OMSA hails USCG release of a roadmap for Jones Act vessels to aid in disaster recovery

OMSA President Aaron Smith:”Unlike the unlawful, unhelpful, and unnecessary Jones Act waiver issued by the Biden Administration to BP, the USCG policy letter is a great example of a lawful and truly helpful step that the government can take to help disaster victims.”

The Offshore Marine Service Association (OMSA) has praised the U.S. Coast Guard (USCG) for issuing a policy letter(CG-CVC Policy Letter 22-03) that, it says, “provides a transparent and expedited process for domestic offshore energy vessels to participate in disaster recovery activities … thereby increasing our domestic response capabilities.”

OMSA notes that the offshore energy industry utilizes highly complex vessels that have attributes that make them attractive candidates for disaster recovering missions. For example, offshore supply vessels (OSVs) have large internal tanks to carry potable water or fuel, and large decks to carry vehicles, containers, or fuel tanks, and the size of these vessels makes them useful in getting into small, unimproved, or damaged ports. However, under current law and regulations, the USCG has numerous and very prescriptive requirements for numerous different types of vessels and what activities these vessels may engage in. Together, these points mean that there are often times when offshore energy vessels could safely engage in disaster recovery operations, but a strict reading of the regulations prevents them from doing so.

The policy letter provides guidelines for when and under what circumstances and conditions the USCG will consider equivalencies and exemptions so that domestic offshore energy vessels can participate in disaster recovery operations and provides a pathway that vessel owners should utilize to request such equivalencies and exemptions.

OMSA Director of Regulatory Affairs, Michael Heier said, “this is a great example of our partners in the U.S. Coast Guard working with industry to provide common-sense solutions so that American mariners can be utilized to help their fellow citizens.”

The policy letter represents another chapter of OMSA and the USCG working together to provide U.S. vessel responses to natural disasters. In the aftermath of Hurricane Maria, several Louisiana-based energy vessels attempted to carry cargo to Puerto Rico or between ports within Puerto Rico. While these vessels were capable of safely completing these tasks, many were turned back due to strict or differing interpretations of USCG regulations.

To prevent this situation in the future, OMSA proposed that the USCG utilize its industry advisory committee, the National Offshore Safety Advisory Committee (NOSAC) to study how offshore energy vessels could be safely utilized to provide disaster assistance. NOSAC accepted OMSA’s proposals and in 2019 NOSAC produced a report entitled, “Use of Offshore Supply Vessels (OSVs) and other vessels in restoration and recovery efforts” written by NOSAC Members Chad Fuhrmann and Terry Bono.

The NOSAC report recommendations included that:

• The USCG apply the District 8 (the USCG District covering the Gulf of Mexico) Policy Letter 09-2001 nationwide. This policy letter provides a pathway for offshore energy vessels to participate in other industries by spelling out reasonable design, mission, and capability requirements on such vessels.

• The USCG create and publish explicit instructions outlining how vessel operators may become a pre- approved disaster response resource.

• The USCG redefine the phrase “international voyage” to clarify that a U.S. vessel is not on an international voyage when it sails from the U.S. mainland to Puerto Rico.

All of these components were incorporated into the most recent policy letter.

UNNECESSARY JONES ACT WAIVER

OMSA President Aaron Smith said that “unlike the unlawful, unhelpful, and unnecessary Jones Act waiver issued by the Biden Administration to BP, the USCG policy letter is a great example of a lawful and truly helpful step that the government can take to help disaster victims. Furthermore, it is an example of a step that honors American mariners and shipyard workers as well as the companies that have invested in U.S. vessels.”

OMSA had previously opposed the recent Jones Act waiver that was provided to BP to utilize a foreign-built and foreign-crewed vessel to move 300,000 barrels of diesel from Houston to San Juan, Puerto Rico. OMSA opposed the waiver because there were U.S.-built and crewed vessels available—even ones under charter to BP—and multiple Federal and Commonwealth agencies had stated there was not and is not a shortage of diesel on Puerto Rico. The waiver, says OMSA, set a dangerous precedent that negates the underlying principles of national and homeland security realized through the Jones Act.

While a Jones Act waiver to allow a foreign-flagged tanker to move diesel from Houston to Puerto Rico was not a helpful action, ensuring that OSVs are given permission to promptly provide the ability to move fuel around Puerto Rico has proven to be helpful.

“Much like we have seen in their opposition to the American Offshore Worker’s Fairness Act, oil majors will say and do anything to avoid using U.S. vessels and crews if it means they can make a buck,” said Smith. “Instead of enabling their exploitation of the American public, I hope the Administration will take more actually helpful actions, like the recently issued policy letter, and fewer actions which don’t help those in need while simultaneously harming American mariners.”