AWO Chairman Testifies at House Licensing Hearing

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Phone: (703) 841-9300 Fax: (703) 841-0389 ISSN1536-3910 www.americanwaterways.com 801 North Quincy Street, Suite 200, Arlington, Virginia 22203 VOLUME 63, NO. 15 JULY 21, 2006 HIGHLIGHTS IN THIS ISSUE AWO Chairman Testifies at House Licensing Hearing...1 Water Resources Development Act Passes in Senate...2 House Subcommittee Holds Hearing on Draft Ballast Water Legislation...3 Corps Seeks Nominations for Users Board...4 Coast Guard Releases National AIS Project Environmental Statement...4 Senate Approves Measure to Expand River Locks...5 Missouri River Closed to Barges...6 Corps Refuses to Support Congressionally Authorized Navigation on Missouri River..7 USCG Sector Lake Michigan Change of Command...8 AWO to Engage NOAA on Right Whales Ship Strike Strategy Rulemaking...8 AWO Comments on the Massachusetts Buzzards Bay RNA...9 Washington State Hearing Testimony on Oil Transfers and Contingency Plans...10 Louisiana DEQ Proposes Cargo Reporting Rule...11 Coast Guard Sector Houston/ Galveston Change of Command...11 AWO Chairman Testifies at House Licensing Hearing Says System is Broken and Needs Fixing On Thursday, July 20, the Subcommittee on Coast Guard and Maritime Transportation of the House Transportation and Infrastructure Committee held a hearing on the state of the Coast Guard licensing system. Subcommittee Chairman Frank LoBiondo (R-NJ) presided over the hearing. RDML Craig Bone, Assistant Commandant for Prevention - USCG, testified on behalf of the Coast Guard. AWO Chairman Dale Sause joined a panel of maritime industry representatives, including the Passenger Vessel Association, the Offshore Marine Services Association and the Marine Engineers Beneficial Association (MEBA). Chairman Sause told the committee of the present difficulties of the Coast Guard licensing system, calling it broken and in desperate need of a long overdue fix. He noted the lengthy delays, bureaucratic quagmires and enormous backlogs plaguing the Coast Guard Regional Examination Centers and said that the current situation is blocking mariners from going to work Mr. Chairman, when I talk to AWO members around the country about the licensing issue, I am struck by the emotional intensity of their concerns. People are frustrated. They re angry. They feel devalued. and forcing vessel owners to tie up boats for lack of crews. He pointed out for the committee the current shortage of vessel personnel facing the maritime industry and explained how the current licensing system is exacerbating that critical vessel personnel shortage situation. His observations were echoed by the other representatives of the maritime industry. Chairman Sause offered several suggestions for improving the licensing system. He noted that AWO is supportive of the Coast Guard's proposal to streamline and consolidate the licensing system. He expressed concern, however, that the plan's anticipated benefits would take some time to realize and in the meantime the situation could get worse before it gets better. He said that the current system requires better processing, better technology, better staffing and a more uniform application of licensing requirements and medical standards. Chairman Sause also told the committee that the Coast Guard should move quickly on the recommendations (continued on page 2) The new and improved... www.americanwaterways.com This edition of the AWO Letter is sponsored by:

LEGISLATIVE NEWS AWO Chairman Testifies at House Licensing Hearing (continued from page 1) of the Towing Safety Advisory Committee regarding towing vessel officer licensing. The recommendations, contained in a TSAC report issued in October 2005, contain a number of common-sense changes designed to ensure that the pipeline of future wheelhouse personnel is not shut off by cumbersome process and lengthy waiting periods. In his testimony, Chairman Sause also recommended addressing the issue of license creep, including statutory changes if necessary. He said that mariners should be able to apply for license renewal up to 12 months in advance, and renewals should become effective at the expiration of the full term of the current license. Chairman Sause also testified that all changes to the licensing process must be viewed through the prism of the ongoing vessel personnel shortage. All proposed changes must be evaluated as to whether they will help the system or make it worse. The Coast Guard itself has made its goal to do no harm. Chairman Sause told the Committee that the clearest example of the need for this type of do no harm approach is the recently proposed regulations for a Transportation Worker Identification Credential (TWIC). Chairman Sause testified that in its current form, the TWIC proposal is "devastating." He outlined the problems with the TWIC proposal and their impact on the licensing process. He went on to describe the suggestions for changes to the TWIC proposal that AWO and many of its members have made, focusing especially on the need to allow newly hired employees to work aboard vessels while awaiting the formal issuance of the TWIC. He urged the committee to press the Coast Guard to complete the ongoing TWIC and Merchant Mariner Credential proposals in a way that does not make the current personnel shortage situation even worse. RDML Bone, testifying on behalf of the Coast Guard, updated the committee on the status of the centralization of the Regional Examination Center (REC) functions into one facility in West Virginia. RDML Bone said that the New Orleans REC, destroyed by Hurricane Katrina, would reopen on August 8 as a storefront facility. When the REC reopens, all applications will be forwarded to the Martinsburg, WV, center for evaluation and processing. Some of the employees from the New Orleans REC are being transferred to the West Virginia center and 20 new contract employees are being added to the new center as well. RDML Bone also outlined the TWIC proposal issued jointly by the Coast Guard and the Transportation Security Administration, and noted that the Coast Guard would be aligning the current security requirements under the Maritime Transportation Security Act with the TWIC structure. Chairman LoBiondo, in his opening statement, noted that the staffing levels of the Coast Guard for processing mariner credentials had changed little since 1982, while the work load has increased dramatically. In Fiscal Year 2004, over 84,000 credentials were processed, which represents an increase of 25 percent in the last 10 years. Several members of the subcommittee expressed concern about the current backlog in the Coast Guard licensing system and expressed a desire to see the problems effectively resolved by the Coast Guard. Congressman Bob Filner (D-CA), the ranking Democratic member of the subcommittee, said these are serious problems, requiring common-sense solutions, but are not rocket science. He urged that the situation be addressed right away. For a copy of Chairman Sause's testimony or for questions about the issues raised at the hearing, please contact Boyd Hollingsworth at (703) 841-9300, or by email at bhollingsworth@vesselalliance.com. WATER RESOURCES DEVELOPMENT ACT PASSES IN SENATE The Senate passed the long awaited Water Resources Development Act (WRDA) bill, HR 2864, by voice vote on Wednesday, July 19. The bill would authorize more than $12 billion for over 200 projects, including the first stage of the Upper Mississippi River/ Illinois Waterway Project (UMR/IWW) of seven new locks and dams on the Mississippi and Illinois Rivers. A different version of the bill, also authorizing the UMR/IWW, passed the House of Representatives in 2005. During floor debate, two peer review amendments were considered. One of them, offered by Senators John McCain (R-AZ) and Russ Feingold (D-WI), (continued on page 3) 2 July 21, 2006

LEGISLATIVE NEWS House Subcommittee Holds Hearing on Draft Ballast Water Legislation The Subcommittee on Coast Guard and Maritime Transportation of the House Committee on Transportation and Infrastructure held a hearing to consider draft legislation regarding ballast water and the reduction of air pollution from ships. The Subcommittee met on July 11 to hear testimony and review a draft bill. The measure would require the U.S. Coast Guard to institute ballast water discharge standards and expand on its existing ballast water management program. Under the proposed legislation, the Coast Guard would be granted the authority to establish more rigid standards based on the confirmed capabilities of accessible alternative methods of ballast water management. The Coast Guard would be required to monitor, facilitate and assess the testing of alternative ballast water management methods used aboard vessels involved in international trade. The Coast Guard would also be required to implement national ballast water discharge standards WRDA PASSES IN SENATE (continued from page 2) establishing external reviews of any U.S. Army Corps project exceeding $40 million, was adopted on Wednesday by a vote of 54-46. The amendment also creates a board of independent experts to review projects relating to flood-control. An alternative amendment, offered by the floor managers of the bill, Senator Kit Bond (R-MO) and Senator Jim Inhofe (R-OK), to require limited reviews for water projects costing more than $100 million, failed by a vote of 49-51. Another McCain-Feingold amendment, designed to establish an interagency panel to propose the agency's priorities, was rejected by a vote of 19-80. A counter amendment by Senators Bond and after it has been determined that a method to reduce the number of organisms exists. The draft bill does contain an exemption for vessels engaging in coastwise trade, however, it does not include several key features that AWO is seeking in federal ballast water legislation. For example, the draft legislation does not provide federal preemption of state regulations for vessel operations. It also lacks a provision to keep ballast water regulation out of the EPA s Clean Water Act Program. There is no action scheduled on the draft bill in the House of Representatives at the present time. The Senate continues to work on its measure, S. 363, which is currently the subject of discussion between the Senate Environment and Public Works Committee and the Senate Commerce Committee. If you have any questions, please contact Boyd Hollingsworth or Krista Reddington at (703) 841-9300 or at kreddington@vesselalliance.com. Inhofe to require the Corps to issue an annual report on the success of the agency s projects was also rejected 43-56. Many Senators spoke in favor of passage of the bill, which passed by a voice vote demonstrating the strong support for it. The measure will now go to Conference Committee where the differences between the Senate and House bills will be resolved. If you have any questions, please contact Boyd Hollingsworth or Krista Reddington at (703) 841-9300 or at kreddington@vesselalliance.com. Important Dates and Reminders at a glance All contact persons can be reached by calling AWO s Arlington, VA office at (703) 841-9300 unless otherwise noted. August 10: Atlantic Region Summer Meeting, Norfolk, VA. August 11: Southern Region Summer Meeting, Houston, TX. August 17: Midwest & Ohio Valley Regions Joint Summer Meeting, Chicago, IL. August 24: Pacific Region Summer Meeting, Seattle, WA. Register for all regional summer meetings online at www.americanwaterways.c om/membership_meetings/ index.html. October 11-13: AWO Fall Convention, Seattle, WA. For more information, contact Marilyn Clark. November 2-3: Joint Safety Committees Meeting, Baltimore, MD. For more information, contact Kathy Rehak. July 21, 2006 3

AGENCY ACTIONS Corps Seeks Nominations for Users Board The U.S. Army Corps of Engineers is seeking nominations to fill five appointments or reappointments to the Inland Waterways Users Board. The deadline for submitting nominations is August 11. Members of the Users Board are selected from the spectrum of commercial carriers and shippers using the inland and intracoastal waterways. Members of the Users Board represent geographic regions and are representative of waterborne commodity groups. The Users Board is required to meet at least semiannually to develop and make recommendations to the Secretary of the Army on waterways construction and rehabilitation priorities and spending levels for commercial navigation improvements. For more information on how to submit nominations or for a copy of the announcement, contact Angela Madden at amadden@vesselalliance.com or (703) 841-9300. NMSAC Announces Meeting The National Maritime Security Advisory Committee (NMSAC) will hold a meeting on July 25 from 9:00 a.m. - 3:00 p.m. at U.S. Coast Guard Headquarters in Washington, DC. The meeting agenda includes an update on the Transportation Worker Identification Credential (TWIC) regulation, approval of the NMSAC Subject Matter Expert list, and establishment of the Maritime Transportation Government Coordinating Council and the Maritime Transportation Sector Coordinating Council, among other items. AWO members appointed to NMSAC include John Dragone, Maritrans Operating Company L.P., and Joe Langjahr, Marine Resources, Inc. For more information on the meeting, contact Mr. John Bastek, U.S. Coast Guard, at (202) 267-2722. Coast Guard Releases National AIS Project Environmental Statement The U.S. Coast Guard has released the draft Programmatic Environmental Impact Statement (PEIS) addressing the proposed implementation of the Nationwide Automatic Identification System (NAIS) project. The proposed Welcome New Carrier Member! Bouchard Transportation Co., Inc. 58 South Service Road Suite 150 Melville, NY 11747 Rep: Mr. Morton S. Bouchard, III President project involves installing receivers, transmitters, transceivers, repeaters, and other equipment on towers and other structures at up to 450 sites at locations along 95,000 miles of coastline and inland waterways, as well as the use of selected remote platforms. A public hearing on the PEIS will be held at Coast Guard Headquarters in Washington, DC on August 9 from 9:00 a.m. to 11:00 a.m. The Coast Guard has proposed implementing the NAIS project by using a combination of coverage mechanisms. They include establishing a combination of collocated and newly built shore-based radio frequency sites for short-range AIS coverage; leasing commercial PEIS satellite service for long-range coverage; and, installing AIS equipment on existing offshore oil and gas platforms and data buoys for supplemental long-range coverage. For information on the AIS program or the PEIS, contact Jennifer Carpenter or Angela Madden at (703) 841-9300. 4 July 21, 2006

IN THE NEWS Senate Approves Measure to Expand River Locks This article, written by Sam Hananel, Associated Press, ran in newspapers across the nation on July 20. It is reprinted here in its entirety. **************** WASHINGTON - After years of debate, the Senate on Wednesday overwhelmingly approved a massive waterway navigation bill that would double the size of locks on the upper Mississippi and Illinois rivers. The measure also is designed to reform how the Army Corps of Engineers justifies major water construction projects, imposing a new system of peer review over an agency that has come under fire in the wake of levee failures during Hurricane Katrina. Farm groups and barge operators cheered passage of the $11.7 billion Water Resources Development Act as the best way to reduce traffic delays on the rivers and speed the shipment of grain and other crops to southern ports for export. Today s authorization provides longoverdue modernization for an infrastructure hindered by age and constrained by capacity, said Paul Rohde, president of MARC 2000, a St. Louis-based shippers coalition. Environmental groups criticized the locks project as wasteful spending on a barge industry that has steadily WEB ADDRESSES AVAILABLE If you receive a hard copy of the AWO Letter and need to know the exact Web addresses of the hyperlinks in any articles, please contact Emily Bezek at (703) 841-9300 or via email at ebezek@vesselalliance.com. declined over the past 15 years. Congress seems determined to spend a lot of money for a project that has absolutely no economic need at all, said Tim Searchinger, a senior attorney for the advocacy group Environmental Defense. The bill contains $1.8 billion to replace five existing 600-foot locks on the Mississippi River between Keokuk, Iowa, and St. Louis with new 1,200- foot chambers. Two similar locks would be constructed on the Illinois River. The new locks would allow barge loads to pass through without being broken up, a process that can delay shipments from two to six hours. Another $1.6 billion would go toward ecosystem improvement along the rivers, while billions more is targeted for restoration of the Florida Everglades and the Louisiana coastline. A similar bill was approved in the House last year by a vote of 406-14. Differences between the two measures must be resolved in conference later this year. Sen. Dick Durbin, D-Ill., has estimated the bill would mean 50,000-plus new jobs for the region. We have been waiting for six long years for a bill to reauthorize navigation projects all over the country, Durbin said in a statement. Today, I commend my colleagues for working together to pass this bill and to modernize the Mississippi waterway so our region can remain competitive in the years to come. Sen. Kit Bond, R-Mo., who sponsored the measure and has been its main champion for years, said the locks expansion would create jobs, spur economic development and improve U.S. trade competitiveness. But Bond could not stop his colleagues from approving 54-46 an amendment to the bill that subjects all Corps floodcontrol projects over $40 million to independent review to determine whether they are efficient. That amendment, co-sponsored by Sens. John McCain, R-Ariz., and Russ Feingold, D-Wis., was a response to a series of reports over the years that found the Corps showed poor planning on flood-control projects. This New Orleans situation is exhibit A of the kind of problems that might occur if we don t have appropriate review of these Army Corps of Engineers projects, Feingold said. Bond said the McCain-Feingold amendment threatened to delay project construction and drive up costs with second guessing by outsiders. Bond and Sen. James Inhofe, R-Okla., offered their own oversight plan limiting reviews to projects costing at least $100 million, but the measure failed 51-49. July 21, 2006 5

IN THE NEWS Missouri River Closed to Barges This article, written by Thomas L. Gallagher, ran in Traffic World on July 13. AWO Vice President - Public Affairs Anne Burns and Vice President - Midcontinent Lynn Muench are both quoted. **************** The Corps of Engineers on July 11 announced that the Missouri River navigation season will end in October, 44 days early. But the river is already closed to most barges, according to the American Waterways Operators, the national trade association representing the owners and operators of tugboats, towboats, and barges. A drought over much of the area from Sioux City, Iowa, to the river s mouth near St. Louis, Mo., has lowered the flow of water to such an extent that barges with a 7.5 foot draft are unable to operate in the river channel. Most affected are barges carrying asphalt. None of them has been able to navigate the shallow channel for close to a week, said Lynn Muench, Vice President - Midcontinent of the American Waterways Operators. Barge operators don t see any relief soon unless there is a lot of rain. The effects may be severe and wide ranging. Transporting asphalt by means of tanker trucks on Interstate 70 is an expensive alternative, said Muench. It also takes away capacity for other chemicals, such as chlorine, needed in the poultry business. Closing the season early also hits the peak export season hard. The shipping season will end Oct. 6 in Sioux City, Iowa, and Oct. 17 in St. Louis, Mo., said the Corps of Engineers. The Corps manages the flow of the Missouri River through a system of dams and dikes in the upper river, created over the years to control it. Support for commercial navigation is one of the two primary purposes of the Corps activity, according to the Flood Control Act of 1944. The Corps is not managing the flows appropriately, said Anne Burns, Vice President - Public Affairs at AWO. The Corps has made a lot of changes. They should balance by managing the flow more appropriately for navigation. CEMS Training Opportunities The Crew Endurance Management System (CEMS) is a system for managing risk factors in maritime work environments that can lead to human error and performance slumps. The Coast Guard and AWO have been working together to help companies implement the principles of CEMS. In this space, AWO will publish details of CEMS training opportunities around the country. For further information on CEMS training opportunities, please contact LT Vivianne Louie, U.S. Coast Guard, at (202) 267-0173. DATE LOCATION CONTACT August 3-4 August 8-10 August 8-10 August 28-29 Coaches Training Kirby Corporation Houston, TX Coaches Training St. Louis, MO Experts Training Kirby Corporation St. Louis Coaches Training Seaman s Church Institute Paducah, KY Kelly Parker (713) 435-1775 kelly.parker@kirbycorp.com Vivianne Louie (202) 267-0173 vlouie@comdt.uscg.mil Vivianne Louie (202) 267-0173 vlouie@comdt.uscg.mil Kelly Butts (270) 575-1005 6 July 21, 2006

RESPONSIBLE CARRIER NEWS/REGIONAL REPORTS SAFETY TOOLS/DOCUMENTS LIBRARY UPDATED AWO recently launched its new and improved Web site, www.americanwaterways.com (see June 9 AWO Letter). As part of this effort, the Safety Department has updated and reorganized the Safety Tools/Documents Library located on the site under the category of Commitment to Safety. The majority of these safety tools/documents are lesson plans. More than 20 lesson plans are now available. Over the past five years, these lessons plans have been developed by the AWO Coastal and Interregion safety committees in the categories of crew alertness, security, line handling, fall overboard prevention and other topics. The reorganization groups these lesson plans by category for easier access. The AWO safety committees have also compiled strategies for improving alertness and have identified risk factors contributing to falls overboard. These tools have also been grouped together to make the library more user-friendly. The safety tools/documents are available to all who visit the AWO Web site members and the general public alike. They are available as Word documents so that, particularly in the case of lesson plans, the documents can be customized for Safety Pages each company s unique operations and culture. For further information on the Safety Library or the work of AWO s safety committees, please contact Kathy Rehak at (703) 841-9300 or krehak@vesselalliance.com. Midcontinent Office Corps Refuses to Support Congressionally Authorized Navigation on Missouri River Negative Ripple Effects on Region s Commerce Seen On July 6, AWO sent a letter to the commander of the U.S. Army Corps of Engineers - Northwestern Division, BG Gregg F. Martin, requesting he take immediate action to increase navigation flows on the Missouri River. The river was effectively closed for over one week as responsible navigators refused to enter it due to dangerously low flows on the last 100 miles of the river. Although the recently released Master Manual called for shortening the navigation season during drought years, it does not call for a split-navigation season. The split-navigation season was to be avoided with the creation of over 1,200 acres of Shallow Water Habitat (SWH) for the pallid sturgeon. In the letter, AWO noted that the Corps staff had indicated that since the Corps is hitting targets, they were unable to release any more water to support navigation. AWO asserted that the targets were developed to ensure adequate navigation flows and if the targets are not adequate to support minimum service, the targets are wrong, and the Corps needs to correct them immediately. Due to the navigation channel changes caused by SWH creation, there is a need for increased flows to support congressionally authorized navigation. The channel changes have decreased the river s ability to self-scour and under low flows, silt is deposited into the main channel. The absence of commercial navigation to the Kansas City area has increased asphalt costs and logistical problems for road construction projects in Missouri, Nebraska, Oklahoma, Arkansas and Kansas. The need to replace shipments via tanker truck has also had a negative economic ripple effect in the region. While the river was closed, the Corps announced on July 11 that the navigation season would be shortened by 44 days. This is the fourth season navigation has suffered due to (continued on page 8) July 21, 2006 7

REGIONAL REPORTS Midcontinent Office USCG Sector Lake Michigan Change of Command On July 14, U.S. Coast Guard CAPT Bruce C. Jones relieved CAPT Scott P. LaRochelle as commander of Sector Lake Michigan. CAPT Jones had previously served in the Great Lakes as Executive Officer of Air Station Traverse City from 2001-2004. CAPT Jones most recent assignment was Commanding Officer, USCG Air Station New Orleans, with an area of responsibility from Lake Charles, LA to Apalachicola, FL. He led the Coast Guard s air rescue operations during and after Hurricanes Katrina and Rita, saving over 7,000 lives by helicopter. CAPT Jones graduated from Washington and Lee University in 1982, Coast Guard Officer Candidate School (OCS) in 1984 and Naval Flight Training in 1985. CAPT Corps Refuses to Support Congressionally Authorized Navigation on Missouri River (continued from page 7) hoarding of water in the upper basin reservoirs. Navigation was shortened six days in 2003, 47 days in 2004 and a record 48 days in 2005. (This does not include the days the river was closed due to litigation.) If the current drought continues in the upper Midwest, the Mississippi River will be severely impacted when the flows from the Missouri River sharply decline on October 17. AWO has requested that the days lost during the recent split-navigation season be added to the end of the navigation season. For more information contact Lynn Muench at awo_midcontinent@msn.com. Atlantic Region Jones has been invited to the AWO Midwest and Ohio Valley Regions Joint Meeting on August 17. CAPT LaRochelle s next position is Chief, Search and Rescue in Washington, D.C. Sector Lake Michigan, established on July 29, 2005, oversees the Coast Guard s largest number of field commands, totaling 24. The Sector includes all of Lake Michigan and the last portion of the Illinois Waterway. AWO to Engage NOAA on Right Whales Ship Strike Strategy Rulemaking AWO will engage federal agencies and submit comments by August 25 on the National Oceanic and Atmospheric Administration (NOAA) National Marine Fisheries Service (NMFS) June 26 proposed regulation to implement speed restrictions of ten knots or less on vessels 65 feet long or greater in areas of New England and the mid- Atlantic as part of the North Atlantic right whale recovery NMFS Ship Strike Reduction Strategy. The NMFS strategy consists of five elements for reducing the threat of ship strikes: four are nonregulatory and the fifth proposal is the focus of the rulemaking - operational measures for commercial mariners. AWO has begun to solicit comments from Atlantic Region members on this important rulemaking. The proposed rule could apply speed restrictions to designated waters during certain times of year to within 30 miles of ports in the following areas: Cape Cod Bay, Race Point, Great South Channel, Block Island Sound, New York/New Jersey, Delaware Bay, Chesapeake Bay, Morehead City/Beaufort, Wilmington, Georgetown, Charleston, Savannah, and Jacksonville. NOAA has also proposed establishing recommended shipping routes for vessels entering or departing the ports in Jacksonville, FL, Fernandina, FL, Brunswick, GA, and the waters of Cape Cod Bay. NOAA issued a notice that it would hold public meetings in Jacksonville, FL (August 8); Baltimore, MD (August 10); and Boston, MA (August 14) to receive comments on its North Atlantic right whale ship strike reduction strategy and draft environmental impact statement. Members who want to learn more about this proposed rule can contact Chris Coakley at ccoakley@vesselalliance.com or (703) 841-9300. The proposed rule can be found at www.nmfs.noaa.gov/pr/shipstrike/. 8 July 21, 2006

REGIONAL REPORTS Midcontinent Office Midwest and Ohio Valley Regions Joint Summer Meeting Scheduled Mark Your Calendars for August 16-17 The Midwest and Ohio Valley Regions joint summer meeting will be held on August 17 at the Palmer House Hilton, 17 East Monroe Street in Chicago, IL. A reception will be held August 16 from 6:00 p.m.-7:30 p.m. On August 17, a continental breakfast will begin at 7:00 a.m. The business meeting will run from 7:30 a.m. to noon. Confirmed guests include U.S. Coast Guard RADM Joel Whitehead, Eighth District Commander; RADM John E. Crowley, Ninth District Commander; and, U.S. Army Corps of Engineers BG Bruce A. Berwick, Great Lakes and Ohio Valley Commander. AWO Chairman Dale Sause and former Towing Safety Advisory Committee (TSAC) Chairman Jeff Parker will address a variety of issues, including activity on the inspection regulation, AWO work on the vessel personnel shortage issue, and the Transportation Worker Identification Credential (TWIC). Rooms are being held for AWO at a rate of $189. Contact the Palmer House Hilton directly at (312) 726-7500. Hotel registration and meeting registration are due by July 21. For more information, contact Marilyn Clark at (703) 841-9300 or visit the meeting section of AWO s Web site at www.americanwaterways.com/member ship_meetings/index.html. Atlantic Region AWO Comments on the Massachusetts Buzzards Bay RNA On June 22, AWO submitted comments to the docket that took issue with two of the three requirements in the notice of proposed rulemaking (NPRM) for the Buzzards Bay, MA Regulated Navigation Area (RNA) that would require single-hulled tank vessels and tug/barge units in the RNA to be accompanied by escort tugs, utilize federally licensed pilots and participate in a Vessel Movement Reporting System (VMRS). AWO made the following key points in its comments to the docket: In the December 27, 2004 Advanced Notice of Proposed Rulemaking, AWO urged the Coast Guard to carefully analyze the major safety, operational and cost implications associated with mandatory escort tugs and weigh them against the potential benefits. In the June 22 comments to the NPRM, AWO indicated that the Coast Guard Regulatory Evaluation had failed to show clear, causal chain analysis that an escort tug requirement is an effective solution to the root causes of vessel casualties and oil spills in Buzzards Bay. AWO asserted that the requirement to have a federal licensed pilot monitor the navigation of a tug or tank barge in the RNA is unnecessary when there is already Coast Guard pilotage regulation allowing a Master or other officer moving a tank barge under 10,000 gross tons to serve as the pilot if specific age, physical, knowledge and recency requirements have been met. AWO agreed with the Coast Guard s federalism analysis that the regulations proposed in the NPRM preempt Massachusetts state legislation because they touch categories of regulation reserved to the federal government such as design, alteration, repair, operations, manning and crew qualifications. AWO voiced its support for keeping recommended routes on navigational charts discretionary and applauded the Coast Guard for implementing a VMRS that utilizes Automatic Identification Systems a proven and costeffective way to reduce the potential for navigation errors. For a copy of AWO s comments or for more information, contact Chris Coakley at ccoakley@vesselalliance.com or (703) 841-9300. July 21, 2006 9

REGIONAL REPORTS Atlantic Region ATLANTIC REGION TO MEET IN NORFOLK Please join AWO Atlantic Region members on August 10 at the Sheraton Norfolk Waterside Hotel in Norfolk, VA for AWO s 2006 Atlantic Region summer meeting. Members will meet Thursday morning at 8:00 a.m. for a continental breakfast, followed by a 9:00 a.m. meeting to discuss the important issues that impact the industry, including the towing vessel inspection process, vessel personnel shortage and additional issues of regional concern. AWO is pleased to announce that Coast Guard Atlantic Area Commander VADM Brian Peterman will be addressing the meeting. For more information, contact Marilyn Clark at (703) 841-9300 or online at www.americanwaterways.com/ membership_meetings/index.html. Limited 2006 AWO Letter Sponsorships Still Available AWO is still accepting sponsorship applications for future issues of the 2006 AWO Letter. If you are interested in securing a sponsorship, please contact Traci Fischer at awol@vesselalliance.com. Pacific Region It s Not Too Late to Register for the Pacific Region Summer Meeting! The 2006 Pacific Region Summer meeting will be held August 24 from 10:30 a.m. - 3:00 p.m. Please take this opportunity to visit AWO s Web site at www.americanwaterways.com/membership_meetings/ index.html to register for the upcoming meeting. We are in the process of confirming speakers from the U.S. Army Corps of Engineers and the U.S. Coast Guard. This is a great opportunity to catch up on the issues affecting the region. We ll be discussing issues like the Washington State Oil Transfer and Contingency Plan rules, vessel personnel shortage and the national priorities. Don t miss out on this opportunity! Washington State Hearing Testimony on Oil Transfers and Contingency Plans The Washington State Department of Ecology (DOE) is in the process of hearing testimony and receiving comments to the docket on its proposed oil transfer and contingency plan rules. The department has recently held its final hearing on the proposed rules. Comments will be taken by DOE until 5:00 p.m. PDT July 26. Comments can be sent via mail to: Department of Ecology Oil Transfer & C-Plan Rules P.O. Box 47600 Olympia, WA 98504-7600 Comments can also be faxed to: (360) 407-7288. Please copy AWO on any comments you are submitting at jlewis@vesselalliance.com or via fax at (206) 262-8001. There have been a number of concerns raised by affected parties that the department will have to address during the final rulemaking process. Whether DOE chooses to make any changes to the draft or not, it is legally bound to answer all questions and issues raised during the public hearing process. AWO will be submitting comments and has continued meeting with the department, urging it to rewrite some of the more onerous provisions in the current drafts of the rules. The key goals for AWO have been the need to ensure that members are able to continue to operate in the state, the assurance that vessel crews will not be placed in danger, the need to keep the state from violating authorities expressly granted to the federal government, to eliminate overlapping or redundant regulations and to eliminate provisions that don t make practical sense. For additional information, please contact Jason Lewis, Vice President - Pacific Region, at (206) 262-8019 or jlewis@vesselalliance.com. 10 July 21, 2006

REGIONAL REPORTS Southern Region Louisiana Department of Environmental Quality Proposes Cargo Reporting Rule State Agency Intends to Receive Information about Cargoes as Hurricanes Approach The Louisiana Department of Environmental Quality (LDEQ) has released a draft rule, to be promulgated by the state s Department of Public Safety (LDPS), that would require barge and rail transporters of extremely hazardous cargoes to report the location of vessels located in a parish threatened by a hurricane. Specifically, the latest version of the draft rule would require reporting by tank barge and rail car operators when the following conditions are met: report only during the approach of a Category 3 or higher hurricane and report only those vessels carrying the identified cargoes when those vessels will remain in a potentially affected parish. AWO has expressed to LDEQ a lack of confidence that the proposed rule will serve the interests of the public, the agency, the U.S. Coast Guard or the industry. In addition, the trigger point for reporting is identified in the proposed rule as within 12 hours of an evacuation order given by parish officials and in no way corresponds to Coast Guard Captain of the Port orders for vessels. AWO suggested that the agency coordinate with Coast Guard Sector New Orleans to secure the information it needs, rather than issue a redundant reporting requirement that will burden tank barge operators. At press time, the LDEQ and LDPS had not finalized the language but anticipate doing so in the next several weeks. AWO will continue to propose more efficient methods for securing information during a hurricane. For a copy of the draft rule, including the list of extremely hazardous cargoes subject to the rule, or for questions or comments, please contact Matt Holzhalb, Vice President - Southern Region at mholzhalb@vesselalliance.com or (504) 799-2239. Coast Guard Sector Houston/ Galveston Change of Command On July 14, CAPT William Diehl relieved CAPT Richard Kaser as commander of Coast Guard Sector Houston/Galveston. CAPT Diehl is a 1982 graduate of the U.S. Coast Guard Academy, where he earned a B.S. in Civil Engineering. He holds a M.S. in Naval Architecture, Marine Engineering, and Mechanical Engineering from the University of Michigan. He is also a registered Professional Engineer in the state of Virginia. After several field tours with assignment to the Marine Safety Office (MSO) in Corpus Christi, TX as Chief of Inspections and Response Operations, CAPT Diehl was assigned as Chief, Vessel Safety Branch for the Fourteenth Coast Guard District in Honolulu, HI. Since that assignment, CAPT Diehl served as Coast Guard Liaison Officer to the Panama Canal Authority and worked with the operational managers on all aspects of security, maritime transportation and environmental protection. AWO SOUTHERN REGION TO MEET IN HOUSTON Please join AWO Southern Region members on August 11, at the Hilton Americas in Houston, TX, for AWO s 2006 Southern Region summer meeting. Members will meet Friday morning for a continental breakfast, followed by a meeting to discuss the issues that impact the industry, including towing vessel inspection, vessel personnel shortage, and additional issues of regional concern. In addition to updates on these important issues, the membership will have as its guest speaker RDML Joel Whitehead, the new Commander of the Eighth Coast Guard District. In addition to the meeting, the membership will hold a reception on the evening of August 10, also at the Hilton Americas. For additional information and to register for the 2006 Southern Region summer meeting, please visit AWO s Web site at www.americanwaterways.com/membership_meetings/ index.html. July 21, 2006 11