Calash, “Economic Impacts of the Proposed U.S. House of Representatives Amendment to the Jones Act Related to Offshore Oil and Natural Gas Installation Vessels” (September 2019)
The Coast Guard Authorization Act (H.R. 3409), passed by the House, includes language in Section 305 that would apply the Jones Act to vessels installing or removing large offshore facilities on the Outer Continental Shelf. Specifically, it imposes a waiver process that suggests all offshore oil and natural gas installation, construction, and removal activities are Jones Act activities.
The effects of this provision, which incorrectly considers these construction activities as transportation, could lead to significant delays in offshore exploration and development projects, as well as reduced investment and government revenues. Congress should instead defer to the regulatory process so that all potential impacts are considered and addressed in a safe and technically feasible manner.
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