rescue small boats, as well as the renovation and improvement of buoy tenders, other boats, and small cutters.

A similar unsatisfactory condition exists in the air fleet, where reliability is directly related to the question of life or death for persons in distress. After long delay, a contract for new medium-range surveil lance (MRS) aircraft was awarded in January of last year, with an initial purchase of 12. In this authorization, an additional 12 are provided with the total procurement needs set at 41, leaving 17 to be provided in future years. Last year, also, funds were provided for the procurement of 10 short-range recovery helicopters (SRR). Because of the needs of other projects, that procurement was temporarily delayed. However, it is now moving forward, and this authorization provides for five additional such helicopters.

Other issues considered by the committee related to Coast Guard needs in icebreaker escort assistance for winter navigation in northern areas, to the initiation of new measures related to pollution prevention and cleanup, and to a more dedicated effort to providing adequate equipment to control offshore oil spills, particularly in view of the forthcoming activity for oil exploration off the Atlantic coast.

In other areas that need early attention, the committee notes that rapid technological advances are occurring in ship sensors and platforms. In that connection, it sees significant potential in future surveillance techniques which will in part supersede present capabilities, and envisions that, for instance, satellite-based radio-navigation and maritime communication systems will ultimately supersede their terrestrial counterparts. The committee expects the Coast Guard to exploit these possibilities and to take an active role in planning their implementation.

Likewise, the committee feels that advances in hull design, both nondisplacement and nonconventional, must be examined and evaluated in planning for the future acquisition of Coast Guard "platforms." Furthermore, the Coast Guard should, together with other agencies, keep abreast of the experimentation with these platforms and must explore every opportunity to gain knowledge and experience in their tactics and operational performance.

For comparative purposes, the Presidential budget request for items in this authorization bill amounted to $1,281,611,000, to which the committee added $136,611,000, an increase of approximately 9 percent. This increase may be somewhat misleading, since approximately onehalf of the increase is in the authorization of a replacement icebreaker for the Great Lakes, which, as will be discussed later, may be funded this year, making this new authorization unnecessary.

In the authorization for Coast Guard operating expenses which. simply stated, supports the Coast Guard's day-to-day operations, the committee increased the Presidential request of $944,800,000 to $958.186,000, a difference of $13,386,000, or 1.4 percent.

In the authorization for acquisition, construction, and improvement of vessels, aircraft, shore units, and aids to navigation, the committee increased the Presidential request of $279,208,000 to $379,954,000, a difference of $100,746,000, or 36 percent.

In the authorization for alteration or removal of bridges, the committee endorsed the Presidential request of $34,603,000 and noted with approval the change of policy whereby the Office of Management and

Budget apparently intends to go to a full funding process for such bridge activities, instead of the partial, year-to-year funding which has represented previous requests.

In the authorization for research, development, test, and evaluation, the committee increased the Presidential request of $20 million to $25 million, a difference of $5 million, or 25 percent.

Operational efficiency presupposes an adequate research and development base to improve mission performance now and in the future. The committee is firm in its belief that this approach alone will yield the greatest return in the expenditure of taxpayers' dollars. Neglecting the future by ignoring adequate research and development, in order to maintain existing performance levels, can only lead to eventual system paralysis.

In connection with the $5 million increase, the committee intends that the highest priority be given to immediate and dedicated efforts to the development of more effective high seas oil spill cleanup equipment, a need, which may be said, was underscored only last month by the breakup of the Amoco Cadiz on the French coast and the subsequent inundation of the area with massive oil pollution.

The committee, in reviewing Coast Guard research and development pollution control efforts over the past few years, noted that, in the early 1970's, the Coast Guard made a major step forward in developing the so-called ADAPTS, a system whereby air deliverable storage bags, containment devices, and pumping systems were developed and acquired which would enable the Coast Guard to remove oil from grounded tankers. Elements of that system were also usable in removing oil from the surface. However, the capability of the system is limited to ocean conditions of 5-foot seas and 20-knot winds, and it is simply not adequate to perform in the conditions that prevail in the North Atlantic the majority of the time.

Since the development of ADAPTS, the research and development antipollution effort has been directed to other problems, and there has been no improvement in high seas cleanup capability. It is noted that the fiscal year 1979 budget proposes a project which will study the feasibility to contain and remove oil in high seas situations up to 12 feet. While the committee concurs that this study be undertaken, it believes that it should be done expeditiously and that, upon its completion, the Coast Guard should be prepared to move immediately forward in this area. Too much time should not be spent on analyzing feasibility at the expense of practical application.

FINANCIAL ASSISTANCE TO STATE BOATING SAFETY PROGRAMS

In the authorization for financial assistance to State boating safety programs, the committee increased the Presidential request of $3 million for fiscal year 1979 and nothing for fiscal year 1980 to $10 million for each of those years.

This assistance, provided in the form of matching grants to participating States, has been instrumental in encouraging states to adopt and expand safety programs for recreational vessels which have helped reduce the fatality rate in recreational boating activities. Despite this progress, many of the States can make substantial improvements in their programs. The committee therefore concluded that a

phaseout of Federal financial assistance would be premature at this time, and has reauthorized that assistance for an additional 2 years.

ESTIMATED COSTS

The Congressional Budget Office has submitted to the committee its estimate on this bill pursuant to section 403 of the Congressional Budget and Impoundment Act of 1974. The CBO submission of May 8, 1978, follows:

CONGRESSIONAL BUDGET OFFICE,

U.S. CONGRESS, Washington, D.C., May 11, 1978.

Hon. HOWARD W. CANNON, Chairman, Committee on Commerce, Science, and Transportation, Dirksen Senate Office Building, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: Pursuant to section 403 of the Congressional Budget Act of 1974, the Congressional Budget Office has prepared the attached cost estimate for H.R. 11465, with amendments, a bill to authorize appropriations for the U.S. Coast Guard for fiscal year 1979, and for other purposes.

Should the committee so desire, we would be pleased to provide further details on the attached cost estimate.

Sincerely,

JAMES L. BLUM

(For Robert A. Levine, Deputy Director).

CONGRESSIONAL BUDGET OFFICE-COST ESTIMATE

1. Bill number: H.R. 11465.

2. Bill title: A bill to authorize appropriations for the U.S. Coast Guard for fiscal year 1979, and for other purposes.

3. Bill status: As ordered reported by the Senate Committee on Commerce, Science, and Transportation, April 25, 1978.

4. Bill purpose: The bill authorizes appropriations of approximately $1.4 billion for the U.S. Coast Guard for fiscal year 1979 and $10 million for fiscal year 1980. In addition, it authorizes a level of 39,331 active-duty personnel and 5,445 military training students for fiscal year 1979. The Coast Guard is also authorized to enter into a long-term lease (in excess of 1 year) for purposes of relocating the Quillayute River Coast Guard Station.

The costs of this bill fall within budget subfunction 403.

6. Basis of estimate: The authorization level is that specified in the bill. Projected spendout rates for the accounts specified in the bill were applied to the line item authorization levels to estimate future outlays.

7. Estimate comparison: None.

8. Previous CBO estimate: On March 17, 1978, the Congressional Budget Office prepared a cost estimate for the version of H.R. 11465 as ordered reported by the House Committee on Merchant Marine and Fisheries. The Senate version authorizes $10 million more for fiscal year 1979 than the House bill and $10 million in fiscal year 1980 for the State safe boating program.

9. Estimate prepared by: Patrick J. McCann (225-7760). 10. Estimate approved by:

JAMES L. BLUM, Assistant Director for Budget Analysis.

REGULATORY IMPACT STATEMENT

In compliance with paragraph 5 of rule XXIX of the Standing Rules of the Senate, it is hereby stated that the bill will have no additional direct regulatory impact. After due consideration, the committee has determined that the changes in existing law, contained in the bill, will not substantially increase or diminish any present regulatory responsibilities owed to the Coast Guard.

SECTION-BY-SECTION ANALYSIS

SECTION 1

This section consists of four classes which together authorize appropriations for necessary expenses of the U.S. Coast Guard for fiscal year 1979. Those clauses relate to operation and maintenance of the Coast Guard (OE); acquisition, construction, rebuilding, and improvement of aids to navigation, shore facilities, vessels, and aircraft (A.C. & I.); alteration or removal of obstructive bridges over navigable waters; and research, development, test, and evaluation (R.D.T. & E).

(a) Operating expenses.-The first clause of section 1 provides authorization for an appropriation of $958,186,000 for the operation and maintenance of the Coast Guard, including expenses related to Capehart housing debt reduction of $214,904. This represents an increase of $13,386,000 above the Presidential request.

The Coast Guard employs multipurpose vessels, aircraft, and shore units, strategically located along the coasts and waterways of the United States and in selected overseas areas. Its programs, divided by activities, include search and rescue, aids to navigation, marine safety, marine environmental protection, enforcement of laws and treaties, marine science and polar operations, and military readiness. The original request for operating expenses to carry out these programs was for search and rescue, $291,962,000; for aids to navigation, $238,321,000; for marine safety, $145,911,000; for marine environmental protection, $42,307,000; for enforcement of laws and treaties, $105,794,000; for marine science and pollution operations, $78,115,000 and for

military readiness, $42,175,000. The largest portion of increases over fiscal year 1978 involves nondiscretionary costs, such as increased pay costs, increase in cost of goods and services, operation of newly acquired facilities, and increases in operational capability. By adopting H.R. 11465, the committee amended the request by adding $2,500,000 for the continued operation of the USCGC Duane (WHEC-33); $5,164,000 to obviate a proposed reduction in staff and support personnel; $1,500,000 for needed personnel in search and rescue; $1 million for additional port safety personnel to improve the inspection of shoreside facilities handling oil and other hazardous substances; $1.150,000 for additional personnel to continue an aggressive tanker safety and marine safety boarding program and improve inspection of Outer Continental Shelf facilities; $1,200,000 for additional pollution law enforcement personnel; $500,000 for necessary personnel to inaugurate the vessel traffic system scheduled to commence later this year in New York; and $372,000 for personnel needed to increase necessary training for boatswain's mates. These increases, in the opinion of the committee, represent the absolute minimum needed for the Coast Guard to carry out its missions effectively.

(b) Acquisition, construction, and improvement (A.C. & I.).—The second clause of section 1 provides authorization of $379,954,000 for the acquisition, construction, rebuilding, and improvement of aids to navigation, shore facilities, vessels, and aircraft, including equipment related thereto. It constitutes an increase of $100,746,000 above the Presidential request.

The specific items contained in the authorization are as follows:

VESSELS

Medium-endurance cutter (WMEC) replacement

Seven medium-endurance cutters and six high-endurance cutters will have reached the end of their useful service life by 1981. These cutters are technically obsolete in that they are not equipped with flight decks for helicopter operations, their engineering plants are costly to maintain in view of their age, critical replacement parts are extremely difficult and expensive to procure, and their habitability is substandard for present day sea service. This authorization reflects a continuation of the replacement program, under which four vessels have previously been appropriated for. The Presidential request of $100,750,000 includes $65,800,000 for two new vessels, and $34.950,000 for various escalation costs and spares. In view of the fact that the present plans involve a total acquisition of 13 cutters, 9 of which are as yet unfunded, the committee elected to add an additional $30 million to the request in order to make a 3-vessel, rather than a 2-vessel, “buy,” a course of action which should provide for an overall procurement savings, and which is necessary if the replacement program is not to stretch out well beyond the time when the cutters being replaced will have necessarily been decommissioned, having reached the end of their safe service life.

41-foot utility boats

This item authorizes funding for 15 41-foot utility boats, in a continuing program, the full scope of which will total 204 boats. This