U.S. House passes defense authorization act with key maritime provisions

As Congress approaches its annual August recess, both the House and Senate are attempting to complete work on a substantial COVID-19 relief package as well as regular legislative business. All legislators are mindful that very little time remains. For that reason, "must pass" legislation becomes an attractive vehicle to move smaller legislative initiatives through the Congress.

One such "must pass" bill is the annual National Defense Authorization Act (NDAA), which reauthorizes the Pentagon's programs for Fiscal Year 2021. The House passed its version of the NDAA on July 21st, last week. Attached to the massive bill were several provisions of interest to the Great Lakes maritime industry as described below.

The Senate also enacted its own version of the NDAA legislation last week. The two differing versions will now go to a House-Senate conference committee to hammer out a final, compromise version by the end of the year.

Coast Guard Authorization Act of 2020

Congress typically enacts legislation every two years to modify and update Coast Guard programs. Both the House and Senate had earlier passed their own versions of the Coast Guard Authorization Act and had recently negotiated a compromise final version. That final version was attached to the NDAA in the House last week. Included within the Coast Guard bill are the following provisions.

Great Lakes Pilotage Advisory Committee Reauthorization

The legislation includes language to reauthorize the Great Lakes Pilotage Advisory Committee (GLPAC) for another ten years. Its current 10-year authorization expires on September 30, 2020. The provision will extend the committee's existence until September 30, 2030. The GLPAC is a Congressionally chartered federal advisory committee consisting of seven members appointed by the Secretary of Homeland Security. The seven members include the presidents of the three U.S. Great Lakes pilot associations, an individual representing the interests of vessel operators, another representing the interests of ports, and another representing the interests of shippers. A seventh member must be approved by the other six, and for this reason, the seat has often been vacant.

The provision will also modify the committee's membership to better represent system stakeholders. In this regard, it adds an eighth member representing the interests of Great Lakes maritime labor. Further, it reforms the manner in which non-pilot representatives are appointed. Currently, the Secretary can appoint anyone; the new rules will require the Secretary to appoint representatives from among candidates nominated by each industry sector (vessel operators, ports, shippers, labor). The membership reforms were negotiated cooperatively between AGLPA, pilot associations and the ILA.

New Great Lakes Icebreaker

The Coast Guard bill also includes an important provision to authorize construction of a new heavy icebreaker for the Great Lakes at a cost of $160 million. Congress had previously authorized the vessel's construction in 2018, but had never authorized a specific level of funding. Despite the earlier authorization and specific Congressional appropriations to launch the acquisition process, the Coast Guard has resisted moving forward. The language requires the agency to deliver an acquisition plan to Congress within 30 days.

AGLPA supports construction of a new heavy icebreaker and notes that six of the Coast Guard's nine icebreaking cutters on the Great Lakes are more than 30 years old and have ongoing maintenance issues.

Port Emergency Relief

Also included in the NDAA is a provision to stand up a new emergency relief program at the U.S. Maritime Administration (MARAD). The "Maritime Transportation System Emergency Relief Program" would create a new grant program within MARAD to provide emergency funding to port agencies and private companies involved in the maritime transportation system during natural disasters or national public health emergencies (such as the COVID-19 pandemic). Federal assistance could be used for infrastructure repair, equipment replacement, operating costs and debt service. There is no non-federal match requirement for these grants. It is important to note that this legislation is a program authorization. It creates, defines and sets the rules for the new program. It does not include any actual funding. Such funding would have to be provided later by the House and Senate appropriations committees.

The port relief provision will now move to a House-Senate conference committee working to hammer out a final version of the NDAA legislation. The Senate version of the NDAA does not contain a similar provision.