Sec. 7. Decarbonizing shipping and ports
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In this subsection: The term Administrator means the Administrator of the Maritime Administration. The term Jones Act vessel means a documented vessel (as defined in section 106 of title 46, United States Code) with a coastwise endorsement under section 12112 of that title. The term low-carbon fuel means a marine fuel the lifecycle carbon dioxide-equivalent emissions of which is at least 90 percent less than the lifecycle carbon dioxide-equivalent emissions of marine fuel oil.
The term program means the program established under paragraph (2). The term vessel of the United States has the meaning given the term in section 116 of title 46, United States Code. For fiscal year 2026 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— to replace existing Jones Act vessels that use marine fuel oil for propulsion power with vessels that are propelled using batteries or low-carbon fuels; or to retrofit existing Jones Act vessels that use marine fuel oil for propulsion power into vessels that are propelled using batteries or low-carbon fuels.
To the extent practicable, the Administrator shall administer 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. ). 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. 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— 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 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.
In selecting the recipients of awards under the program, the Administrator shall give priority to entities the replacement of whose vessels with vessels that use batteries or low-carbon fuels for all propulsion power would— maximize the reduction of greenhouse gas emissions; maximize the public health benefits from the reduction of criteria air pollutants; maximize water quality in ports and other bodies of water; maximize public health and environmental benefits from every dollar spent under the program; and alleviate air pollution in poor air quality areas, including— 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 other areas that receive a disproportionate quantity of air pollution, as determined by the Administrator of the Environmental Protection Agency.
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. 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 . In this subsection, the term eligible entity means— a State (including the District of Columbia and territories of the United States), regional, local, or Tribal government; a maritime shipping or logistics company; a port authority; an accredited institution of higher education; a research institution; 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; a person engaged in the development, demonstration, or application of low-emission maritime technologies; and a nonprofit entity or nonprofit consortium with experience in sustainable maritime fuels, low-emission maritime technologies, or other clean transportation research programs. For fiscal year 2026 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— to produce, transport, blend, or store low-carbon maritime fuels; or to develop, demonstrate, or apply low-emission maritime technologies. In awarding grants under the program established under paragraph (2), the Secretary of Energy shall give priority to projects that maximize— the domestic production and deployment of sustainable maritime fuels or the use of low-emission maritime technologies in commercial maritime; reductions in greenhouse gas emissions; public health benefits from criteria air pollutant reductions; water quality in ports and other bodies of water; public health and environmental benefits from every dollar spent under that program; and the creation of new jobs in the United States. In this subsection: The term low-carbon fuel means a marine fuel the lifecycle carbon dioxide-equivalent emissions of which is at least 90 percent less than the lifecycle carbon dioxide-equivalent emissions of marine fuel oil. The term maritime academy means— the United States Merchant Marine Academy; a State maritime academy; and a center of excellence for domestic maritime workforce training and education designated under section 51706(a) of title 46, United States Code. The term program means the program established under paragraph (2). 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) ). For fiscal year 2026 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. An entity eligible to receive an award under the program is— 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; a port authority; an air pollution control agency; a maritime academy; and a private entity that— applies for a grant under this subsection in partnership with an entity described in any of subparagraphs
(A)through (D); and owns, operates, or uses— vessels, the primary purpose of which are transporting cargo or freight, that are propelled using batteries or low-carbon fuels; or the facilities, cargo-handling equipment, transportation equipment, or related technology of a port. 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. For fiscal year 2026 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— to replace existing harbor craft, except for ferry vessels, with vessels that use batteries for all propulsion power; and to support workforce development and training to support the maintenance, charging, fueling, and operation of vessels described in subparagraph (A). To the extent practicable, the Administrator shall administer 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. ). An entity eligible to receive an award under the program established under paragraph
(1)is— 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; a port authority; and a private entity that— applies for an award under this subsection in partnership with an entity described in subparagraph
(A)or (B); and owns, operates, or uses harbor craft, except for ferry vessels. 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. In selecting the recipients of awards under the program established under paragraph (1), the Administrator shall give priority to entities the replacement of whose harbor crafts with vessels that use batteries for all propulsion power would— maximize the reduction of greenhouse gas emissions; maximize the public health benefits from the reduction of criteria air pollutants; maximize water quality in ports and other bodies of water; maximize public health and environmental benefits from every dollar spent under the program; and alleviate air pollution in poor air quality areas, including— 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 other areas that receive a disproportionate quantity of air pollution, as determined by the Administrator. 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. For fiscal year 2026 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— to replace existing ferry or crew vessels with vessels that use batteries for all propulsion power; and 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. To the extent practicable, the Administrator shall administer 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. ). An entity eligible to receive an award under the program established under paragraph
(1)is— 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; a port authority; and a private entity that— applies for an award under this subsection in partnership with an entity described in subparagraph
(A)or (B); and owns, operates, or uses ferry or crew vessels. 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. In selecting the recipients of awards under the program established under paragraph (1), the Administrator shall give priority to entities the replacement of whose ferry or crew vessels with vessels that use batteries for all propulsion power would— maximize the reduction of greenhouse gas emissions; maximize the public health benefits from the reduction of criteria air pollutants; maximize water quality in ports and other bodies of water; maximize public health and environmental benefits from every dollar spent under the program; and alleviate air pollution in poor air quality areas, including— 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 other areas that receive a disproportionate quantity of air pollution, as determined by the Administrator. 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. For fiscal year 2026 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 3 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. An entity eligible to receive an award under the program established under paragraph
(1)is— a State (including the District of Columbia and territories of the United States), regional, local, or Tribal government; 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; a port authority; an air pollution control agency; and a nonprofit entity or nonprofit consortium with experience in air pollution monitoring. 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. For fiscal year 2026 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 carry out the program established under section 133 of the Clean Air Act ( 42 U.S.C. 7433 ). For fiscal year 2026 and each fiscal year thereafter, there are appropriated, out of any funds in the Treasury not otherwise appropriated, to the Department of Transportation an amount equal to 7 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 54301 of title 46, United States Code. For fiscal year 2026 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 ). For fiscal year 2026 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. ).
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- 33 USC 4211
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Sec. 7
Decarbonizing shipping and ports
Cite33 USC 4211
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