Energy Shipping Rules Eased for Alaska, Hawaii, and Puerto Rico: What It Means for Local Power Grids

The “Noncontiguous Energy Relief and Access Act of 2025” is a regulatory change focused entirely on how energy-related goods get shipped to noncontiguous U.S. areas—that’s Alaska, Hawaii, Guam, and Puerto Rico. The bill defines Energy Products broadly, covering everything from the fuel (like liquefied natural gas) needed to generate electricity, to the actual hardware, such as generators, solar panels, wind turbines, and even the batteries used for storage. The core of the bill is simple: it creates a specific exemption so that a major federal shipping restriction (found in 46 U.S.C. 55102(b)) no longer applies when moving these specific energy items between the mainland U.S. and these territories.

The Shipping Loophole: Energy Edition

Think of this bill as creating a fast lane for power grid maintenance and expansion in places that already face high energy costs and complex logistics. The existing federal shipping rule it bypasses is a big one, generally requiring that goods shipped between U.S. ports must be carried on U.S.-built, U.S.-owned, and U.S.-crewed vessels. By exempting Energy Products and Energy Sources from this rule for Covered Noncontiguous Trade, the bill opens the door for other ships—potentially foreign-flagged or cheaper-to-operate vessels—to transport essential power infrastructure and fuel to places like Honolulu or San Juan.

Who Benefits and Who Pays the Freight?

If you live in Puerto Rico or Hawaii, this could be good news. The goal is clearly to streamline the supply chain, which could make it faster and cheaper to repair power grids after a storm or install new renewable energy projects. For example, if a major generator part breaks in Anchorage, this exemption could allow it to be shipped immediately on the first available vessel, potentially cutting weeks off the delivery time and saving money that would otherwise be passed on to residential electric bills. This regulatory relief is a direct benefit to energy companies operating in these areas and, ideally, to the consumers they serve.

However, regulatory exemptions always come with trade-offs. The existing shipping restrictions were put in place, in part, to protect the domestic maritime industry, including U.S. shipbuilders and the union labor that crews these vessels. By allowing non-compliant ships to carry this specific, but critical, cargo, the bill effectively reduces the market for the domestic U.S. fleet. While the intent is to bring relief to noncontiguous areas, the cost might be borne by U.S. shipping companies and maritime workers who rely on those existing regulations to maintain their business and employment.