Posted:
January 17, 2014
Today, the President signed an omnibus appropriations bill that covers the balance of fiscal year 2014 and includes full funding for the Maritime Security Program, as well as funding for other programs crucial to the U.S. maritime industry.
The Senate voted to approve the bill on Thursday following passage of the legislation by the House of Representatives on Wednesday. In addition to appropriations, the bill includes provisions geared to bolster the U.S.-flag fleet. The omnibus appropriations legislation replaces the short-term continuing resolution that funded the federal government through Jan. 15 and was extended while the new spending legislation moved through Congress.
"This legislation is a victory for the U.S. merchant marine and it serves as a powerful acknowledgement of the importance of the U.S.-flag fleet to U.S. defense sealift capabilities and our nation's commerce," said AMO National President Tom Bethel. "We have been facing extremely uncertain circumstances on multiple fronts. While more work remains to be done, this bill is a big step forward for the U.S. maritime industry.
"The maritime funding levels for this fiscal year provided in the bill were made possible by the strong support of congressional appropriations leaders Congressman Hal Rogers (R-KY) and Senator Barbara Mikulski (D-MD), and that of many senators and representatives on both sides of the aisle," Bethel said. "Chairman of the House Transportation Appropriations Subcommittee Tom Latham (R-IA) held fast to his long standing support of the MSP during deliberations on this legislation. Tom has announced that he will retire at the end of his term, and the U.S. maritime industry will miss his support."
The legislation provides $186 million for the Maritime Security Program's fleet of 60 U.S.-flagged ships, the full funding level authorized by law for the program in fiscal year 2014.
The bill provides $1.466 billion for Food for Peace Title II, an increase over the $1.435 billion enacted for fiscal year 2013. The legislation keeps the Food for Peace Title II funding under the Department of Agriculture, avoiding both a shift of the money to other government agencies and the radical restructuring sought by the Obama administration and its congressional allies. The fiscal year 2014 legislation allocates $35 million of the total appropriation to agencies and purposes other than commodities supplied in connection with the Food for Peace Act.
Under current cargo preference requirements, 50 percent of U.S. food-aid shipments must be carried by U.S.-flagged vessels. In that regard, the omnibus appropriations bill, within 90 days of its enactment, requires the Maritime Administration to submit a report detailing the current and future impacts on the U.S. merchant marine of the reduction in the U.S.-flag share of U.S. food-aid shipments from 75 percent to 50 percent made by surface transportation legislation (MAP-21) enacted in 2012, as well as the impact of the winding down of the wars in Iraq and Afghanistan.
Additionally, the bill requires the secretary of transportation and the maritime administrator, working in collaboration with the Department of Defense, to "develop a national sealift strategy that ensures the long-term viability of the U.S. merchant marine."
The legislation includes an appropriation for the National Defense Sealift Fund; however, at this time, the precise allocation for the Ready Reserve Force fleet could not be ascertained. This information will be reported when it becomes available.
The omnibus appropriations bill provides $38.5 million for the Maritime Administration's Title XI shipbuilding loan guarantee program, $35 million of which is designated for new loan guarantees. The leadership of Rep. Duncan Hunter (R-CA) was instrumental in the inclusion of this appropriation in the omnibus bill. Title XI has long depended upon congressional support for funding beyond administrative expenses, and the funding included in the fiscal year 2014 bill will provide a significant boost for new projects at U.S. shipyards. Title XI is not a subsidy program, and serves to ease access to private sector financing for the commercial construction of merchant vessels in the U.S.
The legislation also seeks to ensure the maximum utilization of Jones Act qualified vessels in the transportation of oil drawn from the U.S. Strategic Petroleum Reserve. Sen. Mary Landrieu (D-LA) spearheaded the effort to ensure this issue was addressed in the omnibus bill. Specifically, the legislation prohibits the expenditure of any funds to approve a waiver of the Jones Act for the transportation of crude oil distributed from the SPR until "the secretary of homeland security, after consultation with the secretaries of the Departments of Energy and Transportation and representatives from the United States flag maritime industry, takes adequate measures to ensure the use of United States flag vessels." The bill also requires that notification of requests for Jones Act waivers be provided to the Committees on Appropriations and on Commerce, Science and Transportation in the Senate, and to the Committees on Appropriations and on Transportation and Infrastructure in the House of Representatives.
Omnibus appropriations bill enacted with full funding for Maritime Security Program in FY 2014
Today, the President signed an omnibus appropriations bill that covers the balance of fiscal year 2014 and includes full funding for the Maritime Security Program, as well as funding for other programs crucial to the U.S. maritime industry.
The Senate voted to approve the bill on Thursday following passage of the legislation by the House of Representatives on Wednesday. In addition to appropriations, the bill includes provisions geared to bolster the U.S.-flag fleet. The omnibus appropriations legislation replaces the short-term continuing resolution that funded the federal government through Jan. 15 and was extended while the new spending legislation moved through Congress.
"This legislation is a victory for the U.S. merchant marine and it serves as a powerful acknowledgement of the importance of the U.S.-flag fleet to U.S. defense sealift capabilities and our nation's commerce," said AMO National President Tom Bethel. "We have been facing extremely uncertain circumstances on multiple fronts. While more work remains to be done, this bill is a big step forward for the U.S. maritime industry.
"The maritime funding levels for this fiscal year provided in the bill were made possible by the strong support of congressional appropriations leaders Congressman Hal Rogers (R-KY) and Senator Barbara Mikulski (D-MD), and that of many senators and representatives on both sides of the aisle," Bethel said. "Chairman of the House Transportation Appropriations Subcommittee Tom Latham (R-IA) held fast to his long standing support of the MSP during deliberations on this legislation. Tom has announced that he will retire at the end of his term, and the U.S. maritime industry will miss his support."
The legislation provides $186 million for the Maritime Security Program's fleet of 60 U.S.-flagged ships, the full funding level authorized by law for the program in fiscal year 2014.
The bill provides $1.466 billion for Food for Peace Title II, an increase over the $1.435 billion enacted for fiscal year 2013. The legislation keeps the Food for Peace Title II funding under the Department of Agriculture, avoiding both a shift of the money to other government agencies and the radical restructuring sought by the Obama administration and its congressional allies. The fiscal year 2014 legislation allocates $35 million of the total appropriation to agencies and purposes other than commodities supplied in connection with the Food for Peace Act.
Under current cargo preference requirements, 50 percent of U.S. food-aid shipments must be carried by U.S.-flagged vessels. In that regard, the omnibus appropriations bill, within 90 days of its enactment, requires the Maritime Administration to submit a report detailing the current and future impacts on the U.S. merchant marine of the reduction in the U.S.-flag share of U.S. food-aid shipments from 75 percent to 50 percent made by surface transportation legislation (MAP-21) enacted in 2012, as well as the impact of the winding down of the wars in Iraq and Afghanistan.
Additionally, the bill requires the secretary of transportation and the maritime administrator, working in collaboration with the Department of Defense, to "develop a national sealift strategy that ensures the long-term viability of the U.S. merchant marine."
The legislation includes an appropriation for the National Defense Sealift Fund; however, at this time, the precise allocation for the Ready Reserve Force fleet could not be ascertained. This information will be reported when it becomes available.
The omnibus appropriations bill provides $38.5 million for the Maritime Administration's Title XI shipbuilding loan guarantee program, $35 million of which is designated for new loan guarantees. The leadership of Rep. Duncan Hunter (R-CA) was instrumental in the inclusion of this appropriation in the omnibus bill. Title XI has long depended upon congressional support for funding beyond administrative expenses, and the funding included in the fiscal year 2014 bill will provide a significant boost for new projects at U.S. shipyards. Title XI is not a subsidy program, and serves to ease access to private sector financing for the commercial construction of merchant vessels in the U.S.
The legislation also seeks to ensure the maximum utilization of Jones Act qualified vessels in the transportation of oil drawn from the U.S. Strategic Petroleum Reserve. Sen. Mary Landrieu (D-LA) spearheaded the effort to ensure this issue was addressed in the omnibus bill. Specifically, the legislation prohibits the expenditure of any funds to approve a waiver of the Jones Act for the transportation of crude oil distributed from the SPR until "the secretary of homeland security, after consultation with the secretaries of the Departments of Energy and Transportation and representatives from the United States flag maritime industry, takes adequate measures to ensure the use of United States flag vessels." The bill also requires that notification of requests for Jones Act waivers be provided to the Committees on Appropriations and on Commerce, Science and Transportation in the Senate, and to the Committees on Appropriations and on Transportation and Infrastructure in the House of Representatives.