Us Congress House Bill HB6724

Us Congress 2023-2024 Regular Session

• Introduced: 12/12/23
• Refer: 12/12/23
• Refer: 12/15/23

Caption

Energizing American Shipbuilding Act of 2023

Impact

The legislation is designed to bolster the American maritime industry by mandating that a portion of energy exports transit U.S.-built and flagged vessels. This could potentially lead to job creation within the shipbuilding sector and may help stimulate economic growth, as more domestic vessels would be required to meet export needs. Additionally, the bill seeks to enhance energy security by promoting the use of U.S. maritime resources. However, there are concerns regarding the operational impacts on exporters who may need to adapt to new shipping regulations or face increased costs.

Summary

House Bill 6724, known as the Energizing American Shipbuilding Act of 2023, aims to ensure that a certain percentage of natural gas and crude oil exports are transported on vessels built in the United States and documented under U.S. laws. The bill stipulates minimum percentages of exports to be carried on U.S.-flagged vessels over several years, starting with 2% for natural gas and 3% for crude oil, incrementally increasing over the following years until reaching 15% for natural gas and 10% for crude oil in later years.

Contention

There are notable points of contention surrounding the bill, particularly in relation to international trade agreements. The stipulation that exporters must use U.S.-flagged vessels could conflict with existing trade treaties that provide for unrestricted access to foreign-flagged vessels. Critics argue this could lead to legal disputes or trade disagreements. Furthermore, the requirement for domestic shipbuilding and components may raise costs and complicate logistics for companies relying on a competitive global shipping industry. Advocates of the bill maintain that the long-term benefits to domestic economic and employment factors outweigh these challenges.