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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10479 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10479

   To amend title 46, United States Code, with respect to grants for 
  vessel concept development and infrastructure to build commercially 
viable specialty vessels for supporting energy transition initiatives, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 18, 2024

 Mr. Deluzio introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL

 
   To amend title 46, United States Code, with respect to grants for 
  vessel concept development and infrastructure to build commercially 
viable specialty vessels for supporting energy transition initiatives, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Shipbuilding Innovation Act''.

SEC. 2. MARKET OPPORTUNITY STUDY.

    (a) In General.--The Secretary of Transportation, in consultation 
with the Secretary of Energy, the Secretary of the Navy, and the 
Secretary of the Department of which the Coast Guard is operating, 
shall complete a market opportunity study for United States based 
construction and support of specialty vessels for supporting energy 
transition initiatives.
    (b) Authorization of Appropriations.--There is authorized to carry 
out this section $250,000.

SEC. 3. VESSEL CONCEPT DEVELOPMENT AND INFRASTRUCTURE GRANT PROGRAM.

    (a) In General.--Chapter 541 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 54102. Vessel concept development and infrastructure grant 
              program
    ``(a) Establishment of Program.--Subject to the availability of 
appropriations, the Administrator of the Maritime Administration shall 
execute agreements with shipyards funding new vessel concept 
development to be built in the United States.
    ``(b) Awards.--
            ``(1) In general.--In providing assistance under the 
        program, the Administrator shall consider projects that 
        foster--
                    ``(A) efficiency, competitive operations, and 
                quality ship construction, repair, and reconfiguration;
                    ``(B) new vessel concept development and the 
                infrastructure necessary to build commercially viable 
                specialty vessels for supporting energy transition 
                initiatives; and
                    ``(C) new vessel concept development and the 
                infrastructure necessary to build commercially viable 
                vessels made with innovative and energy efficient 
                parts, including power and propulsion systems.
            ``(2) Timing of grant notice.--The Administrator shall post 
        a Notice of Funding Opportunity regarding grants awarded under 
        this section not more than 15 days after the date of enactment 
        of the appropriations Act for the fiscal year concerned.
            ``(3) Timing of grants.--The Administrator shall award 
        grants under this section not later than 120 days after the 
        date of the enactment of the appropriations Act for the fiscal 
        year concerned.
            ``(4) Reuse of unexpended grant funds.--Notwithstanding 
        paragraph (3), amounts awarded as a grant under this section 
        that are not expended by the grantee shall remain available to 
        the Administrator for use for grants under this section.
    ``(c) Use of Funds.--
            ``(1) In general.--Assistance provided under this section 
        may be used to--
                    ``(A) make capital and related improvements in 
                shipyards to build commercially viable specialty 
                vessels for supporting energy transition initiatives 
                and commercially viable vessels made with innovative 
                and energy efficient parts, including power and 
                propulsion systems; and
                    ``(B) build vessels described in subparagraph (A).
            ``(2) Administrative costs.--Not more than 2 percent of 
        amounts made available to carry out this section may be used 
        for the necessary costs of grant administration.
    ``(d) Prohibited Uses.--
            ``(1) In general.--Funds awarded under this section may not 
        be used to construct buildings or acquire land.
            ``(2) Buy america.--
                    ``(A) In general.--Subject to subparagraph (B), 
                manufactured articles, materials, or supplies procured 
                in connection with this program are manufactured 
                substantially all from articles, materials, or supplies 
                mined, produced, or manufactured in the United States 
                if the cost of such component articles, materials, or 
                supplies--
                            ``(i) supplied not later than the date of 
                        the enactment of this Act, exceeds 70 percent 
                        of cost of the manufactured articles, 
                        materials, or supplies procured; and
                            ``(ii) supplied on or after January 1, 
                        2029, exceeds 80 percent of the cost of the 
                        manufactured articles, materials, or supplies.
                    ``(B) Exceptions.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), the requirements of such 
                        subparagraph shall not apply with respect to a 
                        particular article material or supply--
                                    ``(I) if the Administrator 
                                determines that such product or 
                                material is not available in the United 
                                States in sufficient and reasonably 
                                available quantities, of a satisfactory 
                                quality, or on a timely basis;
                                    ``(II) to articles manufactured in 
                                countries that have executed a 
                                reciprocal defense procurement 
                                memorandum of understanding with the 
                                United States entered into pursuant to 
                                section 4851 of title 10; or
                                    ``(III) from a country that is a 
                                member of the national technology and 
                                industrial base (as defined by section 
                                4801 of title 10).
                            ``(ii) Federal register.--The Administrator 
                        shall publish in the Federal Register any 
                        determination made under this subparagraph.
    ``(e) Matching Requirements.--
            ``(1) Federal share.--The Federal share of any eligible 
        project under this section shall not exceed 80 percent of the 
        total cost of such project.
            ``(2) Authorization for vessel concept development.--There 
        is authorized to be appropriated to make grants under 
        subsection (a) $100,000,000 for each of fiscal years 2025 
        through 2029.
    ``(f) Applications.--
            ``(1) In general.--To be eligible for assistance under this 
        section, not later than 60 days after the date of enactment of 
        an appropriations Act for any fiscal year funding grants under 
        this section, an applicant shall submit an application in such 
        form and containing such information and assurances as the 
        Administrator may require.
            ``(2) Minimum standards for payment or reimbursement.--
        Applications submitted under paragraph (1) shall include a 
        comprehensive description of--
                    ``(A) the need for the project;
                    ``(B) the methodology for implementing the project; 
                and
                    ``(C) any existing programs or arrangements that 
                can be used to supplement or leverage assistance under 
                this section.
            ``(3) Procedural safeguards.--The Administrator, in 
        consultation with the inspector general of the Department of 
        Transportation, shall issue guidelines to establish appropriate 
        accounting, reporting, and review procedures to ensure that--
                    ``(A) grant funds are used for the purposes for 
                which they were made available;
                    ``(B) grantees have properly accounted for all 
                expenditures of grant funds; and
                    ``(C) grant funds not used for such purposes and 
                amounts not obligated or expended are returned.
            ``(4) Project approval required.--The Administrator may not 
        award a grant under this section unless the Administrator 
        determines that--
                    ``(A) sufficient funding is available to meet the 
                matching requirements of subsection (e);
                    ``(B) the project will be completed without 
                unreasonable delay; and
                    ``(C) the recipient has authority to carry out the 
                proposed project.
    ``(g) Audits and Examinations.--Recipients of grants under this 
section shall maintain such records as the Administrator may require 
and make such records available for review and audit by the 
Administrator.''.
    (b) Clerical Amendment.--The analysis for chapter 541 of title 46, 
United States Code, is amended by adding at the end the following:

``54102. Vessel concept development and infrastructure grant 
                            program.''.

SEC. 4. REPORT TO CONGRESS.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Secretary of Transportation, in consultation 
with the Secretary of the Navy, and the Secretary of the Department of 
which the Coast Guard is operating, shall submit to Congress a report 
on the status and outlook for United States-flagged vessels capable of 
supporting energy transition initiatives.
                                 <all>
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