Admiral Robert E. Kramek United States Coast Guard Admiral Robert E. Kramek is the 20th Commandant of the United States Coast Guard. He is both a Surface Operations Specialist and Naval Engineer with extensive service in all CG regions including the Atlantic, Pacific, Caribbean and Alaska. Admiral Kramek's previous assignments include Chief of Staff of the U.S. Coast Guard and command of two Coast Guard Districts, the 13th District in the Pacific Northwest and the 7th District in the Southeast U. S. and Caribbean. He has also commanded the Coast Guard Base at Governors Island, New York; commanded the High Endurance Cutter MIDGETT and the Haitian Migration Task Force where he led the interdiction and rescue of 37,000 Haitians. At the same time he was also the Drug Czar's Coordinator for the War on Drugs in the Southeast U. S. and Caribbean. He served as Regional Emergency Transportation Coordinator (RETCO) for the Secretary of Transportation in the Pacific Northwest. He also commanded Maritime Defense Zone sectors Pacific Northwest and Sector 7 Southeast U. S. which are Navy Coastal Defense Commands. He graduated with honors, from the USCG Academy with a B.S. in Engineering in 1961. Admiral Kramek attended post graduate schools at the University of Michigan, Johns Hopkins University and the University of Alaska. He has received Master of Science Degrees in Naval Architecture and Marine Engineering, Mechanical Engineering and Engineering Management. He also attended the U.S. Naval War College in Newport, RI and graduated with Highest Distinction. Admiral Kramek was selected for Flag rank in 1986. After selection for Flag rank he completed the "Capstone" Program at the National Defense University Institute of Higher Defense Studies. The Admiral's awards include two CG Distinguished Service Medals, two Legion of Merit awards, the Meritorious Service Medal, four CG Commendation Medals, the CG Achievement Medal, CG Unit Commendations, the Meritorious Unit Commendation, the Special Operations Ribbon with silver star, the Humanitarian Service Medal with bronze star, and the Sea Service Ribbon with bronze star. Admiral Kramek is a physical fitness enthusiast. He is married to the former Patricia Havard of Washington, DC. They have four children: Tracy, Joseph, Suzanne, and Nancy. DEPARTMENT OF TRANSPORTATION U. S. COAST GUARD STATEMENT OF ADMIRAL ROBERT E. KRAMEK ON THE INTERIM FINAL RULE FOR VESSEL CERTIFICATES OF FINANCIAL RESPONSIBILITY BEFORE THE SUBCOMMITTEE ON COAST GUARD AND NAVIGATION COMMITTEE ON MERCHANT MARINE AND FISHERIES HOUSE OF REPRESENTATIVES JULY 21, 1994 GOOD MORNING, MR. CHAIRMAN. IT IS MY PLEASURE TO BE HERE THIS MORNING TO ADDRESS THE INTERIM FINAL RULE FOR CERTIFICATES OF FINANCIAL RESPONSIBILITY (COFRS). I AM PLEASED TO REPORT THAT THE COAST GUARD HAS PUBLISHED AN INTERIM FINAL RULE IMPLEMENTING THE VESSEL FINANCIAL RESPONSIBILITY PROVISIONS OF THE OIL POLLUTION ACT OF 1990 (OPA 90) AND THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT (CERCLA). I BELIEVE THE RULE IMPLEMENTS THE LAW AS INTENDED BY CONGRESS AND BALANCES THE INTERESTS OF UNITED STATES CITIZENS AND THE MARITIME INDUSTRY. THIS RULE HAS SUPPORT BEYOND THE ADMINISTRATION, AND I EXPECT YOU WILL HEAR FROM SOME OF THOSE SUPPORTERS TODAY. AFTER THE EXXON VALDEZ TRAGEDY IN 1989, OPA 90 WAS ENACTED BY CONGRESS AND SIGNED INTO LAW ON AUGUST 18, 1990. THE LIABILITY AND COMPENSATION PROVISIONS OF OPA 90, HOWEVER, HAD BEEN UNDER DEVELOPMENT FOR MANY YEARS PRIOR TO THAT DATE. DESPITE OBJECTIONS BY THE INTERNATIONAL MARITIME INDUSTRY TO THE PROPOSED LAW'S LIABILITY AND COMPENSATION PROVISIONS, CONGRESS UNANIMOUSLY ADOPTED A LIABILITY AND COMPENSATION REGIME BASED ON THE FUNDAMENTAL PRECEPT THAT THE POLLUTER PAYS FOR REMOVAL COSTS AND DAMAGES. IN THE CASE OF AN ACCIDENTAL SPILL, THE POLLUTER'S LIABILITY IS LIMITED TO SPECIFIED AMOUNTS, EXCEPT WHERE CERTAIN ACTS OF THE POLLUTER CAUSE THE INCIDENT OR WHEN THE POLLUTER FAILS OR REFUSES TO CARRY OUT HIS/HER RESPONSIBILITIES AFTER THE WHERE SUCH ACTS OR FAILURES OCCUR, THE POLLUTER MAY BE LIABLE FOR THE FULL COSTS AND DAMAGES (SO-CALLED UNLIMITED INCIDENT. LIABILITY). AS AN ESSENTIAL COMPONENT OF THIS REGIME, CONGRESS RETAINED THE TIME-TESTED CONCEPT OF GUARANTIED FINANCIAL RESPONSIBILITY UP TO SPECIFIED LIMITS, WITH THE RIGHT OF DIRECT ACTION. IN SEPTEMBER, 1991, THE COAST GUARD PROPOSED A RULE TO IMPLEMENT OPA 90'S AND CERCLA'S FINANCIAL RESPONSIBILITY MANDATES, BUT WAS IMMEDIATELY CHALLENGED BY THE INTERNATIONAL SHIPPING INDUSTRY FOR FAILING TO USE THE RULE TO INSULATE THAT INDUSTRY FROM THE POTENTIAL FOR UNLIMITED LIABILITY. THE INDUSTRY DEBATE CONTINUED FOR ALMOST THREE MORE YEARS, BUT OPA 90 WAS NOT ALTERED TO AUTHORIZE THE COAST GUARD TO INSULATE THE SHIPPING INDUSTRY FROM THE POSSIBILITY OF UNLIMITED LIABILITY. ACCORDINGLY, ON JULY 1, 1994, THE COAST GUARD PROMULGATED THE RULE. IT IS THE COAST GUARD'S SINCERE HOPE AND BELIEF THAT NOW THAT THE COFR RULE HAS BEEN ADOPTED, RHETORIC DESIGNED TO CONFUSE FINANCIAL RESPONSIBILITY WITH UNLIMITED LIABILITY WILL BE PUT ASIDE, AND ALL PARTIES WILL TURN TO THE BUSINESS OF COMPLYING WITH THE NEW RULE. THE CONTROVERSY SURROUNDING THIS RULEMAKING ARISES FROM THE COMMINGLING OF TWO SEPARATE ISSUES: FINANCIAL RESPONSIBILITY AND UNLIMITED LIABILITY. INDUSTRY'S DISSATISFACTION WITH OPA 90, AS EXPRESSED DURING THE RULEMAKING, HAS BEEN ONE OF THE MOST WIDELY REPORTED MATTERS IN THE DOMESTIC AND INTERNATIONAL MARITIME PRESS, AND HAS BEEN THE SUBJECT OF INNUMERABLE SEMINARS AND CONFERENCES. IN THE CONTEXT OF THE RULEMAKING, THE CONTROVERSY IN SIMPLE TERMS AROSE FROM THE STATED REFUSAL OF THE PROTECTION "TRAIN-WRECK." TODAY I REITERATE THE COAST GUARD'S BELIEF THAT THE NEW COFR RULE WILL NOT RESULT IN A TRAIN-WRECK, DESPITE A VIEW BY SOME IN INDUSTRY THAT ONLY A TRAIN-WRECK WILL FORCE CONGRESS TO AMEND OPA 90 OR ABANDON THE POTENTIAL FOR UNLIMITED LIABILITY IN CASES OF FAULT, IN FAVOR OF THE INTERNATIONAL TREATY. I HAVE APPENDED TO MY STATEMENT A COPY OF THE COAST GUARD'S PRESS RELEASE AND FACT SHEET EXPLAINING THE NEW RULE. ALLOW ME TO BRIEFLY SUMMARIZE IT. THIS RULE IMPLEMENTS OPA 90'S AND CERCLA'S MANDATE TO PROTECT U.S. TAXPAYERS. IT DOES THIS BY ENHANCING THE ABILITY OF CLAIMANTS TO OBTAIN COMPENSATION FOR REMOVAL COSTS AND DAMAGES SUFFERED AS A RESULT OF AN OIL SPILL OR |