HR7873-119

What This Bill Does

The Taiwan Energy Security and Anti-Embargo Act authorizes the State, Commerce, and Energy Departments to prioritize and facilitate U.S. energy exports and projects that diversify Taiwan's energy supply. They may work with U.S. LNG producers, exporters, infrastructure companies, Taiwanese authorities, and private stakeholders; address export and storage barriers; support investment and U.S. technology exports; and assess Taiwan's LNG import capacity.

Within one year, the National Academy of Sciences must assess opportunities and methods to increase U.S. LNG exports to Taiwan, including possible redirection of exports then flowing to China. The study does not itself redirect a shipment or alter export licenses or private contracts.

State, coordinating with Defense and Energy, may seek to engage Taiwanese ministries on grid, LNG terminal, storage, control-system, physical-security, redundancy, continuity, training, workforce, and emergency-response resilience. State may establish a U.S.-Taiwan Energy Security Center in the United States using universities and private-sector expertise and may provide technical assistance. Assistance must flow through the American Institute in Taiwan, in consultation with Taiwan, and remains subject to regular foreign-assistance notification requirements.

State must brief Congress within 180 days. It must also report within 180 days and annually for three years on actions, export and investment barriers, infrastructure-security cooperation, capacity-building effectiveness, and recommendations. Reports are unclassified but may contain a classified annex. The Act also adds critical-energy-infrastructure protection to existing Taiwan training authority.

Congressional findings and a nonbinding sense of Congress encourage Taiwan to retain nuclear power and consider Gen III+ and small modular reactors, and encourage U.S. assistance and cooperation. They do not require Taiwan to restart a plant or purchase U.S. reactors.

The Transportation Secretary may provide Federal insurance or reinsurance for vessels carrying critical energy, humanitarian, or other goods to Taiwan or another U.S. strategic partner facing coercive maritime threats after consulting Defense, State, and the Director of National Intelligence and making a necessity or deterrence finding. A specified existing statutory condition does not apply to those vessels.

The bill preserves the U.S. One China Policy. It does not appropriate a stated amount, mandate an LNG export, require private sellers to redirect cargo from China, compel creation of the energy center, guarantee insurance, or change Taiwan's sovereign energy policy.

Who Benefits and How

Taiwan's energy users, grid and terminal operators, emergency planners, and government agencies may gain diversified supplies, cybersecurity, infrastructure assistance, training, and insured maritime access. U.S. LNG, nuclear, cybersecurity, engineering, university, shipping, and energy-technology organizations may gain export, project, research, and service opportunities. Congress gains recurring implementation information.

Who Bears the Burden and How

State, Commerce, Energy, Defense, Transportation, the intelligence community, the National Academy, and the American Institute in Taiwan must coordinate assessments, notifications, briefings, and reports. Federal taxpayers bear the contingent risk of maritime insurance and technical assistance. Chinese LNG buyers could face reduced supply if private exports are redirected. Taiwan agencies and infrastructure operators bear participation and implementation work, but most substantive cooperation remains discretionary.

Key Provisions

• Authorizes prioritization of U.S. energy exports to Taiwan.
• Authorizes support for LNG storage and energy projects.
• Requires an LNG redirection assessment within one year.
• Authorizes grid and terminal cybersecurity cooperation.
• Authorizes physical resilience and continuity planning.
• Authorizes a U.S.-Taiwan Energy Security Center.
• Routes assistance through the American Institute in Taiwan.
• Requires a congressional briefing within 180 days.
• Requires annual reports for three years.
• Adds critical-energy protection to existing training authority.
• Encourages nuclear cooperation through nonbinding language.
• Authorizes maritime insurance for threatened strategic commerce.
• Preserves the One China Policy.
• Mandates no export, center, reactor purchase, or insurance policy.