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1 1 (September 29, 2017)

handle is hein.crs/govcivp0001 and id is 1 raw text is: Researh Sevice Waivers of Jones Act Shipping Requirements September 29, 2017 On September 28, the Trump Administration issued a temporary waiver of the Jones Act (§27 of the Merchant Marine Act of 1920) to facilitate response to the severe damage caused by Hurricane Maria in Puerto Rico. In recent weeks, the Administration issued similar waivers affecting Texas and Louisiana, following Hurricane Harvey, and affecting Florida, following Hurricane Irma. This CRS Insight is intended to clarify the process and requirements for obtaining waivers of this law. The Jones Act requires that vessels transporting goods or passengers between U.S. points be built in the United States, at least 75% owned by U.S. citizens, and mostly crewed by U.S. citizens. The U.S. Virgin Islands is exempted from the law (as is American Samoa and the Northern Mariana Islands), while Puerto Rico is exempted for passengers but not for cargo. The Jones Act requirements may constrain the available supply of ships at particular times and places in the United States, which is why the requirements frequently have been waived temporarily in response to major hurricanes. For instance, in response to Hurricane Katrina in September 2005, an 18-day waiver was issued to allow foreign-flag tankers to move petroleum and petroleum products along the Gulf Coast because pipeline facilities in the region were without power. Shortly thereafter, a waiver was granted in response to Hurricane Rita, also for the purpose of moving fuel. In response to Superstorm Sandy in 2012, a waiver lasting about three weeks was granted to move fuel to the Northeast. In July and August 2011, the Jones Act was waived during a crisis in Libya to allow foreign tankers to ship oil from the U.S. Strategic Petroleum Reserve. These and other waivers are noticed in the Federal Register. Temporary Waivers Procedures for obtaining waivers to U.S. navigation and vessel-inspection laws, including the Jones Act, are codified at 46 U.SoC. Section 501, which specifies that a waiver can be granted only if it is deemed necessary in the interest of national defense by the Secretary of Defense or the Secretary of Homeland Security. A waiver issued by the Department of Homeland Security (but not by the Secretary of Defense) requires a finding by the Maritime Administrator in the U.S. Department of Transportation that Jones Act- qualified vessels are not sufficiently available to meet national defense requirements. The waiver process originated in a 1950 law (P.L. 81-891) that made permanent a temporary waiver enacted in 1942 for World War II (P.L. 77-507, §50 1). Since 2009, the waiver process has required that the Maritime Administrator is to be consulted as to the extent, manner, and terms of any non-Department of Defense-requested waiver. In 2012, Congress amended the waiver process by providing the Maritime Congressional Research Service https://crsreports.congress.gov IN10790 GRS }NStGHT Prepard for Members and Cornm ittees o4 Corqq ess ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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