Title: Energizing American Shipbuilding Act
Policy area: Energy

Summary:
Energizing American Shipbuilding Act
This bill amends (1) the Natural Gas Act to direct the Department of Energy (DOE) to require specified percentages of liquefied natural gas exports to be transported on vessels built in the United States and documented under its laws, and (2) the Consolidated Appropriations Act, 2016 to direct the President to require specified percentages of crude oil exports to be transported on vessels built in the United States and documented under its laws.
DOE and the President may waive these requirements under specified circumstances.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5893 Introduced in House (IH)]

<DOC>






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.

    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''.

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

    (a) LNG Exports.--
            (1) Findings.--Congress finds the following:
                    (A) Liquefied natural gas (LNG) is an explosive gas 
                that can be hazardous to national import and export 
                terminals and ports when mishandled.
                    (B) LNG is a strategic national asset, the export 
                of which will be used to preserve the United States 
                tanker fleet and skilled mariner workforce that are 
                essential to national security.
                    (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.--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 LNG on Vessels Built in the 
United States and Documented Under Laws of the United States.--
            ``(1) Condition for approval.--As a condition for approval 
        of any authorization to export liquefied natural gas, the 
        Secretary of Energy shall require the applicant to transport 
        the authorized exports on vessels that meet the requirements 
        described in paragraph (2) (including vessels with respect to 
        which a waiver is in place for the requirement under paragraph 
        (2)(D)), so as to ensure the following:
                    ``(A) Starting in 2024, a minimum of two percent of 
                the liquefied natural gas exported by vessel each year 
                is transported on such vessels.
                    ``(B) Starting in 2026, a minimum of three percent 
                of the liquefied natural gas exported by vessel each 
                year is transported on such vessels.
                    ``(C) Starting in 2028, a minimum of five percent 
                of the liquefied natural gas exported by vessel each 
                year is transported on such vessels.
                    ``(D) Starting in 2030, a minimum of seven percent 
                of the liquefied natural gas exported by vessel each 
                year is transported on such vessels.
                    ``(E) Starting in 2032, a minimum of eight percent 
                of the liquefied natural gas exported by vessel each 
                year is transported on such vessels.
                    ``(F) Starting in 2034, a minimum of ten percent of 
                the liquefied natural gas exported by vessel each year 
                is transported on such vessels.
                    ``(G) Starting in 2036, a minimum of eleven percent 
                of the liquefied natural gas exported by vessel each 
                year is transported on such vessels.
                    ``(H) Starting in 2038, a minimum of thirteen 
                percent of the liquefied natural gas exported by vessel 
                each year is transported on such vessels.
                    ``(I) Starting in 2040, a minimum of fifteen 
                percent of the liquefied natural gas exported by vessel 
                each year is transported on such vessels.
            ``(2) Requirements for vessels.--A vessel meets the 
        requirements described in this paragraph if--
                    ``(A) the vessel is built in the United States;
                    ``(B) the vessel is documented under the laws of 
                the United States;
                    ``(C) 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
                    ``(D) the components of the vessel listed in 
                paragraph (3) are manufactured in the United States.
            ``(3) Components.--The components of a vessel listed in 
        this paragraph are the following components:
                    ``(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, 
                reduction gears, and propellers.
                    ``(G) Shipboard cranes.
                    ``(H) Spreaders for shipboard cranes.
            ``(4) Waiver authority.--The Secretary of Energy may waive 
        the requirement under paragraph (2)(D) with respect to a 
        component of a vessel if the Maritime Administrator determines 
        that--
                    ``(A) application of the requirement would cause 
                unreasonable costs or delays to be incurred in building 
                the vessel; or
                    ``(B) such component is not manufactured in the 
                United States in sufficient and reasonably available 
                quantities of a satisfactory quality.
            ``(5) Opportunities for licensed and unlicensed mariners.--
        Each Federal official responsible for the issuance of a permit 
        authorizing the export of liquefied natural gas shall require, 
        as a condition and term of the permit, that the permittee 
        provide opportunities for United States licensed and unlicensed 
        mariners to receive experience and training necessary to become 
        credentialed in working on a vessel transporting liquified 
        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 (e)'';
            (2) by redesignating subsection (e) as subsection (f); and
            (3) by inserting after subsection (d) the following:
    ``(e) Transportation of Exports of Crude Oil on Vessels Built in 
the United States and Documented Under Laws of the United States.--
            ``(1) Condition.--As a condition to export crude oil, the 
        President shall require an applicant to transport the exports 
        on vessels that meet the requirements described in paragraph 
        (2) (including vessels with respect to which a waiver is in 
        place for the requirement under paragraph (2)(D)), so as to 
        ensure the following:
                    ``(A) Starting in 2023, a minimum of one percent of 
                crude oil exported by vessel each year is transported 
                on such vessels.
                    ``(B) Starting in 2026, a minimum of four percent 
                of crude oil exported by vessel each year is 
                transported on such vessels.
                    ``(C) Starting in 2029, a minimum of eight percent 
                of crude oil exported by vessel each year is 
                transported on such vessels.
                    ``(D) Starting in 2032, a minimum of ten percent of 
                crude oil exported by vessel each year is transported 
                on such vessels.
            ``(2) Requirements for vessels.--A vessel meets the 
        requirements described in this paragraph if--
                    ``(A) the vessel is built in the United States;
                    ``(B) the vessel is documented under the laws of 
                the United States;
                    ``(C) 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
                    ``(D) the components of the vessel listed in 
                paragraph (3) are manufactured in the United States.
            ``(3) Components.--The components of a vessel listed in 
        this paragraph are the following components:
                    ``(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, 
                reduction gears, and propellers.
                    ``(G) Shipboard cranes.
                    ``(H) Spreaders for shipboard cranes.
            ``(4) Waiver authority.--The President may waive the 
        requirement under paragraph (2)(D) with respect to a component 
        of a vessel if the Maritime Administrator determines that--
                    ``(A) application of the requirement would cause 
                unreasonable costs or delays to be incurred in building 
                the vessel; or
                    ``(B) such component is not manufactured in the 
                United States in sufficient and reasonably available 
                quantities of a satisfactory quality.
            ``(5) 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.''.
                                 <all>