Posted on October 20, 2022
Despite the outrage expressed by U.S. maritime interests over his earlier issue of a “temporary and targeted” Jones Act waiver for Puerto Rico, Secretary of Homeland Security Alejandro Mayorkas approved another such waiver yesterday—this time for LNG.
“In support of the Puerto Rican people as they continue to recover from Hurricane Fiona, I have approved a temporary and targeted Jones Act waiver to address the unique and urgent need for liquified natural gas in Puerto Rico. As with the previous waiver, the decision to approve was made in consultation with the Departments of Transportation and Energy to assess the justification for the waiver request and based on input from the Governor of Puerto Rico and others on the ground supporting recovery efforts.”
The Jones Act is vital to maintaining the strength of the American shipbuilding and maritime industries by requiring all maritime cargo transport between U.S. ports to occur on U.S. flagged vessels. When U.S. flagged vessels are not available to meet national defense requirements, the Department of Homeland Security may grant a waiver to the Jones Act if the proposed shipments are in the interest of national defense and after careful evaluation of the issue. In 2020, Congress eliminated the federal government’s authority to issue long-term comprehensive waivers, except in circumstances where a waiver is required to “address an immediate adverse effect on military operations.” Under the law, waivers that do not meet that standard must be reviewed on a case-by-case basis.