The bill directs substantial, multi‑year federal funding and federal coordination to accelerate zero‑emission vessels, shore power, workforce development, and R&D—trading significant public investment and higher labor/administrative costs for faster deployment of cleaner maritime technology and related local economic and health benefits.
Ports, shipping companies, terminal owners, and vessel manufacturers gain access to a dedicated $1 billion/year (FY2027–2036) in grants, loans, and loan guarantees to deploy zero‑emission vessels and shore charging/fueling infrastructure, reducing long‑term fuel and operating costs and accelerating deployment.
Coastal and port communities (and marine ecosystems) will see reduced air pollution, lower greenhouse gas emissions, and less underwater noise as vessels shift toward shore power and zero‑emission technologies.
Maritime workers, shipbuilders, students, and unions gain new workforce-development, training, and hiring opportunities through Centers of Excellence, nonprofit partners, and tied grant programs.
Taxpayers fund $1 billion per year for ten years, increasing federal spending and creating opportunity costs that could have funded other priorities.
Prevailing wage (Davis‑Bacon) requirements and project labor agreement preferences raise labor and project costs, which could reduce the number of projects funded or increase required grant/loan amounts (raising taxpayer or private funding needs).
Setting a strict 90% lifecycle GHG reduction threshold for 'clean alternative fuel' may disqualify emerging lower‑carbon fuels and technologies that don't yet meet the cutoff, limiting available project options and technology diversity.
Based on analysis of 4 sections of legislative text.
Creates a DOT program to fund zero-emission vessels and shore charging/fueling infrastructure, authorizing $1B/year for FY2027–FY2036 and prohibiting funding for automation.
Official title: Direct the Secretary of Transportation to establish a 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, and for other purposes.
Introduced June 24, 2026 by Christopher Van Hollen · Last progress June 24, 2026
Creates a Next Generation Shipping Innovation Program at the Department of Transportation to fund research, development, demonstration, deployment, retrofit, and replacement of zero-emission vessels and related shore charging/fueling infrastructure. The program can award grants, low-interest loans, and loan guarantees and is authorized $1 billion per year for FY2027–FY2036. The law defines key terms, prohibits use of program funds for automated vessels or automated cargo handling systems, requires use of Davis‑Bacon prevailing wages for covered construction work, requires public posting of funding applications, and establishes a stakeholder advisory committee to guide technology priorities and report regularly to the Secretary and Congress.