Order Code RS20924
Updated January 22, 2002
CRS Report for Congress
Received through the CRS Web
Coast Guard Legislation in the 107th Congress
Martin R. Lee
Specialist in Environmental Policy
Resources, Science, and Industry Division
Summary
In the 107th Congress, the Coast Guard Authorization Act of 2001, House-passed
H.R. 1699, would have authorized the agency’s programs for FY2002. Later, the House
passed H.R. 3507 on December 20, 2001, the Coast Guard Authorization Act for
FY2002. The House has also passed H.R. 1099, Coast Guard Personnel and Maritime
Safety Act, containing various personnel, maritime safety, advisory group, and
miscellaneous provisions. S. 951, reported (S.Rept.107-89) on October 31 by the
Senate Commerce, Science, and Transportation Committee, contains authorizations for
FY2002. Another bill, H.R. 2481, the Omnibus Maritime Improvement Act of 2001,
was reported (H.Rept. 107-243) by the House Committee on Transportation and
Infrastructure on October 16, 2001, and sequentially referred to the House Committee
on Armed Services. It contains numerous provisions on Coast Guard operations and
activities. Senate-passed S. 1214 would establish a seaport security program. P.L. 107-
20 (H.R. 2216), the FY2001 emergency supplemental appropriations bill, increased
FY2001 Coast Guard funding by $92 million. A terrorism FY2001 supplemental of
September 21, 2001, P.L. 107-38, included $18 million for the recall of Coast Guard
reservists. For FY2002 funding, Congress has approved P.L. 107-87, the DOT
appropriations bill which contains $5.03 billion for the Coast Guard. Congress also
included in the Emergency Terrorism Supplemental, P.L.107-118 ( H.R. 3338, Division
B) an additional $209 million for Coast Guard activities following September 11.
Introduction
Congress generally authorizes the programs of the U.S. Coast Guard for 2-year
periods, and appropriates annually in the Department of Transportation bill.1 In the 106th
Congress, both bodies passed authorizing legislation, but the conference was not
completed by the end of Congress. An FY2002 authorization was passed June 7, 2001 by
the House. The House passed under suspension another FY2002 authorization bill H.R.
3507 on December 20, 2001. It would authorize Coast Guard programs at $5.9 billion.
1 For a discussion of FY2002 appropriations, see CRS Report RL31008, Appropriations for
FY2002: Department of Transportation and Related Agencies.
Congressional Research Service ˜ The Library of Congress

---

CRS-2
Another bill, H.R.1099, the Coast Guard Personnel and Maritime Safety Act, has already
passed the House and has been referred to the Senate. A Senate authorization bill, S. 951,
introduced May 24, 2001, would authorize Coast Guard programs at $5.2 billion. It was
reported October 31, 2001 (S.Rept. 107-89) by the Senate Committee on Commerce,
Science, and Transportation. Another House bill, H.R. 2481 reported (H.Rept 107-243)
on October 16, 2001 by the Committee on Transportation and Infrastructure, includes
numerous provisions on Coast Guard operations.
The Coast Guard is a multi-function agency with a mission to protect people, the
environment, and U.S. economic interests in coastal and ocean waters. For a full
description of responsibilities, see [http://www.uscg.mil/services.html]. Establishment of
the U.S. Economic Zone to 200 miles seaward and the related geographic expansion of
U.S. responsibilities to deepwater greatly transformed the Coast Guard’s operations.
Increased duties related to high seas illegal drug trafficking and immigration have added
to the agency’s obligations and increased the complexity of the issues it faces. Key acts
included the 1998 Western Hemisphere Drug Elimination Act (P.L. 105-277, title VIII ),
the Anti-Drug Abuse Acts of 1988 (P.L. 100-690), and the Maritime Drug Law
Enforcement Act (P.L. 99-570). Congress continues to be concerned with how the agency
is responding operationally to these new demands and managing plans to replace many
of its aging vessels and aircraft. Increased responsibilities since September 11 have
elevated this concern.
Coast Guard Authorization Legislation for FY2002
Legislation passed by the House and Senate in the 106th Congress, H.R. 820, would
have authorized the programs for FY2000 and FY2001, but conference action was not
completed by the end of the Congress. House-passed H.R. 3507 and Senate-reported S.
951 are now the main FY2002 reauthorizations bills. Table 1 shows the major differences
in their proposed authorization levels.
Following May 3, 2001 hearings the House Transportation and Infrastructure
Committee’s Subcommittee on Coast Guard and Navigation ordered H.R. 1699 reported.
The full committee ordered the bill reported on May 16, 2001; the House passed it June
7 . That bill authorize a total of $5.3 billion for all Coast Guard programs in six major
accounts. The House later passed, under suspension, H.R. 3507 which would authorize
Coast Guard programs at $5.9 billion for FY2002. A similar Senate bill, S. 951, would
authorize $5.2 billion, and was reported October 31 by the Senate Committee on
Commerce, Science, and Transportation (S.Rept. 107-89). Table 1 shows their
recommended authorization levels compared to FY1999, the last year for which programs
were authorized.
Operations and Maintenance. H.R. 3507 as passed by the House would
authorize Coast Guard operation and maintenance activities at $4.2 billion for FY2002.
$623 million of this is authorized to be available for domestic maritime homeland security.
S. 951 would authorize this account at $3.6 billion and does not specify an allocation for
domestic maritime security.

---

CRS-3
Table 1. Major Coast Guard Activities Authorized
(in billions of dollars)
FY1999
FY2002
FY2002
Account
(last year
H.R. 3507, as
S. 951, as
authorized)
passed
reported
Operation and Maintenance
2.854
4.204
3.633
Acquisition and
0.510
0.717
0.669
Construction
Research, Development,
0.018
0.022
0.022
Test, Evaluation
Retired Pay
0.692
0.876
0.876
Alteration of Bridges
0.026
0.016
0.016
Environmental Compliance
0.026
0.017
0.017
TOTAL Authorization
4.126
5.854
5.223
* Totals may not add due to rounding.
Acquisition, Construction, Improvements. House-passed H.R. 3507 authorize
Coast Guard acquisition activities, construction and capital improvements at a FY2002
level of $717.8 million. The Senate bill’s level is $669.0 million.
For FY2002, H.R. 3507 authorizes $58.5 million for domestic maritime homeland
security vessels and detection equipment. It also authorizes $338 million from this account
for implementing Phase II of the Deepwater Capabilities Replacement Project, which seeks
to enhance the Coast Guard’s abilities on the high seas. This is a critical year for this $10
billion project since the first contracts for actual construction will be awarded in the
Second Quarter of FY2002. The Senate bill does specify allocations for these activities.
Other Portions of the Authorization. H.R. 3507, as passed, would authorize
Coast Guard research, testing, development and related activities at a $21.7 million for
FY2002; S. 951, at $22 million. For mandatory retirement benefits, the authorized amount
is $876 million under both House and Senate bills for FY2002. Under both bills, alteration
of bridges would be authorized at $16 million; for complying with environmental laws and
performing environmental restoration activities, H.R. 1699 and S. 951 levels are $17.0
million FY2002.
Military Strength and Training. The House bill would increase the authorized
number of active-duty personnel from 38,038 previously to 44,000 in FY2002. The Senate
bill would set the level at 40,000.
FY2002 Coast Guard Funding
The Coast Guard appropriation is constrained, and its management challenged, by
increased responsibilities for drug and illegal immigrant interdiction on the high seas as
well as by its aging water craft and aircraft. Enhanced responsibilities in the wake of

---

CRS-4
September 11th have greatly added to Coast Guard duties. The Administration requested
$5.056 billion for Coast Guard funding in FY2002. Compared to the $4.511 billion
appropriated in FY2001, the FY2002 request was $545.2 million, or 12% more. The
House approved $5.03 billion (H.R. 2299; H.Rept. 107-108), $60 million less than
requested. In addition to these discretionary funds, there are mandatory funds of $64
million for State Boating Safety grants and $61.2 million from the Oil Spill Liability Trust
Fund. The Senate approved $5.102 billion (H.R. 2299; H.Rept. 107-108, amended by S.
1178, in the nature of a substitute). P.L. 107-87 (H.Rept. 107-308) included $5.03 billion
for the Coast Guard. This is marginally less than the Senate-approved amount, marginally
more than the House amount, and $25.3 million, or 0.5% less than requested.
P.L. 107-20 (H.R. 2216), the FY2001 emergency supplemental appropriations bill,
increased FY2001 Coast Guard funding by $92 million. A terrorism FY2001 supplemental
of September 21, 2001, P.L. 107-38, included $18 million in additional FY2001 funds for
the recall of Coast Guard reservists. An October 16, 2001 OMB request sought $203
million, including $116 million to support national defense and homeland security
functions, $52 million to provide port and homeland security, $33 million for expenses to
conduct necessary port vulnerability assessments, expand and support port security units
and increase maritime threat assessment capability, and $2 million for support costs for
Coast Guard chemical and biological strike teams. House-passed H.R. 3338, the Defense
Appropriations bill in Division B, the FY2002 Supplemental, would have increased the
Coast Guard's operating appropriation by $144.9 million, funds directly in support of
September 11-related activities ; the Senate-reported substitute (S.Rept. 107-109) included
$273 million. On December 7, the Senate Committee substitute was ruled out of order by
the Chair. The same day the Senate passed the Byrd /Stevens/Inouye amendment to H.R.
3338, which included $285.35 million for the Coast Guard in Division B, Transfers from
the Emergency Response Fund Pursuant to P.L. 107-38. In this bill, the Senate included
roughly $70 million in additional funds over the President’s request, citing the strain on
regular Coast Guard operations such as drug interdiction, fisheries enforcement, search
and rescue. The Senate version also includes about $51 million to cover pay and benefit
costs associated with the National Defense Authorization Act, which would impose a
budget shortfall on the Coast Guard, a problem that has occurred in earlier fiscal years too.
In addition, the Senate version includes about $22 million for port security. The final
version, P.L. 107-118, included $209 million for Coast Guard terrorism-related activities.
The FY2002 budget request sought to allow the Coast Guard to continue its
activities against drug smuggling and recapitalize aircraft and vessel fleets. The requested
$3.38 billion ($197.8 million, or 6% more than FY2001) would have been allocated to
operation and maintenance of a wide range of ships, boats, aircraft, shore units, and aids
to navigation. The House approved $3.38 billion for operation and maintenance; the
Senate approved $3.43 billion; and the conferees $3.38 billion. There had been special
concern about the adequacy of the the proposed level of funding on Coast Guard
operations, and even more concern after September 11. Another major component of the
request would assign additional funds for acquisition, construction, and improvement; the
Administration sought $659.3 million, $245.2 million or 59% more than current year
funding. The House approved $600 million, $59.3 million less than requested; the Senate
approved $669.3 billion; and, the conferees $636.4 million. For complying with
environmental regulations and cleaning up contaminated Coast Guard sites, the budget
sought and conferees approved $16.9 million, the same as current year funding. The $15.5
million requested and approved for altering bridges would be the same as current year

---

CRS-5
funding. The $21.7 million approved by the House and Senate for research and
development was the same as current year funding and the amount requested, and slightly
more than the $20.2 million approved by the conferees. The allocation approved for
retirement pay will be $876.3 million, the same as requested and 13% greater than
FY2001. The Administration requested, and conferees approved, $83.2 million to train,
support, and sustain a ready military Selected Reserve Force of 8,000 members for direct
support to the Department of Defense. Other Coast Guard requested funding includes $50
million for spill clean-up and initial damage assessment, available without further
appropriation from the Oil Spill Liability Trust Fund.
A prominent issue has been the Coast Guard’s management of a major planned
replacement of aging and outmoded high seas vessels and aircraft, with a special emphasis
on improving the Coast Guard’s capabilities on the high seas or in deep waters. Only
planning and analysis funds were included for FY1998 through FY2001. Key dates include
July 2001, when industry teams are supposed to submit their design and construction
proposals, and the second quarter of FY2002, when the Coast Guard will award the
contracts to begin the replacement program. For FY2002, $338 million was requested; the
final version included $320 million. Actual purchases of nearly $10 billion are anticipated
over a 20-year period beginning in FY2002. In approving the bill, Congress included
legislative language requiring a capital investment plan for the Coast Guard. CRS Report
98-830, Coast Guard Integrated Deepwater System: Background and Issues for
Congress, discusses the issues associated with the program.
Other Legislation
Coast Guard Personnel and Maritime Safety Act. On March 22, 2001, the
House passed under suspension of the rules, H.R. 1099, the Coast Guard Personnel and
Maritime Safety Act of 2001. It includes several personnel provisions in title I, five
provisions on maritime safety in title II, provisions renewing six advisory groups in title
III, and twelve miscellaneous provisions. Noteworthy among the miscellaneous provisions
is section 420 requiring vessels to notify the Coast Guard before entering the territorial
sea, whereas they are currently required to notify before approaching a port.
Omnibus Maritime Improvement Act.. H.R. 2481was reported (amended)
October 16, 2001 by the Committee on Transportation (H.Rept. 107-243) and sequentially
referred to the Committee on Armed Services. It includes certain housing and various
safety provisions.
Port and Maritime Security Act. S. 1214, reported September 14, 2001, by the
Committee on Commerce, Science, and Transportation (S.Rept.107-64.), was passed
December 20, 2001. It would amend the 1936 Merchant Marine Act amend the Merchant
Marine Act, 1936, to establish a program to ensure greater security for United States
seaports.
Key Policy Issues: New Pressures and the Coast Guard’s
Response
At the same time that the Coast Guard has assumed significantly increased
responsibilities for high seas enforcement, its deepwater-capable cutters and aircraft are

---

CRS-6
aging and increasingly inadequate. To address this, the Coast Guard launched a major
acquisition program called the Integrated Deepwater System which would require an
estimated $9.6 billion acquisition program over 20 years beginning in FY2002. CRS
Report 98-830, Coast Guard Integrated Deepwater System: Background and Issues for
Congress, describes the state of the Coast Guard fleet, Coast Guard’s plans and some of
the issues associated with the deepwater program. In May 3rd testimony before the House
Subcommittee, the General Accounting Office remains critical of the Coast Guard’s
approach to this project. The conferees have approved $320 million for the deepwater
program and included bill language prohibiting obligation of these funds until the
Department of Transportation satisfies several criteria. Additional bill language requires
that future budget submission include more detail and estimate obligations for 5 years.
While this ambitious replacement plan challenges the Coast Guard, everyday
operations -- already challenged before September 11-- appear to be even more so now.
To support current operational demands, the Coast Guard has had to shift funds from
other priorities and estimates that drug interdiction and fisheries enforcement have been
reduced by 25% or more since September 11. The Coast Guard Commandant has said that
“this increased level of security is not sustainable with our current level of assets.” At a
December 6th House Transportation and Infrastructure, Subcommittee on Coast Guard and
Navigation hearings, Members, the Secretary of Transportation, and the Commandant of
the Coast Guard expressed concern over the Coast Guard’s ability to balance all its
responsibilities. Supplemental funding may address some of the immediate shortfalls, but
long-term strategic planning and budgeting appears necessary in light of what the
Commandant calls the “new normalcy.” Key to the Coast Guard’s enhanced role in
national security will be how its functions, and is funded, in the nation's new homeland
security effort. Such bills as H.R. 1158, the National Homeland Security Agency Act, and
S. 1534, the Department of National Homeland Security Act, propose broad governmental
reorganizations which include the Coast Guard.

References
Congressional Research Service. Integrated Deepwater System: Background and Issues
for Congress. CRS Report 98-830.
General Accounting Office. Coast Guard Actions Needed to Mitigate Deepwater Project
Risks. GAO-1-659T. May 3, 2001. 17p.

---