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Energy and water development appropriations for 1996 : hearings before a subcommittee of the Committee on Appropriations, House of Representatives, One Hundred Fourth Congress, first session (Volume Part 7) online

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ENERGY AND WATER DEVELOPMENT
APPROPRIATIONS FOR 1996



I



Y 4,AP 6/1: EN 2/2/996/
PT,7

Energy and Uater Developnent Approp. . . -^p qi

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES

ONE HUNDRED FOURTH CONGRESS

FIRST SESSION



SUBCOMMITTEE ON ENERGY AND WATER DEVELOPMENT

JOHN T. MYERS, IndiaBa, Chairman

HAROLD ROGERS, Kentucky TOM BEVILL, Alabama

JOE KNOLLENBERG, Michigan VIC FAZIO, California

FRAhfK RIGGS, CaUfomia JIM CHAPMAN, Texas

RODNEY P. FRELINGHUYSEN, New Jersey
JIM BUNN, Oregon

NOTE: Under Committee Rules, Mr. Livingston, as Chairman of the Full Committee, and Mr. Obey, as Ranking
Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees.

James D. Ogsbury, Bob Schmidt, and Jeanne Wilson, Staff Assistants



PART 7

(Pages 1-1270)

TESTIMONY OF MEMBERS OF CONGRESS AND OTHER
INTERESTED INDIVIDUALS AND ORGANIZATIONS




Printed for the use of the Committee on Appropriations



U.S. GOVERNMENT PRINTING OFFICE
89-757 WASHINGTON : 1995



ENERGY AND WATER DEVELOPMENT
APPROPRIATIONS FOR 1996



HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES

ONE HUNDRED FOURTH CONGRESS

FIRST SESSION



SUBCOMMITTEE ON ENERGY AND WATER DEVELOPMENT

JOHN T. MYERS, Indiana, Chairman

HAROLD ROGERS, Kentucky TOM BEVILL, Alabama

JOE KNOLLENBERG, Michigan VIC FAZIO, California

FRANK RIGGS, California JIM CHAPMAN, Texas

RODNEY P. FRELINGHUYSEN, New Jersey
JIM BUNN, Oregon

NOTE: Under Committee Rules, Mr. Livingston, as Chairman of the Full Committee, and Mr. Obey, as Ranking
Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees.

James D. Ogsbury, Bob Schmidt, and Jeanne Wilson, Staff Assistants



PART 7

(Pages 1-1270)

TESTIMONY OF MEMBERS OF CONGRESS AND OTHER
INTERESTED INDIVIDUALS AND ORGANIZATIONS




Printed for the use of the Committee on Appropriations



For sale by the U.S. Government Printing Office
Superintendent of Documents. Congressional Sales Office, Washington, EX: 20402
ISBN 0-16-047098-6



COMMITTEE ON APPROPRIATIONS
BOB LIVINGSTON, Louisiana, Chairman



JOSEPH M. McDADE, Pennsylvania

JOHN T. MYERS, Indiana

C. W. BILL YOUNG, Florida

RALPH REGULA. Ohio

JERRY LEWIS, California

JOHN EDWARD PORTER, Illinois

HAROLD ROGERS, Kentucky

JOE SKEEN, New Mexico

FRANK R. WOLF, Virginia

TOM Delay, Texas

JIM KOLBE, Arizona

BARBARA F. VUCANOVICH, Nevada

JIM LIGHTFOOT, Iowa

RON PACKARD, California

SONNY CALLAHAN, Alabama

JAMES T. WALSH, New York

CHARLES H. TAYLOR, North Carolina

DAVID L. HOBSON, Ohio

ERNEST J. ISTOOK, Jr., Oklahoma

HENRY BONILLA, Texas

JOE KNOLLENBERG, Michigan

DAN MILLER, Florida

JAY DICKEY, Arkansas

JACK KINGSTON, Georgia

FRANK RIGGS, California

RODNEY P. FRELINGHUYSEN, New Jersey

ROGER F. WICKER, Mississippi

MICHAEL P. FORBES, New York

GEORGE R. NETHERCUTT, Jr., Washington

JIM BUNN, Oregon

MARK W. NEUMANN, Wisconsin



DAVID R. OBEY, Wisconsin

SIDNEY R. YATES, IlUnois

LOUIS STOKES, Ohio

TOM BEVILL, Alabama

JOHN P. MURTHA, Pennsylvania

CHARLES WILSON, Texas

NORMAN D. DICKS, Washington

MARTIN OLAV SABO, Minnesota

JULIAN C. DDCON, California

VIC FAZIO, California

W. G. (BILL) HEFNER, North Carolina

STENY H. HOYER, Maryland

RICHARD J. DURBIN, Illinois

RONALD D. COLEMAN, Texas

ALAN B. MOLLOHAN, West Virginia

JIM CHAPMAN, Texas

MARCY KAPTUR, Ohio

DAVID E. SKAGGS, Colorado

NANCY PELOSI, CaUfomia

PETER J. VISCLOSKY, Indiana

THOMAS M. FOGLIETTA, Pennsylvania

ESTEBAN EDWARD TORRES, CaUfornia

NITA M. LOWEY, New York

RAY THORNTON, Arkansas



James W. Dyer, Clerk and Staff Director



ENERGY AND WATER DEVELOPMENT
APPROPRIATIONS FOR 1996



TESTIMONY OF MEMBERS OF CONGRESS AND OTHER
INTERESTED INDIVIDUALS AND ORGANIZATIONS



Tuesday, March 21, 1995.
MOBILE HARBOR AND SHIP CHANNEL, ALABAMA

WITNESSES
EDDEE BRISTER, MOBILE CHAMBER OF COMMERCE

JOHN P. CAREY, GENERAL MANAGER OF ADMINISTRATION, ALABAMA
STATE DOCKS

Mr. Myers. The committee will come to order.

And the Chair yields to Chairman Bevill.

Mr. Bevill [presiding]. Well, thank you, Mr. Chairman.

It is good to see our Alabama State Docks representatives here.
We appreciate the great job you do in Alabama and for that part
of the country, as a matter of fact. And your growth is continuing,
and I follow you very closely and we appreciate you. So we are
looking forward to hearing from you. And you may take all the
time you want, as long as you limit it to five minutes.

Mr. Brister. Mr. Chairman, and Members of the subcommittee,
we thank you for the opportunity today to address you, along with
John Carey, the General Manager of the Alabama State Docks in
charge of administration.

I am Eddie Brister, I am Vice President for Mobile Bay Towing,
and I represent the Mobile area Chamber of Commerce.

The statement today is presented on behalf of over 2,400 mem-
bers of the Mobile Chamber of Commerce in support of fiscal year
1996 budget requirements associated with water projects in the
Mobile area.

The vital benefits of our Port in Mobile are recognized through-
out our community and the region. And we are grateful for the ef-
forts of the Corps of Engineers and the completion and deepening
of our channel to 45 feet and their ongoing efforts in having our
inner harbor once again maintained to the full project depth and
width.

One of the benefits of our channel is the 45 percent increase in
coal exports this fiscal year to 10 million tons. The underlying ben-
efits to the shippers and receivers with the deeper channel was
achieving more cargo on each ship. Also, Mobile has recently signed
a three-year contract, whereby one million tons of low sulfur coal

(1)



is imported to our port from Venezuela, blended with Illinois coal,
transshipped to Florida Power and Light. So it is obvious that the
proper maintenance of our port is vital, not only to our immediate
area, but other portions of the Nation.

There is continuing concern, of course, to maintain the author-
ized draft at the Port of Mobile and its role in the movement of
international commerce as well as the port's vital role in our area
economy. Of particular importance is the appropriation request by
the Army Corps of Engineers for $18 million for the operation and
maintenance of the Mobile Harbor.

However, we are concerned about the President's proposal to
cease the operation and maintenance funding for shallow draft har-
bors that do not contribute to the Harbor Maintenance Trust Fund.
If enacted, we feel this proposal would have a very detrimental eco-
nomic effect on the offshore oil and gas industry out of Dauphin Is-
land, the commercial seafood industry and the boat building and
water-related tourism. These impacts would be national in scope
and not just local.

We do appreciate and thank you for the opportunity to present
this statement in support of the fiscal year 1996 budget allocations,
and we respectfully request that this statement be included and
made a part of the permanent record of these hearings.

Thank you.

Mr. Bevill. Thank you.

Mr. Carey. Mr. Chairman — and also, Mr. Chairman, obviously,
we were disappointed to see the change, to a degree, but having
worked with Mr. Myers previously, we are just as excited to be
here again this year. We are very comfortable with the teamwork
that you have shown in the past and we know that it is going to
continue to support Mobile.

Mr. Myers. You are just as welcome. Tom and I have worked to-
gether for years, and it hasn't changed any.

Mr. Bevill. We served together so long, we agreed long ago not
to write a book.

Mr. Carey. I would like to add a few comments to Mr. Brister's
presentation.

And please don't take my comments as a love-in with the Corps
of Engineers, because, frankly, we practice some tough love down
there in Mobile district, and what they are able to do for us. But
as Eddie indicated, what we are seeing in Mobile is proof positive
that the joint partnership between the Federal Government and
the State of Alabama and the operating facilities at the Alabama
State Docks is the right way to go.

With the Water Resource Development Act of 1986, we were al-
lowed to deepen our bay channel to 45 feet. The first few years
after that happened, we did have some major problems with the
shoaling of that particular channel. It resulted in about two years
ago of a budget request of almost $25 million to maintain that
channel.

Through our close work and cooperation with the Corps of Engi-
neers in Mobile District and some modification of their dredging
contracting policies and the like; not only have we now for 2.5
years had a very fine channel, resulting in the major increase in
cargo tonnage coming through the Port of Mobile, but we have



Mr. Bevill. Can you wrap it up there? Your five minutes is up.

Mr. Carey. Yes, sir.

We have been able to continue to improve the performance and
would anticipate further growth in the future.

With that, my full statement, along with Mr. Brister's is in the
record.

Mr. Bevill. Your full statements by each of you will be made a
part of the record.

And, Chairman Myers, and I do not hesitate to take a great deal
of credit for you having a 45-foot channel. And as a matter of fact,
there are only six in the country, and that was one of the six. And
so, we are pleased that you could come.

Thank you for your good work.

Mr. Carey. Thank you, sir.

[The statements of Mr. Brister and Mr. Carey follow:]



SLMOVRY GF S33^XEME»IS BY

JOHN P. CAREY
GEHaaH, MANAGER, AOKENISIRATIGN
AUBAMA STATE DOCKS DEPAR3ME31T



J.

VICE CHAIRMAN, POSa & VtATERHAYS TRSK FGRCE

MOBII£ AREA CHAMBER GF C0M4ERCE

MOBILE, ALABAMA



On behalf of operating and maintenance funding of the U. S. Anny Corps of
Engineers for Mobile Harbor, Fiscal Year 1996, in the sum of $17,780,000
before the Subccnmittee on Energy and Water Development, Honorable John
Myers, Chairman, Washington, D. C, March 21, 1995.

This statement also supports funding of operating and maintenance for the
Alabama-Coosa Watervra.y, the Warrior-Tdnibigbee Watervra.y, the Tennessee-
Tarbi^Dee Waterway and the Gulf Intercoastal Waterway.

In addition this statement supports continued funding of expansion of the
Port of Bayou La Batre at the current scheduled program rate.



Mr. Chairman;

I am John Carey, General Manager of Administration, for the Alabama State
Docks. For the last several years, I have had the opportvinity to appear
before this siibccnmittee to discuss the successes and challenges of the
Alabana State Docks, the Port of Mobile and the waterways transportation
systems which bring cargo to and fran the Port of Mctoile.

Development of my testimony each year has presented a challenge as I
attenpted to find new and interesting ways to portray our unique situation.
Initially, this year appeared to be even more difficult given the
realignment of Congress. Given; however, the continuity of the overall
leadership structure of this subccnmittee, I am confortable that there
remains an understanding of the role our port plays in the national
econcny. We continue to ^preciate the dedication you and your siibcotmittee
have demonstrated over the years in support of the national and regional
waterway transportation systems upon vM.ch we rely.

The State of Alabama, with almost 1300 miles of inland waterway
transportation capability, has more such mileage than any other state. Four
of our six waterway systems are shared with our neighboring states and are
therefore truly key to interstate ccranerce. The Port of Mobile, as the
state's only deep water port and the terminus of the Tennessee-Tonbigbee
Waterway, plays an ever increasing role in not only our state's econory but
the region and the national inland waterway system. Therefore, without
exception we strongly support the continuing funding of the operation and
maintenance of the Alabama-Coosa Waterway, the Tennessee Waterway, the
Warrior-TCinbigbee Waterway, the Chattahoochee-i^jalachicola Waterway, the
Tennessee-Tonbi^see Waterway and the Gulf Intercoastal Canal Waterway.

We are also very concerned and supportive of the continued fvill fxonding of
those Corps of Engineers' projects vAiich support ccnmercial fishing within
the State of Alabama such as the Bayou La Batre project.

In the past 65 years, the Alabama State Docks, as a revenue based state
agency, has been able to develop an infrastructure that is valued at over
one half a biJLlion dollars. This infrastructure, and our pjarticipation as a
cost sharing partner in the developmsnt of the Mobile Harbor Federal Project
has cone f rem revenues generated by our activities not fran tax generated
fionds.

We currently have a very aggressive strategic rehabilitation and ejqjansion
effort ongoing which wiJ.1 add approximately one hundred million dollars to
cur infrastructure base. Again, all funded as a result of revenues produced
fran our op)erations, not fran the tax base. I oiphasize this pxaint strongly
because of the continuing false pierception that port and waterway pirojects,
such as ours, are a false econany draining tax dollars as a result of
"pork. "

I would also like to highlight that funding for the Corps of Engineers



operation and maintenance of port facilities is founded in the Harbor
Maintenance Trust Fund. This fund last year produced 646 million dollars of
revenue to the federal government, but vAiich returned only a little over 477
million dollars to the generators of this revenue. It is estimated that the
fund vdll generate 717 million dollars this year, but return only 500
million dollars to the user ccnnunity.

The Alabama State Docks is tniLy an intermodal port that handles a nultitude
of cargo types. The Water Resources Develc^ment Act of 1986 provided the
Port of Mc±)ile with an increaised capability to serve both our national and
international role. As a result of close coordination and cooperation
between the Alabama State Docks and the U. S. Amy Corps of Engineers Mobile
District, we have seen an ever-increasing payoff fran our joint
investments. Fran a transportation medium prospective, the Alabana State
Docks, in the last year, saw an increase of s^proxinete nine percent.
Broken dcwn in detail, there has been a four percent increase in rail
traffic, nine percent increase in barge traffic, sixteen percent increase in
truck traffic and a fourteen percent increase in deep water ship traiffic.

Frcm a cargo prospective, the Alabama State Docks has seen an overall six
percent increase. In our bulk ore cperations, the increase was four
percent, in coal, it was ten percent and in break-bulk cargo, it Wcis
seventeen percent. We are extremely excited about a recent estinate which
indicates that our handling of coal in the next fiscal year will reflect an
increase of almost 40 percent. A large part of the credit for this increase
can go to the reliability of the 45 foot channel v\M.ch has been fully
operational for the past two and one-half years, a result of the inaproved
performance of the Mobile District Corps of Engineers naintenance dredging
program.

When the Water Resource Develcpnent Act of 1986 was passed the Corps of
Engineers was directed, without supporting studies, to change its operation
maintenance procedures for handling of dredged material for the Mobile
Harbor Project frcm one of in-bay disposal to offshore disposed. This
change resulted in a direct increase of the cost of maintenance of our
channel by sane five to seven times and ciibninating in a requirement for a
budget two years ago of almost 25 million dollars.

Again, as a result of the close cooperation and coordination between the
Alabama State Docks and the Mdaile District Corps of Engineers, we have
successfully reduced this O&M requirement to the requested $17,800,000 that
is shown in the FY '96 budget vrtiich we are discussing today.

It mist be recognized; however, that this is still seme eight to ten mi llio n
dollars over v*iat it cost to maintain this channel prior to the Water
Resource Development Act of 1986. This is an excellent exaitple of the cost
of environmental consciousness.

Unfortunately, despite the good news above, we, in Alabama, and more
particularly, in Mi±)ile, are deeply concerned with the proposals currently



being made to reduce the federal budget. Many of them will have direct
negative iotpact on the econony of our state and region. Those v*io are the
source of these prc^xjsals are falling into the trap that the funds e3q)ended
for waterways construction and c^jeration and maintenance are unwarranted or
not national in scope.

Waterways systems projects are highly intertwined and not as easily
separable as scne would like to portray. For example, there is discussion
on closing out the Corps of Engineers' continuing resolution authority.
Such projects, vMle not producing re\'enue for the Harbor Maintenance Trust
Fund, do provide an access whereby locally produced goods can be transported
to the Port of Mobile more econcmically and with less environmental cost.
It provides our ccmnercial fishing industry with better access to both
fishing grounds and markets. Our sport and recreational fishing industry
are better able to serve their tourist clientele. The vessels which si^jport
our in-bay and offshore natural gas industry are better served as a resiiLt
and of^rtunities for safe haven of all types of vessels is ircre readily
available in the event of inpending storms.

Proposals for a major restructuring of funding of flood control projects
concerns us greatly. In that you cannot separate those structures that are
provided for flood control and their iitpact upon the navigations systems,
they go hand in hand.

Last year the port ccnmunity was bouyed by the fact that President Clinton
acknowledged the existence of a dredging crisis within the United States and
established a Federal Interagency Task Force to find a solution to that
crisis. Today we are dismayed. The Task Force Report has been published.
It resolves none of the issues but articulated 18 new reccnmendations that
will require more study and more time vitnle our industry suffers study
gridlock.

We were bouyed when the Department of Transportation began to propose the
establishment of a true national transportation system vMch included
waterways and ports as a key element. Again, having reviewed the Department
of Transportation working p^)er on the criteria for identifying the National
Transportation System, we are dismayed in that this National Transportation
System would address only a 70 to 80 percent of our waterbome cargo and
potentially only twenty percent of the inland waterway systems.

There are nany other similar issues vdaich leads us to believe that there is
a significant threat to the continuing viability of the U. S. Inland
Waterway Systen and the deep water ports \Anjch are so essential to the
ccnpetitiveness of the U. S. econcny in the international market place.

In closing we appreciate the opportunity to again appear before this group
to voice our support of the Corps of Engineers funding requirements for
Fiscal Year 1996 and to inplore that you take the lead in educating those
who have a limited or false understanding of the need for a joint federal,
state and local role in the funding and the success of our navigation

- 3 -



transpartation system.

Ilie Alabana State Dcxrks Dq>artinent respectfully requests that this statement
be incorpcjrated in and made a permanent part of the record of proceedings of
these hecurings.



SD^HMEOT OF

J. EDGAR BRISEER
VICE CBAIRMAN, PGRT & VIATERNAXS 73WSK FOBCE
MOBILE ARE21 CHAIGER OF CXMIERCE
AL



THE HOUSE SUBOCMCnTEX: GN APPROPRIATIONS FOR
E3IERS3f AND WATER DEVELOPMENT
D. C.



MARCH 21, 1995



10



This statement is presented on behalf of the over 2,400 business menbers of
the Mt±)ile Area Chanber of Ccninerce in support of the f isceil year 1996
budget requirenents associated with the waterways projects in the Mcbile



Our Port & Waterways Task Force is ccnprised of all segments of the maritime
camunity in the Port of Mobile. Menbers include pilots, tug and to^4x>at
operators, shipping agents, marine suppliers, stevedores and terminal
operators. We feel that our task force is very representative of the marine
interests in our port area.

The vital benefits of our port in Mcbile are recognized throughout our
connunity and the region, and we are extremely grateful for efforts of the
Corps of Engineers in the conpletion of deepening our channel to 45 feet and
their ongoing efforts in having our inner harbor once again maintained to
its full project depth and width.

Of continuing concern is the necessity to maintain the authorized draft at
the Port of Mobile in its role in the movanent of international ccnmerce as
well as the port's vital role in the area's econoty. Of particular
iirportance is the afprcpriation request by the U. S. Amy Corps of Engineers
for $17,780,000 for the operation and maintenance in our Mcbile harbor.

We also request that funding be provided for the following activities in the
local area.



11



A. Bayou La Batre Channel (O&M) $ 455,000

B. Bayou I^ Batre Channel (Construction) $1,000,000

C. Bayou Coden (O&M) $ 231,000

D. The portion of the Gulf Intercoastal

Waterway in our area (O&M) $3,172,000

E. Dai:?jhin Island Bay (O&M) $ 252,000

F. Dog & Fowl Rivers (O&M) $ 505,000

However, we are concerned about the President's proposal to cease the
cperation and maintenance funding for shallow draft harbors that do not
contribute to the harbor Maintenance Fund and certain shallow draft
channels. If enacted, these prc^xssals would have a detrimental economic
effect on offshore oil and gas develc^ment, the comnercial seafood industry
and water related tourism. The impacts would be national in scope-not just
local.

We have furnished a statement of sufport to our friends at the Warrior-
Tcmbi^aee Development Associatioai and the Coosa Alabama River Inprovenent
AssociaticHi, Inc. and would request that edl consideraticMi possible be given
to approving the operations and annual nmntenance expropriations for fiscal
year 1996 Corps budget requests for those projects.

We appreciate and thank you for the opportunity to present this statement to
the Ccnmittee in support of fiscal year 1996 budget cLllocatioais as stated
above. We respectfully request that this statement be included and nade a
part of the permanent record of these hearings.



12

Tuesday, March 21, 1995.

TENNESSEE VALLEY AUTHORITY AND CORPS OF
ENGINEERS PROGRAMS

WITNESSES

JANICE L. JONES, EXECUTIVE DIRECTOR, TENNESSEE RIVER VALLEY
ASSOCIATION, TRVA

DAVID L. NICHOLS, TRVA PRESIDENT, MAYOR, CITY OF lUKA, MIS-
SISSIPPI

Mr. Bevill. Next, we have Ms. Janice Jones, the Executive Di-
rector of the Tennessee River Valley Association.

Ms. Jones. Grood morning, Mr. Chairman, and Congressman Be-
vill. It is a pleasure for us to be here with you again today.

I am Janice Jones, Executive Director of the Tennessee River
Valley Association, a nonprofit, nonpartisan economic development
organization, serving the Tennessee Valley Region.

Appearing with me today is our TRVA President, David Nichols.
David is a CPA and also Mayor of luka, Mississippi. We have a
number of folks with us in the audience.

Mr. Chairman, as you know, this association supports the Ten-
nessee Valley Authority. We feel like it is vital to the people of the
Tennessee Valley Region and we humbly ask that this committee
support the President's suggested budget for fiscal year 1996.

We understand the problems that we are facing in this country
with money, so we would like to highlight three things that fall
under TVA budget that we feel plays a vital economic role, not just
as waterway projects or other things, but has tremendous economic
impact on the valley.

One is the Pickwick Channel Modification Project. We have men-
tioned this to you over the years, and we feel very, very strongly,
we are very happy to report that during fiscal year 1995, beginning
in July, TVA has made a commitment to begin removing the under-
water rock ledge below Pickwick Lock and Dam. We have had a
number of barge groundings at this location.

Fortunately, there have been no groundings that involved haz-
ardous cargoes that would have sustained a leak. But we are sit-
ting on a time bomb. We are delighted to be able to look at getting
this project started in July. It would be finished in December;



Online LibraryUnited States. Congress. House. Committee on ApproEnergy and water development appropriations for 1996 : hearings before a subcommittee of the Committee on Appropriations, House of Representatives, One Hundred Fourth Congress, first session (Volume Part 7) → online text (page 1 of 98)