Obama Administration Pressured on Jones Act Waivers

In connection with the Department of Energy sale of 30 million barrels of oil from the Strategic Petroleum Reserve (SPR) in the June 2011, the Department of Homeland Security issued 44 Jones Act waivers (not including waiver modifications) from July 8, 2011, to September 9, 2011. The Jones Act restricts U.S. domestic trade to qualified U.S.-flag vessels. The waivers permitted the use of foreign vessels to transport the crude oil from U.S. delivery points to U.S. refineries. In anticipation of another possible SPR sale, the Jones Act community has put pressure on the Obama Administration to maximize the use of qualified U.S.-flag vessels including promoting the enactment of limiting legislation in 2011 and submission of a February 24 open letter to the relevant agencies. On March 7, 2011, several members of the Coast Guard Subcommittee of the House Transportation and Infrastructure Committee also informed Maritime Administrator David Matsuda that the Subcommittee would be looking to the Administration to ensure compliance with the Jones Act.