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Shipbuilders Council of America
20 F Street NW, Suite 500
Washington, DC 20001
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SCA Weekly Report | January 25 - 29, 2021
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SCA Winter Meeting Registration
The 2021 Virtual SCA Winter Membership Meeting will be held online on February 3-4, 2021. The meeting will feature 3 panels covering the topics of:
- New Vessel Construction
- Ship Repair
- Vessel Owner & Operator
This meeting is free for SCA members to attend.
SCA will hold Board and Committee Meetings on Wednesday, February 3, 2021, and the Winter Meeting General Session on Thursday, February 4, 2021.
A schedule of events can be found HERE.
- To register for the 2020 Virtual Winter Meeting General Session, CLICK HERE
- To register for the open session of the Industry Partners Committee Meeting, CLICK HERE
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2021 National Ship Repair Industry Conference (NSRIC) Registration Now Open
Registration for the 2021 National Ship Repair Industry Conference (NSRIC) is now open. NSRIC 2021 will take place virtually on 23 March 2021 from 1300-1600 EST.
Due to the pandemic, the in person portion of NSRIC will be deferred to 2022. However, we will continue with the NSRIC tradition of having senior Navy, Coast Guard and MSC leadership speak to the companies that make up the Ship Repair Industrial Base.
Invited Speakers include:
- CNO, Admiral Gilday
- VCNO, Admiral Lescher
- VADM Galinis
- VADM Kitchener
- RADM Moton
- RADM Wettlauffer
- RADM Boubolis, USCG
- RDML Ver Hage
This event is free to attend for SCA and SRA members.
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Biden Signs Executive Order on ‘Buy American’
Earlier this week, President Joe Biden signed an executive order that aims to boost government purchases from U.S. manufacturers, according to administration officials. The United States has shed roughly 540,000 factory jobs since last February as the coronavirus pandemic hurled the world’s largest economy into recession.
Biden‘s order would modify the rules for the Buy American program, making it harder for contractors to qualify for a waiver and sell foreign-made goods to federal agencies. It also changes rules so that more of a manufactured good’s components must originate from U.S. factories. American-made goods would also be protected by an increase in the government’s threshold and price preferences, the difference in price over which the government can buy a foreign product.
View the entire Executive Order HERE.
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HASC Announces New Members for 117th Congress
The House Armed Services Committee (HASC) will formally organize next week to begin committee work for the 117th Congress. Chairman Adam Smith (D-WA) shared the slate of Democratic Committee members this week as did new Ranking Member Mike Rogers (R-AL) for Republican Members; subcommittee structures, subcommittee membership, subcommittee leadership, power-sharing rules, and other highly relevant details about these committees will continue to emerge in the coming weeks. New members of the committee include Joseph Morelle (D-NY), Kai Kahele (D-HI) and Sara Jacobs (D-CA), Mike Johnson (R-LA), Mark Green (R-TN), Stephanie Bice (R-OK), Scott Franklin (R-FL), Lisa McClain (R-MI), Ronny Jackson (R-TX), Jerry Carl (R-AL), Blake Moore (R-UT) and Pat Fallon (R-TX).
McCollum Named House Defense Appropriations Chair
Rep. Betty McCollum (D-MN) has been named the new chairwoman of the House Appropriations defense subcommittee. McCollum succeeds Rep. Peter Visclosky (D-IN), who retired. Rep. Kay Granger (R-TX) will continue to be the subcommittee’s ranking Republican.
Buttigieg Approved by Senate Commerce Committee
The Senate Commerce Committee advanced President Biden’s pick to lead the Transportation Department, Pete Buttigieg, by a 21-3 vote earlier this week. The vote advances the nomination of the former mayor of South Bend, Indiana for a full Senate vote. Republicans Ted Cruz (TX), Marsha Blackburn (TN) and Rick Scott (FL) voted against the nominee; the full Senate vote has not yet been scheduled.
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Pentagon Working Toward New Budget Under Austin
Defense Secretary Lloyd Austin is reviewing the fiscal year 2022 budget, evaluating work the Trump administration left behind, so a request can be ready to submit to Congress in the next three months.
"The secretary knows that budget deadlines are coming and they're coming soon," Pentagon Press Secretary John Kirby said this week..
Traditionally, the federal budget is due to Congress by the first week of February, but that deadline is typically missed during presidential transitions. Analysts and congressional aides say the FY-22 request could be submitted to lawmakers sometime in April. Analysts expect a partisan debate over the defense budget topline, which the Trump administration projected would be about $759 billion in FY-22, about 2.5% more than FY-21. Some Republicans, like Sen. Jim Inhofe (R-OK), the top GOP member of the Senate Armed Services Committee, have been pushing the Biden administration to commit to a defense increase of 3% to 5% above inflation. But Biden administration officials, including Austin, have said they expect flat defense spending in the coming years.
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Biden Backs the Jones Act in a New Executive Order
On Monday, January 25, Biden signed an executive order on strengthening American manufacturing which is aimed at delivering economic relief to the U.S. economy. The executive action also strongly supports the Jones Act, which requires goods shipped between U.S. ports to be transported on ships that are built, owned, and operated by United States citizens or permanent residents.
A press release put out by the White House said:
[The EO] “Reiterates the President’s strong support for the Jones Act. The President will continue to be a strong advocate for the Jones Act and its mandate that only U.S.-flag vessels carry cargo between U.S. ports, which supports American production and America’s workers. With the signing of the 2021 National Defense Authorization Act, the Jones Act has also been affirmed as an opportunity to invest in America’s workers as we build offshore renewable energy, in line with the President’s goals to build our clean energy future here in America.”
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Biden’s Oil and Gas Drilling Ban May End Offshore Gulf of Mexico Work
Should the oil and gas drill halt announced Wednesday become permanent, the U.S. would stand to lose as much as 200,000 barrels of oil a day of output by the end of this decade, according to Rystad Energy. In addition, the move is expected to put thousands of Americans out of a job.
Biden Calls to Double Offshore Wind by 2030; Vineyard Wind Seeks Permit Restart
The Biden administration is aiming to accelerate development of offshore wind energy, with a new goal to double planned renewable energy production at sea by 2030.
“The department will immediately begin a review of processes and procedures to date as it reinvests in a rigorous renewable energy program,” according to a statement issued Wednesday as part of President Biden’s latest round of executive orders. The January 27 announcements on energy policy came two days after developers of the Vineyard Wind project off southern New England announced that they are approaching the Bureau of Ocean Energy Management about resuming the permitting process for the 800-megawatt turbine array.
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Metal Shark to Provide Autonomous Vessel System to the Marines
Louisiana-based shipbuilder, Metal Shark, has been contracted to develop and implement the Long Range Unmanned Surface Vessel (LRUSV) System for the U.S. Marine Corps. The LRUSV System will usher in a new era of naval technology while increasing the lethality of U.S. forces, with a network of unmanned vessels traveling autonomously for extended ranges and transporting loitering munitions to address targets at sea and on land. Under an agreement with Marine Corps Systems Command, Metal Shark will design, build, test, and implement the vessels and will handle the integration of the autonomy system and an advanced command and control (C2) software suite.
ABS to Class First-Ever Jones Act SOV
The American Bureau of Shipping (ABS) will class the first U.S.-flagged Jones Act service operation vessel (SOV). The SOV will be engineered, constructed, and operated by Edison Chouest Offshore (ECO) for long-term charter to service the Revolution Wind, South Fork Wind, and Sunrise Wind offshore wind farms in the northeast U.S. The SOV will operate from New York and will be used during the O&M phases of the wind farms, serving as an at-sea base of operations to accommodate and transfer technicians, tools, and parts to and from the individual turbines.
Salvors Begin Third Cut Through the Hull of the Golden Ray
On Wednesday, salvors began the third cut through the hull of the grounded ro/ro, Golden Ray, in St. Simons Sound, Georgia. The plan calls for separating the ship into eight sections, using a heavy stud-link anchor chain to cut transversely through the vessel and its automotive cargo. The third cut will pass through the vessel's engine room and may have a heightened risk of petroleum release. In a months-long effort before the operation, the salvage team installed an environmental protection barrier around the work site to contain as much oil and debris from the vessel as possible. A small flotilla of chartered spill response boats are on hand to clean up oil within the barrier and any that might escape.
Saga Becomes First Cruise Line to Require COVID-19 Vaccinations
The UK travel company, Saga Cruises, has become the first cruise line to announce that it is requiring all passengers to be vaccinated for COVID-19 to sail on its cruise ships. While there have been rumors that the cruise industry might require vaccinations, Saga’s announcement makes them the first of the ocean-going cruise lines to establish the policy. As part of the new program, guests must have received their full two doses of the COVID-19 vaccination at least 14 days before traveling. Saga also is telling all passengers that they will be required to bring the vaccination document and/or evidence with proof of vaccination at the time of boarding. No exceptions will be granted.
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If you have any questions, please do not hesitate to contact Paula Zorensky on the SCA staff.
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