Posted: March 27, 2012

McCain amendments target Jones Act


Arizona Republican Sen. John McCain today sponsored four legislative amendments targeting the Jones Act for amendment, waiver or outright repeal.

The amendments were filed in advance of this afternoon's anticipated Senate floor debate on S. 2204, a bill to extend tax credits for renewable energy projects and repeal tax breaks for the oil and gas industry.

Enacted as Section 27 of the Merchant Marine Act of 1920, the Jones Act reserves all domestic waterborne commerce for merchant vessels owned, built, flagged and crewed in the United States.

"Sen. McCain is a longtime critic of the Jones Act," AMO National President Tom Bethel noted. "He has tried several times to kill or weaken this domestic shipping law, but he has found little or no support among his Senate colleagues on either side of the political divide.

"Sen. McCain was prominent among those who charged - inaccurately and irresponsibly - that the Jones Act was an impediment to the emergency response and oil spill cleanup effort during the Deepwater Horizon environmental crisis in the Gulf of Mexico in 2010," Bethel added. "His unsuccessful legislation during the crisis was an attempt to exploit public and political anger to satisfy a senseless, dangerous career-long obsession with Jones Act repeal."

One amendment submitted today by Sen. McCain would essentially repeal the Jones Act within 90 days. The Senator's three additional amendments would waive specific Jones Act requirements applicable to tank vessels - including liquefied natural gas carriers - and to small passenger vessels.

"This time, Sen. McCain wants to exploit public and political anger over the rising cost of gasoline and other fuels to force Jones Act repeal," Bethel said. "Our union's legislative staff in Washington is working independently and with other U.S. maritime interests to blunt this emerging threat."

Bethel said the measures introduced by Sen. McCain "complement other calls for Jones Act repeal or amendment or harmful waiver." He cited "increasing local pressures" in the public and private sectors to exempt the non-contiguous states and territories of Hawaii, Puerto Rico and Guam from domestic shipping laws and "a renewed push" to strip the Jones Act of its requirement that vessels operating exclusively between U.S. ports be built in U.S. shipyards.

"There is a lot at stake in a Jones Act debate - 500,000 U.S. jobs at sea and ashore in the private sector nationwide, billions in private capital investment in deep-sea, Great Lakes and inland waters vessels, U.S. sovereignty and U.S. security," Bethel said. "But most lawmakers on both sides of the aisle understand that the Jones Act serves legitimate and lasting U.S. economic and defense interests.

"Our responsibility in American Maritime Officers is to make certain that the political balance continues to favor the Jones Act in the Senate and in the House of Representatives," Bethel continued. "I ask everyone in our union to join me in support of the AMO Voluntary Political Action Fund, which is of immeasurable value in support of this obligation."

A footnote - the outcome of today's Senate debate will be posted here, and a more detailed report on emerging threats to the Jones Act will follow.