WASHINGTON, D.C. – The Offshore Marine Service Association (OMSA) today lauded the passage of H.R. 6395, the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (NDAA). Section 9503 of the legislation affirms that the Outer Continental Shelf Lands Act (OCSLA) applies to offshore wind and other renewable energy projects constructed on the U.S. Outer Continental Shelf (OCS).
OCSLA, which dates to 1953, governs offshore energy activities in federal waters, and extends all U.S. laws to energy exploration, development, and production activities occurring in U.S. federal waters.
Studies have indicated that offshore wind development off the U.S. East Coast is poised to provide an immense economic benefit, with the possibility to provide for 83,000 jobs and $25 billion in economic activity. While the U.S. Department of the Interior has long believed that OCSLA applied to offshore wind development, recent statements by other government officials and those who sought to carve themselves out of U.S. laws has left some to question that fact and if U.S. investment in this market would be honored.
Section 9503 is similar to an amendment offered by U.S. Representative John Garamendi (D-CA) to H.R. 4447, the Clean Economy Jobs and Innovation Act. That legislation passed the U.S. House in September of this year.
“Offshore wind development will play a critical role in our nation’s transition to a clean energy economy,” Garamendi said. “Demand for offshore wind development in U.S. waters is strong, and Congress must act to ensure this burgeoning industry abides by federal laws and regulations, including the Jones Act, so we have the strongest possible labor, antitrust, and environmental protections. My common-sense amendment to the Outer Continental Shelf Lands Act simply clarifies that all existing safeguards that govern offshore oil and natural gas extraction also apply to wind energy. This will enable American workers to support offshore wind development and provide a critical economic stimulus for our nation, with construction on the first major offshore wind project in federal waters set to begin as soon as next year.”
Section 9503 also mirrored legislative language included in U.S. Senators Sheldon Whitehouse (D-RI) and Bill Cassidy (R-LA) S. 3485, the OFFSHORE Act of 2020, which was introduced earlier this year. Of the language being passed, Cassidy said, “The Louisiana maritime industry is one of the largest in the country and has been essential for the growth of energy development in U.S. waters for decades. Congress always intended for OCSLA to apply to renewable energy, but interpretations from some federal agencies created uncertainty. Passage of this language re-affirms Congress’ intent.”
U.S. Representative Alan Lowenthal (D-CA), the Chairman of the Subcommittee on Energy and Mineral Resources, the subcommittee with jurisdiction over OCSLA also supported the provision and had previously cosponsored the Garamendi Amendment,” Lowenthal said, “I was pleased to see that critical language to clarify that the Jones Act and other federal protections apply to offshore renewable energy projects, such as wind farms, was included and passed as part of this year's NDAA. The Jones Act requires American-flagged and American-staffed vessels be used in transportation between two American locations. For decades it has ensured that our nation has a reliable and accessible domestic merchant fleet of cargo vessels, the sailors to operate them, and the shipyards to build and repair them. I was proud to work with my California colleague, Rep. John Garamendi, and a bipartisan coalition of members from across the country to advocate for this important provision. American workers supporting American industry supporting the American economy and American national security—that is what the Jones Act, and the domestic maritime shipping industry, are all about. It is essential that it apply to the greening of our economy as well.”
Lowenthal was joined in advocated for Section 9503 by U.S. Representative Garret Graves (R-LA) a member of the U.S. House Committee on Transportation and Infrastructure and U.S. House Committee on Natural Resources, the committees charged with overseeing the maritime industry and offshore energy development. Of passage Graves said, “Louisiana’s maritime industry has always played a very important, supportive role in the development of American energy in the outer continental shelf. And as states around the country look to diversify their energy portfolio, we have to keep in mind the thousands of Americans that have the expertise necessary to be utilized across energy production. Diversifying our economy and workforce go hand in hand, and applying the Jones Act to offshore alternative energy development further strengthens the relationship to ensure American capacity for offshore wind projects moving forward. I extend my congrats to all the stakeholders that worked to get this provision included so we could bolster Louisiana's economy, jobs and ways of life,” Graves said.
As offshore wind projects started to be planned and developed, OMSA members leveraged the experienced they gained in constructing and serving offshore oil and gas projects for the past 70-year history to the construction of offshore wind projects. As a result, numerous OMSA members worked on the construction of the Block Island Offshore Wind farm, the first operational offshore wind farm in U.S. waters.
The interest and involvement of OMSA members in this emerging and transformational market led OMSA, as an organization, to become involved the offshore wind market as well, advocating for quicker approval of offshore wind permits, working to ensure that the Jones Act fully applied to this market, and other advocacy to ensure that the U.S. maritime industry competed on a level playing field with their international competitors in this market.
OMSA had advocated heavily for OCSLA provision, working with Congressional offices to ensure that Congress understood the importance of providing clarity, understood how offshore energy projects are constructed on a practical basis, and ensuring the language covered all activities related to offshore wind project.
OMSA President, Aaron Smith applauded the passage saying, “we are immensely grateful that Congress has passed legislation ensuring that all U.S. laws apply to offshore wind development and providing parity between offshore oil and gas projects and offshore wind projects.”
OMSA’s involvement in the offshore wind industry started as result of then Chairman and Aries Marine CEO Court Ramsay’s direction. Ramsay also praised passage of the provision and said, “Like myself, OMSA members are excited about the prospects of Offshore Wind- I love the Atlantic region and believe our members will offer the needed tonnage and expertise. Also, I can’t thank Congress enough for taking these measures which will incentivize this important market and give investments a positive way forward. Our Legislators understood we must assure U.S. laws are clearly applied to U.S. Offshore Wind development and today they acted with purpose.”
The affirmation of OCSLA in the NDAA is based on legislation former U.S. Representative (and current Louisiana Attorney General) Jeff Landry (R-LA) sponsored when he was a member of the U.S. House of Representatives. During the 112th Congress (2011 – 2012) the U.S. House passed that legislation, but it was never considered by the U.S. Senate. At that time, Smith was Rep. Landry’s Legislative Director. Of this history, Smith said, “General Landry spent his House career working to ensure that Louisiana and American businesses were provided with a level-playing field and ample opportunity to construct our nation’s offshore energy infrastructure, I’m proud we were able to deliver on that mission.”
# # #
The Offshore Marine Service Association (OMSA) is the advocate for the offshore marine transportation service industry in the United States. The Association represents 170-member companies and their 12,000 U.S. employees.
