Statement of Administration Policy: S. 1988 - Amendments to the Merchant Marine Act of 1920

(House)
(Breaux (D) Louisiana and three others)

The Administration opposes S. 1988 because it would extend the Jones Act to the U.S. Exclusive Economic Zone (EEZ). By extending the Jones Act requirements to the transportation of sewage sludge and dredged materials in the EEZ, it would impose unnecessary economic burdens on municipalities, could increase the cost of certain Federal dredging activities, and impede the development of the Outer Continental Shelf by U.S. leaseholders. The extension of the Jones act could also provoke emulation by foreign countries that would be detrimental to U.S. companies operating off their shores.

The Administration does not object to provisions in the bill which would: (1) create a limited exemption from Jones Act requirements for specified launch barges which are not produced in the United States; and (2) authorize the coastwise documentation of a U.S. built dredge which has a defective title with respect to the Jones Act, provided that the owner meets all of the Act's other requirements.

The Administration urges that S. 1988 not be considered under suspension of the rules and that it be amended accordingly.