REMARKS AS PREPARED BY

MARITIME ADMINISTRATOR REAR ADM. (RET) ANN PHILLIPS

AT Offshore Marine Service Association (OMSA) Spring Conference 

WASHINGTON, DC

OPENING 

Good afternoon! Thank you for having me here today.  

On behalf of the Biden-Harris Administration and Transportation Secretary Pete Buttigieg, I am honored to join my first Offshore Marine Service Association (OMSA) Spring Conference! 

Thank you to OMSA’s Board of Directors, members, staff, and in particular CEO and President, Aaron Smith for inviting me to join you today.   

As we begin, I want to take a few moments to talk about some of the many MARAD initiatives underway, including those of particular interest to you.  

The Maritime Administration (MARAD)’s mission is to foster, promote, and develop the maritime industry of the United States to meet the nation’s economic and security needs.   

At MARAD, our team is meeting what are truly historic moments in our nation’s maritime history.   

To mention a few, we are administering the historic investments in our nation’s ports and waterways made possible by the President’s Bipartisan Infrastructure Law.   

Last year, we were able to award more than $700 million in Port Infrastructure Development Grants to 41 projects in 22 states and one territory.   

More than 60% of the PIDP awards made in 2022 benefit ports in historically disadvantaged communities. And more than $150 million in the funding awarded last year focuses on port electrification to improve air quality. 

We are also recapitalizing our Ready Reserve Force even as we maintain the aging fleet we currently own.   

And we are also working to support the Jones Act fleet, offshore wind developments, and owners and operators of United States-flag vessels.  

All of this is done by 835 staff – split 1/3 at DOT HQ, 1/3 at USMMA, and 1/3 at our Fleet Support sites and Ports and Waterways Gateway Directors.  

JONES ACT 

Let me talk in more detail about the Jones Act. 

This Administration is unwavering in its support of the Jones Act.  The Jones Act is the cornerstone of our domestic maritime industry and is essential to maintaining national security by ensuring sealift capability.  It also supports well-paying union jobs. 

As you know, the Fiscal Year 2023 National Defense Authority Act—the NDAA—made numerous changes to the Jones Act waiver process. 

Specifically, it requires the President—rather than the Department of Homeland Security—to make determinations regarding whether a waiver is in the interest of national defense. 

It requires DHS to publish waiver requests when they are received and prohibits the issuance of waivers until 48 hours have elapsed after the publication of a waiver request. 

It also prohibits MARAD from conducting any retroactive surveys to determine the availability of Jones Act-qualified vessels for which the transportation is sought and it prohibits the issuance of waivers for cargoes that are already laden. 

Taken as a whole, the FY23 NDAA changes make clear that waiver requests are to be considered on a case-by-case basis—as we have done throughout this Administration. 

This Administration will comply with these requirements whenever a waiver request is received—and I can assure you we will continue to enforce the Jones Act in accordance with Federal law. 

OFFSHORE WIND 

Let me now turn to the investments made possible by the President’s Bipartisan Infrastructure Law that are helping us expand our renewable energy capabilities, to include offshore wind.  

The Biden-Harris Administration is committed to reaching 30 gigawatts of offshore wind energy by the year 2030.  

The Maritime Administration is supporting this effort in several ways. 

First, port projects that support offshore wind developments are eligible for funding under the Port Infrastructure Development Program. 

In fact, last year, nearly $100 million of the PIDP awards we made last year will support projects that will advance offshore wind farm development.  

Project Examples 

Some examples of our PIDP projects include the Virginia Port Authority which received a $20 million PIDP grant in 2021 for its offshore wind development project. This will enable the port to serve as a staging area for offshore wind projects. The project creates a wind turbine generator staging area in the uplands adjacent to one of the wharves and a second storage area where monopiles and other project components will be stored. The staging and storage areas require installation of piles to increase the load‐bearing capacity of the site, new pavement to support the heavy components that will be imported thru the facility, stormwater and drainage infrastructure improvements, and site utility work.  

And within the Gulf, the Twin Parish Port District received a $2 million PIDP 2021 grant.  This project includes a dock restoration project and investments required to establish an industrial fabrication facility at the port. Project components include dock refurbishment, debris removal, port slip improvements, and the construction of several new buildings. 

Additionally, Morgan City Harbor and Terminal District received a $10 million PIDP grant in 2022. The funds will be used to expand the Port of Morgan City's dock by adding approximately 1.6 acres of concrete laydown area and building an additional 8,880‐square‐foot wharf‐relieving platform structure to support a 440’ x 40’ wharf extension. 

The Project complements “Phase 3A” that was funded by the port and the State of Louisiana and completes all phases of the port’s “Western Dock Expansion” project. 

CAPITAL CONSTRUCTION FUND (CCF) 

Next, I’d like to discuss the Capital Construction Fund (CCF) program. 

The CCF was created to help owners and operators of United States-flag vessels secure the capital necessary to modernize and expand the U.S. merchant marine.  

The program encourages construction, reconstruction, or acquisition of vessels through the deferment of Federal income taxes on certain deposits of money or other property placed into a CCF.  

Of course, participants must meet U.S. citizenship requirements. 

The Fiscal Year 2023 NDAA expanded use of the CCF program to all U.S.-built, U.S.-flag commercial operations, allowing many more shipowners to accumulate tax-sheltered funds for fleet expansions, replacements, and upgrades. 

Prior to this, funds deposited into a CCF could only be used to construct, reconstruct or pay down debt on vessels operated in the noncontiguous domestic or foreign trades as well as the Great Lakes, Alaska and Hawaii.  

Now, the program is open to all domestic commercial owners, regardless of area of operation. 

The program currently has over 110 American fundholders, including seven that have been approved in 2024, making use of the recently expanded authority. 

The CCF allows private shipowners to better deploy their own profits into new or improved vessels, putting work into American shipyards and stimulating our economy. 

There has been a great deal of interest in the CCF program as a result of the legislative change, with over a dozen new applications filed and several dozen additional companies considering applying. 

Please check-out MARAD’s website for more information and details about the CCF program. Contact information is also listed for our Associate Administrator for Business and Finance Development, Dave Heller who oversees the program.   

CLOSING 

MARAD is singularly focused on strengthening our merchant marine—and once again, thank you for the opportunity to join you here and thank you for the critical discussions you are leading! And I’m pleased to answer any questions you may have! 

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