[Senate Report 109-114]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 185

109th Congress 
 1st Session                     SENATE                          Report
                                                                109-114
_______________________________________________________________________

                 COAST GUARD AUTHORIZATION ACT OF 2005

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                       S. H.R. deg. 1280




                                     


        DATE deg.July 28, 2005.--Ordered to be printed



       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred ninth congress
                             first session

                     TED STEVENS, Alaska, Chairman
                 DANIEL K. INOUYE, Hawaii, Co-Chairman
JOHN McCAIN, Arizona                 JOHN D. ROCKEFELLER IV, West 
CONRAD BURNS, Montana                    Virginia
TRENT LOTT, Mississippi              JOHN F. KERRY, Massachusetts
KAY BAILEY HUTCHISON, Texas          BYRON L. DORGAN, North Dakota
OLYMPIA J. SNOWE, Maine              BARBARA BOXER, California
GORDON H. SMITH, Oregon              BILL NELSON, Florida
JOHN ENSIGN, Nevada                  MARIA CANTWELL, Washington
GEORGE ALLEN, Virginia               FRANK LAUTENBERG, New Jersey
JOHN E. SUNUNU, New Hampshire        E. BENJAMIN NELSON, Nebraska
JIM DeMINT, South Carolina           MARK PRYOR, Arkansas
DAVID VITTER, Louisiana
                    Lisa Sutherland, Staff Director
             Christine Drager Kurth, Deputy Staff Director
                      David Russell, Chief Counsel
     Margaret Cummisky, Democratic Staff Director and Chief Counsel
 Samuel Whitehorn, Democratic Deputy Staff Director and General Counsel





                                                       Calendar No. 185
109th Congress                                                   Report
                                 SENATE
 1st Session                                                    109-114

======================================================================
 
                 COAST GUARD AUTHORIZATION ACT OF 2005

                                _______
                                

                 July 28, 2005.--Ordered to be printed

                                _______
                                

       Mr. Stevens, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1280]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill joint resolution deg. (S. 
H.R. deg. 1280) TITLE deg. to authorize 
appropriations for the United States Coast Guard and other 
purposes, having considered the same, reports favorably thereon 
with amendments and recommends that the bill joint 
resolution deg. (as amended) do pass.

                          Purpose of the Bill

  The purpose of S. 1280, the Coast Guard Authorization Act of 
2005, as amended, is to authorize appropriations for fiscal 
years (FY) 2006 and 2007 for the United States Coast Guard 
covering seven accounts: (1) operation and maintenance 
expenses; (2) acquisition, construction, and improvement of 
facilities and equipment (AC&I); (3) research, development, 
testing, and evaluation (RDT&E); (4) retired pay; (5) 
environmental compliance and restoration; (6) alteration or 
removal of bridges; and (7) reserve programs. The bill also 
authorizes end-of-year military strength and training loads and 
includes other provisions to address issues related to the 
Coast Guard.

                          Background and Needs

  The Coast Guard was established on January 28, 1915, as part 
of the Department of the Treasury, 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 was 
transferred to the new Department of Homeland Security on March 
1, 2003. The Coast Guard provides many critical services for 
our nation grouped into five fundamental roles: maritime 
security; maritime safety; maritime mobility; protection of 
natural resources; and national defense.
  The Coast Guard, the Federal government's principal maritime 
law-enforcement agency, is also a branch of the armed forces. 
As the fifth armed force of the United States, the Coast Guard 
maintains defense readiness to operate as a specialized service 
in the Navy upon the declaration of war or when the President 
so directs. The Coast Guard has defended the Nation in every 
war since 1790. During the recent combat operations in Iraq, 
the Coast Guard deployed two 378-foot high endurance cutters, 
one 225-foot ocean going buoy tender, one Port Security Team, 
and continues to operate six 110-foot Island Class patrol boats 
in the Persian Gulf. This was the first deployment of Coast 
Guard cutters in support of a wartime contingency since the 
Vietnam War.
  Under title 14, United States Code, the Coast Guard has 
primary responsibility for enforcing or assisting in the 
enforcement of all applicable Federal laws on, under, and over 
the high seas and waters subject to the jurisdiction of the 
U.S.; 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. In 
carrying out these responsibilities the Coast Guard activities 
include commercial and recreational vessel safety inspection, 
the rescue of life and property at sea, fisheries law 
enforcement, marine environmental protection, and the 
interdiction of drug traffickers and illegal alien migrants. 
Since September 11, 2001, the Coast Guard's security 
responsibilities have increased significantly, with new 
authorities provided under the Maritime Security Transportation 
Act of 2002.
  The Coast Guard is composed of approximately 39,000 active 
duty military personnel, 8,100 reservists, 7,000 civilian 
employees, and 37,000 volunteers of the Coast Guard Auxiliary. 
In 2004, the Coast Guard responded to over 32,000 calls for 
assistance, and saved 5,500 lives. In 2004, the Coast Guard 
seized 376,000 pounds of illegal narcotics. It also stopped 
11,000 illegal migrants from reaching our shores. The Coast 
Guard conducted more than 36,000 port security patrols, boarded 
over 19,000 vessels, escorted over 7,200 vessels, and 
maintained more than 115 security zones. It also conducted 
patrols to protect our fisheries stocks and responded to 23,904 
pollution incidents.
Integrated Deepwater System
  The Committee believes the Coast Guard is an agency 
conducting 21st century operations with 20th century 
technology. To accomplish its many vital missions, the Coast 
Guard needs to recapitalize its offshore fleet of cutters and 
aircraft. The Coast Guard operates the third oldest of the 
world's 42 similar naval fleets with several cutters dating 
back to World War II. These platforms are technologically 
obsolete, require excessive maintenance, lack essential speed, 
and have poor interoperability which limit their overall 
mission effectiveness and efficiency. Compounding the problem 
is the fact that they are reaching the end of their serviceable 
life just as the Coast Guard needs them the most.
  Deepwater, the service's recapitalization project designed to 
remedy these issues, poses several areas of concern. The 
Committee is particularly concerned about the lengthy timeline 
of the Coast Guard's Integrated Deepwater System procurement 
which is further compounded by the funding shortfalls it has 
faced. This project was conceived as an approximately 20-year, 
$15 billion acquisition program to recapitalize its fleet of 
offshore cutters and aircraft, based on an annual stream of 
$500 million in FY 1998 dollars for the life of the plan. 
Currently, this program is on a 20-25 year timeframe, costing 
between $19-$24 billion. While this program was developed prior 
to September 11, 2001, it is needed now more than ever to 
enable the Coast Guard to carry out all of its many important 
missions.
  The GAO has previously testified that the Deepwater program's 
growing funding shortfalls ``could jeopardize the Coast Guard's 
future ability to effectively and efficiently carry out its 
missions, and its law enforcement activities'' that is, drug 
and migrant interdiction and fisheries enforcement ``would 
likely be affected the most, since they involve extensive use 
of Deepwater cutters and aircraft.''
  The Committee is very concerned that funding shortfalls will 
prevent the Coast Guard from quickly restoring operations in 
support of all its missions to their pre-September 11, 2001 
levels. It strongly believes the Coast Guard should be provided 
with the tools it needs to carry out its homeland security 
responsibilities as well as its many other important 
traditional missions. Accordingly this bill, as reported, would 
authorize $1.1 billion for the Deepwater project for FY 2006 
and $1.2 billion in FY 2007.
  The Deepwater project is the single largest procurement 
program that the Coast Guard has managed to date. A recent 
report by the Government Accountability Office (GAO) (GAO-04-
380) entitled ``Coast Guard Deepwater Program Needs Increased 
Attention to Management and Contractor Oversight'' outlined 
significant concerns with the Coast Guard's oversight and 
management of the program, and included numerous 
recommendations to improve the situation. The Committee 
strongly believes that it is in the best interests of the 
Deepwater program for the Coast Guard to implement the GAO's 
recommendations promptly, and S. 1280 requires a report from 
the Coast Guard on the progress the service is making in 
implementing these recommendations. In addition, the GAO is 
continuing to examine how the Coast Guard might improve 
management of the program.
  As a result of the expanded missions that the Coast Guard 
finds itself facing in a post-9/11 world, the Coast Guard was 
required by the FY 2005 Department of Homeland Security 
Appropriations Act to submit a report on the rebaselining of 
Deepwater. This rebaseline would reflect the Coast Guard's new 
asset requirements (surface & aviation) which would allow the 
service to operate in a post-9/11 world. Released on March 25, 
2005, this report caused significant concern on the part of 
numerous committee members, and the subcommittee on Fisheries 
and Coast Guard conducted a hearing on the new baseline on June 
21, 2005.
  One issue raised at the hearing was the potential need for a 
targeted acceleration of Deepwater in order to more quickly 
provide the Coast Guard with the assets it needs to fill the 
gap between its current capabilities and required mission 
demands. Compounding the urgent need for new cutters and 
aircraft is the fact that the Coast Guard's legacy assets are 
deteriorating much more rapidly than anticipated. A related 
concern raised at the hearing was the decision by the Coast 
Guard to extend the life of certain legacy assets rather than 
replace such assets. Discussion regarding the possible 
acceleration of Deepwater is not a new issue. In March 2003, 
the Coast Guard released a report, entitled ``Report to 
Congress on the Feasibility of Accelerating the Integrated 
Deepwater System.'' This Coast Guard report found that the 10-
year acceleration time-line would be feasible, would save an 
additional $4 billion (29 percent) in acquisition costs as 
compared to the 20-year plan, would provide significantly 
increased operational capability sooner, and would provide 
approximately 943,000 additional (and more capable) mission 
hours above the original 20-year plan. According to the report, 
to accelerate the Deepwater program in this timeframe, the 
Coast Guard would need an estimated $4 billion in acquisition 
funding sooner, but this would be offset by the overall $4 
billion savings which would be realized by compressing the 
timeline.
  GAO testified at the June 21, 2005 subcommittee hearing that 
it had concerns that the risks it identified with the Deepwater 
program would likely be compounded should the program be 
accelerated. However, a witness from the Congressional Research 
Service (CRS) suggested that a more narrow, ``targeted'' 
acceleration of specific assets with proven designs might not 
raise the same level of concern. The committee is supportive of 
examining whether such a ``targeted'' acceleration of specific 
assets might be possible and the potential cost savings it 
would yield. S. 1280 includes a provision that would require 
the Coast Guard to report on possible acceleration.
Administration's proposed bill
  In its FY 2006 budget proposal, the Administration requested 
approximately $8.146 billion in funding for the Coast Guard. In 
addition, the Administration requested an FY 2006 end-of-year 
strength of 45,500 for its active duty military personnel. On 
March 17, 2005, the Subcommittee on Fisheries and the Coast 
Guard held a hearing on the Coast Guard's FY 2006 Budget 
request and heard testimony from Admiral Thomas Collins, 
Commandant of the Coast Guard, Master Chief Franklin Welch, 
Master Chief of the Coast Guard, and Ms. Margaret Wrightson, 
Director of the General Accounting Office's (GAO) Homeland 
Security and Justice Team. In addition to FY 2006 
authorizations, the bill would provide authorizations for FY 
2007, reflecting an 8 percent increase over those amounts 
authorized for FY 2006 across the board. The Coast Guard budget 
accounts that would be authorized in S. 1280, as reported, are 
included in the summary below.
  Operating Expenses (OE). The Coast Guard uses over two-thirds 
of its total budget conducting operations in support of its 
primary mission areas: protecting public safety and the marine 
environment; safeguarding our ports, waterways, and coastal 
areas; enforcing laws and treaties, including preventing 
illegal drug trafficking, interdicting illegal aliens and 
enforcing fisheries laws; maintaining aids to navigation; and 
preserving defense readiness. For FY 2006, the Administration 
requested $5.547 billion for operating expenses, an increase of 
approximately $390 million from the FY 2005 appropriated level. 
The request assumes that $24.5 million would be transferred 
from the Oil Spill Liability Trust Fund to the operating 
expenses account. S. 1280, as reported, authorizes $5.594 
billion for this account, $47.5 million more than the 
Administration's request in order to provide funding to the 
Coast Guard for the operation and maintenance of the Coast 
Guard's icebreaking fleet. The Administration budget requested 
these funds in the National Science Foundation budget, with the 
intent that they be transferred to the Coast Guard, but did not 
guarantee that they would be spent in support of these vital, 
national assets. The Committee desires that these funds remain 
in the Coast Guard, thus ensuring that they are dedicated to 
the operation and maintenance of those vessels designed to 
fulfill the icebreaking missions of the Coast Guard. Regardless 
of which agency receives these funds, it is the understanding 
of this Committee that these funds ($47.5 million) are 
designated for the operation and maintenance of U.S. Coast 
Guard icebreaking assets.
  For FY 2007, S. 1280 authorizes $6.042 billion for this 
account. This assumes that $24.5 million would be transferred 
from the Oil Spill Liability Trust Fund to the operating 
expenses account.
  Acquisition, Construction, and Improvements (AC&I).--AC&I 
funds are used to pay for major capital improvements, including 
vessel and aircraft acquisition and rehabilitation, information 
management, and construction programs at selected facilities. 
Major AC&I projects include arming helicopters; recapitalizing 
the National Distress and Response System; implementing the 
vessel Automatic Identification System (AIS); aircraft sensor, 
avionics, and engine upgrades; the Integrated Deepwater System 
project; and various shore facility upgrades to those units in 
need. For FY 2006, the Administration requested $1.269 billion; 
of that amount $966 million would fund the Integrated Deepwater 
System and $101 million would fund Rescue 21. The AC&I request 
assumes that $20 million would be transferred from the Oil 
Spill Liability Trust Fund to the AC&I account. S. 1280, as 
reported, authorizes $1.424 billion for this account, with $1.1 
billion designated to fund Deepwater ($134 million more than 
the President's request). Additionally, $8.7 million is 
authorized to be used for the construction of an Aquatic 
Training Facility for the Aviation Survival Technician (AST ) 
``A'' School, located at Coast Guard Air Station Elizabeth 
City, NC. Also, $10 million is authorized to complete the 
Vessel Traffic System (VTS) upgrade for Puget Sound, located in 
Washington, and $3 million is authorized for the construction 
of the Sector Operations Building for Group Seattle, located at 
Integrated Support Command Seattle, WA.
  For FY 2007, S. 1280 authorizes $1.538 billion for this 
account, with $1.188 billion designated to fund Deepwater. This 
request also assumes that $20 million would be transferred from 
the Oil Spill Liability Trust Fund to this account.
  Research, Development, Test, and Evaluation (RDT&E).--Funds 
from this account are used for applied scientific research that 
aids in the development of hardware, procedures, and systems 
that directly contribute to increasing the productivity of 
Coast Guard operating and regulatory programs. The 
Administration proposed to consolidate the Department of 
Homeland Security's requests into the DHS Science and 
Technology Directorate, thereby taking the Coast Guard's 
anticipated $24 million in funding and lumping it into this 
directorate. In doing this, the Administration violated section 
888 of the Homeland Security Act of 2002 and put at risk the 
Coast Guard's funding for research and development for FY 2006, 
since they would have to compete for funding within this 
directorate. The Committee wants to ensure that the Coast Guard 
is funded for the important research it needs in order to 
maintain its mission effectiveness. The Committee does not want 
the Coast Guard to have to compete for this funding within DHS 
among many other Federal agencies. S. 1280, as reported, 
authorizes $24 million for this account with $3.5 million to be 
transferred from the Oil Spill Liability Trust Fund to this 
account.
  For FY 2007, S. 1280 authorizes $25.9 million for this 
account and assumes that $3.5 million will be transferred from 
the Oil Spill Liability Trust Fund to this account.
  Retired Pay.--Funds from this account are used for retired 
pay, annuities, and medical care for retired military personnel 
and former Lighthouse Service members, their dependents, and 
their survivors under chapter 55 of title 10, United States 
Code. The Administration requested $1.014 billion for this 
account for FY 2006. S. 1280, as reported, authorizes $1.014 
billion for this account for FY 2006, and $1.095 billion for FY 
2007.
  Alteration of Bridges.--Under the Truman-Hobbs Act, the 
Federal government shares with the States the cost of altering 
publicly-owned highway and railroad bridges that cause 
significant obstruction of the free movement of marine traffic. 
The Administration did not request any funding for FY2006 
Truman-Hobbs Act projects. S. 1280, as reported, authorizes 
$17.4 million for this account for FY 2006 and $18.7 million 
for FY 2007.
  The Committee directs the Coast Guard to re-evaluate the 
categorization of both the Leeville Bridge and the Kerner Ferry 
Bridge in Louisiana. The Leeville Bridge provides the only 
access to Port Fouchon and Grand Isle, and has been struck 11 
times in the past year while the Kerner Ferry Bridge has 
experienced several vertical clearance problems. These bridges 
are currently categorized as non-hazards to navigation, 
therefore making them ineligible for funds under the Truman-
Hobbs Act. The Committee expects to receive the Coast Guard's 
findings no later than 90 days after the enactment of this 
legislation.
  Environmental Compliance and Restoration.--This account 
provides resources to bring current and former Coast Guard 
facilities into compliance with national environmental 
standards. The Administration requested $12 million for FY 
2006. S. 1280, as reported, authorizes $12 million for this 
account for FY 2006 and $12.9 million for FY 2007.
  Reserve Programs.--The Coast Guard Reserve Forces provide 
trained and qualified personnel available for active duty in 
time of war or national emergency and at such other times as 
the national security requires. Reserve personnel maintain 
their readiness through realistic coordinated mobilization 
exercises, formal military training and duty alongside regular 
Coast Guard members during routine and emergency operations. 
The Administration's requested level of $119 million provides 
resources to fully train, support, and sustain a reserve force 
of approximately 8,100 members. S. 1280, as reported, 
authorizes $119 million for FY 2006 and $128.5 million for FY 
2007.
  Military Strength and Training.--This section would provide 
the Coast Guard's active duty military personnel end-of-year 
strength as well as its average military training student loads 
for fiscal year 2006. S. 1280, as reported, would authorize the 
Coast Guard's levels of military strength and training for FY 
2006 to the following levels:
           Active Duty personnel: 45,500
           Recruit & Special Training: 2,500
           Flight Training: 125
           Professional Training: 350
           Officer Acquisition: 1,200

                         Summary of Provisions

  S. 1280 authorizes appropriations and levels of military 
strength and training for the Coast Guard in FY 2006 and 2007, 
and includes other provisions to address issues related to the 
Coast Guard.

                         TITLE I--AUTHORIZATION

  S. 1280, as reported, would authorize appropriations for the 
Coast Guard accounts covered in the bill totaling $8.2 billion 
for FY 2006 and $8.8 billion for FY 2007.
  Section 101 would authorize $5.594 billion for operating 
expenses (OE) for FY 2006. For FY 2007, $6.042 billion is 
authorized, and would authorize $1.424 billion for Acquisition 
Construction and Improvements (AC&I) for FY 2006 and $1.538 
billion for FY 2007. As a reflection of its support of the 
Coast Guard's need to recapitalize its fleet of cutters and 
aircraft, the reported bill would authorize $1.1 billion for 
Deepwater in FY 2006, $134 million above the President's 
request. Deepwater is authorized at $1.188 billion for FY 2007.
  Section 103 would provide an authorization of $1,000,000 for 
the Coast Guard to continue their development of a web-based 
risk management system that links occupational health and 
safety databases to reduce accidents and fatalities.

      TITLE II--HOMELAND SECURITY, MARINE SAFETY, FISHERIES, AND 
                        ENVIRONMENTAL PROTECTION

  S. 1280, as reported, would improve the Coast Guard's ability 
to conduct marine environmental protection, enforce fisheries 
laws and regulations, as well as enhance the service's 
capabilities in managing the largest acquisition program in its 
history, Deepwater.
  Section 202 adds a dimension of enforcement flexibility by 
allowing the Secretary to assess a civil penalty for each day 
an owner/operator remains non-compliant beyond the first day on 
which the violation of the Maritime Transportation Security Act 
of 2002 was cited. The total fines per violation would not 
exceed $50,000 during FY 2006, $75,000 during FY 2007, and 
$100,000 after FY 2007.
  Section 203 would require the Coast Guard to take all 
necessary measures to maintain, at a minimum, its current 
vessel capacity for carrying out ice-breaking in the Arctic and 
Antarctic regions, and for the long-term recapitalization of 
such vessels. $100,000,000 is authorized for the Coast Guard in 
order to carry out this section.
  Section 204 would require the Coast Guard to submit a report 
on opportunities for and the feasibility of co-locating Coast 
Guard assets and personnel at facilities of other Armed 
Services branches, and entering into cooperative agreements for 
carrying out Coast Guard missions. The committee directs the 
Coast Guard to examine Naval Station Everett, located in 
Everett, Washington, for such potential co-location and 
operating opportunities. The committee also directs the Coast 
Guard to examine the feasibility for the following matters 
concerning Naval Station Pascagoula, MS: (1) the clustering of 
current and future Coast Guard cutters at the Naval Station; 
(2) locating other DHS resources at the Naval Station; and (3) 
establishing a DHS training facility at the Naval Station. The 
Committee expects to receive the results of the Coast Guard's 
examination of these two facilities no later than 90 days after 
the enactment of this legislation.
  Section 205 establishes a pilot program to conduct mandatory 
dockside crew survivability examinations on uninspected U.S. 
commercial fishing vessels in at least 5, but no more than 10 
fishing ports of the United States over the next five years. 
Those ports with the highest number of fatalities associated 
with the fishing industry will be targeted, but not those ports 
for which a safety program is already established. This program 
is aimed to reduce the number of fatalities which have 
dramatically risen in recent years. The Committee feels that 
this program is a way forward in educating the commercial 
fishing fleet and ensuring that those engaged in this dangerous 
occupation are competent in all aspects of vessel safety and 
crew survivability techniques.
  Section 207 allows the Coast Guard to conduct international 
training and provide technical assistance to international 
navies, coast guards, and maritime authorities during regular 
Coast Guard operations without additional requests having to be 
filed by other Federal agencies.
  Section 209 requires the Coast Guard to submit a report on 
the feasibility of using bio-diesel fuel in both new and 
existing vessels and vehicles. This report should focus on the 
potential benefits bio-fuels could provide the Coast Guard in 
terms of fuel supply security, fuel price stabilization, 
improved fuel spill safety, and reduced air pollution near 
population centers.
  Section 212 requires the Coast Guard to submit a report on 
the status of their compliance with the GAO's recommendations 
outlined in their report entitled ``Coast Guard Deepwater 
Program Needs Increased Attention to Management and Contractor 
Oversight.'' The report number is GAO-04-380.
  Section 213 requires the Coast Guard to submit a report, in 
conjunction with the President's FY 2007 budget submission, on 
many aspects of the Deepwater Program. Issues such as 
acceleration, legacy asset sustainment costs, feasibilty 
concerns, and anticipated mission capability deficiencies are 
among those which are required to be discussed in detail in 
this report. The Committee wants to ensure that Deepwater 
produces what the service needs to fulfill its missions to the 
nation and requires the information outlined in this report to 
assist in doing this.
  Section 216 would allow the Coast Guard to continue to use 
existing agreements with organizations that assist in providing 
safety training and cold water immersion education to fisherman 
and children. These public outreach programs enable the Coast 
Guard to establish a rapport with local communities, their 
community leaders, and those in the boating public which prove 
to be invaluable over time.

        TITLE III--UNITED STATES OCEAN COMMISSION IMPLEMENTATION

  S. 1280, as reported, includes several provisions that 
implement recommendations of the Final Report from the United 
States Commission on Ocean Policy, dated July 22, 2004.
  Section 301 requires the Coast Guard to work with other 
local, State, and Federal agencies in developing a process for 
determining when a vessel in distress may seek a place of 
refuge in the United States.
  Section 303 requires the Coast Guard to utilize public 
outreach programs for educating the boating public regarding 
the pollution hazards of two-stroke engines, and to support 
voluntary programs to reduce such pollution and encourage early 
replacement of older two-stroke engines. The Committee would 
like to ensure that this program educates the public on the 
differences between older carbureted two-stroke engines, and 
the newer fuel-injected two-stroke engines which operate much 
cleaner and efficiently than the older models.
  Section 305 requires the Coast Guard to submit a report on 
the measures it intends to take that would improve its ability 
to detect and interdict those vessels violating the United 
States Exclusive Economic Zone, especially in the Western/
Central Pacific area where these known violations are 
continuing to escalate each year. This requirement reflects the 
committee's concern that from FY 2000 through FY 2004, the 
Coast Guard reported a total of 216 suspected illegal 
incursions of foreign fishing vessels within the Western/
Central Pacific area of the U.S. Exclusive Economic Zone, yet 
the Coast Guard detected only three of these incursions and 
interdicted none.

  TITLE IV--COAST GUARD PERSONNEL, FINANCIAL, AND PROPERTY MANAGEMENT

  S. 1280, as reported, authorizes several significant changes 
in the way the Coast Guard utilizes it Reserve personnel, 
conducts officer promotions, and the process for liability 
coverage of equipment used by the Coast Guard Auxiliary.
  Section 403 authorizes the Secretary of Homeland Security to 
order Coast Guard Reservists to active duty for an increased 
period of time of not more than sixty days in any four-month 
period and not more than one hundred twenty days in any two-
year period, and expands its ability to use such recalls for a 
threat of a terrorist attack. The provision also requires that 
for purposes of calculating the duration of active duty, a 
period of active duty shall begin on the first day that a 
member reports to active duty, including for training.
  Section 404 allows personal motor vehicles of Coast Guard 
Auxiliary members to be eligible for liability coverage under 
Coast Guard claims procedures when the Auxiliary member is 
towing, under official Coast Guard orders in support of Coast 
Guard missions, trailers that carry government-owned boats or 
equipment.
  Section 406 waives time in grade requirements for officers in 
the rank of Lieutenant (O-3) through Commander (O-5) and 
ensures each officer the possibility of being considered for 
promotion from below-the-zone (deep selection) at least twice.
  Section 410 eliminates the requirement for Senate advice and 
consent on officer appointments of Lieutenant (O-3) and below 
in both peacetime and wartime. The Committee intends that this 
provision be applicable to both regular and reserve 
appointments. Additionally, the Committee expects to receive 
notification of those appointments which will now require 
Presidential approval only in order to be aware of all officer 
promotions in the Coast Guard.

              TITLE V--TECHNICAL AND CONFORMING AMENDMENTS

  S. 1280, as reported, also makes numerous changes in this 
title that reflect the Coast Guard's transition from the 
Department of Transportation to the Department of Homeland 
Security.

                          Legislative History

  S. 1280 was introduced in the Senate on June 21, 2005, by 
Senator Snowe (and co-sponsored by Senator Stevens, Senator 
Inouye, and Senator Cantwell) and referred to the Senate 
Committee on Commerce, Science, and Transportation. On June 23, 
2005, the bill was considered by the Committee in an open 
Executive Session. Senator Stevens offered an amendment 
regarding officer promotions. The Committee, without objection, 
ordered S. 1280 be reported with the amendment.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                                     July 14, 2005.
Hon. Ted Stevens,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1280, the Coast 
Guard Authorization Act of 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.

S. 1280, Coast Guard Authorization Act of 2005

    Summary: S. 1280 would authorize appropriations for U.S. 
Coast Guard (USCG) activities for fiscal years 2006 and 2007. 
CBO estimates that appropriation of the authorized amounts 
would result in outlays of $4.7 billion in fiscal year 2006 and 
$14.6 billion over the 2006-2010 period. (About $500 million of 
the authorized amounts would be spent after 2010.) Enacting S. 
1280 would have no effect on direct spending. Because the bill 
would raise existing civil penalties for violations of the 
Maritime Transportation Security Act, its enactment could 
affect revenues, but we expect that any resulting increases 
would be less than $500,000 annually.
    S. 1280 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA). Any costs to state, 
local, and tribal governments would be incurred voluntarily.
    S. 1280 would impose private-sector mandates, as defined in 
UMRA, on certain mortgage holders of vessels engaged in 
commerce in U.S. waters and on persons that transport certain 
mooring equipment from one point on the U.S. Outer Continental 
Shelf (OCS) to another such point. Based on information 
provided by government sources, CBO expects that the aggregate 
direct costs of complying with those mandates would be minimal 
and fall below the annual threshold established by UMRA for 
private-sector mandates ($123 million in 2005, adjusted 
annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effects of S. 1280 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--
                                                           -----------------------------------------------------
                                                              2005     2006     2007     2008     2009     2010
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

USCG Spending Under Current Law:
    Budget Authority/Authorization Level \1\..............    6,515       29       29        0        0        0
    Estimated Outlays.....................................    6,104    1,932      786      324      135       56
Proposed Changes:
    Authorization Level...................................        0    7,293    7,767        4        0        0
    Estimated Outlays.....................................        0    4,748    6,421    1,988      969      478
USCG Spending Under S. 1280:
    Authorization Level...................................    6,515    7,322    7,796        4        0        0
    Estimated Outlays.....................................    6,104    6,680    7,207    2,312    1,104      534
----------------------------------------------------------------------------------------------------------------
\1\ The 2005 level is the amount appropriated for that year. The $29 million shown for 2006 and 2007 is the
  amount already authorized to be appropriated from the Oil Spill Liability Trust Fund for Coast Guard operating
  expenses and research.

    Basis of estimate: For this estimate, CBO assumes that the 
amounts authorized will be appropriated for each year. The 
total authorization amounts shown in the table for each year 
are the sum of all amounts stated in the bill for USCG 
discretionary accounts, excluding $29 million to be derived 
from the Oil Spill Liability Trust Fund (OSLTF). (This amount, 
which consists of $24.5 million for operating expenses and $3.5 
million for research, is already authorized under existing 
law.) Estimated outlays are based on historical spending 
patterns for the Coast Guard.

Spending subject to appropriation

    For 2006, S. 1280 would authorize the appropriation of over 
$5.7 billion for USCG operations (including $119 million for 
reserve training and $12 million for environmental compliance) 
and nearly $1.5 billion for capital acquisitions and other 
multiyear projects (including $24 million for research 
activities and $36 million for bridge alterations). For 2007, 
the bill would authorize about $6.2 billion for operations and 
nearly $1.6 billion for capital and multiyear spending. Of 
those amounts, $48.5 million would be derived from the OSLTF, 
but $29 million of that amount is already authorized to be 
appropriated from the trust fund by the Oil Pollution Act of 
1990.
    S. 1280 also would authorize appropriations for specific 
USCG projects, including $1 million in 2006 for a Web-based 
risk management data system, $100 million in 2006 for the 
acquisition, maintenance, and operation of icebreakers, and $4 
million for each of fiscal years 2006 through 2008 for a pilot 
program for long-range tracking of vessels using satellites. In 
addition, the bill would authorize the appropriation of $25 
million for each of fiscal years 2006 and 2007 to the 
Department of Transportation (DOT) for expenses of the LORAN-C 
navigation system. DOT would use most of those amounts to 
reimburse the Coast Guard for navigation services provided to 
the Federal Aviation Administration and other transportation 
agencies. The Coast Guard operates the LORAN-C system using a 
combination of direct appropriations and reimbursements from 
funds appropriated to other agencies.
    Finally, S. 1280 would authorize the appropriation of about 
$1 billion for 2006 and $1.1 billion for 2007 for Coast Guard 
retirement benefits, but those amounts are excluded from this 
estimate because such benefits are considered an entitlement 
under current law and are not subject to appropriation. Thus, 
the authorizations have no additional budgetary impact.

Revenues

    S. 1280 would amend the Maritime Security Act to raise 
certain civil penalties that may be imposed for violations of 
port security laws or regulations. CBO estimates that the 
changes made to the act would increase federal revenues from 
civil penalties by less than $500,000 annually.
    Estimated impact on state, local, and tribal governments: 
S. 1280 contains no intergovernmental mandates as defined in 
UMRA. Some provisions of title III would require the Coast 
Guard to consult with state and local law enforcement agencies, 
but any participation by those agencies would be voluntary.
    Estimated impact on the private sector: S. 1280 would 
impose private-sector mandates as defined in UMRA on certain 
mortgage holders of vessels engaged in commerce in U.S. waters 
and on persons that transport certain mooring equipment from 
one point on the Outer Continental Shelf to another such point. 
Based on information provided by government sources, CBO 
expects that the aggregate direct costs of complying with those 
mandates would be minimal and fall below the annual threshold 
established by UMRA for private-sector mandates ($123 million 
in 2005, adjusted annually for inflation).
    Section 206 would require mortgagees of documented vessels 
engaged in coastwise commercial trade and fishing to submit 
reports to the Secretary of Transportation. Such reports would 
provide information regarding the qualifications their vessels 
to engage in the coastwise trade and the fisheries in U.S. 
waters. Vessels must have a certificate of documentation from 
the Coast Guard to engage in commerce in U.S. waters. 
Currently, owners, masters, and charterers of documented 
vessels must submit reports regarding the qualifications of 
their vessels to engage in such activities--while mortgagees 
are not required to submit such reports. The reporting 
requirement in the bill would affect mortgagees that are 
affiliated with or have an office within the United States. 
According to the Coast Guard, the mortgagees would be required 
to submit operating documents upon the Secretary's request to 
comply with the mandate. Since mortgagees already have such 
documentation available to them, CBO estimates the cost to 
submit the information would be minimal.
    Section 217 would require vessels that engage in the moving 
of mooring equipment from one point over or on the OCS to 
another such point in connection with exploring or developing 
resources on the OCS to be registered in the United States and 
have a certificate of endorsement from the Coast Guard. 
Currently, most types of vessels transporting merchandise and 
personnel to and from the OCS must have a U.S. registry and be 
certified by the Coast Guard. The requirement in this section 
of the bill would be a mandate as defined in UMRA on any 
foreign-flagged vessels engaged in moving certain mooring 
equipment to or from the OCS that are affiliated with or have 
an office within the United States. According to the Coast 
Guard, few, if any, foreign-flagged vessels are engaged in such 
activities. Consequently, CBO estimates that the cost to comply 
with this mandate would be small.
    Previous CBO estimate: On June 10, 2005, CBO transmitted a 
cost estimate for H.R. 889, the Coast Guard and Maritime 
Transportation Act of 2005, as ordered reported by the House 
Committee on Transportation and Infrastructure on May 18, 2005. 
The two bills contain different authorization levels and 
periods. In addition, H.R. 889 contains provisions that would 
affect direct spending. Finally, H.R. 889 contains an 
intergovernmental mandate (by requiring certain publically 
operated ferries to submit to USCG inspections, reporting 
requirements, and fees). S. 1280 does not contain those 
requirements or any other intergovernmental mandates as defined 
in UMRA.
    Estimate prepared by: Federal Costs: Deborah Reis. Impact 
on State, Local, and Tribal Governments: Sarah Puro. Impact on 
the Private Sector: Craig Cammarata.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  S. 1280 as reported by the Committee would authorize 
appropriations to continue existing Coast Guard programs and 
make a number of changes to current law. The bill would have 
little, if any, regulatory impact, but a few of the bill's 
sections could impact some individuals and businesses, and the 
effects of these sections are discussed in the paragraphs 
below.

                            ECONOMIC IMPACT

  Section 202 would amend section 70119 of title 46, United 
States Code, to permit the Secretary to assess substantial 
civil penalties to compel owners and operators of vessels and 
facilities to comply with the Maritime Transportation Security 
Act of 2002 (MSTA). Enactment of this legislation would expand 
the enforcement options available to the Secretary under MTSA, 
consistent with other statutes that provide for a separate 
violation for each day a violation remains outstanding. The 
total fines per violation would not exceed $50,000 during 
FY2006, $75,000 during FY2007, and $100,000 after FY2007.

                                PRIVACY

  The reported bill would have little, if any, impact on the 
personal privacy of U.S. citizens.

                               PAPERWORK

  The reported bill should not significantly increase paperwork 
requirements for individuals and businesses.

                      Section-by-Section Analysis


Section 1. Short title

  This section states that the Act may be cited as the Coast 
Guard Authorization Act of 2005.

Section 2. Table of contents

  This section states the table of contents for the bill.

                        TITLE I--AUTHORIZATIONS

Section 101. Authorization of appropriations

  This section would authorize funds for fiscal year 2006 and 
fiscal year 2007 at the following levels:


------------------------------------------------------------------------
            FY2006                               Amount
------------------------------------------------------------------------
Operating Expenses...........   $5,594,900,000
Acquisition, Construction,      $1,423,852,000
 and Improvements.
Research and Development.....   $24,000,000
Retired Pay..................   $1,014,080,000
Alteration of Bridges........   $17,400,000
Environmental Compliance.....   $12,000,000
Reserve Program..............   $119,000,000
TOTAL........................   $8,206,232,000
------------------------------------------------------------------------



------------------------------------------------------------------------
            FY2007                               Amount
------------------------------------------------------------------------
Operating Expenses...........   $6,042,492,000
Acquisition, Construction,      $1,538,840,160
 and Improvements.
Research and Development.....   $25,920,000
Retired Pay..................   $1,095,206,400
Alteration of Bridges........   $18,792,000
Environmental Compliance.....   $12,960,000
Reserve Program..............   $128,520,000
TOTAL........................   $8,862,730,560
------------------------------------------------------------------------

Section 102. Authorized levels of military strength and training
  This section would authorize a Coast Guard end-of-year 
strength of 45,500 active duty military personnel for fiscal 
year 2006. This section would also authorize average military 
training student loads for fiscal year 2006 as follows:


------------------------------------------------------------------------
           Training                          Student Years
------------------------------------------------------------------------
Recruit/Special..............  2,500
Flight.......................  125
Professional.................  350
Officer......................  1,200
------------------------------------------------------------------------

Section 103. Web-based risk management data system
  This section would provide an authorization of $1,000,000 for 
the Coast Guard to continue their development of a web-based 
risk management system that links occupational health and 
safety databases to reduce accidents and fatalities.

      TITLE II--HOMELAND SECURITY, MARINE SAFETY, FISHERIES, AND 
                        ENVIRONMENTAL PROTECTION

Section 201. Extension of Coast Guard vessel anchorage and movement 
        authority
  Section 91 of title 14, United States Code, would allow the 
Coast Guard to control the anchorage and movement of any vessel 
in the navigable waters of the United States to ensure the 
safety and security of any U.S. naval vessel. The purpose of 
this section is to extend the seaward jurisdiction from 3 
nautical miles to 12 nautical miles from the baseline.
  A Naval Vessel Protection Zone (NVPZ), under section 91 of 
title 14, United States Code, is the preferred tool for 
establishing a protective standoff distance, or exclusion zone, 
around any naval vessel in U.S. waters. Under current law, 
NVPZs only extend out to 3 nautical miles from the baseline, 
unlike other security statutes that provide authority out to 12 
nautical miles. Navy Commanders have indicated that increasing 
NVPZs coverage out to 12 nautical miles would benefit their 
force protection efforts. Whenever a U.S. naval vessel travels 
beyond 3 nautical miles from the U.S. baseline, the Navy 
currently possesses no explicit statutory authority to enforce 
the Federal criminal law intended to protect the vessel's 
``safety and security.'' DOD maintains that its personnel 
cannot enforce a NVPZ beyond 3 nautical miles from the baseline 
until Congress expressly amends section 91 of title 14, United 
States Code, to track with the expansion of the territorial sea 
to 12 nautical miles. This provision would close a gap in the 
Navy's perceived enforcement authority.
Section 202. Enhanced civil penalties for violations of the Maritime 
        Transportation Security Act (MTSA)
  This section would amend section 70119 of title 46, United 
States Code, to permit the Secretary to assess substantial 
civil penalties to compel owners and operators of vessels and 
facilities to comply with MTSA. The amendment would add a 
dimension of enforcement flexibility for the Secretary to 
assess a civil penalty for each day an owner/operator remains 
non-compliant beyond the first day on which the violation was 
cited. Currently, the only enforcement alternative is for the 
Secretary to order cessation of vessel or facility operation 
until the owner or operator corrects the outstanding violation. 
Enactment of this legislation would expand the enforcement 
options available to the Secretary under MTSA, consistent with 
other statutes that provide for a separate violation for each 
day a violation remains outstanding. The total fines per 
violation would not exceed $50,000 during FY2006, $75,000 
during FY2007, and $100,000 after FY2007.
Section 203. Icebreakers
  This section would require the Coast Guard to take all 
necessary measures to maintain, at a minimum, its current 
vessel capacity for carrying out ice-breaking in the Arctic and 
Antarctic regions, and for the long-term recapitalization of 
such vessels. $100,000,000 is authorized for the Department in 
which the Coast Guard is operating in order to carry out this 
section.
Section 204. Cooperative arrangements
  This section would require the Coast Guard to submit a report 
on opportunities for and the feasibility of co-locating Coast 
Guard assets and personnel at facilities of other Armed 
Services branches, and entering into cooperative agreements for 
carrying out Coast Guard missions.
Section 205. Pilot program for dockside no fault/no cost safety and 
        survivability examinations for uninspected commercial fishing 
        vessels
  This section would authorize the Secretary to establish a 
pilot program to conduct mandatory dockside crew survivability 
examinations on uninspected U.S. commercial fishing vessels in 
at least 5, but not more than 10 fishing ports of the country 
over the next 5 years. The ports selected would be ones in 
which there are a high number of fatalities on uninspected 
vessels but would not include ports that already have a fishing 
vessel safety program. The purpose and scope of the pilot 
program would be to examine fishing vessels and their crews 
dockside, to ensure required safety equipment is on board the 
vessel and that the crew is trained in its proper use.
Section 206. Reports from mortgagees of vessels
  This section would add ``mortgagees'' to section 12120 of 
title 46, United States Code, and would give the Coast Guard 
the authority to seek information and reports from foreign 
mortgage holders as well as ``owners and masters'' and 
``charterers'' of Jones Act vessels for the purposes of 
ensuring Jones Act ownership requirements.
Section 207. International training and technical assistance
  This section would allow the Coast Guard to conduct 
international training and provide technical assistance to 
international navies, coast guards and maritime authorities 
during regular Coast Guard operations without requiring a 
specific request from a third party U.S. Government agency.
Section 208. Reference to trust territory of the Pacific Islands
  This section would remove the reference to the Territory of 
the Pacific Islands from the definition of ``State'' and 
``United States'' for purposes of recreational boating 
programs. The Trusteeship Agreement for the Pacific Islands was 
terminated on October 1, 1994. Once this agreement ended and 
new ``Compacts of Free Association'' were entered into with the 
United States, there was no request for approval of a numbering 
system for undocumented vessels or participation in the State 
Recreational Boating Safety (RBS) Compacts that would allow 
territories to continue to participate in the programs.
Section 209. Bio-diesel feasibility study
  This section would require the Coast Guard to submit a report 
on the feasibility of using bio-diesel fuel in both new and 
existing vehicles and vessels. The report would include 
anticipated costs associated with implementing the use of bio-
diesel, as well as predicted cost savings.
Section 210. Certification of vessel nationality in drug smuggling 
        cases
  This section would amend The Maritime Drug Law Enforcement 
Act (MDLEA) to close a loophole in criminal enforcement 
evidentiary rules for drug smuggling cases. The lack of 
jurisdiction by another flag State is often the critical 
element in establishing U.S. jurisdiction for a violation of 
the MDLEA. This amendment would allow the U.S. to prove that a 
flag State which the defendant alleged has jurisdiction does 
not have such jurisdiction if the flag State, in response to a 
U.S. inquiry, states that it ``can neither confirm nor deny'' a 
suspect vessel's nationality.
Section 211. Administrative Jones Act waivers
  This section would establish a waiver that would allow 
vessels not built in the United States to transport fish and 
shellfish within the coastal waters of the State of Maine if 
they meet the criteria outlined in the section. The criteria 
include that such a vessel must meet the other requirements 
section 27 of the Merchant Marine Act of 1920 (46 U.S.C. App. 
802), be ineligible for documentation under chapter 121 of 
title 46, United States Code, because it measures less than 5 
net tons, has transported fish or shellfish within the coastal 
waters of the State of Maine prior to December 31, 2004, and 
has not undergone a transfer of ownership after December 31, 
2004.
Section 212. Deepwater oversight
  This section would require the Coast Guard to submit a report 
on the status of their compliance with the GAO's 
recommendations in report GAO-04-380, ``Coast Guard Deepwater 
Program Needs Increased Attention to Management and Contractor 
Oversight.''
Section 213. Deepwater report
  This section would require the Coast Guard to submit, in 
conjunction with the President's Fiscal Year 2007 budget, a 
report that discusses possible acceleration of the Deepwater 
program, including legacy asset sustainment issues and costs, 
feasibility concerns, anticipated mission deficiencies, 
projected capabilities, and required funding levels.
Section 214. LORAN-C
  This section would authorize the Department of Transportation 
to transfer $25,000,000 in Fiscal Year 2006 and in Fiscal Year 
2007 from the Federal Aviation Administration to the Coast 
Guard for recapitalization of the LORAN-C radio navigation 
system.
Section 215. Long-range vessel tracking system
  This section would authorize a pilot project that would allow 
the Coast Guard to conduct a program for long-range tracking of 
up to 2,000 vessels using a satellite tracking system. This 
project would be conducted with the assistance of an existing 
non-profit maritime organization that has a demonstrated 
capability of operating satellite communications systems able 
to transmit this type of data in an effort to aid the Coast 
Guard in responding to maritime emergencies and threats to 
maritime security.
Section 216. Marine vessel and cold water safety education
  This section would allow the Coast Guard to continue to use 
existing agreements with organizations that provide marine 
vessel safety training and cold water immersion education to 
fishermen and children.
Section 217. Suction anchors
  This section would create parity for vessels utilizing 
suction anchors with those vessels using normal anchors.

        TITLE III--UNITED STATES OCEAN COMMISSION IMPLEMENTATION

Section 301. Place of refuge
  This section would require the Coast Guard, working with 
other Federal, State, and local agencies and marine salvage 
companies, to establish a process for determining when a vessel 
in distress may seek a place of refuge in the United States. 
The Coast Guard would be required to submit a report to 
Congress summarizing such process.
Section 302. Implementation of international agreements
  This section would require the Coast Guard, in conjunction 
with other appropriate Federal agencies, to work with the 
responsible officials of other nations to accelerate efforts at 
the International Maritime Organization (IMO) to enhance flag 
State oversight and enforcement of security, environmental, and 
other agreements adopted within the IMO.
Section 303. Voluntary measures for reducing pollution from 
        recreational boats
  This section would require the Coast Guard to utilize public 
outreach programs for educating the boating public regarding 
the pollution hazards of two-stroke engines, and to support 
voluntary programs to reduce such pollution and encourage early 
replacement of older two-stroke engines.
Section 304. Integration of vessel monitoring system data
  This section would require the Coast Guard to integrate 
vessel monitoring system data into its maritime operations 
databases in order to improve its monitoring and enforcement of 
Federal fisheries laws.
Section 305. Foreign fishing incursions
  This section would require the Coast Guard to submit a report 
to Congress, to be updated biannually, on the measures it 
intends to take to significantly improve the Coast Guard's 
detection and interdiction of foreign fishing vessel incursions 
in the United States Exclusive Economic Zone (EEZ), focusing on 
areas such as the Western/Central Pacific where such incursions 
have been occurring but have gone undetected by the Coast 
Guard.

  TITLE IV--COAST GUARD PERSONNEL, FINANCIAL, AND PROPERTY MANAGEMENT

Section 401. Reserve officer distribution
  This section would amend section 724 of title 14, United 
States Code, to link Coast Guard Reserve officer authorization 
levels to Active Duty officer authorization levels for grades 
O-6 and below in order to properly distribute the numbers of 
Reserve officers in those grades. The proposal would also make 
clear that Reserve officers in an active status are counted 
only against the Reserve component strength.
Section 402. Coast guard band director
  This section would amend section 336 of title 14, United 
States Code, to allow the Secretary to appoint the United 
States Coast Guard Band Director at a rank commensurate with 
the person's experience and training, rather than requiring the 
Director to be appointed as a junior officer. The proposal 
would also allow the Secretary to appoint the Band Director 
from any source rather than only from among members of the 
Coast Guard.
Section 403. Reserve recall authority
  This section would amend section 712 of title 14, United 
States Code, to allow the Secretary of Homeland Security to 
order Coast Guard Reservists to active duty, (1) for an 
increased period of time--of not more than sixty days in any 
four-month period and not more than one hundred-twenty days in 
any two-year period, and (2) for a threat of a terrorist 
attack. The provision would require that for purposes of 
calculating the duration of active duty, a period of active 
duty shall begin on the first day that a member reports to 
active duty, including for training.
Section 404. Expansion of equipment used by auxiliary to support Coast 
        Guard missions
  This section would allow personal motorized vehicles of the 
Coast Guard Auxiliary, in limited circumstances, to be eligible 
for liability coverage under Coast Guard claims procedures when 
an Auxiliary member is towing, under official Coast Guard 
orders in support of Coast Guard missions, trailers that carry 
government-owned boats and other equipment.
Section 405. Authority for one-step turnkey design-build contracting
  This section would amend title 14, United States Code, by 
adding a new section 677 which would permit the Secretary to 
award consolidated Design-Build contracts using a one-step 
turn-key selection procedure similar to the authority found in 
section 2862 of title 10, United States Code. One-step turn-key 
authority would permit the selection of a contractor on the 
basis of price and other evaluation criteria through a single 
proposal, in accordance with the provisions of a firm fixed-
price contract, for both the design and construction of a 
facility using performance specifications.
Section 406. Officer promotion
  This section would amend section 257 of title 14, United 
States Code, to allow the Secretary of the Department in which 
the Coast Guard is operating to waive time in grade 
requirements for officers O-3 through O-5. Title 10, United 
States Code, allows the Secretary of Defense this same 
authority.
Section 407. Redesignation of Coast Guard law specialists as judge 
        advocates
  This section would redesignate Coast Guard ``law 
specialists'' as ``judge advocates.'' The Coast Guard is 
currently the only military service that does not use the title 
``judge advocate'' for its military attorneys.
Section 408. Boating Safety Director
  This section would ensure that the individual who is assigned 
as the Coast Guard Boating Safety Director will be a uniformed 
officer in the rank of Captain.
Section 409. Hangar at Coast Guard air station Barbers Point
  This section would require the Coast Guard to submit a report 
that includes a proposal and cost analysis for constructing an 
enclosed hangar at Coast Guard Air Station Barbers Point. The 
current station is not enclosed, and is not large enough to 
house a single C-130 aircraft.
Section 410. Promotion of Coast Guard officers
  This section removes the advice and consent of the Senate for 
officer appointments to the rank of Lieutenant (O-3) and below 
in both peacetime and wartime.

              TITLE V--TECHNICAL AND CONFORMING AMENDMENTS

Sections 501-518, 520-521
  These sections would make technical corrections and 
conforming amendments that update various sections of the 
United States Code to reflect the transfer of the Coast Guard 
from the Department of Transportation to the Department of 
Homeland Security (DHS). This transfer was mandated by the 
Homeland Security Act of 2002, Public Law 107-296, and the 
Coast Guard transferred to DHS effective March 1, 2003. The 
corrections and amendments in this title are non-substantive, 
for example replacing ``Secretary of Transportation'' with 
``Secretary of Homeland Security.''
Section 519. Nontank vessels
  This section would clarify the applicability of section 701 
of P.L. 108-293 (Coast Guard and Maritime Transportation Act of 
2004) to nontank vessels within 12 nautical miles of the United 
States.

                       TITLE VI--EFFECTIVE DATES

Section 601. Effective dates
  This section would provide that the Act would take effect on 
the date of enactment, except that the technical amendments of 
sections 501-518 would take effect on March 1, 2003.

                      Rollcall Votes in Committee

  In accordance with paragraph 7(c) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following description of the record votes during its 
consideration of S. 1280:

  By a roll call vote of 22 yeas and 0 nays as follows, the 
bill was ordered reported:
        YEAS--22                      NAYS--0
Mr. Stevens
Mr. McCain\1\
Mr. Burns
Mr. Lott
Mrs. Hutchison
Ms. Snowe
Mr. Smith
Mr. Ensign\1\
Mr. Allen
Mr. Sununu
Mr. DeMint\1\
Mr. Vitter\1\
Mr. Inouye
Mr. Rockefeller\1\
Mr. Kerry\1\
Mr. Dorgan\1\
Mrs. Boxer\1\
Mr. Nelson of Florida
Ms. Cantwell
Mr. Lautenberg
Mr. Nelson of Nebraska
Mr. Pryor

    \1\By proxy


       Additional, Supplemental, or Minority Views deg.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
bill as reported would make no change to existing law. deg.
  In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman): deg.
  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, the Committee states that, in its opinion, 
it is necessary to dispense with the requirements of that 
paragraph in order to expedite the business of the Senate.

                                  
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