Senate critical of Jones Act waivers

   The U.S. Senate Appropriations Committee has criticized the Department of Homeland Security for its handling of Jones Act waivers in a report accompanying the DHS Appropriations Act (H.R. 2017).
    The Jones Act requires goods moving between U.S. ports be moved on U.S. crewed, flagged and built vessels, but the Senate said, “U.S. vessels, mariners and shipyards have been negatively impacted and underutilized as a result of lax enforcement of prior rulings inconsistent with congressional intent. The committee urges the department to levy penalties for previously documented violations, continue working with the Offshore Marine Service Association in order to investigate future potential violations, and dedicate adequate resources to vigorously enforce the Jones Act on the Outer Continental Shelf.
    “The committee is very concerned that more than 45 waivers of the Jones Act have been issued enabling foreign-flagged vessels to transport oil released from the Strategic Petroleum Reserve in response to extreme fluctuations in the price of gas. The committee is also concerned about the lack of transparency in conducting these waivers,” the committee report said.
    “A general provision is included prohibiting funds from being used to issue future waivers until the Secretary has consulted with the Departments of Energy and Transportation and representatives of the United States flag maritime industry and taken adequate steps to ensure the use of United States flag vessels. The Secretary shall notify the Congress within 48 hours of any request for a waiver,” the Senate instructs.
    The committee recommend the bill as amended be passed.