Image: Architect of the Capitol
Congressman John Garamendi (D-Calif.) has launched the “Close Agency Loopholes to the Jones Act” invoice that might shut the loopholes within the Jones Act created by “letter rulings” from U.S. Customs and Border Protection. Specifically, says Garamendi, these loopholes permit federal regulators to avoid the Jones Act.
Garamendi is chairman of the House Armed Services Subcommittee on Readiness and a senior member of the Transportation and Infrastructure Committee. He served as the highest Democrat on the Subcommittee on Coast Guard and Maritime Transportation from 2013 to 2018.
“For nearly 50 years, Congress has stood on the sidelines while federal regulators made bad decisions that erode crucial protections for the American worker,” mentioned Garamendi. “The U.S. government should do everything in its power to prevent foreign vessels from paying poverty wages to take jobs from Americans working in our maritime industry. Sadly, it has largely enabled it instead.”
“My ‘Closing Agency Loopholes to the Jones Act’ would finally force federal regulators to enforce the law as Congress intended when it created the Jones Act in 1920,” Garamendi continued.
“In January 2021, President Biden’s first executive order after assuming office directed federal agencies to maximize the use of American mariners, American-built ships, and U.S.-flagged vessels under the Jones Act. Less than 90 days later, Customs and Border Protection issued a letter ruling contradicting the President’s policy to allow foreign vessels to construct energy projects on the Outer Continental Shelf. My bill will force the bureaucrats at CPB to implement the President’s policy by fully enforcing the Jones Act,” concluded Garamendi.
The “Close Agency Loopholes to the Jones Act” would:
- Close the “oceanographic research vessel” loophole, thereby stopping business vessels partaking in seismic-blasting and comparable pre-construction actions for offshore vitality growth within the United States’ Exclusive Economic Zone at sea from skirting the Jones Act.
- Close the “vessel equipment,” “lifting operations,” and “installation vessel” loopholes, thereby stopping vessels with cranes and comparable gear from shifting constructing supplies into place to assemble offshore vitality growth within the United States’ Exclusive Economic Zone at sea from skirting the Jones Act.
- Close the “paid out, not unladen” loophole, thereby stopping vessels transporting and putting in undersea cable between the mainland United States and stuck factors like offshore platforms on the Outer Continental Shelf from skirting the Jones Act.
- Close the “decommissioning” loophole, thereby stopping vessels decommissioning offshore platforms on the Outer Continental Shelf from skirting the Jones Act.
- Close the “seabed sample” loophole, thereby stopping business vessels taking samples from the seafloor on the Outer Continental Shelf for offshore vitality growth from skirting the Jones Act.
- Close the “pristine seabed” loophole, thereby stopping business vessels that artificially place rocks or different aggregates by vessel—generally known as “scour protection material”—on the seafloor of the Outer Continental Shelf for offshore vitality growth from skirting the Jones Act.
- Allow Jones Act operators to attraction selections—generally known as “letter rulings”—by U.S. Customs and Border Protection that undermine the Jones Act.
- Subjects Customs and Border Protection’s enforcement of the Jones Act to the Congressional Review Act, which applies to almost all different main nationwide coverage and regulatory selections at federal companies.
- Requires foreign-flagged vessels working on the outer Continental Shelf purporting to function below a Jones Act exemption to publicly notify Customs and Border Protection’s citing the particular purported exemption and its authorized foundation.
- Authorizes Customs and Border Protection to penalize foreign-flagged vessels working on the Outer Continental Shelf below a purported Jones Act exemption for failing to inform the federal company.
APPLAUSE FROM OMSA
Congressman Garamendi’s invoice drew applause from the Offshore Marine Service Association (OMSA)
“For nearly 50 years, incorrect interpretations have created harmful and dishonest loopholes that force U.S. mariners and vessels to compete against foreign counterparts that have lesser crewing, tax, regulatory compliance, and insurance costs,” mentioned Aaron Smith, President of the Offshore Marine Service Association. “This comprehensive bill would permanently eliminate these loopholes and uphold the true intentions of the Jones Act.”
OMSA notes that the newly launched laws would additionally enhance transparency surrounding how the U.S. Customs and Border Protection (CBP) administers the Jones Act, partly by permitting U.S. vessel operators the chance to attraction CBP rulings—a possibility at present solely afforded to international vessel house owners. Additionally, the laws would require CBP to reveal Jones Act investigations and penalties and require international vessels allegedly working below Jones Act exemptions to obviously talk their purported {qualifications} for overview.
“Big Oil, and increasingly Big Wind, have actively called for and exploited these loopholes to utilize cheap foreign labor at the expense of hardworking, capable Americans. The result has been less opportunity for skilled American mariners and shipyard workers and greater profit margins for foreign companies and foreign investors,” continued Smith.
In addition to offering transparency into the penalty course of, the Close Agency Loopholes to the Jones Act requires CBP to concern statutory penalties for Jones Act violations. The Jones Act clearly specifies a penalty for breaking the legislation: the price of the merchandise in query or the price of the transportation, whichever is greater.
Time and once more CBP has did not observe this statute, as a substitute mitigating as much as 90% of fines for international vessels, enabling them to proceed to work U.S. jobs in American waters, notes OMSA.
“How CBP currently administers the Jones Act is dangerous and wrong,” added Smith. “We applaud Congressman Garamendi for taking steps to reverse these wrongs and hope his Congressional colleagues will join him in standing up for what is right.”
- The full textual content of the laws is available here.
