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US LNG Shipping Waiver for Puerto Rico

Read Time: 2 mins

The Biden administration late on Sunday, October 16, approved a waiver of US shipping rules to address Puerto Rico’s urgent need for liquefied natural gas (LNG) after Hurricane Fiona.

The Homeland Security Department (DHS) issued a waiver of the Jones Act, a century-old law that requires goods moved between US ports to be carried by US -flagged ships “to address Puerto Rico’s needs as recovery efforts from Hurricane Fiona continue.”

In late September, the DHS approved a Jones Act waiver to ensure Puerto Rico had “sufficient diesel to run generators needed for electricity and the functioning of critical facilities.”

Hurricane Fiona hit on Sept 18, causing an island-wide power outage for its 3.3 million people.

In September, Puerto Rico governor Pedro Pierluisi asked the White House for a waiver to increase the availability of fuel after the storm.

A group of eight House lawmakers had asked Homeland Security secretary Alejandro Mayorkas for “a one-year waiver from the Jones Act for Puerto Rico” which faces “an unprecedented uphill battle to rebuild its homes, businesses, and communities.”

Mayorkas said Sunday, October 16’s LNG waiver decision was made – like the one in September – after consultations with the departments of transportation and energy “to assess the justification for the waiver request and based on input from the governor of Puerto Rico and others on the ground supporting recovery efforts.”

He noted that in 2020, Congress eliminated the US government’s authority to issue long-term comprehensive waivers except if required to “address an immediate adverse effect on military operations.” All other waivers, the DHS said, “must be reviewed on a case-by-case basis.”

In 2017, the DHS under then president Donald Trump waived the Jones Act requirements for just one week to allow oil and gas operators to ensure enough fuel reached emergency responders during Hurricane Irma and following Hurricane Harvey.

For more information visit www.dhs.gov