Next Generation Shipping Act

This Act may be cited as the “Next Generation Shipping Act”.

In this Act:

(1) Automated.— The term automated means any vessel or cargo handling system that performs any or all core functions without human operation.

(2) Charging infrastructure.— The term charging infrastructure—

(A) means the physical systems, equipment, and facilities necessary to supply electrical power to vessels for the purpose of recharging the batteries or energy storage systems of such vessels; and

(B) includes, with respect to zero-emission vessel technology, shore power facilities, onshore charging stations, and any associated equipment required to support the electrification of maritime transportation.

(3) Clean alternative fuel.— The term clean alternative fuel means a fuel or energy source that results in at least 90 percent fewer greenhouse gas emissions than a baseline of conventional marine fossil fuel on a life-cycle (“well-to-wake”) basis, measured in grams of carbon dioxide equivalent emissions per unit of energy, that is proven to be safe for people, communities, and the marine environment.

(4) Committee.— The term Committee means the Next Generation Shipping Advisory Committee established under section 4.

(5) Community benefits agreement.— The term community benefits agreement means an agreement signed by community groups and an eligible entity, identifying the community or labor benefits the entity agrees to deliver in return for community support or workforce availability for a project.

(6) Department.— The term Department means the Department of Transportation.

(7) Eligible entity.— The term eligible entity—

(A) means—

(i) an owner or operator of a vessel of the United States, as defined in section 116 of title 46, United States Code;

(ii) a United States-based manufacturer of vessels;

(iii) manufacturers of components, technologies, or materials that support zero-emission vessels and clean alternative fuel vessels;

(iv) a port authority;

(v) a terminal operator at a port;

(vi) an academic institution or nonprofit entity in a joint application with an entity listed in any of clauses (i) through (v); or

(vii) a nonprofit institution that—

(I) is funded, in whole or in part, by a labor-management training fund established pursuant to a collective bargaining agreement;

(II) is approved by the Coast Guard to provide training toward the issuance or renewal of a merchant mariner credential under chapter 71 of title 46, United States Code; and

(III) provides training and education to individuals with merchant mariner credentials serving in licensed engineering or licensed deck officer occupations; and

(B) excludes any entity that is a foreign government.

(8) Eligible project.— The term eligible project means a project to support the research, design, demonstration, development, and deployment of—

(A) zero-emission vessels;

(B) clean alternative fuel vessels;

(C) vessel energy efficiency technology (such as wind assistance and systems that minimize underwater noise emissions);

(D) shore power and corresponding vessel technology; and

(E) zero-emission and clean alternative fuel vessel infrastructure, including bunkering and storage for vessels.

(9) Environmental co-benefits.— The term environmental co-benefits means the additional positive environmental impacts or advantages that arise as a result of implementing a particular policy, technology, or initiative.

(10) Fueling infrastructure.— The term fueling infrastructure means the infrastructure and facilities essential for supplying, storing, handling, and distributing alternative fuels or energy sources used for powering vessels.

(11) Maritime decarbonization.— The term maritime decarbonization means the process of reducing or eliminating carbon dioxide emissions associated with maritime transportation activities and involves implementing a range of strategies, technologies, and policies aimed at mitigating the environmental impact of vessel operations, including the adoption of alternative fuels, energy efficiency measures, operational improvements, and regulatory measures designed to promote the transition to zero emission vessel technologies.

(12) National Laboratory.— The term National Laboratory has the meaning given such term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).

(13) Program.— The term Program means the Next Generation Shipping Innovation Program established under section 3.

(14) Project labor agreement.— The project labor agreement means a pre-hire collective bargaining agreement with 1 or more labor organizations that establishes the terms and conditions of employment for a specific construction project and is described in section 8(f) of the National Labor Relations Act (29 U.S.C. 158(f)).

(15) Secretary.— The term Secretary means the Secretary of Transportation.

(16) Zero-emission.— The term zero-emission, with respect to a vessel, means the vessel produces zero emissions of any criteria pollutant, precursor pollutant, or greenhouse gas, other than water vapor during its operation, typically by utilizing renewable energy sources, clean alternative fuels, and efficiency technologies.

(a) In general.— The Secretary shall establish a program to be known as the “Next Generation Shipping Innovation Program” to support the research, design, development, demonstration, and deployment of zero-emission vessels and retrofit or replacement of existing vessels with zero-emission vessel technologies and charging infrastructure or fueling infrastructure.

(b) Mechanisms.— In carrying out the Program, the Secretary may provide eligible entities with finance mechanisms to support eligible projects, including grants, low-interest loans, and loan guarantees.

(c) Prioritization.— In carrying out the Program, the Secretary shall prioritize eligible projects that—

(1) advance the efficiency and reliability, and reduce the costs, of zero-emission vessel development;

(2) improve the components, controls, manufacturing, materials, and infrastructure that support zero-emission vessels;

(3) reduce underwater noise emissions from vessels;

(4) emphasize technologies with environmental co-benefits such as biofouling reduction;

(5) advance synergies between offshore renewable energy development and maritime decarbonization and ocean noise, such as through the deployment of zero-emission and quiet offshore wind support vessels;

(6) utilize a project labor agreement or community benefits agreement;

(7) advance environmental justice and engage communities affected by maritime transport in all phases of the project including the development, planning, and execution of the project; and

(8) support workforce training and development for the research, design, development, demonstration, deployment, and maintenance of zero-emission and clean alternative fuel vessels and charging infrastructure or fueling infrastructure, including through—

(A) centers of excellence for domestic maritime workforce training and education designated under section 51706 of title 46, United States Code; and

(B) nonprofit institutions described in section 2(7)(A)(vii), for the purpose of developing, updating, and delivering Coast Guard-approved training curricula, simulation technology, and certification programs for individuals who have, or are obtaining, merchant mariner credentials to operate zero-emission vessels or clean alternative fuel vessels, consistent with the applicable requirements of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers.

(d) Transparency.— In carrying out the Program, the Secretary shall make publicly available each year on the website of the Department applications submitted for funding mechanisms under this section, including applications selected and not selected for funding.

(e) Coordination and leveraging of resources.— In carrying out the Program, the Secretary shall, to the maximum extent practicable—

(1) coordinate with each relevant office in the Department and any other Federal agency;

(2) leverage existing resources and programs of the Department and other relevant Federal agencies;

(3) leverage public-private partnerships; and

(4) engage and solicit input from environmental justice communities and environmental organizations on project impacts and benefits.

(f) Administrative costs.— The Secretary may use up to 10 percent of the amounts made available to carry out this section for the administrative costs of carrying out the Program.

(g) Wages.— All laborers and mechanics employed by a subgrantee of an eligible entity, and any subgrantee thereof at any tier, to perform construction, alteration, installation, or repair work that is assisted, in whole or in part, by funding awarded under this section shall be paid wages at rates not less than those prevailing on similar construction, alteration, installation, or repair work in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code.

(h) Funding.— There is authorized to carry out the Program under this section $1,000,000,000 for each of fiscal years 2027 through 2036.

(i) Prohibition.— No funds made available to carry out this section shall be spent for the study, design, implementation, or installation of automated vessels, automated vessel operating systems, automated cargo handling systems on a vessel, or automated cargo handling systems for loading or unloading vessels.

(a) Establishment.— Not later than 180 days after the date of enactment of this Act, the Secretary, in coordination with the Maritime Administrator, shall establish an advisory committee, to be known as the “Next Generation Shipping Advisory Committee”.

(b) Membership.—

(1) Appointment.— The Committee shall be composed of not fewer than 15 members, who shall be appointed by the Secretary, in coordination with the Maritime Administrator.

(2) Representation.— Members appointed pursuant to paragraph (1) shall include—

(A) not less than 1 representative of each relevant Federal agency, as determined by the Secretary;

(B) not less than 2 representatives of labor groups;

(C) not less than 3 representatives of the research community, which shall include academia and National Laboratories;

(D) not less than 2 representatives of nongovernmental environmental justice organizations;

(E) not less than 2 representatives of nongovernmental environmental organizations;

(F) not less than 2 representatives of the maritime industry;

(G) not less than 2 representatives of the zero-emissions fuel industry;

(H) not less than 1 representative of a State government;

(I) not less than 2 representatives from United States ports; and

(J) any other individual whom the Secretary, in coordination with the Maritime Administrator, determines to be necessary to ensure that the Committee is composed of a diverse group of representatives of industry, academia, independent researchers, and public and private entities.

(3) Chair.— The Secretary shall designate a member of the Committee to serve as Chair.

(c) Duties.— The Committee shall advise the Secretary and the Maritime Administrator with respect to the Program by—

(1) identifying and evaluating any zero-emission vessel technologies being developed by the private sector or other Federal agencies;

(2) identifying technology gaps in the private sector in zero-emissions vessels, and making recommendations to address those gaps through the implementation of the Program;

(3) surveying and analyzing factors that prevent the adoption of zero-emission vessel technologies by the private sector;

(4) recommending technology screening criteria for technology supported under the Program; and

(5) specifying near-term and long-term qualitative and quantitative objectives relating to the development of zero-emissions vessel technologies.

(d) Meetings.—

(1) Frequency.— The Committee shall meet not less frequently than 2 times per year, at the call of the Chair.

(2) Initial meeting.— Not later than 30 days after the date on which the members are appointed under subsection (b), the Committee shall hold a first meeting.

(e) Committee report.—

(1) In general.— Not later than 2 years after the date of enactment of this Act, and not less frequently than once every 3 years thereafter, the Committee shall submit to the Secretary a report on the progress of achieving the purposes of the Program described in section 3(a).

(2) Contents.— The report under paragraph (1) shall include—

(A) a description of any technology innovation opportunities identified by the Committee;

(B) a description of any technology gaps identified by the Committee;

(C) an evaluation of the progress of the Program and the research, development, and demonstration activities funded through the Program;

(D) an assessment of the extent to which progress has been made under the Program in developing commercial, cost-competitive zero-emission vessel technologies; and

(E) an assessment of the effectiveness of the Program in coordinating efforts within the Department and with other Federal agencies to achieve the purposes of the Program.

(f) Report to Congress.— Not later than 60 days after receiving a report from the Committee under subsection (e), the Secretary shall submit a copy of such report to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.