Noncontiguous Energy Relief and Access Act of 2025
- Sponsor
- Rep. Torres, Ritchie [D-NY-15]
- Committees
- Transportation and Infrastructure Committee (primary)
- Last action
- May 1, 2025
Bottom line
The bill aims to reduce energy costs and enhance energy security for noncontiguous U.S. states and territories by allowing foreign-flagged vessels to transport energy products to and from these regions.
What it actually does
This bill amends title 46, United States Code, to create an exemption to the coastwise laws (commonly known as the Jones Act) for the transportation of 'energy products' in 'covered noncontiguous trade.' This means that vessels not built, owned, and crewed by U.S. citizens would be permitted to transport energy products between the contiguous 48 States and Alaska, Hawaii, Guam, or Puerto Rico, or between any of these noncontiguous areas.
Proponents argue
Proponents argue that the Jones Act significantly increases the cost of transporting goods, especially energy products, to noncontiguous U.S. states and territories due to the limited availability and higher operating costs of U.S.-flagged vessels. They contend that this exemption would lower energy prices for residents and businesses in Alaska, Hawaii, Guam, and Puerto Rico, improving their economic competitiveness and energy independence.
Opponents contend
Opponents typically argue that exemptions to the Jones Act undermine its core purpose of maintaining a robust U.S. merchant marine, which is vital for national security and economic stability. They contend that allowing foreign vessels to transport energy products would lead to job losses for American mariners and shipbuilders, weaken the domestic shipping industry, and potentially compromise national defense readiness by reducing the pool of U.S.-flagged vessels and trained crews available in times of crisis.
The bill text is very short and straightforward, making it highly accessible for a reader to understand its core provisions quickly.
Section 2, amending 46 U.S.C. 55102
Exemption for Energy Products in Covered Noncontiguous Trade
This provision establishes a new exemption to the Jones Act, which generally requires that goods transported between U.S. ports must be carried on vessels built, owned, and crewed by U.S. citizens. Specifically, it allows any vessel, regardless of its flag or ownership, to transport 'energy products' in 'covered noncontiguous trade.' This trade includes shipping between the contiguous 48 states and Alaska, Hawaii, Guam, or Puerto Rico, or between any two of these noncontiguous areas. The bill defines 'energy products' broadly to include equipment, components, and energy sources for electricity generation, storage, transmission, and distribution, including liquefied natural gas and petroleum products.
Supporters argue
Supporters argue that this specific exemption is a targeted solution to address the unique economic challenges faced by noncontiguous U.S. regions. They contend that the current Jones Act restrictions disproportionately burden these areas with higher energy costs, and that this bill provides necessary relief without broadly undermining the entire act. They highlight the importance of energy security and affordability for these isolated communities.
Critics contend
Critics of Jones Act exemptions argue that even targeted carve-outs set a dangerous precedent and incrementally weaken the overall policy. They assert that the economic benefits for noncontiguous areas are often overstated and come at the expense of national security and the domestic maritime industrial base. They argue that any perceived cost savings are outweighed by the long-term strategic costs of diminishing U.S. shipping capacity.
Tradeoffs
The provision navigates the tension between providing economic relief and energy security for isolated U.S. regions and maintaining the protectionist goals of the Jones Act, which aims to support the domestic maritime industry for economic and national security reasons. It balances the immediate cost benefits for consumers against the potential long-term impacts on U.S. shipbuilding and maritime employment.