Page 20: of Marine News Magazine (February 2018)

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COLUMN LEGAL

The Jones Act and U.S. Offshore Wind Power:

The Implications of the Jones Act on the Development, Operation and Maintenance of Offshore Wind Farms in the United States.

By John F. Imhof Jr.

After years of planning and some un- by land and water, between points in the United States to successful attempts, offshore wind power which the coastwise laws apply, either directly or via a for- developers ? nally have their ? rst success eign port, unless the vessel is wholly owned by citizens of in the United States. The Block Island the United States and has been issued a certi? cate of docu-

Wind Farm, a thirty-megawatt wind mentation with a coastwise endorsement by the United farm located just off the coast of Rhode States Coast Guard (the “USCG”) or is exempt but would

Island, began operations in December otherwise qualify for such a certi? cate and endorsement. 2016, ful? lling the goal of the project’s A coastwise endorsement may only be issued to a United developer, Deepwater Wind LLC, to States ? agged vessel that, with limited exceptions, was

Imhof build America’s ? rst offshore wind farm. built in the United States. The Passenger Vessel Services

The Block Island Wind Farm consists of Act similarly restricts the transportation of passengers be- only ? ve wind turbines and is tiny in comparison to the large tween points or places in the United States to vessels built offshore wind farms operating off the coasts of Europe, but in and owned by citizens of the United States.

Deepwater Wind is planning larger wind farms off the coasts The penalties for violating the Jones Act can be severe, of New York, Massachusetts, Rhode Island, Maryland and including forfeiture of the merchandise transported or a

New Jersey. Other developers are doing the same with other monetary amount equal to the greater of the value of that projects up and down the East Coast of the United States. merchandise or the cost of the transportation. The pen- alty for violating the Passenger Vessel Services Act is a ? ne

T J A P V S A of $300 per passenger transported and landed. The laws

HE ONES CT AND THE ASSENGER ESSEL ERVICES CT

Affecting how these wind farms are being planned and are otherwise similar enough that, for the purposes of the built is a little-known but controversial law: The Jones remainder of this article, they are collectively referred to

Act, originally enacted as part of the Merchant Marine Act as the Jones Act. United States Customs and Border Pro- of 1920, regulates the carriage of merchandise between tection (“USCBP”) enforces the Jones Act, but relies on points in the United States, commonly called “coastwise the USCG to determine vessel eligibility for United States trade,” and generally requires that a vessel may not provide coastwise trade, including whether vessels are built in and any part of the transportation of merchandise by water, or owned by citizens of the United States.

For the lifetime of the Block Island project, Atlantic Wind Transfers, using the Jones Act compliant and Blount-built

Atlantic Pioneer, will provide crew and equipment transfer services to meet these key logistical requirements.

Credit: Blount Boats

February 2018

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