I 

115TH CONGRESS 

2D SESSION H. R. 5893 

To require a certain percentage of liquefied natural gas and crude oil exports 

be transported on United States-built and United States-flag vessels, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2018 

Mr. GARAMENDI (for himself, Mr. HUNTER, Mr. COURTNEY, and Mr. WITTMAN) introduced the following bill; which was referred to the Committee 

on Energy and Commerce, and in addition to the Committee on Foreign 

Affairs, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To require a certain percentage of liquefied natural gas and 

crude oil exports be transported on United States-built 

and United States-flag vessels, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Energizing American 

5 Shipbuilding Act’’. 


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1 SEC. 2. NATIONAL POLICY ON STRATEGIC ENERGY ASSET 

2 EXPORT TRANSPORTATION. 

3 (a) LNG EXPORTS.— 

4 (1) FINDINGS.—Congress finds the following: 

5 (A) Liquefied natural gas (LNG) is an ex6 plosive gas that can be hazardous to national 

7 import and export terminals and ports when 

8 mishandled. 

9 (B) LNG is a strategic national asset, the 

10 export of which will be used to preserve the 

11 United States tanker fleet and skilled mariner 

12 workforce that are essential to national secu13 rity. 

14 (C) For the safety and security of the 

15 United States, LNG should be exported on ves16 sels documented under the laws of the United 

17 States. 

18 (2) REQUIREMENT.—Section 3 of the Natural 

19 Gas Act (15 U.S.C. 717b) is amended by adding at 

20 the end the following: 

21 ‘‘(g) TRANSPORTATION OF EXPORTS OF LNG ON

22 VESSELS BUILT IN THE UNITED STATES AND DOCU23 MENTED UNDER LAWS OF THE UNITED STATES.— 

24 ‘‘(1) CONDITION FOR APPROVAL.—As a condi25 tion for approval of any authorization to export liq26 uefied natural gas, the Secretary of Energy shall reVerDate Sep 11 2014 18:19 Jun 01, 2018 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5893.IH H5893

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1 quire the applicant to transport the authorized ex2 ports on vessels that meet the requirements de3 scribed in paragraph (2) (including vessels with re4 spect to which a waiver is in place for the require5 ment under paragraph (2)(D)), so as to ensure the 

6 following: 

7 ‘‘(A) Starting in 2024, a minimum of two 

8 percent of the liquefied natural gas exported by 

9 vessel each year is transported on such vessels. 

10 ‘‘(B) Starting in 2026, a minimum of 

11 three percent of the liquefied natural gas ex12 ported by vessel each year is transported on 

13 such vessels. 

14 ‘‘(C) Starting in 2028, a minimum of five 

15 percent of the liquefied natural gas exported by 

16 vessel each year is transported on such vessels. 

17 ‘‘(D) Starting in 2030, a minimum of 

18 seven percent of the liquefied natural gas ex19 ported by vessel each year is transported on 

20 such vessels. 

21 ‘‘(E) Starting in 2032, a minimum of eight 

22 percent of the liquefied natural gas exported by 

23 vessel each year is transported on such vessels. 


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1 ‘‘(F) Starting in 2034, a minimum of ten 

2 percent of the liquefied natural gas exported by 

3 vessel each year is transported on such vessels. 

4 ‘‘(G) Starting in 2036, a minimum of elev5 en percent of the liquefied natural gas exported 

6 by vessel each year is transported on such ves7 sels. 

8 ‘‘(H) Starting in 2038, a minimum of thir9 teen percent of the liquefied natural gas ex10 ported by vessel each year is transported on 

11 such vessels. 

12 ‘‘(I) Starting in 2040, a minimum of fif13 teen percent of the liquefied natural gas ex14 ported by vessel each year is transported on 

15 such vessels. 

16 ‘‘(2) REQUIREMENTS FOR VESSELS.—A vessel 

17 meets the requirements described in this paragraph 

18 if— 

19 ‘‘(A) the vessel is built in the United 

20 States; 

21 ‘‘(B) the vessel is documented under the 

22 laws of the United States; 

23 ‘‘(C) all major components of the hull or 

24 superstructure of the vessel are manufactured 

25 (including all manufacturing processes from the 


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1 initial melting stage through the application of 

2 coatings for iron or steel products) in the 

3 United States; and 

4 ‘‘(D) the components of the vessel listed in 

5 paragraph (3) are manufactured in the United 

6 States. 

7 ‘‘(3) COMPONENTS.—The components of a ves8 sel listed in this paragraph are the following compo9 nents: 

10 ‘‘(A) Air circuit breakers. 

11 ‘‘(B) Welded shipboard anchor and moor12 ing chain with a diameter of four inches or less. 

13 ‘‘(C) Powered and non-powered valves in 

14 Federal Supply Classes 4810 and 4820 used in 

15 piping. 

16 ‘‘(D) Machine tools in the Federal Supply 

17 Classes for metal-working machinery numbered 

18 3405, 3408, 3410 through 3419, 3426, 3433, 

19 3438, 3441 through 3443, 3445, 3446, 3448, 

20 3449, 3460, and 3461. 

21 ‘‘(E) Auxiliary equipment for shipboard 

22 services, including pumps. 

23 ‘‘(F) Propulsion equipment, including en24 gines, reduction gears, and propellers. 

25 ‘‘(G) Shipboard cranes. 


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1 ‘‘(H) Spreaders for shipboard cranes. 

2 ‘‘(4) WAIVER AUTHORITY.—The Secretary of 

3 Energy may waive the requirement under paragraph 

4 (2)(D) with respect to a component of a vessel if the 

5 Maritime Administrator determines that— 

6 ‘‘(A) application of the requirement would 

7 cause unreasonable costs or delays to be in8 curred in building the vessel; or 

9 ‘‘(B) such component is not manufactured 

10 in the United States in sufficient and reason11 ably available quantities of a satisfactory qual12 ity. 

13 ‘‘(5) OPPORTUNITIES FOR LICENSED AND UNLI14 CENSED MARINERS.—Each Federal official respon15 sible for the issuance of a permit authorizing the ex16 port of liquefied natural gas shall require, as a con17 dition and term of the permit, that the permittee 

18 provide opportunities for United States licensed and 

19 unlicensed mariners to receive experience and train20 ing necessary to become credentialed in working on 

21 a vessel transporting liquified natural gas.’’. 

22 (b) CRUDE OIL.—Section 101 of title I of division 

23 O of the Consolidated Appropriations Act, 2016 (42 

24 U.S.C. 6212a) is amended— 


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1 (1) in subsection (b), by striking ‘‘subsections 

2 (c) and (d)’’ and inserting ‘‘subsections (c), (d), and 

3 (e)’’; 

4 (2) by redesignating subsection (e) as sub5 section (f); and 

6 (3) by inserting after subsection (d) the fol7 lowing: 

8 ‘‘(e) TRANSPORTATION OF EXPORTS OF CRUDE OIL

9 ON VESSELS BUILT IN THE UNITED STATES AND DOCU10 MENTED UNDER LAWS OF THE UNITED STATES.— 

11 ‘‘(1) CONDITION.—As a condition to export 

12 crude oil, the President shall require an applicant to 

13 transport the exports on vessels that meet the re14 quirements described in paragraph (2) (including 

15 vessels with respect to which a waiver is in place for 

16 the requirement under paragraph (2)(D)), so as to 

17 ensure the following: 

18 ‘‘(A) Starting in 2023, a minimum of one 

19 percent of crude oil exported by vessel each 

20 year is transported on such vessels. 

21 ‘‘(B) Starting in 2026, a minimum of four 

22 percent of crude oil exported by vessel each 

23 year is transported on such vessels. 


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1 ‘‘(C) Starting in 2029, a minimum of eight 

2 percent of crude oil exported by vessel each 

3 year is transported on such vessels. 

4 ‘‘(D) Starting in 2032, a minimum of ten 

5 percent of crude oil exported by vessel each 

6 year is transported on such vessels. 

7 ‘‘(2) REQUIREMENTS FOR VESSELS.—A vessel 

8 meets the requirements described in this paragraph 

9 if— 

10 ‘‘(A) the vessel is built in the United 

11 States; 

12 ‘‘(B) the vessel is documented under the 

13 laws of the United States; 

14 ‘‘(C) all major components of the hull or 

15 superstructure of the vessel are manufactured 

16 (including all manufacturing processes from the 

17 initial melting stage through the application of 

18 coatings for iron or steel products) in the 

19 United States; and 

20 ‘‘(D) the components of the vessel listed in 

21 paragraph (3) are manufactured in the United 

22 States. 

23 ‘‘(3) COMPONENTS.—The components of a ves24 sel listed in this paragraph are the following compo25 nents: 


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1 ‘‘(A) Air circuit breakers. 

2 ‘‘(B) Welded shipboard anchor and moor3 ing chain with a diameter of four inches or less. 

4 ‘‘(C) Powered and non-powered valves in 

5 Federal Supply Classes 4810 and 4820 used in 

6 piping. 

7 ‘‘(D) Machine tools in the Federal Supply 

8 Classes for metal-working machinery numbered 

9 3405, 3408, 3410 through 3419, 3426, 3433, 

10 3438, 3441 through 3443, 3445, 3446, 3448, 

11 3449, 3460, and 3461. 

12 ‘‘(E) Auxiliary equipment for shipboard 

13 services, including pumps. 

14 ‘‘(F) Propulsion equipment, including en15 gines, reduction gears, and propellers. 

16 ‘‘(G) Shipboard cranes. 

17 ‘‘(H) Spreaders for shipboard cranes. 

18 ‘‘(4) WAIVER AUTHORITY.—The President may 

19 waive the requirement under paragraph (2)(D) with 

20 respect to a component of a vessel if the Maritime 

21 Administrator determines that— 

22 ‘‘(A) application of the requirement would 

23 cause unreasonable costs or delays to be in24 curred in building the vessel; or 


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1 ‘‘(B) such component is not manufactured 

2 in the United States in sufficient and reason3 ably available quantities of a satisfactory qual4 ity. 

5 ‘‘(5) OPPORTUNITIES FOR LICENSED AND UNLI6 CENSED MARINERS.—The Maritime Administrator 

7 shall ensure that each exporter of crude oil by vessel 

8 provides opportunities for United States licensed and 

9 unlicensed mariners to receive experience and train10 ing necessary to become credentialed in working on 

11 such vessels.’’. 

Æ 


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