Posted on May 8, 2019
By Heiko Osterchrist-Associate Publisher; DredgeWire
Today, the full House Committee on Transportation and Infrastructure Committee met to mark-up and discuss H.R. 2440, Full Utilization of the
Harbor Maintenance Trust Fund (HMTF) Act. Chairman Peter DeFazio (D-OR), Committee Ranking Member Sam Graves (R-MO), Chair of the Subcommittee on Water Resources and Environment Grace F. Napolitano (D-CA), Subcommittee Ranking Member Bruce Westerman (R-AR), kicked off discussion on Full Utilization of the HMTF. The Bill passed by a voice vote on the Committee floor. There were no amendments to the Full Utilization HMTF Act offered at the Committee hearing.
According to the House T&I Committee, currently, the HMTF collects more revenue from shippers than Congress has appropriated to the U.S. Army Corps (Corps) of Engineers to maintain our harbors. Approximately $9.3 billion in already collected revenue sits idle in the U.S. Treasury, not being used for its intended purpose of investing in our Nation’s ports and harbors. At the same time, some ports and harbors of all sizes struggle to remain competitive in the global shipment of goods and services or remain open to meet the needs of the communities that depend on a vibrant maritime and commercial fishing industry. While shippers continue to pay into the Trust Fund, for Congressionally approved maintenance activities, the Federal Government has not carried out many of them.
This bipartisan bill makes it easier for Congress to appropriate any funds collected in the Trust Fund for authorized harbor maintenance needs, including the existing $9.3 billion balance in the Trust Fund. The legislation enables the expenditure of approximately $34 billion over the next decade, which will allow the U.S. Army Corps of Engineers (Corps) to dredge all Federal harbors to their constructed widths and depths.
Commenting after this morning’s hearing, William P. Doyle, CEO & Executive Director of the Dredging Contractors of America praised the Committee’s vote.“This is terrific news. A bipartisan piece of legislation that directs money collected from shippers to maintain our ports and harbors is being used for its intended purpose– maintenance dredging.”
Select quotes from today’s hearing:
T&I Chairman DeFazio: “This is a long overdue investment from this committee. I’ve always objected to the idea of collecting a tax for a specific purpose, and yet, somehow diverting or spending the money elsewhere or using it as an illusory deficit offset. HMTF would be much better used for its intended purpose [maintenance dredging] and this legislation would guarantee that.”
Subcommittee Chair Water Resources and Environment Grace Napolitano: “In 1986, Congress enacted the Harbor Maintenance Trust Fund for the maintenance of those harbors. The problem is the Trust Fund collects more revenue than the President’s budget requests and the Congress has appropriated the extra funding to maintain our harbors.” She continued, “According to the Congressional Budget Office, the Trust Fund will collect an additional $24.5 billion in new revenues over the next decade, but federal appropriations from the Trust Fund will only be $19.4 billion. This discrepancy is in addition to the $9.3 billion in previously collected but unspent revenue. As we pass this responsible budget bill today, I look forward to working with my colleagues as we move forward with a Water Resources Development Act –in this Congress—to address in equities in how these funds are spent.”
T&I Ranking Member Sam Graves: “America’s ports and harbors are vital to the entire economy and they are an integral part of our cohesive national infrastructure system. Farmers, manufacturers, business’ across the country—whether they are near the coast or not—rely on the ports for our trade. And every day, most Americans buy something that has traveled through a port at some time. This bill ensures billions of dollars in additional funds, already collected to improve our ports and harbors, are invested for their intended purpose without raising a single dime in new taxes. This will make the transportation system more efficient; and it’s going to help keep the cost of goods lower for everyone.”
Subcommittee Ranking Member Water Resources and Environment Bruce Westerman: “H.R. 2440 does ensure that the Harbor Maintenance Fund is used for its intended purpose—and that is to maintain our federally authorized harbors. This bipartisan bill was introduced by Chairman DeFazio who has long been a champion of this issue.” Congressman Westerman then narrowed down the issue, stating “The problem is simple, on top of the fact that our harbors desperately need maintenance, the Trust Fund collects more revenue from shippers than Congress has appropriated to the Corps of Engineers to maintain our harbors. Approximately $9.3 billion in already collected revenue is enough to address our nation’s harbor maintenance backlog, but it sits idle. This bill would enable money collected for dredging and maintaining our ports and harbors to be fully spent for those purposes.
The HMT is directly levied on importers and domestic shippers using coastal or inland ports as a 0.125 percent ad valorem tax on the value of imported cargo (e.g., $1.25 per $1,000 value) and is typically passed along to U.S. taxpayers on the purchase of imported goods or services. These revenues are deposited into the Harbor Maintenance Trust Fund within the U.S. Treasury from which Congress currently appropriates funds to the Corps for harbor maintenance dredging.
The Bill was order favorably reported to the House.
