838 



(Mr. Treen asked and was given permission to revise and extend 

 his remarks.) 



Mr. Treen. Mr. Chairman, before making my remarks, as a very 

 junior member of the Committee on Merchant Marine and Fisheries, 

 one who has been here just a little over 3 years, I want to pay special 

 tribute to the retiring chairman of the committee. 



Although a freshman member 3 years ago and a minority member, I 

 was treated from the outset with the kindly attention that every other 

 member of this committee has received from the chairman of our com- 

 mittee. I wish her the very best in the years ahead. 



Mr. Chairman, I want to also pay tribute to the chairman of the sub- 

 committee, the gentleman from New York (Mr. Murphy) , as well as to 

 the gentleman from Ohio (Mr. Mosher), and the gentleman from 

 Delaware (Mr. du Pont) , on the minority side, who have worked hard 

 over many, many months to develop what I think is a truly fine piece 

 of legislation. 



Mr. Chairman, the gentleman from California (Mr. Wiggins) 

 talked about all the money that is to be made. Of couree, a lot of dol- 

 lars are going to be generated by any offshore activity, but what he may 

 not know and what other Members may not know is that the govern- 

 ments, both State and local, that ordinarily would be expected to pick 

 up substantial revenue from economic activity, are biirred, because 

 this is OCS territory, from much of the tax collections that would 

 ordinarily apply. 



For example, the Submerged Lands Act, 43 U.S.C. 1333, provides 

 that State taxation laws shall not applv to the Outer Continental 

 Shelf. Thus, the States are unable to collect sales taxes on materials 

 that go out to the offshore platforms. They are not able to include the 

 value of the facilities on the OCS in ad valorem tax rolls. Most States 

 collect a corporation franchise tax based upon capital investment, but 

 that part of the capital investment that is beyond 3 miles could not be 

 included ; and on and on. 



Mr. Chairman, although this is a bill to amend the Coastal Zone 

 Management Act, it is truly a national piece of legislation because the 

 thrust of the amendments that we adopt today will be to shift, to a 

 large extent, the dependency of this Nation from foreign sources of 

 oil to domestic sources; and that has all sorts of implications for us. 

 Among those implications are the dollars that are flowing out of this 

 country and the balance of payments problem. There are the obvious 

 risks of having our energy supply from foreign sources interrupted 

 again. There are the implications with respect to the sufficiency of our 

 own energy supplies in order to run our industrial machines in this 

 country. At a time when Vt'e are making progress in providing more 

 jobs, we should accelerate our energy production in order to provide 

 even more jobs, and this bill will do that. 



Public pressure has been diminished, because we do not have long 

 lines at the gas stations, to do something about our energy problem ; 

 but we know that on a moment's notice the same sort of problems we 

 had a couple of years ago could be presented again. Those problems 

 could flare up at any time. 



As we approach the elections this fall our constituents are going, to 

 ask us what we have done as a Congress, in a concrete way, to try to 

 solve some of our short-term energy problems. And, when we pass this 



