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SCA Weekly Report | July 10-14, 2023

Shipbuilders Council of America

20 F Street NW, Suite 500

Washington, DC 20001

www.shipbuildersusa.org

 

 

SCA Weekly Report | July 10-14, 2023

 

 

ANNOUNCEMENTS

 

2023 SCA Fall Meeting Registration Now Open

 

 

The SCA Fall General Membership Meeting will take place October 11-12, 2023 at the Sheraton Portland Sable Oaks.

 

As part of the event, GD Bath Iron Works has generously offered a tour of their shipyard to our group. Please note that security information will be required to attend the tour. 

 

SCHEDULE OF EVENTS

Wednesday, October 11

  • 11:00 AM - 1:00 PM: INDUSTRY PARTNERS COMMITTEE MEETING
    • Open Session: 11:00 AM - 12:00 NOON
    • Closed session: 12:00 NOON - 1:00 PM (Industry Partners Committee Members Only)
  • 1:30 PM - 4:00 PM: EXECUTIVE COMMITTEE MEETINGS (Board Members Only)
  • 4:00 PM - 5:00 PM: BOARD MEETING (Board Members Only)
  • 5:30 PM - 7:30 PM: WELCOMING RECEPTION & EXHIBITS REVIEW (All attendees welcome)
    • Sponsored by the American Equity Underwriters

 

Thursday, October 12

All attendees welcome

  • 6:45 AM - 7:30 AM: BREAKFAST
  • 7:30 AM - 11:30 AM: SHIPYARD TOUR OF GD BATH IRON WORKS
  • 12:00 NOON: LUNCH
  • 1:00 PM - 2:30 PM: SCA STAFF PRESENTATIONS
  • 2:30 PM - 5:30 PM: GUEST SPEAKER SESSION
  • 5:30 PM - 7:00 PM: GENERAL MEMBERSHIP RECEPTION & EXHIBITS REVIEW
    • Sponsored by Signal Mutual
  • 7:00PM - 8:30 PM: MEMBERSHIP DINNER

 

HOTEL ROOM BLOCK

SCA has secured a room rate of $199 per night at the Sheraton Portland Sable Oaks. Reserve your room HERE

 

EXHIBITION HALL

The exhibition hall encourages greater interaction between SCA shipyard and partner members, offering the opportunity for members to demonstrate their product or services directly to potential customers.

 

If you are interested in exhibiting at this event, please review the Exhibitor Packet HERE.

 

 

OSHA Safe + Sound Week Registration is Open

 

Registration for Safe + Sound Week 2023 (August 7-13, 2023) is now open at osha.gov/safeandsoundweek. Safe + Sound Week is a nationwide event held each August that recognizes the successes of workplace health and safety programs and offers information and ideas on how to keep America's workers safe. This year Safe + Sound Week will provide resources for businesses on mental health and well-being. These materials will be posted before the start of Safe + Sound Week.

 

For more information on Safe + Sound Week 2023 and to sign-up, CLICK HERE.

 

 

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 Passes FY24 National Defense Authorization Act

The House considered their version of the FY24 National Defense Authorization Act (NDAA) with a final vote of 219-210.

 

An SCA Summary of House Armed Services Committee-passed bill can be found HERE.

 

The House considered several amendments to bill on the floor and adopted the following amendments germane to SCA and its members:

 

  • Curtis (UT) Requires an assessment of Cable Security Fleet’s ability and preparedness to repair transoceanic submarine fiber optic cables that may be damaged or cut by adversaries.
  • Garamendi (CA) Allows the Maritime Administration’s (MARAD) Federal Ship Financing (Title XI) Program to also provide low-interest loans and loan guarantees for re-flagging commercial vessels under the U.S. registry and repairs, retrofits, and reconfigurations of civilian vessels in domestic shipyards. Current law only allows this federal financing for new vessel construction and commercial shipyard improvements.
  • Magaziner (RI) Requires the Secretary of the Navy to report to the congressional defense committees on the use and implementation of the Navy Shipbuilding Workforce Development Special Initiative. The amendment would also require the GAO to study and report to congressional defense committees on the current state of affordable housing availability in high-cost areas with defense-related operations and the effects of limited affordable housing on defense production and readiness.
  • Peters (CA), Jacobs (CA) Clarifies the use of government operated dry docks for non-nuclear surface ship repair.
  • Peters (CA), Jacobs (CA) Requires the Secretary of the Navy to report to Congress on an annual basis each instance in the year preceding the report in which the Navy used a government dock for a ship repair and maintenance availability when sufficient capacity existed in private docks during the period in which such repairs were expected to be performed.
  • Waltz (FL) Requires the Administrator of MARAD to provide a brief on the status of establishing and implementing a national maritime strategy.

 

The House also adopted several controversial amendments related to abortion, transgender troop care, and diversity efforts. As a result of the adoption of these amendments, House Democratic Leaders urged their caucus to oppose the bill. The legislation will now await its Senate companion before heading to conference.

 

Senate Armed Services Committee Releases FY24 NDAA

The Senate Armed Services Committee (SASC) approved its version of the FY24 National Defense Authorization Act on Thursday, June 22 in a closed-session, by a vote of 24-1. The legislation matches the $886 billion President Joe Biden requested for national defense programs for fiscal 2024.

 

Shipbuilding

The bill authorizes a total of $34.7 billion for shipbuilding, including:

·        1 Columbia-class Submarine

·        2 Virginia-class Submarines

·        2 DDG-51 destroyers

·        2 FFG(X) Frigates

·        1 LPD San Antonio-class amphibious transport dock ship

·        1 A(S) Submarine Tender

·        1 John Lewis-class fleet oiler

·        1 Auxiliary Personnel Lighter

 

Despite a requirement to maintain a minimum of 31 amphibious ships, Navy leaders didn’t seek the San Antonio ship in its budget, arguing the hull was too costly. The Marines, led by Commandant Gen. David Berger, publicly advocated for the ship, and included the vessel on their annual budget wish list. The move to add the ship aligns with the House version of the bill. House appropriators, meanwhile, did not find the cash to add the ship to the Navy’s shipbuilding budget. The Senate Appropriations Committee has not yet considered its defense spending bill.

 

Ship Retirements

The bill blocks some of the Navy’s plans to scrap hulls to save money. It prohibits the service from retiring three amphibious ships and one Ticonderoga-class cruiser. The Navy proposed decommissioning eight ships: three cruisers, three dock-landing ships and two littoral combat ships.

 

The Senate is expected to consider the full NDAA on the floor in the coming weeks. The full text of the bill can be found HERE, the report language HERE and the funding tables HERE. An executive summary released by the committee is available HERE.

 

Read the SCA Summary HERE.

 

Senate Committee Advances AUKUS Amendment Enabling Sub Transfer

The Senate Foreign Relations Committee has advanced a legislative proposal that, if approved, would authorize the United States to transfer Virginia-class submarines to Australia and enable greater collaboration between the nations to implement the AUKUS security agreement.According to a Thursday announcement from committee Chairman Bob Menendez (D-NJ) and Senate Armed Services seapower subcommittee Chairman Tim Kaine (D-VA), this amendment was approved by the committee on a bipartisan basis, attaching it to the State Department authorization bill.

 

This authorization bill was referred to the Foreign Relations Committee after it was introduced by Menendez in June. The committee approved the AUKUS amendment during a closed session on Thursday.

 

According to the release, the amendment would authorize the transfer of two Virginia submarines and allow the sale of a third vessel through foreign military sales. It would also grant Australia and the United Kingdom priority status within the FMS process, providing advanced clearance for the transfer of AUKUS-related technologies between the three nations.

 

NAVY NEWS

 

Navy Exploring Commercial Options for UUVs

Responding to a congressional request, the Navy is in the early stage of gathering information from commercial vendors about the availability of large diameter unmanned undersea vehicles (LDUUVs) that may have potential for military use.

 

Although the Navy said it anticipates having to modify large commercial UUVs to support payloads, it is looking to understand costs for development and an estimated schedule for deployment.

 

In a notice published Friday for a “contract opportunity,” the Navy stated it was responding to interest by lawmakers to explore commercial LDUUVs that may be adapted for sea-based defense operations. Vendors are asked to respond by July 31.

 

Smith Becomes Acting USMC Commandant as Berger Retires

At a relinquishment of office ceremony this week, Gen. David Berger officially ended his four-year tenure as the 38th commandant of the Marine Corps, passing the torch to Assistant Commandant Gen. Eric Smith who will serve as 'acting commandant' until Congress confirms a new service leader.

 

Although Smith was nominated for the job in May, his nomination is still pending approval in the Senate, where Sen. Tommy Tuberville (R-AL) has placed a blanket hold on military nominations and promotions over opposition to the Pentagon’s leave and travel reimbursement policies for service members seeking abortion services.

 

By law, military service chiefs must retire after four years in office, requiring Berger to relinquish the role of commandant by July 11. With the commandant absent, the service’s second in command -- in this case, Smith -- assumes the duties of the role as acting commandant.

 

Smith will continue to be responsible for the role of assistant commandant, simultaneously managing the Marine Corps’ No. 1 and No. 2 positions.

 

REGULATORY NEWS

 

White House Clears Final OSHA Rule on Recordkeeping Requirements

A final rule that would require certain employers to submit injury and illness data to the Occupational Safety and Health Administration has cleared review at the White House budget office, the last step before it’s published. The proposed rule announced last March would require employers with 100 or more workers in the most hazardous industries to submit additional injury and illness records to the agency.

 

If similar to the proposed version, the final rule would also end a requirement for companies with 250 or more employees in non-hazardous industries to submit an annual summary of injury and illnesses to OSHA. The final rule was approved by the Office of Management and Budget Tuesday, according to its website. If enacted, the rule would reinstate some worker injury and illness disclosure requirements sought by the Obama administration in 2016. That rule was canceled by the Trump administration in 2019.

 

OFFSHORE WIND NEWS

 

BOEM Approves Ocean Wind 1 Construction Plan Off New Jersey

Orsted’s 1,100-megawatt Ocean Wind 1 project off New Jersey won approval from the Bureau of Ocean Energy Management Wednesday, days after state legislators racing a budget clock approved channeling additional tax credits to the developer.

 

BOEM’s sign-off on the Ocean Wind 1 construction and operations plan marks the third approval of a commercial-scale, offshore wind energy project in the United States, following on the Vineyard Wind project off southern Massachusetts and the South Fork Wind project, south of Rhode Island and east of Montauk on the east end of New York’s Long Island. Orsted’s New Jersey project will be a first for that state and is a centerpiece for Democratic Gov. Phil Murphy’s administration plans for expanding renewable energy sources.

 

The federal approval came days after the New Jersey state Legislature, under the gun to complete state budget votes by day’s end June 30, approved bills along mostly party lines that will allow Orsted to use federal tax credits to bolster financing for the project.

 

Supporters said the tax credits will ensure the project moves forward, as wind developers face continuing financial pressure from inflation, financing, and supply chain costs. Opponents insisted that tax credits should benefit power consumers by reducing their bills, and argued the Biden and Murphy administrations are forging ahead with full understanding of potential environmental and economic problems.

 

IN THE NEWS

 

NOAA Awards Contract for Two Research Ships to Thoma-Sea

The National Oceanic and Atmospheric Administration recently announced that it has awarded a $625 million contract to Thoma-Sea Marine Constructors LLC, Houma, LA, for the design and construction of two cutting-edge research vessels. The contract includes an option to purchase two more ships. The first two ships will be built at Thoma-Sea's Houma shipyard with an expected delivery date of 2027 and 2028.

 

The ship will focus primarily on ocean mapping and nautical charting as part of NOAA’s mission to deliver tools and information to help mariners safely navigate the nation’s ports and harbors. Ships from around the world move $1.5 trillion worth of products in and out of U.S. ports every year and rely on navigation charts to do so safely. The new vessels will have additional capabilities to help assess and manage living marine resources and collect data for oceanographic monitoring, research and modeling activities.

 

Hornbeck Offshore to Convert OSV to Offshore Wind SOV at Eastern

Hornbeck Offshore Services Inc. recently announced that they awarded a contract to Eastern Shipbuilding Group Inc. to convert one of its recently acquired 280-foot offshore supply vessels (OSV) to a service operation vessel (SOV) to service the U.S. offshore wind market. The SOV will also serve the petro-energy flotel market. The vessel was originally built at Panama City, FL based Eastern Shipbuilding in 2014 and will be converted at the company’s 300-acre Allanton, FL, shipyard. The U.S.-flag vessel will be capable of supporting both construction and O&M activities. Delivery is expected in spring 2025.  

 

Pasha Hawaii Delivered Second LNG-Powered Containership for Jones Act Trade

Pasha Hawaii and AmFELS have announced the delivery of the MV Janet Marie, the second of two new 2,525 TEU-capacity ‘Ohana’ class containerships powered by liquified natural gas. This delivery follows the delivery of the first Ohana-class vessel, the MV George III, in July 2022. Both ships were built by AmFELS in Brownsville, Texas, in compliance with the Jones Act, for Pasha Hawaii’s Hawaii/Mainland trade lane. MV George III began service on August 17, 2022.

 

 

 

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