Expanded MSP included in proposed 2004 Defense authorization bill
After two days of intensive markup, the House Armed Services Committee approved a fiscal year 2004 Defense authorization bill late May 14 that includes language to expand the Maritime Security Program.
Committee chairman, Rep. Duncan Hunter, R-Calif., made good on his promise to include the MSP reauthorization and expansion language in the bill (H.R. 1588) during the markup session.
MSP, established by the 1996 Maritime Security Act, expires on Sept. 30, 2005. However, efforts have been underway since last year to reauthorize and increase the number of ships in the program.
“Changes in the industry and DOD requirements dictate that legislation address these issues now,” the House Armed Services Committee said. “While (MSP) does not expire until 2005, the committee believes that shipowners and operators should be given an adequate period to plan for changes in DOD requirements.”
MSP provides the federal government with immediate access to 47 military-useful commercial container ships and roll-on/roll-off U.S.-flag vessels during times of war or national emergency. The government pays the vessel operators $2.1 million per ship to help offset the higher U.S.-flag operations costs.
“While the current program has worked reasonably well, the Maritime Security Program of 2003 includes a shipbuilding component to provide tanker support to our deployed forces, and grants greater flexibility for DOD to select the types of vessels it would likely need during a contingency,” the committee said.
The proposed fiscal year 2004 Defense authorization bill, if approved, would:
* Increase the number of participants from 47 ships to 60 ships.
* Provide financial assistance to construct five new product tankers in the United States capable of transporting military petroleum shipments during war.
* Extend the current program for 10 more years.
* Create a 30-month period to replace older vessels with newer Defense-approved and militarily useful ships.
* Enhance the “priority selection system” to favor U.S. citizen vessel owners and operators.
* Add Defense certification requirements on new operators.
* Increase the annual payment to MSP vessel operators from $2.1 million per year to $2.6 million per year.
Also in the proposed Defense authorization bill, the House Armed Services Committee recommended $163.9 million for the Maritime Administration. That’s $43.6 million more than the Bush administration’s budget request for the agency.
In addition, the committee recommends $104.4 million for MarAd’s operations and training programs, $39.5 million for the agency’s vessel construction loan guarantee program, and $20 million for the disposal of obsolete ships in the National Defense Reserve Fleet.