Next Generation Shipping Act

Federal grants for zero-emission shipping

If enacted, the bill would create the Next Generation Shipping Innovation Program to fund zero-emission vessels, retrofit projects, and related charging or fueling infrastructure. It would authorize $1 billion each year for fiscal years 2027 through 2036 and let the Secretary provide grants, low-interest loans, and loan guarantees. Projects that get money would need to pay prevailing wages for construction or installation, and up to 10 percent of each year’s money could be used for administration. Program funds could not be used for automated vessels or automated cargo handling systems. The bill would set who can apply, including U.S. vessel owners/operators, U.S.-based manufacturers, ports, and certain academic or nonprofit partners, and it would exclude foreign governments. It would also define key terms, for example requiring 'clean alternative fuel' to cut lifecycle greenhouse gas emissions by at least 90 percent and defining charging infrastructure to include shore power and onshore charging stations. The Secretary would have to coordinate with partners, engage environmental justice communities, and post funded and unfunded applications publicly each year.