MARAD’s Title XI Changes: Good News for Offshore Wind?
The U.S. Department of Transportation's Maritime Administration (MARAD) in December issued a final rule updating its financial requirements for the Federal Ship Financing Program, commonly referred to as Title XI. While the move applies to the U.S. maritime industry as a whole, it is seen as especially helpful for players looking to serve the U.S. offshore wind sector.Designed to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards, Title XI provides for a full faith and credit guarantee by the U.S. government. The program essentially aims to encourage U.S.
MARAD Finalizes Rules for Title XI Loan Applicants and Borrowers
The U.S. Department of Transportation's Maritime Administration (MARAD) issued a final rule updating its financial requirements for the Federal Ship Financing Program, commonly referred to as Title XI. The final rule provides the application requirements for MARAD loan guarantees for construction or reconstruction of a U.S.-flagged vessel or shipyard modernization. Designed to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards, Title XI provides for a full faith and credit guarantee by the U.S. government.
The Headwinds of US Offshore Wind Development
On March 29, 2021, President Biden announced his ambitious plan to deploy 30 gigawatts (GW) of offshore wind power – enough energy to power 10 million U.S. homes – by 2030. The plan would leverage authorities under the Department of Interior, Energy, and Commerce to guide “more than $12 billion per year in capital investment in projects on both U.S. coasts, create tens of thousands of good-paying, union jobs, with more than 44,000 workers employed in offshore wind by 2030 and nearly 33,000 additional jobs in communities supported by offshore wind activity.” The U.S.
Biden Attends Steel Cutting for Great Lakes' Subsea Rock Installation Vessel
President Joe Biden traveled to Philadelphia on Thursday to attend a steel cutting ceremony for Great Lakes Dredge & Dock Corporation's new offshore wind rock placement vessel, touting his administration’s clean energy agenda and job creation efforts as the U.S. builds up its offshore wind industry. "The clean energy future we’re building all across America will be transformational,” Biden said during the ceremony at Philly Shipyard. “Thousands of families will rely on good jobs these projects create…
Recent News a ‘Mixed Bag’ for US Offshore Wind
The month of May brings a mixed bag of news for offshore wind in the United States, as outlined in the latest U.S. Offshore Wind Report from business intelligence firm Intelatus Global Partners.In the "positive" category, Intelatus said federal permitting of projects continues on schedule, and states continue to plan to procure and accommodate ever larger amounts of wind produced offshore into their onshore grids. The firm also noted that the Internal Revenue Service has clarified certain Inflation Reduction Act incentives.
Congress, GAO Set Their Focus on Cargo Preference Fixes
On September 14, 2022, the House Transportation & Infrastructure Committee (T&I Committee), Subcommittee on Coast Guard and Maritime Transportation, held a hearing which indicated a potential revitalization, and new enforcement regime, of U.S.-flag requirements under the Cargo Preference Act of 1954 (the CPA). The hearing occurred on the heels of a Government Accountability Office’s (GAO) report regarding the Maritime Administration’s (MARAD) lack of COA enforcement, with significant recommendations to revamp oversight by the agency to ensure a growing…
Offshore Wind Vessels Get 'Vessel of National Interest' Designation by U.S. MARAD
The U.S. Maritime Administration (MARAD) last Friday designated offshore wind vessels as vessels of national interest making them eligible for financial support through the Title XI Federal Ship Financing Program (Title XI). The Federal Ship Financing Program - commonly referred to as "Title XI" based on the part of the Merchant Marine Act of 1936 that established the program - provides for a full faith and credit guarantee by the United States Government to promote the growth and modernization of the U.S. merchant marine and U.S.
Streamlining and Simplifying US Government Guaranteed Vessel Financing
The Maritime Administration (MARAD) has taken several steps to streamline and simplify the Federal Ship Financing Program under Chapter 537 of Title 46 of the U.S. Code (commonly referred to as Title XI). The Title XI program provides for a full faith and credit guarantee by the United States government to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards. The Title XI Program supports U.S. shipowners obtaining new vessels from, or reconstructing and reconditioning vessels in, U.S. shipyards. It also aids U.S.
INSIGHTS: Niels Aalund
Niels Aalund was elected President of the International Propeller Club at their 93rd International Convention and Conference. The prominent maritime industry stakeholder will serve a two-year term, commencing from October 17th. Aalund, a well-known maritime subject matter expert and executive, also serves as an Officer and as Senior Vice President of the West Gulf Maritime Association (WGMA). WGMA communicates and coordinates with various governmental entities throughout the West Gulf…
WASHINGTON WATCH: A Tale of Two Fleets
Mixed Government Support for U.S. Shipbuilding.It has been a busy start to the 116th Congress for the U.S. shipbuilding industry, with three congressional hearings in early March focused on the industry’s role as a critical component of the U.S. national security industrial base. In addition, the Consolidated Appropriations Act, 2019, which was signed into law on February 15, contained mixed news for shipbuilding programs. Through the congressional hearings and enacted legislation, two opposing themes have emerged.
Offshore Wind: Good Supply, Growing Demand
In its 2019 “Annual Energy Outlook” the US Energy Information Administration (EIA) projects that electric generation from renewables (wind, solar, hydro) will go from 500 billion KWh in 2018 to 1500 billion KWh in 2050, just 30 years from now.“The AEO highlights the increasing role of renewable energy in the US generation mix,” said EIA Administrator Linda Capuano. “Solar and wind generation are driving much of the growth. In fact, our reference case projects that renewables will grow to become a larger share of U.S.
Goldsboro LNG Project Eligible for $1.5bln German Loan
Pieridae Energy announced that its proposed financing of upstream activities within the Goldboro LNG project has received a written confirmation of eligibility in principle for up to US $1.5 billion of untied loan guarantee by the German federal government under its UFK program (Bundesgarantien für ungebundene Finanzkredite).According to the press release, this confirmation not only satisfies a critical condition leading to the completion of Pieridae’s acquisition of Ikkuma as contemplated by the arrangement agreement entered into between the Company and Ikkuma on August 23, 2018, but also marks an important milestone in advancing the…
Trump Proposes Boost to Maritime Infrastructure Investment
On February 12, President Trump released his highly anticipated infrastructure proposal, a “Legislative Outline for Rebuilding Infrastructure in America.” Unlike prior federal infrastructure development strategies, which rarely discussed the need for maritime infrastructure investment, the proposal places maritime infrastructure on equal footing with other surface transportation modes in terms of potential funding opportunities. The outline contains proposals that would create three new major programs…
US Shipyards: Building for America, Jobs for Americans
The shipbuilding and ship repairing industry has always been a core strength of our nation. It has enabled the United States to protect and project its prosperity, power and influence internationally. A book in my office signed by shipbuilder William Webb illustrates the point. Mr. Webb inherited his father’s shipyard in 1840 and built over 130 of the fastest clipper sailing vessels; he later built the largest and most celebrated steamships of his era. Those were glory years for the U.S. maritime industry, an era when the shipping industry was synonymous with American sovereignty.
Portugal: Searching for Lost Maritime Glory
Although a small nation on the Atlantic shores, Portugal in the 16th century was credited with discovering most of the “New World” previously unknown to Europe. In the process it became the richest nation in the West. The names of Bartolomeu Dias (Africa), Vasco da Gama (India) and Fernão de Magalhães – Magellan, who led the first circumnavigation of the globe but was killed in the attempt – echo down the centuries. Over the years the country underwent a transformation and saw the hard won glory fade. In fact until 1974, strong public protection dominated the national shipping sector, especially regarding merchant shipping to Portugal’s overseas territories.
Paul N. Jaenichen - Maritime Administrator, United States Maritime Administration
Paul “Chip” Jaenichen was appointed by President Obama and sworn in as Maritime Administrator on July 25, 2014. Before his appointment, Administrator Jaenichen served as Acting Administrator beginning in June 2013. He joined the U.S. Department of Transportation, Maritime Administration in July 2012 when he was appointed Deputy Maritime Administrator. A career naval officer, retiring in 2012 after serving 30 years as nuclear trained Submarine Officer in the U.S. Navy, Jaenichen’s…
Jaenichen Weighs in on Title XI
While maritime industry trends are often unexpected and rarely coincide with the Federal budget cycle, MARAD currently holds sufficient funding to support $735 million in Title XI loan guarantees and we fully intend to use it. As a reader of Maritime Reporter & Engineering News, you’re probably familiar with Title XI shipbuilding loan guarantees and the program’s importance to the U.S. Maritime Industry. The Title XI program—administered by the Maritime Administration (MARAD)…
US: $4B in Loan Aid for Renewable Energy
The U.S. Energy Department on Wednesday unveiled a plan for up to $4 billion in loan aid for renewable energy companies to help rejuvenate a program that faced harsh political attacks over past failures of federally subsidized projects. The Obama administration's draft plan would provide loan guarantees for innovative projects that limit or avoid greenhouse gas emissions. It will specifically focus on advanced electric grid technology and storage, biofuels for conventional vehicles, energy from waste products and energy efficiency.
Offshore Insights from OMSA's Ben Billings
Ben Billings serves as President & CEO of the Offshore Marine Service Association (OMSA), a nationwide trade association headquartered in New Orleans that represents more than 200 member companies. OMSA’s membership includes approximately 100 firms operating more than 1,200 vessels that provide transportation services to the offshore oil and gas industry in the Gulf of Mexico and around the world. It’s arguably a very good time to be at the helm of OMSA, with a resurgent U.S.
MARAD Seeks Public Comment on Title XI
The Maritime Administration (MARAD) said it is asking for public comment on a proposed policy regarding the factors for obtaining loan guarantees through the Maritime Guaranteed Loan Program, Title XI. Title XI is a discretionary program that provides loan guarantees for vessel construction in U.S. shipyards, helping to create maritime-related jobs. The proposed policy is intended to further promote a modernized and more environmentally sustainable marine transportation industry by including the consideration of various environmental initiatives…
Loan Options for the Marine Industry
As we launch into 2014, the domestic waterfront continues to fire on all pistons; boatbuilding, charter rates, utilization of tonnage, and so much more. That kind of momentum, however, requires funding to sustain. For smaller operators in need of capital to grow and/or maintain their fleets, sourcing those funds can be tricky. Fortunately – and unlike the Department of Transportation’s Maritime Administration’s Title XI Federal Ship Financing Program of the last few years – the U.S. Small Business Administration and the U.S. Department of Agriculture actually have the funding to make and guarantee loans for the U.S. commercial marine industry.
Jumping Off the Fiscal Cliff?
You are not alone if you are bewildered by the talk in Washington about “sequester,” “continuing resolution”, “fiscal cliff,” “budget resolutions,” and “debt ceilings.” Even those of us who think we understand what’s going on have trouble keeping up. This article will break down the talk into segments on the continuing resolution that funds the government for the rest of this fiscal year: the House and Senate budget resolutions, the upcoming debt ceiling fight; and, finally, the President’s budget request for FY2014. The focus is on maritime, transportation and energy programs.
FY-13 Coast Guard and Maritime Budget Hearing Review
The Subcommittee on Coast Guard and Maritime Transportation, chaired by U.S. Rep. Frank LoBiondo (R-NJ), held a hearing this morning to examine the fiscal year (FY) 2013 budget requests for the United States Coast Guard, Federal Maritime Commission (FMC), and Maritime Administration (MARAD). “The Subcommittee is meeting today to hear testimony on the President’s fiscal year 2013 budget request from the leaders of the three federal agencies which promote, protect, and regulate vessels and mariners in U.S. waters and international trade. “As my colleagues know, our nation is facing a very tough budget climate as we try to control our exploding national debt. This Congress must continue to make extremely difficult decisions to bring our spending under control and cut the deficit.