access to the world s markets. The National Conference of State Legislatures (NCSL) recognizes

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1 1 2 3 TITLE: COMMITTEE: TYPE: WATERWAYS AND PORTS TRANSPORTATION EXISTING POLICY SET TO EXPIRE The U.S. system of waterways and ports provides substantial benefits to the nation by providing access to the world s markets. The National Conference of State Legislatures (NCSL) recognizes the combined efforts of all levels of government and users in sharing the cost of port and waterway development and maintenance. NCSL further acknowledges the distinctive roles played by the states and the federal government in financing waterways and ports. The increase of state and local financial support in recent years should be concomitant with an increased planning authority, which is particularly important for the integration and support of other transportation systems for enhanced waterway and port activity Ports Investment in the U.S. water transportation system is a partnership between state and local governments and the federal government. State and local authorities significantly invest resources to enhance marine terminal capacity and efficiency, dredge berths and approach channels, and share the cost of new dredging projects to widen and deepen navigation channels. The federal government traditionally had supported dredging expenses through the General Treasury. In 1986, Congress established the Harbor Maintenance Tax, which is paid on imports and the domestic coastwise movement of goods, to support increased federal operations, and to finance the maintenance dredging of navigable channels and harbors. These taxes are deposited into the Harbor Maintenance Trust Fund. 24

2 In order to sustain U.S. leadership in global trade, the nation s ports must receive adequate federal funds to improve and maintain federal navigational channels. NCSL supports the full use of the Harbor Maintenance Trust Fund to maintain the nation s harbors and calls on Congress to adequately fund deepening projects to modernize our ports. The accumulation of harbor tax receipts at the federal level is a break in faith from the purpose of the Harbor Maintenance Tax and results in the imposition of a competitive burden without providing needed improvements necessary to achieve efficiencies to offset added taxes Intermodal Connectors The nation's ports and waterways are an integral part of an intermodal transportation system. Port efficiency is impacted by the condition of intermodal connectors into ports from the nation s highway and rail system. With global trade on the rise and ever-more dependent on the seamless movement of goods, state legislatures recognize the need to plan for increased cargo in order to avoid significant congestion in areas close to urban ports. NCSL calls on Congress to significantly increase federal investment in highway and rail infrastructure and provide states added flexibility to improve intermodal connectors and surface transportation systems near the nation s ports. Where feasible, NCSL also encourages and supports the deployment of ferry crossings Maritime Security Port security is a state-federal partnership that is critical to the nation s homeland security strategy. The states need clear federal direction to ensure that resources are focused on the most needed security improvements. Ninety-five percent of overseas cargo and millions of cruise and

3 48 49 ferry passengers transit through ports each year. Ports are spending enormous sums to harden these vulnerable targets and need federal assistance Security costs cannot be shifted to shippers without threatening U.S. ports ability to compete internationally.ncsl supports the The Department of Homeland Security s Pport ssecurity ggrant pprogram, which is vital to ports abilityies to make improvements quickly and comply with the Maritime Transportation Security Act of States have been directed to enhance the security of publicly operated ferries and provide for the inspection of vehicles and freight. In some cases, federal directives have preempted existing state laws and policies to the extent of supercedingsuperseding state constitutional provisions. Inadequate ffederal assistances has created an unfunded mandate on states and local port authorities and should at a minimum should fund these operational requirements to avoid unfunded mandates. that directly contravene state law Foreign Imports NCSL supports action by the Federal Maritime Commission to restrict foreign cargo shipments from nations that discriminate against U.S. carriers. In addition, any importation of hazardous materials should comply with the requirements of the National Environmental Policy Act to insure proper notification and assessment of environmental impact Cargo Preference The cargo preference requirements of the Food Security Act should be repealed. These provisions unjustifiably increase costs to taxpayers through increased federal shipping costs and are of questionable benefit to national security.

4 Inland Waterways The federal role in inland waterway capital and operating expenditures has been predominant. Due to the interstate commerce nature of this transportation system, this is an appropriate responsibility for the federal government. NCSL does not support the application of user fees to finance this system. The inland waterway system is of national importance as an alternative mode of commerce and a facilitator of regional economic development. NCSL supports the utilization of U.S. Department of Transportation discretionary funds for emergency assistance to states for ports and waterways adversely affected by severe flooding Transportation Worked Identification Credential The Transportation Worker Identification Credential (TWIC) program is a Transportation Security Administration (TSA) and U.S. Coast Guard joint effort. The TWIC program provides a tamper-resistant biometric credential to maritime workers requiring unescorted access to secure areas of port facilities, outer continental shelf facilities, vessels regulated under the Maritime Transportation Security Act (MTSA), and all U.S. Coast Guard credentialed merchant mariners. After the adoption of the MTSA by Congress the final implementing regulations were released on January 1, 2007, but full launch of the credential is still on hold. There have been a number of enrollment problems with TWIC and concerns remain about technology, costs to authorities and employers, and relationships to other secure identification documents. Program challenges, coordination with the maritime industry, and changing criteria relative to criminal background checks have exacerbated problems. 94

5 TSA and the Coast Guard should consult closely with the states to ensure the TWIC launch and enrollment processes respect state laws and authorities, particularly where states are engaged in the operations of their ports or are developing similar identification credentials. Congress should exercise effective oversight to improve this consultation and achieve cost effective deployment Waterways General Coast Guard. The role of the U.S. Coast Guard in directing waterborne traffic should be enhanced. Adequate emergency response plans should be developed with a review of existing contingency plans. Authority to access the National Driver Register should be extended to the Coast Guard so that the complete history is available on seamen being processed for licensing and certification. Congress should adequately continue to fund the Coast Guard's Integrated Deepwater Capability Replacement Systems Pprogram while maintaining existing funding for other transportation programs. User Fees. The method of financing expenses incurred primarily for the user's benefit is an appropriate mechanism. However, the effect of such charges in a competitive worldwide environment should be carefully scrutinized. Fees assessed should be equitable and nondiscriminatory. Those fees collected should be protected in trust fund accounts and their expenditure limited to the purposes for which they were collected. Recreational boat user fees, which are collected but not available for related boat safety activities, should be redirected to boating safety programs. User fees should not be assessed on commercial traffic to recover uncompensated benefits to civilian navigation and search and rescue activities.

6 Marine Environment. A comprehensive liability and compensation system should be maintained at the federal level to provide vulnerable states with a means of environmental restoration in the event of a shipping accident, or as a result of invasive species. It should be the policy of the United States to require that domestic oil producers and common carriers develop the capability to safely transport crude oil and other liquefied petroleum products and to quickly and effectively contain and clean up oil spills that occur Expires in August 2010