Energizing American Shipbuilding Act of 2019
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.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3829 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 3829
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
July 18, 2019
Mr. Garamendi (for himself, Mr. Sean Patrick Maloney of New York, Mr.
Fitzpatrick, Mr. Van Drew, Mr. Wittman, Mr. Pocan, Mr. Hunter, Mrs.
Napolitano, Mr. King of New York, Ms. Barragan, Ms. Brownley of
California, Mr. Larsen of Washington, Mr. Lowenthal, Mr. Golden, Mrs.
Watson Coleman, Mr. Courtney, Mr. Norcross, and Mrs. Luria) 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 2019''.
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 hazardous to
national import and export terminals and ports when
mishandled.
(B) LNG is a strategic national asset, the export
of which should 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 Natural Gas on Vessels
Documented Under Laws of the United States.--
``(1) Condition for approval.--Except as provided in
paragraph (5), the Commission shall include in an order issued
under subsection (a) that authorizes a person to export natural
gas a condition that the person transport the natural gas 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)(A)(i)(II)(bb) or the
requirement under paragraph (2)(A)(ii)(IV), as applicable), so
as to ensure the following:
``(A) A minimum of two percent of the natural gas
that is exported by vessel is transported on such
vessels in each of the 7 calendar years after the
calendar year in which this subsection is enacted.
``(B) A minimum of three percent of the natural gas
that is exported by vessel is transported on such
vessels in each of the 8th and 9th calendar years after
the calendar year in which this subsection is enacted.
``(C) A minimum of four percent of the natural gas
that is exported by vessel is transported on such
vessels in each of the 10th and 11th calendar years
after the calendar year in which this subsection is
enacted.
``(D) A minimum of six percent of the natural gas
that is exported by vessel is transported on such
vessels in each of the 12th and 13th calendar years
after the calendar year in which this subsection is
enacted.
``(E) A minimum of seven percent of the natural gas
that is exported by vessel is transported on such
vessels in each of the 14th and 15th calendar years
after the calendar year in which this subsection is
enacted.
``(F) A minimum of nine percent of the natural gas
that is exported by vessel is transported on such
vessels in each of the 16th and 17th calendar years
after the calendar year in which this subsection is
enacted.
``(G) A minimum of eleven percent of the natural
gas that is exported by vessel is transported on such
vessels in each of the 18th and 19th calendar years
after the calendar year in which this subsection is
enacted.
``(H) A minimum of thirteen percent of the natural
gas that is exported by vessel is transported on such
vessels in each of the 20th and 21st calendar years
after the calendar year in which this subsection is
enacted.
``(I) A minimum of fifteen percent of the natural
gas that is exported by vessel is transported on such
vessels in--
``(i) the 22nd calendar year after the
calendar year in which this subsection is
enacted; and
``(ii) in each calendar year thereafter.
``(2) Requirements for vessels.--A vessel meets the
requirements described in this paragraph--
``(A) with respect to each of the 5 calendar years
after 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 (3)
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 (3) are
manufactured in the United States; and
``(B) with respect to the 6th calendar year after
the calendar year in which this subsection is enacted
and each calendar year thereafter, if the vessel meets
the requirements of subparagraph (A)(ii).
``(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,
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-liquifying boil-off gas from
liquefied natural gas.
``(4) Waiver authority.--The Commission may waive the
requirement under paragraph (2)(A)(i)(II)(bb) or paragraph
(2)(A)(ii)(IV), as applicable, with respect to a component of a
vessel if the Maritime Administrator determines that--
``(A) application of the requirement would cause a
cost increase of more than 25 percent for such
component or 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.
``(5) 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 (7), 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.
``(6) Use of federal information.--In carrying out
paragraph (1), the Commission--
``(A) shall utilize information made available by
the Energy Information Administration, or by any other
Federal agency or entity the Commission determines
appropriate; and
``(B) may not utilize information made available by
a private entity unless applicable information
described in subparagraph (A) is not available.
``(7) Opportunities for licensed and unlicensed mariners.--
Except as provided in paragraph (5), 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.''.
(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 (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 Documented
Under Laws of the United States.--
``(1) Condition.--Except as provided in paragraph (5), as a
condition to export crude oil, the President shall require the
person exporting the crude oil 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)(A)(i)(II)(bb) or the
requirement under paragraph (2)(A)(ii)(IV), as applicable), so
as to ensure the following:
``(A) A minimum of three percent of crude oil
exported by vessel is transported on such vessels in
each of the 7 calendar years after the calendar year in
which this subsection is enacted.
``(B) A minimum of six percent of crude oil
exported by vessel is transported on such vessels in
each of the 8th, 9th, and 10th calendar years after the
calendar year in which this subsection is enacted.
``(C) A minimum of eight percent of crude oil
exported by vessel is transported on such vessels in
each of the 11th, 12th, and 13th calendar years after
the calendar year in which this subsection is enacted.
``(D) A minimum of ten percent of crude oil
exported by vessel is transported on such vessels--
``(i) in the 14th calendar year after the
calendar year in which this subsection is
enacted; and
``(ii) in each calendar year thereafter.
``(2) Requirements for vessels.--A vessel meets the
requirements described in this paragraph if--
``(A) with respect to each of the 4 calendar years
after 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 (3)
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 (3) are
manufactured in the United States; and
``(B) with respect to the 5th calendar year after
the calendar year in which this subsection is enacted
and each calendar year thereafter, if the vessel meets
the requirements of subparagraph (A)(ii).
``(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,
propulsion motors, reduction gears, and propellers.
``(G) Shipboard cranes.
``(H) Spreaders for shipboard cranes.
``(I) Rotating electrical equipment, including
electrical alternators and motors.
``(4) Waiver authority.--The President may waive the
requirement under paragraph (2)(A)(i)(II)(bb) or the
requirement under paragraph (2)(A)(ii)(IV), as applicable, with
respect to a component of a vessel if the Maritime
Administrator determines that--
``(A) application of the requirement would cause a
cost increase of more than 25 percent for such
component or 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.
``(5) 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.
``(6) Use of federal information.--In carrying out
paragraph (1), the President--
``(A) shall utilize information made available by
the Energy Information Administration, or by any other
Federal agency or entity the President determines
appropriate; and
``(B) may not utilize information made available by
a private entity unless applicable information
described in subparagraph (A) is not available.
``(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.''.
SEC. 3. ENERGY INFORMATION ADMINISTRATION INFORMATION.
The Secretary of Energy, acting through the Administrator of the
Energy Information Administration, 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, such exports for--
(A) the calendar year after the calendar year in
which this Act is enacted; and
(B) each calendar year thereafter; and
(2) forecasts for such exports for multi-year periods after
the date of enactment of this Act, as determined appropriate by
the Administrator.
<all>
Introduced in House
Introduced in House
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.
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.
Referred to the Subcommittee on Energy.
Sponsor introductory remarks on measure. (CR H7227-7229)
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