November 28, 2018

The U.S. House of Representatives this week agreed to the Senate-passed version of the Coast Guard reauthorization bill, the Frank LoBiondo Coast Guard Authorization Act of 2018. The bill now heads to the President’s desk.

The legislation, which the Senate passed two weeks ago, authorizes funding and end-of-year strength levels for the Coast Guard. The reauthorization also includes provisions relating to the Coast Guard’s fleet recapitalization, new rules for vessel discharge, and a complete recodification of the Coast Guard title of the United States Code (title 14).

Though the House passed the reauthorization by voice vote, the bill had previously been held up in the Senate over disagreement on ship ballast. The dumping of ballast in coastal ports and the Great Lakes is often blamed for spreading invasive species. A previous version of the bill would have put the Coast Guard in charge of regulation and exempted ballast from the Clean Water Act, which environmentalists said would result in weaker rules. The final version puts the onus on the EPA to develop national, uniform, and environmentally sound standards.The bill directs the EPA to require “the application of the best conventional pollutant control technology” and “the use of best management practices to control or abate any discharge incidental to the normal operation of a vessel.”

As part of the compromise, the provision gives states a consultation role as the EPA develops those standards and the ability to enforce them once implemented, but does not allow states to adopt standards stronger than federal law (as some currently do). It was this preemption of state law that had some environmental groups continuing to oppose the bill, though Senate Great Lakes Task Force co-chairs Rob Portman (R-OH) and Debbie Stabenow (D-MI) said the EPA standards ““will help prevent pollution and ensure that that ballast water does not transport invasive species from one body of water to another along a vessel’s shipping route.”

Authorization of Appropriations. For FY19, the Senate-passed bill authorizes $7.914 billion for Coast Guard operations and maintenance not otherwise provided for, of which $16.7 million is specified for environmental compliance and restoration (previously a separate line-item in the U.S. Code) and $199 million is specified for Medicare-eligible retiree health care fund contributions to the Department of Defense (which is not mentioned in previous years’ authorizations).

Separately, $2.695 billion is authorized for the acquisition, construction, renovation, and improvement of aids to navigation, shore facilities, vessels, aircraft, and systems; this is in line with the FY18 enacted level and a 38.5% increase over FY17 levels. Additionally, $29 million is authorized for research and development. No money was authorized for the Coast Guard Reserve for FY19, though just under $115 million was authorized for FY18.

Authorization of Appropriations for U.S. Coast Guard, FY16-FY19 (Billions)

*$7.914 billion was authorized for operation and maintenance, of which $16.7 million was specified for environmental compliance and restoration and $199.36 million was set aside for Medicare-eligible retiree health care fund contributions to DOD

In addition to the Coast Guard, the bill authorizes roughly $28.5 million in FY19 for the Federal Maritime Commission, about one million more than in FY18.

Authorized Levels of Military Strength and Training. The Senate bill increases end-of-year strength for active duty personnel from 43,000 in FY18 to 44,500 in FY19. It also maintains current military training student loads:

• 2,500 student years for recruit and special training
• 164 student years for flight training
• 350 student years for professional training in military and civilian institutions
• 1,200 student years for officer acquisitions

Fleet and Infrastructure Recapitalization. The reauthorization bill authorizes up to $167.5 million to acquire three fast response cutters, in addition to the 58 cutters approved under the existing acquisition baseline; up to $267.5 million to fund acquisition, construction, rebuilding, or improvement of Coast Guard shoreside infrastructure; and up to $3.5 million for analysis and program development for improvements to, or replacement of, rotary-wing aircraft.

The bill directs the Commandant of the Coast Guard to report to Congress before certifying an eighth national security cutter as ready for operations on the cost and performance of different approaches to achieving different levels of operational employment for its national security cutters. Senate Subcommittee on Oceans, Atmosphere, Fisheries & the Coast Guard Chairman Dan Sullivan (R-AK) previously quizzed Rear Admiral Michael Haycock, Assistant Commandant for Acquisition for the Coast Guard, as to whether the increased capability of the new cutters would be enough to make up for the fact that there will be fewer cutters in service after the recapitalization effort is complete.

It also requires the Commandant of the Coast Guard to submit a plan to replace or extend the life of the Coast Guard’s fleet of inland waterway and river tenders, as well as for the Bay-class icebreakers, including an analysis of the work required to extend the life of those vessels and a schedule for replacing them. The Coast Guard will replace a fleet of 35 small river tenders, barges, and construction tenders, many of which are nearing the end of their service lives.

On icebreakers, the Coast Guard may use funds for construction of a Great Lakes icebreaker at least as capable as the Coast Guard Cutter Mackinaw, and the agency must conduct an enhanced maintenance program on the Coast Guard Cutter Polar Star to extend its service life at least through 2025.