House of Representatives approves Coast Guard Authorization Act with provisions to bolster U.S. maritime industry

The Coast Guard Authorization Act of 2019 (H.R. 3409) was approved on July 24 by the House of Representatives and now advances to the Senate for consideration. Among other things, the legislation includes several provisions that would work to strengthen the U.S. maritime industry in both U.S. domestic and international trades.

Regarding U.S. cargo preference laws, which require portions of U.S. government impelled cargo shipped overseas to be carried by U.S.-flagged vessels, the legislation would require the Comptroller General of the United States to conduct an audit of the U.S. cargo preference program, to include:

• Agencies and organizations required to comply with cargo preference laws
• An analysis of the compliance and non-compliance exhibited by these agencies and organizations, including cargoes shipped and the percentage of U.S.-flag usage
• The cargo preference enforcement actions taken by the U.S. Maritime Administration (MARAD) since October 14, 2008

Notably, a provision of the National Defense Authorization Act for fiscal year 2009 known as the 'Inouye amendment' became law on October 14, 2008, providing MARAD with enforcement authority regarding cargo preference requirements - specifically the abilities to:

• Direct government agencies and organizations to utilize U.S.-flagged vessels to transport cargo not otherwise subject to cargo preference in equivalent amounts to cargo shipped on foreign vessels in violation of cargo preference laws, and
• Impose a fine of up to $25,000 on any person who knowingly violates the Cargo Preference Act or a MARAD implementing regulation pertaining to the law, with each day of continued violation of the law considered a new and separate violation subject to a fine

Despite being provided with enforcement authority, MARAD has not developed conforming regulations to implement these enforcement actions related to cargo preference laws.

The audit included in the Coast Guard Authorization Act of 2019 would have to be submitted to the House Transportation and Infrastructure Committee and to the Committee on Commerce, Science and Transportation in the Senate, and would have to provide recommendations related to its findings.

Regarding requests for Jones Act waivers, the Coast Guard Authorization Act of 2019 would require the Department of Defense to verify within 24 hours that any Jones Act waiver request is in fact in the interest of national defense, and to include confirmation that there are insufficient Jones Act qualified vessels to meet the needs of national defense without a waiver. This verification would have to be provided to the Transportation and Infrastructure and the Armed Services Committees in the House of Representatives and to the Armed Services and the Commerce, Science and Transportation Committees in the Senate.

The Coast Guard Authorization Act of 2019 would authorize the Department of Transportation to establish safety zones within the U.S. exclusive economic zone in offshore areas, which could provide for the expanded use of U.S. vessels for special activities, including 'space activities' such as launch and recovery, and energy development activities.

The House Transportation and Infrastructure Committee released the following article on the passage of H.R. 3409.

Washington, DC - Today, the U.S. House of Representatives passed bipartisan legislation to reauthorize, strengthen, and support the United States Coast Guard in its critical missions to save lives, safeguard our shores, protect the marine environment, and help ensure a 21st century maritime transportation system for America. The bill now moves to the Senate.

"I am pleased that the Transportation and Infrastructure Committee was again able to come together to find common ground in support of the Coast Guard and to address our nation's maritime transportation needs. I am thankful for the support of my Republican colleagues. Passage of this bill today bodes well for the Committee's plans to move other major transportation bills this Congress," said Transportation and Infrastructure Committee Chair DeFazio (D-OR). "While I am disappointed the final bill did not include my provision to ensure our Coasties get paid during a shutdown if other branches of the military are paid, I'll keep fighting to move my provision elsewhere, because it's the right thing to do. This legislation is vital to our Coast Guard and maritime workers across the country - I encourage a swift passage through the Senate and look forward to the President signing it into law."

"The men and women of the Coast Guard risk their lives on a daily basis to protect the Nation's borders, stop the flow of illegal drugs and migrants into the United States, enforce U.S. laws at sea, facilitate commerce, and more. This bill helps provide the Coast Guard, one of our Nation's five armed services, with resources to improve its aging fleet of assets and carry out its missions more effectively," said Transportation and Infrastructure Committee Ranking Member Sam Graves (R-MO).

"As the Chairman of the Coast Guard and Maritime Transportation Subcommittee, I am confident this bill will give the Coast Guard the tools it needs to protect our waters and coastal communities. Our Coasties work tirelessly in their missions to patrol our waters, interdict drug smugglers, and support communities after natural disasters and emergencies. These brave men and women deserve our full support and this bipartisan bill delivers that," said Coast Guard and Maritime Transportation Chair Sean Patrick Maloney (D-NY).

"The Coast Guard Authorization Act is an important bipartisan effort to ensure the men and women who play a unique role in national security and maritime safety have the best and latest tools to fulfill their missions. Coast Guard personnel work tirelessly day in and day out to prevent drugs from entering our country, keep Americans safe on water, and maintain open lanes of commerce. I am proud to have joined my colleagues on both sides of the aisle to pass this bill. Thank you to Chairman DeFazio, Ranking Member Sam Graves, and Subcommittee Chairman Maloney for working together with me to strengthen the Coast Guard and assist them in protecting coastal, inland, and Great Lakes waterways," said Coast Guard and Maritime Transportation Ranking Member Bob Gibbs (R-OH).

H.R. 3409, the Coast Guard Authorization Act of 2019 (CGAA 2019), is legislation that reauthorizes appropriations for the Coast Guard and Federal Maritime Commission through Fiscal Year 2021. The bill also includes regulatory improvements to promote the U.S. maritime industry and offshore renewable energy development, ongoing authorization of funding to build new polar security cutters (heavy ice breakers), new requirements for the Coast Guard to assess and evaluate unmanned technologies for potential use in Coast Guard operations, provisions to increase diversity at the U.S. Coast Guard Academy, and new maritime safety enhancements.