Nome is Waiting On Jones Act Waiver

I am finding myself getting "sucked in" to another political article. I find it unavoidable this time. I apologize to all of the people on the Left and Right that I may offend.

Several weeks ago, the Congress and the Senate unanimously passed the America's Cup Act of 2011 in order to allow the America's Cup World Series (ACWS) Event to take place in San Diego. (See our blog entry from 06 November 2011) from The noteworthy aspect of this was that Congress provided, essentially, a Jones Act Waiver to host the ACWS event in under 10 days. Nome has been trying to solve their Winter/Spring fuel problem for over a month now.

I find it interesting that our elected congressional officials were the "only ones" who could preserve the America's Cup event enabling jobs, an economic boost for San Diego and San Francisco. They did this in 10 days, yet a small town in Alaska can wait for a month to find out if they will freeze in February. I see that congress is very concerned with the welfare of all Americans. 10 days to pass a waiver that will create nearly 8000 jobs is impressive until you contrast it with the heating fuel and gasoline that will keep 5000 people warm during the coldest part of the year.

The point of this being, the America's Cup Act was completely and entirely one politician's PR stunt to put a feather in her cap for her (and her party's) re-election hopes. It was unnecessary, because the America's Cup Authority could have gotten the Jones Act Exemption the same way Nome, Alaska is getting it. Now, for every expedited exemption to the Jones Act gets to be run through Congress, which will continue to punch holes in a law that has been around since 1925.

For now, Nome, Alaska's well being (financial and otherwise), according to congress' inaction has been told its citizens are not as important as San Diego's.


The following is an Broadcast from Alaska Public Radio:

By Ben Matheson, KNOM - Nome | December 29, 2011 - 5:51 pm

Vitus Marine, the company contracted to help get fuel delivered to Nome, is hoping to hear back Friday on the status of the Jones Act waiver for the Russian tanker Renda. The waiver is necessary for the tanker to be able to load gasoline in Dutch Harbor. Mark Smith, CEO of Vitus Marine says the Defense Department and Maritime Administration have weighed in to Customs and Border Protection, who ultimately makes the decision. The waiver claims that Nome’s fuel is of indirect significance to national security. Alaska’s congressional delegation has sent a letter urging the government to approve the waiver.
Meanwhile, the tanker is headed towards port. Smith says the Renda was 340 miles southwest of Attu this morning. It’s expected to be in Dutch Harbor by the afternoon of Jan. 2.
Several question remain on the final routing and offloading of the fuel, but the regulatory pieces are starting to come together. On Tuesday, Vitus submitted its delivery plans to be approved by the state, filing an amendment to its oil discharge prevention and contingency plan to incorporate the cold weather considerations. The vessel support plan is unique as ice-capable tugs and spare barges will not be on hand – instead the Healy will assist, and land based tanks will provide space in the case of an emergency. The Renda itself is ice capable, but the state Department of Environmental Conservation is requiring the Healy’s participation.
The plan calls for the staging of skimmers, thousands of feet of boom, pumps, sorbent pads, tank trucks, and a bobcat. Vitus has contracted with the Chadux corporation to have spill response equipment on hand. There will be a spare 610,000 gallon tank available for emergency use even after the fuel is transferred.
John Kotula is the Manager of the Marine Vessels section for the Department of Environmental Conservation. He says the agency now is making sure that the plans and resources will be ready.
Additional logistics plans are in place for lighting and monitoring the transfer hose if it goes across the ice. The Renda will have extra environmental protection on board, plus three extra officers for a crew of 21. The document says Crowley has agreed to lend equipment in Nome should it be needed. And in addition to the Healy, the plan calls for the Coast Guard to supply a helicopter on shore, with C-130 support overhead, plus specialty personnel. Kotula says the state is in communication with private industry and government groups to make sure the pieces come together in the plan.
Vitus CEO Mark Smith says he’s confident in the plan. He says it’s based in part on what happens on the North Slope on a regular basis. The oil spill response plan is out for public review until Jan. 3.

Kiwis claim Port Cities Challenge

Posted on 13 November 2011

From America's Cup News:

Ideal racing conditions returned to San Diego on Sunday, with 6-10 knot westerlies and bright sunny skies. Crowds poured into the America’s Cup Village to watch the racing which at time brought the boats just a few yards from the viewing points along Broadway and Navy Piers.

Emirates Team New Zealand may have been the last crew to arrive in town on Friday and skipper Dean Barker had never sailed in San Diego ahead of Saturday’s first race,. But his team didn’t miss a beat, winning the Port Cities Challenge on this opening, preliminary weekend of the America’s Cup World Series.

On Saturday, China Team won a race for the first time at AC World Series, and on Sunday it was the turn of the French teams. First it was Aleph with new skipper Pierre Pennec at the helm, who took a win in race four. But not to be outdone, Energy Team sailed a flawless race six with skipper Yann Guichard to claim their first win.

Representatives of the five Port Cities were on board the race boats during the first contest of the day, with Coast Guard Commander Guerrero winning bragging rights on board ORACLE Racing Spithill, who raced to a second place finish, ahead of the other Port Cities boats.

“It was awesome, just great,” said Commander Guerrero representing Chula Vista. “The boats are phenomenal, and to go that fast, it's amazing. We hear a lot about the technology that's behind these boats, and now I can say I've seen it in action.

America's Cup Act of 2011 has passed! Now what?

While it is commendable that the Senate and House passed the America's Cup Act of 2011, I still question the need for the bill. This created a loophole in the Jones Act of 1920 and sets a precedent for every on the water sporting event to be held in the future. It will effect any boat race, power or sail, held in U.S. Waters. The America's Cup World Series Events and the America's Cup Challenge are very big events. The question now is, are they going to write new bills into law for the small events held in Florida, California, Washington and New England that draw international teams? 

Here is the Press Release from the America's Cup Race Authority:

America’s Cup Event Authority today issued the following statement on the America’s Cup Act of 2011:

Saturday, 05 November 2011

“We applaud the members of the U.S. Senate and U.S. House of Representatives who voted overwhelmingly in support of the America’s Cup Act of 2011,” said Craig Thompson, Chief Executive Officer, America’s Cup Event Authority. “This Act enables our international field of America’s Cup teams to participate in the only global sporting event currently committed to come to the United States in the next decade.”

The upcoming America’s Cup events in Newport, Rhode Island, San Francisco and San Diego, California are predicted to create thousands of jobs and over $1 billion in economic impact over the next two years. For the first time in history, the America’s Cup will be able to be seen from shore, creating tremendous public access for spectators as well as drawing large spectator crowds to benefit the port cities hosting America’s Cup events.

“We are very proud that our host cities of San Diego, San Francisco, and Newport, Rhode Island will benefit greatly from hosting America’s Cup events,” said Thompson. “We are working closely with the cities of San Diego, San Francisco, and Newport, Rhode Island to maximize this economic impact.”

Third party sources estimate a $20-million economic impact to San Diego from the event to be staged November 12-20, 2011, with an estimated $72-million economic benefit to Newport, Rhode Island, which will be held in June 2012.  Additionally, the America’s Cup is predicted to deliver an estimated over $1 billion economic impact to the San Francisco Bay area, with more than 8,500 jobs that will be created due to the America’s Cup.

The 34th America’s Cup is the oldest trophy in modern sport and continues to build upon its rich heritage of leading-edge innovation with an event that is designed to showcase the best sailors in the world on the fastest boats.

Is the America's Cup in Jeopardy?

San FranciscoBusiness Times reporter Eric Young reported October 27th, 2011 that U.S. Senator Dianne Feinstein (D-CA) introduced a bill to the Senate on 20 October 2011 to facilitate the America's Cup Match to occur in San Francisco in 2013. Senate bill 1759 basically saves the America's Cup from the prohibitive rules outlined in the Jones Act of 1920. Commendable for her to do this I think, considering it will be a huge windfall for the City of San Francisco and the State of California. This is an example of a Senator doing the right thing to help out her constituency. There is only one question I have, which by the way is intended to be very cynical. Why was the Jones Act not a problem from 1920 thru 1995, when the Americas Cup was hosted in United States Waters?

 I have read the Bills, S.1759 and H.R.3270 (the House of Representatives nearly identical version), and they seem rather harmless in the grand scheme of things. They are very limited in focus, and effect primarily support vessels for the event. I also re-read every piece of the Jones Act I could think of that might affect the event, and I don’t believe the bills are necessary. Primarily because the waiver authority for Jones Act regulation  already resides with several government agencies. 

They were read twice in their respective forums and will be up for discussion and the a vote. This is government efficiency, right? (Warning, I'm going to get cynical again.)So, my first question stands, why wasn't this a problem from 1920 thru 1995? The next question is, are we going to hear anything about this as it progresses? Answer: Probably not. Why do we care now. Let me think … oh yeah, its an election year next year. This would be a harmless feather in the cap of the good Senator on how her bill saved the America's Cup Event in San Francisco. A more sinister answer could be that since this is an "under the radar" bill (Her office didn't even issue a press release about it), how easy would it be to tack something more meaningful onto it?  I hope this is not the case.

Now, Senator Feinstein has done many things and has many accomplishments. Some of them I actually agree with and some of them (I believe) did more harm than good. I believe that she is doing what she feels is in the best interest of her constituency as well as our country (No I don’t think she's evil), however, I question the need for this Bill now, when the only thing it really threatens immediately is the San Diego America's Cup World Series Match beginning November 12th.

Introduction of this now will not only create panic for the organizers of the America's Cup and the World Series events, but it will open the door for a lot of confusion regarding the Jones Act, which has done pretty well for us since 1920.

Lets leave this fine event and its coverage to the Port Authority of San Francisco, the US Coast Guard, Immigrations  and Customs Enforcement (ICE), and the governing body of the America's Cup Event.  I for one think that this should remain a sporting event with a long and distinguished history dating back to 1851, before it became the America's Cup.

In August of 1851, a Schooner christened America raced against 15 other yachts in a 53 nautical mile regatta around the Isle of Wight. She finished 8 minutes ahead of the nearest rival. This is when its said Queen Victoria asked who was second and someone replied to her,"Ah, Your Majesty, there is no second."

Since 1857, the America's  Cup (newly renamed) has been a perpetual challenge trophy via Deed of Gift of the Americas Cup to the New York Yacht Club.

Politics were not involved in 1851, and should not be involved now. It’s a stretch (at the least) to say the Jones Act will interfere with the upcoming events and our politicians have more to worry about than a yacht race in San Diego or San Francisco.