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SCA Weekly Report | January 2-6, 2023

Shipbuilders Council of America

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Washington, DC 20001




SCA Weekly Report | January 2-6, 2023





Registration Still Open:

2023 SCA Winter Meeting


February 8-9, 2023

The Biltmore Hotel

Coral Gables, FL


The 2023 SCA Winter Membership Meeting will be held on February 8-9, 2023.The cost to attend the meeting is $575.


SCA Board and Committee Meetings will be held on Wednesday, February 8, 2023 and SCA Staff Reports, the Guest Speaker Panel Sessions, and golf tournament will be held on Thursday, February 9, 2023.


The cost to play in the golf tournament is $250 and the cost to rent clubs for the golf tournament is an additional $80.


Please note that groups for the golf tournament will be finalized by February 1, 2023. If you have any requests for your golf group, please email SCA staff before this date.



SCA has secured a room block at The Biltmore Hotel for the Winter Meeting. The rate for the room block is $379/ night.

To book a hotel room under the SCA rate, please click HERE.


You will also need to enter the group code on the hotel reservation landing page. The group code is: 6901


The cutoff date for booking a room under the SCA rate is January 9, 2023. 



Winter Meeting Sponsorship Opportunities Still Available


Sponsorship opportunities are still available for the 2023 SCA Winter Meeting. A full list of sponsorships and additional information on the sponsorship opportunities can be found HERE.


Please let SCA staff know if you are interested in sponsoring an event at the Winter Meeting.



NAVSEA Workforce Grant Opportunities





FY23 Wrap Up: FY23 Spending Bills and NDAA Summaries

Congress passed the $1.7 trill omnibus FY23 spending package on December 23, 2022. SCA Summaries of the spending bills are below. More details on the bills, including the joint explanatory statement and bill summaries from the committees can be found HERE



The Congress passed the FY23 National Defense Authorization Act on December 15, 2022. SCA Summaries of the NDAA and the Don Young Coast Guard Authorization Bill for 2022 can be found below. More details on the bills, including the joint explanatory statement and bill summaries from the committees can be found HERE.



118th Congress Update

As of the writing of this update, Rep. Kevin McCarthy (R-CA), the presumptive leader of the new House Republican caucus, has failed to secure the Speaker’s gavel after 11 ballots. The House is scheduled to gavel in today, where the chamber will resume consideration of nominating the Speaker of the House. Until a Speaker is selected, the House cannot conduct regular business, including adopting rules to govern the body, swear in members-elect nor hire staff to conduct the business of the chamber.



Kevin McCarthy and his conservative opponents have reached a tentative breakthrough after a days-long standoff, giving the California Republican’s speaker bid a needed momentum boost. Conservatives will get more time to look over the details after Republicans agreed to adjourn the House until noon today (Friday, January 6th, 2023). But it’s a sign of life for McCarthy, who has struggled to show public strength after three days of 11 speaker ballots that have seen him fail to flip any of his opponents.


Reports are emerging that McCarthy has potentially reached a deal that would include a budget resolution that would cap spending at FY2022 levels, including defense spending which would be of significant concern.


Importantly, while it will get McCarthy closer, it is unlikely the agreement will be enough to get him the votes he needs to win the speakership. Twenty Republicans have been routinely opposing McCarthy on the floor, leaving him more than a dozen votes short of where he needs to be to win the House's top gavel. McCarthy will need to flip most of those votes without alienating centrists and institutionalists, who worry that he is giving away too much.


The possible deal comes after several hours of negotiations with McCarthy’s detractors and less than a day after the GOP leader made an offer that conceded to basically all of their demands — including making it easier to boot a speaker.


Republicans are weighing trying to adjourn through Friday or the weekend as they face likely absences from their own members. And leadership is hoping that their nascent deal with conservatives will help corral support for taking that break.


The GOP is already missing one member: Rep. Ken Buck (R-Colo.) missed the ninth ballot after traveling back to his home state for a “planned non-emergency medical procedure.” Buck's office said the lawmaker would be out most of Friday. 


The tentative breakthrough comes as McCarthy's allies have spent most of Thursday trying to figure out if the glimmers of hope over the potential deal are just a mirage. In a slim majority, he can’t afford to alienate the other side of his conference, where centrists and institutionalists already have heartburn over the proffered deal.


Senate Armed Services Leaders Warn Biden of AUKUS Risks

In a letter dated December 21, 2022, Senate Armed Services Committee Chair Jack Reed (D-RI) and Ranking Member Jim Inhofe (R-OK) sent a warning shot to President Joe Biden over concerns that the AUKUS trilateral security agreement could imperil America’s submarine fleet.


“Over the past year, we have grown more concerned about the state of the U.S. submarine industrial base as well as its ability to support the desired AUKUS SSN [nuclear sub] end state,” said the letter sent to the White House. “We believe current conditions require a sober assessment of the facts to avoid stressing the U.S. submarine industrial base to the breaking point.”


“We are concerned that what was initially touted as a ‘do no harm’ opportunity to support Australia and the United Kingdom and build long-term competitive advantages for the U.S. and its pacific allies, may be turning into a zero-sum game for scarce, highly advanced U.S. SSNs,” the two lawmakers continue, explicitly warning against any plan to sell or transfer Virginia-class submarines to Australia before the US Navy has met its current requirement.


At the time the letter was sent, Reed and Inhofe were the chairman and ranking member, respectively, of the Senate Armed Services Committee, one of the four key congressional panels overseeing the Pentagon. While Inhofe has since retired, Reed remains the SASC chairman in the new Congress — and hence remains one of the most influential voices on defense issues on the hill, with oversight on the AUKUS discussion.


AUKUS refers to the security pact announced in September 2021 between the United States, United Kingdom and Australia. The highlight of the agreement involves the US and UK sharing highly sensitive nuclear submarine technology with their ally down under, so that Australia can develop and operate nuclear-powered submarines, or potentially receive American Virginia-class subs outright. Leaders of the three countries said at the time their respective governments would spend 18 months on a preliminary planning phase before advancing the agreement; that initial consultation period is scheduled to end in March.




Massachusetts Regulators Reject Appeals Approving PPAs for Wind Farms

Massachusetts regulators are moving forward with two offshore wind projects despite the appeals from the project developers which said that inflation and supply chain issues made the wind farms uneconomical to proceed under their current agreements. The Massachusetts Department of Public Utilities however said it believes the projects can proceed and sided with the power companies in the dispute approving on December 30 the Power Purchase Agreements (PPA) for the two wind farms.


At issue are the agreements reached between the wind farm developers and the power utilities in the spring of 2022 for the Commonwealth Wind project being led by Avangrid and the Mayflower Wind project which is a partnership between Shell New Energies and Ocean Winds North America (a joint venture between EDP Renewables and ENGIE). Both wind farms are positioned south of Martha’s Vineyard and each is slated to produce 1.2 GW of power.


Avangrid filed with the Massachusetts Department of Public Utilities to abandon the PPAs for Commonwealth Wind citing the changed economics since the agreements were reached six months earlier.


Study Lists Options to Advance California Offshore Wind

The central California coast has an array of opportunities to enhance its waterfront infrastructure to support the growth of the offshore wind and space industries, a new study finds.


The findings of the “Central Coast Emerging Industries Waterfront Siting and Infrastructure Study” will inform critical next steps in planning for offshore wind development following last week’s federal auction of three lease areas off the coast of Morro Bay and for increased launch activity at Vandenberg Space Force Base, according to REACH which conducted the study.




2023 Outlook: The Offshore Service Vessel Market - OP-ED

The market for offshore support vessels has been through a rather rough few years since offshore exploration and production activity took a nose-dive in 2015 following the oil price crash the year before.


The newbuild order boom that came with the ever-greener pastures imagined in the industry ensured that not only was the supply- and demand balance off by an insurmountable degree in the years that followed, but at its peak, in 2017, the oversupply of anchor handling tug supply- and platform supply vessels was in excess of 30% more units than the market required at its all-time high demand. And while those asset classes were starting to see some significant momentum build in 2019 and Q1 2020, we saw the impact of COVID-19 bring demand right back to previous trough levels – almost overnight as restrictions that reduced energy demand were rolled out across the globe. READ MORE


U.S. Poised to Retake Crown as World’s Top LNG Exporter

The United States is on track to become the world’s biggest exporter of liquefied natural gas (LNG) this year – ahead of current market leader Australia – once a fire-idled Texas plant is restarted, according to Reuters data.


A June fire sidelined Freeport LNG, the second biggest U.S. export facility, and cut U.S. exports of the fuel by about 2 billion cubic feet per day (bcfd). That outage dropped the United States behind top exporter Australia as global demand for the fuel boomed.


In 2022, U.S. exports of natural gas as LNG rose 8%, just shy of Australia. In 2021, the United States was third in exports behind Australia and Qatar, which sold about 10.5 bcfd and 10.1 bcfd of gas as LNG, respectively, but was poised for the top spot in 2022 with the start of Venture Global LNG’s Calcasieu Pass plant in Louisiana early in the year.


Gladding-Hearn Refitting Ferry for Government of Bermuda

The Government of Bermuda’s Marine and Port Services has chosen Gladding-Hearn Shipbuilding to undertake a major refit of the 700-passenger ferry Bermudian. Built in 1988, the 118’ steel vessel completed the 635-mile crossing of the North Atlantic, arriving at the Somerset, Mass. shipyard, this week. With engineering and project management by Gladding-Hearn and Propulsion Data Services, and Class oversight by Lloyd’s Register, the refit is scheduled for completion in mid-2023. Among the myriad items to be removed, repaired or replaced, the hull will receive repairs as required by Class and repainted. 




If you have any questions, please do not hesitate to contact the SCA staff.