Lobbying Over Jones Act Waiver Heats Up As Renewal Approaches
"Allowing the waiver to expire is essential to avoid unintended consequences that constrain investment in the recapitalization of the American maritime industry and the growth of the American maritime workforce," said the American Maritime Partnership's Jennifer Carpenter in a statement on Tuesday. "More than 28 percent of reported waiver voyages were on vessels or companies directly tied to China, including COSCO vessels linked to alleged intelligence-gathering activity. Foreign vessels gained access to sensitive U.S. waterways and critical American cargo, while foreign companies profited and Americans saw no benefit at the pump."
On the other side of the question, the American Petroleum Institute (API), the voice of oil and gas in Washington, has "applauded" the long waiver period. Its policy platform calls for easing the emergency-waiver process and creating legal "triggers" that would turn on a new waiver whenever there are "prolonged regional fuel supply shortages, significant inventory drawdowns, refinery outages, transportation disruptions, or sustained price spikes."
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Policy decisions about the Jones Act - and the power for detailed scrutiny of its implementation - also lie with Congress. After the current session of Congress ends in December, the Democratic Party will assume control of the House and Senate. One of the most active voices in questioning the wisdom of the waiver, Rep. Salud Carbajal (D-WA), is set to inherit the chairmanship of the Subcommittee on Coast Guard and Maritime Transportation in January. As chairman, Carbajal will have the power to set the subcommittee's agenda.
Carbajal's recent advocacy could provide a preview of the line of questioning the subcommittee might pursue next year. His staff began reaching out to foreign owners and operators in June, asking for details on how they were using the waiver process. In mid-October, Carbajal wrote to the Department of Homeland Security to ask about the non-disclosure of at least 25 waivered voyages, raising questions about "whether DHS and its component agencies are adequately enforcing federal law with respect to foreign vessels operating in U.S. domestic commerce." He has also raised questions about whether waivered-voyage operators have fully complied with U.S. tax law and immigration regulations.
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