Decarbonizing shipping and ports

(a) Modernizing the Jones Act fleet (1) Definitions In this subsection: (A) Administrator The term Administrator means the Administrator of the Maritime Administration. (B) Low-carbon fuel The term low-carbon fuel means a marine fuel the lifecycle CO 2 -e emissions of which is at least 90 percent less than the lifecycle CO 2 -e emissions of marine fuel oil. (C) Program The term program means the program established under paragraph (2). (D) Vessel of the United States The term vessel of the United States has the meaning given the term in section 116 of title 46, United States Code. (2) Establishment For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Maritime Administration an amount equal to 25 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year to award grants, rebates, and low-interest loans, as determined appropriate by the Administrator, to eligible entities— (A) to replace existing Jones Act vessels that use marine fuel oil for propulsion power with vessels that are exclusively propelled using batteries, low-carbon fuels, or other zero-emissions technologies; or (B) to retrofit existing Jones Act vessels that use marine fuel oil for propulsion power into vessels that are exclusively propelled using batteries, low-carbon fuels, or other zero-emissions technologies. (3) Modeled off Diesel Emissions Reduction Act To the extent practicable, the Administrator shall develop an application process, provide public notification, inform eligible entities of zero-emissions technologies, and submit to Congress an evaluation and report on the efficacy of the program in a manner similar to the national grant program of the Administrator of the Environmental Protection Agency under subtitle G of title VII of the Energy Policy Act of 2005 (42 U.S.C. 16131 et seq.). (4) Eligible entities An entity eligible for an award under the program is an owner of a Jones Act vessel that currently uses marine fuel oil for propulsion power. (5) Selection (A) Application An eligible entity seeking an award under the program shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require, which shall include a certification that an award under the program will be used, as applicable— (i) to purchase, or enter into a contract for the construction of, a vessel that exclusively uses a battery or low-carbon fuels for all propulsion power; or (ii) to retrofit an existing Jones Act vessel that uses marine fuel oil for propulsion power into a vessel that is propelled using batteries or low-carbon fuels. (B) Priority In selecting the recipients of awards under the program, the Administrator shall give priority to entities the replacement or retrofit of whose vessels would— (i) maximize the reduction of greenhouse gas emissions; (ii) maximize the public health benefits from the reduction of criteria air pollutants; (iii) maximize water quality in ports and other bodies of water; (iv) maximize public health and environmental benefits from every dollar spent under the program; and (v) alleviate air pollution in poor air quality areas, including— (I) areas identified by the Administrator of the Environmental Protection Agency as in nonattainment or maintenance of national ambient air quality standards promulgated under section 109 of the Clean Air Act (42 U.S.C. 7409) for criteria air pollutants; and (II) other areas that receive a disproportionate quantity of air pollution, as determined by the Administrator of the Environmental Protection Agency. (6) Clawback If the Administrator determines that the recipient of an award under the program has violated the certification required under paragraph (5)(A), the Administrator shall seek reimbursement of the full amount of the award provided to the recipient. (7) Modernizing vessels of the United States If the Administrator determines that no existing Jones Act vessels are eligible to receive funding under the program, for the duration of that determination, paragraphs (2) through (6) shall be applied by substituting vessel of the United States for Jones Act vessel. (8) Program administration Of the amounts made available under paragraph (2) each fiscal year, the Administrator may use not more than 1 percent for the management and oversight of the program. (b) Research and development for low-Carbon maritime fuels and low-Emission maritime technologies (1) Definition of eligible entity In this subsection, the term eligible entity means— (A) a State (including the District of Columbia and territories of the United States), regional, local, or Tribal government; (B) a maritime shipping or logistics company; (C) a port authority; (D) an accredited institution of higher education; (E) a research institution; (F) a person engaged in the production, transportation, blending, or storage of sustainable maritime fuel in the United States or feedstocks in the United States that may be used to produce sustainable maritime fuel; (G) a person engaged in the development, demonstration, or application of low-emission maritime technologies; and (H) a nonprofit entity or nonprofit consortium with experience in sustainable maritime fuels, low-emission maritime technologies, or other clean transportation research programs. (2) Establishment For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Department of Energy an amount equal to 25 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year to award competitive grants to eligible entities to carry out projects in the United States— (A) to produce, transport, blend, or store low-carbon maritime fuels; or (B) to develop, demonstrate, or apply low-emission maritime technologies. (3) Priority In awarding grants under the program established under paragraph (2), the Secretary of Energy shall give priority to projects that maximize— (A) the domestic production and deployment of sustainable maritime fuels or the use of low-emission maritime technologies in commercial maritime; (B) reductions in greenhouse gas emissions; (C) public health benefits from criteria air pollutant reductions; (D) water quality in ports and other bodies of water; (E) public health and environmental benefits from every dollar spent under that program; and (F) the creation of new jobs in the United States. (4) Program administration Of the amounts made available under paragraph (2) each fiscal year, the Administrator may use not more than 1 percent for the management and oversight of the program established under that paragraph. (c) Workforce development (1) Definitions In this subsection: (A) Low-carbon fuel The term low-carbon fuel means a marine fuel the lifecycle CO 2 -e emissions of which is at least 90 percent less than the lifecycle CO 2 -e emissions of marine fuel oil. (B) Maritime academy The term maritime academy means— (i) the United States Merchant Marine Academy; (ii) a State maritime academy; and (iii) a center of excellence for domestic maritime workforce training and education designated under section 51706(a) of title 46, United States Code. (C) Program The term program means the program established under paragraph (2). (D) Zero-emission port equipment or technology The term zero-emission port equipment or technology has the meaning given the term in section 133(d) of the Clean Air Act (42 U.S.C. 7433(d)) (as in effect on January 1, 2025). (2) Establishment For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Environmental Protection Agency an amount equal to 5 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year to award grants and rebates to support workforce training and development for the maintenance and operation of zero-emission port equipment or technology and vessels that are propelled using batteries or low-carbon fuels, including training, programming, and curriculum development at maritime academies on the maintenance and operation of zero-emission port equipment or technology and vessels that are propelled using batteries or low-carbon fuels. (3) Eligible entities An entity eligible to receive an award under the program is— (A) a State (including the District of Columbia and territories of the United States), regional, local, or Tribal agency that has jurisdiction over a port authority or a port; (B) a port authority; (C) an air pollution control agency; (D) a maritime academy; and (E) a private entity that— (i) applies for a grant under this subsection in partnership with an entity described in any of subparagraphs (A) through (D); and (ii) owns, operates, or uses— (I) vessels, the primary purpose of which are transporting cargo or freight, that are propelled using batteries or low-carbon fuels; or (II) the facilities, cargo-handling equipment, transportation equipment, or related technology of a port. (4) Application An eligible entity seeking an award under the program shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require. (5) Program administration Of the amounts made available under paragraph (2) each fiscal year, the Administrator may use not more than 1 percent for the management and oversight of the program. (d) Harbor craft electrification (1) Establishment For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Environmental Protection Agency an amount equal to 10 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year to award grants, rebates, or low-interest loans, as determined appropriate by the Administrator— (A) to replace or retrofit existing harbor craft, except for ferry vessels, with vessels that use batteries for all propulsion power; and (B) to support workforce development and training to support the maintenance, charging, fueling, and operation of vessels described in subparagraph (A). (2) Modeled off Diesel Emissions Reduction Act To the extent practicable, the Administrator shall develop an application process, provide public notification, inform eligible entities of zero-emissions technologies, and submit to Congress an evaluation and report on the efficacy of the program established under paragraph (1) in a manner similar to the national grant program of the Administrator under subtitle G of title VII of the Energy Policy Act of 2005 (42 U.S.C. 16131 et seq.). (3) Eligible entities An entity eligible to receive an award under the program established under paragraph (1) is— (A) a State (including the District of Columbia and territories of the United States), regional, local, or Tribal agency that has jurisdiction over a port authority or a port; (B) a port authority; and (C) a private entity that— (i) applies for an award under this subsection in partnership with an entity described in subparagraph (A) or (B); and (ii) owns, operates, or uses harbor craft, except for ferry vessels. (4) Selection (A) Application An eligible entity seeking an award under the program established under paragraph (1) shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require, which shall include a certification that an award under the program will be used to purchase a vessel that exclusively uses a battery for all propulsion power. (B) Priority In selecting the recipients of awards under the program established under paragraph (1), the Administrator shall give priority to entities the replacement or retrofit of whose harbor crafts with vessels that use batteries for all propulsion power would— (i) maximize the reduction of greenhouse gas emissions; (ii) maximize the public health benefits from the reduction of criteria air pollutants; (iii) maximize water quality in ports and other bodies of water; (iv) maximize public health and environmental benefits from every dollar spent under the program; and (v) alleviate air pollution in poor air quality areas, including— (I) areas identified by the Administrator as in nonattainment or maintenance of national ambient air quality standards promulgated under section 109 of the Clean Air Act (42 U.S.C. 7409) for criteria air pollutants; and (II) other areas that receive a disproportionate quantity of air pollution, as determined by the Administrator. (5) Clawback If the Administrator determines that the recipient of an award under the program established under paragraph (1) has violated the certification required under paragraph (4)(A), the Administrator shall seek reimbursement of the full amount of the award provided to the recipient. (6) Program administration Of the amounts made available under paragraph (1) each fiscal year, the Administrator may use not more than 1 percent for the management and oversight of the program established under that paragraph. (e) Ferry electrification (1) Establishment For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Environmental Protection Agency an amount equal to 10 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year to award grants, rebates, or low-interest loans, as determined appropriate by the Administrator— (A) to replace or retrofit existing ferry or crew vessels with vessels that use batteries for all propulsion power; and (B) to support workforce development and training to support the maintenance, charging, fueling, and operation of vessels described in subparagraph (A) that use batteries for all propulsion power. (2) Modeled off Diesel Emissions Reduction Act To the extent practicable, the Administrator shall develop an application process, provide public notification, inform eligible entities of zero-emissions technologies, and submit to Congress an evaluation and report on the efficacy of the program established under paragraph (1) in a manner similar to the national grant program of the Administrator under subtitle G of title VII of the Energy Policy Act of 2005 (42 U.S.C. 16131 et seq.). (3) Eligible entities An entity eligible to receive an award under the program established under paragraph (1) is— (A) a State (including the District of Columbia and territories of the United States), regional, local, or Tribal agency that has jurisdiction over a ferry line; (B) a port authority; and (C) a private entity that— (i) applies for an award under this subsection in partnership with an entity described in subparagraph (A) or (B); and (ii) owns, operates, or uses ferry or crew vessels. (4) Selection (A) Application An eligible entity seeking an award under the program established under paragraph (1) shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require, which shall include a certification that an award under the program will be used to purchase a vessel that exclusively uses a battery for all propulsion power. (B) Priority In selecting the recipients of awards under the program established under paragraph (1), the Administrator shall give priority to entities the replacement or retrofit of whose ferry or crew vessels with vessels that use batteries for all propulsion power would— (i) maximize the reduction of greenhouse gas emissions; (ii) maximize the public health benefits from the reduction of criteria air pollutants; (iii) maximize water quality in ports and other bodies of water; (iv) maximize public health and environmental benefits from every dollar spent under the program; and (v) alleviate air pollution in poor air quality areas, including— (I) areas identified by the Administrator as in nonattainment or maintenance of national ambient air quality standards promulgated under section 109 of the Clean Air Act (42 U.S.C. 7409) for criteria air pollutants; and (II) other areas that receive a disproportionate quantity of air pollution, as determined by the Administrator. (5) Clawback If the Administrator determines that the recipient of an award under the program established under paragraph (1) has violated the certification required under paragraph (4)(A), the Administrator shall seek reimbursement of the full amount of the award provided to the recipient. (6) Program administration Of the amounts made available under paragraph (1) each fiscal year, the Administrator may use not more than 1 percent for the management and oversight of the program established under that paragraph. (f) Increased air monitoring in port communities (1) Establishment For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Environmental Protection Agency an amount equal to 5 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year to provide grants, rebates, or low-interest loans, as determined appropriate by the Administrator, to create fenceline air monitoring at port boundaries and in communities located within 1 mile of a port boundary. (2) Eligible entities An entity eligible to receive an award under the program established under paragraph (1) is— (A) a State (including the District of Columbia and territories of the United States), regional, local, or Tribal government; (B) a State (including the District of Columbia and territories of the United States), regional, local, or Tribal agency that has jurisdiction over a port authority or port; (C) a port authority; (D) an air pollution control agency; and (E) a nonprofit entity or nonprofit consortium with experience in air pollution monitoring. (3) Application An eligible entity seeking an award under the program established under paragraph (1) shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require. (4) Program administration Of the amounts made available under paragraph (1) each fiscal year, the Administrator may use not more than 1 percent for the management and oversight of the program established under that paragraph. (g) Funding of existing programs (1) Clean ports program For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Environmental Protection Agency an amount equal to 15 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year to carry out the program established under section 133 of the Clean Air Act (42 U.S.C. 7433). (2) Oceans and coastal security For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the National Oceanic and Atmospheric Administration an amount equal to 3 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year for deposit into the National Oceans and Coastal Security Fund established under section 904(a) of the National Oceans and Coastal Security Act (16 U.S.C. 7503(a)). (3) Marine Debris Foundation For fiscal year 2029 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Department of Commerce an amount equal to 2 percent of the amounts collected pursuant to fees assessed under sections 5 and 6 during the previous calendar year to carry out subtitle B of title I of the Save Our Seas 2.0 Act (33 U.S.C. 4211 et seq.).