II 

115TH CONGRESS 

2D SESSION S. 2916 

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 SENATE OF THE UNITED STATES 

MAY 22, 2018 

Mr. WICKER introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

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’’. 

6 SEC. 2. NATIONAL POLICY ON STRATEGIC ENERGY ASSET 

7 EXPORT TRANSPORTATION. 

8 (a) LNG EXPORTS.— 

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


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1 (A) Liquefied natural gas (LNG) is an ex2 plosive gas that can be hazardous to national 

3 import and export terminals and ports when 

4 mishandled. 

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

6 export of which will be used to preserve the 

7 United States tanker fleet and skilled mariner 

8 workforce that are essential to national secu9 rity. 

10 (C) For the safety and security of the 

11 United States, LNG should be exported on ves12 sels documented under the laws of the United 

13 States. 

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

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

16 the end the following: 

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

18 VESSELS BUILT IN THE UNITED STATES AND DOCU19 MENTED UNDER LAWS OF THE UNITED STATES.— 

20 ‘‘(1) CONDITION FOR APPROVAL.—As a condi21 tion for approval of any authorization to export liq22 uefied natural gas, the Secretary of Energy shall re23 quire the applicant to transport the authorized ex24 ports on vessels that meet the requirements de25 scribed in paragraph (2) (including vessels with reVerDate Sep 11 2014 00:12 May 30, 2018 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2916.IS S2916

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1 spect to which a waiver is in place for the require2 ment under paragraph (2)(D)), so as to ensure the 

3 following: 

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

5 percent of the liquefied natural gas exported by 

6 vessel each year is transported on such vessels. 

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

8 three percent of the liquefied natural gas ex9 ported by vessel each year is transported on 

10 such vessels. 

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

12 percent of the liquefied natural gas exported by 

13 vessel each year is transported on such vessels. 

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

15 seven percent of the liquefied natural gas ex16 ported by vessel each year is transported on 

17 such vessels. 

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

19 percent of the liquefied natural gas exported by 

20 vessel each year is transported on such vessels. 

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

22 percent of the liquefied natural gas exported by 

23 vessel each year is transported on such vessels. 

24 ‘‘(G) Starting in 2036, a minimum of elev25 en percent of the liquefied natural gas exported 


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1 by vessel each year is transported on such ves2 sels. 

3 ‘‘(H) Starting in 2038, a minimum of thir4 teen percent of the liquefied natural gas ex5 ported by vessel each year is transported on 

6 such vessels. 

7 ‘‘(I) Starting in 2040, a minimum of fif8 teen percent of the liquefied natural gas ex9 ported by vessel each year is transported on 

10 such vessels. 

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

12 meets the requirements described in this paragraph 

13 if— 

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

15 States; 

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

17 laws of the United States; 

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

19 superstructure of the vessel are manufactured 

20 (including all manufacturing processes from the 

21 initial melting stage through the application of 

22 coatings for iron or steel products) in the 

23 United States; and 


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

2 paragraph (3) are manufactured in the United 

3 States. 

4 ‘‘(3) COMPONENTS.—The components of a ves5 sel listed in this paragraph are the following compo6 nents: 

7 ‘‘(A) Air circuit breakers. 

8 ‘‘(B) Welded shipboard anchor and moor9 ing chain with a diameter of four inches or less. 

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

11 Federal Supply Classes 4810 and 4820 used in 

12 piping. 

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

14 Classes for metal-working machinery numbered 

15 3405, 3408, 3410 through 3419, 3426, 3433, 

16 3438, 3441 through 3443, 3445, 3446, 3448, 

17 3449, 3460, and 3461. 

18 ‘‘(E) Auxiliary equipment for shipboard 

19 services, including pumps. 

20 ‘‘(F) Propulsion equipment, including en21 gines, reduction gears, and propellers. 

22 ‘‘(G) Shipboard cranes. 

23 ‘‘(H) Spreaders for shipboard cranes. 

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

25 Energy may waive the requirement under paragraph 


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

2 Maritime Administrator determines that— 

3 ‘‘(A) application of the requirement would 

4 cause unreasonable costs or delays to be in5 curred in building the vessel; or 

6 ‘‘(B) such component is not manufactured 

7 in the United States in sufficient and reason8 ably available quantities of a satisfactory qual9 ity. 

10 ‘‘(5) OPPORTUNITIES FOR LICENSED AND UNLI11 CENSED MARINERS.—Each Federal official respon12 sible for the issuance of a permit authorizing the ex13 port of liquefied natural gas shall require, as a con14 dition and term of the permit, that the permittee 

15 provide opportunities for United States licensed and 

16 unlicensed mariners to receive experience and train17 ing necessary to become credentialed in working on 

18 a vessel transporting liquified natural gas.’’. 

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

20 O of the Consolidated Appropriations Act, 2016 (42 

21 U.S.C. 6212a) is amended— 

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

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

24 (e)’’; and 


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1 (2) by redesignating subsection (e) as sub2 section (f); and (3) by inserting after subsection (d) 

3 the following: 

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

5 ON VESSELS BUILT IN THE UNITED STATES AND DOCU6 MENTED UNDER LAWS OF THE UNITED STATES.— 

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

8 crude oil, the President shall require an applicant to 

9 transport the exports on vessels that meet the re10 quirements described in paragraph (2) (including 

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

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

13 ensure the following: 

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

15 percent of crude oil exported by vessel each 

16 year is transported on such vessels. 

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

18 percent of crude oil exported by vessel each 

19 year is transported on such vessels. 

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

21 percent of crude oil exported by vessel each 

22 year is transported on such vessels. 

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

24 percent of crude oil exported by vessel each 

25 year is transported on such vessels. 


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

2 meets the requirements described in this paragraph 

3 if— 

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

5 States; 

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

7 laws of the United States; 

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

9 superstructure of the vessel are manufactured 

10 (including all manufacturing processes from the 

11 initial melting stage through the application of 

12 coatings for iron or steel products) in the 

13 United States; and 

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

15 paragraph (3) are manufactured in the United 

16 States. 

17 ‘‘(3) COMPONENTS.—The components of a ves18 sel listed in this paragraph are the following compo19 nents: 

20 ‘‘(A) Air circuit breakers. 

21 ‘‘(B) Welded shipboard anchor and moor22 ing chain with a diameter of four inches or less. 

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

24 Federal Supply Classes 4810 and 4820 used in 

25 piping. 


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

2 Classes for metal-working machinery numbered 

3 3405, 3408, 3410 through 3419, 3426, 3433, 

4 3438, 3441 through 3443, 3445, 3446, 3448, 

5 3449, 3460, and 3461. 

6 ‘‘(E) Auxiliary equipment for shipboard 

7 services, including pumps. 

8 ‘‘(F) Propulsion equipment, including en9 gines, reduction gears, and propellers. 

10 ‘‘(G) Shipboard cranes. 

11 ‘‘(H) Spreaders for shipboard cranes. 

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

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

14 respect to a component of a vessel if the Maritime 

15 Administrator determines that— 

16 ‘‘(A) application of the requirement would 

17 cause unreasonable costs or delays to be in18 curred in building the vessel; or 

19 ‘‘(B) such component is not manufactured 

20 in the United States in sufficient and reason21 ably available quantities of a satisfactory qual22 ity. 

23 ‘‘(5) OPPORTUNITIES FOR LICENSED AND UNLI24 CENSED MARINERS.—The Maritime Administrator 

25 shall ensure that each exporter of crude oil by vessel 


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1 provides opportunities for United States licensed and 

2 unlicensed mariners to receive experience and train3 ing necessary to become credentialed in working on 

4 such vessels.’’. 

Æ 


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