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Rep. Rick Larsen, WA-02, today urged Congress and the Administration to support American maritime jobs by fully enforcing the Jones Act. At a hearing of the Subcommittee on Coast Guard and Maritime Transportation, on which Larsen serves as the ranking Democratic member, Larsen made the case that any oil released from the Strategic Petroleum Reserve should be carried on U.S.-flagged vessels.

Last year the Obama administration granted waivers to the Jones Act for oil released from the reserve in response to the conflict in Libya. As a result, less than 1 percent of the oil released from the reserve was carried by U.S. tankers.

Larsen’s opening statement at the hearing is below. A webcast of the hearing is available here.

Rep. Rick Larsen Opening Statement
Ranking Member, Subcommittee on Coast Guard and Maritime Transportation

Mr. Chairman, thank you for convening this morning’s hearing to examine how best to uphold the integrity of the Jones Act when future shipments of oil are released from the Strategic Petroleum Reserve, or SPR.

The Jones Act exists for good reason. It sustains a vibrant and strong domestic maritime industry. It creates job opportunities for U.S. mariners. It underpins U.S. maritime defense policy.

As you know, the Ranking Democrat Member of the Full Committee, Congressman Nick Rahall, and I are both strong supporters of the Jones Act. On behalf of Mr. Rahall and I, I want you to know that we very much appreciate your quick action to schedule this morning’s hearing as we requested in our April 24 letter to you and Chairman Mica. Thank you.

Unfortunately, we missed such an opportunity to support the Jones Act last year. In response to oil shortages attributed to civil unrest in Libya, the President initiated in June 2011 a draw down from the SPR for only the third time in its history. Regrettably, and contrary to longstanding policy under the Jones Act, U.S. tankers carried less than 1 percent of oil from the SPR. Instead, the administration authorized 44 separate waivers of the coastwise laws to allow foreign tankers to transport this oil. The administration denied available U.S. carriers this valuable and vital business.

U.S. industry has available capacity to move U.S. strategic oil reserves on U.S. flagged ships, putting U.S. mariners to work. I don’t know of anyone on this committee who agreed with these controversial waivers, and Congress has responded accordingly to uphold the integrity of the Jones Act.

First, Congress passed language to prohibit the use of funds to issue future Jones Act waivers for SPR draw downs for the balance of this fiscal year until the administration has taken adequate steps to ensure the use of U.S.-flagged vessels.

Second, the House adopted an amendment offered by Congressman Cummings and Congressman Landry that strengthens information and notice requirements for any future Jones Act waivers.

These actions are warranted and helpful, but they are limited in their scope and duration.

Consequently, I have concluded that we need to look squarely at the waiver process itself to ensure that future SPR releases benefit both our domestic maritime industries and the overall U.S. economy. With this thought in mind, it is my intention this morning to not look backward, but forward.

No one is satisfied with the status quo. Clearly, we need a constructive dialogue on how best to release SPR reserves. Now is the time to begin that effort.

By working together with you Mr. Chairman, I contend that such a dialogue could produce a body of sensible, practical reforms to the waiver process; reforms that work for the U.S. economy, provide opportunities for our domestic maritime industries, and put U.S. seafarers to work.

Those are outcomes upon which we can agree, and I look forward to beginning that dialogue this morning.

The Jones Act exists for good reason. Let’s use it to good effect.