Biden Administration Announces Actions to Strengthen Maritime Security; Coast Guard Releases Cybersecurity NPRM. On February 21, Deputy National Security Advisor for Cyber and Emerging Technologies Anne Neuberger announced that President Biden has issued an Executive Order to bolster the Department of Homeland Security's authority to directly address maritime cyber threats. DNSA Neuberger observed that America's marine transportation system supports $5.4 trillion of annual economic activity, contributes to the employment of more than 31 million Americans, and supports nearly 95% of the cargo entering the U.S., and declared that "the security of that infrastructure, physically and digitally, is a national priority." The Executive Order authorizes the Coast Guard to establish minimum cybersecurity standards; require vessels, ports, and facilities to address cyber risks; institute mandatory reporting of cyber incidents; and control the movement of vessels that present cyber threats. In conjunction with the Executive Order, the Coast Guard is issuing a Maritime Security Directive on cyber risk management actions to operators of Chinese-built ship-to-shore cranes, and DNSA Neuberger announced that PACECO Corp., a U.S. subsidiary of the Japanese maritime engineering and construction company Mitsui E&S Group, is planning to onshore port crane manufacturing capability to take advantage of port infrastructure investments and grants created by the Bipartisan Infrastructure Law and Inflation Reduction Act.

 

Timed to the issuance of the Executive Order, the Coast Guard has published a Notice of Proposed Rulemaking that would establish minimum cybersecurity requirements for U.S. vessels and facilities regulated under the Maritime Transportation Security Act. The NPRM would require vessel and facility operators to conduct a Cybersecurity Assessment and develop and implement a Coast Guard-approved Cybersecurity Plan, which may be combined with an existing Vessel or Facility Security Plan. The Cybersecurity Plan would include personnel training, drills and exercises, account security measures, device security measures, data security measures, risk management, and supply chain management, among other things. The Coast Guard has also released Navigation and Vessel Inspection Circular 02-24, which expands reporting requirements for breaches of security and suspicious activity to include cyber incidents. The NVIC states that an actual or threatened cyber incident involving or endangering any vessel, harbor, port, or waterfront facility must be reported immediately to the Federal Bureau of Investigation, the Cyber and Infrastructure Security Agency, and the cognizant Coast Guard Captain of the Port, per the Executive Order.

 

AWO will be reviewing the NPRM and NVIC and will convene interested members to inform our comments to the Coast Guard, which are due April 22. If you or a colleague would like to participate, or if you need more information, please contact Liam Morcroft.

 

New Hampshire Anti-Jones Act Resolution Defeated. On February 15, the New Hampshire House of Representatives voted down an anti-Jones Act resolution by a vote of 165 ayes and 180 nays. Prior to the vote, AWO Director of State Advocacy Kyle Burleson testified before the House State-Federal Relations and Veterans Affairs committee, and AWO, the American Maritime Partnership, and organized labor worked to mobilize allies and share concerns with legislators.

 

Following the vote on the House floor, the bill was deemed "inexpedient to legislate" via voice vote, meaning that the bill is currently dead in the legislature. AWO remains vigilant in protecting the Jones Act in New Hampshire and in state legislatures throughout the country.

 

U.S. Reaches Record $9.5 million Settlement for Jones Act Violations. In 2017, U.S. Customs and Border Protection (CBP), which enforces the Jones Act, began investigating American Seafood Company for a potential violation of the Jones Act in transporting fish from Alaska to Maine. American Seafood Company and its affiliates used foreign-flag vessels to transport the fish from Alaska to eastern Canada, where the fish were loaded onto a 100-foot railway before being transported to Maine. The U.S. District Court of Alaska upheld CBP's determination that use of the Canadian railway was not actual transportation of merchandise and therefore did not exempt transportation of the fish from the Jones Act. After lengthy litigation, American Seafood Company and its affiliates recently agreed to dismantle the railroad scheme and pay $9.5 million. The settlement is the second-largest in history brought under the Jones Act and a positive sign of the U.S. government's determination to "protect fair maritime commerce" and send "...a clear signal that CBP will use its law enforcement powers to detect and deter schemes that are designed to circumvent laws -- such as the Jones Act."

 

AWO Urges Gov. Newsom to Delay Enforcing CARB Rule. In a February 22 letter, AWO President & CEO Jennifer Carpenter asked California Governor Gavin Newsom to delay deadlines or enforcement of the California Air Resources Board (CARB) Commercial Harbor Craft Rule due to safety issues and lack of the EPA-required authorization. Jennifer pointed out that technical experts have not approved diesel particulate filters (DPFs) for safe use in towing vessels and that CARB has failed to take into consideration the repeated concerns maritime and labor organizations have expressed about DPFs. AWO's message to Governor Newsom will be a central focus of the California state Barge-in on March 5-7 in Sacramento.

 

New MMC Printing Format Begins March 1. The Coast Guard recently announced that it will transition to a new printing format for Merchant Mariner Credentials (MMCs) on March 1. The new MMCs will be printed on a single synthetic, tear-resistant 8.5" x 11" paperstock that has significant security features to prevent counterfeiting and will allow the National Maritime Center (NMC) to retire its existing error-prone printers and move to commercial printers that are cheaper, faster, and simpler to repair or replace. The NMC has prepared an information pamphlet, available here, with additional details on the new MMC format.

 

Join AWO for State Barge-Ins. AWO has planned three State Barge-Ins and is looking for more members to attend! Beginning with the Pacific Region Annual Meeting, AWO will meet with legislators and regulators the morning of March 5, afternoon of March 6, and March 7. If you do business in California or are looking to, please join us to meet with policymakers to explain the harm that will be done by CARB's Commercial Harbor Craft Rule amendments and promote AB 1122, which will make important changes to the rule. Please bring mariners if you are able, as they can help share boots-on-deck perspective.

 

AWO then moves to Springfield, IL for meetings with legislators March 12-14, with a focus on educating lawmakers about the importance of the industry to Illinois, the damage done by overreaching legislation, and the importance of mariner safety with a special emphasis on the Brandon Road Project.

 

Finally, join us in Harrisburg, PA on March 25-27 to meet with members of the Pennsylvania legislature. We hope to educate a broad swath of lawmakers about the robust maritime industry on both sides of the state and the Jones Act's importance to economic prosperity, homeland defense, and national security as the state legislature considers an anti-Jones Act resolution.

 

If you operate in any of these states, please join us, and contact Kyle Burleson at kburleson@americanwaterways.com or (313) 407-8072 for more information.

 

Support the National Waterways Foundation. AWO routinely draws on the vital work of the National Waterways Foundation, a 501(c)(3) charitable organization that produces credible, thorough, and digestible research on the many contributions our inland waterways system provides to our nation. The NWF relies on voluntary contributions from friends of our industry. If you are interested in supporting its critical work, take a minute to review this request from Foundation Chairman Matt Woodruff and consider making a contribution to this important organization.

 

 

AWO PAC Corner

 

AWO PAC and Inside Elections. AWO PAC has partnered with Inside Elections for another special edition, including insights on the Maryland Senate race, analysis on notable House races in Pennsylvania and New York, and more.

 

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.

 

 

RIETF Members, Corps' MVD Commander Discuss Flood Control Project Safety Concerns. On February 12, industry members of the River Industry Executive Task Force and the Lower Mississippi River Committee hosted BG Kimberly Peeples, US Army Corps of Engineers Mississippi Valley Division Commander, and her senior staff onboard the m/v E. Bronson Ingram. Attendees raised safety concerns with the construction of the Delta Casting Field flood control project close to the Vicksburg Bridge, and BG Peeples committed to look into the project before proceeding with construction. AWO thanks Ingram Barge Company and the outstanding crew of the m/v E. Bronson Ingram for hosting this important high-level discussion.

 

Washington State Workforce Program Brings Together Maritime Leaders. Centerline Logistics' Kimberly Cartagena and Peter Schrappen, AWO's Vice President -- Pacific Region, attended Core Plus Maritime's annual update in mid-February, during which they heard from educators about potential partnership opportunities for the program. Core Plus Maritime is now in 26 schools and has 1,400 students enrolled. This groundbreaking two-year high school program educates students about maritime and other vocational skills. After finishing 1,080 hours, these students earn a certificate demonstrating their completion of these courses.

 

AWO Opposes Line-Handling Bill in Hawaii. Along with Centerline Logistics and Aloha Marine Lines (part of the Lynden family of companies), AWO Vice President -- Pacific Region Peter Schrappen submitted testimony against Senate Bill 2746 to the Hawaii Senate Committee on Ways and Means on February 22. The bill, introduced last year, would require unneeded steps to be taken when ship assist vessels tie up their mooring lines, an unnecessary expense that will be passed onto consumers and in turn raise the cost of living for Hawaiians. Currently in the Senate, the bill is opposed by a coalition including the Hawaii Shippers' Council and Par Hawaii.

 

AWO Partners with Marine Log for Tugs, Towboats and Barges Conference; Chairman to Keynote. AWO is excited to be the official association sponsor of Marine Log Magazine's Tugs, Towboats and Barges (TTB) 2024 Conference, taking place March 6-7 in Mobile, AL. This two-day event brings together tug and towboat owners, operators, builders, designers, and more for informative sessions and quality networking. AWO Chairman Rick Iuliucci, Vice President of the Vane Brothers Company, will be the keynote speaker and will discuss sustainability in the tugboat, towboat and barge industry. Learn more and register online.

 

Join Us for the Annual Regional Meetings. Thank you to all who joined us for the Combined Regions and Safety Meeting in New Orleans last week!

 

There is still time to attend an upcoming Annual Meeting. All AWO members are welcome to attend any of the meetings, regardless of geographic location or operational sector. Register on your Member Dashboard or on the AWO App. Contact Caitlin Clark with questions or if you need assistance.

 

AWO Spring Convention Registration is Open! Registration for AWO's Spring Convention and Barge-In is now open. Members can register to attend through the AWO Member Dashboard and reserve rooms at The Westin Washington - Downtown by clicking this link.

 

Please contact meetings@americanwaterways.com with any questions.