S. HRG. 108–842 PHASE–OUT OF SINGLE–HULL TANK VESSELS HEARING BEFORE THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS FIRST SESSION JANUARY 9, 2003 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PRINTING OFFICE 20–249 PDF WASHINGTON : 2006 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 08:49 Mar 03, 2006 Jkt 020249 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\WPSHR\GPO\DOCS\20249.TXT JACK PsN: JACKF SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED EIGHTH CONGRESS FIRST SESSION JOHN MCCAIN, Arizona, Chairman TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii TRENT LOTT, Mississippi JOHN D. ROCKEFELLER IV, West Virginia KAY BAILEY HUTCHISON, Texas JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine JOHN B. BREAUX, Louisiana SAM BROWNBACK, Kansas BYRON L. DORGAN, North Dakota GORDON SMITH, Oregon RON WYDEN, Oregon PETER G. FITZGERALD, Illinois BARBARA BOXER, California JOHN ENSIGN, Nevada BILL NELSON, Florida GEORGE ALLEN, Virginia MARIA CANTWELL, Washington JOHN E. SUNUNU, New Hampshire FRANK LAUTENBERG, New Jersey JEANNE BUMPUS, Republican Staff Director and General Counsel ROBERT W. CHAMBERLIN, Republican Chief Counsel KEVIN D. KAYES, Democratic Staff Director and Chief Counsel GREGG ELIAS, Democratic General Counsel (II) VerDate 0ct 09 2002 08:49 Mar 03, 2006 Jkt 020249 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\20249.TXT JACK PsN: JACKF C O N T E N T S Page Hearing held on January 9, 2003 ........................................................................... 1 Prepared statement of Senator Hollings ................................................................ 4 Statement of Senator Inouye .................................................................................. 2 Statement of Senator McCain ................................................................................. 1 Statement of Senator Nelson .................................................................................. 23 Statement of Senator Stevens ................................................................................ 2 Statement of Senator Sununu ................................................................................ 2 Statement of Senator Wyden .................................................................................. 78 WITNESSES Allegretti, Thomas A., President and CEO, the American Waterways Opera- tors ........................................................................................................................ 24 Prepared statement .......................................................................................... 26 Cowen, Robert N., Senior Vice President and Chief Operating Officer, Over- seas Shipholding Group, Inc. .............................................................................. 65 Prepared statement .......................................................................................... 67 Article dated January 8, 2003 from Lloyd’s List, entitled Spanish ban sends single-hull Elcano ship to U.S., by Brian Reyes .............................. 69 Letter dated January 31, 2003 to Hon. John McCain ................................... 75 Cox, Joseph J. President and CEO, Chamber of Shipping of America ............... 29 Prepared statement .......................................................................................... 32 Davies, Elaine F., Deputy Director, Office of Emergency and Remedial Re- sponse, Environmental Protection Agency ......................................................... 14 Prepared statement .......................................................................................... 15 Frick, G. William, Vice President for Industry Operations and General Coun- sel, American Petroleum Institute ...................................................................... 59 Prepared statement .......................................................................................... 61 Godfrey, Tom, President, Colonna’s Shipyard, Inc.; Chairman, Shipbuilders Council of America ............................................................................................... 35 Prepared statement .......................................................................................... 38 Keeney, Timothy R. E., Deputy Assistant Secretary of Commerce for Oceans and Atmosphere, Department of Commerce ...................................................... 8 Prepared statement .......................................................................................... 10 Pluta, Rear Admiral Paul J., Assistant Commandant for Marine Safety, Secu- rity and Environmental Protection, United States Coast Guard ..................... 4 Prepared statement .......................................................................................... 7 Rauta, Dragos, Technical Director, International Association of Independent Tanker Owners (INTERTANKO) ........................................................................ 46 Prepared statement .......................................................................................... 48 Sandalow, David, Executive Vice President, World Wildlife Fund ..................... 42 Prepared statement .......................................................................................... 44 APPENDIX Response to written questions submitted by Hon. John McCain to: Thomas A. Allegretti ........................................................................................ 85 Robert N. Cowen ............................................................................................... 98 Tom Godfrey ...................................................................................................... 86 Dragos Rauta .................................................................................................... 90 (III) VerDate 0ct 09 2002 08:49 Mar 03, 2006 Jkt 020249 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\20249.TXT JACK PsN: JACKF VerDate 0ct 09 2002 08:49 Mar 03, 2006 Jkt 020249 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 S:\WPSHR\GPO\DOCS\20249.TXT JACK PsN: JACKF PHASE–OUT OF SINGLE–HULL TANK VESSELS THURSDAY, JANUARY 9, 2003 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, DC. The Committee met, pursuant to notice, at 2:30 p.m. in room SR–253, Russell Senate Office Building, Hon. John McCain, Chairman of the Committee, presiding. OPENING STATEMENT OF HON. JOHN MCCAIN, U.S. SENATOR FROM ARIZONA The CHAIRMAN. Good afternoon. The Committee meets today to consider issues relating to the required phase-out of single-hull tanker vessels that carry oil in bulk, including calls by some in the international community to accelerate the deadlines for transition to double-hull tankers. Since the break-up and sinking of the PRESTIGE on November 19, 2002, Spain and France have taken unilateral action against single-hull tankers and the European Commission has adopted a new phase-out schedule for such tankers. As a result of those ac- tions, concerns have been raised about how those actions could, if adopted by the European Union and the International Maritime Organization, impact the international and domestic transportation of oil. The phase-out of single-hull tankers is not the sole solution to oil spills. Based on experiences here in the U.S., we know that oil spill prevention, response, and damage mitigation efforts necessitate a combination of things, including the phase-out of single-hull tank- ers, liability and insurance requirements, response preparation and coordination, and improved response technology. This combination is clearly represented in the Oil Pollution Act of 1990, commonly referred to as ‘‘OPA–90.’’ Since OPA–90 was enacted, there has been a significant decline in cargo oil spills. In 1990, 152,000 barrels of oil, the equivalent of 6.4 million gallons, were spilled in U.S. waters. By 2000, the vol- ume of oil spilled had fallen to 24,600 barrels. About 60 percent of all oil worldwide moves by oil tanker. The U.S. is currently responsible for one-quarter of total oil consump- tion, and in 2001 we imported 55 percent of our oil supply. Because so much oil and oil products move in and out of the United States and we know from experience that bad things can happen even to sound ships and barges, we must remain vigilant. It has been over 12 years since the enactment of OPA–90 and I hope that today’s hearing will be helpful in shedding light on what (1) VerDate 0ct 09 2002 08:49 Mar 03, 2006 Jkt 020249 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 S:\WPSHR\GPO\DOCS\20249.TXT JACK PsN: JACKF 2 has been accomplished and whether there is a need for any further action on our part to help prevent oil spills or to change our exist- ing policies along the lines of the European Community. Senator Inouye. STATEMENT OF HON. DANIEL K. INOUYE, U.S. SENATOR FROM HAWAII Senator INOUYE. Thank you very much, Mr. Chairman, and I wish to commend you for holding this hearing on this very impor- tant matter. Obviously, I am looking forward to assuming my posi- tion as Ranking Member on the Merchant Marine Subcommittee, at which time this issue and many others will be considered in the coming years. Thank you very much, sir. The CHAIRMAN.