Bush issues temporary Jones Act waiver to transport gasoline

Bush issues temporary Jones Act waiver to transport gasoline    President Bush said he will allow foreign-flag tankers to operate in domestic waters to assist with gasoline distribution to the U.S. East Coast in the aftermath of Hurricane Katrina in the Gulf.
   The 1920 Merchant Marine Act, better known as the Jones Act, restricts domestic waterborne trades to U.S.-flag vessels.
   In a Thursday afternoon press conference, Bush said he has instructed Homeland Security Secretary Michael Chertoff to “temporarily waive this requirement, so foreign ships can also help distribute oil and gasoline to where it’s needed.
   “Today’s action will further help us move gasoline to accommodate the demands of the American citizens,” he added.
   Waivers to the Jones Act are rarely granted. The National Industrial Transportation League asked the federal government for a 90-day Jones Act waiver in late October 2002 to help alleviate the enormous backlog of cargo in West Coast ports resulting from a 10-day port labor lockout. The waiver request was denied.
   The Bush administration remains optimistic that the national distribution of gasoline through the Gulf pipelines will get back to normal soon.
   “Right now, the Colonial Pipeline, which is a major pipeline serving the East Coast, is back in operation, but only at 50 percent capacity,” Bush said. “We anticipate that as the days go by, more and more of that capacity will be restored. Other major pipelines are coming back online. But as I said, we’re going to have a temporary disruption of gasoline product.”