Maritime fuel modernization grant program

(a)

Definitions

In this section: (1)

Eligible entity

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

Eligible fuel

The term eligible fuel means— (A)hydrogen; or (B)ammonia. (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 Transportation. (6)

Tribal government

The term Tribal government means the recognized governing body of any Indian or Alaska Native Tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) on the list published most recently as of the date of enactment of this Act pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131). (b)

Establishment of program

Not later than 180 days after the date of enactment of this Act, the Secretary, in coordination with the Secretary of Energy, shall establish a program under which the Secretary shall provide grants, on a competitive basis, to eligible entities for— (1)the purchase, installation, planning, design, or construction of, as appropriate— (A)fuel cell cargo-handling equipment that uses an eligible fuel; (B)fuel cell drayage or long-haul trucks that— (i)use an eligible fuel; and (ii)are for use at ports; (C)fuel cell ferries, tugboats, dredging vessels, container ships, bulk carriers, fuel tankers, commercial fishing vessels, cruise ships, or other marine vessels that use an eligible fuel; (D)fuel cell locomotives that— (i)use an eligible fuel; and (ii)are for use at ports; (E)fuel cell shore power systems that— (i)use an eligible fuel; and (ii)are used for ships while docked at port; (F)onsite fuel cell power plants that— (i)use an eligible fuel; and (ii)are located at port facilities; or (G)port infrastructure for establishing or expanding the supply of eligible fuel for import, export, storage, bunkering, or fueling; and (2)the training of ship crew and shore personnel— (A)to safely handle eligible fuel; and (B)to perform operation and maintenance on equipment that uses an eligible fuel. (c)

Goals

The goals of the program shall be— (1)to demonstrate hydrogen, ammonia, or fuel cell 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— (A)installing, constructing, and using hydrogen- or ammonia-fueled equipment; and (B)supporting infrastructure at ports; and (5)to reduce greenhouse gas emissions and improve air quality in areas located 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)a Tribal government or a consortium of Tribal governments; (G)a port authority for a port; (H)an Alaska Native or Native Hawaiian entity that has jurisdiction over a port authority or a port; (I)a multistate or multijurisdictional group of entities described in any of subparagraphs (A) through (H); or (J)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 (I) 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 paragraph (1) 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 (J) of subsection (d)(1) shall be submitted jointly with an entity described in subparagraphs (A) through (I) of that subsection. (f)

Considerations

In providing grants under the program, the Secretary, to the maximum extent practicable, shall select projects that— (1)will generate the greatest benefit to low-income or disadvantaged communities; (2)represent a combination of land-side and vessel-side end-uses of eligible fuel; (3)maximize the creation or retention of jobs in the United States; and (4)provide the highest job quality. (g)

Priority

In selecting eligible entities to receive grants 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 for all eligible fuel used by the eligible entity; and (2)a hydrogen leak detection and repair (also known as LDAR) program for all eligible fuel used by the eligible entity. (i)

Funding

(1)

Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out the program $100,000,000 for each of fiscal years 2024 through 2028. (2)

Human-operated equipment requirement

In carrying out the program, the Secretary shall ensure that funding is made available for each fiscal year for cargo-handling equipment that uses an eligible fuel and is human-operated.

Study on feasibility and safety of using hydrogen and ammonia as fuels in maritime applications

(a)

In general

Not later than 270 days after the date of enactment of this Act, the Secretary of the department in which the Coast Guard is operating, in consultation with the Secretary of Energy, the Secretary of Transportation, and the heads of other Federal departments and agencies, as appropriate, shall conduct, and submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives 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 the department in which the Coast Guard is operating shall— (1)consult with entities in the private sector with experience in the hydrogen or ammonia industry; (2)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 (3)evaluate the applicability of the lessons described in paragraph (2) to the use of hydrogen in maritime and associated logistics applications.