Military

Mr. Chairman and members of the Committee, on behalf of Governor Warner I want to thank you for this opportunity to present testimony before you. The growing danger presented by the aging vessels of the National Defense Reserve Fleet anchored in the James River has become clear to all of us. This section of the James River is an ecologically diverse and sensitive estuary, which provides critical spawning, nursery and wildlife habitat. Our seafood industry relies on a healthy James River. As the hulls of these ships continue to corrode the likelihood of large oil spills increases. These spills would wreak environmental havoc and require expensive cleanup operations.

Governor Warner underscored this threat last summer by calling upon the Maritime Administration to enter in to a Consent Order with the Commonwealth to remove the oil from the ships and immediately begin scrapping these ships to remove them from the James River. He also called upon the Environmental Protection Agency to establish guidelines that allow environmentally responsible scrapping operations to begin and to help find sources of funding. In truth, the lack of funding and of cost-effective disposal options was the principal factors that had stalled the scrapping effort.

I want to recognize and thank Senator Warner, Congressman Wolf and Congresswoman Davis for their tireless efforts to provide funding to MARAD to restart the ship disposal process. The $31 million provided last year as a result of their efforts is an excellent beginning. As you have already noted, more funding will be needed. But with good planning we can be well on the way to removing the risk from the river.

The Commonwealth's principal goal is to remove the threat of oil spills and environmental damage from the James River. And the disposal effort must be done in an environmentally responsible manner, which protects the safety of workers. This responsibility falls to MARAD. Our expectation is that these criteria will be met and disposal of ships will proceed in a cost effective manner, which maximizes the use of available money.

There are more than 70 non-retention vessels in the James River National Defense Reserve Fleet. At least 25 of these are designated as high-priority vessels, indicating that the risk of oil release is high. These ships need to be disposed of soon or the oil must be removed from their cargo.

MARAD has been keeping the Commonwealth informed of its progress on a limited basis. However, we have repeatedly asked for, and have yet to receive, a comprehensive plan from MARAD for ship disposal based on funds available and anticipated additional revenues. This is important to us to assure that the risk is dealt with in a cost-effective manner. For example, MARAD has consistently resisted removing oil from the vessels because it adds to the overall cost of disposal. While we recognize this we are looking for some certainty that resources will be available to dispose of ships expeditiously and in priority order. Without some assurance that the high priority vessels will be removed in the next 12-24 months, and that funds will be available for continued disposal of remaining ships, we will insist that money be spent immediately to remove the oil from ships so that the primary source of environmental risk is gone.

The Commonwealth's highest priority is to make sure the oil and the ships are removed from the James River so that they no longer pose a threat to our people and environment. As I have said before, we will insist that this be done in an environmentally responsible way. And we look to MARAD to spend their money wisely to achieve a maximum result. To the extent it is cost-effective, we the find the reefing alternative to be attractive because it can result in an ongoing economic return from tourism and, perhaps, lower the per ship disposal cost. We count on the Environmental Protection Agency to establish guidelines that protect the environment and allow scrapping to proceed effectively. We need to recognize the ships already pose a significant environmental risk and must be removed. And we look to the United States Coast Guard to assure the ships are transported safely to their destination.

I thank you again for your attention to this critical matter. We ask for your assistance to provide continuing appropriations to MARAD to complete the task of ship disposal. Thank you for your time and attention.