00 HOUSE JOINT RESOLUTION NO. 41                                                                                           
01 Supporting an exemption from the Jones Act for bulk commodities, such as coal                                           
02 and coal derived fuels, produced in Alaska.                                                                             
03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04  WHEREAS 46 U.S.C. Appx. 861 - 889 (Merchant Marine Act of 1920), commonly                                              
05 known as the Jones Act, requires that seaborne shipping between United States ports be done                             
06 on vessels that have been constructed in the United States and that are crewed by United                                
07 States crews; and                                                                                                       
08  WHEREAS this requirement has resulted in much higher costs for shipping bulk                                           
09 commodities on United States vessels between domestic ports than for shipping those                                     
10 commodities on foreign carriers between United States and foreign ports; and                                            
11  WHEREAS there are currently no bulk carriers constructed in the United States that                                     
12 are capable of servicing the large-scale movement of Alaska coal and coal derived fuels; and                            
13  WHEREAS, because the transportation cost for a high-tonnage, low-value bulk                                            
14 commodity is often a significant part of the total delivered cost of that commodity, a higher                           
01 shipping cost can frequently keep a bulk commodity from being competitive; and                                          
02  WHEREAS Alaska coal and coal derived fuels are a potential fuel source for utilities                                   
03 and industries on the west coast of the United States and in Hawaii; and                                                
04  WHEREAS the current difference between Jones Act shipping rates and foreign                                            
05 shipping rates has made the delivered cost of foreign coal significantly less expensive than                            
06 domestic coal as evidenced by the current supply agreements between a Hawaiian independent                              
07 power producer and an Indonesian coal supplier; and                                                                     
08  WHEREAS greatly increased coal usage figures prominently in the future generation                                      
09 plans for Hawaiian utilities and thus will create prospective markets for Alaska coal; and                              
10  WHEREAS it is the policy of the State of Alaska under AS 44.19.035 to persuade the                                     
11 Congress to repeal the Jones Act;                                                                                       
12  BE IT RESOLVED that the Alaska State Legislature opposes the application of the                                        
13 Jones Act to bulk commodities, such as coal and coal derived fuels, because of the Act's                                
14 detrimental effect on Alaska commerce; and be it                                                                        
15  FURTHER RESOLVED that the Alaska State Legislature respectfully requests the                                           
16 Congress to pass legislation exempting Alaska bulk commodities, such as coal and coal                                   
17 derived fuels, from provisions of the Jones Act.                                                                        
18  COPIES of this resolution shall be sent to the Honorable Bill Clinton, President of the                                
19 United States; the Honorable Al Gore, Jr., Vice-President of the United States and President                            
20 of the U.S. Senate; the Honorable Federico Pena, Secretary of the U.S. Department of                                    
21 Transportation; the Honorable Newt Gingrich, Speaker of the U.S. House of Representatives;                              
22 the Honorable Bob Dole, Majority Leader of the U.S. Senate; and to the Honorable Ted                                    
23 Stevens and the Honorable Frank Murkowski, U.S. Senators, and the Honorable Don Young,                                  
24 U.S. Representative, members of the Alaska delegation in Congress.