New Build Committee
Repair Committee
Safety & Health Committee
Environmental Committee
The New Build Committee examines current and projected shipbuilding market opportunities and discusses changing market conditions for the shipyard industry. The focus of the Committee is to gain further understanding of market trends for new shipbuilding and where future growth in the industry might occur. For instance, through the New Build Committee, SCA supported the enactment of the Energy Independence and Security Act of 2007 that amended the Capital Construction Fund to allow for the construction of vessels for the “short sea transportation trade.” As congestion on the rail and road systems continues to increase, short sea shipping has strong potential for the future of shipbuilding. In addition, the New Build Committee has looked at the value of virtual shipbuilding and the current and future demands for building vessels that will develop, service and supply the offshore energy sector.
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The Repair Committee promotes U.S. ship repair for both government and commercial customers. The leading issue for the Repair Committee, and a major lobbying and litigation effort of SCA, has been preventing Jones Act vessels from being rebuilt in foreign shipyards. The Repair Committee has discussed and recommended ways to clarify and strengthen regulations for foreign rebuild determinations of Jones Act vessels. The committee also serves as an important forum to discuss lawsuits the SCA has commenced over the Coast Guard’s failure to prevent Jones Act vessels from being rebuilt and converted overseas. Foreign rebuilding is not the entire focus of the Repair Committee. SCA has been successful through the work of its Repair Committee to advance numerous legislative and policy initiatives to increase repair and maintenance work in U.S. shipyards. Some of these initiatives include:
Maritime Security Program Mandatory U.S. Maintenance & Repair Program – At SCA’s request, Congress passed language to require ship owners that receive operating subsidies under the Maritime Security Program to use U.S. yards for their maintenance and repair. SCA continues to advance regulatory comments and legislative proposals to encourage MSP vessels perform some repair work in United States shipyards.
Defense Acquisition Policy – SCA worked to secure Section 1017 of the National Defense Authorization for Fiscal Year 2007 (PL 109-364), that requires DoD to issue an acquisition policy that establishes, as an independent evaluation criterion to be weighed similar to cost, schedule and capability, the extent to which an offeror of carriage of DoD cargo has overhaul, maintenance and repair performed on all covered vessels in shipyards located in the United States or Guam.
Capital Construction Fund Expansion - SCA is working to expand the Capital Construction Fund program to allow non-U.S. built, U.S.-flag vessels to defer revenue from U.S. income taxes for the sole purpose of using these funds to have maintenance and repair performed in US shipyards. SCA also wants to expand the program to include dry-docks.
American Fisheries Act Vessel Rebuild/Replacement – SCA is requesting that any provision allowing for AFA vessel rebuilding or replacement include a specific requirement that all work be done in United States shipyards.
SCA is in close communication with OSHA and DOL officials and was the first shipyard group to form Regional and National Alliances with OSHA. Through our National Alliance, a series of Safety Alerts are currently being developed on electrical hazards in the shipyard environment.
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The Safety & Human Resources Committee receives safety, labor and health legislation and regulations on a daily basis in order to keep members informed on important issues. When necessary, the Committee reacts to Agency rulemakings by drafting comments. Most recently, SCA addressed OSHA’s General Working Conditions in Shipyard Employment Proposed Rule.
SCA also keeps and develops safety training tools and programs for its members. The association has secured grants through the DOL and NSRP to develop videos and training packages on general shipyard orientation, crane safety and ergonomics. All SCA’s training and compliance resources are available to members at no cost.
SCA conducts quarterly Injury & Illness Surveys to benchmark industry progress in reducing injuries in shipyards. SCA’s 2007 aggregate member Total Recordable Incident Rate (TRIR) was 5.86, almost half the industry average, and serves as a testament to members’ commitment to safety. The Committees host bi-annual safety seminars in various locations across the country, which bring together federal agency, industry and safety professionals to candidly discuss shipyard safety and health issues.
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The Environmental Committee works directly with the EPA through the Agency’s Sector Strategies Program (SSP). As a pioneering industry with the SSP, SCA has been able to work directly with regulators to lessen the negative impact of new regulations. SCA worked with the EPA to develop training materials for shipyards wishing to adopt Environmental Management Systems at no cost to participating shipyards. The Committee also participates in the annual Sector Strategies Performance Report, which profiles industry sectors and highlights environmental successes.