Calendar No. 1153 93D CONGR'ESSB RE..... 2d Session fSENATE No. 93-1217 DEEPWATER PORT ACT OF 1974 JOINT REPORT OF THE COMMITTEES ON COMMERCE; INTERIOR AND INSULAR AFFAIRS; AND PUBLIC WORKS UNITED STATES SENATE TOGETHER WITH ADDITIO-AL VIEWS TO ACC03PANY S. 4706 OCTOBER2, 1974.-Ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 39-142 WASHINGTON t 1974 COMMITTEE ON COMMERCE WARREN 0. MAGNUSON, Washington, Chairman JOHN 0. PASTORE, Rhode Island NO RRIS COTTON, New Hampshire VANCE HARTKE, Indiana JAMES B. PEARSON, Kansas PHILIP A. HART, Michigan ROBERT P. GRIFFIN, Michigan HOWARD W. CANNON, Nevada HOWARD H. BAKER, JR., Teaness RUSSELL B. LONG, Lonisiana MARLOW W. COOK, Kentarky FRANK E. MOSS, Utah TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina J. GLENN BEALL, JR., Maryland DANIEL K. INOUYE, Hawaii JOHN V. TUNNEY, California ADLAI E. STEVENSON III, Illinois FREDEsCKJ. LORDAN,StafDirector MICHAELPaRTScUN, Chief Cannel JAES P. WALSH,Staff Connet JOHNF. HOaSEY,Professional SiaffMcniber ARTHURPANxoPr, Jr., Minority Staff Director EARn E. COSTELLO,Minority ProfesionalStaff Metaber COMMITTEE ON INTERIOR AND INSULAR AFFAIRS HENRY M. JACKSON, Washington, Chaiman ALAN BIBLE, Nevada PAUL J. FANNIN, Arizona FRANK CHURCH, Idaho CLIFFORD P. HANSEN, Wyoming LEE METCALF, Montana MARK 0. HATFIELD, Oregon J. BENNETT JOHNSTON, JR., Louisiana JAMES L. BUCKLEY, New York JAMES ABOUREZK, South Dakota JAMES A. McCLURE, Idaho FLOYD K. HASKELL, Colorado DEWEY F. BARTLETT, Oklahoma GAYLORD NELSON, Wisconsin HOWARD M. METZENBAUM, Ohio JERRYT. VERKLER,SaffDiretor WI.tao J. VAR NaS, Chie" Canners C. SaZANa REED,Pmofesaional Staff Membr D. MICHAELHARVEY, Spetiat CoUnd HARRISONLOosm, Minoritp Conned ROIA SKEEN,Minority Staff Asiatant (m) III COMMITTEE ON PUBLIC WORKS JENNINGS RANDOLPH, West Virginia, Chairman EDMUND S. MUSKIE, Maine HOWARD H. BAKER, JR., Tennessee JOSEPH M. MONTOYA, New Mexico JAMES L. BUCKLEY, New York MIKE GRAVEL, Alaska ROBERT T. STAFFORD, Vermont LLOYD BENTSEN, Texas WILLIAM L. SCOTT, Virginia QUENTIN N. BURDICK, North Dakota JAMES A. McCLURE, Idaho DICK CLARK, Iowa PETE V. DOMENICI, New Meino JOE BIDEN, Delaware M. BARRYMEYER, Chief Counsel and Chief Clerk BAILEy GUAo, Minority Clerk; RICHARDA. HELLMAN,Minoritp Counsel LEON G. BILLINOS,Senior Staff Member pFnLP T. CUMMINGS,Assistant Chief Counse JOHN W. YAGO, JR., Assistant Chief Clerk HAROLDH. BAYMAN, ANN GARRABRANT,WESLEY F. HAYDEN, LARRYMEYERS, SALLYW. WALKER, Professional Saff emer SPECIAL JOINT SUBCOMMITTEE ON DEEPWATER PORTS COMMITTEE ON COMMERCE WARREN 0. MAGNUSON, Washington TED STEVENS, Alaska RUSSELL B. LONG, Louisiana J. GLENN BEALL, JR., Maryland ERNEST F. HOLLINGS, South Carolina COMMITTEE ON INTERIOR AND INSULAR AFFAIRS HENRY M. JACKSON, Washington CLIFFORD P. HANSEN, Wyoming LEE METCALF, Montana MARK 0. HATFIELD, Oregon I. BENNETT JOHNSTON, JR., Louisiana COMMITTEE ON PUBLIC WORKS MIKE GRAVEL, Alaska JAMES L. BUCKLEY, New York LLOYD BENTSEN, Texas WILLIAM L. SCOTT, Virginia JOE BIDEN, Delaware EXPLANATORY NOTE This is a joint report of the Committees on Commerce, Interior and Insular Affairs, and Public Works. As discussed in Chapter IV the Deepwater Port Act of 1974 is the result of over a year of deliberation by the Senate Special Joint Sub- committee on Deepwater Ports. The Subcommittee consisted of members from each of the three full committees sharing jurisdiction over this issue. By agreement of the respective Chairmen the Deep- water Port Act of 1974 has been reported to the Senate by the three full Committees in the same form as it was reported from the Sub- committee. As discussed in Chapter V, the reported bill is accompanied by amendments that will be separately offered on the floor. Statements of the intent of the reporting Committees throughout this report are subject to the reservations expressed by each full Committee in Chapter V. I CONTENTS Page I. Purpose and description 1 1. Federal coordination - -- 2. Preference ......................... 2 3. State coordination - .......................... --- 2 4. Liability - 3 5. Applicable law - - - ---- - - - - - - - - - - - - -- 4 6. Additional provisions ------------------------------------- 4 7. Procedural requirements. .. .................--- -.-.- 4 II. Background and need ----------------------------------------- 5 III. Major issues------------- 7 1. International legal basis --------------------------------- 7 2. Federal administration organization ---------------------- 8 3. State role --------------------------------------------- 10 4. Competitive impacts of deepwater port development ...... 13 5. Liability ---------------------------------------------- 15 WV.Legislative history - - - - - - - - - - - - - - - - - - - - -- 17 V. Committee recommendations ------------------------------------ 19 1. Com merce --------------------------------------------19 2. Interior and Insular Affairs ------------------------------ 28 3. Public Works ............... 30 VI. Section-by-Section Analysis ----------------------------------- 34 VIL Cost --------------------------------------- 61 VIII. Tabulation of votes cast in committee --------------------------- 62 IX. Changes in existing law ---------------------------------------- 63 X. Executive communications ....-- 63 XI. Additional views: Additional views of Mr. Buckley ----------------------------- 95 Additional views of Messrs. Fannin, Hansen, McClure, and Bartlett .-- -.. - 97 Additional views of Mr. McClure --------------------------- 103 Additional views of Mr. Stevens ---------------------------- 105 (vii) Calendar No. 1153 93D CONGRESS I SENATE REPORT 2d Session f I No. 93-1217 DEEPWATER PORT ACT OF 1974 OCTOBER 2, 1974.-Ordered to be printed Mr. MAGNUSON, on behalf of the Committees on Commerce; Interior and Insular Affairs; and Public Works, submitted the following JOINT REPORT together with ADDITIONAL VIEWS [To accompany S. 5.] The Committees on Commerce; Interior and Insular Affairs; and Public Works report the bill (S. 5.) to regulate commerce, promote efficiency in transportation, and protect the environment, by establish- ing procedures for the location, construction, and operation of deep- water ports off the coasts of the United States, and for other purposes, and recommend that the bill do pass. I. PURPOSE AND DESCRIPTION The purpose of the Deepwater Port Act of 1974 is to establish a licensing- and regulatory program governing offshore deepwater port development beyond the territorial limits and off the coast of the United States. Such facilities would be used to transfer oil and natural gas supplies transported by tanker to and from States of the United States. 1. FEDERAL COORDINATION The Deepwater Port Act of 1974 authorizes the Secretary of the Department in which the Coast Guard is operating (currently the Department of Transportation) to issue licenses to own, construct and operate deepwater ports. The Secretary exercises this authority in consultation with other Federal agencies having jurisdiction or expertise over various aspects of deepwater port development. Before a license is issued, the Secretary must provide an opportunity for all interested Federal agencies including the Department of the Interior, the Department of State, the Environmental Protection Agency, and the Corps of Engineers to comment on the effect issuance of a license would have on the laws and programs they administer. Such agencies would also assure that issuance of a license meets the requirements of the laws they administer. The Federal Trade Commission and the Attorney General are required to comment on whether issuance of a license would adversely affect competition, restrain trade, promote monopolization, or other- wise create a situation in contravention of the antitrust laws. It is intended that the Secretary will give serious consideration to the views of the Federal Trade Commission and the Attorney General in making his determination to approve or disapprove an application. In addition, the Administrator of the Environmental Protection Agency may veto the issuance of a license if he finds that deepwater port development, as proposed in an application, would result in violation of the Clean Air Act, the Federal Water Pollution Control Act, or the Marine Protection, Research and Sanctuaries Act. The Secretary, in coordination with all other Federal agencies, must also prepare a detailed environmental impact statement to satisfy the requirements of section 102(2)(c) of the National Environ- mental Policy Act. 2. PREFERENCES Section 5(d) of the Act requires the Secretary to establish a geo- graphic application area encompassing the site of a deepwater port as proposed in an application and to publish a description of the area, giving time for competing applications to be filed. Section 5(h) requires the Secretary first to consider competing appli- cations within any application area on the basis of which will "best" serve the nation.'Such a consideration shall include a comparison of such factors as the environmental, technological, economic and timing aspects of the various applications. If the Secretary finds that competing applications are relatively equal under that test, then the Secretary is required to give preference to an application from a State or local governmental unit. In the absence of an application by such a governmental entity, the Secretary must then give an applicant who is independent of the petroleum or natural gas producing, refining, or marketing industry preference over the application of any other person. 3. STATE COORDINATION