Green Scissors 2001
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Race to the Bottom
Deep-Draft Dredging

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"Most of these deepening plans are purely pie in the sky…They can't be justified with any kind of real economics. They're justified with politics."

Professor N. Shashikumar, Chair, School of International Business and Logistics, Maine Maritime Academy, quoted in the Washington Post, September12, 2000.

The federal government shares with states the burden of the cost of dredging harbors around the country. Under current law, the federal share of the cost of deepening harbors ranges from 80 percent for shallow harbors to 40 percent for "deep-draft" harbors (those deeper than 45 feet).

Recently, local harbor authorities, many of which hope to dredge their harbors to record depths, have been calling for an increase in the federal cost-share for dredging, as well as for operating and maintaining deep-draft harbors. These harbor authorities want deeper dredging in order to service the largest container ships. They reason that deeper ports will spur trade and commerce. The opposite may occur, however. Because of the lack of regional planning of harbor expansion, many neighboring ports are on track for deepening, threatening to create tremendous over-capacity for deep-draft ports. Deep- draft dredging poses serious environmental risks and will be undertaken at the expense of federal taxpayers.

Green Scissors Proposal
Reject proposals to increase federal cost-share for dredging. Instead, reduce the federal cost share for construction and operation and maintenance of harbors deeper than 45 feet.
Implement a "Harbor Services User Fee" that will link harbor maintenance costs to vessel "draft," the amount of water volume a ship displaces. Tying maintenance costs to vessel volume will ensure that the market encourages deep-water port development in places where it is economically and environmentally justified, rather than simply fueling a "race to the bottom."

Current Status

During consideration of the Water Resources Development Act (WRDA) of 2000 (H.R. 4411), the House Water Resources and Environment Subcommittee included provisions to increase the federal cost-share for dredging deep-water ports. The federal cost share would have been increased from 40 percent to 65 percent. The federal cost-share for operation and maintenance would have been increased from 50 percent to 100 percent. These provisions were removed from the legislation prior to its passage. A study required by WRDA 1999 to examine the possible economic, environmental and budgetary impact of increasing the federal cost share for deep-draft dredging has not been completed to date.

Project Hurts Taxpayers

Nearly every major port is considering expansion out of fear it will lose business to its competitors. This "race to the bottom" will cost taxpayers billions of dollars and is likely to create a substantial over-capacity of expensive deep ports with little deep-draft traffic to support them.

As ports increase in depth, the cost to keep them in operation also grows.
Increasing the federal cost-share for operation and maintenance from 50 percent to 100 percent in conjunction with increasing the federal rate-share for deep-draft dredging will create major new burdens for taxpayers.

Project Hurts the Environment

Increased federal cost-shares will stimulate more dredging and create additional pressure for sediment disposal even if that sediment contains contaminated materials. As the total amount of material in need of disposal increases, there will be increasing demand for environmentally destructive disposal practices. As a result, more dredged materials, including some contaminated materials, will be sent to open water dumping sites, exposing fish, shellfish, wildlife and humans to harmful chemicals.

Deep-draft dredging can also increase salinity levels in aquifers necessary for drinking water and important tidal ecosystems. For instance, a proposed deep-draft dredging project in Savannah Harbor, Georgia could decimate a rare tidal freshwater wetland in the Savannah National Wildlife Refuge. The Department of the Interior has observed that the proposed deepening will leave the Refuge with only 27 percent of its original freshwater marsh.


Contacts

  • Steve Ellis, Taxpayers for Common Sense, (202) 546-8500 x126.
  • Erich Pica, Friends of the Earth, (202) 783-7400 x229.
  • David Conrad, National Wildlife Federation, (202) 797-6687.
  • Jackie Savitz, Coast Alliance, (202) 546-9554.

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