Blue Economy: Advancing American Fisheries, Maritime Strength, Coastal Economies

Good morning.

Health effects.

I wanna welcome our distinguished witnesses. Apologize for my uh tardiness, but I think at least three of you understand I just got in from Alaska last night and you uh know what that's like. So welcome especially to the Alaskans. And uh This is a subcommittee hearing that examines the importance of America's blue economy and the opportunities it presents for economic growth, innovation, job creation, and national security. The blue economy encompasses the industries, activities, and of course the communities that rely on our oceans, coasts, great lakes to create economic opportunities, support jobs, strengthen national security, and sustain coastal communities, including the American fishermen. The blue economy is also central to America's economic strength. In twenty twenty-two, it generated more than four hundred seventy billion dollars in goods and services and supported two point four million jobs. It is one of the fastest growing sectors in America, in our economy, and indeed the world, encompassing commercial fisheries and seafood, sport fisheries, subsistence fisheries, maritime transportation, ports, tourism and recreation, and much more. For the United States, and especially for coastal states like my state, the great state of Alaska, these industries and community are not optional, they are essential. I always do a little bit of bragging about the great state of Alaska here, but when we talk about coastline, we have more coastline than the rest of the country combined. I have a colleague from Minnesota here, who I respect a lot. Uh, she talks about her state having ten thousand lakes. My state has three million lakes. Ameri- America is a maritime nation. Our economic success, food security, supply chains and national defense depend on safe, healthy and productive oceans. This hearing comes at a critical time as a, as our nation races to strengthen uh our maritime industries and secure our place in the global blue economy, but so are other countries. The federal government is making significant investments and taking important steps to ensure America remains competitive and our coastal communities continue to thrive seafood and of course our fishermen coastal communities remains one of the pillars of the blue economy. Alaska is the superpower of seafood, I like to say, producing more than sixty percent harvesting more than sixty of all commercial, sport and subsistence seafood in America, and providing roughly ten billion meals of healthy protein, wild Alaskan fish each year. Our fisheries support thousands of jobs, sustain coastal communities and help feed both our nation and the world. President Trump's executive order on restoring American seafood competitiveness recognizes an important reality. Seafood competitiveness is economic security and even national security. At the same time, illegal, unreported and unregulating fishing remains a major threat, not just to global fish stocks and fair competition, but to the economic and national security of the United States. That is why my bipartisan fighting foreign illegal seafood harvest, or the Fish Act, which strengthens enforcement, improves international coordination, and targets foreign bad actors, particularly China, is so important to stop this illegal fishing, what Senator Whitehouse calls pirate fishing. Um, we passed that in the Senate recently, and I believe it's gonna be passed in the House soon. That will be the most comprehensive, um, IUU fish legislation in the history of the country. This builds on the bills Senator Whitehouse and I passed, the Save Our Seas Act, the Save Our Seas Two Point O Act, which were the most comprehensive ocean cleanup legislation in American history. And right now, in this committee, we are working on my comprehensive by-catch bill that we introduced last year. We are hoping to mark that up. That will be the most comprehensive by-catch legislation in American history. Healthy oceans are both an environmental priority and an economic necessity, and a national security issue. tourism, charter fishing, wildlife viewing, and countless small businesses depend on sustainable fisheries and healthy marine ecosystems. Alaska is also seeing exciting innovation through our growing mariculture industry where kelp and shellfish growers are creating new opportunities and jobs in coastal communities science and data collection are foundational to the long-term success of the American blue economy. Fisher fishery surveys and stock assessments support sustainable fisheries management. And that is NOAA's key mission, and this committee reminds them of that very regularly. Likewise, hydrographic services, including coastal mapping, charting, and biometric surveys are essential for safe navigation, commerce, and maritime operations across every sector of the American blue economy. Advancing our blue economy also requires strengthening America's maritime ports, ma- marine highways, vessels, terminals, and logistics systems are essential to moving goods, supporting coastal states, maintaining resilient supply chains, while enhancing our national security. That is why the administration's maritime action plan is so important. Strengthening America's maritime transportation will require long-term investment workforce development and strong public-private partnerships that improve port capacity, modern infrastructure, support domestic vessel operators, and ensure reliable transportation networks for coastal communities within and across states. Tourism is another driver of the American blue economy. Visitors bring significant ra- revenue directly to our local communities, making it important that America remains competitive as a global destination. That is why I introduced the Visit USA Act fully fund Brand USA, the public-private partnership responsible for promoting the United States as an international travel destination. Ultimately, this all comes back to people. The blue economy supports millions of Americans, fishermen, processors, mariners, sport fishermen, welders, scientists, engineers, military personnel, charter operators, tourism workers and small business owners across the United States. Yet workforce shortages remain one of the great challenges across nearly every sector. If we are serious about advancing the blue economy, we must invest in workforce development, training, apprenticeships, and educational opportunities to prepare the next generation of maritime professionals. The United States possesses some of the richest ocean resources in the world, the best-managed fisheries in the world. With the right investments, policies and partnerships, we can unlock the full potential of America's blue economy, while strengthening our strengthening our economic and national security and supporting coastal communities for generations to come. I look forward to hearing from our witnesses today, many of whom traveled far from the great state of Alaska, like I did last night, and to opportunities ahead, challenges they face, and the policies needed to ensure a strong and prosperous maritime future and blue economy for America. I now recognize the ranking member for any opening statement she may have. Thank you.

Thank you, Chairman Sullivan, and thank you so much to our witnesses for being here. We look forward to your testimony. Uh, Delaware may be small. Um, you mentioned that you have millions of lakes, and our colleague from Minnesota has thousands of lakes. We have tens of lakes. We're small, but we're mighty. We are urban, suburban, rural, and coastal. And because of that, um, this conversation is particularly important to my state as well as our country, because coastal communities like the ones that call Delaware home rely on the maritime, or blue, economy. My home state sits on the Atlantic Ocean between the Chesapeake and Delaware Bays, putting us in a perfect location to drive innovation and opportunity in the blue economy. And we do. The University of Delaware, Delaware State University, and Delaware Technical Community College collaborate on groundbreaking maritime, marine research, underwater robotics, and coastal infrastructure. Our growing aquaculture industry continues to create new jobs, while providing healthy, sustainable sources of food. Thanks to funding from a Port Infrastructure Development Program grant. The port of Wilmington is about to begin an historic expansion that will quadruple, quadruple its capacity. And millions of visitors head to the first state each year to enjoy our pristine beaches, bays, and coastline. All told, Delaware coastal economy supports over one hundred thousand jobs, generates over twenty-two billion dollars in economic output, and is growing over five times faster than the rest of our state. But this isn't unique to my state. The blue economy is a huge driver of economic growth and job creation across the United States. NOAA estimates that the marine the marine economy contributes over a half a trillion dollars in GDP annually. Unfortunately, the administration has stifled and in some cases, refuse to provide our coastal communities with the support they need to thrive. Propose Noah budget cuts of over one billion dollars, which will undercut the agency's critical mission to support sustainable fisheries and give coastal communities the tools they need to thrive. The administration terminated or withdrew roughly six hundred and seventy-two million dollars in port infrastructure development grants. meant to support the offshore wind industry, delaying critical investments in my state and the expansion of cheap and cheap and sustainable energy at a time when Americans need it most. And they pushed an unprecedented Jones Act waiver that will further undermine American shipping competitiveness while doing little to address the inflation and energy crisis Americans are experiencing. Yes. And while this correct. And while this this administration has correctly identified our vulnerability to Chinese-made port equipment, they impose tariffs without any plan to support domestic industries and bring critical manufacturing jobs home. So while I commend the administration for trying to set a vision to maintain economic competitiveness and ensure national security, the actions that I have seen missed the mark for our country and our needs right now. We can all agree we need to invest in and grow our maritime industrial base. And what I'm hoping to get out of today's hearing is a bipartisan path forward to a better to better support our coastal communities and improve our national and economic security. And I look forward to the conversation and I yield back.

Thank you, Senator Blum-Rochester. Now, speaking of uh national economic uh and national security, we have the chairman of the armed services committee here. I'm very honored. Uh, Mister Chairman, would you like to say a few words, also the senator from Mississippi who knows a little bit about the blue economy.

Well, it's hard to tell uh Dan Sullivan, no, I I had declined to make a statement, but I I do think now I'll I'll read um a a five minute statement in its entirety. No, I I'm Let me just say, indeed, uh, the the the domestic maritime um, industry has everything to do with national security, as I hope our distinguished panelists will uh point out in some of their testimony. I have a few points to make. I may try to do those during questions, but I do appreciate the comments of the distinguished chair and the distinguished ranking member, and I uh yield.

Thank you. Well, we have some distinguished witnesses, and I'd like to introduce them. Mister Tommy Sheridan, he's the Director of the Alaska Blue Economy Center at the University of Alaska Fairbanks. Mister Sheridan has lived in Alaska for over two decades, focusing on the commercial fishing industry and other elements of the blue economy. As the Director, Mister Sheridan focuses on growing the Alaska blue economy through balancing stewardship and sustainable use of our marine resources. including growing workforce development and mariculture initiatives across the state. Next we have Mister Jeremy Woodward. Woodrow, Executive Director of the Alaska Seafood Marketing Institute. Mister Woodrow is born and raised Alaskan whose family has commercially fished in Southeast Alaska for over five decades. He has practiced marketing and public relations in the fields of seafood state and local government. throughout alaska since two thousand two uh we also have mr. nathan wardwell managing partner of joi surveys mr. wardwell has more than twenty years of experience measuring water levels in vertical datums he brings extensive knowledge and expertise in coastal surveying an essential part of maintaining our ability to access and navigate our coasts and waterways safely. And finally, we have Mister Clayton Heil, Vice President, and Global of Government Relations at Crowley Marine Maritime Corporation. Mister Heil leads the company's engagement with federal, state, and local, and international government stakeholders on policy and regulatory matters affecting its transportation, logistics, and energy and maritime operations. Welcome again to our witnesses. You will each have five minutes to deliver an oral statement. A longer written statement will be included in the record, and we will begin from left to right here, beginning with you, Mister Sheridan. You have the floor.

Thank you, Chairman Sullivan, Ranking Member Blunt Rochester, and distinguished members of the committee. Thank you truly for this opportunity. It's an honor to be with you here today. My name is Tommy Sheridan. and I do serve as the director for the Alaska Blue Economy Center at the University of Alaska Fairbanks. However, the test testimony is provided in my personal capacity as a parent to Alaskan school children, and as a resident of coastal Alaskan communities these past twenty-four years. Several years ago, deep in the Alaskan bush, I was attacked by a brown bear. When a bear charges, instinct screams at you to run. But if you run, you could die. Survival depends on preparation, tools, and the grit to stand your ground. I survived the attack and it fundamentally changed how I look at resilience. Today, our coastal towns face their own existential crisis. We are losing young families to economic stagnation and rising costs. Right now, the instinct for the next generation is to do what makes sense in a panic, turn around and leave. But when families leave coastal Alaska, we don't just lose a line on a census report. We lose a classroom. We lose a volunteer firefighter. We lose our future. For over twenty years, I've worked in fisheries management and workforce development in Alaska. My wife and I are raising our kids in coastal Alaska. This isn't an abstract policy debate for us. It's survival. To stop the flight, we must change the horizon. We must imagine an Alaska where science, fisheries, workforce development and innovation work together so the next generation can build thriving futures in coastal communities. For decades, we viewed Alaska's blue economy largely through resource extraction. It is our backbone, but the future is a knowledge-based economy, driven by data, technology and collaboration. Our crisis isn't just tied to an abundance of fish. It is a gap in connectivity. We have incredible traditional industries alongside emerging frontiers, like mariculture and marine technology. To bridge them, I believe that we must start at the very beginning with K through twelve education. A quiet revolution is already happening in Alaska. Tribal partners, schools, and community and industry leaders are joining forces. Programs like Science Olympiad, Teaching Through Technology, and Prince William Sound College prove that when you give a K through twelve student a drone or a data set, they don't just learn STEM, they see a career. They realize that marine science happens on the boats and docks right outside their front door. When we invest in local education, we actively build the world we need to see. But a bridge cannot stand without pillars. Our fisheries management system relies on world-class data. To keep Alaska leading, we must solidify partnerships between NOAA, universities, and tribal organizations. Senator Sullivan, your focus on maritime infrastructure has laid the foundation, and now we must build the superstructure. I urge this subcommittee to support four pillars. First, investment in K through twelve STEM and local workforce development. Second, funding for fishery science and NOAA partnerships. Third, expanded community-based education and applied research. Fourth, innovation to ensure our communities remain economically unshakable. You don't survive a crisis by running away. You survive by equipping yourself to face it head-on. We do not need to abandon our heritage to embrace the future. We need to arm our youth with the tools to build it. So let us choose to invest, and let us finalize a reality where we no longer have to just imagine an Alaska, where science, fisheries, workforce development, and innovation work together, so the next generation can build thriving futures in coastal communities. Thank you, and I welcome your questions.

Thank you, Mr. Sheridan. Mr. Woodrow.

Thank you, Chairman Sullivan and ranking member, Blount Rochester and distinguished members of the subcommittee. It's an appr- I appreciate the opportunity to testify with you today. My name is Jeremy Woodrow and I serve as Executive Director for the Alaska Seafood Marketing Institute, also known as ASME. ASME is a public-private partnership between the state of Alaska and the seafood industry. Our mission is to increase the economic value of the Alaska seafood resource through marketing, education and outreach. We work domestically and in more than fifty international markets to build demand for Alaska's wild, sustainable seafood, supporting fishermen and processors, and strengthening the global reputation of the Alaska seafood brand. As the Chairman said, the Alaska seafood industry is foundational, not only to Alaska's economy, but to the nation's blue economy. Seafood is Alaska's largest private sector employer, supporting over forty thousand jobs and generating more than five billion in added economic value. Nationally, Alaska accounts for roughly two-thirds of the US commercial seafood landings, and supports more than ten billion in economic activity. But what truly sets Alaska apart is our dedication to sustainability. Our fisheries are managed under a science-based precautionary system that is enshrined in Alaska's constitution. Sustainability is not just a marketing claim, it's a commitment to the future. It is reflected in every part of our industry, from our multi-generational fishing families to strict management practices, full resource utilization, and rigorous third-party certification. This model has allowed Alaska to avoid resource depletion and remain a global leader in responsible fisheries. To Alaskans, sustainability means that Alaska's seafood resource, fishing families, coastal communities, and way of life will continue to thrive for generations to come. Alaska's seafood is also a major contributor to global food security. Alaska's seafood can be found in over ninety countries, providing high-quality, wild protein to consumers around the world. Key markets like the European Union and Japan directly rely on Alaska products, while other countries such as China and those in Southeast Asia play important roles in processing and global distribution. However, the global seafood marketplace is ever-evolving and increasingly competitive. Alaska producers face significant pressure from foreign competitors, particularly Russia, where lower costs and less stringent regulations allow products to enter global markets at artificially low prices and frequently through indirect channels. At the same time, US producers face a growing web of tariff and non-tariff barriers. Uneven trade policies, complex certification requirements and new systems like the European Union's catch, traceability platform create additional burdens for responsible producers often without effectively targeting bad actors. Here at home, Alaska seafood must also compete against imported products that are frequently produced under weaker environmental and labor standards. Maintaining a fair and competitive domestic market critical to our nation's food security and supply chain integrity. Federal programs have been essential in helping address these challenges. USDA seafood seafood purchasing programs provide stability during market disruptions while delivering nutritious seafood to American families. Marketing investments, such as the Market Access program, have helped ASME expand global demand and build brand recognition. And NOAA's Salt-n-Salt Kennedy grants have supported innovation, efficiency, and product development across the industry. The America First trade promotion program offers additional opportunity to increase demand for Alaska seafood and other products globally. We also appreciate the establishment of the USDA Office of Seafood, which represents an important step toward better coordination and recognition of seafood within federal policy. Looking ahead, continued federal engagement and support will be critical. Investments in science, innovation, market development, infrastructure, and trade equity are all necessary to ensure that US seafood producers can continue to compete on a level playing field. Alaska seafood tells a uniquely American story, one of stewardship, resilience, and leadership. With the continued partnership of Congress and federal agencies, we have an opportunity to sustain the success and build upon this incredible maritime history, through supporting jobs, strengthening food security, and reinforcing the United States' position as a global leader in the production of wild sustainable seafood. Thank you for your time today and your commitment to our nation's seafood industry. I look forward to working together to address these opportunities and challenges, and I welcome any questions you may have.

Great. Thank you, Mr. Woodrow, Mr. Wardell.

Uh, Chairman Sullivan, uh, Ranking Member Blunt Rochester and distinguished members of the subcommittee. Thank you for the opportunity to testify today. I was born and raised in Alaska and raised in a family there. and own a small business and anchors and employs fifteen people. I worked in hydrographic services for more than twenty years, that sector that maps the sea floor, measures water levels, and provides the foundational data that makes safe navigation possible. That work has taken my company to every coast of the United States, from the Arctic to the Caribbean to the Great Lakes, and provides the foundational data, oh, excuse me, and almost always in partnerships with federal agencies. That experience gave me a broad perspective on how many industries depend on this data and how much is still missing. The simple truth is truth is this, the blue economy cannot function without hydrographic services. Without accurate maps of the sea floor and real-time water level information, mariners cannot safely navigate. The same data that guides vessels safely into into port is used to model tsunamis, forecast storm surge, identify critical mineral mineral resources, root undersea fiber cables, and monitor long-term sea level change. It is the foundation between between beneath every sector of the blue economy, fishing, shipping, recreation, energy, and national security alike. Yet, as of twenty twenty four, forty six percent of US coastal, ocean, and great lakes waters remain unmapped to modern standards. In Alaska, that figure is even more striking. Sixty two percent of more than one point two million square nautical miles of Alaska's waters are unmapped. For a state with more than thirty-three thousand miles of shoreline, and the nation's only access to the Arctic Ocean, that gap is not just a data problem. It is an economic constraint, a safety risk, and a national security vulnerability. Closing it will require not only sustained investment and strong partnerships, but continued innovation in how we collect, integrate, and deliver hydrographic data at a scale that traditional methods alone cannot. achieve. Closing that gap requires both government and private industry working together. The twenty nineteen presidential memorandum on ocean mapping of the US exclusive economic zone and the shoreline in near shore of Alaska was an important step in building a plan but not every port in America yet has the real-time water levels and current bathymetry that mariners need to navigate safely, w- while maximizing their load capacity. And as vessels continue to grow larger, that need only intensifies. Senator Sullivan, I want to thank you personally for your work to bring more icebreakers to Alaska. I had the privilege of sailing aboard the US Coast Guard Cutter Healy in the Arctic during graduate school, an experience that shaped my understanding of how icebreakers underpin our national security, emergency response, and scientific capabilities in ways nothing else can replace. i also want to thank you senator mikalski and senator cantwell for introducing the tsunami warning research and education act of twenty twenty six in august twenty twenty five a landslide in tracy arm a fjord in southeast alaska generated a mega tsunami with run-up reaching nearly one thousand six hundred feet above sea level my company operated a water level station in an adjacent fjord installed on behalf of uh the alaska department of natural resources to provide data for a NOAA program. That station captured the tsunami in real time, and the data is now part of the scientific record. It exists because someone invested in putting in an instrument there, and because a state agency, a federal program, and a private company were working together. That is the case for this investment. I will leave you with three points. First, hydrographic data is not a government overhead cost, it is the infrastructure the blue economy is built on. Second, delivering hydrographic data at the scale of Alaska requires demand requires demand strong public-private partnerships and continued investment in innovation from new sensor technologies to modern datum frameworks to real-time observing networks that can operate year-round in ice-affected environments. And third, Alaska's thirty-three thousand miles of shoreline and its position as America's arctic gateway presents an extraordinary blue economy opportunity. One we can only realize if we invest in knowing what lies beneath the waters waters. Thank you and I look forward to further discussion.

Thank you, Mr. Warwell, and uh, stay tuned on the icebreakers. Might have some more uh announcements coming up here from the Coast Guard on home porting icebreakers in Alaska, which is by the way, the place you would think the Coast Guard would have done that about fifty years ago putting the icebreakers in the state with the ice. But that's actually never happened. So We're working on that one too. Okay, Mister Heil, you're up.

Chairman Sullivan, Ranking Member Blunt, Rochester, and members of the subcommittee, my name is Clay Heil, and I serve as Vice President of Global Government Relations for Crowley. Thank you for the opportunity to testify. Crowley is a privately held US owned maritime, logistics and energy company founded in eighteen ninety two, and headquartered in Jacksonville, Florida. For more than a hundred and thirty years, Crowley has served commercial and government customers in some of the most difficult environments in the world. Today our business includes logistics, vessel operations, fuel transportation and distribution, ship assist and escort services, vessel construction management, and government service services. We are also deeply committed to Alaska, where Crowley has operated for more than seventy years. Crowley employs hundreds of Alaskans in sports communities across the state by purchasing, transporting, storing, and distributing the fuels needed to heat homes, operate schools and businesses, fly aircraft, and power the vessels alaska's fishing economy in western alaska crowley operates coastal and river barges serving remote communities where maritime transportation is not just a convenience it is the supply chain crowley's work in alaska demonstrates why this hearing matters the blue economy is not an abstract policy concept this is the daily work of fishermen mariners shipyard workers port employees fuel distributors tug and barge operators seafood processors and the families and communities that depend upon them The Jones Act is essential to that system. It ensures that cargo moving between American ports is carried on vessels that are American built, owned, crewed, and flagged. It also supports the domestic maritime workforce, a US shipbuilding and repair base, and dedicated trade lanes that provide regular reliable service to American communities. That reliability is especially important for the fishing industry and for remote markets. Fishing operations depend on s- the steady fuel deliveries, functioning ports, trained mariners, and vessels that can carry can safely operate in difficult environments. Those capabilities do not appear overnight. They are built through long-term private investment, and the Jones Act gives companies the confidence to make those investments. Crowley strongly supports the administration's maritime executive order and the bipartisan Ships for America Act. Both recognize that the United States must rebuild its maritime industrial base expand US flag shipping grow the pool of American mariners strengthen domestic ship building and ensure that our nation has the commercial maritime capacity needed for economic security and national defense. Those are the right goals, and Crowley is prepared to help meet them. For decades, we have invested in American shipyards, US-built vessels, American mariners, port infrastructure, and the domestic maritime services that support American communities. But those investments depend on stable, predictable policy environments. The current Jones Act waiver undermines those efforts. Crowley recognizes that true emergencies may require carefully tailored wai- waivers. Congress has provided a, a process for that purpose, and the Maritime Industry has understood that national defense and emergency response come first. Crowley is proud of its long-standing role supporting national security missions. Our commercial operations employ and train American mariners and provide access to vessels, logistics capabilities and global transportation networks that support military seal of Readiness and crisis response when the nation needs them. But broad or recurring waivers that are not tied to a specific vessel need, a specific cargo need, or the actual non-availability of US vessels creates a very different problem. Such waivers send the wrong message at the wrong time. At the very moment administration and Congress are calling for more US flagged vessels, more American mariners, more shipyard capacity, and more private investment. The waiver invites foreign flagged vessels into domestic trades. and weakens the market certainty needed to build that capacity. The current waiver has also not solved the underlying energy problem. It does not create new supply or make global tanker markets more vol less volatile. Instead, it shifts cargo away from American vessels and American crews, while weakening the long-term business case for the domestic maritime capacity we will need in the next crisis. Crowley stands ready to work with this committee, the administration, and our partners across the country to strengthen America's maritime economy, support our fishing and coastal communities, and assure the United States remains a maritime nation. Thank you for that opportunity to testify, and I look forward to your questions.

Thank you uh to all the witnesses, that was a great overview of many uh important topics. The um the topic of the blue economy itself is kind of uh broad. So, Mister Sheridan, why don't we start with you, since you uh focus on this a lot at UAF and they have a great program on Um, you work across many sectors of Alaska's blue economy. How do you define the blue economy and where do you see the greatest opportunities for growth over the next decade, not just in Alaska, but I would say throughout the United States?

Thank you for the question, Chairman Sullivan. Uh, I think that your introduction on the blue economy was was very good, very inclusive. Blue economy is a very broad and expansive term. And I like to describe it as uh everything that happens in places like Cordova and Valdez, where I've lived for sixteen years now. Um in both communities we have one of North America's largest salmon aquaculture programs. We have renowned commercial fisheries, certainly associated with marine shipping. Um and Valdez of course is the terminus for the Trans-Alaska pipeline and so energy is a a big industry in in that region. Um and with its access to the road system, uh Valdez is positioned to be a significant port for national defense and national security. So it really runs the gamut in in coastal Alaska. Some of the areas of opportunity that that we've been involved with, um and have been tracking includes um making just better use, more full use of the existing infrastructure and resources that we have. Um with the seafood industry there's been a lot of interest lately um on Icelandic models, and the work that's being done there through the Iceland ocean cluster to make uh more full utilization of their cod fishery resource, I think there's opportunity to to do that in Alaska. One example of that that we've been involved with is a discussion around the potential to integrate mariculture into Alaska's salmon hatchery system, for example. That's something that folks are interested in, um in addition to the development of um energy in the vicinity of those sites. Uh tourism is rapidly becoming one of the largest sectors in Alaska's blue economy. There have been significant port developments in Cordova, Valdez, Whittier, Seward, all in in our neighborhood of Prince William Sound with um additional significant investments to come in Nome. And so I think we'll see a growth of that industry in that direction. Um, but in general, just to answer your question, of course it's a it's a significant opportunity. Estimates are for the global ocean economy to grow two or beyond three trillion

Mm.

by twenty thirty and and certainly much more so globally and um certainly

In the US or globally?

much more so in the next decade so those are a few things that that we're tracking. and interested in.

Great. Uh, Mister Wardwell, you um you talk about when people hear hydrography and ocean mapping they may not immediately connect that to economic growth. Can you explain how investments in mapping directly support jobs and economic activity? And additionally, you mentioned that not having uh mapping done is a national security vulnerability. Uh, I'm sure you recall a lot of Alaskans, The last summer we had a Chinese research fleet off the coast of Alaska all summer. Uh, that was a spy operation. We all know that. Right? And trying to map the floor and find our cables and maybe sub-routes. I mean, that's what they were doing. They weren't doing research, wasn't friendly. They were spying on us. So, can you talk a little bit about that national security vulnerability as well?

Yeah, um, so. the ocean mapping and the blue economy obviously are tied together right you can't do anything in the in the ocean without wanting to know or needing to know something about the water depth uh whether you're doing a construction for a coastal facility um or you're trying to identify an area to preserve um uh one of the i think the um Collapse of the Francis Scott Key um bridge is a good example. Um, in order to open up commerce into those ports, you had to map the sea floor to find safe routes for the vessels to come in and out of the port. Um, every foot of drafts for a vessel equates to additional

Mm.

revenue and profit for companies in more efficient commerce. So those are directly tied to uh ocean mapping. Um, all of the work from the the fisheries um and everything else is uh is fundamental to achieving those goals. From a national security standpoint, I I read the uh the news in Alaska, I see the uh the articles about the boats and the burying uh from foreign countries. Um, we can't n without understanding our coasts and our sea floor can't safely navigate. Um, we can't move commerce.

We need to understand our coasts and sea floor more than the Chinese understand our coasts and sea floor. Isn't that like an imperative? like figure out what we have before they do you know and those guys were up all summer last summer trying to figure it out as you know

agreed uh as somebody in the mapping industry it's always kind of blown me away that we have that the moon is mapped better than our uh oceans on earth um uh i think there's some value there

good thank you senator blount rochester

thank you mr. chairman um i wanna start off um with talking about aquaculture. Uh, the United States has one of the world's largest ocean economies, yet we still import the majority of our seafood, um, that we consume. Uh, shellfish aquaculture offers economic, environmental, and food security benefits for coastal communities. So, I'd like to start with you, Mister Woodrow. Uh, how can shellfish aquaculture strengthen America's blue economy, particularly in supporting domestic seafood production, coastal jobs and healthy marine ecosystems.

Thank you, Ranking Member Blunt-Roschester, for that question. Um, I will, I will try to answer your question as best I can. I am a wild fisheries expert when it comes to marketing. Um, we are are growing, and no pun intended, our aquaculture sector in Alaska, uh, especially in the terms of, uh, oyster aquaculture as well as seaweed aquaculture. Um, I will say that the investment in those industries uh is really beginning it's been a they've been around for decades but uh they did get receive a a significant build back better uh in a grant that was about fifty million dollars several years ago to heavily invest more into that industry um as mister sheridan said though we are looking at how we can bridge the gap between our growing mariculture industry and aquaculture industry and our existing coastal economies with our wild capture fisheries um One thing that's really unique in Alaska is the timing of our fisheries. We have a lot of seafood processing plants that sit empty throughout the year. Um, they're really busy throughout, uh, those pulse fisheries, and there are vacancies throughout the year where those could be filled with with other fisheries, and that keeps the lights on, keeps the economy going in that that, uh, those small communities. Um, and, and frankly, it's a opportunity for growth. Um, so that's one area that we definitely need to continue to explore, and, and that's something that Alaska is doing in trying to be a leader in. um i will say when it comes of aquaculture as well is when it comes to wild capture fisheries for the most part we look globally our wild capture fisheries are maxed out right we're doing a good job of most of the part of of sustainably managing and yield and and catching those fisheries if we need to continue to feed the world we need to have find aquaculture as well to feed the world we need to do it responsibly and we need to look at areas where we can do that responsibly and so that's one thing that alaska is doing and why

You you mentioned just the growing uh demand both domestically as well as globally, um but we still see that the industry faces some significant barriers. Could you talk about some of the biggest challenges that are limiting the responsible growth of shellfish? And also what actions that we as Congress or federal agencies like NOAA or USDA can take to better support the industry.

Yep. Thank you for that question. Uh, for Alaska, probably our greatest challenge is always our our greatest strength as well, and it's our remoteness. Um, the economy of scale in Alaska is always challenging. We're we're far away from the rest of the world, so being able to move our product to the rest of the world is costly. Um, getting product to Alaska to be to start an investing is always costly. Uh, and so we were always looking at ways to try to exp expand that efficiency, but we need to start small and continue to grow from there. And that's, and I can't speak to the rest of the um, the rest of that industry across the US cuz I really am an Alaska expert, but I know that's probably been the most difficult aspect to growing that aquaculture industry in Alaska is really it's the economy on scale, and so remoteness, it just, it's really, really expensive to do business in Alaska and these remote areas.

Thank you. Um, I'm gonna turn to the Jones Act. Um, I'm concerned by recent actions that the administration has taken to undermine the maritime industry and our global competitiveness. And in response to energy price inflation caused by the Iran war, um, we've taken some unprecedented steps of creating a prolonged Jones Act waiver. Uh, and I think it was you, Mister Heilert, said limited, you know, targeted, that makes sense. Um, after issuing a sixty-day waiver in March, the president decided to extend the waiver an an additional ninety days uh, as the war continues on. Uh, when it is currently set to expire, uh, mid-August, the one hundred and fifty day waiver will be the longest in modern history. And we're seeing just the the impacts of this waiver. It's reported that it's halting a one billion dollar investment. And just last week we saw a vessel with ties to the Chinese government, carrying cargo between US ports. Mister Heil, how have Jones Act waivers chilled investment in our domestic maritime industry, and how will this affect the workforce?

Well, thank you for the question, Senator, I I guess on the workforce part I'll I'll start with that. Um, we're hearing from our own mariners. US citizens uh are are mariners who are asking what i what does this waiver mean for our jobs, long term? If if waivers are to cont- continue and re-occur what does that mean for me and my employment? So, that's a concern for us and for our workers. And you mentioned the Chinese vessel that moved uh asphalt from uh Louisiana to Connecticut last week. It's a Chinese, you know, crude vessel, Chinese-built vessel, operating in our territorial waters under a national security waiver. Um, moving asphalt.

Mm.

Um, th- that's concerning on a variety of levels, um, for the investment community, um, when waivers are extended like this and this is as you mentioned uh there is no historical parallel for a waiver of this duration or covering this many products over six hundred um it uh causes investment to uh pull back

hmm

um shipyards will kind of in the short term probably not see severe impacts it's more of the longer term of future investments um companies like ours are looking to recapitalize our fleets if the jones act looks unstable We're not gonna do that. Uh, for shipyards, uh, US shipyards, they may see orders being cancelled. Um, they s- may see their order book dry up, um, for Jones Act vessels. So, uh, I think it's concerning on multiple levels the duration and the uncertainty that it brings to the marketplace and to private capital who won't invest in unstable markets.

Thank you, Mr. Heil. I I have more questions and I don't know if you're gonna do a round two.

Yeah, we will do a we will do a round two, for sure.

I can submit for the for the record. Thank you and I yield back.

Chairman Wicker.

Uh, thank you, Mister Chairman, and let me just say that that um no one has done more for this area of subject matter than Senator Dan Sullivan of of Alaska. And and I very much uh appreciate the the fact that uh he he's uh a valuable member of the committee that I chair, the Armed Services Committee, and and he realizes as in his capacity as subcommittee chairman on this committee the um the inner workings of um of of national security with everything that we've talked about today i'm glad the ranking member has um mentioned um the jones act and and so i wanna continue to to try to delve on that um i've always been a big supporter of the jones act and actually the jones act was was sort of considered uh holy writ um, in both parties for a long time. Now we do see, um, a a number of people, um, from from both ends of of the ideological spectrum attacking the Jones Act now. And I think, Mister Heil, you would agree that that we need to step up our defense of the Jones Act. Um, what is the national security aspect of, uh, ensuring that we have a uh a large enough domestic fleet

uh uh senator uh department of defense department of war have have said uh for decades that the jones act is critical for their efforts uh not only uh to provide the the mariners uh in a surge capacity requirements that are needed in times of war also the vessel vessels that are needed that support uh our us military um we are in the tanker security program we have three tankers that support department of defense assets around the world providing fuel and supplies um that's just one part of the us uh commercial effort that supports our defense efforts um also the shipyard capability is extremely important we need to maintain our shipyards and having the workers that know how to build commercial ships those are the same workers that are building our military vessels um so we need to maintain that whole infrastructure to uh counter our uh counter China and others uh who are building their naval assets around the world and who are in fact incorporating their commercial assets into their battle plans um so we need to have the US flag fleet that is able to project power worldwide and then provide supplies for our country in times of war

well said uh i think we would agree though and i'll all four of you would probably agree we we really still don't have uh enough uh of a domestic um fleet. Why what do we need to do in addition to the Jones act to build more uh commercial type ships in the united states of america we just not getting there and this this point is made by people who are attacking the jones act

uh the the biggest thing that would or biggest help that would be need is cargo to put on those vessels i mean we we make investments in new ships um based on cargo demand we have

during time during times when we're not at war