Innovation Tax Credit Act of 2008

I thank the gentleman for yielding. I especially want to thank the chairman of the Subcommittee on Coast Guard and Maritime Affairs for his leadership, absorbing so quickly in such a short period of time the complexities under the jurisdiction of this subcommittee. I also would like to express my appreciation to the gentleman from Ohio (Mr. LaTourette) for his partnership and working so diligently to bring this important legislation to the floor.

Mr. Speaker, this is an international issue. In fact, just moments ago, just before arriving to the floor, I had a meeting with a representative of the transportation ministry of the European Union. He is the deputy in charge of the Transport Ministry of the European Union, and we were discussing the MARPOL legislation and the need for international participation and cooperation on these issues.

In fact, the European Transport Ministry has established a new section dealing with maritime pollution issues which go beyond that of the subject of this legislation to include pollution at sea from accidents to maritime vessels, the first most serious of which was the Torrey Canyon disaster in the English Channel in 1967, which alerted all of the maritime sector to the need for double-hulled vessels, to the need for international standards on shipping.

We have moved beyond the water pollution issue, ocean pollution issue, which continues to be a matter of great concern, to that of air pollution, which is the subject of this legislation, the discharge of nitrogen oxides from maritime diesel engines, the sulfur content of diesel fuel, ozone-depleting substances, volatile organic compounds and standards for shipboard incinerators, fuel oil quality, platforms for drill rigs at sea. All of these are the subject of this legislation and of the International Maritime Pollution Convention.

At the beginning of next week, our committee will travel to Brussels to meet with members of the European Transport Ministry and members of the European Parliament Transport Committee to discuss this issue and other issues including emissions from aircraft at altitude, which are the subject of the ongoing discussions in the international community on emissions trading and steps that the international community together can take to reduce impact on factors that are accelerating global climate change.

This legislation, in other words, is not just a relatively noncontroversial matter that we attempted to accomplish in the last Congress; but for various reasons, we were not able to do so with the other body. But this is one step in a global issue of international concern that brings the United States and its maritime partners into cooperation on matters that involve air quality at sea.

I want to thank the gentleman from Maryland, the chairman of the subcommittee, for his diligent work, and Mr. LaTourette and Ranking Member Mica for their participation and working with us to bring this legislation to the floor. I hope that the other body will cooperate promptly and move this bill to the President.

We have incorporated recommendations by the administration in this legislation to accommodate their interests.

Mr. Speaker, although it has been discussed previously before I reached the Chamber, I just want to be sure to emphasize the important change to allow EPA to enforce the standards in addition to the Coast Guard. These are changes requested by the administration. The Coast Guard acknowledging that EPA has far more experience than does the Coast Guard on air quality emission standards.

It is important for EPA to develop standards jointly with the Coast Guard because, on the Coast Guard side, they have more knowledge and understanding and expertise in vessel safety issues that have to be incorporated into any air quality emission standards that may be promulgated.

I want to emphasize this role of EPA, an important step forward, and I am very pleased the administration was emphatic in asking for an EPA role, and Coast Guard similarly has been very insistent on including EPA in this process. I think this will, overall, strengthen the result of the legislation that we are considering today.

Mr. Speaker, I rise today to strongly support H.R. 802, the ``Maritime Pollution Prevention Act of 2007''. The gentleman from Maryland, Mr. Cummings, and I introduced this legislation in February to provide the U.S. Coast Guard and the Environmental Protection Agency (``EPA'') with the legal authority they need to implement Annex VI of the International Convention for the Prevention of Pollution from Ships.

Global climate change is a critical issue, not only for the United States, but for every man, woman, and child that live on this planet called Earth. The international maritime community has recognized this problem and developed an international convention to help address air pollutants from diesel ships.

For many years, the International Maritime Organization, an organization of the United Nations, has been developing international standards to prevent pollution from ships that ply the world's oceans. The international convention is called the International Convention

for the Prevention of Pollution from Ships, 1973. The United States has implemented these environmental laws by enacting and amending the Act to Prevent Pollution from Ships (``APPS'').

On May 19, 2005, Annex VI of that Convention came into force internationally. Annex VI limits the discharge of nitrogen oxides from large marine diesel engines, governs the sulfur content of marine diesel fuel, prohibits the emission of ozone-depleting substances, regulates the emission of volatile organic compounds during the transfer of cargoes between tankers and terminals, sets standards for shipboard incinerators and fuel oil quality, and establishes requirements for platforms and drilling rigs at sea. In April 2006, the Senate ratified this treaty by unanimous consent.

H.R. 802 is the necessary implementing legislation for Annex VI of that Convention. This legislation will give the Coast Guard and the Environmental Protection Agency the authority they need to develop the U.S. standards and to enforce these requirements on the thousands of U.S.- and foreign-flag vessels that enter the United States each year from overseas.

Everyone here recognizes the challenge that the world faces in combating global climate change. We must pursue all avenues in the effort to turn around the rising temperatures on this planet. I am pleased that the International Maritime Organization stepped up to the plate and developed amendments to the International Convention for the Prevention of Pollution from Ships to regulate air pollution from ships.

Last year, the Committee on Transportation and Infrastructure reported H.R. 5811, the MARPOL Annex VI Implementation Act of 2006, favorably to the House. This bill was subsequently added to H.R. 5681, the Coast Guard Authorization Act of 2006, and passed the House on October 28, 2006.

H.R. 802 is very similar to H.R. 5811, but includes changes to allow the EPA to enforce the standards, in addition to the Coast Guard. These changes were requested by the Administration. The Coast Guard acknowledges that the EPA has far more experience than they do on air quality emission standards. However, it is important for the EPA to develop the standards jointly with Coast Guard because of the Coast Guard's expertise over vessel safety issues.

During Committee consideration of the bill, the Committee adopted an amendment in the nature of a substitute that clarifies that MARPOL Annex VI will only apply to vessels in the United State's 200-mile Exclusive Economic Zone when the Executive Branch determines that MARPOL Annex VI is customary international law. In addition, the amendment clarified that MARPOL Annex VI will not apply to public vessels owned by the U.S. Government until the head of the agency that operates the vessels agrees with the EPA Administrator that MARPOL VI should apply to that agency's vessels.

The amendment in the nature of a substitute that the House considers today further clarifies that the application of MARPOL VI to the U.S. Exclusive Economic Zone and territorial sea takes effect when it becomes customary international law; requires EPA to consult with a State when establishing an emission area; and requires the regulations regarding reception facilities to be jointly prescribed by EPA and the Coast Guard.

I would like to take the opportunity to thank our new Chairman of the Subcommittee on Coast Guard and Maritime Transportation, Mr. Cummings, for his help in developing this bill.

I strongly urge my colleagues to support passage of H.R. 802, the Maritime Pollution Prevention Act of 2007.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 802) to amend the Act to Prevent Pollution from ships to implement MARPOL Annex VI, as amended.

Mr. Speaker, I yield myself such time as I may consume.

As the chairman of the Coast Guard and Maritime Transportation Subcommittee, I am pleased that the first piece of maritime legislation to be brought to the floor by the Committee on Transportation and Infrastructure is a bill that will enable us to combat pollution emitted by ships.

The Maritime Pollution Prevention Act of 2007, H.R. 802, would institute the legal changes needed to bring the United States into compliance with the International Convention for the Prevention of Pollution from Ships, the MARPOL Convention Annex VI.

MARPOL Annex VI limits the emissions from ships of sulfur oxide and nitrogen oxide, which are ozone-depleting substances. The Annex VI treaty was ratified by the Senate in April 2006 and came into force internationally in May of 2006.

According to the United States Department of Transportation, ocean- going ships transport 80 percent by weight of all goods and services moved into and out of the United States. The volume of trade through U.S. ports is only expected to increase.

In fact, the United States Maritime Administration estimates that the total volume of trade handled by United States ports will double in the next 15 years. Unfortunately, the ships on which we rely to carry the trade that keeps our economy growing release excessive amounts of pollution.

In fact, according to a very disturbing study released just last week by the International Council on Clean Transportation, the sulfur oxide emissions from ocean-going ships may exceed the total amount of such emissions produced by cars, trucks and buses in the world. Further, the International Maritime Organization, also known as IMO, estimates that as much as 80 percent of all ship emissions may be released within 250 miles of shore.

That means that much of the pollution emitted by ships is affecting the residents of port communities such as my hometown of Baltimore. The emissions of sulfur oxide from ships are also high because the bunker fuel used in ships may contain as much as 3 percent sulfur content by weight, or an astounding 28,000 parts per million of sulfur.

By comparison, the new ultralow sulfur diesel fuel that is mandated for use in trucks in most of the United States is not allowed to contain more than 15 parts per million of sulfur. Given the nature of shipping, it is not possible for any single nation to unilaterally regulate emissions produced by ships.

Instead, regulations applied to ocean-going vessels are usually developed through negotiations conducted by IMO, a specialized agency of the United Nations responsible for developing multinational conventions regulating international shipping.

The member states of IMO developed the International Convention for the Prevention of Pollution from Ships treaty, known as MARPOL, which was adopted in 1973. This groundbreaking convention has already successfully limited all pollution and pollution from ships' garbage and sewage. The most recent annex to MARPOL convention, Annex VI, sets limits on emissions from ships of sulfur oxide and nitrogen oxide. This annex also establishes specific limits on the sulfur content of fuel oil used in ships.

The measure before us today, H.R. 802, is a bipartisan measure that would bring United States law into compliance with the requirements of MARPOL Annex VI. The substitute amendment clarifies that the MARPOL Annex VI amendments apply only to vessels in the United States' exclusive economic zone once Annex VI becomes customary maritime law.

The amendment also requires the EPA to consult with a State when establishing an emission area and requires that regulations regarding reception facilities be jointly prescribed by the Environmental Protection Agency and the United States Coast Guard. Through our participation in Annex VI, the United States will contribute to a global effort to control a large source of ozone-depleting emissions that has been virtually unregulated to this point.

Mr. Speaker, our natural resources are our most precious gifts, and we are merely the stewards of these resources, responsible for preserving them for generations yet unborn.

When you go into Sea World and Disney World, one of the things the signs that are written there say, ``We do not inherit our environment from our parents; we borrow it from our children.''

I applaud Chairman Oberstar for his outstanding leadership on this issue and for his commitment to implementing measures that will help us combat the release of emissions from mobile sources that are contributing to global warming.

I also thank our ranking member, the very distinguished gentleman, Congressman Mica, and the ranking member of our subcommittee on Coast Guard and Maritime Transportation, Congressman LaTourette, for their leadership in helping us to get this very, very important bill to the floor of the House so that we can send it on to the Senate.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I am very pleased to yield to the distinguished chairman of the Transportation Committee, Mr. Oberstar, such time as he may consume.

The gentleman is absolutely correct.

Mr. Speaker, I yield myself such time as I may consume.

Again, I want to thank Chairman Oberstar and certainly Ranking Member Mica. But I also thank you very much, Mr. LaTourette, for your cooperation in moving this bill along.

Mr. Speaker, I yield 2 minutes to Mr. Oberstar.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 802, the Maritime Pollution Prevention Act of 2007. H.R. 802 was introduced by our full committee chairman, Jim Oberstar, and is similar language that was approved by voice vote in the House during the last Congress. I say ``similar to'' because there are some differences, and we noted those differences at the time of the markup of this legislation.

I want to thank the chairman of the full committee, Mr. Oberstar, and I also want to thank the distinguished chairman of our subcommittee, Mr. Cummings, for working with me and others on my side of the aisle to address our concerns with the introduced version of the bill.

The bill will implement international requirements for air emissions from

ships for purposes of U.S. law. Under this bill, the Coast Guard and the Environmental Protection Agency will be required to develop regulations that establish standards for emissions of ozone-depleting substances and other pollutants as well as marine fuel oil quality that are used in U.S. waters. I am happy to see that we are considering this legislation that will reduce our emissions from vessels operating in U.S. waters this early in the year.

Again, I want to thank Chairman Oberstar and Chairman Cummings for working with us to improve the bill. I urge our colleagues to support this bill.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I might consume for the purposes of engaging in a colloquy with the distinguished chairman of the subcommittee.

Chairman Cummings, if I could clarify, through this colloquy, the language that was included in sections 4 and 5.

First, section 4 authorizes the Environmental Protection Agency, in consultation with the Coast Guard, to designate special areas where vessels would be required to comply with vessel emission regulations under Annex VI to the MARPOL Convention. This section also directs the EPA to consult with a State if such an area is established in an area that is under the jurisdiction of that State.

Is it the chairman's understanding that the committee does not intend to require the agencies to consult with a State or to give a State any authority over a special area that is not wholly established outside of the three or, in some cases, nine nautical mile belt of waters that fall within the jurisdiction of a State?

I thank the chairman.

Additionally, Mr. Chairman, section 5 of the bill grants the EPA certain authorities to establish, administer and enforce regulations to implement MARPOL Annex VI. Is it the chairman's understanding that this language does not replace or reduce the Coast Guard's parallel authorities to administer and enforce regulations to implement Annex VI or other regulations under the Act to Prevent Pollution from Ships?

I thank the chairman very much for his response. And, again, my congratulations to both chairmen, the chairman of the full committee, Mr. Oberstar, and the chairman of the subcommittee, Mr. Cummings, for bringing this legislation forward. And, again, my thanks for working with us to make the slight improvements to the bill.

Mr. Speaker, I yield back the balance of my time.

Madam Speaker, I rise today, together with the Chairman of the Subcommittee on Coast Guard and Maritime Transportation, Mr. Cummings, to introduce the ``Maritime Pollution Prevention Act of 2007''.

For many years, the International Maritime Organization, an entity of the United Nations, has been developing international standards to prevent pollution from ships that ply the world's oceans. The international convention they developed is called the International Convention for the Prevention of Pollution from Ships, 1973, The United States has implemented these environmental laws by enacting and amending the Act to Prevent Pollution from Ships (APPS).

On May 19, 2005, Annex VI of that Convention came into force internationally. Annex VI limits the discharge of nitrogen oxides from large marine diesel engines, governs the sulfur content of marine diesel fuel, prohibits the emission of ozone-depleting substances, regulates the emission of volatile organic compounds during the transfer of cargoes between tankers and terminals, sets standards for shipboard incinerators and fuel oil quality, and establishes requirements for platforms and drilling rigs at sea.

This bill is the necessary implementing legislation for Annex VI of that Convention. This legislation will provide the Coast Guard and the Environmental Protection Agency the authority that they need to develop U.S. standards and enforce these requirements on the thousands of U.S.- and foreign-flag vessels that enter the United States each year from overseas.

Everyone here recognizes the challenge that the world faces in combating global climate change. We must pursue all avenues in the effort to turn around the rising temperatures on this planet. I am pleased that the International Maritime Organization stepped up to the plate and developed amendments to the International Convention for the Prevention of Pollution from Ships to regulate air pollution from ships.

Last year, the Committee on Transportation and Infrastructure favorably reported H.R. 5811, the MARPOL Annex VI Implementation Act of 2006. This bill was subsequently added as an amendment to H.R. 5681, the Coast Guard Authorization Act of 2006, and passed the House on October 28, 2006.

The bill that Mr. Cummings and I introduce today is very similar to H.R. 5811. Pursuant to requests by the Administration, the bill allows the Environmental Protection Agency (``EPA'') and the Coast Guard to enforce the standards. The Coast Guard acknowledges that the EPA has far more experience than it does on air quality emission standards. However, it is important for the EPA to develop the standards jointly with Coast Guard because of the Coast Guard's expertise regarding vessel safety issues.

I am hopeful that the Committee on Transportation and Infrastructure will report this bill to the House very quickly and that the House will have an opportunity to consider the bill in the coming weeks.

I would like to take the opportunity to thank our new Chairman of the Subcommittee on Coast Guard and Maritime Transportation, Mr. Cummings, for his contributions in developing this bill.

I urge my colleagues to join us in supporting the Maritime Pollution Prevention Act of 2007.