[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6724 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 6724
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
December 12, 2023
Mr. Garamendi (for himself, Mr. Wittman, and Mr. Fitzpatrick)
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 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 2023''.
SEC. 2. NATIONAL POLICY ON STRATEGIC ENERGY ASSET EXPORT
TRANSPORTATION.
(a) LNG Exports.--
(1) 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.
``(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.''.
(2) 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.
``(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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