S.Amdt. 6376

SA 6376. Mr. KELLY (for himself and Mr. Young) submitted an amendment
intended to be proposed by him to the bill S. 4784, to authorize
appropriations for fiscal year 2027 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place in title X, insert the
following:

SEC. ___. SHIP AMERICAN.

(a) In General.--Chapter 553 of title 46, United States
Code, is amended by adding at the end the following:

``SUBCHAPTER IV--SHIP AMERICA OFFICE

``Sec. 55341. Establishment of Ship America Office

``(a) Establishment.--The Maritime Administrator shall
establish within the Maritime Administration an office to be
known as the `Ship America Office'. The Maritime
Administrator shall appoint the head of the Ship America
Office (in this section referred to as the `Ship America
Associate Administrator').
``(b) Duties.--The Ship America Associate Administrator
shall have the following duties:
``(1) Providing assistance to private sector entities,
Federal financial assistance recipients, Federal agencies,
Federal contractors, and owners and operators of oceangoing
vessels of the United States to facilitate the movement of
commercial and government cargo on vessels of the United
States in international commerce.
``(2) Maximizing compliance across Federal agencies with
this chapter, section 2631 of title 10, and any other cargo
preference law of the United States.
``(3) Providing training and assistance to Federal
employees, in all Federal agencies responsible for shipping
preference cargo, on the legal obligations under this
chapter, section 2631 of title 10, and any other cargo
preference law of the United States.
``(4) Developing a `Ship America' verification program to
develop self-certification industry standards, in partnership
with private sector entities, to allow private sector
entities to verifiably demonstrate that a product was
transported to the United States aboard a vessel of the
United States.
``(5) Supporting the efforts of the executive branch to
develop and sustain a fleet of vessels of the United States
and maritime industrial base to meet the sealift needs of
Federal agencies.
``(6) Where practicable, making accessible, and regularly
updating, the publicly available contact information for
oceangoing vessels of the United States for the purposes of
moving international commerce.
``(7) Publishing, and regularly updating, centralized
information on the commercial benefits available to private
sector entities for moving commercial cargo on oceangoing
vessels of the United States.
``(8) Preparing the reports under subsection (c).
``(c) Reports Required.--Not later than 1 year after the
date of enactment of this section, and biennially thereafter,
the Maritime Administrator, acting through the Ship America
Associate Administrator, shall report to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives on--
``(1) the opportunities and challenges faced by
commercial entities to move cargo on oceangoing vessels of
the United States; and
``(2) recommendations to increase international commerce
moving on vessels of the United States.
``(d) Preventing Duplication.--
``(1) In general.--In establishing the Ship America
Office, the Administrator shall ensure that the activities of
the Office do not duplicate existing programs or activities
of the Maritime Administration.
``(2) Integration.--To the maximum extent practicable,
the Secretary shall transfer and integrate to the Ship
America Office all functions described in subsection (b) that
were being carried out by personnel and programs of the
Maritime Administration on the day before the date of
enactment of this section.''.
(b) Goods Imported on Vessels of the United States.--
Chapter 605 of title 46, United States Code, is amended--
(1) in section 60502(a)(1)--
(A) in the matter preceding subparagraph (A), by striking
``the vessel'';
(B) in subparagraph (A), by striking ``is entitled'' and
all that follows through ``imported in'' and inserting the
following: ``the cost of importing goods aboard the vessel is
comparable to or greater than the cost of importing goods
aboard''; and
(C) in subparagraph (B)--
(i) by striking ``(i) is owned'' and inserting the
following: ``the vessel-- ``
``(i) is owned''; and
(ii) by adjusting the margins of clause (ii)
appropriately; and
(2) in section 60503(a), by inserting ``, except for the
duties imposed under section 60502 of this title,'' after
``suspension of discriminating duties''.
(c) Priority for Vessels of the United States.--Part D of
subtitle V of title 46, United States Code, is amended by
inserting after chapter 553 the following:

``CHAPTER 555--PRIORITY FOR VESSELS OF THE UNITED STATES

``Sec.
``55501. Priority for vessels of the United States.

``Sec. 55501. Priority for vessels of the United States

``(a) In General.--The Secretary of Transportation may
allow a vessel of the United States to be given priority at
any port in the United States, ahead of a waiting vessel of a
country that is a covered nation (as defined in section
4872(f)(2) of title 10)).
``(b) Exception.--Notwithstanding subsection (a), if the
Secretary of the department in which the Coast Guard is
operating, in consultation with the Secretary of
Transportation, finds that it is in the national interest,
the Secretary may waive the priority under this section at
any port. The Secretary shall report to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives, by not later than 30 days after an action
waiving priority under this section at a port.''.
(d) Moving Cargo on Vessels of the United States.--
(1) Assessment required.--Not later than 180 days after
the date of enactment of this Act, the Maritime Readiness
Advisor, in consultation with the Secretary of
Transportation, in consultation with the Secretary of State,
the Secretary of Homeland Security, the Secretary of
Commerce, the Chair of the Federal Maritime Commission, and
the United States Trade Representative, shall--
(A) conduct an assessment that identifies authorities
available under current Federal law, as of the date of such
identification, that may be utilized to incentivize the
movement of commercial cargo on vessels of the United States
in international commerce;
(B) review methods for greater assurances of access, in
crisis and conflict, to vessels of international allies and
partners of the United States; and
(C) make recommendations to the President to utilize such
authorities.
(2) Inclusions.--With respect to goods shipped directly
to ports in the United States, the assessment required under
paragraph (1) shall include an evaluation of--
(A) tax benefits for taxpayers who ship goods aboard
vessels of the United States;
(B) modifications to import duties for goods imported or
exported aboard vessels of the United States;
(C) privileges for vessels of the United States that
enable vessels of the United States to provide improved
service relative to other vessels in international commerce;
and
(D) any other authorities that would incentivize the
movement of goods aboard vessels of the United States.
(3) Report to congress.--Upon carrying out the assessment
required under paragraph (1), the Secretary of Transportation
shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives--
(A) a list of the recommendations made under paragraph
(1)(C); and
(B) a list of additional actions that could be taken by
Congress to further incentivize the movement of commercial
cargo on vessels of the United States.
(e) Energizing American Shipbuilding.--
(1) National policy on strategic energy asset export
transportation.--
(A) Requirement for transportation of exports of natural
gas on vessels documented under laws of the united states.--

[[Page S3505]]

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 submitting the application
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 and
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 Secretary of the department in which the
Coast Guard is operating 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 credentialed merchant 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 individuals with a
merchant mariner credential (as defined in section 2101 of
title 46, United States Code) 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.''.
(B) 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''.
(2) Crude oil.--Section 101 of title I of division O of
the Consolidated Appropriations Act, 2016 (42 U.S.C. 6212a)
is amended--
(A) in subsection (b), by striking ``subsections (c) and
(d)'' and inserting ``subsections (c), (d), and (e)''; and
(B) by adding at the end the following:
``(e) Transportation of Exports of Crude Oil on Vessels
Documented Under Laws of the United States.--
``(1) In general.--Notwithstanding any other provision of
law and 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 and
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.

[[Page S3506]]

``(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 Secretary of the department in which the
Coast Guard is operating 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 credentialed merchant mariners.--
The Maritime Administrator, in consultation with the
Secretary of the department in which the Coast Guard is
operating, shall ensure that the owner or operator of a
vessel documented under chapter 121 of title 46, United
States Code, transporting crude oil provides opportunities
for individuals with a merchant mariner credential (as
defined in section 2101 of title 46, United States Code) 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.''.
(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--
(A) 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
(B) forecasts for those exports for multi-year periods
after the date of enactment of this Act, as determined
appropriate by the Secretary.
(f) Importation of Chinese Goods on American Ships.--
Chapter 605 of title 46, United States Code, is amended by
adding at the end the following:

``Sec. 60508. Importation of Chinese goods on American ships

``(a) In General.--Notwithstanding any other provision of
law, beginning on the date that is 1 year after the date on
which the final rule required under subsection (d) is
published in the Federal Register, each shipper shall ensure
that for each year, not less than the covered percentage
applicable for that year, as described in subsection (b), of
covered goods by tonnage imported into the United States by
the shipper from a foreign port or place, excluding any port
or place in North America, is imported on a vessel of the
United States that is in compliance with the applicable
requirements of section 8103 of this title.
``(b) Percentage.--The covered percentage under this
section is the following:
``(1) One percent for the year that begins on the date
that is 1 year after the date on which the final rule
required under subsection (d) is published in the Federal
Register.
``(2) Two percent for the year that begins on the date
that is 2 years after the date on which such final rule is so
published.
``(3) Three percent for the year that begins on the date
that is 3 years after the date on which such final rule is so
published.
``(4) Four percent for the year that begins on the date
that is 4 years after the date on which such final rule is so
published.
``(5) Five percent for the year that begins on the date
that is 5 years after the date on which such final rule is so
published.
``(6) Six percent for the year that begins on the date
that is 6 years after the date on which such final rule is so
published.
``(7) Seven percent for the year that begins on the date
that is 7 years after the date on which such final rule is so
published.
``(8) Eight percent for the year that begins on the date
that is 8 years after the date on which such final rule is so
published.
``(9) Nine percent for the year that begins on the date
that is 9 years after the date on which such final rule is so
published.
``(10) Ten percent--
``(A) for the year that begins on the date that is 10
years after the date on which such final rule is so
published; and
``(B) for each year thereafter.
``(c) Fine for Failure to Comply.--
``(1) In general.--On an annual basis, the Maritime
Administrator, in consultation with the Secretary of Homeland
Security, shall issue a fine to any shipper failing to comply
with the requirements under this section.
``(2) Amount.--The amount of a fine under this section
shall be in an amount set by the Maritime Administrator, in
consultation with the Secretary of Homeland Security, that is
greater than the difference in cost between--
``(A) the cost of employing a vessel of the United States
that is in compliance with the applicable requirements of
section 8103 of this title; and
``(B) the cost of employing a foreign vessel that is
registered under the laws of a country with an open registry.
``(3) Use of amounts.--Any amount collected under this
subsection shall be deposited in the Maritime Security Trust
Fund established under section 50301(b) of this title.
``(d) Rulemaking Required.--Not later than 4 years after
the date of enactment of this section, the Maritime
Administrator, in consultation with the Secretary of Homeland
Security, shall promulgate a final rule that establishes a
system that--
``(1) identifies persons and goods that are subject to
the requirements of this section;
``(2) establishes requirements for such persons and goods
that meet the applicable percentages established under
subsection (b);
``(3) establishes clear enforcement mechanisms to ensure
compliance with this section; and
``(4) determines the amount of a fine issued under
subsection (c).
``(e) Authorization of Appropriations.--For each fiscal
year, there is authorized to be appropriated, out of the
Maritime Security Trust Fund established under section
50301(b) of this title, an amount sufficient to reimburse the
Maritime Administrator for the costs incurred under this
section, including administrative expenses.
``(f) Definitions.--In this section:
``(1) Country with an open registry.--The term `country
with an open registry' means a country that allows vessels to
be documented under the laws of the country, without regard
to the citizenship of the owner of the vessel or the
citizenship of the crew of the vessel.
``(2) Covered goods.--The term `covered goods' means
goods manufactured in the People's Republic of China.
``(3) Shipper.--The term `shipper' has the meaning given
such term in section 40102 of this title.''.
______