The proposed legislation, titled the “Abandoned and Derelict Vessel Removal Act of 2024,” aims to address the issue of abandoned vessels in navigable waters of the United States. This bill, introduced by Mr. Garamendi, seeks to enhance current laws around the identification, removal, and management of these vessels. It outlines penalties for abandonment, creates a national inventory of abandoned vessels, and details processes for removal and funding allocation.

General Summary of the Bill

This bill proposes modifications to federal maritime laws to more comprehensively manage and remove abandoned and derelict vessels. Key elements include:

• Prohibition and Penalties: It prohibits the abandonment of non-barge vessels on navigable U.S. waters and imposes penalties on violators.
• Inventory and Removal: The Coast Guard is tasked with establishing a national inventory of abandoned vessels. Also, the bill allows federal agencies to remove abandoned or obstructive vessels determined to be in the public interest.
• Funding Mechanism: It proposes the use of the Oil Spill Liability Trust Fund to cover costs associated with the removal of these vessels.
• Auction Requirements: New requirements are established for purchasing federally auctioned vessels, ensuring buyers have the necessary resources and insurance.

Summary of Significant Issues

Several issues in the bill warrant attention:

1. Clarity and Consistency: The discretionary power vested in the Commandant to determine vessel abandonment could lead to inconsistent application due to the lack of clear criteria. Terms such as “public interest” are not well-defined, potentially leading to varied interpretations.

2. Financial Implications: The bill does not address the financial resources required for establishing and maintaining the abandoned vessel inventory. The source of funds for vessel removal costs is also unclear, raising concerns about fiscal impact and burden distribution among federal entities and states.

3. Notification Process: The reliance on certified mail and local publications may not suffice to notify all vessel owners, particularly those with unstable living situations or those evading legal responsibilities.

4. Responsibility for Costs: While vessel owners are held financially liable for removal costs, the bill does not account for cases where owners are untraceable, potentially leaving taxpayers responsible.

5. Compliance and Oversight: There is a lack of specific guidelines for ensuring ongoing compliance with auction requirements, which may lead to regulatory loopholes.

Impact on the Public

The bill could have broad implications for both the environment and those using U.S. waterways:

• Environmental and Navigational Safety: By removing derelict vessels, the bill is likely to improve water safety and reduce environmental hazards, benefitting both commercial and recreational users of U.S. waterways.

• Taxpayer Burden: Unclear funding mechanisms could mean that taxpayers might indirectly shoulder the financial burden of vessel removal, especially if vessel owners cannot be located or held accountable.

Impact on Specific Stakeholders

• Vessel Owners: Owners face potential penalties and financial liabilities if their vessels are declared abandoned. However, they might encounter challenges due to potential inconsistencies in how abandonment is determined.

• Government and Agencies: Federal and state agencies might face increased responsibilities in managing the inventory and removal processes, potentially lacking necessary budgets.

• Communities and Environmental Groups: These groups might see positive environmental and navigational benefits as abandoned vessels that pose risks are removed, improving local ecosystems and waterway safety.

In conclusion, while the Abandoned and Derelict Vessel Removal Act of 2024 seeks to fill important gaps in current maritime law, it presents several challenges related to clarity, financial implications, and implementation. Addressing these issues transparently could result in more equitable and effective legislation.

The "Abandoned and Derelict Vessel Removal Act of 2024," represented as H.R. 7719, includes several financial elements that are crucial to understanding its implications and potential impact. This commentary evaluates those elements and how they relate to issues identified in the bill.

Civil Penalties for Abandonment

One of the notable financial references in the bill is the imposition of a civil penalty of up to $500 for owners or operators of abandoned vessels (Section 2, §4711). This penalty is intended to deter vessel abandonment and recoup some costs associated with addressing such issues. However, the relatively low amount compared to the potential costs of vessel removal and environmental remediation raises questions about its efficacy as a standalone deterrent. This also underscores a potential issue of inadequate financial penalties to effectively discourage non-compliance, considering the complexities and expenses involved in dealing with abandoned vessels.

Funding for Removal and Inventory

The bill discusses the use of the Oil Spill Liability Trust Fund to cover the costs associated with removing abandoned vessels, especially when deemed in the "public interest" (Section 4). Though this fund can provide necessary financial support, there is no clear mention of any additional appropriations or budget specifically allocated for the implementation of a national inventory of abandoned vessels (Section 2, 4712). This absence of direct financial references could lead to uncertainties in fiscal responsibility, as the process of maintaining a comprehensive inventory would likely entail significant costs related to data collection, management, and reporting.

Public Interest and Fund Utilization

The reliance on the "public interest" criterion for fund allocation introduces an element of discretion that may lead to variances in how funds are utilized from the Oil Spill Liability Trust Fund. The lack of a clear definition of what constitutes "public interest" could lead to disparities in funding decisions, potentially favoring certain cases over others without consistent rationale (Sections 2, 4711; 4; 6). This ambiguity raises concerns about transparency and accountability in financial decision-making regarding vessel removal operations.

Insurance and Financial Resource Requirements

For those purchasing federally auctioned vessels, the bill mandates proof of liability insurance and financial resources to cover maintenance costs (Section 5 and §57112). Nevertheless, it does not specify the minimum requirements for insurance coverage or financial resources, potentially creating loopholes that might undermine the effectiveness of these measures. This omission highlights a need for clearer financial guidelines to ensure that buyers are sufficiently prepared to assume the responsibilities that come with vessel ownership, thereby mitigating risks of subsequent abandonment.

Overall Financial Clarity

A recurring concern throughout the bill is the reliance on existing external legal codes and statutes without adequate explanation or integration, especially in sections related to funding sources and allocations (Sections 3, 4, and 5). This could complicate the bill's application and understanding among stakeholders, as they navigate the intersection of various legal and financial frameworks. Clearer cross-references and definitions could help streamline these interactions, enhancing the bill's implementation and ensuring efficient use of financial resources.

In conclusion, while the bill provides a framework for addressing the issue of abandoned vessels, it leaves several financial questions unanswered, particularly around funding mechanisms, enforcement costs, and the specifics of financial responsibility for vessel purchasers. Addressing these gaps will be critical in ensuring the bill's effectiveness and financial sustainability.