By Stefanos Roulakis
U.S. CBP issued a ruling to Scholasticus Law’s Stefanos Roulakis, working in concert with the inestimable Jonathan K. Waldron and Vanessa C. DiDomenico of Blank Rome LLP. The decision issued by CBP provides needed clarity to the U.S. offshore wind sector to allow projects to proceed in compliance with the Jones Act. The ruling was notable not only for the decision itself—which confirmed that many activities could be accomplished in compliance with the Jones Act—but also for the breadth and depth of analysis provided by CBP on the topic. Of note, the ruling was 17 pages long and contained 49 citations, both of which are unusual for CBP Jones Act rulings.
The first issue involved a crane on a non-coastwise-approved vessel moving a boulder to a different spot on the seafloor using a twisting motion. While CBP noted that the boulder would count as merchandise under the Jones Act, the movement of the boulder was not “transportation” and thus not subject to the Jones Act. CBP determined that the crane moved the boulder while the vessel would be stationary, meaning that the boulder was not transported. Thus, CBP confirmed crane work for offshore wind production does not fall into the purview of the Jones Act as long as the vessel remains stationary.
Another issue was whether a non-coastwise qualified vessel could transport and lay cable. CBP approved the operation provided that the vessel carrying the cable also installs it. CBP clarified that the transportation of cable by another vessel that is not the installation vessel could lead to a violation.
Of note, CBP clarified that the installation of temporary cable hang-offs require a coastwise-qualified vessel for transportation. The key distinction between the temporary cable hang-offs and other equipment is the fact that the temporary cable hang-offs do not remain on board when they return to/ port, therefore they are considered merchandise as opposed to vessel equipment. Additionally, they are not “paid out” with the cable. As a result, a coastwise vessel is needed to transport the temporary cable hang-offs from a U.S. port to the installation site.
With this decision, CBP provided needed clarity to the offshore wind community as well as to vessel owners and operators seeking to provide services in the offshore wind space.