Press Releases

(Honolulu, HI) - U.S. Representative Ed Case (HI-01) today supported the President’s further extension of the Jones Act waiver during the ongoing Iran war to continue to facilitate the transfer of fuel and other commodities between domestic U.S. ports including Hawai‘i.

“As the war with Iran continues to disrupt international oil, shipping and related markets, placing especially the non-contiguous parts of our country such as Hawai‘i at particular risk, I support the President’s approval of a further extension of the waiver of the Jones Act for another 90 days,” said Case.

“The waiver is operating nationally to mitigate the effects of market disruption on energy availability and pricing nationally, “ said Case, who wrote the President urging the waiver extension.

“But the need for the waiver is especially acute in Hawai‘i and other noncontiguous jurisdictions which are largely reliant on external fossil fuel-based products for energy, agriculture, transportation, and other key needs, and where the Jones Act, even in a non-disrupted world, imposes unique severe constraints on the delivery of energy supplies and related pricing.

“Hawai‘i has already had to utilize the waiver to provide delivery of domestic fuel supplies from the continental U.S., proving its necessity to assure our islands’ energy supplies.”

Case said it was important to grant the extension now rather than wait for the second extension to expire “because contracts for the acquisition and shipping of fossil fuel products to U.S. ports are signed well in advance of shipping and delivery and failure to provide clarity on that timeframe will seriously disrupt shipping options and prices with wide ranging effects.”

The Jones Act, which became law on June 5, 1920, severely limits shipping options from the continental U.S. to U.S. Jones Act vessels only, despite the widespread availability of shipping in the international markets. For fossil fuel products specifically, of the thousands of tankers operating globally, only a small fraction are Jones Act-compliant and available for domestic transport, and virtually none are suited for certain bulk commodities such as fertilizer. As a result, even though the United States is a net energy exporter, Hawai‘i typically relies on foreign imports because Jones Act shipping is far more expensive and less dependable that international shipping.

The President first granted a 60-day waiver of the Jones Act in March and has extended the waiver three times since then, each time for 90 days.

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