Lee Introduces Protecting Access to American Products Act

WASHINGTON - U.S. Senator Mike Lee (R-UT) today introduced legislation to advance American manufacturing and energy dominance by cutting outdated red tape around domestic trade shipping. The Protecting Access to American Products Act will allow flexibility from Jones Act restrictions so American businesses and energy producers can sell to American customers. U.S. Representative Ben Cline (R-VA-06) introduced the House version of this bill.

"Outdated regulations are forcing Americans to buy gas and other products from despotic regimes instead of our own producers," said Senator Mike Lee. "America produces liquefied natural gas (LNG), but we can't ship it to other American ports due to hundred-year-old red tape. States in need of LNG are forced to rely on Russia for their energy supply - a national security risk and lost opportunity for America's economy. This bill will prioritize American manufacturing and energy dominance by allowing waivers for industries like LNG for whom the restrictions don't make sense."

The White House expressed support for alleviating Jones Act restrictions today in a statement by Press Secretary Karoline Leavitt.

"In the interest of national defense, the White House is considering waiving the Jones Act for a limited period of time to ensure vital energy products and agricultural necessities are flowing freely to U.S. ports," said White House Press Secretary Karoline Leavitt.

"Excessive red tape and outdated regulations are slowing the delivery of essential goods and making it harder for Americans to access products made right here at home," said Congressman Ben Cline. "The Protecting Access to American Products Act offers a commonsense, practical solution by streamlining the waiver process and helping ensure that American-made goods, including American energy products, can move across the country more easily. This legislation supports domestic manufacturing, strengthens American energy supply chains, and keeps U.S. products competitive with foreign imports while still protecting American maritime jobs. I'm proud to work alongside Senator Lee to deliver reforms that protect our domestic interests while putting American families and businesses first."

Background

Passed in 1920, the Jones Act requires all goods transported by water between U.S. ports to be carried on vessels constructed, registered, and owned by U.S. citizens. However, for some American-made products there are no compliant ships in existence that are capable of carrying these goods.

For example, Massachusetts and Puerto Rico both import liquified natural gas (LNG). It would be cheaper and safer for them to import LNG from within the United States, but since there are no Jones Act compliant LNG carrier vessels, they are forced to rely on Russia for their energy supplies. Similarly, Hawaiian ranchers are made to fly their cattle to California by plane rather than ship them by sea, and Puerto Rico depends on Venezuelan jet fuel instead of American. Economically, it is estimated that Jones Act compliance costs tens of billions of dollars annually for American businesses.

The Protecting Access to American Products Act would address this issue by allowing an expedited waiver process for American manufacturers for whom no Jones Act compliant shipping carriers exist. When an applicant cannot find a compliant vessel for their product, the corresponding federal agency would approve or deny their waiver within 60 days.

The Protecting Access to American Products Act:

• Allows Federal agencies to temporarily waive Jones Act requirements (coastwise endorsement and U.S.-flag vessel use) for transporting specific goods.
• Requires the applicant to show that no qualifying product carrier is available to transport the specified good and must demonstrate a good faith effort to locate such a vessel.
• States that each waiver expires no less than 30 days after it is issued, and extensions must be granted in 15-day increments.
• Requires agencies to approve or deny a waiver request within 60 days. If denied, a written explanation is required within 14 days. If no decision is made within 60 days, the waiver is automatically granted for 30 days.
• Requires agencies to notify Congress within 48 hours of receiving a waiver request and within 48 hours of issuing a waiver.

Access the full text of the bill here.

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