Maritime modernization grant program

(a)

Definitions

In this section:(1)

Eligible entity

The term eligible entity means an entity described in subsection (d).(2)

Indian Tribe

The term Indian Tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304).(3)

Low-income or disadvantaged community

The term low-income or disadvantaged community means a community (including a city, a town, a county, and any reasonably isolated and divisible segment of a larger municipality) with an annual median household income that is less than 100 percent of the statewide annual median household income for the State in which the community is located, according to the most recent decennial census. (4)

Program

The term program means the program established under subsection (b).(5)

Secretary

The term Secretary means the Secretary of Energy.(b)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary shall establish a program under which the Secretary shall provide grants, on a competitive basis, to eligible entities for—(1)the purchase, installation, construction, facilitation, maintenance, or operation of, as appropriate—(A)hydrogen- or ammonia-fueled cargo-handling equipment, including, at a minimum, equipment used for drayage applications;(B)hydrogen fuel cell or ammonia-fueled trucks for use at ports;(C)hydrogen fuel cell or ammonia-fueled ferries, tugboats, dredging vessels, container ships, bulk carriers, fuel tankers, and other marine vessels;(D)hydrogen fuel cell-based shore power for ships while docked at the port;(E)hydrogen fuel cell or ammonia onsite power plants; and(F)port infrastructure for hydrogen or ammonia import, export, storage, and fueling; and(2)the training of ship crew and shore personnel to handle hydrogen or ammonia. (c)

Goals

The goals of the program shall be—(1)to demonstrate fuel cell, hydrogen, or ammonia technologies in maritime and associated logistics applications;(2)to assist in the development and validation of technical targets for hydrogen, ammonia, and fuel cell systems for maritime and associated logistics applications;(3)to benchmark the conditions required for broad commercialization of hydrogen, ammonia, and fuel cell technologies in maritime and associated logistics applications;(4)to assess the operational and technical considerations for installing, constructing, and using hydrogen- or ammonia-fueled equipment and supporting infrastructure at ports; and(5)to reduce emissions and improve air quality in areas in and around ports. (d)

Eligible entities

(1)

In general

An entity eligible to receive a grant under the program is—(A)a State;(B)a political subdivision of a State;(C)a local government;(D)a public agency or publicly chartered authority established by 1 or more States;(E)a special purpose district with a transportation function;(F)an Indian Tribe or a consortium of Indian Tribes;(G)a multistate or multijurisdictional group of entities described in any of subparagraphs (A) through (F); or(H)subject to paragraph (2), a private entity or group of private entities, including the owners or operators of 1 or more facilities at a port.(2)

Joint eligibility with private entities

A private entity or group of private entities is eligible for a grant under the program if—(A)the private entity or group of private entities partners with an entity described in any of subparagraphs (A) through (G) of paragraph (1) for purposes of applying for, and carrying out activities under, the grant; and(B)the entity described in the applicable subparagraph of that paragraph is the lead entity with respect to the application and those activities.(e)

Applications

(1)

In general

An eligible entity desiring a grant under the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.(2)

Requirement

The application of an eligible entity described in subparagraph (H) of subsection (d)(1) shall be submitted jointly with an entity described in subparagraphs (A) through (G) of that subsection.(f)

Considerations

In providing grants under the program, the Secretary, to the maximum extent practicable, shall—(1)select projects that will generate the greatest benefit to low-income or disadvantaged communities; and(2)select projects that will—(A)maximize the creation or retention of jobs in the United States; and(B)provide the highest job quality.(g)

Priority

In selecting eligible entities to receive a grant under the program, the Secretary shall give priority to projects that will provide greater net impact in avoiding or reducing emissions of greenhouse gases.(h)

Leak detection

Each eligible entity that receives a grant under the program shall conduct—(1)a hydrogen leakage monitoring, reporting, and verification (also known as MRV) program; and(2)a hydrogen leak detection and repair (also known as LDAR) program.(i)

Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out this section $100,000,000 for each of fiscal years 2022 through 2026.

Study

(a)

In general

The Secretary of Energy, in consultation with the Secretary of Transportation and the Secretary of Homeland Security, shall conduct, and submit to Congress a report describing the results of, a study—(1)to fully address the challenges to ensure the safe use and handling of hydrogen, ammonia, and other hydrogen-based fuels on vessels and in ports;(2)to identify, compare, and evaluate the feasibility of, the safety, environmental, and health impacts of, and best practices with respect to, the use of hydrogen-derived fuels, including ammonia, as a shipping fuel; (3)to identify and evaluate considerations for hydrogen and ammonia storage, including—(A)at ports; (B)on board vessels; and(C)for subsea hydrogen storage; and(4)to assess the cost and value of a hydrogen or ammonia strategic reserve, either as a new facility or as a modification to the Strategic Petroleum Reserve established under part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231 et seq.). (b)

Requirements

In carrying out subsection (a), the Secretary of Energy, the Secretary of Transportation, and the Secretary of Homeland Security shall—(1)take into account lessons learned from demonstration projects in other industries, including—(A)projects carried out in the United States;(B)projects carried out in other countries; and(C)projects relating to the automotive industry, buses, petroleum refining, chemical production, fertilizer production, and stationary power; and (2)evaluate the applicability of the lessons described in paragraph (1) to the use of hydrogen in maritime and associated logistics applications.