolete ships and remove the threat these vessels pose to 
our waterways. In addition, paying shipyards to do the scrapping work 
will create secure well paid jobs in a domestic industry in need of new 
business.
  And finally, allowing MARAD to pay for ship scrapping, may save money 
for the U.S. in the long run. In fiscal year 1999, it cost MARAD $5.2 
million to maintain its fleet of obsolete vessels. This is only the tip 
of the iceberg. With no solution for disposing of its ships in sight, 
MARAD's inventory will continue to grow. The inventory of obsolete 
vessels has almost doubled over the last two years. It now totals 110 
vessels, with 88 designated for scrapping. The U.S. Navy expects to 
transfer 18 additional vessels to MARAD by the end of fiscal year 2001 
alone. As these vessels continue to deteriorate the cost to keep them 
afloat rises. For example, in 1999, MARAD spent $1 million for an 
emergency hull repair for one vessel alone.
  My bill would establish a pilot program, similar to the one launched 
by the U.S. Navy, to pay qualified U.S. shipyards to scrap its vessels. 
The bill authorizes $40 million over three years for the program.
  The government's current options are to send its vessels to overseas 
shipyards where third world workers toil in unspeakable conditions, or 
leave them in U.S. harbors where they risk polluting our waters. 
Unfortunately, without financial incentives like those in my 
legislation, these ships are not going anywhere.
  The federal government needs to take responsibility for the 
environmental hazards and safety risks posed by these vessels. My 
legislation is a step towards solving this problem.

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