Statement of Administration Policy: H.R. 1776 - Coast Guard Authorization Act of 1991

(SENT 7/16/91) AND House 7/17/91
(House Rules)
(Tauzin (D) Louisiana and 6 others)

The Administration opposes enactment of H.R. 1776 in its current form because its authorization levels are excessive and it contains several objectionable micromanagement provisions. The Administration would not object to enactment of H.R. 1776 if it were amended to:

— Authorize appropriations consistent with the FY 1992 Budget. The authorization levels in the bill exceed the Budget by $58 million.

— Specify, consistent with sound budgetary principles, that the long-term lease of land authorized by section 7 will be effective only if sufficient funds to cover the Federal Government's maximum current liability, (i.e., the first year's contract award plus amounts sufficient to cover the costs of a termination for convenience clause and other cancellation costs), are made available when the Coast Guard enters into the contract.

— Delete requirements that unnecessarily restrict the Coast Guard's ability to expend funds in the most cost effective manner. These requirements include (1) the expenditure of specific amounts to acquire new command and control aircraft and renovate the Coast Guard Cutter Mackinaw's sonar simulators; and (2) limiting the purchase of oil skimming equipment to equipment manufactured in the United States.

— Delete the provision repealing the two-year budget cycle for the Coast Guard. Such a repeal would eliminate the opportunity to achieve the efficiencies possible under two- year budgeting.

— Delete the requirement that the Department of Transportation seek reimbursement for certain Presidential protection services. These services have been determined to be temporary under the Presidential Protection Assistance Act.

— Delete sections 12 and 24, which would unjustifiably exempt certain named vessels from vessel safety requirements.

— Delete the designation of the Bordeaux Bridge as an obstruction to navigation. The Coast Guard has determined that this bridge is not an unreasonable obstruction to navigation within the meaning of the Truman-Hobbs Act.

— Repeal current statutory restrictions on contracting out activities by the Coast Guard. These restrictions unnecessarily limit the Coast Guard's ability to carry out its responsibilities.

— Delete section 21, which would establish a separate recycling program for the Coast Guard. Federal recycling activities, and the use of funds derived from recycling, would be more effectively addressed on a Government-wide basis.

Scoring for Purposes of Pay-As-You-Go

The Omnibus Budget Reconciliation Act (OBRA) requires that all revenue and direct spending legislation meet a pay-as-you-go (PAYGO) requirement. That is, no such bill should result in an increase in the deficit; and if it does, it will trigger a sequester if it is not fully offset. Offsetting collections in this bill would equal its increase in direct spending, resulting in a net zero PAYGO effect. Thus, considered alone, this bill meets the PAYGO requirement of OBRA.