Estimated reading time: 3 minutes
Bill targets vessels, fuels and port infrastructure
U.S. lawmakers have reintroduced the Next Generation Shipping Act, a bill that would create a $1 billion per year federal program to support clean shipping technology, zero emission vessels and related port infrastructure.
The program would sit under the Department of Transportation, through MARAD, and would support research, design, development, demonstration and deployment of zero emission vessels, vessel retrofits, charging infrastructure and fueling infrastructure.
The bill authorizes $1 billion for each fiscal year from 2027 through 2036, making it a potential $10 billion federal commitment if approved by Congress and fully funded.
For ports, shipowners, terminal operators and equipment suppliers, the proposal is not just a climate bill. It is also an industrial policy measure. Like shore power, alternative fuels and new cargo handling systems, the clean shipping transition only works when vessels and land side infrastructure are built together.
Ports and coastal communities in focus
Rep. Nanette Barragán, Rep. Troy A. Carter, Sr. and Senator Chris Van Hollen are behind the reintroduction. Barragán said shipping remains vital to the economy and to the ports of Los Angeles and Long Beach, but should not come at the expense of public health.
“The Next Generation Shipping Act is about investing in cleaner technologies, supporting American jobs, making sure the United States leads in the future of maritime innovation, all while making sure we do so in a way that preserves public health,” Barragán said.
The legislation places particular emphasis on port and coastal communities exposed to emissions from ships, terminals and related transport activity. It also prioritizes projects that advance environmental justice, community engagement, workforce training and project labor agreements.
Funding tools include grants and loans
The bill would allow the Secretary of Transportation to use grants, low interest loans and loan guarantees for eligible projects. Eligible applicants would include U.S. vessel owners and operators, U.S. based vessel manufacturers, component suppliers, port authorities, terminal operators, academic institutions and certain nonprofit maritime training institutions.
Eligible projects include zero emission vessels, clean alternative fuel vessels, vessel energy efficiency technology, shore power systems, charging infrastructure, fuel storage and bunkering infrastructure.
The bill also includes a restriction. Program funds could not be used for automated vessels, automated vessel operating systems or automated cargo handling systems for loading or unloading vessels.
Advisory committee would guide program
The legislation would create a Next Generation Shipping Advisory Committee with representatives from federal agencies, labor groups, research institutions, environmental justice groups, the maritime industry, zero emission fuel providers, state government and U.S. ports.
The committee would advise MARAD on technology gaps, adoption barriers and near term and long term targets for zero emission vessel development.
