[Congressional Record Volume 168, Number 37 (Tuesday, March 1, 2022)]
[Extensions of Remarks]
[Page E199]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            CAPITAL CONSTRUCTION FUNDS FOR JONES ACT VESSELS

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                          HON. JOHN GARAMENDI

                             of california

                    in the house of representatives

                         Tuesday, March 1, 2022

  Mr. GARAMENDI. Madam Speaker, today I introduce legislation to allow 
operators of Jones Act-compliant passenger ferries to establish Capital 
Construction Funds. Only car ferries are currently eligible for this 
special, tax-exempt domestic shipbuilding program administered by the 
Maritime Administration (MARAD).
  Federally regulated Capital Construction Funds allow operators of US-
flagged vessels to legally forgo paying federal business taxes 
pertaining to such vessels, provided all that forgone tax payment is 
reinvested in constructing new US-flagged vessels in American 
shipyards.
  Current law only allows operators of cargo and fishing vessels to 
establish Capital Construction Funds for such vessels. Car ferries are 
only eligible because they are treated as ``cargo vessels'' for the 
purposes of the program, not ferries. Under my bill, all ferries and 
similar vessels with 50-plus passenger capacity would be eligible to 
establish Capital Construction Funds.
  Through my tenure in the Congress, I have worked to increase federal 
funding for expanded passenger ferry service. Regrettably, Congress has 
historically underfunded the Federal Highway Administration's formula 
program and the Federal Transit Administration's competitive grant 
program for ferries, ferry terminals, and related infrastructure. 
Privately operated passenger ferries remain ineligible under both U.S. 
Department of Transportation programs.
  Both public and private operators are working to expand service in 
the San Francisco Bay Area. My legislation is intended to support 
proposed service expansion by private ferry operators in the Bay Area 
and nationwide, at no cost to American taxpayers. Many Bay Area ferry 
operators are also considering replacing their existing fleets with new 
renewable energy-powered ferries, like hydrogen fuel cells. Those 
ferries can and should be built in American shipyards by skilled 
workers.
  Madam Speaker, I plan to make this legislation a priority in the 
forthcoming Coast Guard Authorization Act for fiscal years 2022 and 
2023.

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