MaritimeFedWatch

U.S. Customs and Border Protection confirmed on August 21, 2024 its Jones Act interpretations relating to the installation of foundations for an offshore wind project which it issued last year. 

The U.S. Congress has been actively considering legislation since 2022 that would restrict the use of foreign vessels in U.S. offshore projects. Both oil and gas and renewable energy projects would be affected. The latest version of that legislation was introduced on October 5, 2023, by Senator Bill Cassidy (R-LA) entitled the “American Worker Fairness Act.”

U.S. Customs and Border Protection modified earlier Jones Act guidance on the installation of foundations for offshore wind turbines on September 14. The “Jones Act” is a popular term for several laws which reserve U.S. domestic maritime trade to U.S.-flag vessels which must be built in the United States and be owned and operated by qualified U.S. citizens.

U.S. Customs and Border Protection in a September 2, 2022 ruling narrowed the scope of what a foreign cable lay vessel can lawfully do on U.S. offshore wind projects. CBP partially altered its views on October 28 with regard to the transportation of cable remaining after a cable lay operation is complete.

U.S. Customs and Border Protection clarified further the permissible foreign vessel scope of work for offshore wind cable installation in rulings issued on June 30, 2022 and September 2, 2022. In two instances – installation of cable protection and transportation of excess cable – CBP has narrowed permissive prior rulings.

On July 27 Senator Joe Manchin (D-WV) and Senate Majority Leader Chuck Schumer (D-NY) announced wide-ranging legislation entitled the “Inflation Reduction Act of 2022” that would make substantial changes to U.S. federal tax policy. Included in the proposed legislation are historic renewable energy tax incentives including an incentive to manufacture “wind energy components” in the United States such as “related offshore wind vessels.”

The Biden Administration announced today a new federal-state offshore wind partnership to spur the installation of electricity generating wind turbines off the U.S. coast.

U.S. Customs and Border Protection just made public two rulings dated May 11 and June 6 which further fill in the picture of what foreign vessels can lawfully do in the U.S. offshore wind industry.

U.S. Customs and Border Protection just made public two rulings it issued on March 25, 2022 regarding the laying and burial by a foreign vessel of electrical cable for U.S. offshore wind power generation projects. The rulings amplify earlier guidance on what is permissible under current U.S. law.

On April 21, 2022, U.S. Customs and Border Protection posted on its public website a ruling dated April 14 which addresses in one ruling many of the Jones Act issues which arise from the installation of offshore wind turbines off the coasts of the United States.

On January 7, 2022, Customs and Border Protection sent letters to three trade associations declining to revisit its March 25, 2021, Jones Act ruling on the definition of a “point in the United States” for purposes of installing scour protection or foundations for an offshore wind farm.  The letters were made available on February 9, 2022, in response to a Freedom of Information Act request.  As a result, CBP’s March 25, 2021 ruling remains the best available guidance on what a foreign-flag vessel can lawfully do with respect to the installation of foundations or scour protection on the U.S. outer continental shelf in compliance with the Jones Act.

On January 12, 2022, the U.S. Bureau of Ocean Energy Management announced plans to auction on February 23 almost 500,000 acres off the coast of New York and New Jersey (known as the New York Bight) for offshore renewable energy development. 

On November 15, 2021, the Offshore Marine Service Association (OMSA) made public allegations that a foreign vessel had violated U.S. coastwise law (popularly referred to as the “Jones Act”) and offshore manning laws (and also safety and pollution laws) in the conduct of offshore wind-related survey work.

On November 9, 2021, U.S. Customs and Border Protection made public a ruling dated November 2 regarding the laying and burial by a foreign vessel of fiber optic cable in U.S. waters and the transportation of technicians by that vessel.

On October 22 the U.S. Coast Guard National Vessel Documentation Center posted on its website an October 20, 2021 ruling regarding the U.S. construction of crew transfer vessels or CTVs.

U.S. Customs and Border Protection or CBP issued its first Jones Act ruling relating to a floating offshore wind project on July 6, 2021, which it made publicly available on August 23, 2021.

On May 25, the Biden administration announced an effort with the State of California to advance certain areas of California’s northern and central coastal waters for offshore wind farms opening up the Pacific Coast to its first commercial scale offshore clean energy projects.

On March 29, 2021, the Biden Administration announced a series of “whole of government” initiatives to boost the U.S. offshore wind industry. Numerous commercial scale projects are currently at various points in the permitting process for installation in the U.S. northeast.

On February 4, 2021, Customs and Border Protection issued significant guidance regarding the operations of foreign offshore wind installation vessels in U.S. waters. The ruling was made public on February 19.

On December 8, 2020, the U.S. Government Accountability Office, an independent research arm of the U.S. Congress, issued a report on vessels needed for U.S. offshore wind projects. The report entitled – Offshore Wind Energy – Planned Projects May Lead to Construction of New Vessels in the U.S., but Industry Has Made Few Decisions amid Uncertainties – captures the amorphous nature of the task GAO was given.