UN

TI

EDSTATESCOASTGUARD

1790

SEMPER

PARATUS

Commandant

U.S. Coast Guard

Washington, D.C. 20593

The United States Coast Guard

America’s Shield of Freedom

The United States Coast Guard is a multi-mission, 

military, maritime service committed to protecting America.

Every day, teams of highly dedicated men and women use

their training, skills, and intelligence to make a difference

securing our homeland, saving lives, enforcing the law, 

protecting the environment and keeping vigilant watch.

Now, more than ever, the Coast Guard provides opportunities

where people can learn, grow, and serve the American people

protecting the homeland, keeping America safe.
On the inside

Providing Essential Services . . . . . . . . . 2

Homeland Security . . . . . . . . . . . . . . . . 4

Integrated Deepwater System . . . . . . . 8

Budget Highlights . . . . . . . . . . . . . . . . 12

Annual Performance Goals . . . . . . . . . 14

Maritime Safety . . . . . . . . . . . . . . . . . 16

Maritime Security . . . . . . . . . . . . . . . . 20

Protection of Natural Resources . . . . . 24

Maritime Mobility . . . . . . . . . . . . . . . . 28

National Defense . . . . . . . . . . . . . . . . . .32

Budget in Brief . . . . . . . . . . . . . . . . . . . 34

2003

REPORT

FY 2002 Performance Report 

FY 2004 Budget in Brief
An Average Day in the Coast Guard

Each day, the men and women of the 35,000 plus active duty Coast Guard, 8,000 Reservists and

32,000 Auxiliarists provide services over 3.4 million square miles of Exclusive Economic Zones...

• Conduct 109 Search and Rescue Cases.

• Save 10 lives.

• Assist 192 people in distress.

• Protect $2.8 million in property.

• Small boats are underway for 396 sorties/missions.

• Aircraft fly 164 missions, logging 324 hours, of which 19 hrs are flown off patrolling cutters.

• Law enforcement teams board 144 vessels.

• Seize 169 pounds of marijuana and 306 pounds of cocaine worth $9.6 million.

• Seize 1 drug smuggling vessel every five days.

• Cutter and small boat crews interdict and rescue 14 illegal migrants.

• Marine Safety personnel open 8 new cases for marine violation of federal statutes.

• Process 238 Seaman licenses and documents.

• Marine Inspectors board 100 large vessels for port safety checks.

• Vessel examiners conduct 20 commercial fishing vessel safety exams and issue 11 

fishing vessel compliance decals.

• Pollution investigators respond to 20 oil or hazardous chemical spills totaling 2,800 gallons.

• Investigate 6 vessel casualties involving collisions, alllisions or groundings.

• Buoy tenders and Aids to Navigational Teams service 135 aids to navigation.

• Vessel Traffic Service controllers assist 2,509 commercial ships entering & leaving 

U.S. ports.

• Icebreakers and buoy tenders assist 196,938 tons of shipping daily during the Great 

Lakes ice season.

• International Ice Patrol sorties provide ice safety information to facilitate the 163,238 

tons of shipping during the North Atlantic ice season.

• Auxiliarists conduct 377 vessel safety checks and teach boating safety courses to 

550 boaters.

• Boarded 6 high interest vessels daily.

• Enforced 98 security zones daily.
1

T. H. Collins

Admiral, U.S. Coast Guard

UN TI EDSTATESCOASTGUARD

17 90

SEMPER

PARATUS

THE COMMANDANT OF THE UNITED STATES COAST GUARD

WASHINGTON, D.C. 20593-0001

The President’s FY 2004 budget reflects a long-term commitment towards his stated goals of

preventing terrorist attacks, reducing America’s vulnerabilities and minimizing the damage from

attacks that do occur. These goals are outlined in the President’s National Strategy for Homeland

Security (July, 2002). As the lead federal agency for maritime Homeland Security (MHLS), the Coast

Guard has developed a strategy that will implement the maritime component of the President’s plan

— increasing security while facilitating the use of the Marine Transportation System for legitimate

purposes. MHLS will remain the Coast Guard’s top priority along with Search and Rescue and we

will not lose focus on our other important missions. The President recognized the Coast Guard’s

importance, across all mission areas, to the safety and security of America in the National Strategy for

Homeland Security:

“The United States asks much of its U.S. Coast Guard and we will ensure the service has the resources

needed to accomplish its multiple missions.”

This budget request is critical to the implementation of the President’s strategy and to the sustainment

of the Coast Guard’s high standards of operational excellence. It reflects steady progress in our multiyear effort to meet America’s future maritime safety and security needs, more specifically:

• The need to increase Maritime Homeland Security capability and capacity;

• The need to sustain our performance across all Coast Guard missions; and

• The need to quickly implement the comprehensive requirements of the Maritime Transportation

Security Act of 2002.

The Fiscal Year 2004 budget provides the resources needed to sustain this multi-year effort to provide

the best Coast Guard service our nation requires. It will positively impact our performance in all

assigned goals. Every Homeland Security dollar directed to the Coast Guard will contribute to a

careful balance between our safety and security missions, both of which must be properly resourced

for effective mission accomplishment. The Coast Guard will remain a multi-mission, military,

maritime service. This budget will enable the Coast Guard to maintain operational excellence, while

conducting increased homeland security operations and sustaining traditional missions. 

I have asked every member of the Coast Guard to continue to focus intently and act boldly on the

three elements of my direction: improving Readiness, practicing good Stewardship of the public trust

and enhancing the growth, development and well being of our People. With this diligence in

executing our multi-year resource effort, we will fulfill our operational commitment to America and

maintain our high standards of excellence. 
2

In 2002, Americans. . .

Knew that defense of the homeland from terrorism was paramount and

keeping the skies, highways, railways and waterways safe for recreation,

commerce and the free flow of transportation were some of the Coast

Guard’s primary missions.

Bought 83,000 watercraft and 541,300 recreational boats. 

Took to the water for a day of fun in 17 million boats. 76 million 

boaters spent $25.6 billion on boats and accessories. 

Suffered more than 650 drug-related murders and lost nearly 19,000 

lives to drug abuse.

Spent more than $64 billion to purchase illegal drugs and lost $160

billion in costs relating to drug abuse.

Harvested 4.3 million tons of fish and employed 300,000 in the

commercial and recreational fishing industry that had a $55 billion

impact on the economy.

Shipped over 285 billion gallons of oil in vessels on waterways

throughout the U.S.

Employed over 1 million people in maritime and port industries.

Operated cruise ships capable of carrying 7.3 million passengers.

Moved 1.1 billion tons of domestic cargo on U.S. navigable waters.

Enjoyed worldwide free trade made possible by freedom of the seas.

Relied on peacekeeping and partnerships to maintain peace around 

the world.
3

In 2002, the Coast Guard. . . 

Aggressively supported Homeland Security by

– Conducting more than 36,000 port security patrols, 3,600 air patrols,

and 10,000 vessel boardings. Escorting over 6,000 vessels.

– Maintaining more than 115 security zones.

– Instituting and enhancing new initiatives such as Sea Marshals and

deployable Maritime Safety and Security Teams.

– Receiving over 250,000 volunteer hours from the Coast Guard Auxiliary. 

Saved the lives of nearly 4,200 mariners in distress and responded to more

than 39,000 calls for rescue assistance.

Conducted more than 109,000 recreational vessel examinations, more

than 10,700 foreign commercial vessel boardings and more than 36,000

inspections on commercial vessels.

Prevented more than 117,700 pounds of cocaine, over 40,000 pounds 

of marijuana and more than 800 pounds of hashish from reaching the 

United States.

Interdicted over 5,100 undocumented migrants attempting to enter the

country illegally by sea.

Boarded more than 4,100 fishing vessels to enforce safety and environmental

laws. Partnered with federal and state agencies to enhance protection to Marine

Protected Species ensuring populations recover to healthy, sustainable levels.

Conducted more than 800 inspections aboard mobile offshore drilling units

and outer continental shelf facilities.

Kept shipping channels clear of ice during the Great Lakes and New

England winter shipping season. Maintained more than 50,000 federal aids

to navigation, including 15,000 along 11,900 miles of Western Rivers.

Participated in Maritime Interception Operations in the Persian Gulf and

enforced UN sanctions by interdicting oil being smuggled out of Iraq.

Provided support for productive U.S. and international science programs

in both polar regions.

Responded to 12,000 reports of water pollution or hazardous 

material releases.

Ensured more than 1 million safe passages of commercial vessels through

congested harbors with Vessel Traffic Services.
4

The U.S. Coast Guard, as an integral part of the Department of Homeland Security, will prevent maritime

terrorist attacks, reduce America’s vulnerability to terrorism, and minimize the damage from attacks that do

occur. The U.S. Coast Guard will harness and share

information and intelligence, leverage partnerships,

layer security operations, and enforce high priority

security requirements in the international arena, on

the high seas, and in U.S. ports and waterways. 

The Coast Guard recognizes the valuable yet

vulnerable nature of the U.S. maritime infrastructure

and the required balance between upholding

maritime security and facilitating economic and

recreational activity. The U.S. Coast Guard is also

bound and challenged by law to sustain its other

maritime safety, mobility, and environmental

protection missions, while expanding its role in

Homeland Security.

The threats to the security of the United States

clearly extend beyond overt terrorism. For instance,

countering illegal drug and contraband smuggling, preventing illegal immigration, foreign fishing vessel

encroachment, and preventing and responding to environmental damage, while facilitating mobility are all

critical elements of national and economic security.

The U.S. Coast Guard brings military discipline, broad civil law enforcement authority, experience in the

exclusive economic zone,

command and control

systems, and considerable

cutter, aircraft and boat

response capability to the

Department of Homeland

Security. Therefore,

recapitalizing Coast Guard

assets and infrastructure 

and the Coast Guard’s

performance based

Deepwater acquisition project

will be vital to our Nation’s

homeland security. 

2002 Results: Immediately

following the 11 September

terrorist attacks, Coast Guard

operations surged to support

National Security imperatives.

In fiscal year 2002 the U.S.

Coast Guard:
5

Every Homeland Security

dollar directed to the Coast

Guard will re-establish a

balance between its safety

and security missions, two

sides of the same coin,

both of which must be

properly resourced for

effective mission

accomplishment.

• Assigned escorts to protect vessels and critical infrastructure.

• Improved Maritime Domain Awareness - Stood up a National

Vessel Movement Center and required vessels to provide 96

hour advanced notice of arrival.

• Operated cutters, boats, aircraft, and Marine Safety staffs in

harbors and coastal regions at heightened tempos.

• Delivered additional small boats and crews to 

strategic ports.

• Activated nearly one-third of the Coast Guard’s Selected

Reservists.

• Completed port security assessments to reduce the

vulnerability of strategic maritime infrastructure and 

naval assets.

• Activated four deployable Maritime Safety and Security

Teams (MSST’s) that are strategically enhancing port

security by protecting critical infrastructure, military load outs,

and major maritime events.

• Tracked and Screened 100% of all High Interest 

Vessels (HIV).

• Utilized 24-hour operation centers throughout the 

country to coordinate interagency and local security checks

and operations.

• Aggressively forged partnerships and information sharing

(Port Security Committees, Multi-Agency Security Exercises,

Safety and Security Task Forces, Container Security initiatives

w/all stakeholders, Disseminated appropriate warnings to port

stakeholders).

• Drafted standards and proactively proposed and managed

comprehensive IMO security measures.

• Maritime Transportation and Security Act of 2002

(comprehensive legislative framework that enhances maritime

security by assessing vulnerability, defining responsibilities, and

creating standards).

• Implementing the Maritime Transportation Security Act of

2002 is a first step to protect the U.S. maritime domain and

the U.S. Marine Transportation System and the CG will work

vigorously throughout 2003 to implement this legislation.

“Securing the American

Homeland is a challenge of

monumental scale and

complexity. But the U.S.

government has no more

important mission.”

—President’s National

Strategy for Homeland

Security (July, 2002)
6

Homeland Security—Continued

Strategies and Initiatives to Achieve 2004 Goal: 

The Coast Guard is the lead federal agency for Maritime Homeland Security (MHLS). As such, the

Coast Guard’s mission, in conjunction with joint and interagency forces, is to protect the U.S. Maritime

Domain and the U.S. Marine Transportation System and deny their use and exploitation by terrorists 

as a means for attacks on U.S. territory, population and critical infrastructure. The Coast Guard will 

prepare for, and in the event of an attack, conduct emergency response operations. When directed, 

the Coast Guard, as the supported or supporting commander, will conduct military homeland defense

operations in its traditional role as 

a military service.

The 2004 budget submission is

aligned with the Strategic Goals and

Critical Mission Areas in the

President’s National Strategy for

Homeland Security. The Coast

Guard has developed a MHLS

Strategy that implements the

maritime component of the

President’s plan. It addresses both

event-driven and prevention-based

operations through the following

Strategic Objectives:

• Prevent terrorist attacks within and

terrorist exploitation of the U.S.

Maritime Domain.

• Reduce America’s vulnerability to

terrorism within the U.S. Maritime

Domain.

• Protect U.S. population centers,

critical infrastructure, maritime

borders, ports, coastal approaches

and boundaries and the “seams”

among them.

• Protect the U.S. Marine

Transportation System while

preserving the freedom of maritime

domain for legitimate pursuits.

• Minimize the damage and recover

from attacks that may occur within
7

the U.S. Maritime Domain as either the Lead Federal

Agency or a supporting agency.

New FY 2004 initiatives which we are requesting funds 

to implement:

• 6 new Maritime Safety & Security Teams

• 58 Sea Marshals

• 2 new Port Security Units

• 43 Response Boat-Smalls

• 8 Response Boat-Mediums

• Creation of Stations Washington & Boston

• New personnel & technological enhancements for Maritime

Domain Awareness.

Other Federal Programs with Common Outcomes:

As the Coast Guard transfers to the Department of Homeland

Security it will need to coordinate closely with all the new

Directorates to ensure security in our ports and waterways. 

This transformation will not

change the Coast Guard’s

essential character since it

will remain a 

multi-mission, military,

maritime service. Instead,

the transformation will

enable the Coast Guard 

to maintain operational

excellence while

conducting increased

homeland security

operations and sustaining

traditional missions.

The Coast Guard must

conduct a broad

transformation across all 

of its existing mission areas

to maintain our high

standards of operational

excellence.
8

The Coast Guard’s greatest threat to mission performance continues to be that its patrol boats, cutters

(larger ships), helicopters, fixed-winged aircraft and the systems and logistics infrastructure in support of these

assets are aging and technologically obsolete, and require replacement and/or modernization. The majority

of these assets will reach the end of their service life by 2008, and have increasing operating and

maintenance costs, which results in lost mission effectiveness, unnecessary risks and wear and tear on people,

and an inefficient return on the public’s investment. These ships and planes are essential to the Coast

Guard’s Homeland Security missions of providing a layered defense throughout ports, waterways, coastal

regions and extending far offshore, as well as, sustaining traditional mission area efforts. Coast Guard assets

lack needed capabilities in speed, sensors for search, detection and identification, a network-centric

command, control and communications architecture, and interoperability with DoD, Other Government

Agencies and other Coast Guard assets, limiting mission effectiveness and efficiency.

The demand for Coast Guard services was outpacing the ability to recapitalize the Coast Guard’s fleet of

cutters and aircraft before September 11, 2001 and this is even more true today. Due to increased

responsibilities within the Department of Homeland Security and the need to sustain core mission

effectiveness, the recapitalization of the Coast Guard’s inventory of major cutters, aircraft and their supporting

systems is a near-term national priority, and is now more critical than ever.

With the 25 June 2002 contract award for the Integrated Deepwater System (IDS), the Coast Guard

completed a critical step toward its long-term goal to build a modern multi-mission force equal to the task of

fulfilling a broad range of increasingly challenging homeland security requirements and growing traditional

missions such as search and rescue and environmental protection. The contract, covering the second phase

of the IDS acquisition strategy, was awarded to Integrated Coast Guard Systems (ICGS), a joint venture
established by Lockheed Martin and Northrop Grumman. The

performance based contract with IGCS is for an initial five-year

term, with the potential for five additional five-year award terms

through the expected duration of the recapitalization effort.

The aging inventory of patrol boats, aircraft, helicopters,

cutters, and systems has generated growing concerns over the

Coast Guard’s ability to effectively perform all of its assigned

missions. The IDS solution is the answer to these concerns and

entails far more than the progressive replacement of this aging

inventory over the next 20 years. Unlike previous acquisition

strategies of replacing obsolete or unsupportable assets on a onefor one basis, IDS is an integrated or systems approach to

upgrade existing legacy assets while transitioning to newer and

more capable platforms—including modernized logistical systems,

and the cornerstone command, control, communications,

computers, intelligence, surveillance, and reconnaissance (C4ISR)

architecture that will serve as a critical link for air, shore and

surface assets. 

-

The Coast Guard has developed a “system-of-systems”

approach for the design, development, and acquisition phases of

this recapitalization program. Its industry partners are obliged to

satisfy capabilities-based system performance specifications with

the overarching goals of maximizing operational effectiveness and

reducing total-ownership costs.

The next five years will see significant progress for the IDS

program as the Coast Guard’s single System Integrator will

conduct C4ISR and other upgrades to several existing air and

surface assets, as well as Coast Guard command facilities ashore.

The IDS program also will, under current plans, begin to deliver

new surface and air platforms, and enhanced C4ISR capabilities

and logistics systems. For example, work to retrofit and convert

existing 110-foot patrol boats to more capable and seaworthy

123-foot patrol boats is scheduled to commence in February

2003, and the first new National Security Cutter is scheduled to

be delivered to the Coast Guard in 2006.

When the transformational Deepwater program is fully

implemented, the total proposed IDS system will consist of three

classes of new cutters and their associated small boats, a new

fixed-wing aircraft fleet, a combination of new and upgraded

helicopters, and both cutter-based and land-based unmanned

“The Budget for Fiscal Year

2004 will continue to

support the recapitalization

of the U.S. Coast Guard’s

aging fleet, as well as

targeted improvements in

the areas of maritime

domain awareness, and

command and control

systems.”

—President’s National

Strategy for Homeland

Security (July, 2002)

9
10

Integrated Deepwater System (IDS)—Continued

aerial vehicles. As noted in the National Strategy for Homeland Security, approved by President Bush in July

2002, “The United States asks much of its U.S. Coast Guard, and we will ensure the service has the resources

needed to accomplish its multiple missions.”

All of Deepwater’s highly capable assets will be linked with state-of-the-art C4ISR systems and will be

supported by an integrated logistics system. The ability to link and network disparate platforms seamlessly

over vast distances is an essential aspect of the Coast Guard’s ability to achieve maritime domain awareness.

And, in the post-9/11 national security environment, such linkages also must extend beyond Coast Guard

assets. The Deepwater system will be sufficiently capable and interoperable to deploy with and respond to a

crisis alongside the U.S. Navy and other Homeland Security agencies.

In addition to the improved operational capabilities Deepwater will deliver to the Coast Guard’s traditional

missions, the Deepwater program will also lead to much-needed improvements in the Coast Guard’s ability to

execute its comprehensive Maritime Homeland Security Strategy during the years ahead. As the lead federal

agency for Maritime Homeland Security within the new Department of Homeland Security, the Coast Guard’s

capital assets and systems will be relied on to provide the bulk of this effort. The modern, capable, and

efficient system that Deepwater will provide is critical to meeting our nation’s maritime homeland security

needs now and into the future.
Deepwater system assets leverage technology to perform

maritime security and safety missions more effectively through a

completely integrated and interoperable system. The IDS

cutters and aircraft will have the ability to remain on-scene and

provide vital command and control capability for an extended

period of time, and, will provide the Coast Guard with far better

dynamic capabilities to detect and interdict potential threats on

the high seas.

The Coast Guard’s layered defense of Integrated Deepwater

System cutters, patrol boats, new maritime patrol aircraft, and

unmanned aerial vehicles will literally “push out” America’s

borders enhancing the Coast Guard’s ability to counter threats

throughout the maritime domain, thwart catastrophes to

vulnerable infrastructure (oil rigs, deepwater channels, shipping)

and keep commerce, especially military materiel load-outs, safe

in the near shore zones at harbor entrances and between ports.

Deepwater will deliver to the Coast Guard 21st-century

capability to face the nation’s 21st-century challenges. The

investment in the Deepwater program is an investment in

homeland safety and security and translates to a more secure

America in the 21st century.

11

The Coast Guard’s Integrated

Deepwater System (IDS) is the

Nation’s answer to meeting

America’s future maritime needs.

Deepwater is essential for the

safety and security of the

American public:

• Homeland Security necessitates

pushing America’s maritime

borders outward, away from

ports and waterways so

layered, maritime security

operations can be

implemented. Deepwater

provides this capability.

• Maritime Domain Awareness

(MDA) — knowledge of all

activities and elements in the

maritime domain — is critical to

maritime security. IDS is a

critical enabler for enhancing

current MDA and developing a

far more robust and effective

system. Deepwater provides

this capability.

• A network-centric system of

Command, Control,

Communications, Computers,

Intelligence, Surveillance and

Reconnaissance (C4ISR) is

required for effective

accomplishment of all Coast

Guard missions. Deepwater

provides this capability.

• Interdiction of illegal drugs and

migrants and protection of

living marine resources are

important elements of

Homeland Security and require

capable Deepwater assets.

Deepwater provides this

capability.
12

The Coast Guard’s Fiscal Year (FY) 2004 budget proposal contains critical new resources to establish a new

level of maritime security operations while restoring and building on past capabilities. The Coast Guard’s

goal is to create sufficient capacity and capabilities to support the President’s National Strategy for

Homeland Security while sustaining the traditional missions the American public expects.

The Coast Guard is attempting to accomplish three primary objectives in FY 2004:

● Recapitalize legacy assets and infrastructure

● Build-out Homeland Security Capabilities

● Sustain non-Homeland Security missions near pre-9/11/2001 levels

RECAPITALIZE LEGACY ASSETS AND INFRASTRUCTURE

To accomplish its goals, the Coast Guard must recapitalize aging assets and infrastructure. Based on the

organization’s current capacity levels and the required capabilities immediately needed for Homeland

Security and its other important missions, two major projects are essential:

1. Integrated Deepwater System ($500M in Capital Acquisitions or (CA)): The IDS acquisition will replace

or modernize obsolete and maintenance intensive assets that are not capable of meeting the current mission

demand. In FY 2004, new assets include:

● Conversion of five 110’ patrol boats to more capable 123’ patrol craft.

● Seven Short Range Prosecutor small boats.

● Funding for the first National Security Cutter (to be delivered in FY 2006).

● Continued development of a Common Operating Picture (COP), command and control system at four

shore-based command centers.

2. Rescue 21 ($134M in CA): Previously known as the National Distress and Response System

Modernization Project or NDRMSP, this project will be 35% complete by the end of FY 2004 and fully

completed by the end of FY 2006. Rescue 21 will be the Coast Guard’s primary system to perform

command, control and communications in the inland and coastal zones for all Coast Guard mission areas.

BUILD-OUT HOMELAND SECURITY OPERATIONS

The Coast Guard is the lead federal agency for Maritime Homeland Security (MHLS). The Coast Guard’s

mission is to protect the U.S. Maritime Domain and the U.S. Marine Transportation System and deny their

use and exploitation by terrorists as a means for attacks on U.S. territory, population and critical

infrastructure. Critical new initiatives in FY 2004 include:

1. Maritime Domain Awareness ($34M in Operating Expenses or OE): This request will provide increased

analytic, support and systems capability to the Coast Guard’s intelligence program to fully leverage our

recent inclusion in the Intelligence Community. It includes:

● Leased satellite channels for large cutters and satellite handsets/network connectivity for smaller assets.

● Universal Automated Identification System (UAIS) for large cutters consistent with International

Maritime Organization and domestic carriage requirements.

● Prototype Joint Harbor Operations Center (JHOC) with DoD personnel to provide surveillance and

command and control capability to protect critical infrastructure.
2. Homeland Security Operations ($108M in OE and $64M in

CA): This request provides the capabilities and capacity to

perform layered maritime security operations. It includes:

● Six new deployable Maritime Safety and Security Teams

(MSSTs), for a total of 12 teams.

● 58 new Sea Marshals to preclude commercial vessels from

being used by terrorists as weapons.

● 43 new Port Security Response Boats (Small) to increase

organic presence in ports.

● Stand-up of Stations Boston and Washington (D.C.).

● Two new Port Security Units to support domestic and overseas

military operations for a total of 8 teams.

● Eight Medium Port Security Response Boats ($12M in CA) to

increase duration/scope of maritime security patrols.

● Nine 87’ Coastal Patrol Boats ($52M in CA) to escort vessels,

control movement of High Interest Vessels, intercept and

board vessels and carry our coastal surveillance.

SUSTAIN NON-HLS MISSIONS

The Fiscal Year 2004 budget restores the Coast Guard’s multimission focus to near pre-September 11, 2001 levels. This level of

activity is critical to achieve America’s economic and national

security goals by preventing illegal activity on our maritime

borders. It will also enable Coast Guard to maintain its surge

capability which was evident before and after September 11, 2001.

One of the Coast Guard’s greatest attributes is the innate flexibility

to immediately shift mission focus to meet America’s greatest

threat while maintaining other mission areas for the American

public. Critical new initiatives include:

1. Maritime Search and Rescue/Personnel Safety ($26M in OE):

This request provides enhancements to the Coast Guard’s search

and rescue (SAR) capability as well as programs to enhance our

overall mission accomplishment. Critical new initiatives include:

● Additional personnel towards achievement of a 68-hour

workweek at small-boat stations.

● Additional personnel towards achievement of a 12-hour watch

standard at command centers.

● Training enhancements at the National Motor Lifeboat School

and Boatswainmate “A” school.

13

“The United States asks

much of its U.S. Coast

Guard and we will ensure

the service has the

resources needed to

accomplish its multiple

missions.‘’

—President’s National

Strategy for Homeland

Security (July, 2002)
14

As a multi-mission service, the U.S. Coast Guard is carrying on with its essential pre-September 11th duties while still

keeping a watchful eye out for threats to the homeland. The need for safe, clean, secure, and efficient waterways was

not diminished by the attacks. If anything, the need for the Coast Guard’s other mission areas has increased. Because

of the Coast Guard’s unique multi-mission nature, most of the budget items discussed in this document in the context

of homeland security also contribute to traditional Coast Guard missions.

The Coast Guard’s outcome oriented performance goals and measures are used to track and manage its progress

and achievement in attaining its strategic goals. In addition to the performance measures and outcomes outlined on

the following pages, the Coast Guard is in the process of expanding its goals and measures to evaluate the success of

its homeland security role. The Coast Guard also continues to use and develop output measures to capture the status

of specific critical activities that enable the service to achieve its performance goals. Detailed information on Coast

Guard performance goals and measures can be found in the Coast Guard’s performance plan.
The Coast Guard’s Performance Goals

Maritime Safety

◆ Search and Rescue – Save all mariners in distress and property 

in peril

◆ Maritime Worker Fatalities – Eliminate crew member fatalities

◆ Passenger Vessel Fatalities – Eliminate passenger vessel fatalities

◆ Recreational Boating Fatalities – Eliminate recreational 

boating fatalities

Maritime Homeland Security

◆ Homeland Security (ports, waterways, and coastal security) —

prevent maritime terrorist attacks, reduce America’s vulnerability to

terrorism, and minimize the damage from attacks that do occur

◆ Drug Interdiction – Reduce the flow of illegal drugs

◆ Undocumented Migrant Interdiction – Eliminate the flow of

undocumented migrants entering the U.S. via maritime routes

◆ Foreign Fishing Vessel Incursions – Eliminate illegal

encroachment of the 200 mile U.S. Exclusive Economic Zone by

foreign fishing vessels

Protection of Natural Resources

◆ Oil Spills – Eliminate oil discharged into the water

◆ Marine Debris – Eliminate plastics and garbage discharged 

into the water 

◆ Living Marine Resources – Improve the health of fish stocks and

other living marine resources

◆ Marine Pollution – Minimize the adverse effects of pollution

Maritime Mobility

◆ Navigation Aids – Maximize vessel mobility in ports and waterways

◆ Vessel Traffic – Eliminate vessel collisions, allisions, and groundings

◆ Domestic Icebreaking – Maintain maritime navigation in 

icebound areas

◆ Polar Operations – Provide icebreaking capability needed to

support national interests in the Polar Regions

National Defense

◆ Military Operations – Provide core competencies when requested

by the Department of Defense or the Department 

of State

◆ Military Readiness – Achieve and sustain complete military

readiness for U.S. Coast Guard units as required by the 

Department of Defense

15

FY 2004 budget contains

critical new resources to

establish a new level of

maritime security

operations while restoring

and building on past

capabilities.
16

Search and Rescue

The number of recreational and

commercial marine users continues to

increase as more Americans move to

coastal areas and global trade grows.

Operating in a remote, unforgiving

environment, many mariners lose their

lives, many more are injured, and

billions of dollars of property are at risk.

The U. S. Coast Guard is the sole

government agency that has the

expertise, assets, and around the clock,

on-call readiness to conduct search and

rescue (SAR) missions in all areas of the

maritime environment.

In 2002, the Coast Guard answered

nearly 37,000 calls for help, saving

3,653 lives, or 84.4% of all mariners in

imminent danger. For the second year

in a row, the results show a slight

improvement over the previous year.

Overall, 2002 saw a slight decrease in

the number of search and rescue cases,

which may be related to a change in

behavior in the aftermath of the events

of September 11, 2001. 

A number of projects are underway which will ultimately improve our ability to plan and respond to

maritime distress incidents. Continued improvements in training, search planning tools and increased staffing

of our rescue coordination centers and group operations centers will continue to enhance the effectiveness of

our front line SAR planning personnel. Rescue 21, the modernization of the National Distress and Response

System, will greatly enhance our ability

to assist mariners in distress. The

modernized system will improve

communications coverage and reliability,

provide better position localization and

add immediate voice recording and

playback capability. In addition, the

modernized system will enable the Coast

Guard to receive digital selective calling

alerts and will provide better command

and control of search and rescue assets.

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

95%

90%

85%

80%

75%

70%

65%

60%

90%

79%

85% 84% 84% 84%

87.5%

82.7%

% Saved Target

Save All Mariners in Distress

85% 85%

84.2%

85% 84.4% 85%

“I am a Lifesaver”
Maritime Worker Fatality Prevention

Coast Guard safety programs aim to ensure the safety of

crewmembers on board thousands of vessels including fishing

vessels, tow/tug boats, passenger vessels, supply vessels in the

mineral and oil industry, and large ocean going freight and tank

vessels using three broad approaches; preventing accidents,

responding to accidents when they occur, and investigating

accidents to prevent them from happening again in the future. 

In the fishing industry, human error plays a significant role in

worker fatalities; poor material condition of vessels or equipment

plays a lesser role. Approximately 47% of all maritime worker

fatalities occur on commercial fishing vessels. Deaths in this industry

involve falls overboard, entanglement, diving, etc. Crewmember

fatalities in FY 2002 numbered 53, a significant reduction in

crewmember fatalities from just two years ago. 

To continue this reduction, the Coast Guard will enhance

prevention and outreach efforts to target the highest risk areas.

The Coast Guard is focusing on high-risk fisheries, those not

currently participating in dockside examination programs, to

increase vessel safety under the Commercial Fishing Vessel Safety

(CFVS) Program. The CFVS Program seeks to improve safety in

the fishing industry by helping fishermen comply with the

regulations issued under to the Commercial Fishing Industry

Vessel Safety Act of 1988. 

16

14

12

10

8

6

4

2

0

12.4

4.9

13.7

9.1

7.8

6.5

7.6

4.3

8.7

Maritime Worker Fatalities per 10,000 Workers

8.6 8.2

1997 1998 1999 2000 2001 2002 2003 2004

Maritime Worker Fatalities per 10K Workers Target

17

Marine Safety

and Security

Funding Profile

(Dollars in millions)

OE* CA*

FY98 $384.6 $36.9

FY99 $417.6 $29.3

FY00 $395.6 $34.4

FY01 $355.7 $40.9

FY02 $1,266.2 $191.4

FY03 $1,423.0 $219.5

FY04 $1,569.0 $249.8

Search and 

Rescue 

Funding Profile

(Dollars in millions)

OE* CA*

FY98 $345.8 $50.2

FY99 $419.9 $47.1

FY00 $451.1 $169.2

FY01 $575.2 $66.2

FY02 $414.5 $107.4

FY03 $510.0 $132.1

FY04 $538.9 $138.9

* OE: Operating Expenses

(includes OE, RT, EC&R)

for FY 2002 - FY 2004; 

CA: Capital Acquisitions

(includes AC&I, RDT&E,

AB) for FY 2002 - FY 2004
18

Maritime Safety—Continued

Passenger Vessel Safety

Each year millions of passengers are carried aboard cruise ships, ferries, charter boats, sightseeing boats,

gaming vessels and other commercial passenger vessels in the U.S. The Coast Guard’s Commercial Vessel

Safety program aims to ensure

the safety of passengers on

board these vessels using three

broad approaches; preventing

accidents, responding to

accidents when they occur,

and investigating accidents to

prevent them from happening

again in the future.

The 2002 data showed a

marked decrease in actual

number of passenger deaths, as

well as a decline in the death

rate; the number of deaths as

compared to the number of

potential passengers

represented by total passenger

vessel capacity. In FY 2002 this

was 0.4 per 1 million potential

passengers as compared to 1.0

for FY 2001. 

The Coast Guard continues

to promote safe passenger

travel through the

development and implementation of appropriate U.S federal regulatory standards on domestic passenger

vessels. Personnel stationed at field offices

around the country enforce these and other

standards by conducting periodic boardings.

The Coast Guard also represents the U.S. at

the International Maritime Organization for

the purpose of advocating responsible

international standards on foreign-flag

passenger vessels. The Service is also

developing risk management tools to focus

on the primary threats in the port area. The

Coast Guard’s core prevention and response

programs, including industry partnerships

and incentive programs, have been effective

in ensuring the safety in this maritime

sector, allowing Americans to travel safely

on the water.

1997 1998 1999 2000 2001 2002 2003 2004

15

12

9

6

3

0

12.4

4.9

13.7

1

Fatalities per million Passengers Target

Fatalities Aboard Passenger Vessels

per 1,000,000 Passengers

2.5

0.4

2.2 2.1

9.1
Recreational Boating Safety

Recreational boating participation continues to grow in America, with nearly 75 million adult (age 16 and

over) recreational boating participants

now, along with millions more youth.

Unfortunately, approximately 800

Americans die each year in boating

accidents. The cause of death for most of

these fatalities is drowning. To reduce the

number of fatalities, the Coast Guard works

diligently with the states and boating safety

organizations to implement accident

prevention and response measures. 

There were 742 recreational boating

fatalities in CY 2001, a decreasing trend the

Coast Guard estimates will continue with a

projected 707 fatalities in CY 2002. 

The Coast Guard hopes to continue

reducing recreational deaths on the water

through outreach programs such as

“Operation BoatSmart.” The Coast Guard and its partners impress upon boaters the importance of wearing

Personal Flotation Devices (PFDs), knowing the “rules of the road,” and having the proper safety equipment

aboard their boat.

Volunteers in the Coast

Guard Auxiliary and U.S.

Power Squadron teach

boating safety classes and

conduct Vessel Safety

Checks, knowing that an

educated boater is a safe

boater. Grants are also

provided to make similar

prevention programs

possible at the state level.

Inevitably, there will be

people who will make

poor decisions on the

water. The Coast Guard’s

ability to provide

enhanced response,

anticipated through

projects like Rescue 21, 

will be critical to further

reducing boating fatalities.

19

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

900

850

800

750

700

650

831

848

888

770

857 864

778

742

Recreational Boating Fatalities Target

Recreational Boating Fatalities

742 742 747 742 749
20

Illegal Drug Interdiction

As the only military service with law enforcement authority, the U.S. Coast Guard apprehends smugglers 

at sea attempting to import illegal drugs into the United States. In addition to the Coast Guard's efforts to

halt the destructive influence of drug

consumption by disrupting the drug

market, trafficking must be obstructed

to stem other criminally related acts

and to prevent potential funding

sources for other illegal actions, 

such as terrorism.

The flow of cocaine toward the U.S.

remains at a relatively high level. The

official FY 2002 Cocaine seizure rate

will not be available until March 2003,

but the Coast Guard does not expect

to meet its 2002 performance target of

18.7% for the cocaine seizure rate.

The Coast Guard seized 53.4 metric

tons of cocaine in FY 2002, the 3rd

largest annual total ever. The Coast

Guard seized 72.2 metric tons of drugs

in FY 2002, falling just short of our

75 metric ton goal. One possible reason for this drop was the apparent increase in the smugglers’

willingness to destroy their vessels rather than face interdiction and prosecution. 

To improve our interdiction rate, the

Coast Guard will continue to pursue the

most efficient use of resources. During FY

2003 the Coast Guard plans to modify the

deployment policy for cutters participating

in OPERATION NEW FRONTIER. The

flexibility created by the new policy will

effectively allow deployed units to patrol

twice as much area as before. Based on

OPERATION NEW FRONTIER cutters' high

end-game success rate, this change will

improve our success against the go-fast

threat in the transit zone. 

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

25%

20%

15%

10%

5%

70%

0%

4.5%

6.5% 6.1% 5.3%

16.3%

10.1%

12.2%

10.6%

% Cocaine Seizure Rate Target

Seizure Rate for Cocaine in the Transit Zone

18.7%

20.7%

22.7%

11.1%

15%

NOTE: FY 2001 results are a preliminary estimate.

“I am a Maritime Guardian”
21

Undocumented Migrant Interdiction

Illegal immigration poses a serious threat to America’s economic

and social well-being, and challenges the integrity of our borders as

a sovereign nation. Thousands of people try to enter this country

illegally every year using maritime routes, many via coordinated

smuggling operations. A significant number perish when

overloaded, un-seaworthy vessels capsize. The Coast Guard

maintains an effective presence in migrant departure, transit and

arrival zones. The Coast Guard patrols more than 144,000 square

miles of ocean between Haiti and the U.S. including areas around

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

100%

95%

90%

85%

80%

75%

70%

60%

91.5%

74.9%

94.4%

91.1%

86.7% 89.0%

% Interdicted or Deterred Target

Undocumented Migrants Interdicted or Deterred

87% 87% 87%

88.3%

87%

Domestic 

Fisheries & 

Marine 

Sanctuaries 

Enforcement

Funding Profile

(Dollars in millions)

OE* CA*

FY98 $397.8 $74.4

FY99 $380.9 $75.1

FY00 $353.0 $189.0

FY01 $415.6 $47.9

FY02 $367.4 $74.6

FY03 $515.0 $111.4

FY04 $562.5 $124.9

* OE: Operating Expenses

(includes OE, RT, EC&R)

for FY 2002 - FY 2004; 

CA: Capital Acquisitions

(includes AC&I, RDT&E,

AB) for FY 2002 - FY 2004

82.5%
22

the Bahamas and Cuba. In addition, we respond to intelligence on voyages along the east and west coasts

and throughout U. S. territories in the Pacific in our efforts to curtail illegal immigration.

We met our goal in FY 2002, interdicting or deterring illegal immigration by sea at a rate of 88.3%.

There were only 2,542 successful migrant landings on U.S. shores compared to an estimated maritime

migrant threat of 21,750.

The Coast Guard will operate along maritime routes to deter attempts by undocumented migrants, and

to detect and stop those who try to enter the U.S. illegally. We will establish agreements with source

countries to reduce migrant flow. We will optimize assets in order to deter illegal immigration and

conduct interdiction operations. Intelligence will be utilized in determining how and where to direct

Coast Guard forces. 

Foreign Fishing Vessel Incursions

The 1976 Magnuson-Stevens Fishery Conservation and Management Act (MSFCMA) established The U.S.

Exclusive Economic Zone (EEZ). This Act claims the maximum EEZ allowed by international law, extending

200 miles from U.S. shores. The U.S. EEZ is the largest in the world, covering 3.4 million square miles of

ocean and 95,000 miles of coastline. The Coast Guard is the only agency with the maritime authority and

infrastructure to project federal law enforcement presence over this huge area. The EEZ is a major source

of renewable resources - providing a livelihood for U.S. commercial fishermen and numerous related

enterprises, and recreational opportunities for millions of people. Within the EEZ, U.S. citizens have

primary harvesting rights to fish stocks;

foreign fishing is significantly limited and has

been restricted since 1991. As the primary

agency responsible for at-sea enforcement of

the MSFCMA, it is the Coast Guard's

responsibility to ensure foreign fishermen 

do not harvest fish stocks illegally.

The Coast Guard detected 250 incursions

into the U.S. EEZ in 2002, up slightly from

the previous year, but only 17% of the total

number of suspected incursions (1450)

according to intelligence estimates.

Increased detections in the Central/Western

Pacific (52 to 89) are mainly responsible for

the increase. Annual EEZ incursion

numbers vary greatly due to a number of factors outside USCG control. For example, a change in foreign

fisheries management measures may result in a greater incentive for fishermen to illegally fish in U.S.

waters. Furthermore, oceanic and climatic shifts can cause significant fluctuation in the migratory patterns

of important fish stocks that cross EEZ borders. Illegal fishing activities sometimes increase as commercial

fishermen follow their intended catch. 

1996 1997 1998 1999 2000 2001 2002 2003 2004

450

400

350

300

250

200

150

100

145

213 218

428

170

Foreign Fishing Vessel Incursions Target

Foreign Fishing Vessel Incursions

202 202 213 202

250

202

Maritime Security—Continued
23

While Coast Guard presence provides a deterrent to illegal

fishing, it is not possible for the current fleet of Coast Guard assets to

cover the entire 3.4 million square mile EEZ to enforce all laws.

There are a number of initiatives underway to help thwart illegal

foreign fishing: continued cooperation with other countries; the

entry into force of the United Nations Fish Stocks Agreement

(UNFSA), a major international agreement with strict enforcement

measures adopted in 2000 to regulate tuna fishing in the

Central/Western Pacific; and development of fisheries enforcement

MOU with Mexico and a ship rider agreement with Russia. These

initiatives will be instrumental in achieving goals. More widespread

use of Vessel Monitoring Systems (VMS) being advocated by the

U.S. and many international fisheries organizations will also be a

tremendous asset in detecting and interdicting violators.

Enforcement of

Laws & Treaties

Funding Profile

(Dollars in millions)

OE* CA*

FY98** $695.1 $64.8

FY99** $839.8 $301.8

FY00 $850.0 $295.0

FY01 $1,007.3 $115.9

FY02 $837.7 $213.7

FY03*** $721.3 $190.1

FY04 $821.2 $210.5

* OE: Operating Expenses

(includes OE, RT, EC&R)

for FY 2002 - FY 2004; 

CA: Capital Acquisitions

(includes AC&I, RDT&E,

AB) for FY 2002 - FY 2004

** Domestic Fisheries &

Marine Sanctuaries

Enforcement Funding

Profiles removed for 

FY 1998 and FY 1999.

*** For FY 2004, The drug

interdiction portion of ELT

is $517.5 million for

Operating Expenses (OE)

and $143.5 million Capital

Acquisitions (CA).
24

Oil Spills

Our oceans, harbors, rivers,

and lakes are an important and

irreplaceable natural resource.

As a nation dependent on

petroleum products as a major

energy source, protection of the

maritime environment from

accidental oil spills continues to

be an important mission area

for the Coast Guard. The Coast

Guard’s approach to

environmental protection

focuses foremost on our

prevention programs. When

accidents do happen, we

respond with our partners in

other federal agencies, state

governments, and the maritime

industry to ensure the impacts

of a spill are minimized. Core

prevention, preparedness, and response programs, including industry partnerships and incentive programs,

have been effective in reducing oil spill volume.

In 2002 the volume of oil spilled per million gallons shipped was 0.6 gallons, substantially lower than the

Coast Guard’s target of 2.5 gallons. A significant

portion of all the oil spilled into U.S. waters

continues to be the result of only a few large

spills. The risks of bunker spills are expected to

increase in direct proportion to the increase in

vessel size and vessel traffic. Increasing demand

for oil products will continue to strain capacity at

refineries and will also lead to greater risks. In

response to these risks, the Coast Guard will

employ emerging technology, lessons learned,

and measurement systems to maintain and

adjust existing prevention, response, and

preparedness programs. 

1997 1998 1999 2000 2001 2002 2003

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

.5

0

2.9

1.6

Oil spilled per million gallons shipped Target

Oil Spilled Per Million Gallons Shipped

3.4

4.0

0.6

2.5 2.4

4.1

2.8

4.3

2.6
25

Marine Debris

Marine debris degrades our oceans, beaches, coral reefs, wildlife

and coastal communities. One of the most harmful effects of marine

debris is its lethal impact on birds and marine animals. Discarded

fishing lines, derelict nets and other marine debris kill endangered

species like the Hawaiian monk seals by entangling them until they

drown or starve to death. Debris has killed countless birds, seals,

sea turtles, and other marine creatures. Nets also entangle and kill

coral, the living base of reefs that provide homes for numerous fish

and invertebrates.

Marine

Environmental

Protection

Funding Profile

(Dollars in millions)

OE* CA*

FY98 $299.6 $26.8

FY99 $323.0 $28.7

FY00 $329.6 $39.3

FY01 $307.5 $35.4

FY02 $124.0 $9.6

FY03 $209.1 $25.7

FY04 $223.2 $23.8

* OE: Operating Expenses

(includes OE, RT, EC&R) for

FY 2002 - FY 2004; 

CA: Capital Acquisitions

(includes AC&I, RDT&E,

AB) for FY 2002 - FY 2004

1995 1996 1997 1998 1999 2000 2001 2002 2003

60

50

40

30

20

10

0

48

52 54 54

41

Plastics and Garbage Debris Target

Reduce Plastics and Garbage Discharged

43 42

52

36 44

31

“I am a Protector of the Environment”
26

The Coast Guard’s approach to this aspect of environmental protection focuses foremost on prevention

programs. The Coast Guard represents the United States at the International Maritime Organization for the

purpose of advocating responsible international environmental standards for vessels. Personnel stationed at

field offices around the country enforce standards by conducting periodic boardings to ensure that vessels

are in compliance with international standards. The Service also works in partnership with local port

agencies to ensure that facilities are available for vessels to discharge garbage. Although data are not yet

available for 2002, recent volunteer beach cleanups demonstrated that the Coast Guard’s enforcement and

education efforts have helped steadily improve results in this performance goal area. 

Pollution Response Preparedness

Pollution response preparedness is vital to protecting public health, maintaining a healthy environment

and minimizing disruptions to maritime transportation and trade. The Coast Guard’s pollution

preparedness and response program seeks to minimize the impact of discharges of oil and releases of

hazardous materials into the

maritime environment. Through

statutory authorities and regulatory

requirements, the Coast Guard

provides an environmental safety net

for the public, as well as a level

regulatory playing field for the

maritime industry. Internationally,

the Coast Guard is recognized as the

premier expert in pollution

preparedness and response.

Additionally, the Coast Guard is the

recognized leader among nonfederal wildland firefighting agencies

in the use of the Incident Command

System (ICS) during emergency

response operations. 

Although data are not available

for 2002 in this area, the Coast

Guard is currently evaluating readiness measures to assess its ability to respond to pollution incidents and

other emergencies. The Coast Guard plans to evaluate sensors that can track oil spills, particularly at

night, and include oil spill consideration factors in future sensor suite requirements. The Coast Guard will

continue the development of a national-level Readiness Management System, which examines

preparedness at the field-unit level among several key success areas including stakeholder outreach and

engagement, policy and doctrine, contingency planning, equipment capabilities, training and exercises,

and preparedness system evaluations. 

Protection of Natural Resources—Continued
Living Marine Resources—Fishery Protection

The 3.4 million square mile U. S. Exclusive Economic Zone is a major source of renewable wealth –

providing a livelihood for commercial fishermen, a vast supply of food, and recreation. Commercial and

recreational fisheries contribute about $55

billion annually to the U.S. economy.

Responsible management of ocean resources

is critical as the world's population continues

to grow, demanding increasing food sources.

The Coast Guard is the only agency with the

maritime authority and infrastructure to

project federal law enforcement presence

over this huge area.

The Coast Guard aims to protect fish stocks

through at-sea enforcement of management

plan regulations. During fishery protection

boardings in 2002, the Coast Guard found a

compliance rate of 97.3% among domestic

fishermen. While this compliance rate is at

an acceptable level, it is a slight decrease

from the previous year, possibly because the Coast Guard’s on-the-water presence for fisheries

enforcement decreased in FY 2002, and some fishermen took advantage of the absence.

Increased use of Vessel Monitoring Systems (VMS) will help with closed area enforcement but cannot be

a substitute for an at-sea

presence to ensure compliance

with gear and species based

regulations. The Coast Guard is

revitalizing its deepwater assets

to make this presence possible.

The Coast Guard is also using

fisheries intelligence analysts 

in key Coast Guard regions to

allocate its enforcement

resources more effectively.

Finally, continued close

partnering with other federal

and state agencies will also be

key to achieving future goals.

27

Goal: Effectively enforce federal regulations

that provide stewardship of living marine

resources and their environments.

Performance measure: Significant fishing violations

2000 2001 2002

Significant Violations 273 92 113

# Domestic Boardings 6492 6592 4121

Compliance Rate Actual 95.80% 98.60% 97.30%

Compliance Rate Goal N/A N/A N/A
Maritime Navigation—Vessel Traffic

As maritime trade increases,

and larger volumes of

commercial and recreational

vessel traffic squeezes ports and

waterway capacity, navigational

accidents will have more of an

impact on freight movements

and increase the risk of

environmental damage. The

Coast Guard is constantly

seeking to balance safety and

environmental protection while

ensuring an efficient Marine

Transportation System (MTS).

Major initiatives in this goal area

include developing regulated

navigation areas, providing

Vessel Traffic Services to

improve communications, and

sponsoring Harbor Safety

Committees who address port

and waterway issues and recommend strategies for improving the MTS.

Commercial vessels collided with other vessels, struck fixed objects, or ran aground 1,936 times in 2002.

This was an increase from 2001 and a break

from the downward trend over the past

several years. However, the Coast Guard

still met its goal in this area. 

Analysis shows that collisions, allisions and

groundings are strongly affected by human

error. Faster, larger, deeper-draft vessels in the

port area, and other restricted waterways, will

only increase the navigational risk of human

error. In response to this risk, the Coast Guard

is pursuing the Port and Waterways Safety

Systems (PAWSS) project, which will provide

enhanced Vessel Traffic Services to facilitate

safe transportation of waterborne commerce. 

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

3000

2500

2000

1500

1000

500

0

2716 2517

2456 2439

2194 2152

Collisions, Allisions,

and Groundings

Target

Reduce Collisions, Allisions and Groundings

2010

1923

2261

1677

2098

1936

“I am a Keeper of the Waterway”

28
29

Aids To Navigation

In order to facilitate the safe transit of maritime commerce, the

Coast Guard maintains the system of Aids to Navigation that guide

mariners across America’s waterways. The lighthouses, ranges,

beacons, and buoys that mariners use for positioning during the

coastal, harbor approach, and restricted phases of navigation are an

integral part of the Coast Guard’s effort to prevent the financial and

human costs that result from collisions, allisions, and groundings.

These fixed and floating aids were in position and functioning

properly 98.3% of the time in 2002, an improvement from the

previous year, but short of the Coast Guard’s goal. There are

indications that the capital infrastructure is deteriorating, as ice and

storms take their toll. The Coast Guard’s newest buoytenders will

continue to correct discrepancies quickly and efficiently.

Aids to 

Navigation

Funding Profile

(Dollars in millions)

OE* CA*

FY98 $455.0 $120.3

FY99 $483.7 $120.5

FY00 $480.0 $106.2

FY01 $647.4 $74.5

FY02 $689.4 $119.4

FY03 $776.9 $35.7

FY04 $852.0 $22.1

Ice Operations

Funding Profile

(Dollars in millions)

OE* CA*

FY98 $69.2 $19.4

FY99 $99.8 $15.9

FY00 $108.3 $163.1

FY01 $111.9 $12.9

FY02 $126.2 $14.3

FY03 $158.8 $8.5

FY04 $173.1 $6.3

* OE: Operating Expenses

(includes OE, RT, EC&R)

for FY 2002 - FY 2004; 

CA: Capital Acquisitions

(includes AC&I, RDT&E,

AB) for FY 2002 - FY 2004
30

Maritime Mobility—Continued

In addition to fixed short-range aids to

navigation, the Coast Guard operates the longrange navigation systems known as LORAN-C

and Differential GPS. The Coast Guard’s 24

LORAN stations were available an impressive

99.84% of 2002, while DGPS fell less than .5%

short of its goal of 99.7% availability. The Coast

Guard’s Command and Control Engineering

Center (C2CEN) and the Coast Guard

Navigation Center will continue research

solutions to such complex problems as antenna

icing, reducing lightning damage, reducing

GPS signal multi-path errors, and effective

antenna and ground plan configurations.

Domestic Icebreaking

Shipping in the Great Lakes and Northeast during winter months provides the most cost-effective

transportation of raw materials and goods for many industries, particularly those that ship bulk cargoes and

home heating oil. With the formation of ice in our critical waterways, marine traffic is sustained only with 

U.S. Coast Guard icebreaking services. Winter waterway closures increase transportation costs substantially.

Studies indicate that Coast Guard icebreaking services have an estimated annual outcome value of $49 to 

$93 million to industry alone. In addition to the direct benefits, the Great Lakes iron ore, steel and freight

transportation industries constitute a considerable economic force within the United States, employing 485,000

to 525,000 people, drawing an estimated annual payroll in excess of $6.7 billion. 

The December-February temperature

for the contiguous United States was the

fifth warmest since records began in the

late 1800’s. The Coast Guard met its

goal of limiting the number of waterway

closures on the Great Lakes and the

Northeast--there were no waterway

closures. The value of the cargo on the

ships assisted by Coast Guard icebreakers

on the Great Lakes alone was estimated

at just over $119 million dollars. The

Coast Guard is in the process of

replacing the WWII-era Mackinaw, the

largest icebreaker on the Great Lakes,

with a modern multi-mission cutter, as

well as replacing the three Great Lakes

buoytenders that also break ice.

1996 1997 1998 1999 2000 2001 2002 2003 2004

9

8

7

6

5

4

3

2

1

0

0

7

0 0 0 0

Closure Days Target

Limit Closures to Critical Waterways to 2 Days

8

2

7

8

2

8

2

8

2

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

100

99

98

97

96

95

94

99.3 99.2

98.3

98.9

98.4 98.7

Navigation Aids Target

Short Range Aid to Navigation Ability

99.7 99.7 99.7

98.2

99.7

98.3

98.8

NOTE: target is 2 days in an average winter,

and 8 days in a severe winter.
Polar Operations

The Coast Guard is the sole U.S. operator

of heavy icebreakers, conducting polar

operations to facilitate the movement of

critical goods and personnel in support of

scientific and national security activity in

the Polar Regions. In addition to logistics,

polar icebreakers promote a U.S. presence

in the Polar Regions, serve as floating

scientific laboratories to support scientific

research, and support State Department

treaty compliance inspections. 

The Coast Guard’s polar operations

program met its goals for 2002. USCGC

Polar Sea and USCGC Polar Star successfully completed Operation Deep Freeze, the annual re-supply of

McMurdo Station in Antarctica. Due to the unprecedented ice conditions caused by the presence of the iceberg

B-15, both Polar-class icebreakers were deployed to Antarctica to ensure the success of this mission. Both ships

opened the channel through the ice and escorted the tanker and container ship to the pier, without which

America’s polar activities would not be possible.

31

1997 1998 1999 2000 2001 2002 2003 2004

100%

90%

80%

70%

60%

50%

40%

100

Polar Operations Target

Provide Icebreaking Support as Requested

100 100 100 100 100 100 100 100 100
32

Military Readiness

The U.S. Coast Guard — as one of the five military services and a branch of the Armed Forces —

provides essential and unique capabilities that support our Nation’s National Security and National Military

Strategies. Discussions between the Department of Defense, Department of Transportation, the Navy and

the Coast Guard have identified appropriate Coast Guard

roles targeted to the Service’s core competencies and unique

skills in Maritime Interception Operations, Port Operations,

Security and Defense, Coastal Sea Control Operations,

Military Environmental Response Operations, and Peacetime

Military Engagement. Today, the Coast Guard is playing an

ever increasing role in the defense of the nation as a force

provider to the Combatant Commanders in support of the

global war on terrorism, and at home as the Lead Federal

Agency for Maritime Homeland Security addressing the

formidable security challenges in our nation’s ports,

waterways, coastal areas and maritime approaches.

The Coast Guard’s level of military readiness in 2002

allowed the Service to contribute to numerous successful

deployments to the Central Command, European Command

and Southern Command Areas of Responsibility. The

Service achieved a three percent increase in its combined

readiness rating for high endurance cutters, patrol boats and

Port Security Units over 2001’s numbers, maintaining 

combat ready units 70 percent of the time. Many readiness

degradations were linked to equipment casualties associated

with operating an aging cutter fleet and unit training deficiencies. However, the readiness deficiencies

were considered manageable and were quickly closed with an infusion of maintenance support upon

notification of an impending deployment requirement. 

Recruiting incentives, increases in unit

budgets and establishment of a formal

training and standardization program have

been established to close readiness gaps in

Port Security Units. The Coast Guard

intends to pursue a number of initiatives 

to increase military readiness, such as a

center for Port Security Unit training,

improving Navy/Coast Guard

interoperability, and continued

participation in military operations,

training and readiness exercises in

accordance with existing agreements to

ensure Coast Guard forces are properly

trained, equipped and staffed to meet

Combatant Commander requirements.

2000 2001 2002 2003 2004

100%

90%

80%

70%

60%

50%

40%

51

Military Readiness Target

Percentage of days the designated number of

Critical Defense assets maintain a Combat

Readiness rating of 2 or better

100 100 100

67

100

70

NOTE: FY 2001 results only include 3 quarters of data due to technical

difficulties in obtaining data from the Pentagon following damage to the

facility sustained from the September 11th attack.

“I am a Line in the Ocean”
33

In the aftermath of the terrorist attacks of 11 September, 2001 the

Coast Guard was directly involved with the Joint Staff and the United

States Navy implementing the global war on terrorism. In 2002, the

Coast Guard deployed resources to meet scheduled and short notice

contingency deployments in support of the Department of Defense

(DoD) and the State Department (DoS). Additionally, with more than

40 of the world’s 70 naval forces structured and focused on performing

Coast Guard functions, Combatant Commanders continue to seek U.S.

Coast Guard capabilities to support their theater security cooperation

initiatives which are intended to promote democratic values and

improve the international security environment. 

In 2002 the Coast Guard returned to the U.S. Central Command area

of responsibility, deploying a Port Security Unit detachment to enhance

antiterrorism/force protection capabilities in a key logistics port, and

increased its Law Enforcement Detachment presence in the Persian

Gulf, expanding the Navy’s ability to perform Maritime Interception

Operations in support of U.N. Sanctions against Iraq. The Coast Guard

also supported an increase in U.S. Southern Command requirements

deploying a full Port Security Unit to Guantanamo Bay, Cuba in support

of Operation Enduring Freedom and continued its support to U.S.

Pacific Command by providing a major cutter to participate in

combined training exercises with numerous East Asia nations. However,

the increase in operational tempo associated with the Coast Guard’s

new Maritime Homeland Security posture resulted in the cancellation of

a previously scheduled deployment to the U.S. European Command. 

The Coast Guard plans to maintain a permanent presence at U.S.

Northern Command and increase involvement in State and Defense

Department planning cycles to coordinate force allocation processes.

The Coast Guard also intends to create two additional Port Security

Units to be available for overseas deployments.

1996 1997 1998 1999 2000 2001 2002 2003 2004

100%

90%

80%

70%

60%

50%

40%

100

Military Operations Target

Provide Core Military Competencies When

Requested 100% of the Time

100 100

89

100 100 100 98 100

82

100

Military Operations Defense 

Readiness

Funding Profile

(Dollars in millions)

OE* CA*

FY98 $67.9 $5.0

FY99 $80.2 $6.1

FY00 $45.2 $11.3

FY01 $174.6 $20.1

FY02 $31.5 $6.7

FY03 $88.9 $23.6

FY04 $97.4 $20.4

* OE: Operating Expenses

(includes OE, RT, EC&R)

for FY 2002 - FY 2004; 

CA: Capital Acquisitions

(includes AC&I, RDT&E,

AB) for FY 2002 - FY 2004
34

Operating Expenses

This appropriation consolidates funding previously requested in the Coast Guard Operating Expenses, Environmental

Compliance and Restoration, and Reserve Training appropriations. Funding requested in this appropriation provides for the

safety of the public, and the Coast Guard’s work force, with an enhanced emphasis on its maritime homeland security

mission. The bulk of the funding requested in this appropriation supports the operations of the Coast Guard as it carries out

its unique duties as a peacetime operating agency and a branch of the armed forces. To fulfill its mission, the Coast Guard

employs multipurpose vessels, aircraft, and shore units, strategically located along the coasts and inland waterways of the

United States and in selected areas overseas. Additionally, a portion of the funding requested in this account will be used by

the Coast Guard to satisfy environmental compliance and restoration related obligations arising under chapter 19 of title 14 of

the United States Code. Finally, another portion requested in this appropriation will support the Coast Guard Reserve Forces,

which provide qualified personnel and trained units for active duty in event of conflict, national emergency, or natural and

man-made disasters. The reservists maintain their readiness through mobilization exercises, and duty alongside regular Coast

Guard members during routine and emergency operations. Reservists will continue to serve as a cost effective surge force for

response to human and natural disasters. 

FY 2002 FY 2003 FY 2004

Actual Request Request

OPERATING EXPENSES 1, 2, 5 3,857 4,403 4,837

CAPITAL ACQUISITIONS 3 737 747 797

MISC APPROPRIATIONS

• Retired Pay 876 889 1,020

• Boating Safety 6 64 65 64

• Oil spill Liability Trust Fund 68 61 61

Total 5,602 6,164 6,779

______________

Note 1: The Operating Expenses appropriation consolidates funding previously requested in the Operating Expenses,

Environmental Compliance and Restoration, and Reserve Training appropriations.

Note 2: The Capital Acquisitions appropriation consolidates funding previously requested in the Acquisition,

Construction, and Improvements, Research, Development, Testing, and Evaluation, and Alteration of Bridges

appropriations.

1 FY 2002 OE number includes $209,150K from P.L. 107-117 DoD Enacted and $189,000K from P.L. 107-206 

Supplemental.

2 FY 2002 OE number includes a transfer of $195K from ONDCP pursuant to P.L. 107-67.

3 FY 2002 CA number includes $66,000K from P.L. 107-206 Supplemental.

4 All FY 2002 numbers have rescission costs subtracted from total.

5 OE Figures exclude accrual and include funding for Tricare for Life.

6 FY 2003 Boating Safety figure includes $1M as directed by the Maritime Transportation Security Act of 2002, 

P.L. 107-295 Section 342.

(Dollars are in millions)

USCG Funding History
35

FY 2003 Budget Authority: 4,318,4561

Programmatic Reductions 

Termination of One-time Costs - 40,420

Annualization of FY 2003 Management Savings - 8,110

Management and Technology Efficiencies

Scheduled Decommissioning of Two Seagoing Buoy Tenders - 2,099

Transfer of Port Vulnerability Assessments to DHS IA&IP 1 - 11,000

Subtotal Program Reductions -61,629

Built-in Changes 

Mandatory Personnel Entitlements (ACTIVE) 121,793

Mandatory Personnel Entitlements (SELRES) 2,554

Increasing Contract Costs 24,858

Annualizations

Annualization of FY 2003 Part-year Funding 47,718

Annualization of FY 2003 Pay Raise (ACTIVE) 19,767

Annualization of FY 2003 Pay Raise (SELRES) 748

Annualization of FY 2003 National Defense Authorization Act Entitlements (NDAA) 16,000

Selected Reserve Training 24,176

Environmental Compliance

Clean-Up and Restoration 13,841

Compliance and Prevention 800

Mandatory Personnel Entitlements 2,359

Operational Adjustment

Increasing Cost of Readiness Capability Sustainment 18,500

Increasing Operating Fees 5,300

Tricare For Life 4,968

Subtotal Built-in Changes 303,382

1 Department of Homeland Security Information Analysis and Infrastructure Protection 
36

Budget in Brief—Continued

Operate New Facilities

Shore Facility Construction Follow-on 1,682

Commission and Operate Two Seagoing Buoy Tenders 7,313

Commission and Operate Four Coastal Patrol Boats 5,716

Great Lakes Icebreaker Follow-on 989

47-Foot Motor Life Boat (MLB) Follow-on 2,957

C-130J Follow-on 6,673

Ports and Waterways Safety Systems Follow-on 1,715

GMDSS Alert Processing System Follow-on 69

Defense Message System Follow-on 590

Rescue 21 (National Distress & Response System Follow-on) 12,659

Information Technology Projects Follow-on 4,399

Subtotal Operate New Facilities 44,762

New/Enhanced/Restoration Initiatives

Maritime Domain Awareness

Intelligence Program 12,230

Information Sharing & Systems 21,309

Homeland Security Operations 108,675

Maritime Search and Rescue/Personnel Safety 26,301

Subtotal New Initiatives 168,515

Total FY 2004 Changes 455,030

Operating Expenses — Total Budget Authority 4,729,000

Total FY 2004 Request 4,837,008

Operating Expenses – Historical Funding Profile

1998 1999 2000 2001 2002 2003 2004

$2,714.9 $3,044.9 $2,779.0 $3,595.2 $3,857.0 $4,402.9 $4,837.0

FY 2002 - FY 2004 figures include OE, EC&R and RT.
37

Capital Acquisitions

This appropriation includes funding

previously requested in the Coast Guard

Acquisition, Construction, and

Improvements and Research,

Development, Test, and Evaluation and 

the Alteration of Bridges appropriations.

Funding requested in this account will

support the Coast Guard’s continuing plans

for fleet expansion and improvement and

research into improved Coast Guard

technology, systems and methods.

The majority of the funding requested in 

this account provides for the acquisition,

construction, and improvement, of vessels,

aircraft, information management resources,

shore facilities, and aids to navigation

required to execute the Coast Guard’s

missions and achieve its performance goals.

Vessels – In 2004, the Coast Guard will

continue to acquire multi-mission platforms

that use advanced technology to reduce life

cycle operating costs. The Great Lakes

icebreaking replacement project will continue.

Deepwater – The Deepwater capability

replacement project continues with full

scale development. In 2004, the Coast

Guard will continue to acquire and build

the selected integrated deepwater system.

Other Equipment – In 2004, the Coast

Guard will invest in numerous management

information and decision support systems

that will result in increased efficiencies.

Rescue 21 (formerly known as National

Distress and Response System Modernization

Project (NDRSMP)), will continue.

Additional funding requested in this account

supports the Coast Guard’s Research and

Development program, which includes 

the development of techniques, methods,

hardware, and systems which directly

contribute to increasing the productivity and

effectiveness of Coast Guard’s operating

missions. The Coast Guard has focused new

R&D projects on improvements to maritime

homeland security in the port domain while

continuing research in other vital Coast

Guard mission areas, including marine

environmental protection and response, risk

assessment and competency; and human

error reduction and fatigue analysis. No

new funding is requested for alteration of

bridges in 2004.

FY 2004 Request (dollars are in the thousands)

Vessels and Critical Infrastructure Projects

Great Lakes Icebreaker (GLIB) Replacement $ 2,000

41’ Utility Boat and Non-Standard Boats Replacement Project (RB-M) 12,000

Enforce Security Zones — 9 Additional 87’ Coastal Patrol Boats 52,500

Subtotal — Vessels 66,500

Deepwater Project

Integrated Deepwater Systems 500,000

Other Equipment

Defense Messaging System (DMS) Implementation 4,500

Rescue 21 (NDRSMP) 134,000

Subtotal — Other Equipment 138,500

Personnel and Related Support Costs

CA Core 500

Direct Personnel Costs 69,500

Subtotal — Personnel 70,000

Research, Development, Testing and Evaluation 22,000

Total FY 2004 Capital Acquisitions Request 797,000

FY 2002 - FY 2004 figures include AC&I, RDT&E and BRIDGES.

Capital Acquisitions – Historical Funding Profile

1998 1999 2000 2001 2002 2003 2004

$395.9 $624.4 $779.0 $413.8 $737.0 $747.0 $797.0
38

Boating Safety funds provide $59 million for grants to States

and national nonprofit public service organizations to develop

and carry out recreational boating safety programs, and $5

million for Coast Guard coordination of the National

Recreational Boating Safety Program, established by the

Federal Boat Safety Act of 1971, as amended.

This appropriation provides funding to pay retired military

personnel of the Coast Guard, Coast Guard Reserve and

members of the former Lighthouse Service. It also makes

payments to their survivors pursuant to the Retired

Serviceman's Family Protection Plan and the Survivor

Benefits Plan, payments for career status bonuses under the

National Defense Authorization Act for Fiscal year 2000, the

medical care of retirees and dependents — formerly financed

by the Department of Health and Human Services under the

Dependent’s Medical Care Act — has been funded under

this account. 

The Oil Spill Liability Trust Fund provides a source of funds for

removal costs and damages, including assessment of damaged

natural resources, paying claims and for federal expenses

necessary to administer the Fund. In accordance with the

provisions of the Oil Pollution Act of 1990, the fund may

finance annually up to $50 million of emergency resources

and all valid claims from injured parties resulting from oil spills.

The $61.2 million request consists of $50 million for

emergency response costs, $10 million for payment of claims

and $1.2 million for the Oil Spill Recovery Institute.

❶ Boat Safety ❸ Oil Spill Recovery, Coast Guard

❷ Retired Pay

Historical Funding Profile (Dollars in millions)

Funding Profile Boat Safety❶ Retired Oil 

(Dollars in Pay❷ Spill

millions) Recovery❸

Discretionary Mandatory Total

FY98 $35.0 $20.0 $55.0 $653.2 $59.3

FY99 $0 $64 $64 $684.0 $65.8

FY00 $0 $64 $64 $730.3 $61.8

FY01 $0 $64 $64 $778.0 $76.2

FY02 $0 $64 $64 $876.4 $67.8

FY03 $0 $65 $65 $889.0 $61.2

FY04 $0 $64 $64 $1,020.0 $61.2
39

g gyj g

(Dollars in Millions)

OTHER LE

2%

($111.6)

MIGRANT INTERDICTION

4%

($186.2)

ICE OPERATIONS

4%

($169.8)

MARINE

ENVIRONMENTAL

PROTECTION

4%

($202.3)

Ports, Waterways and

Coastal Security

25%

($1,202.0)

MARINE SAFETY

7%

($336.7)

SEARCH AND RESCUE

11%

($528.7)

AIDS TO NAVIGATION

18%

($835.0)

DEFENSE READINESS

2%

($95.6)

DRUG INTERDICTION

11%

($507.7)

LIVING MARINE

RESOURCES

12%

($551.9)

Operating Expenses Budget by 

Major Programs—FY 2004

Note: Graph does not include (RT and EC&R).
40

(Dollar amounts in thousands)

Cash and other monetary assets $ 2,595,798

Investments

Oil Spill Liability Trust Fund $ 1,007,378

Aquatic Resource Trust Fund 0

Gift Fund 1,361

Total Investments 1,008,739

Accounts Receivable:

Oil Spill Liability Trust Fund $ 104,986

All Other 132,894

Total Accounts Receivable 237,880

Other Assets 77,386

Inventory/Operating Materials and Supplies 1,042,378

Plant, Property, and Equipment (PP&E)

Vessels $ 2,131,812

Aircraft 617,663

Buildings and Structures 1,092,471

Land 40,195

Small Boats 198,868

Electronics 53,140

Construction in Progress 586,792

Other Assets 50,640

Total PP&E 4,771,581

Total Assets $ 9,733,762

(Dollar amounts in thousands)

Accounts Payable and Other Liabilities 

(Funded) $ 609,062

Accounts Payable and Other Liabilities 

(Unfunded) 390,033

Federal Employee and Veteran’s Benefits 

Payable (Unfunded) 29,072,483

Environmental and Disposal Liabilities

(Unfunded) 94,146

Total Liabilities $ 30,165,724

Unexpended Appropriations $ 2,163,048

Cumulative Results of Operations 22,595,010

Total Net Position 20,431,962

Total Liabilities and Net Position $ 9,733,762

__________

* Negative figure

Below is a summary statement—comparable to financial reports issued by private and nonprofit sector organizations—to

show the United States Coast Guard’s financial position. 

Balance Sheet

*

*
42

“We are the shield of freedom.”
www.uscg.mil
UN

TI

EDSTATESCOASTGUARD

1790

SEMPER

PARATUS

Commandant

U.S. Coast Guard

Washington, D.C. 20593

The United States Coast Guard

America’s Shield of Freedom

The United States Coast Guard is a multi-mission, 

military, maritime service committed to protecting America.

Every day, teams of highly dedicated men and women use

their training, skills, and intelligence to make a difference

securing our homeland, saving lives, enforcing the law, 

protecting the environment and keeping vigilant watch.

Now, more than ever, the Coast Guard provides opportunities

where people can learn, grow, and serve the American people

protecting the homeland, keeping America safe.