The American Waterways Operators (AWO) Letter – October 23, 2024

AWO to Host Webinar on VIDA National Standards of Performance. Please join AWO on Wednesday, October 30, at 2:00 p.m. EDT, for an in-depth overview of EPA’s final rule establishing Vessel Incidental Discharge National Standards of Performance as directed by the Vessel Incidental Discharge Act (VIDA).

During the webinar, we will review the final rule in detail, discuss next steps in the implementation process, and answer member questions. Though the effective date of the final rule is November 8, 2024, the rule’s performance standards will not take effect until the Coast Guard finalizes its implementation regulations, meaning the existing requirements under EPA’s 2013 Vessel General Permit and the USCG’s ballast water management regulations at 33 CFR Part 151 Subparts C and D remain in effect.

To register for the webinar, please log into the AWO member dashboard.

Coast Guard Issues Temporary Policy for STCW Deck Rating Endorsement. The Coast Guard recently issued CG-MMC Policy Letter 04-24 to address how recent temporary changes to the sea service requirements for Able Seamen impact requirements for Standards of Training, Certification and Watchkeeping (STCW) deck ratings. Under the new policy, mariners can concurrently accrue sea service toward the Ratings Forming Part of the Navigation Watch (RFPNW) and Able Seafarer-Deck (AS-D) STCW endorsements. This change is effective immediately, and the National Maritime Center will apply the new policy to any applications that have not already been evaluated.

Coast Guard Makes Changes to Local Notice to Mariners and Light List Delivery. The Coast Guard has announced that the agency will transition to a new delivery platform for Local Notices to Mariners (LNM) and Light Lists (LL) starting October 21. The LNM and LL data, refreshed every 15 minutes and 24 hours, respectively, will be available in a geospatial format from which users can generate a PDF of the LNM or LL for a specific geographic area. Alternatively, users can select a waterway by name to generate LNM or LL information. The Coast Guard is also planning to publish an Application Programming Interface that will allow interested parties, such as navigation software system developers, to access the data.

Following the roll out of this new platform on October 21, the Coast Guard took down the system to improve accuracy. AWO is aware of this issue and is working to clarify when it will be back online and any resulting changes.

Once the system is back online, you will be able to access the updated LNM and LL data through the NAVCEN website. The Coast Guard has developed a User Guide to assist you in using the new system. While legacy versions of these products will no longer be produced or posted after October 31, previously available versions will remain accessible for download indefinitely.

AWO is working with the Coast Guard and ECS providers to ensure that this transition does not compromise members’ ability to navigate safely or to meet chart carriage requirements. Please reach out to Liam Morcroft with any?questions or concerns.

AWO Continues Engagement in MARAD Workforce Working Group. The National Defense Authorization Act for FY 2024 requires the U.S. Maritime Administration to convene maritime industry representatives to assess the pool of U.S. mariners and the workforce needs for the U.S. flag fleet. AWO, represented by Patrick Parsons, Counsel & Director – Government Affairs, has actively engaged in the working group throughout 2024. The group is currently preparing a draft report and recommendations to Congress. In addition to AWO’s and other maritime industry representatives’ direct role in shaping the report, the National Towing Safety Advisory Committee and other advisory committees will be consulted as progress on the draft advances.

N-TSAC Meets in Portland, Maine. AWO staff attended the National Towing Safety Advisory Committee (N-TSAC) meeting in Portland, ME, on September 24-25, which was well attended by industry representatives and Coast Guard personnel.

During the meeting, the Committee voted to accept two final reports: Task Statement 22-01, which recommends regulatory and policy improvements to Subchapter M, and Task Statement 24-02, which makes recommendations on implementation of the Safer Seas Act (SSA) requirement for master key control systems. Informed by a pre-meeting prep session with members, AWO provided input on both reports. The Committee also discussed Task Statement 24-02 to develop recommendations related to the SSA’s signage requirement and took on a new task statement, 24-04, to address the video surveillance requirement of the SSA. The Coast Guard will consider N-TSAC’s recommendations in its forthcoming rulemakings to implement the SSA provisions.

Coast Guard representatives also gave presentations on bridge permitting and oversight, potential advancements for federal drug testing, and activities at the local Sector Northern New England.

AWO will continue to engage with N-TSAC and its subcommittees to ensure our members’ voice is heard and host prep sessions prior to Committee meetings to gather member input to inform our advocacy.

For any questions about N-TSAC, please contact Liam Morcroft or visit the N-TSAC website.

SOCP Releases SASH Contact Training Course. The Ship Operations Cooperative Program (SOCP), a nonprofit organization that includes U.S. maritime industry representatives and government agencies, recently released an online SASH Contact Training Course. While developed for participants in the U.S. Maritime Administration’s EMBARC program, this training is relevant to all parts of the maritime industry and covers “trauma-informed care, reporting requirements, investigation processes, and resources for victims/survivors.” For additional SASH-related materials, you can also access the AWO Resource Library, which includes resources, training materials, and templates.

Sustainability Tech Working Group Update. The AWO Sustainability Tech Working Group recently held its bi-monthly meeting, which featured two excellent member-led discussions. An engine manufacturer outlook conversation was led by working group members John Shock and Gary Sarratt of Caterpillar, Inc. and Tim Peters of Rolls-Royce, who provided a detailed state-of-play for the low-carbon maritime technologies their companies are developing. Additionally, Mary McCarthy, Director of Sustainability and Corporate Responsibility with Moran Towing Company, presented on her company’s ongoing renewable diesel trials. She shared insights on the benefits and challenges of procuring and using drop-in fuel on the East and Gulf coasts.

AWO staff also provided updates on a forthcoming sustainability webinar series, which will be announced in a future AWO Letter, and the ongoing work to implement the recommendations of the Sustainability Task Force. If you or someone in your organization would like to join the working group, please email Bradley Trammell.

October is Cybersecurity Awareness Month! From vessel operators to ports and terminals, the entire maritime supply chain needs to defend against cyber-attacks that can disrupt operations, cause financial losses, and even threaten national security.

To help members identify and mitigate cyber vulnerabilities and respond to and recover from cyber-attacks, the Coast Guard-AWO Safety Partnership’s Cyber Risk Management Quality Action Team previously developed Cyber Risk Management Best Practices. These best practices are tailored to the towing industry and designed to assist members in incorporating cyber risks into their existing risk assessment and management processes. AWO also continues to engage with federal agencies to ensure emerging cybersecurity regulations are practical and risk-based. Both the U.S. Coast Guard and the Cybersecurity and Infrastructure Security Agency (CISA) have pending cybersecurity rulemakings on which AWO has submitted comments.

In the September 17 AWO Letter, AWO reported that the Coast Guard’s final rule to establish cybersecurity requirements for vessel and facility operators is under review by the Department of Homeland Security; we have since clarified that it is still being worked on by the Coast Guard. AWO will continue to monitor the progress of these rulemakings and update members as more information becomes available.

For any cybersecurity related questions or concerns please contact Liam Morcroft.

CISA Holds Cybersecurity Webinar Series for Small and Medium Businesses. The Cybersecurity and Infrastructure Security Agency (CISA), in partnership with the IT Sector Coordinating Council, is inviting critical infrastructure operators to take part in a webinar discussion series designed for small- and medium-sized businesses as part of Cybersecurity Awareness Month, with a focus on Artificial Intelligence (AI).

To learn more and register for each event, please follow the links below.

• October 23, 2024: AI Unlocked: Must Know Principles and Game-Changing Guidelines
• October 30, 2024: Resource Vault: Strengthen Your SMB’s Critical Infrastructure

For any cybersecurity questions or concerns please contact Liam Morcroft.

MARAD Issues RFP for Vessel Efficiency and Underwater Noise Demonstration Projects. The Maritime Administration’s (MARAD) Maritime Environmental and Technical Assistance (META) program has issued a request for proposal (RFP) for projects demonstrating energy efficiency technologies onboard commercial vessels that will also reduce underwater noise. The RFP has a preference for projects integrated at the design phase as opposed to retrofits on existing vessels, and for projects in the Gulf of Mexico. Workboats and harbor craft are among the vessel types included in the proposal. Project awards may be up to $500,000, and the deadline to apply is December 16, 2024.

Join American Maritime VOICES to Help Support the Jones Act. Having a strong, nationwide network of domestic maritime industry supporters is critical to growing support for the Jones Act and defeating attempts to weaken or repeal it. To grow this grassroots network, AWO and other maritime organizations partnered to create American Maritime VOICES. American Maritime VOICES aims to educate supporters about the maritime industry about developments in Congress and across the nation.

Help grow this network of Jones Act support! Check out the latest edition of The Voice newsletter, and join American Maritime Voices for free here.

Learn More about We Work the Waterways. “We Work the Waterways” is an AWO-supported outreach initiative that educates students and children on maritime industry careers. To learn more about the program and what hosting a WWW event in your community entails, check out WWW’s new Educator Packet.

Add Your Voice to Improve Government Efforts to Support and Modernize the Maritime Industry. The U.S. Government Accountability Office (GAO), an independent non-partisan federal agency, has been tasked by Congress to collect industry viewpoints on the U.S. Maritime Administration’s financial assistance programs and identify gaps in the government’s efforts to promote and support U.S. flag vessel operators, including tugboat, towboat, and barge operators. To add your voice, complete GAO’s 5-10 minute survey here by November 15.

AWO PAC and Inside Elections. AWO PAC has partnered with Inside Elections for another special edition, featuring insights on the presidential race, as well as Senate and House races.

AWO PAC is the connected political action committee for The American Waterways Operators and serves as the trade association’s separate segregated fund. As a trade association, AWO is prohibited from using general treasury funds or membership dues to make federal contributions. AWO is one of the most effective advocacy associations in Washington, DC, and relies on voluntary personal contributions to fund AWO PAC.

AWO PAC supports federal candidates who are champions of the U.S. tugboat, towboat and barge industry and who are leaders on issues important to our industry. AWO PAC is dedicated to protecting AWO members’ investments in the safest, most environmentally responsible and most economical mode of freight transportation and safeguarding the integrity of the Jones Act to protect the bottom lines of our members.

AWO PAC may solicit contributions from individuals of a member company once the member representative gives AWO written prior approval.

AWO Meets with Sector LA-Long Beach, Sector San Francisco. AWO members met with Coast Guard Sector personnel from Los Angeles-Long Beach and San Fransico prior to Fall Convention earlier this month. California operators shared insights with Sector LA-Long Beach Commanding Officer CAPT Stacy Crecy and Sector San Francisco leader CAPT Jordan Baldueza and their respective teams to discuss safety issues with Diesel Particulate Filters and other requirements of the Commercial Harbor Craft Rule.

Fall Convention Recap

On October 8-9, AWO members gathered in Long Beach, CA for the Fall Convention and Board of Directors Meeting. Attendees discussed and voted on association business, heard from industry leaders and experts on timely policy issues, and enjoyed a variety of networking and social events. Thank you to everyone who joined us!

Read below for a full recap and visit the AWO Member Resources Library for video footage from the meeting, which will be available in the coming weeks.

In her opening remarks, Chairman Kelly Teichman welcomed attendees to Long Beach and highlighted the 80th anniversary of the association, pointing to the progress that AWO has made over the past eight decades. She explained that these results are due to members’ hard work but noted that change continues to be a constant and that “we have to look forward” and safeguard this progress. She emphasized that AWO’s advocacy has remained “steady, thoughtful, and remarkably effective,” despite the many changes industry has endured – from natural disasters, to terror attacks, to high and low water and more. Kelly stressed that the issues facing the tugboat, towboat and barge industry are “as diverse and consequential as they have ever been,” citing the Jones Act, SASH, and state issues, among others. She also touched on AWO’s key role in improving industry safety and telling the industry’s “inspiring” story. Kelly emphasized that our success in advocacy, safety, and telling the industry story over the past 80 years is a direct result of AWO member involvement. “We literally couldn’t do it without you,” she underscored.

AWO President & CEO Jennifer Carpenter focused on AWO’s advocacy resiliency in her President’s remarks, discussing the challenging environment industry has faced on some issues, including the CARB Commercial Harbor Craft Rule. “We are doing hard things on contested terrain,” she explained, noting that AWO continues to learn from advocacy experiences and improve our ability to get the job done, whether that be in California, other states, or at the national level. Jennifer also highlighted AWO’s hard-fought advocacy wins, including the multi-year effort to preempt state regulation and improve the practicality of vessel discharge requirements, citing the recent EPA final rule on VIDA implementation, which incorporates numerous AWO recommendations; and called attention to the most recent Organizational Impact Report, which she noted is full of examples of AWO’s hard work and achievements on behalf of members  She emphasized that big advocacy challenges lay ahead, that success will take all hands on deck, and that members’ united voice will be critical.

Jennifer also gave an update on implementation of AWO’s three-year Strategic Plan, which is approaching the end of its final year, and presented the draft 2025-2027 Strategic Plan that was developed by the Executive Committee, drawing on input from members across the association. The Board voted unanimously to approve the new strategic plan. AWO staff reported out on progress on AWO’s 2024 advocacy priorities, state and regional advocacy, industry promotion and communications strategy, safety and sustainability work, and association finances. In addition to approving the new strategic plan, the Board voted to approve the 2025 AWO budget and file a friend-of-the-court brief arguing that California’s meal and rest break requirements as applied to mariners are preempted by Coast Guard regulation.

Education Sessions Recap. On Wednesday, October 9, Fall Convention attendees heard from guest speakers and panelists on a variety of timely topics.

Keynote Address: What’s Going on with West Coast Maritime, and Why It Matters to You. Mike Jacob, President of the Pacific Merchant Shipping Association (PMSA), joined AWO Pacific Region Vice President & Regional Team Lead Peter Schrappen for a discussion on the state of maritime on the West Coast. He highlighted the significant diversification of the LA/Long Beach ports, explaining that while the economy is growing and trade is still robust, other ports around the country have grown at much greater rates than those on the Pacific Coast. Mr. Jacob emphasized that regulatory compliance is PMSA’s number one priority, calling it “all-consuming.” He also noted that the lower growth means West Coast ports have fewer resources to deal with this regulatory overhead.

Mr. Jacob also reviewed the significant progress California maritime has made in emissions reductions since 2006. If progress continues on this path, he explained, emissions should be cut in half by 2031, and by 2037 all modes should have such low emission levels that none of them are significant contributors to air quality issues in Southern CA. These are substantial reductions across the board from every sector, Mr. Jacob emphasized, noting that “there are no other industries that have met numbers like this… in the time frame that we’ve done it.”

Navigating Employment Challenges in a Shifting Regulatory Landscape. Perez Law LLC Founder Kathlyn Perez discussed navigating the patchwork of state regulations as relates to employment laws. She explained that federal laws set the minimum standard, and then states create their own laws over and above these regulations. The inconsistencies this system creates force companies to set up different systems depending on where they do business as well as where employees are located.

To navigate these constantly changing challenges, companies should build proactive systems, not reactive ones, she emphasized. Human Resources departments need the help of business leaders and the resources to be more proactive, she explained, giving the example of strategic outsourcing for leave management. Ms. Perez also recommended engaging HR as a strategic partner, noting that when a business makes HR a strategic ally, they can help spot issues in advance. She recommended prioritizing HR risk management and utilizing workplace investigations, which she called an “overlooked” risk management tool.

Congressman Salud Carbajal (D-CA), Ranking Member of the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation, stopped by the AWO Fall Convention to give remarks and answer attendee questions.

Social License to Operate. Kit Cole, Founder and CEO of Kit Cole Consulting, and Justin Salters, Founder and President of Hey Salty, Inc., presented on the social license to operate (SLO) and how a company can ensure theirs is secure. It is no longer optional to have an SLO, Ms. Cole said, emphasizing the right time to get one is way before you need it. A social license to operate is the ongoing acceptance and approval of your business practices and operations by employees, stakeholders and the general public, Mr. Salters explained, adding that unlike formal regulatory permits, it is an informal and intangible contract that grants an organization the legitimacy to operate. Key elements of an SLO include legitimacy, credibility, trust, and approval. Social media has “changed the landscape” for SLOs and has added urgency to getting one, Ms. Cole and Mr. Salters noted.

They continued that being proactive about stakeholder engagement can make a big difference. A critical aspect of stakeholder engagement is following up and making adjustments where practicable. Mr. Salters and Ms. Cole also emphasized the importance of managing oneself – as people, our instinct is to start to engage the vocal opposition, but instead you should focus your energy on the “squishy middle,” or those who are undecided on your organization.

“You wouldn’t run your equipment until it breaks,” Ms. Cole concluded; “your social license to operate should be the same.”

As California Goes, So Goes the Nation: What’s Next for California Ports and the Industries that Serve Them. Senior Field Representative Mark Fuentes from the office of California Assemblymember Mike Gipson joined AWO State Advocacy Director Kyle Burleson to discuss California ports and his office’s work on maritime issues.

Mr. Fuentes discussed the lessons Assemblymember Gipson, who chairs the Select Committee on Ports and Goods Movement, learned during tours of and hearings about California ports, workforce development, and emissions regulations. When Mr. Burleson asked how industry can most effectively make its case to policymakers, Mr. Fuentes emphasized the importance of engaging with communities and building relationships with state legislators.

When asked for advice on next steps regarding the CARB Commercial Harbor Craft rule, AB 1122, Mr. Fuentes underscored that CARB is ultimately an extension of the Governor’s office and advised industry to push that conversation with the Governor. He also stressed the importance of rectifying a lack of knowledge that legislators have about the maritime industry and suggested focusing on safety issues, emphasizing that the need for port safety is very high right now.

Mr. Fuentes also highlighted the value of making members’ collective voice heard, calling and visiting legislators’ offices, and having a social media presence so that “if you do good work you can share it.”

Cybersecurity from a Corporate Governance Perspective. CAPT Ryan Manning (USCG ret.), Director of Security for the Port of Long Beach, spoke to attendees about cybersecurity challenges and best practices.

National Maritime Strategy. Staff from the Offices of Representative Michael Waltz (R-FL) and Senator Mark Kelly (D-AZ) participated remotely, overviewing their bosses’ draft legislation to establish a national maritime strategy to enhance U.S. national and homeland security. Rachel Miller (Senator Kelly) and Daniel Pedrotty (Representative Waltz) walked through the SHIPS for America Act, which aims to address the U.S.’s lag in fleet size, shipbuilding, and maritime workforce as compared to China.

The legislation focuses on three main areas: shipbuilding, shipping, and workforce. Provisions in the bill that Ms. Miller and Mr. Pedrotty highlighted include:

• Tax credits & financial incentives for shipbuilding and shipping
• A 100% U.S. government cargo preference requirement
• Measures to increase the number of U.S. flag vessels in international trade
• Regulatory reforms
• Measures to promote workforce recruitment and retention, including strengthening the military to maritime workforce pipeline
• Mariner training reforms

They noted that the legislation’s implementation would be funded through a Maritime Security Trust Fund, and that they aim to introduce the bill in the next month or so as a marker for a conversation that will continue into the next Congress.

Rubbing Elbows and Enjoying Beautiful Weather. AWO members enjoyed networking and socializing throughout the Fall Convention.  Attendees took part in an early morning run or joined in a yoga practice on Wednesday morning, and everyone was able to mingle during a lunch for early arrivals hosted by Curtin Maritime on October 8 and the two well-attended receptions which included an 80th Anniversary Celebration aboard the RMS Queen Mary.

THANK YOU, SPONSORS! AWO once again enthusiastically thanks our sponsors, whose generosity made the entire event such a success!

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