Next Generation Shipping Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4935 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4935

  To direct the Secretary of Transportation to establish a 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, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 24, 2026

 Mr. Van Hollen (for himself and Mr. Booker) introduced the following
 bill; which was read twice and referred to the Committee on Commerce,
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

  To direct the Secretary of Transportation to establish a 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, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Next Generation Shipping Act''.

SEC. 2. DEFINITIONS.

    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.

SEC. 3. NEXT GENERATION SHIPPING INNOVATION PROGRAM.

    (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.

SEC. 4. NEXT GENERATION SHIPPING ADVISORY COMMITTEE.

    (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.
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