Congressional Proposal to Limit Jones Act Waivers

The Jones Act, which restricts the transportation in U.S. commerce to qualified U.S.-flag vessels, can be waived "in the interest of national defense" and, when not requested by the Secretary of Defense, where the U.S. Maritime Administration confirms the non-availability of qualified U.S.-flag vessels. Numerous Jones Act waivers were granted in connection with the Strategic Petroleum Reserve sale in June which generated a negative reaction from, among others, the Senate Appropriations Subcommittee on Homeland Security. On October 14, a bill was introduced in the U.S. House of Representatives (H.R. 3202) sponsored by Rep. Elijah Cummings of Maryland and nine of his colleagues also to require MARAD to "identify any actions that could be taken to enable qualified United States flag capacity to meet national defense requirements" and to require the Secretary of Transportation to provide reports to Congress of Jones Act waivers. These proposed changes are apparently in response to the issue that arose in the SPR sale where the lot sizes established in the sale solicitation exceeded the capacity of available U.S.-flag tonnage.