[House Report 108-482]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-482

======================================================================


 
           COAST GUARD AUTHORIZATION ACT FOR FISCAL YEAR 2005

                                _______
                                

  May 11, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 3879]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 3879) to authorize appropriations 
for the Coast Guard for fiscal year 2005, to amend various laws 
administered by the Coast Guard, and for other purposes, having 
considered the same, report favorably thereon with amendments 
and recommend that the bill as amended do pass.
  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be referred to as the ``Coast Guard Authorization Act 
for Fiscal Year 2005''.

SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

  Funds are authorized to be appropriated for fiscal year 2005 for 
necessary expenses of the Coast Guard as follows:
          (1) For the operation and maintenance of the Coast Guard, 
        $5,212,220,000, of which $25,000,000 is authorized to be 
        derived from the Oil Spill Liability Trust Fund to carry out 
        the purposes of section 1012(a)(5) of the Oil Pollution Act of 
        1990.
          (2) For the acquisition, construction, rebuilding, and 
        improvement of aids to navigation, shore and offshore 
        facilities, vessels, and aircraft, including equipment related 
        thereto, $1,528,494,000, of which--
                  (A) $23,500,000 is authorized to be derived from the 
                Oil Spill Liability Trust Fund to carry out the 
                purposes of section 1012(a)(5) of the Oil Pollution Act 
                of 1990; and
                  (B) $1,100,000,000 is authorized for acquisition and 
                construction of shore and offshore facilities, vessels, 
                and aircraft, including equipment related thereto, and 
                other activities that constitute the Integrated 
                Deepwater System program.
          (3) For research, development, test, and evaluation of 
        technologies, materials, and human factors directly relating to 
        improving the performance of the Coast Guard's mission in 
        search and rescue, aids to navigation, marine safety, marine 
        environmental protection, enforcement of laws and treaties, ice 
        operations, oceanographic research, and defense readiness, 
        $18,500,000, to remain available until expended, of which 
        $3,500,000 is authorized to be derived from the Oil Spill 
        Liability Trust Fund to carry out the purposes of section 
        1012(a)(5) of the Oil Pollution Act of 1990.
          (4) For retired pay (including payment of obligations 
        otherwise chargeable to lapsed appropriations for this 
        purpose), payments under the Retired Serviceman's Family 
        Protection and Survivor Benefit Plans, and payments for medical 
        care of retired personnel and their dependents under chapter 55 
        of title 10, United States Code, $1,085,460,000.
          (5) For alteration or removal of bridges over navigable 
        waters of the United States constituting obstructions to 
        navigation, and for personnel and administrative costs 
        associated with the Bridge Alteration Program, $19,136,000, to 
        remain available until expended.
          (6) For environmental compliance and restoration at Coast 
        Guard facilities (other than parts and equipment associated 
        with operation and maintenance), $17,000,000, to remain 
        available until expended.
          (7) For maintenance and operation of facilities, supplies, 
        equipment, and services necessary for the Coast Guard Reserve, 
        as authorized by law, $117,000,000.

SEC. 3. AUTHORIZED LEVELS OF MILITARY STRENGTH AND TRAINING.

  (a) Active Duty Strength.--The Coast Guard is authorized an end-of-
year strength for active duty personnel of 45,500 as of September 30, 
2005.
  (b) Military Training Student Loads.--The Coast Guard is authorized 
average military training student loads as follows:
          (1) For recruit and special training for fiscal year 2005, 
        2,500 student years.
          (2) For flight training for fiscal year 2005, 125 student 
        years.
          (3) For professional training in military and civilian 
        institutions for fiscal year 2005, 350 student years.
          (4) For officer acquisition for fiscal year 2005, 1,200 
        student years.

  Amend the title so as to read:

      A bill to authorize appropriations and military strength 
and training levels for the Coast Guard for fiscal year 2005.

                       PURPOSE OF THE LEGISLATION

    H.R. 3879 authorizes funding for the United States Coast 
Guard in fiscal year 2005.

                BACKGROUND AND NEED FOR THE LEGISLATION

    The United States Coast Guard was established on January 
28, 1915, through the consolidation of the Revenue Cutter 
Service (established in 1790) and the Lifesaving Service 
(established in 1848). The Coast Guard later assumed the duties 
of three other agencies: the Lighthouse Service (established in 
1789), the Steamboat Inspection Service (established in 1838), 
and the Bureau of Navigation (established in 1884).
    The Coast Guard remained a part of the Department of the 
Treasury until 1967, when it was transferred to the newly 
created Department of Transportation. Under the Homeland 
Security Act of 2002, Public Law 107-296, the Coast Guard moved 
to the new Department of Homeland Security on March 1, 2003.
    Under section 2 of title 14, United States Code, the Coast 
Guard has primary responsibility to enforce or assist in the 
enforcement of all applicable Federal laws on, under, and over 
the high seas and waters subject to the jurisdiction of the 
United States; to ensure safety of life and property at sea; to 
protect the marine environment; to carry out domestic and 
international icebreaking activities; and to ensure the safety 
and security of vessels, ports, waterways, and related 
facilities.
    As the fifth armed force of the United States, the Coast 
Guard also maintains defense readiness to operate as a 
specialized service in the Navy upon the declaration of war or 
when the President directs. The Coast Guard is composed of 
approximately 40,000 active duty military personnel, 8,100 
reservists, 6,100 civilian employees, and 37,000 volunteers of 
the Coast Guard Auxiliary. The Coast Guard has defended the 
Nation in every war since 1790. In fact, the Coast Guard 
deployed assets to the Persian Gulf and Mediterranean region to 
take part in the U.S. military's Operation Iraqi Freedom.
    The Committee is particularly concerned about 
implementation of the Integrated Deepwater System (Deepwater) 
acquisition program. The U.S. Coast Guard has embarked on a 
``system-of-systems'' approach to recapitalization to deal with 
the problem of aging and deteriorating operational assets. The 
Coast Guard fleet has incurred increasing maintenance and 
repair costs at the same time the service is experiencing 
increased operational demand for vessels and aircraft as 
overall mission requirements, both homeland security related 
and traditional missions, have increased. At the onset of the 
Deepwater program, the Coast Guard realized they would not have 
the money to replace core assets on a one-by-one basis and, 
therefore, focused on development of a capabilities-based 
approach to procurement in which the system would provide the 
capability rather than single platforms. The Committee 
continues to support the replacement of outdated legacy assets 
through procurements made under the Deepwater program. However, 
the Deepwater program has suffered from continued underfunding, 
pushing the original procurement and implementation schedule of 
20 years to the current timeline of nearly 27 years.
    The need for a complete recapitalization is compelling. The 
Coast Guard operates the second oldest naval fleet in the 
world. In fact, some currently operating assets were 
commissioned in WWII. Nearly half of the 110' Patrol Boat fleet 
is in immediate need of repair for structural deterioration, 
resulting in the direct loss of several hundred patrol days 
annually. On average, the High Endurance Cutter fleet suffers a 
fire in their main engineering space on every patrol, and the 
fleet's main search and rescue helicopter is equipped with 
radar designed and installed nearly 20 years ago. Deepwater 
will provide for new cutters, surveillance assets and Command & 
Control, Communications Computers, Intelligence, Surveillance, 
and Reconnaissance (C4ISR), which will allow the service to 
``push out the borders'' and meet other homeland security 
mission requirements, while ensuring adequate resources to 
effectively sustain their traditional missions.
    The Coast Guard's placement in the Department of Homeland 
Security continues to concern the Committee. Despite the 
particular attention placed on the Coast Guard's homeland 
security related missions in recent years, the service performs 
a much broader range of jobs. It is imperative that these non-
homeland security functions remain priorities for the Coast 
Guard. The strength of America's commerce relies on waterborne 
trade, and the Coast Guard protects that trade not only from 
terrorism, but also from other threats. For this reason, the 
Committee insists on funding all non-Homeland Security accounts 
including non-Deepwater Acquisitions, Construction and 
Improvements, Alteration of Bridges, and Research, Development, 
Test and Evaluation at least at the levels enacted for fiscal 
year 2004.
    The Committee is also concerned with the Administration's 
request to transfer Research, Development, Training and 
Evaluation funds from the Coast Guard to the Science and 
Technology Directorate of the Department of Homeland Security. 
Under Section 888 of the Homeland Security Act, the Coast Guard 
is to remain intact with all authorities, functions, and 
capabilities remaining under the authority of the service. The 
Committee will continue to take steps to maintain the integrity 
of the Coast Guard.
    The Committee contends that the Coast Guard must be given 
the funds and resources necessary to carry out the greatly 
widened scope of missions that is now expected of the service.

                       SUMMARY OF THE LEGISLATION

    Section 1 provides for the short title of this legislation, 
the Coast Guard Authorization Act for Fiscal Year 2005.
    Section 2(1) of H.R. 3879 authorizes Operating Expenses at 
$5,212,220,000. This amount includes the level requested in the 
President's FY 2005 budget, plus $39,000,000, the estimated 
cost of establishing a West Coast Helicopter Interdiction 
Tactical Squadron. Since its inception, the HITRON squadron has 
interdicted 54 ships with over $4 billion worth of cocaine and 
made 168 arrests. It has made a significant contribution to our 
counter-drug operations.
    Section 2(2) authorizes Acquisitions, Construction and 
Improvements (AC&I) at $1,528,494,000. This level assumes 
$1,100,000,000 for the Integrated Deepwater System (Deepwater), 
level funding for non-Deepwater AC&I at the FY 2004 
appropriated level, and an additional $75,000,000 to continue 
equipping C130J aircraft already purchased by the Service. 
Deepwater is the Coast Guard's long-term replacement program 
for its operational capital assets. The authorized amount would 
restore the Administration's proposed $78,944,000 AC&I 
reduction from the FY 2004 appropriated level. Of this amount, 
the Committee expects a significant amount will go toward 
reducing the current $54,000,000 FY 2005 unfunded shore 
facilities requirements list. From that list the highest 
priority should be $8,500,000 to consolidate support facilities 
at Kodiak, Alaska, and $14,100,000 to renovate the Chase Hall 
Barracks at the Coast Guard Academy, New London Connecticut.
    Section 2(3) authorizes Research, Development, Testing and 
Evaluation at the level requested by the President, 
$18,500,000, but assumes the funds will be provided directly to 
the Coast Guard rather than to the S&T Directorate.
    Section 2(4) authorizes retired pay at the amount requested 
by the Administration, $1,085,460,000. This is a mandatory 
expenditure.
    Section 2(5) authorizes $19,136,000 to carry out alteration 
of bridges as directed by the Truman-Hobbs Act, the amount 
appropriated in FY 2004. This account provides the Federal 
Government's share of the costs for altering or removing 
bridges determined to be obstacles to navigation. The 
Administration requests no funding to carry out the Truman-
Hobbs Act.
    Section 2(6) authorizes Environmental Compliance and 
Restoration at the level requested in the President's FY 2005 
budget, $17,000,000. This account provides resources to carry 
out environmental compliance and restoration responsibilities 
resulting from the operation of former and current Coast Guard 
facilities.
    Section 2(7) authorizes Reserve Training at the level 
requested in the President's FY 2005 budget, $117,000,000. This 
amount will provide the resources required to fully train, 
support, and sustain reserve personnel at a level of readiness 
necessary to respond to conflict, national emergency, and 
natural or man-made disasters.
    Section 3(a) authorizes the Coast Guard to operate at a 
level of 45,500 active duty personnel as of September 30, 2005.
    Section 3(b) authorizes 2,500 student years for recruit and 
special training in fiscal year 2005, 125 student years for 
flight training in fiscal year 2005, 350 student years for 
professional training in military and civilian institutions for 
fiscal year 2005, and 1,200 student years for officer 
acquisition for fiscal year 2005.

            LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION

    H.R. 3879 was introduced on March 3, 2004 by the Honorable 
Don Young, Chairman, Committee on Transportation and 
Infrastructure with original co-sponsors Congressman Frank A. 
LoBiondo, Chairman, Subcommittee on Coast Guard and Maritime 
Transportation; Congressman James L. Oberstar, Ranking Member, 
Committee on Transportation and Infrastructure; and Congressman 
Bob Filner, Ranking Member, Subcommittee on Coast Guard and 
Maritime Transportation.
    The bill was referred to the Committee on Transportation 
and Infrastructure and within the Committee to the Subcommittee 
on Coast Guard and Maritime Transportation. On March 4, 2004 
the Subcommittee held a legislative hearing on H.R. 3879 and on 
March 10, 2004 the Subcommittee held a mark-up session for the 
bill. Congressman LoBiondo, Chairman of the Subcommittee, 
offered an amendment to change the authorization level for the 
Integrated Deepwater System to $1.1 billion and Coast Guard 
Acquisitions, Construction and Improvement to $1.5 billion. The 
amendment was approved by the Subcommittee by voice vote. The 
bill, as amended, was then ordered favorably reported to the 
Full Committee. Congresswoman Corrine Brown was added as a co-
sponsor of the legislation at this meeting.
    The Committee on Transportation and Infrastructure held a 
meeting to mark-up H.R. 3879 on April 21, 2004. The bill as 
amended was approved unanimously by voice vote and was ordered 
favorably reported to the Committee of the Whole House on the 
State of the Union.

                             ROLLCALL VOTES

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each roll call vote on a motion 
to report and on any amendment offered to the measure or 
matter, and the names of those members voting for and against. 
No roll call votes were ordered during the consideration of 
H.R. 3879.

                      COMMITTEE OVERSIGHT FINDINGS

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          COST OF LEGISLATION

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
authorize levels of funding for the Coast Guard for Fiscal Year 
2005.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
3879 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 27, 2004.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3879, the Coast 
Guard Authorization Act for Fiscal Year 2005.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 3879--Coast Guard Authorization Act for fiscal year 2005

    Summary: H.R. 3879 would authorize the appropriation of 
about $6.9 billion for discretionary programs of the United 
States Coast Guard (USCG) for fiscal year 2005, including $5.2 
billion for operating expenses, $1.5 billion for capital 
projects, $117 million for the USCG reserves, $17 million for 
environmental compliance, and $19 million each for research 
projects and for bridge alterations. Of these amounts, $48.5 
million would be authorized to be derived from the Oil Spill 
Liability Trust Fund (OSLTF) and the remainder from the general 
fund of the Treasury.
    The bill also would authorize the appropriation of nearly 
$1.1 billion for USCG retirement benefits (an entitlement) for 
the year. This provision would not affect direct spending.
    CBO estimates that appropriation of the authorized amounts 
would cost nearly $4.6 billion in fiscal year 2005 and about 
$6.8 billion over the 2005-2009 period. (About $0.1 billion 
would be spent after 2009.) Enacting H.R. 3879 would not affect 
revenues or direct spending.
    H.R. 3879 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on State, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effects of H.R. 3879 are summarized in the following 
table. The costs of this legislation fall within budget 
functions 300 (natural resources and environment) and 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2004    2005    2006    2007    2008    2009
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

USCG Spending Under Current Law:
    Authorization Level \1\.....................................   5,883      29       0       0       0       0
    Estimated Outlays...........................................   5,744   1,733     654     251     134      66
Proposed Changes:
    Authorization Level.........................................       0   6,883       0       0       0       0
    Estimated Outlays...........................................       0   4,569   1,244     550     276     122
USCG Spending Under H.R. 3879:
    Authorization Level \1\.....................................   5,883   6,912       0       0       0       0
    Estimated Outlays...........................................   5,744   6,302   1,898     801     410    188
----------------------------------------------------------------------------------------------------------------
\1\ The 2004 level is the amount appropriated for that year for USCG activities, reduced by across-the-board
  cuts and by a $71 million rescission of fiscal year 2003 emergency funds. The amount includes 2004 emergency
  supplementals and transfers from the Department of Defense. The existing authorization level of $29 million in
  2005 is the amount already authorized to be appropriated from the OSLTF for USCG operating expenses and
  research.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3879 will be enacted by the end of 2004 and that the authorized 
amounts will be appropriated for fiscal year 2005. The 
authorization level is the amount stated in the bill for USCG 
discretionary accounts, excluding $28.5 million of the $48.5 
million to be derived from the OSLTF. (That amount, which 
consists of $25 million for the agency's operations and $3.5 
million for research, is not a change in the agency's 
authorization level because such funding is already 
authorized.) The $1.1 billion authorized by the bill for USCG 
retirement is also excluded because such pay is an entitlement 
under current law and does not require annual appropriation. 
Estimated outlays are based on historical spending patterns for 
USCG activities and programs.
    Intergovernmental and private-sector impact: H.R. 3879 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on State, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Deborah Reis. Impact 
on State, Local, and Tribal Governments: George Waring. Impact 
on the Private Sector: Jean Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. (Public Law 104-4).

                        PREEMPTION CLARIFICATION

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt State, local, 
or tribal law. The Committee states that H.R. 3879 does not 
preempt any State, local, or tribal law.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                APPLICABILITY TO THE LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act. (Public Law 
104-1).

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    H.R. 3879 makes no changes in existing law.

                                
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