WASHINGTON — Ports that move large amounts of energy resources, including the Port of Mobile, would share a new pot of federal money to maintain and improve their shipping channels under a last-minute addition to a water resources bill that passed the Senate this week.
Twelve ports in five states — Alabama, Louisiana, Maryland, Texas and Virginia — would get special treatment under the Water Resources Development Act because they are busy ports and at least 25 percent of their cargo activity is in energy commodities such as petroleum, natural gas, coal, wind and solar energy components and biofuels.
The legislation would authorize a new pot of money of at least $50 million and would split it evenly between the 12 newly designated energy transfer ports and a handful of the nation’s busiest ports, or “donor ports,” such as those in California and Washington state.
The result would be a windfall for the Alabama State Port Authority and other facilities that handle significant amounts of coal, petroleum and biofuel cargo.
Sen. Richard Shelby, R-Ala., added the energy provision to legislation to renew the Water Resources Development Act late last week when it reached the Senate floor. The legislation was approved Wednesday, 83-14.
“I want to help make Mobile one of the top five ports in the country,” Shelby said Thursday. “It could mean untold job creation for our state and the region. This will help provide the resources to make it happen.”
Although the legislation doesn’t name the states that qualify as energy ports, Shelby’s aides identified those covered by the formula.
In addition to the extra money for energy ports, the water resources bill would require that the Harbor Maintenance Trust Fund, which last year collected about $1.8 billion in fees from shippers, spend more of its money on harbor improvements at all ports around the country.
James Lyons, director and chief executive officer of the Alabama State Port Authority, said the energy port money would go toward annual maintenance dredging, which costs between $5 million and $6 million.
“We would add it to our regular dredging programs that we do to keep our berths open,” Lyons said Thursday. “It’s year-in, year-out, and is just a fact of life here.”
Taxpayer watchdog groups noted that the energy provision offers special treatment to states with high-ranking senators on two key committees. As a result, they said, it almost qualifies as an earmark, which Congress has pledged to avoid.
“It is a carve-out that they’re getting,” said Steve Ellis, spokesman for Taxpayers for Common Sense.
The Water Resources Development Act was drafted by Sen. Barbara Boxer, D-Calif., chairwoman of the Senate Environment and Public Works Committee, and Sen. David Vitter of Louisiana, the committee’s top-ranking Republican.
Shelby is top-ranking Republican on the Senate Appropriations Committee, where actual spending decisions are made. That panel is chaired by Sen. Barbara Mikulski, D-Md.
“Others can call it what they want,” Shelby said about the criticism. “My priority is fostering the conditions for economic growth and job creation in Alabama, and I’m going to keep at it.”
Ellis also questioned the provision that allows energy transfer ports and donor ports to use the extra money as a rebate for shippers using the ports. He said it would give some ports an unfair advantage.
Lyons said the rebate would most likely be used by ports in Washington because they compete with Canadian ports that don’t charge a harbor maintenance tax.
Written by: Mary Orndorff Troyan, Gannett Washington Bureau
Original Publication URL: http://www.montgomeryadvertiser.com/article/20130517/NEWS02/305170004/Shelby-provision-water-bill-would-benefit-state-docks
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