# Plain Language Summary: Energizing American Shipbuilding Act of 2021

This bill requires that a growing percentage of America's exported natural gas and crude oil be transported on ships that are built in the United States and fly the American flag. Right now, most of these energy exports travel on foreign-owned ships. The law would gradually increase the requirement over time—starting at just 2% for natural gas and 3% for crude oil in the first seven years, then climbing to 15% and 10% respectively by around year 22 and beyond.

To qualify as an American ship under this law, vessels must either be newly built in U.S. shipyards with American-made components, or be existing ships retrofitted in American shipyards with American-made parts. The bill includes a long list of specific components that must be manufactured domestically, including engines, pumps, electrical equipment, and crane systems. There are some escape hatches built in—the government can waive these requirements if American-made components cost more than 25% extra or simply aren't available in sufficient quantities. The bill also doesn't apply to countries with free trade agreements with the U.S. that require equal treatment for energy trade.

The practical effect is that this law aims to boost American shipbuilding jobs and keep skilled maritime workers employed. Energy companies exporting natural gas and oil would need to either invest in American-built vessels or pay to retrofit existing ships in U.S. yards. This could increase costs for exporters, which might eventually affect energy prices for consumers, though the gradual phase-in gives companies time to adjust. The bill also requires that American sailors get training opportunities on these vessels, helping develop the skilled workforce needed for this specialized work.

Energizing American Shipbuilding Act of 2021

Garamendi, John

Energizing American Shipbuilding Act of 2021 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.