In the past year, interpretations related to the application of the coastwise laws to the developing offshore wind industry in the United States have shed light on how the construction and operation of offshore wind farms will progress. The US coastwise laws, which place restrictions on the transportation of merchandise and passengers, as well as towing and dredging operations, are interpreted and enforced by the US Customs and Border Protection (CBP).
The CBP issued rulings that provide a framework for the construction and operation of wind turbine installations on the outer continental shelf (OCS). Recent laws have clarified equipment usage; components made in the United States can be transported to an offshore wind farm installation under certain conditions.
For example, vessels that are made and registered in the United States can carry merchandise or passengers between points in the United States, including locations on the OCS, which directly impact a project’s logistics and cost. However, if the vessel is not built and registered in the United States, the transportation between two points within US jurisdiction would be prohibited.
These new interpretations and laws will thereby refocus the operations of wind farms within the US region and reduce reliance on foreign infrastructures. Consequently, this movement will facilitate the development of domestic vessels and resources.
As enforcement lies in the hands of CBP, further clarifications on the offshore wind industry’s limitations and freedoms are anticipated in the near future to harmonically balance the growing wind sector market and the application of the coastwise laws.
Discover more about the implications and interpretations of the coastwise laws on the offshore wind industry in the United States from this comprehensive legal analysis by Blank Rome LLP on JDSupra.