Energizing American Shipbuilding Act of 2021
Bill: S.707 | Sponsor: Sen. Wicker, Roger F. (R-MS)
Policy area: Energy

Summary:
Energizing American Shipbuilding Act of 2021
This bill directs (1) the Federal Energy Regulatory Commission (FERC) to require specified percentages of liquefied natural gas exports to be transported on vessels built or retrofitted in the United States and documented under its laws, and (2) the President to require specified percentages of crude oil exports to be transported on vessels built or retrofitted in the United States and documented under its laws.
FERC and the President may waive these requirements under specified circumstances.
The Energy Information Administration must collect and publish information on exports of natural gas and crude oil by vessels, including forecasts and data on those exports.

To require a certain percentage of natural gas and crude oil exports be 
transported on United States-built and United States-flag vessels, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energizing American Shipbuilding Act 
of 2021''.

SEC. 2. NATIONAL POLICY ON STRATEGIC ENERGY ASSET EXPORT 
              TRANSPORTATION.

    (a) LNG Exports.--
            (1) Findings.--Congress finds that--
                    (A) liquefied natural gas (referred to in this 
                paragraph as ``LNG'') is hazardous to national import 
                and export terminals and ports if mishandled;
                    (B) LNG is a strategic national asset, the export 
                of which should be used to preserve the tanker fleet 
                and skilled mariner workforce of the United States, 
                which are essential to national security; and
                    (C) for the safety and security of the United 
                States, LNG should be exported on vessels documented 
                under the laws of the United States.
            (2) Requirement for transportation of exports of natural 
        gas on vessels documented under laws of the united states.--
        Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by 
        adding at the end the following:
    ``(g) Transportation of Exports of Natural Gas on Vessels 
Documented Under Laws of the United States.--
            ``(1) Condition for approval.--Except as provided in 
        paragraph (7), with respect to an application to export natural 
        gas under subsection (a), the Commission shall include in the 
        order issued for that application the condition that the person 
        transport the natural gas on a vessel that meets the 
        requirements described in paragraph (3).
            ``(2) Purpose.--The purpose of the requirement under 
        paragraph (1) is to ensure that, of all natural gas exported by 
        vessel in a calendar year, the following percentage is exported 
        by a vessel that meets the requirements described in paragraph 
        (3):
                    ``(A) In each of the 7 calendar years following the 
                calendar year in which this subsection is enacted, not 
                less than 2 percent.
                    ``(B) In each of the 8th and 9th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 3 percent.
                    ``(C) In each of the 10th and 11th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 4 percent.
                    ``(D) In each of the 12th and 13th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 6 percent.
                    ``(E) In each of the 14th and 15th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 7 percent.
                    ``(F) In each of the 16th and 17th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 9 percent.
                    ``(G) In each of the 18th and 19th calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 11 percent.
                    ``(H) In each of the 20th and 21st calendar years 
                following the calendar year in which this subsection is 
                enacted, not less than 13 percent.
                    ``(I) In the 22nd calendar year after the calendar 
                year in which this subsection is enacted and each 
                calendar year thereafter, not less than 15 percent.
            ``(3) Requirements for vessels.--A vessel meets the 
        requirements described in this paragraph--
                    ``(A) with respect to each of the 5 calendar years 
                following the calendar year in which this subsection is 
                enacted--
                            ``(i) if--
                                    ``(I) the vessel is documented 
                                under the laws of the United States; 
                                and
                                    ``(II) with respect to any retrofit 
                                work necessary for the vessel to export 
                                natural gas--
                                            ``(aa) such work is done in 
                                        a shipyard in the United 
                                        States; and
                                            ``(bb) any component of the 
                                        vessel listed in paragraph (4) 
                                        that is installed during the 
                                        course of such work is 
                                        manufactured in the United 
                                        States; or
                            ``(ii) if--
                                    ``(I) the vessel is built in the 
                                United States;
                                    ``(II) the vessel is documented 
                                under the laws of the United States;
                                    ``(III) all major components of the 
                                hull or superstructure of the vessel 
                                are manufactured (including all 
                                manufacturing processes from the 
                                initial melting stage through the 
                                application of coatings for iron or 
                                steel products) in the United States; 
                                and
                                    ``(IV) the components of the vessel 
                                listed in paragraph (4) are 
                                manufactured in the United States; and
                    ``(B) with respect to the 6th calendar year 
                following the calendar year in which this subsection is 
                enacted, and each calendar year thereafter, if the 
                vessel meets the requirements of subparagraph (A)(ii).
            ``(4) Components.--The components of a vessel listed in 
        this paragraph are the following:
                    ``(A) Air circuit breakers.
                    ``(B) Welded shipboard anchor and mooring chain 
                with a diameter of 4 inches or less.
                    ``(C) Powered and non-powered valves in Federal 
                Supply Classes 4810 and 4820 used in piping.
                    ``(D) Machine tools in the Federal Supply Classes 
                for metal-working machinery numbered 3405, 3408, 3410 
                through 3419, 3426, 3433, 3438, 3441 through 3443, 
                3445, 3446, 3448, 3449, 3460, and 3461.
                    ``(E) Auxiliary equipment for shipboard services, 
                including pumps.
                    ``(F) Propulsion equipment, including engines, 
                propulsion motors, reduction gears, and propellers.
                    ``(G) Shipboard cranes.
                    ``(H) Spreaders for shipboard cranes.
                    ``(I) Rotating electrical equipment, including 
                electrical alternators and motors.
                    ``(J) Compressors, pumps, and heat exchangers used 
                in managing and re-liquefying boil-off gas from 
                liquefied natural gas.
            ``(5) Waiver authority.--The Commission may waive the 
        requirement under clause (i)(II)(bb) or (ii)(IV), as 
        applicable, of paragraph (3)(A) with respect to a component of 
        a vessel if the Maritime Administrator determines that--
                    ``(A) application of the requirement would--
                            ``(i) result in an increase of 25 percent 
                        or more in the cost of the component of the 
                        vessel; or
                            ``(ii) cause unreasonable delays to be 
                        incurred in building or retrofitting the 
                        vessel; or
                    ``(B) such component is not manufactured in the 
                United States in sufficient and reasonably available 
                quantities of a satisfactory quality.
            ``(6) Opportunities for licensed and unlicensed mariners.--
        Except as provided in paragraph (7), the Commission shall 
        include, in any order issued under subsection (a) that 
        authorizes a person to export natural gas, a condition that the 
        person provide opportunities for United States licensed and 
        unlicensed mariners to receive experience and training 
        necessary to become credentialed in working on a vessel 
        transporting natural gas.
            ``(7) Exception.--The Commission may not include in any 
        order issued under subsection (a) authorizing a person to 
        export natural gas to a nation with which there is in effect a 
        free trade agreement requiring national treatment for trade in 
        natural gas a condition described in paragraph (1), or a 
        condition described in paragraph (6), if the United States 
        Trade Representative certifies to the Commission, in writing, 
        that such condition would violate obligations of the United 
        States under such free trade agreement.
            ``(8) Use of federal information.--In carrying out 
        paragraph (1), the Commission--
                    ``(A) shall use information made available by--
                            ``(i) the Energy Information 
                        Administration; or
                            ``(ii) any other Federal agency or entity 
                        the Commission determines appropriate; and
                    ``(B) may use information made available by a 
                private entity only if applicable information described 
                in subparagraph (A) is not available.''.
            (3) Conforming amendment.--Section 3(c) of the Natural Gas 
        Act (15 U.S.C. 717b(c)) is amended by striking ``or the 
        exportation of natural gas'' and inserting ``or, subject to 
        subsection (g), the exportation of natural gas''.
    (b) Crude Oil.--Section 101 of title I of division O of the 
Consolidated Appropriations Act, 2016 (42 U.S.C. 6212a) is amended--
            (1) in subsection (b), by striking ``subsections (c) and 
        (d)'' and inserting ``subsections (c), (d), and (f)''; and
            (2) by adding at the end the following:
    ``(f) Transportation of Exports of Crude Oil on Vessels Documented 
Under Laws of the United States.--
            ``(1) In general.--Except as provided in paragraph (6), as 
        a condition to export crude oil, the President shall require 
        that a person exporting crude oil transport the crude oil on a 
        vessel that meets the requirements described in paragraph (3).
            ``(2) Purpose.--The purpose of the requirement under 
        paragraph (1) is to ensure that, of all crude oil exported by 
        vessel in a calendar year, the following percentage is exported 
        by a vessel that meets the requirements described in paragraph 
        (3):
                    ``(A) In each of the 7 calendar years following the 
                calendar year in which this subsection is enacted, not 
                less than 3 percent.
                    ``(B) In each of the 8th, 9th, and 10th calendar 
                years following the calendar year in which this 
                subsection is enacted, not less than 6 percent.
                    ``(C) In each of the 11th, 12th, and 13th calendar 
                years following the calendar year in which this 
                subsection is enacted, not less than 8 percent.
                    ``(D) In the 14th calendar year following the 
                calendar year in which this subsection is enacted and 
                each calendar year thereafter, not less than 10 
                percent.
            ``(3) Requirements for vessels.--A vessel meets the 
        requirements described in this paragraph--
                    ``(A) with respect to each of the 4 calendar years 
                following the calendar year in which this subsection is 
                enacted--
                            ``(i) if--
                                    ``(I) the vessel is documented 
                                under the laws of the United States; 
                                and
                                    ``(II) with respect to any retrofit 
                                work necessary for the vessel to export 
                                crude oil--
                                            ``(aa) such work is done in 
                                        a shipyard in the United 
                                        States; and
                                            ``(bb) any component of the 
                                        vessel listed in paragraph (4) 
                                        that is installed during the 
                                        course of such work is 
                                        manufactured in the United 
                                        States; or
                            ``(ii) if--
                                    ``(I) the vessel is built in the 
                                United States;
                                    ``(II) the vessel is documented 
                                under the laws of the United States;
                                    ``(III) all major components of the 
                                hull or superstructure of the vessel 
                                are manufactured (including all 
                                manufacturing processes from the 
                                initial melting stage through the 
                                application of coatings for iron or 
                                steel products) in the United States; 
                                and
                                    ``(IV) the components of the vessel 
                                listed in paragraph (4) are 
                                manufactured in the United States; and
                    ``(B) with respect to the 5th calendar year 
                following the calendar year in which this subsection is 
                enacted and each calendar year thereafter, if the 
                vessel meets the requirements of subparagraph (A)(ii).
            ``(4) Components.--The components of a vessel listed in 
        this paragraph are the following:
                    ``(A) Air circuit breakers.
                    ``(B) Welded shipboard anchor and mooring chain 
                with a diameter of four inches or less.
                    ``(C) Powered and non-powered valves in Federal 
                Supply Classes 4810 and 4820 used in piping.
                    ``(D) Machine tools in the Federal Supply Classes 
                for metal-working machinery numbered 3405, 3408, 3410 
                through 3419, 3426, 3433, 3438, 3441 through 3443, 
                3445, 3446, 3448, 3449, 3460, and 3461.
                    ``(E) Auxiliary equipment for shipboard services, 
                including pumps.
                    ``(F) Propulsion equipment, including engines, 
                propulsion motors, reduction gears, and propellers.
                    ``(G) Shipboard cranes.
                    ``(H) Spreaders for shipboard cranes.
                    ``(I) Rotating electrical equipment, including 
                electrical alternators and motors.
            ``(5) Waiver authority.--The President may waive the 
        requirement under clause (i)(II)(bb) or clause (ii)(IV), as 
        applicable, of paragraph (3)(A) with respect to a component of 
        a vessel if the Maritime Administrator determines that--
                    ``(A) application of the requirement would--
                            ``(i) result in an increase of 25 percent 
                        or more in the cost of the component of the 
                        vessel; or
                            ``(ii) cause unreasonable delays to be 
                        incurred in building or retrofitting the 
                        vessel; or
                    ``(B) such component is not manufactured in the 
                United States in sufficient and reasonably available 
                quantities of a satisfactory quality.
            ``(6) Exception.--The President may not, under paragraph 
        (1), condition the export of crude oil to a nation with which 
        there is in effect a free trade agreement requiring national 
        treatment for trade in crude oil if the United States Trade 
        Representative certifies to the President, in writing, that 
        such condition would violate obligations of the United States 
        under such free trade agreement.
            ``(7) Opportunities for licensed and unlicensed mariners.--
        The Maritime Administrator shall ensure that each exporter of 
        crude oil by vessel provides opportunities for United States 
        licensed and unlicensed mariners to receive experience and 
        training necessary to become credentialed in working on such 
        vessels.
            ``(8) Use of federal information.--In carrying out 
        paragraph (1), the President--
                    ``(A) shall use information made available by--
                            ``(i) the Energy Information 
                        Administration; or
                            ``(ii) any other Federal agency or entity 
                        the Commission determines appropriate; and
                    ``(B) may use information made available by a 
                private entity only if applicable information described 
                in subparagraph (A) is not available.''.

SEC. 3. ENERGY INFORMATION ADMINISTRATION INFORMATION.

    The Secretary of Energy, acting through the Administrator of the 
Energy Information Administration (referred to in this section as the 
``Secretary''), shall collect, and make readily available to the public 
on the internet website of the Energy Information Administration, 
information on exports by vessel of natural gas and crude oil, 
including--
            (1) forecasts for, and data on, those exports for the 
        calendar year following the calendar year in which this Act is 
        enacted and each calendar year thereafter; and
            (2) forecasts for those exports for multiyear periods after 
        the date of enactment of this Act, as determined appropriate by 
        the Secretary.
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