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.