Military

Chairman Allen and members of the Subcommittee, thank you for the opportunity to discuss the issues related to the disposal of obsolete vessels in the National Defense Reserve Fleet. As Chairman of the House of Delegates' Committee with responsibility for oversight of Virginia natural and historic resources, my remarks will focus on the environmental aspects of having these vessels on the waters of the Commonwealth. First, Mr. Chariman, let me extend my appreciation for your personal efforts and the rest of the Virginia delegation in securing the initial commitment of $31 million for remediation efforts. But, I think we all would acknowledge that properly completing any clean-up effort by 2006 will take a significantly greater commitment of federal funds.

The James River Ghost Fleet is seen by many in the Commonwealth as the greatest threat to the environment of the Lower James River. These ships contain in excess of 7.8 million gallons of oil and significant amounts of PCBs, mercury, asbestos, and lead paint. According to our Department of Environmental Quality, since 1998 at least eight oil spills have been linked to these ships. We worry that a spill of thousands of gallons could result in damage to fishery habitats, wetlands, aquatic life, waterfowl, our seafood industry, and tourism. I would also note that our seed oyster beds are concentrated in the James. As Senator Warner has stated, and I find myself with a similar reaction, that "everytime I hear that a hurricane is approaching the coast, I think of the fleet."

One indication of the potential threat represented by the fleet was described in the Maritime Administration's worst-case scenario report. The report commissioned by the agency, at the request of our Department of Environmental Quality, concluded that if just two of the more dilapidated ships broke apart due to a storm, 50 miles of the river and shoreline would be contaminated. The cost of clean-up could exceed $35 million. Even as recently as May of this year, oil leaked from one of the ships, which washed up on a 400-foot stretch of shore near Fort Eustis. Luckily only a small amount of oil was involved.

Mr. Chairman, I know you recognize the importance of protecting this vast tributary of the Chesapeake Bay is not without some historical context. We appreciated your interest and efforts as Governor to find common sense solutions to our environmental challenges. Almost 30 years ago you'll remember the upper regions of the James just south of Richmond experienced what some have characterized as its greatest environmental insult as a result of the Kepone contamination. We are still trying to recover from that disaster. So, many Virginians are again concerned about the health of their river, seeing the current situation as a "ticking time bomb," which must be handled with some sense of urgency.

It is regrettable that this situation has gotten to the point where Virginia's Department of Environmental Quality has had to issue a series of Notice of Violations, the latest on June 18, 2003, for the May 13th oil release from the Mormac Wave. I understand that Maritime Administration has refused to sign any consent order to resolve the environmental issues claiming they cannot waive sovereign immunity. I hope this can be resolved without having to go to court.

Virginia's position has been that we want the risk removed from the river. That means if the funds are limited and full funding is not available, then some of the dollars should go to removing the oil from the remaining ships. I understand that MARAD (Maritime Administration) prefers not to remove the oil first because it increases the overall costs. The state has given MARAD the time to develop a plan for using available funds before taking further legal action. I have been informed by the Warner Administration that as long as MARAD's plan addresses the risk and shows an ability to completely mitigate the problem, we will be satisfied. Addressing risks involves things like removing ships, with those most likely to leak going first, and some demonstration that there will be a sustained effort to scrap others.

But, I am encouraged that our Secretary of Natural Resources, Tayloe Murphy, has communicated his desire to work with MARAD in addressing this environmental threat represented by the fleet. While I think the ultimate responsibility for the problem rests with the federal government, I am convinced that Virginia, working with the federal government, can develop an effective strategy for resolving this problem.

In summary, Mr. Chairman, I thank you for your leadership in holding this hearing. I believe it will help bring this issue into focus as the deadline for action approaches to get the funds needed to complete this clean-up effort.

Thank you, Mr. Chairman.