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Coastwise Transportation; Outer Continental Shelf; Wind Turbines; 46 U.S.C. §§ 55102 and 55103; 19 CFR §§ 4.80a and 4.80b; 43 U.S.C. § 1333.
H345321 March 21, 2025 OT:RR:BSTC:CCR H345321 HKC CATEGORY: Carriers Constantine G. Papavizas, Esq. Winston & Strawn LLP 1901 L Street, N.W. Washington, DC 20036 RE: Coastwise Transportation; Outer Continental Shelf; Wind Turbines; 46 U.S.C. §§ 55102 and 55103; 19 CFR §§ 4.80a and 4.80b; 43 U.S.C. § 1333. Dear Mr. Papavizas, This letter is in response to your February 21, 2025 ruling request on behalf of your client [ ] regarding whether the installation and removal of wind turbine blades at existing wind turbine generator locations by a non-coastwise-qualified vessel on the U.S. outer continental shelf (“OCS”), as described below, would violate the coastwise laws.1 Our decision follows. FACTS The following facts are from your correspondence.2 February 21, 2025 ruling request and subsequent Your client proposes to remove existing turbine blades, and install new turbine 1 You have asked this office for confidential treatment of bracketed information. CBP Regulations at 19 C.F.R. § 177.2(b)(7) provide that the requester of a ruling from our office may ask that privileged or confidential commercial or financial information supplied for purposes of preparing the requested ruling not be disclosed. Such requests will be considered if the information is clearly identified and the reasons for requesting that information not be disclosed are provided. If this office receives a Freedom of Information Act request for your submission, Regulations at 6 C.F.R. § 5.12, et seq. regarding the disclosure of business information provide that the submitter of business information will be advised of receipt of a request for such information whenever the business submitter has in good faith designated the information as commercially or financially sensitive information. We accept your request for confidential treatment as a good faith request. 2 Re: Request for Immediate Consideration of a Ruling Request Regarding Interpretation of the Jones Act and Related Laws, dated February 21, 2025; Email, RE: [ ] Follow On Questions, dated March 6, 2025. 1 blades, at a site consisting of approximately [ ] wind turbine generators (“WTG”) developed by [ ]. The project site is located in federal waters approximately [ ] off the coast of [ ], and was developed pursuant to a lease by the U.S. Bureau of Ocean Energy Management [ ]. Your client proposes to utilize the non-coastwise qualified vessel [ ], registered in [ ] and constructed in [ ] to perform the work. The vessel will begin in a European port with all wind turbine generator equipment necessary to conduct the blade replacements, except for a specialized gangway, loaded aboard the vessel. The vessel will then cross the Atlantic and perform vessel entry at a U.S. port located close to the [ ] offshore wind farm. While docked at the U.S. port, a specialized gangway will be installed on the vessel permitting it to access the WTGs. Project installation personnel will board the vessel at this U.S. port, or alternatively by helicopter once the vessel is offshore. Upon arriving at the first WTG, the vessel will jack down to the seabed adjacent to the WTG. Next, project installation personnel will utilize the specialized gangway to access the WTG along with personal protective equipment and work equipment. Once the three WTG blades have been removed they will be loaded onto the vessel along with nuts, bolts, electrical connectors, and other component parts (“Component Parts”) associated with the removed blades. The vessel will then repeat this sequence of operations at four more WTGs, until a total of 15 removed blades have been laden aboard the vessel along with their Component Parts. The vessel will then sail directly from the [ ] offshore wind farm to [ ], Canada, where the 15 decommissioned blades and their Component Parts will be unladed. The vessel will then load 15 new replacement blades prior to departing [ ]. With regards to the Component Parts for the new replacement blades, some will be loaded in the European mobilization port, while others will be loaded along with the new replacement blades in [ ]. The vessel will then return to the [ ] offshore wind farm to install three new blades at each of the five WTGs where it had previously removed blades. The vessel will jack down at each site, while project installation personnel are placed onto the tower along with their personal protective equipment, work equipment, and the blades/Component parts. Once the blades and component parts have been installed, the project installation personnel will return to the vessel with the personal protective equipment and work equipment. The vessel will then proceed to uninstall 15 more WTG blades, offload them at [ ], Canada, take on 15 more blades for installation, etc. repeating the process until all [ ] WTGs located at the [ ] offshore wind farm have had their blades replaced. In between WTG sites, the project installation personnel will perform functions on board the vessel to include equipment checks, training, and filling out pre- and post-action reports. Once the last set of WTG blades has been installed, the vessel will depart the [ ] WTG site. The vessel will deposit the project installation personnel at a U.S. port or [ ] and return to Europe. The specialized gangway will remain aboard the vessel permanently. ISSUES 2 1. Whether the transportation of WTG blades and replacement blades, Component Parts, and installation equipment, as described above, by a non-coastwise vessel violates the Jones Act, 46 U.S.C. § 55102? 2. Whether the transportation of the project installation personnel between coastwise points by the non-coastwise-qualified vessel violates the Passenger Vessel Services Act, 46 U.S.C. § 55103? LAW AND ANALYSIS Issue One: Whether the transportation of WTG blades and replacement blades, Component Parts, and installation equipment, as described above, by a non-coastwise vessel violates the Jones Act, 46 U.S.C. § 55102? The coastwise law applicable to the transportation of merchandise, known as the Jones Act, is found at 46 U.S.C. § 55102,3 and provides in pertinent part: Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not provide any part of the transportation of merchandise by water, or by land and water, between points in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel— (1) is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and (2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. The coastwise laws generally apply to points in the territorial sea, which is defined as the belt, three nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline. 33 CFR § 2.22(a)(2). In addition, Section 4(a)(1) of the Outer Continental Shelf Lands Act of 1953 (“OCSLA”), as amended by The William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, H.R. 6395, 116th Cong. § 9503 (2021), provides that the Constitution and laws and civil and political jurisdiction of the United States are extended to: (i) the subsoil and seabed of the outer Continental Shelf; (ii) all artificial islands on the outer Continental Shelf; (iii) installations and other devices permanently or temporarily attached to the seabed, which may be erected thereon for the purpose of exploring for, developing, or producing resources, including non-mineral energy resources; or 3 Formerly 46 U.S.C. App. § 883. See Pub. L. 109-304 (Oct. 6, 2006). 3 (iv) any such installation or other device (other than a ship or vessel) for the purpose of transporting or transmitting such resources.4 (emphasis added). Accordingly, the OCSLA, as amended in 2021, extends U.S. jurisdiction to devices
Issue One: Whether the transportation of WTG blades and replacement blades, Component Parts, and installation equipment, as described above, by a non-coastwise vessel violates the Jones Act, 46 U.S.C. § 55102? The coastwise law applicable to the transportation of merchandise, known as the Jones Act, is found at 46 U.S.C. § 55102,3 and provides in pertinent part: Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not provide any part of the transportation of merchandise by water, or by land and water, between points in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel— (1) is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and (2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. The coastwise laws generally apply to points in the territorial sea, which is defined as the belt, three nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline. 33 CFR § 2.22(a)(2). In addition, Section 4(a)(1) of the Outer Continental Shelf Lands Act of 1953 (“OCSLA”), as amended by The William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, H.R. 6395, 116th Cong. § 9503 (2021), provides that the Constitution and laws and civil and political jurisdiction of the United States are extended to: (i) the subsoil and seabed of the outer Continental Shelf; (ii) all artificial islands on the outer Continental Shelf; (iii) installations and other devices permanently or temporarily attached to the seabed, which may be erected thereon for the purpose of exploring for, developing, or producing resources, including non-mineral energy resources; or 3 Formerly 46 U.S.C. App. § 883. See Pub. L. 109-304