Page 37: of Marine News Magazine (November 2023)

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Feature

Shipyards

By Tom Ewing hen asked about the top issues facing if operating policies are murky.

shipbuilders, executives at the Ship- As an example, Paxton and Zorensky cited a CBP ruling builders Council of America (SCA) linked to the installation of wind tower monopiles (steel

W listed a number of topics and concerns. tubes driven into the seabed, forming a foundation for ad-

SCA is the only national trade association representing ditional construction). In July, CBP was asked whether it

U.S. shipyards engaged in the building and repairing of was a Jones Act violation if a non-coastwise-quali? ed in- military and other government and commercial vessels, stallation vessel worked, unanchored, to install monopiles and companies providing goods and services to the ship- at a pristine seabed site in U.S. waters.

building industry. In August, CBP replied: No - “The transportation of monopile foundations from a U.S. coastwise point to a pristine seabed site on the OCS by a non-coastwise-quali-

Shutdowns have consequences

Matthew Paxton and Paula Zorensky are, respectively, ? ed vessel would not violate the Jones Act.”

That was challenged, not just by SCA but by a broader

SCA President and Vice President. Their top federal concern coalition, the American Maritime Partnership (AMP). Con- at the end of September? A U.S. government shutdown.

Paxton and Zorensky said that even a brief shutdown sequently, in September, in a letter to Jennifer Carpenter, would impact budgets, safety, agency oversight and, of President & CEO of the American Waterways Operators course, construction schedules. And the longer it lasted, (AWO) and a member of AMP’s Board of Directors, CBP the worse it gets. “We want to get into the next ? scal year,” wrote that, upon review, it “modi? ed” its ruling. AMP had

Paxton commented, “to retain the strong momentum that raised an issue that wasn’t addressed by CBP, i.e., whether it was a Jones Act violation if (1) a vessel anchored itself underlies vessel construction programs.”

Fortunately, events moved in the right direction when, to the pristine seabed because of severe, inclement weather at the last minute on September 30, Congress passed HB and (2) the anchored vessel engaged in work at that point.

CBP’s September letter revised its earlier conclusion 5860, a continuing resolution (CR) to extend current

FY23 funding. But this just kicked the can down the road (or “holding,” to use CBP’s parlance). In the AMP letter since the CR only provides funding through November CBP writes: “Anchoring of the installation vessel to the seabed to aid 17, when hopefully a ? nal budget bill will be approved. If its installation activity, even if due to inclement weather, not, it’s déjà vu all over again. would result in a violation of the Jones Act. Here, the (The federal ? scal year runs from October 1 to Septem- installation vessel would be attached to the OCS via the ber 30. Last minute budget dramas can make it easy to anchor for the purposes of exploring for, developing, or forget that the process starts on the ? rst Monday in Febru- producing resources, including non-mineral energy re- ary. By November 17 it will be just a little over two months sources. Therefore, such anchoring would establish the in- before Congress starts work on FY25 spending.) stallation vessel as a coastwise point while the attachment exists and result in a violation of the Jones Act once the

The Jones Act and clarity monopiles are unladen at the vessel.”

For SCA members, Jones Act rulings form another set of

CBP writes that “upon review, we have modi? ed HQ top issues. Clear policies are critical, particularly decisions from Customs and Border Protection (CBP). Offshore H328718 (the document reference number) in part to wind projects will require hundreds of new American built clarify its holdings.” That’s a change just within two vessels but multimillion dollar investments won’t happen months, a policy vacillation with real impacts on markets www.marinelink.com MN 37|