Stakeholders in offshore wind construction projects, including vessel owners and operators, project developers, and equipment manufacturers, should ensure that their plans for offshore wind development comply with the Jones Act. While most stakeholders already assume in their planning that the Jones Act applies, new pending legislation, if enacted, would confirm that the Jones Act does indeed apply to offshore wind construction.
NEW DEVELOPMENTS
The House of Representatives passed legislation, H.R. 4447, the Expanding Access to Sustainable Energy Act of 2019, on September 24, 2020, which included a provision from Representatives Garamendi and Lowenthal (Amendment 33) to amend the Outer Continental Shelf Lands Act (OCSLA) that would confirm the Jones Act applies to all offshore energy development on the Outer Continental Shelf (OCS), including wind energy. While most projects were planned with Jones Act compliance in mind, this is a welcome development for all stakeholders, as it will bring needed clarity to renewable energy development offshore.
BACKGROUND
The Coastwise Merchandise Statute, commonly known as the Jones Act, has evolved over time. The U.S. cabotage laws date back to the founding of the Republic and were enshrined in their current form in the Merchant Marine Act of 1920. These were originally laws that dealt with transportation issues for domestic voyages. However, as time progressed and production of marine resources became feasible, the U.S. Congress passed OCSLA, which extended federal law to installations on the OCS.
U.S. Customs and Border Protection (CBP) has historically interpreted OCSLA to apply the Jones Act to oil and gas related activities on the OCS. However, there is some ambiguity about whether the Jones Act applies to offshore wind projects. Arguably, under current law, the coastwise laws should not apply to a wind farm project located on the OCS because the resource is the wind above the ocean, not from the seabed itself. While most companies have conservatively assumed that the Jones Act will apply to offshore wind construction, CBP has yet to rule on this issue. In addition, other agencies, such as the U.S. Coast Guard, take the position that OCSLA does not apply to an offshore wind project.
ANALYSIS
Amendment 33 would extend federal law to all installations and other devices permanently or temporarily attached to the seabed [for the purposes of] . producing or supporting the production of energy from sources other than oil and gas. (amendment text in italics). The drafters of this provision have publicly declared that the purpose of this amendment is to extend the Jones Act to offshore renewables. While there have been some articles in the media questioning whether this language is flawed, we believe those articles are in error. The operative language here in the use of the words supporting the production are extremely broad and thus would clearly extend the Jones Act to offshore renewables including the placement of wind structures on the seabed.
As such, we believe CBP would have to conclude, if this language is enacted, that the Jones Act applies to renewable energy projects, such as offshore wind in the same way it applies to oil and gas. This legislation would be a positive development for vessel operators and renewable energy developers because it will bring clarity and ensure a level playing field for all stakeholders.
While enactment of this bill remains possible during the current Congress, there are numerous hurdles to overcome. The House of Representatives passed their version of an energy bill on September 24, 2020. While no action has been taken by the Senate to date on their version of the energy bill, it is possible that the bill, including Amendment 33, would come under consideration during the lame duck session after the November 3, 2020 federal election. Depending on other issues and the results of the election, passage by the Senate during this session could occur. In particular, the chair of the Senate Energy and Natural Resources Committee, Senator Lisa Murkowski (R-AK), has publicly and emphatically stated her commitment to accomplishing an energy bill this year. Nevertheless, even if the Senate passes their version of an energy bill during the lame duck session, the House and the Senate would still have to harmonize the language in their respective bills before Congress could pass it and be signed into law by the president. As of this writing, the Senate bill does not include similar language.
CONCLUSION
Enactment of Amendment 33 would bring welcome certainty to the application of the Jones Act to offshore renewable work. This law would give CBP the needed clarity to adequately rule on offshore wind issues related to Jones Act compliance. In addition, other federal agencies would have to align their positions on offshore wind with the new legislation. Passage of Amendment 33 would assist the burgeoning offshore wind industry, which in its nascent years in the United States has shown tremendous promise for energy production as well as exciting opportunities for domestic and international vessel owners and operators and shipyards.
Read the original post:
New Legislation to Apply the Jones Act to Offshore Renewables - JD Supra
- BASF to Buy Stake in German Offshore Wind Farms From Vattenfall -- Update - MarketWatch - April 22nd, 2024 [April 22nd, 2024]
- Denmark Launches Massive Offshore Wind Auction | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- rsted and OEG Renewables Form Offshore Wind Pact in US | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- Vestas and Maersk team up for South Korean offshore wind - Recharge - April 22nd, 2024 [April 22nd, 2024]
- Denmark's offshore wind parks currently generate 2.7 gigawatts of electricity - The Mountaineer - April 22nd, 2024 [April 22nd, 2024]
- rsted Buys Sunrise Wind Stake from Eversource - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- 'More non-turbine challenges' | GE hits back in New York round 3 offshore wind demise - Recharge - April 22nd, 2024 [April 22nd, 2024]
- 'Heart-breaking': Refugees once detained offshore by Australia warn the UK government not to push through its ... - The Albany Herald - April 22nd, 2024 [April 22nd, 2024]
- Hearing scheduled this week on bill to advance offshore wind - delawarebusinessnow.com - April 22nd, 2024 [April 22nd, 2024]
- Aker BP begins production from Hanz field offshore Norway - Offshore Technology - April 22nd, 2024 [April 22nd, 2024]
- Denmark launches its biggest offshore wind farm tender - The Caledonian-Record - April 22nd, 2024 [April 22nd, 2024]
- Vestas and Maersk to Build Offshore Wind Hub in South Korea | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- U.S. Navy To Convert Oil Rigs Into Offshore Military Bases To Counter China In The Pacific - Marine Insight - April 22nd, 2024 [April 22nd, 2024]
- BASF seals deal to buy into gigascale Vattenfall offshore wind to power chemicals complex - Recharge - April 22nd, 2024 [April 22nd, 2024]
- First Moray West 14.7MW Offshore Wind Turbine Comes Up - Offshore Engineer - April 22nd, 2024 [April 22nd, 2024]
- NYSERDA concludes New York's third offshore wind solicitation without final awards - 4C Offshore - April 22nd, 2024 [April 22nd, 2024]
- Galp Energia says Namibia offshore field could contain 10B barrels of oil - Seeking Alpha - April 22nd, 2024 [April 22nd, 2024]
- Framework Agreement signed with rsted in the US - 4C Offshore - April 22nd, 2024 [April 22nd, 2024]
- A submerged concern: offshore wind cables - Martha's Vineyard Times - April 22nd, 2024 [April 22nd, 2024]
- Possible human smuggling operation thwarted offshore in South Florida - cw34.com - April 22nd, 2024 [April 22nd, 2024]
- Maersk sets sights on offshore wind logistics in South Korea - Splash247 - Splash 247 - April 22nd, 2024 [April 22nd, 2024]
- Brigantine, Ventnor respond to offshore wind suit dismissal - Press of Atlantic City - April 22nd, 2024 [April 22nd, 2024]
- Denmark launches 6GW offshore wind tender with an eye on production of green hydrogen and e-fuels - Hydrogen Insight - April 22nd, 2024 [April 22nd, 2024]
- Trump says he hates wind power at fundraiser with oil executives - The Washington Post - April 22nd, 2024 [April 22nd, 2024]
- Humboldt County Officials Headed to Massachusetts Next Week to Check Out Vineyard Offshore's Wind Farm - Lost Coast Outpost - April 22nd, 2024 [April 22nd, 2024]
- 3 More Offshore Wind Projects Bite the Dust - Heatmap - April 22nd, 2024 [April 22nd, 2024]
- Europe's First Commercial-Scale Floating Offshore Wind Farm Secures All Planning Approvals | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- OEG Renewables lands US offshore wind contract with rsted - Energy Voice - April 22nd, 2024 [April 22nd, 2024]
- Vattenfall and BASF sign purchase agreement for 49 percent of Germany's Nordlicht offshore wind farms - Vattenfall - April 22nd, 2024 [April 22nd, 2024]
- House Republicans ask Gov. Moore to veto offshore wind financing bill - Ocean City Today - April 22nd, 2024 [April 22nd, 2024]
- Enterprise Products Partners Granted MARAD Port License For Biggest Offshore Oil Export Terminal In U.S. - Marine Insight - April 10th, 2024 [April 10th, 2024]
- RWE Wants to Expand Supply of Fiber Cables for Floating Offshore Wind - The Maritime Executive - April 10th, 2024 [April 10th, 2024]
- US unveils next steps in its 20242029 Gulf of Mexico oil & gas leasing program - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- Romania adopts offshore wind energy law to get first megawatts by 2032 - Balkan Green Energy News - April 10th, 2024 [April 10th, 2024]
- Baltic Sea nations turn to Nato and EU to protect offshore infrastructure from Russian threats - Recharge - April 10th, 2024 [April 10th, 2024]
- Canadian Pension Fund to Consolidate Its Offshore Wind Holdings into UK-Based Reventus Power | Offshore Wind - Offshore WIND - April 10th, 2024 [April 10th, 2024]
- Australia urged to ensure its gas strategy features LNG opportunities - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- Taiwan's offshore wind power moves forward. - 4C Offshore - April 10th, 2024 [April 10th, 2024]
- Siem Offshore lines up multi-year gig for 2016-built oil spill response vessel in Brazilian waters - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- Poland's Largest Offshore Wind Project Readies for 2025 Auction | Offshore Wind - Offshore WIND - April 10th, 2024 [April 10th, 2024]
- New assignment for Wood in Trinidad and Tobago - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- SalMar 'won't build offshore farms in Norway without ground rent tax' - FishFarmingExpert - April 10th, 2024 [April 10th, 2024]
- SLO County fishermen sue Coastal Commission, offshore wind companies. Weve got rights here - San Luis Obispo Tribune - April 10th, 2024 [April 10th, 2024]
- New floating offshore wind partnership committed to Celtic Sea - 4C Offshore - April 10th, 2024 [April 10th, 2024]
- Norwind Offshore's CSOV to Feature Seaonics Fully-Electric Crane - Offshore WIND - April 10th, 2024 [April 10th, 2024]
- Eversource's Offshore Wind Lessons Have Created A Buying Opportunity (NYSE:ES) - Seeking Alpha - April 10th, 2024 [April 10th, 2024]
- FERC approves collaboration between PJM, New Jersey to boost offshore wind - Daily Energy Insider - April 10th, 2024 [April 10th, 2024]
- April 10 Golden Knights vs Oilers NHL Offshore Betting Odds, Preview - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- Arsenal vs Aston Villa EPL Offshore Odds, Preview, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- O&Gs emissions reduction roadmap and the importance of refinery efficiency - Offshore Technology - April 10th, 2024 [April 10th, 2024]
- West Ham vs Fulham EPL Offshore Odds, Preview, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- Liverpool vs Crystal Palace EPL Offshore Odds, Preview, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- April 10 Astros vs Royals MLB Offshore Betting Odds, Preview - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- RS helps propel offshore wind farm initiative in education sector - The Manufacturer - April 10th, 2024 [April 10th, 2024]
- Bournemouth vs Man United EPL Offshore Odds, Preview, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- Grand National Offshore Odds, Preview, and Prediction (2024) - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- Tyra, a State-of-the-Art Offshore Gas Hub in the North Sea - Total - April 10th, 2024 [April 10th, 2024]
- 50Hertz to start onshore works for Windanker offshore wind farm - Power Technology - April 10th, 2024 [April 10th, 2024]
- Fund manager Pelagic teams up with Borealis Maritime to expand offshore fleet - TradeWinds - April 10th, 2024 [April 10th, 2024]
- Another LNG carrier gets Silverstream's air lubrication tech at Seatrium - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- VIDEO: EPS splashes USCG's first Heritage-class offshore patrol cutter - Naval Today - November 2nd, 2023 [November 2nd, 2023]
- N.J.s election focusing on abortion and offshore wind - WHYY - November 2nd, 2023 [November 2nd, 2023]
- Business Network for Offshore Wind changes name to Oceantic ... - WorkBoat - November 2nd, 2023 [November 2nd, 2023]
- Geotechnical Surveys Completed at Scottish 3.6 GW Floating ... - Offshore WIND - November 2nd, 2023 [November 2nd, 2023]
- Fitch downgrades Eversource outlook to 'negative' on uncertainty ... - Utility Dive - November 2nd, 2023 [November 2nd, 2023]
- Kongsberg & Solstad Offshore to Collaborate on Decarbonisation ... - The Maritime Executive - November 2nd, 2023 [November 2nd, 2023]
- Second BOEM in-person hearing on offshore wind generates ... - Ocean City Today - November 2nd, 2023 [November 2nd, 2023]
- NOV Earnings: Offshore Remains Central Performance Driver as ... - Morningstar - November 2nd, 2023 [November 2nd, 2023]
- Murphy eyes first oil in 2026 from offshore project in Southeast Asia - Offshore Energy - November 2nd, 2023 [November 2nd, 2023]
- CorPower Ocean's wave energy device weathers through two major ... - Offshore Energy - November 2nd, 2023 [November 2nd, 2023]
- Somerset offshore wind plant clears major hurdle - CommonWealth magazine - November 2nd, 2023 [November 2nd, 2023]
- In a 'world first,' autonomous giant drones are flying cargo to offshore ... - Electrek - November 2nd, 2023 [November 2nd, 2023]
- Port of VA Receives First Massive Offshore Wind Components - Chesapeake Bay Magazine - November 2nd, 2023 [November 2nd, 2023]
- HBA Future Energy to Build 532 MW Anma Offshore Substation - Offshore WIND - November 2nd, 2023 [November 2nd, 2023]
- PGE, rsted Gather Tier 1 Offshore Contractors for 1.5 GW Baltica 2 - Offshore WIND - November 2nd, 2023 [November 2nd, 2023]
- Philippine police unearth 'torture chamber' in sex den licensed as ... - The Straits Times - November 2nd, 2023 [November 2nd, 2023]
- CIP & Co Release Findings of Taranaki Offshore Wind Capability ... - Offshore WIND - November 2nd, 2023 [November 2nd, 2023]
- UK offshore wind stands up to Storm Ciaran - reNEWS - November 2nd, 2023 [November 2nd, 2023]
- Hatteras Offshore Open kicks off billfish series - The Coastland ... - The Coastland Times - May 18th, 2023 [May 18th, 2023]
- Anna Paulina Luna to feds: Study dangers of offshore wind turbines - Tampa Bay Times - May 18th, 2023 [May 18th, 2023]