Admiral James Loy's last State of

Phone: (703) 841-9300 Fax: (703) 841-0389 ISSN1536-3910 www.americanwaterways.com 801 North Quincy Street, Suite 200, Arlington, Virginia 22203 Table of Contents VOLUME 59, NO. 7 APRIL 5, 2002 Commandant's State of the Coast Guard Address Focuses on Security Agency Actions Commandant's State of the Coast Guard Address Focuses on Security...1 Inland Waterways Users Board Plans Spring Meeting...2 Legislative News House Committee Approves Maritime Transportation Antiterrorism Bill...2 House Approves FY2003 Budget Resolution...3 Association News AWO Letter Now Available Through E-Mail...4 Industry Image Campaign Radio Ad Set to Run Again...4 Responsible Carrier News Interregion Safety Committee Begins Work on 2002 Priorities...5 Coastal Safety Committee to Work on 2002 Priorities...6 AWO Training Resources Still Useful...7 Regional Reports Atlantic Region NY/NJ Safety Committee Honored for Rescue Efforts...7 Rep. LoBiondo Holds Port Security Hearing in New Jersey...8 Midcontinent Office Midwest & Ohio Valley Holds Joint Regional Meeting...9 UMR-IWW Navigation Study Evaluated...9 Members Only AWO Hosts Fundraising Event for Congressman Hulshof...10 Behind the Scenes...10 Admiral James Loy's last State of the Coast Guard Address as Commandant focused on the urgent, but not new mission of maritime security. In his March 21 speech, Admiral Loy urged the maritime community to "not think of maritime security as a new task suddenly added to a growing constellation of tasks. Rather, we must see it as our North Star." He added that security and safety are inseparable; both are about preventing harm to Americans. Repeating the theme "Strategy Matters" throughout his speech, the Commandant said, "We know that whatever action we take against further acts of terrorism must include protection of our ports and waterways and the ships and people that use them." ADM Loy went on to detail the Coast Guard's Maritime Security strategy. This strategy is based on five key principles: building Maritime Domain Awareness; ensuring controlled movement of high interest vessels; enhancing the agency's presence and response capabilities; protecting critical infrastructure and enhancing force protection; and increasing domestic and (continued on page 2) This edition of the AWO Letter is made possible by a contribution from: Jeffersonville, Indiana www.watercom.com

AGENCY ACTIONS/LEGISLATIVE NEWS Inland Waterways Users Board Schedules Spring Meeting The Inland Waterways Users Board has scheduled its spring meeting for April 25 in Chattanooga, Tennessee. The Inland Waterways Users Board is a federal advisory committee established to give commercial users a strong voice in decision-making on the investment the industry supports through tax payments to the Inland Waterways Trust Fund. The principal responsibility of the Board is to recommend to the Congress, the Secretary of the Army and the U.S. Army Corps of Engineers the prioritization of new and replacement inland navigation construction and major rehabilitation projects. The Board uses a prioritization format to objectively identify differences between proposed projects. This ranking tool examines eight project factors: condition, capacity and future demand, costs and benefits, operating and safety considerations, traffic delays, environmental concerns, timing, and public and political support for projects. The upcoming Board meeting will take place from 7:30 a.m. to 1:00 p.m. at the Convention and Trade Center, One Carter Plaza, Chattanooga, TN. The meeting is open to the public. For more information, contact Norman Edwards, U.S. Army Corps of Engineers, at (202) 761-4559. House Committee Approves Maritime Transportation Antiterrorism Bill On March 20, the House Transportation and Infrastructure Committee approved by voice vote the Maritime Transportation Antiterrorism Act of 2002. The Subcommittee on Coast Guard and Maritime Transportation had approved the bill earlier that day. During the Subcommittee mark-up of the legislation, Subcommittee Chairman Frank LoBiondo (R-NJ) stated, "Protecting our ports and maritime transportation system is of critical importance to our nation as the maritime industry contributes $742 billion to the gross domestic product each year and the ripple effects from an attack on one or more of our ports would be felt throughout the economy of the nation." Chairman LoBiondo continued, "This bill requires the Coast Guard to conduct vulnerability assessments of U.S. ports. The results of the assessments will be used to implement a national maritime transportation planning system, consisting of a comprehensive national plan, specific area plans, as well as local vessel and marine facility plans, all tailored for the sole purpose of deterring a catastrophic event to the greatest extent possible." In addition to Coast Guard port vulnerability assessments and the implementation of a national maritime transportation planning system, the Maritime Transportation Antiterrorism Act of 2002 contains several provisions of particular interest to AWO and its members including: Transportation Security Cards The legislation states that transportation security cards will be required for the following: an individual issued a license, certificate of registry or merchant mariners document under part E Commandant's State of the Coast Guard Address Focuses on Security (continued from page 1) (continued on page 3) international outreach. (For more information about this strategy, see the February 22 AWO Letter). ADM Loy explained that while the Coast Guard has borrowed operational energy from some mission areas to staff security initiatives, "This is but a temporary and necessary adjustment to ensure that we do not forsake the security of our nation." He pointed out that despite the attention and resources devoted to security, the Coast Guard was able to conduct "search and rescue efforts after the tug Brown Water V hit the Queen Isabella Causeway Bridge on South Padre Island, Texas." He concluded his address by saying, "I'm delighted to report on this final occasion that so many things are going the way we want them to go." ADM Loy has served as Coast Guard Commandant since May 1998, and will retire from active duty this spring. VADM Thomas Collins has been nominated to serve as the next Commandant. 2

LEGISLATIVE NEWS House Committee Approves Maritime Transportation Antiterrorism Bill (continued from page 2) of Subtitle II of Title 46 of the U.S. Code; a vessel pilot; an individual engaged on a towing vessel that pushes, pulls or hauls alongside a tank vessel; and, an individual engaged on a vessel that may be involved in a catastrophic emergency. Automated Identification System (AIS) The bill states that the following vessels, while operating on the navigable waters of the U.S., will be required to be equipped with a positionindicating transponder and an appropriate situation display or other device suitable for accessing information made available by the transponder system: Vessels subject to the Bridge-to- Bridge Radiotelephone Act; Towing vessels while towing astern or pushing ahead or alongside (except commercial towing vessels rendering assistance to disabled small vessels). House Approves FY2003 Budget Resolution; Accompanying Budget Committee Report Declares 4.3-Cent Tax Unfair and Discriminatory Sea Marshals The measure calls for the dispatch of trained and qualified armed Coast Guard personnel aboard vessels to deter or respond to acts of terrorism. It also calls on the Secretary of Transportation to evaluate and report back to Congress on the potential use of other federal, state, or local personnel to supplement Coast Guard personnel in this capacity. The Maritime Transportation Antiterrorism Act of 2002 (H.R. 3983) is expected to be scheduled for floor consideration before the full House sometime in April. H.R. 3983 is the House version of Senator Ernest Hollings' (D-SC) port and maritime security bill (S. 1214) that passed the Senate late last year. The two bills will be discussed in detail at the AWO Common Issues Council meeting on April 11. On March 20, the House approved the Fiscal Year (FY) 2003 Budget Resolution by a vote of 221 to 209. The House Budget Resolution assumes $28 billion in tax cuts over the next five years, including $4.4 billion in FY2003, but does not provide details on what the specific tax cuts will be. The House Budget Committee, in its report that accompanied the FY2003 Budget Resolution, calls attention to repeal of 4.3 cents-pergallon fuel tax that is paid by inland waterways operators and railroads. The Budget Committee's report language reads, "The 4.3-cents-per-gallon Diesel Fuel Deficit Reduction Tax remains an issue which needs redress even though Congress has twice passed legislation to repeal this unfair and discriminatory tax. This tax is inconsistent with sound national transportation policy because it effectively singles out the nation's railroads and the inland waterway industry." SCA to Host June Golf Tournament The SCA/AWO Summer meeting will take place at the San Luis Resort in Galveston, TX June 20-21. The Shipbuilders Council of America (SCA) will be hosting a golf tournament on Thursday, June 20 at the Galveston Island Municipal Golf Course in Galveston, Texas. To register, please complete the attached registration form and mail it with payment to Ray Isemann of Bollinger Shipyards. If you have any questions, please contact Jess McCluer at (202) 347-5462 or via email at jmccluer@dc.bjllp.com. 3

ASSOCIATION NEWS AWO Letter Now Available Through E-Mail Beginning with this issue of the AWO Letter, AWO members now have the option of receiving the Letter through e-mail. With the recent move to new offices, AWO's Internet bandwith e-mail system has been increased to provide faster access. This allows the AWO Letter to be sent via e-mail in place of a hard copy for those who prefer that. Many AWO members have asked to receive the AWO Letter electronically in order to more easily distribute it throughout their companies. Members can receive the Letter as a PDF file, with accompanying graphics and photos. Of course, those AWO members who prefer to continue to receive the Letter in hard copy have that option. Members may also elect to continue to receive a printed copy of the Letter in addition to an e-mailed copy. In addition to the obvious benefits of efficiency and timeliness, the ability to provide the Letter via e-mail can potentially save AWO thousands of dollars a year in postage costs. A test group of AWO members received the Letter electronically for the past few months, with no problems reported. AWO recently sent out a query to AWO members asking them to respond with their preferences for delivery of the Letter. If you did not receive a query, please contact Anne Davis Burns at aburns@vesselalliance.com or (703) 841-9300. Current and back issues of the AWO Letter continue to be available on the AWO Web site at www.americanwaterways.com under "Public Information." Industry Image Campaign Radio Ad Set to Run Again The AWO industry image campaign radio ad that was developed as an element of Phase II of the campaign is set to begin running again on two all-news radio stations in Washington, DC. The ad, which is targeted toward Washington policymakers, will run again beginning Tuesday, April 9, in order to reinforce awareness of the tugboat, towboat and barge industry, and the value of waterways transportation. WMAL (AM 650) and WTOP (AM 1500) will carry the ads during morning and afternoon drive-time and will also feature AWO "billboards" or sponsorships several times per week. The ad, featuring a "towboat pilot," was successfully debuted last year and generated a very positive response from Capitol Hill and Administration decisionmakers. The ad will run several times per week on both radio stations until the end of June, during the time when Congress conducts the vast majority of its business on issues of importance to AWO, such as the Water Resources Development Act (WRDA). To listen to the ad, log on to the AWO Web site at www.americanwaterways.com and look for the link to the ad on the front page. If you have any questions or comments, please contact Anne Davis Burns at (703) 841-9300 or via email at aburns@vesselalliance.com. Lifelines Brochures Still Available Being aware of the constraints under which commercial vessels operate can protect recreational boaters against danger and could save many lives. The American Waterways Operators' "Lifelines" brochure addresses this important safety message and delivers it to recreational boaters in an easy-to-read, user friendly format. To order copies of this popular brochure, please contact Traci Fischer at (703) 841-0389 or via email at tfischer@vesselalliance.com for an order form. 4

RESPONSIBLE CARRIER NEWS Interregion Safety Committee Begins Work on 2002 Priorities The spring meeting of the AWO Interregion Safety Committee was held in New Orleans, LA, on March 21-22. The 62 attendees representing 36 AWO member companies included a number of vessel crewmembers, in addition to committee members. Chairman John Patterson, Midland Enterprises, explained that although his company had recently announced its acquisition by Ingram Barge Company, he expected to fulfill his remaining term as chairman. He urged committee members to continue their active participation in the committee's work on its 2002 priorities. These priorities are: Crew Alertness Fall Overboard Prevention Improved Techniques for Crew Safety Training Before beginning work on its priorities, the committee turned its attention to several general topics. Kathy Rehak, AWO, gave a briefing on AWO's next steps after the recent Supreme Court decision in Chao v. Mallard Bay Drilling, Inc. (see January 25 AWO Letter). Steve Brundrett, Canal Barge Company, and Mike Weisend, AEP River Transportation, discussed the value of individual company and industry statistics, outlining definitions and resources for committee members to use and soliciting participation in gathering benchmarking data. Mike Rushing and Todd Rushing, Rushing Marine Services, led the committee through group exercises on new employee attitudes and improvements that can be made to increase crew retention. Andy Cannava, American Commercial Barge Line, and Glenn Hotz, Hile Group, presented the third in a series of videotapes on Dr. Dan Petersen's Safety Management Series: "Measurement and Reward." This video focused on accountability and how supervisors contribute to a company's safety culture. 2002 Priorities Activities Crew Alertness Safety Pages The committee was briefed on the crew alertness project being conducted at American Commercial Barge Lines (ACBL). Mark Dougherty, ACBL, informed the group that several other vessels in his company's fleet had undertaken programs to increase crew alertness while on watch and that ACBL s goal was to introduce the Crew Endurance Management System program to additional vessels in the company's fleet quarterly. Leonard Kingsley, U.S. Coast Guard Research and Development Center, gave an update on the status of several resources being developed in support of the crew endurance project, most notably a guide for the towing industry, projected to be available later this year. Mr. Dougherty and Mr. Kingsley solicited interest from committee members for participation in a workshop to bring the program home to their companies. Look for further information on this pending workshop in future editions of the AWO Letter. Fall Overboard Prevention The Fall Overboard Prevention Subcommittee met to develop a lesson plan for vessel crewmembers. Pictured from left: Stan Knight, B & H Towing, Tim Sizemore, MEMCO Barge Line, Donnie Hall, Marquette Transportation Co., Inc., John Patterson, Midland Enterprises Inc., and Andy Cannava, American Commercial Barge Line LLC (partially obscured). Donnie Hall, Marquette Transportation Co., shared a lesson learned from a fall overboard incident that occurred in his company s fleet. He urged the committee to help vendors improve their safety performance, particularly in the area of fall (continued on page 6) 5

RESPONSIBLE CARRIER NEWS Interregion Safety Committee Begins Work on 2002 Priorities (continued from page 5) overboard prevention. Jack Buri, Crounse Corporation, reported that the subcommittee dedicated to working on this priority had met earlier, beginning development of a lesson plan to introduce this topic to vessel crews. The lesson plan will be available in late summer. Improved Techniques for Crew Safety Training Guy Colonna, National Fire Protection Association (NFPA), provided a "train the trainer" session on the lesson plans on Hot Work and Confined Spaces that were recently distributed to members. He guided the committee through techniques to use and points to emphasize when instructing wheelhouse personnel on conducting safety briefings on these two topics. Noting the success of the lesson plans developed by the committee on Crew Alertness, Hot Work, Confined Spaces, and Fall Overboard Prevention, Chairman Patterson proposed the formation of a standing committee to develop lesson plans on other topics. The committee agreed and authorized a subcommittee to develop a list of pertinent topics and lesson plans, which will be chaired by Tom Smith, Canal Barge Company. The Interregion Safety Committee would like to thank Buffalo Marine Service for its generosity in sponsoring the evening reception. The committee will next meet in Louisville in July. For further information on any of the above topics, please contact Kathy Rehak at (703) 841-9300 or krehak@vesselalliance.com. 6 The Interregion Safety Committee participated in group exercises, as well as hearing presentations and receiving "train the trainer" instruction. From left: Stan Knight, B & H Towing, Greg Menke, Seamen's Church Institute, Tim Sizemore, MEMCO Barge Line, and Matt Lagarde, also of MEMCO. Coastal Safety Committee to Work on 2002 Priorities in New Orleans The Spring meeting of the AWO Coastal Safety Committee will be held on May 16-17 at the Le Meridien Hotel, 614 Canal Street, New Orleans, LA. The Coastal Safety Committee provides a forum for safety and operational professionals to promote the continuous improvement of safety in the coastal towing industry. All AWO member companies are invited to attend the meetings and encouraged to participate in the work of AWO's safety committees. The Coastal Safety Committee has set the following priorities for 2002: Crew Alertness, Fall Overboard Prevention, Development of Improved Techniques for Crew Safety Training, Bridge Transit Procedures, and Vendor Safety. Working groups will be established to accomplish the committee's goals. The meeting will begin at 1:00 p.m. on Thursday, May 16. A reception will be held at the conclusion of the afternoon session. The meeting resumes at 8:00 a.m. on Friday, May 17 and will conclude by 12:00 noon. The hotel is holding a block of rooms at $140 single/double. You can make your reservations by calling (504) 525-6500 and mentioning that you are with the group named AWO. The cut-off date for reservations is April 22. If you are planning to attend (or if you have any questions), please RSVP to Kathy Rehak at (703) 841-9300 or krehak@vesselalliance.com.

RESPONSIBLE CARRIER NEWS/REGIONAL REPORTS AWO Training Resources Are Still Useful As AWO members are preparing to undergo their Responsible Carrier Program recertification audits, it is wise to consider some of the training resources developed by AWO that may prove helpful. For example, AWO maintains a stock of the video, "An Introduction to the American Waterways Operators' Responsible Carrier Program." This video is targeted to vessel crews and provides a useful refresher on the history and purpose of the Responsible Carrier Program. Also available are a number of other videos that may prove helpful in presenting some of the training required by the Responsible Carrier Program. These are: "Fast Response - A Boat Crew's Guide to Oil Spills;" "Confined Space Entry;" "TOTS (Tap on the Shoulder for Safety)" and "Downstreaming Techniques -- Better Safe Than Sorry." In addition to the videos, AWO maintains lesson plans on Crew Supervisory Training, Crew Alertness, Confined Space, Hot Work, and Vessel Security. Most of these lesson plans introduce brochures on the topics. AWO also has issued reports on Hose Handling and the Safe Handling of Barge Rigging. PowerPoint presentations on the history and content of the Responsible Atlantic Region Carrier Program and recreational boating safety in the vicinity of tugboats, towboats and barges are also available. Finally, the Responsible Carrier Program Audit checklist is available both in hard copy and electronically. There is no more important tool to assist you in preparing for the audit than this document. It can be used as a guide in performing internal audits, an implementation plan to direct your initial progress in adopting the Program, and a comprehensive reference to all the required elements of the Responsible Carrier Program. There is a nominal charge for some of these items; others are available to be downloaded from our Web site, www.americanwaterways.com. For additional information on these products, please contact Bob Clinton or Kathy Rehak at (703) 841-9300. To place an order, contact Traci Fischer at tfischer@vesselalliance.com or at the phone number above. Orders may also be placed directly from the AWO s Web site by choosing Public Information and then Publications Catalog. NY/NJ Safety Committee Honored for Rescue Efforts The New York Harbor Safety, Navigation & Operations Committee has been recognized as the Harbor Safety Committee of 2001 for its notable achievements during the rescue and relief operations following the attack on New York City on September 11, 2001. The award was presented by Norman Mineta, Secretary of Transportation, and Coast Guard Commandant James Loy to Captain Andrew McGovern, Chairman of the Harbor Safety, Navigation & Operations Committee of New York & New Jersey, at the National Harbor Safety Committee Conference in Galveston, Texas on March 6. The award honored the New York/New Jersey group for its notable achievements during the rescue and relief operations following the attacks on September 11, 2001. The Committee is comprised of 60 firms and associations dedicated to improving safety and navigation within the port complex and was in the position to marshal communitywide support, cooperation and coordination for the evacuation of 1.5 million people, the transportation of 800 truckloads of emergency supplies, and the supply of provisions for over 5,000 relief workers. Captain McGovern attributed the success of the Committee to the strong professional working relationships, open lines of communication among members, and prior plans instituted by the Committee. Also serving as officers on the Commandant James Loy presents the award to CAPT Andrew McGovern with Rep. Nick Lampson (D-TX) looking on. Committee are Linda O'Leary, AWO Atlantic Region; Genevieve Boehm, New Jersey Maritime Resources; and Lucy Ambrosino, Port Authority of NY/NJ. 7

REGIONAL REPORTS Atlantic Region Rep. LoBiondo Holds New Jersey Port Security Hearing On March 26, Congressman Frank LoBiondo (R-NJ), Chairman of the Subcommittee on Coast Guard and Maritime Transportation of the House Transportation and Infrastructure Committee, held a hearing on the status of port antiterrorism security at Port Newark in Elizabeth, New Jersey. Subcommittee members attending the hearing included Congressmen Robert Menendez (R-NJ), Bill Pascrell, Jr. (R-NJ), Rodney Frelinghuysen (R-NJ), Donald Payne (R-NJ) and Rush Holt (R-NJ). Congressman LoBiondo opened the hearing by thanking local officials at the Port Authority of New York & New Jersey, the U.S. Customs Service and the Coast Guard for arranging the hearing. Congressman LoBiondo stated that the Port of New York & New Jersey, as the largest port on the East Coast, was of particular concern given the volume of petroleum products, cruise ship passengers and passenger ferries transiting the port annually. The Congressman briefly described the provisions of the Maritime Transportation Antiterrorism Act of 2002 (H.R. 3983), recently reported out of the House Transportation and Infrastructure Committee (see related story, page 2.) Congressman LoBiondo reiterated his position that security measures adopted to protect our nation's ports must not be paid for through user fees assessed on the maritime industry. Witnesses at the hearing included CAPT Craig E. Bone, U.S. Coast Guard Captain of the Port - Activities New York; Frank M. McDonough, President of the New York Shipping Association; James Benton, Executive Director of 8 The New Jersey Petroleum Council; and Captain Richard Schoenlank, President of the United New Jersey Sandy Hook Pilots. CAPT Bone reviewed the maritime response immediately following the attack on September 11, which included the evacuation of over one million people, the provision of over 800 tractor truckloads of supplies and the ongoing removal of 1.2 million tons of debris from the World Trade Center. CAPT Bone stated the this massive response was made possible because of the strong working relationship that existed between state and local law enforcement agencies, marine pilot associations and various elements of the maritime industry. He asserted that these relationships will be part of the solution to sustainable port security initiatives and maritime forums such as the Harbor Safety, Navigation & Operations Committee will ensure their success. Frank McDonough stated that it is imperative that all federal and state agencies work together to develop national standards that each port can monogram to suit to specific operations within a port complex. Mr. McDonough asked the Committee to recognize: the importance of having a single federal agency in charge of port security measures; security must fit local operations and requirements; security begins at the point of origin, not delivery; port security is a national concern requiring federal support; and, sharing among federal agencies is the key element in the prevention of future threats to homeland security. James Benton pointed out that each year about 1,700 vessels carrying petroleum products call on the port, making the oil industry the largest marine user in the port complex. Mr. Benton stated that the American Petroleum Institute (API) has been working closely with federal and state agencies to establish a "first alert" system for the oil and natural gas industry to apprise them of any potential terrorist threats. In addition, API has developed a set of Rep. Frank LoBiondo (R-NJ) comprehensive security guidelines for terminal facilities, which will be shared with the Energy Department within a few weeks. Finally, Mr. Benton stressed that although individual state efforts are valuable, a common national approach will be more effective than having each state enact its own, potentially overlapping, security requirements to protect energy facilities. The Harbor Safety, Navigation & Operations Committee is currently conducting a Port Vulnerability Assessment (PVA), which will be a valuable tool for assessing real threats to maritime operations. Several mitigation measures may be incorporated in the Assessment report and it may suggest the use of sea marshals to accompany "highrisk" vessels as they enter or depart the port; escort vessels to accompany commercial vessels and enforce an exclusionary zone within which no unauthorized vessels may enter; increased waterborne patrols to protect terminal facilities; and, enhanced communications among federal, state and local law enforcement agencies. Captain Schoenlank stressed that although the efforts of the Harbor Safety Committee can play a meaningful role in improving port security, the federal government must provide support in terms of resources and equipment to address the real threats to the maritime industry. (continued on page 9)

REGIONAL REPORTS Midcontinent Office Midwest & Ohio Valley Holds Joint Regional Meeting T he Midwest and Ohio Valley Regions met on March 28 for their joint spring meeting and to elect directors and officers for the regions. The meeting was held in conjunction with the Inland Waterways Navigation Conference and a fundraiser for Congressman Kenny Hulshof (R-MO). After discussion and review of the 2002 Midcontinent Office Priorities, Midwest Chairman Larry Daily, Alter Barge Line, Inc., called for a motion to approve the priorities as presented. The priorities were approved unanimously. Ohio Valley Chairman Craig Philip, Ingram Barge Company, stressed to AWO's membership the need to reach out and bring into AWO smaller operators, including fleets with which they do business, in order to protect the reputation of the industry and the RCP. Tom Allegretti and Boyd Hollingsworth discussed national issues facing AWO. Mr. Hollingsworth addressed the difficult legislative battle for repeal of the 4.3-cent deficit reduction fuel tax; the politics surrounding WRDA 2002, including Corps reform legislation introduced by Congressman Ron Kind (D-WI) and Senators Russ Feingold (D-WI) and Bob Smith (R-NH); and the pending introduction of Senate and House bills that will make OPA 90 the exclusive statute of jurisdiction for criminal liability for oil spills. Mr. Allegretti reviewed the 2002 National Priorities and asked for comments. He also addressed the potential problem of OSHA inspections on uninspected vessels. UMR-IWW Navigation Study Evaluated The U.S. Army Corps of Engineers recently asked the River Indstry Executive Task Force (RIETF) to evaluate Industry Self-Help (ISH) as part of the UMR-IWW Navigation Study (Nav Study). Rich Manguno, lead economist for the Nav Study, indicated that the initial scenarios showed a significant increase in wait time at some critical sites (>50 hours, with 12-barge queues as the norm). Corps leadership has asked the economic team to assess whether the previous 5% cap on ISH would continue to be true under this scenario. Efficiency improvements using ISH would be used to evaluate the cost/benefit ratio of all scenarios versus a "no action (no construction)" scenario. Industry representatives presented the following points and questions: ISH is not seen as a long-term solution by industry because it does not address the real problem: capacity. After reaching 80% capacity the time line goes vertical, and all ISH will do is move the time line a little further out in time. Will the Corps evaluate the negative environmental impacts of a "no action" scenario (e.g. increased sedimentation, increased fuel consumption, disruption of Atlantic Region LoBiondo Holds Port Security Hearing in New Jersey (continued from page 8) fragile bank side habitat, and increased air pollution)? Will the Corps evaluate the cost of injuries/fatalities that occur during double lockage and/or the increase in injuries/fatalities with ISH? The Supreme Court already ruled during Lock 26 gridlock that industry cannot be forced to participate in ISH. The ruling stated that the government cannot force "indentured servitude" on private industry. ISH could not be used during various river/weather conditions including ice, snow, or an extremely fast current. Many line boats would not be able to assist hazardous liquid cargo tows, even if only one of the barges were hazardous. Will the Corps consider the cost of a site coordinator, increased training, liability, and carcinogenic monitoring? A full report on the meeting and industry evaluation of some of these numbers will be available by April 10. Contact Lynn Muench at (314) 621-2929 or via email at awo-midcontinent@msn.com for a copy. Chairman LoBiondo stressed that it is crucial that the Supplemental Appropriations Bill of 2002 for the U.S. Coast Guard be supported by the entire New York and New Jersey Congressional delegation to implement many of the security measures outlined by the panelists. Furthermore, the Coast Guard's budget for 2003, and the years beyond, must provide the resources to implement the expanded multi-mission responsibilities assigned. 9