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SCA Weekly Report | June 19-23, 2023

Shipbuilders Council of America

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SCA Weekly Report | June 19-23, 2023

 

 

ANNOUNCEMENTS

 

Shipbuilders Council of America Announces Annual Safety Awards for 2023

 

Winning Shipyards Received Award for Excellence in Safety, Award for Improvement in Safety, and Award for Significant Safety Achievement

 

WASHINGTON – The Shipbuilders Council of America (SCA), the national association representing the U.S. shipbuilding, maintenance and repair industry, recently announced its yearly member safety awards for 2023. The awards are given to deserving members of SCA recognized for their achievements in safety.

 

“Workforce health and safety is embedded into the fabric of our industry because the teams that work in our shipyards and throughout the industrial base are the most important asset we have in building and repairing the U.S. commercial and military fleets,” said Matthew Paxton, President of the Shipbuilders Council of America. “Each year SCA honors the member facilities that go above and beyond to uphold the highest safety standards and improved safety practices throughout their organizations and this year’s winners have demonstrated superior safety achievements.”

 

SCA recognizes shipbuilding and repair organizations with the “Award for Excellence in Safety” and the “Award for Improvement in Safety” every year for enhancement of operations and promotion of safety and accident prevention. The “Award for Significance in Safety Achievement” honors shipyards that saw 0 fatalities and had a total recordable incident rate (TRIR) of under 1.0.

 

In order to qualify for SCA’s annual safety awards, member organizations must submit the SCA Injury & Illness survey for all four quarters in order to be eligible for a safety award. Additionally, they must have had zero fatalities and either have a TRIR below the SCA average or reduce their year-on-year TRIR by 10 percent or more.

 

The following shipyards and repair facilities were recognized for their safety practices this year:

 

Award for “Significant Safety Achievment”

  • Cascade General, Vigor Portland (Portland, Ore.)
  • Metal Shark Boats (Jeanerette, La.)
  • Philadelphia Ship Repair (Philadelphia, Pa.)
  • Vigor Fabrication (Portland, Ore. Metro Region)

 

Award for “Excellence in Safety”

  • Alabama Shipyard (Mobile, Ala.)
  • Austal USA (Mobile, Ala.)
  • BAE Systems Jacksonville Ship Repair (Jacksonville, Fla.)
  • Bollinger Shipyards (Lockport, La.)
  • Cascade General, Vigor Portland (Portland, Ore.)
  • Conrad Shipyard (Morgan City, La.)
  • Fincantieri Marinette Marine (Marinette, Wisc.)
  • Metal Shark Boats (Jeanerette, La.)
  • Metal Shark Franklin Shipyard (Franklin, La.)
  • MHI Ship Repair & Services (Hampton Roads, Va.)
  • Philadelphia Ship Repair (Philadelphia, Pa.)
  • Southwest Shipyard L.P. (Channelview, Texas)
  • Vigor Alaska (Ketchikan, Alaska)
  • Vigor Fabrication (Portland, Ore. Metro Region)

 

Award for “Improvement in Safety”

  • Austal USA (Mobile, Ala.)
  • Colonna’s Shipyard, Inc (Norfolk, Va.)
  • Conrad Shipyard (Morgan City, La.)
  • Eastern Shipbuilding Group (Panama City, Fla.)
  • MHI Ship Repair & Services (Hampton Roads, Va.)
  • Philadelphia Ship Repair (Philadelphia, Pa.)
  • Vigor Alaska (Ketchikan, Alaska)

 

 

NAVSEA Workforce Grant Opportunities

 

 

 

Save the Dates: Upcoming SCA Meetings

 

2023 SCA Fall General Membership Meeting: October 11-12, 2023 | Portland, Maine

2024 SCA Winter General Membership Meeting: February 7-8, 2024 | Coral Gables, Florida

 

CONGRESSIONAL NEWS

 

House Armed Services Committee Advances $886B NDAA

Early morning Thursday, the House Armed Services Committee, by a vote of 58-1, adopted the fiscal year 2024 defense authorization bill. The bill would authorize $886 billion for national defense in keeping with the debt limit deal struck by President Joe Biden and Speaker Kevin McCarthy (R-CA).

 

House lawmakers plan to add an amphibious transport dock to the Navy's shipbuilding plan and prevent the decommissioning of three amphibious warships and two cruisers in fiscal year 2024.

 

The House Armed Services seapower and projection forces subcommittee’s draft mark of the FY-24 defense policy bill adds a San Antonio-class amphibious transport dock to the procurement budget, fulfilling the Marine Corps’ top unfunded priority.

 

The mark supports the other eight battleforce ships included in the Navy’s FY-24 budget request, while preventing the retirement of five of the eight ships up for decommissioning -- Whidbey Island-class dock landing ships Germantown (LSD-42), Gunston Hall (LSD-44) and Tortuga (LSD-46) as well as Ticonderoga-class guided missile cruisers Shiloh (CG-67) and Cowpens (CG-63).

 

The Navy’s request, which proposed decommissioning three aging amphibious warships while excluding new amphibious vessels from its shipbuilding proposal, received criticism from lawmakers and Marine Corps leadership who noted the plan would shrink the fleet of L-class ships below the legal minimum of 31 vessels.

 

The draft legislation would also prevent the Navy from reducing the operational status of its expeditionary fast transport vessels and mandate the development of a new operating strategy for EPF use in U.S. Indo-Pacific Command’s area of responsibility.

 

The committee considered more than 800 amendments and adopted 4 en Bloc packaged of amendments, which included the amendments SCA supported to address the recapitalization of the nation’s sealift fleet. A full list of relevant amendments can be found HERE. If you’d like to review any of the text of these amendments, please let me know and we’ll send them over. A full SCA summary of the bill will be released following the committee report.

 

The bill is expected to be considered on the House floor in early July.

 

House Appropriations Committee Considers Defense Spending Bill

House appropriators voted on Thursday to advance a defense spending bill that excludes funding for amphibious warship procurement and looks to save two Littoral Combat Ships from decommissioning in fiscal year 2024 -- marking a significant departure from the draft legislation produced by the House Armed Services Committee.

 

In total, House appropriators advanced a plan to provide the Navy with $32.9 billion for shipbuilding -- about $58 million more than the service requested -- including one Columbia-class submarine, two Virginia-class submarines, two Arleigh Burke-class destroyers, two Constellation-class frigates, one John Lewis-class oiler and one submarine tender replacement.

 

Appropriators would also provide $400 million for four ship-to-shore connectors although the Navy did not seek funding for any more of the vessels in FY-24.

 

The House authorization and appropriations bills also differ when it comes to ship decommissioning, with appropriators aiming to save two Littoral Combat Ships and two Whidbey Island-class dock landing ships from the Navy’s chopping block, while authorizers seek to protect two cruisers and all three of the amphibious vessels up for retirement.

 

The House Appropriations Committee approved the $826.45 billion for defense spending in the fiscal year starting Oct. 1, staying within spending caps negotiated in the debt ceiling agreement as the Republican-led committee incorporated conservative stances on social issues.

 

The bill was approved, 34 to 24 along party lines yesterday after contentious debate over the inclusion of language on abortion and diversity. It would prohibit federal employees and their dependents from using any funds indirectly related to obtaining an abortion. 

 

The legislation’s new discretionary spending would be $286 million more than the Biden White House’s request, and $28.7 billion—or 3.6%—more than enacted for this year, staying within the debt limit deal signed earlier this month. The Democratic-led Senate Appropriations Committee has yet to act on its version of the spending bill, which would provide $823 billion. 

 

The draft committee report can be found HERE. The SCA summary of the bill can be found HERE.

 

House Appropriators Advance Homeland Security Spending Bill

House Republicans approved their Homeland Security spending bill, which includes funding for the Coast Guard, in full committee on Wednesday, voting 33-25 in support of $63 billion in discretionary funding for fiscal 2024, a 3 percent increase.

 

Under the measure, the Coast Guard would receive $1.5 billion for vessels. A full SCA summary of the bill can be found HERE. A Republican committee summary of the bill is here. The bill text is HERE and the report language can be found HERE.

 

Now that the Appropriations Committee has approved the measure, House Republican leaders plan to attempt to bring the spending bill to the floor this summer, along with the other 11 measures to fund the government for the fiscal year that begins Oct. 1.

 

Senate Armed Services Committee Approves FY24 NDAA

Defense policy legislation approved Thursday by the Senate Armed Services Committee forces the Navy to buy a new amphibious warship that it didn’t seek in its budget, but that the Marine Corps publicly campaigned to purchase.

 

The upper chamber’s version of the fiscal 2024 National Defense Authorization Act also requires the Pentagon to outline the legality and other details of its abortion travel policy. The move comes amid a standoff over the policy that has frozen senior military promotions in the Senate.

 

The NDAA was approved 24-1 on Thursday during the panel’s closed-door deliberations. An executive summary of the bill was released Friday and can be read HERE.

 

 

Senate Armed Services Committee Advances Marine Corps Commandant Nominee

The Senate Armed Services Committee advanced President Joe Biden's pick to lead the Marine Corps as concerns mount that a blockage of military promotions could leave the service without a confirmed top officer.

 

The panel's approval of Gen. Eric Smith, a vote that the committee said came on Wednesday, puts pressure on the full Senate to confirm him before Commandant Gen. David Berger finishes his term in early July.

 

No promotions for generals and admirals have cleared the Senate in months, as Sen. Tommy Tuberville (R-A:) has held up more than 250 senior nominees in a bid to overturn Pentagon policies that ease troops' access to abortion.

 

Tuberville's blockade will soon impact the Joint Chiefs as several top officers retire. First up is the Marine Corps, where Berger's last day by law is July 10.

 

Senate Adopts Funding Totals for FY24 Spending Bills

Senate appropriators approved funding totals for a dozen fiscal 2024 spending bills along party lines on Thursday, while acknowledging the need for reaching an agreement on more money in the coming months.

 

The full panel approved the totals in a 15-13 vote, kicking off the committee’s first markup in two years, the first markup with two women at the helm and the first-ever televised markup for the panel.

 

The Committee approved the following funding totals:

  • Agriculture-FDA: $25.9 billion
  • Commerce-Justice-Science: $69.6 billion
  • Defense: $823.3 billion
  • Energy-Water: $56.7 billion
  • Financial Services: $16.8 billion
  • Homeland Security: $56.9 billion
  • Interior-Environment: $37.9 billion
  • Labor-HHS-Education: $195.2 billion
  • Legislative Branch: $6.8 billion
  • Military Construction-VA: $154.4 billion
  • State-Foreign Operations: $58.4 billion
  • Transportation-HUD: $88.1 billion

 

Sen. Susan Collins (R-ME) and other Republicans voted against the measure citing the inadequate funding levels for Defense and Homeland Security. 

 

Senate appropriators are marking up to the budget levels included in the $1.59 trillion debt deal. House Republicans, meanwhile, want to fund the government $119 billion below the deal's totals, while simultaneously rescinding $115 billion in recent spending.

 

Both chambers will have major differences to resolve in order to fund the government for the fiscal year that begins on Oct. 1. Lawmakers are facing the added threat of a 1 percent funding cut if they fail to pass all 12 appropriations bills by Jan. 1 and resort to a stopgap spending patch.

 

NAVY NEWS

 

Del Toro Declines Request to Produce New Shipbuilding Plan

Navy Secretary Carlos Del Toro has declined a request from a group of Senate Armed Services Committee members who asked the service to produce an updated shipbuilding plan that ensures an amphibious warship fleet of at least 31 vessels.

 

In a June 19 letter, Del Toro said the Navy intends to meet legal amphibious warship requirements and indicated he is prepared to brief the committee on the subject but did not provide an updated plan.

 

“The [Navy Department] will continue to make investments to put us on course to achieve and maintain a ready and capable amphibious warship fleet that meets the needs of our Joint Force Commanders,” Del Toro wrote. “I am prepared to come brief you in more detail.”

 

The secretary’s letter is a response to a June 13 letter, authored by Sen. Dan Sullivan (R-AK) and signed by a bipartisan group of 13 other Senate Armed Services Committee members, that called for an updated shipbuilding plan and a briefing from Del Toro by Monday, June 19.

 

Lawmakers criticized the Navy’s fiscal year 2024 budget request -- which excluded a new amphibious transport dock from procurement plans while decommissioning three aging amphibious warships -- and the subsequent 30-year shipbuilding plan.

 

OFFSHORE WIND NEWS

 

Mass. Maritime Academy Offering Offshore Wind Training to Locals

Massachusetts Maritime Academy (MMA) said it has started offering its Global Wind Organization Basic Technical Training (GWO BTT) course to community members, opening the door to those on Martha’s Vineyard interested in a potential career in the offshore wind industry.

 

Massachusetts Maritime Academy is one of the first institutions in the Northeast to offer this type of training. The goal is to help broaden the landscape of local job opportunities in the fast-emerging offshore wind power field and help create a talent pool of technicians with the skill and know-how to perform a variety of wind power and related jobs, the academy said.

 

The GWO BTT Standard consists of four modules and an additional installation module which can be taken after certification in the mechanical module. The course is designed to provide a basic understanding of mechanical, electrical, hydraulic, bolt-tightening and installation principles and systems as they apply to wind turbine operation. Upon completion, participants will possess an awareness of how to identify and mitigate the hazards encountered when working on hydraulic, mechanical and electrical systems, and how to control and mitigate these hazards, preparing candidates for working both on- and off-shore in the wind power industry.

 

South Fork Wind Installs First Offshore Wind Turbine Foundation and U.S.-Built Substation in New York State

New York Governor, Kathy Hochul, recently announced that South Fork Wind, New York's first offshore wind farm, has achieved its "steel in the water" milestone with the installation of the project's first monopile foundation. In the coming days, South Fork Wind will install the project's U.S.-built offshore substation. The project remains on-track to become America's first utility-scale offshore wind farm to be completed in federal waters when it begins operations by the end of this year.

 

IN THE NEWS

 

Study Sees Canada-U.S. Great Lakes Short-Sea Shipping Opportunities

A new study sees significant potential advantages for short-sea shipping services between southern Ontario, Canada, and the U.S. Great Lakes region. The study was carried out by Fluid Intelligence, a data-analysis partnership of the Hamilton Ontario Port Authority (HOPA Ports) and the McMaster Institute for Transportation & Logistics, with support from Transport Canada. It highlights the numerous trade flows that could benefit from integrating marine transportation alongside trucking services.

 

Currently, over 12,000 trucks per week make cross-border trips between Southern Ontario and U.S. Great Lakes port areas, carrying non-perishable commodities that are seen as ideal candidates for a marine service to handle the long-haul “middle mile.”

 

Short-sea shipping, a widely adopted approach in Europe and Asia, is an increasingly appealing alternative to road transportation in the Great Lakes region. Factors such as population growth, highway congestion, driver shortages, and rising fuel costs have contributed to a growing interest in marine transportation.

 

Offshore Oil Spending to Rise More Than 20% This Year

Offshore oil and gas exploration spending will increase more than 20% globally this year and the growth will continue into the next, oilfield services firm SLB said on Wednesday. "Offshore is experiencing a renaissance, with significant breadth and anticipated durability," SLB Chief Executive, Olivier Le Peuch, said at the JP Morgan Energy Power and Renewable Conference, according to a draft of the speech posted on the company's website.

 

SLB, the world's largest oil services and equipment provider, said it expects to see a long tail of activity with 65 lease rounds concluding globally this year, in addition to several countries awarding leases through open-door policies. "This year, we anticipate offshore exploration spend[ing] to increase more than 20%," Le Peuch said.

 

Keel Laid for Future USS Pierre (LCS 38)

Austal USA hosted a keel laying ceremony for the future USS Pierre (LCS 38) Independence-variant Littoral Combat Ship at the company’s Gulf Coast shipyard. The future USS Pierre is the final Independence-variant Littoral Combat Ship being built by Austal USA in Mobile, AL. Pierre is planned for delivery in late 2024 and will be homeported in San Diego, CA, along with the other Independence LCSs that have been delivered to the fleet.  

 

 

 

If you have any questions, please do not hesitate to contact the SCA staff.