US Energy Secretary Chris Wright said early this week that the Trump administration was likely to extend its temporary emergency waiver of the Jones Act again, arguing the measure has helped move energy supplies around the country and kept fuel prices lower during disruptions tied to the Middle East conflict.
Speaking on Tuesday at the Port of Brownsville, Texas, Wright said the administration considered that the waiver had been a success. “I think the temporary waivers of the Jones Act for transporting energy have been very successful,” Wright said. “We’ve had probably 200 ship voyages that have used that to move energy, particularly to places like California.”
He said the waiver had helped lower energy costs on both coasts by allowing foreign-flag vessels to transport petroleum products between US ports – claims denied by the strong lobby within the US maritime sector that supports the retention of the act and the elimination of any waivers.
“The Jones Act waivers have been helpful in keeping energy prices on the east coast and on the west coast lower than they would otherwise be. That’s a Trump Administration Agenda,” Wright said, adding that “so I think another extension, temporary extension, of the Jones Act waivers is quite likely to happen. When we get energy flows back to normal again, things will go back to as they were”.
If the administration intends to continue using emergency authority under Section 501 of the Merchant Marine Act beyond the current expiration date, the White House will face strengthening organized opposition for various interest groups – including labour unions and legislators from both parties, but who tend to have as their constituents a sizeable sector of the maritime groups.
The administration first invoked the waiver in March, citing national defence concerns following disruptions to global energy markets caused by the conflict with Iran and threats to shipping through the Strait of Hormuz.
More recently the concern has been about the price of gasolene at the pump.
The measure temporarily allows approved foreign-flag vessels to transport petroleum products and other energy cargoes between US ports. These would normally be reserved under cabotage rules to US-flag ships with US crew.