WHAT THE COAST GUARD RESERVE DOES The Coast Guard Reserve, as well as the The Department of Defense (DOD) Reserve Components, was chartered to meet a single national defense mission. With direction from the Congress in the early 1970s, the concept of training for wartime mobilization through "augmentation" of Coast Guard peacetime missions evolved. This broader tasking of the Reserve was legislatively reinforced in the 1972 enactment of involuntary recall authority for the Secretary of Transportation, allowing recall of Coast Guard Reservists for domestic emergency response. This is unique among the armed forces. Though peacetime augmentation was increasingly employed in support of the daily work of the Coast Guard throughout the 1970s and '80s, sizing of the Reserve continued to be based solely on military mobilization requirements. However, in 1994 the Commandant mandated use of the Reserve to meet any Coast Guard mission. The Coast Guard has undertaken unprecedented streamlining over the last several years, achieving a significant reduction in active-duty forces with increased efficiency and cost effectiveness. To achieve these efficiencies, Reservists were integrated into dayto-day Coast Guard operations to ensure its ability to maintain ongoing services despite the dramatic downsizing of the active-duty work force. Most Reserve units were eliminated, and Reservists were reassigned to active-duty units. This integration permits Reservists to enhance their training and value while assisting fulltime staff during work load surges. Integration of Reservists into active-duty commands forged one force, one chain of command, and one administrative system for the Coast Guard, thereby eliminating redundant and expensive Reserve administrative overhead. "perform a detailed study of Reserve roles and missions." This study was conducted by the Operations and Marine Safety organizations of the active-duty Coast Guard, which is supported by the Reserve, and was the most comprehensive analysis of Coast Guard Reserve capabilities that has ever been undertaken. The study was two-pronged. First it determined which duties Reservists should perform, and, second, it quantified the number of Reservists required to support Coast Guard response for military and domestic contingercies. The study resulted in: I 11,204 Reservists for the military contingencies. This requirement is provided for in its entirety, since the Coast Guard Reserve's preeminent reason for being is to meet the established national defense tasking. 896 Reservists for the domestic emergency requirement. This estimate assumes that these emergencies and military contingencies will not occur at the same time. The study team took the conservative approach of reducing the staffing requirement to a level equal to the single worst domestic case we have experienced-the 1990 Alaska Oil Spill. 193 Reservists for special augmentation requirements such as Great Lakes stations' summer operations, space shuttle launch support, and Coast Guard investigative services. A Selected Reserve of 12, 293 is required to ensure the optimal return of investment for the taxpayer. This allows the Coast Guard to meet its national security commitment, while providing mission-critical augmentation of the activeduty Coast Guard and handling a serious domestic emergency. During the defense buildup of the 1980s, the strength of the DOD Reserve Components was increased by about 28 percent while the Coast Guard Reserve strength increased only 7 percent. Since the end of the Cold War, Coast Guard Selected Reserve strength has been reduced by 36 percent, from 12,500 to 8,000. So it is clear that the Coast Guard Reserve is too small to meet current requirements. Mr. GILCHREST. Thank you very much, Captain Becker. Mr. Nekvasil. Mr. NEKVASIL. Thank you very much for the opportunity to address this subcommittee. Lake Carriers' Association represents 11 American corporations, operating 58 U.S. flag vessels exclusively on the Great Lakes. During the recently concluded 1997 navigation season, our members and other Jones Act carriers on the lakes moved more than 125 million tons of dry and liquid bulk cargo, the most in any navigation season since the early 1980s. While our members earn their living carrying cargo, the value of the Jones Act trades on the lakes far extends beyond the ships or the 2,500 sailors who man them. The efficient movement of Minnesota and Michigan iron ore supports more than 100,000 steel mill jobs and 8,000 miners in the Great Lakes Basin. The low-cost delivery of low-sulfur coal keeps industrial and residential bills as low as possible. We have many partners in accomplishing this transportation marvel, but none is more important than the United States Coast Guard. At the beginning and the end of the season, it's the Coast Guard that keeps the shipping lanes free of ice. Once the ice clears, it's the Coast Guard that places and maintains the Aids to navigation that keep the ships on a safe course. As this subcommittee well knows, the budgetary realities of recent years have forced the Coast Guard to do more with less. I can assure you that 9th District personnel have performed their many duties with the same high level of commitment and expertise, even though their ranks and resources have been reduced. Lake Carriers is deeply concerned that the preceding glowing report will be dimmed in the not-too-distant future by the administration's proposal to institute a navigation assistant tax. Although the Office of Management and Budget terms these new taxes user fees, let's not kid ourselves. Our industry, and therefore our customers and their employees will be burdened with additional taxes if this proposal becomes law. The Navigation Assistance Tax is like the iceberg that sank the Titanic. At first sighting it seems small and potentially harmless, but it's what lies below the waterline that could damage, or even sink waterborne commerce on the Great Lakes and other waterways. In its first full year the Navigation Assistance Tax would raise $176 million, but will the next year or years hold? Look at the tax that funds the Harbor Maintenance Trust Fund; it tripled overnight, and has never come down, even though it is generating a surplus year after year. The Navigation Assistance Tax should be rejected as poor public policy to start with, for it takes too narrow a view of Coast Guard functions. Earlier I stated that Aids to navigation help keep ships on a safe course, but a safe transit protects the marine and surrounding environment. And why must commercial navigation bear all the pain? Aids to navigation are used by fishermen, pleasure boaters, crews and gaming vessels, ferries, as well as by government vessels from the Coast Guard and the Navy. Since not all the users are in |