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