Energizing American Shipbuilding Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 1819 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. IN THE HOUSE OF REPRESENTATIVES MARCH 11, 2021 Mr. GARAMENDI (for himself, Mr. WITTMAN, Ms. BROWNLEY, Mr. FITZPATRICK, Mr. LOWENTHAL, Mr. PAPPAS, and Mrs. LURIA) intro- duced 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 com- mittee concerned A BILL 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Energizing American 4 Shipbuilding Act of 2021’’. 5 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 1819 IH SEC. 2. NATIONAL POLICY ON STRATEGIC ENERGY ASSET 1 EXPORT TRANSPORTATION. 2 (a) LNG EXPORTS.— 3 (1) FINDINGS.—Congress finds the following: 4 (A) Liquefied natural gas (LNG) is haz- 5 ardous to national import and export terminals 6 and ports when mishandled. 7 (B) LNG is a strategic national asset, the 8 export of which should be used to preserve the 9 United States tanker fleet and skilled mariner 10 workforce that are essential to national secu- 11 rity. 12 (C) For the safety and security of the 13 United States, LNG should be exported on ves- 14 sels documented under the laws of the United 15 States. 16 (2) REQUIREMENT.—Section 3 of the Natural 17 Gas Act (15 U.S.C. 717b) is amended by adding at 18 the end the following: 19 ‘‘(g) TRANSPORTATION OF EXPORTS OF NATURAL 20 GAS ON VESSELS DOCUMENTED UNDER LAWS OF THE 21 UNITED STATES.— 22 ‘‘(1) CONDITION FOR APPROVAL.—Except as 23 provided in paragraph (5), the Commission shall in- 24 clude in an order issued under subsection (a) that 25 authorizes a person to export natural gas a condition 26 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 1819 IH that the person transport the natural gas on vessels 1 that meet the requirements described in paragraph 2 (2) (including vessels with respect to which a waiver 3 is in place for the requirement under paragraph 4 (2)(A)(i)(II)(bb) or the requirement under para- 5 graph (2)(A)(ii)(IV), as applicable), so as to ensure 6 the following: 7 ‘‘(A) A minimum of two percent of the 8 natural gas that is exported by vessel is trans- 9 ported on such vessels in each of the 7 calendar 10 years after the calendar year in which this sub- 11 section is enacted. 12 ‘‘(B) A minimum of three percent of the 13 natural gas that is exported by vessel is trans- 14 ported on such vessels in each of the 8th and 15 9th calendar years after the calendar year in 16 which this subsection is enacted. 17 ‘‘(C) A minimum of four percent of the 18 natural gas that is exported by vessel is trans- 19 ported on such vessels in each of the 10th and 20 11th calendar years after the calendar year in 21 which this subsection is enacted. 22 ‘‘(D) A minimum of six percent of the nat- 23 ural gas that is exported by vessel is trans- 24 ported on such vessels in each of the 12th and 25 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 1819 IH 13th calendar years after the calendar year in 1 which this subsection is enacted. 2 ‘‘(E) A minimum of seven percent of the 3 natural gas that is exported by vessel is trans- 4 ported on such vessels in each of the 14th and 5 15th calendar years after the calendar year in 6 which this subsection is enacted. 7 ‘‘(F) A minimum of nine percent of the 8 natural gas that is exported by vessel is trans- 9 ported on such vessels in each of the 16th and 10 17th calendar years after the calendar year in 11 which this subsection is enacted. 12 ‘‘(G) A minimum of eleven percent of the 13 natural gas that is exported by vessel is trans- 14 ported on such vessels in each of the 18th and 15 19th calendar years after the calendar year in 16 which this subsection is enacted. 17 ‘‘(H) A minimum of thirteen percent of the 18 natural gas that is exported by vessel is trans- 19 ported on such vessels in each of the 20th and 20 21st calendar years after the calendar year in 21 which this subsection is enacted. 22 ‘‘(I) A minimum of fifteen percent of the 23 natural gas that is exported by vessel is trans- 24 ported on such vessels in— 25 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 1819 IH ‘‘(i) the 22nd calendar year after the 1 calendar year in which this subsection is 2 enacted; and 3 ‘‘(ii) in each calendar year thereafter. 4 ‘‘(2) REQUIREMENTS FOR VESSELS.—A vessel 5 meets the requirements described in this para- 6 graph— 7 ‘‘(A) with respect to each of the 5 calendar 8 years after the calendar year in which this sub- 9 section is enacted— 10 ‘‘(i) if— 11 ‘‘(I) the vessel is documented 12 under the laws of the United States; 13 and 14 ‘‘(II) with respect to any retrofit 15 work necessary for the vessel to ex- 16 port natural gas— 17 ‘‘(aa) such work is done in a 18 shipyard in the United States; 19 and 20 ‘‘(bb) any component of the 21 vessel listed in paragraph (3) 22 that is installed during the 23 course of such work is manufac- 24 tured in the United States; or 25 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 1819 IH ‘‘(ii) if— 1 ‘‘(I) the vessel is built in the 2 United States; 3 ‘‘(II) the vessel is documented 4 under the laws of the United States; 5 ‘‘(III) all major components of 6 the hull or superstructure of the ves- 7 sel are manufactured (including all 8 manufacturing processes from the ini- 9 tial melting stage through the applica- 10 tion of coatings for iron or steel prod- 11 ucts) in the United States; and 12 ‘‘(IV) the components of the ves- 13 sel listed in paragraph (3) are manu- 14 factured in the United States; and 15 ‘‘(B) with respect to the 6th calendar year 16 after the calendar year in which this subsection 17 is enacted and each calendar year thereafter, if 18 the vessel meets the requirements of subpara- 19 graph (A)(ii). 20 ‘‘(3) COMPONENTS.—The components of a ves- 21 sel listed in this paragraph are the following compo- 22 nents: 23 ‘‘(A) Air circuit breakers. 24 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 1819 IH ‘‘(B) Welded shipboard anchor and moor- 1 ing chain with a diameter of four inches or less. 2 ‘‘(C) Powered and non-powered valves in 3 Federal Supply Classes 4810 and 4820 used in 4 piping. 5 ‘‘(D) Machine tools in the Federal Supply 6 Classes for metal-working machinery numbered 7 3405, 3408, 3410 through 3419, 3426, 3433, 8 3438, 3441 through 3443, 3445, 3446, 3448, 9 3449, 3460, and 3461. 10 ‘‘(E) Auxiliary equipment for shipboard 11 services, including pumps. 12 ‘‘(F) Propulsion equipment, including en- 13 gines, propulsion motors, reduction gears, and 14 propellers. 15 ‘‘(G) Shipboard cranes. 16 ‘‘(H) Spreaders for shipboard cranes. 17 ‘‘(I) Rotating electrical equipment, includ- 18 ing electrical alternators and motors. 19 ‘‘(J) Compressors, pumps, and heat ex- 20 changers used in managing and re-liquifying 21 boil-off gas from liquefied natural gas. 22 ‘‘(4) WAIVER AUTHORITY.—The Commission 23 may waive the requirement under paragraph 24 (2)(A)(i)(II)(bb) or paragraph (2)(A)(ii)(IV), as ap- 25 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 1819 IH plicable, with respect to a component of a vessel if 1 the Maritime Administrator determines that— 2 ‘‘(A) application of the requirement would 3 cause a cost increase of more than 25 percent 4 for such component or unreasonable delays to 5 be incurred in building or retrofitting the ves- 6 sel; or 7 ‘‘(B) such component is not manufactured 8 in the United States in sufficient and reason- 9 ably available quantities of a satisfactory qual- 10 ity. 11 ‘‘(5) EXCEPTION.—The Commission may not 12 include in any order issued under subsection (a) au- 13 thorizing a person to export natural gas to a nation 14 with which there is in effect a free trade agreement 15 requiring national treatment for trade in natural gas 16 a condition described in paragraph (1), or a condi- 17 tion described in paragraph (7), if the United States 18 Trade Representative certifies to the Commission, in 19 writing, that such condition would violate obligations 20 of the United States under such free trade agree- 21 ment. 22 ‘‘(6) USE OF FEDERAL INFORMATION.—In car- 23 rying out paragraph (1), the Commission— 24 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 1819 IH ‘‘(A) shall utilize information made avail- 1 able by the Energy Information Administration, 2 or by any other Federal agency or entity the 3 Commission determines appropriate; and 4 ‘‘(B) may not utilize information made 5 available by a private entity unless applicable 6 information described in subparagraph (A) is 7 not available. 8 ‘‘(7) OPPORTUNITIES FOR LICENSED AND UNLI- 9 CENSED MARINERS.—Except as provided in para- 10 graph (5), the Commission shall include in any order 11 issued under subsection (a) that authorizes a person 12 to export natural gas a condition that the person 13 provide opportunities for United States licensed and 14 unlicensed mariners to receive experience and train- 15 ing necessary to become credentialed in working on 16 a vessel transporting natural gas.’’. 17 (3) CONFORMING AMENDMENT.—Section 3(c) 18 of the Natural Gas Act (15 U.S.C. 717b(c)) is 19 amended by striking ‘‘or the exportation of natural 20 gas’’ and inserting ‘‘or, subject to subsection (g), the 21 exportation of 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— 25 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 1819 IH (1) in subsection (b), by striking ‘‘subsections 1 (c) and (d)’’ and inserting ‘‘subsections (c), (d), and 2 (e)’’; 3 (2) by redesignating subsection (e) as sub- 4 section (f); and 5 (3) by inserting after subsection (d) the fol- 6 lowing: 7 ‘‘(e) TRANSPORTATION OF EXPORTS OF CRUDE OIL 8 ON VESSELS DOCUMENTED UNDER LAWS OF THE 9 UNITED STATES.— 10 ‘‘(1) CONDITION.—Except as provided in para- 11 graph (5), as a condition to export crude oil, the 12 President shall require the person exporting the 13 crude oil to transport the exports on vessels that 14 meet the requirements described in paragraph (2) 15 (including vessels with respect to which a waiver is 16 in place for the requirement under paragraph 17 (2)(A)(i)(II)(bb) or the requirement under para- 18 graph (2)(A)(ii)(IV), as applicable), so as to ensure 19 the following: 20 ‘‘(A) A minimum of three percent of crude 21 oil exported by vessel is transported on such 22 vessels in each of the 7 calendar years after the 23 calendar year in which this subsection is en- 24 acted. 25 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 1819 IH ‘‘(B) A minimum of six percent of crude 1 oil exported by vessel is transported on such 2 vessels in each of the 8th, 9th, and 10th cal- 3 endar years after the calendar year in which 4 this subsection is enacted. 5 ‘‘(C) A minimum of eight percent of crude 6 oil exported by vessel is transported on such 7 vessels in each of the 11th, 12th, and 13th cal- 8 endar years after the calendar year in which 9 this subsection is enacted. 10 ‘‘(D) A minimum of ten percent of crude 11 oil exported by vessel is transported on such 12 vessels— 13 ‘‘(i) in the 14th calendar year after 14 the calendar year in which this subsection 15 is enacted; and 16 ‘‘(ii) in each calendar year thereafter. 17 ‘‘(2) REQUIREMENTS FOR VESSELS.—A vessel 18 meets the requirements described in this paragraph 19 if— 20 ‘‘(A) with respect to each of the 4 calendar 21 years after the calendar year in which this sub- 22 section is enacted— 23 ‘‘(i) if— 24 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 1819 IH ‘‘(I) the vessel is documented 1 under the laws of the United States; 2 and 3 ‘‘(II) with respect to any retrofit 4 work necessary for the vessel to ex- 5 port crude oil— 6 ‘‘(aa) such work is done in a 7 shipyard in the United States; 8 and 9 ‘‘(bb) any component of the 10 vessel listed in paragraph (3) 11 that is installed during the 12 course of such work is manufac- 13 tured in the United States; or 14 ‘‘(ii) if— 15 ‘‘(I) the vessel is built in the 16 United States; 17 ‘‘(II) the vessel is documented 18 under the laws of the United States; 19 ‘‘(III) all major components of 20 the hull or superstructure of the ves- 21 sel are manufactured (including all 22 manufacturing processes from the ini- 23 tial melting stage through the applica- 24 VerDate Sep 11 2014 20:22 May 03, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1819.IH H1819 pamtmann on DSKBC07HB2PROD with BILLS 13 •HR 1819 IH tion of coatings for iron or steel prod- 1 ucts) in the United States; and 2 ‘‘(IV) the components of the ves- 3 sel listed in paragraph (3) are manu- 4 factured in the United States; and 5 ‘‘(B) with respect to the 5th calendar year 6 after the calendar year in which this subsection 7 is enacted and each calendar year thereafter, if 8 the vessel meets the requirements of subpara- 9 graph (A)(ii). 10 ‘‘(3) COMPONENTS.—The components of a ves- 11 sel listed in this paragraph are the following compo- 12 nents: 13 ‘‘(A) Air circuit breakers. 14 ‘‘(B) Welded shipboard anchor and moor- 15 ing chain [Text truncated for display. Full text available on Congress.gov.]