I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Shipbuilding Innova5 tion Act’’. 


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1 SEC. 2. MARKET OPPORTUNITY STUDY. 

2 (a) IN GENERAL.—The Secretary of Transportation, 

3 in consultation with the Secretary of Energy, the Sec4 retary of the Navy, and the Secretary of the Department 

5 of which the Coast Guard is operating, shall complete a 

6 market opportunity study for United States based con7 struction and support of specialty vessels for supporting 

8 energy transition initiatives. 

9 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

10 authorized to carry out this section $250,000. 

11 SEC. 3. VESSEL CONCEPT DEVELOPMENT AND INFRA12 STRUCTURE GRANT PROGRAM. 

13 (a) IN GENERAL.—Chapter 541 of title 46, United 

14 States Code, is amended by adding at the end the fol15 lowing: 

16 ‘‘§ 54102. Vessel concept development and infrastruc17 ture grant program 

18 ‘‘(a) ESTABLISHMENT OF PROGRAM.—Subject to the 

19 availability of appropriations, the Administrator of the 

20 Maritime Administration shall execute agreements with 

21 shipyards funding new vessel concept development to be 

22 built in the United States. 

23 ‘‘(b) AWARDS.— 

24 ‘‘(1) IN GENERAL.—In providing assistance 

25 under the program, the Administrator shall consider 

26 projects that foster— 


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1 ‘‘(A) efficiency, competitive operations, and 

2 quality ship construction, repair, and reconfig3 uration; 

4 ‘‘(B) new vessel concept development and 

5 the infrastructure necessary to build commer6 cially viable specialty vessels for supporting en7 ergy transition initiatives; and 

8 ‘‘(C) new vessel concept development and 

9 the infrastructure necessary to build commer10 cially viable vessels made with innovative and 

11 energy efficient parts, including power and pro12 pulsion systems. 

13 ‘‘(2) TIMING OF GRANT NOTICE.—The Adminis14 trator shall post a Notice of Funding Opportunity 

15 regarding grants awarded under this section not 

16 more than 15 days after the date of enactment of 

17 the appropriations Act for the fiscal year concerned. 

18 ‘‘(3) TIMING OF GRANTS.—The Administrator 

19 shall award grants under this section not later than 

20 120 days after the date of the enactment of the ap21 propriations Act for the fiscal year concerned. 

22 ‘‘(4) REUSE OF UNEXPENDED GRANT FUNDS.— 

23 Notwithstanding paragraph (3), amounts awarded 

24 as a grant under this section that are not expended 


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1 by the grantee shall remain available to the Admin2 istrator for use for grants under this section. 

3 ‘‘(c) USE OF FUNDS.— 

4 ‘‘(1) IN GENERAL.—Assistance provided under 

5 this section may be used to— 

6 ‘‘(A) make capital and related improve7 ments in shipyards to build commercially viable 

8 specialty vessels for supporting energy transi9 tion initiatives and commercially viable vessels 

10 made with innovative and energy efficient parts, 

11 including power and propulsion systems; and 

12 ‘‘(B) build vessels described in subpara13 graph (A). 

14 ‘‘(2) ADMINISTRATIVE COSTS.—Not more than 

15 2 percent of amounts made available to carry out 

16 this section may be used for the necessary costs of 

17 grant administration. 

18 ‘‘(d) PROHIBITED USES.— 

19 ‘‘(1) IN GENERAL.—Funds awarded under this 

20 section may not be used to construct buildings or ac21 quire land. 

22 ‘‘(2) BUY AMERICA.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B), manufactured articles, materials, or 

25 supplies procured in connection with this proVerDate Sep 11 2014 18:18 Jan 24, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H10479.IH H10479

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1 gram are manufactured substantially all from 

2 articles, materials, or supplies mined, produced, 

3 or manufactured in the United States if the 

4 cost of such component articles, materials, or 

5 supplies— 

6 ‘‘(i) supplied not later than the date 

7 of the enactment of this Act, exceeds 70 

8 percent of cost of the manufactured arti9 cles, materials, or supplies procured; and 

10 ‘‘(ii) supplied on or after January 1, 

11 2029, exceeds 80 percent of the cost of the 

12 manufactured articles, materials, or sup13 plies. 

14 ‘‘(B) EXCEPTIONS.— 

15 ‘‘(i) IN GENERAL.—Notwithstanding 

16 subparagraph (A), the requirements of 

17 such subparagraph shall not apply with re18 spect to a particular article material or 

19 supply— 

20 ‘‘(I) if the Administrator deter21 mines that such product or material is 

22 not available in the United States in 

23 sufficient and reasonably available 

24 quantities, of a satisfactory quality, or 

25 on a timely basis; 


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1 ‘‘(II) to articles manufactured in 

2 countries that have executed a recip3 rocal defense procurement memo4 randum of understanding with the 

5 United States entered into pursuant 

6 to section 4851 of title 10; or 

7 ‘‘(III) from a country that is a 

8 member of the national technology 

9 and industrial base (as defined by sec10 tion 4801 of title 10). 

11 ‘‘(ii) FEDERAL REGISTER.—The Ad12 ministrator shall publish in the Federal 

13 Register any determination made under 

14 this subparagraph. 

15 ‘‘(e) MATCHING REQUIREMENTS.— 

16 ‘‘(1) FEDERAL SHARE.—The Federal share of 

17 any eligible project under this section shall not ex18 ceed 80 percent of the total cost of such project. 

19 ‘‘(2) AUTHORIZATION FOR VESSEL CONCEPT

20 DEVELOPMENT.—There is authorized to be appro21 priated to make grants under subsection (a) 

22 $100,000,000 for each of fiscal years 2025 through 

23 2029. 

24 ‘‘(f) APPLICATIONS.— 


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1 ‘‘(1) IN GENERAL.—To be eligible for assist2 ance under this section, not later than 60 days after 

3 the date of enactment of an appropriations Act for 

4 any fiscal year funding grants under this section, an 

5 applicant shall submit an application in such form 

6 and containing such information and assurances as 

7 the Administrator may require. 

8 ‘‘(2) MINIMUM STANDARDS FOR PAYMENT OR

9 REIMBURSEMENT.—Applications submitted under 

10 paragraph (1) shall include a comprehensive descrip11 tion of— 

12 ‘‘(A) the need for the project; 

13 ‘‘(B) the methodology for implementing the 

14 project; and 

15 ‘‘(C) any existing programs or arrange16 ments that can be used to supplement or lever17 age assistance under this section. 

18 ‘‘(3) PROCEDURAL SAFEGUARDS.—The Admin19 istrator, in consultation with the inspector general of 

20 the Department of Transportation, shall issue guide21 lines to establish appropriate accounting, reporting, 

22 and review procedures to ensure that— 

23 ‘‘(A) grant funds are used for the purposes 

24 for which they were made available; 


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1 ‘‘(B) grantees have properly accounted for 

2 all expenditures of grant funds; and 

3 ‘‘(C) grant funds not used for such pur4 poses and amounts not obligated or expended 

5 are returned. 

6 ‘‘(4) PROJECT APPROVAL REQUIRED.—The Ad7 ministrator may not award a grant under this sec8 tion unless the Administrator determines that— 

9 ‘‘(A) sufficient funding is available to meet 

10 the matching requirements of subsection (e); 

11 ‘‘(B) the project will be completed without 

12 unreasonable delay; and 

13 ‘‘(C) the recipient has authority to carry 

14 out the proposed project. 

15 ‘‘(g) AUDITS AND EXAMINATIONS.—Recipients of 

16 grants under this section shall maintain such records as 

17 the Administrator may require and make such records 

18 available for review and audit by the Administrator.’’. 

19 (b) CLERICAL AMENDMENT.—The analysis for chap20 ter 541 of title 46, United States Code, is amended by 

21 adding at the end the following: 

‘‘54102. Vessel concept development and infrastructure grant program.’’. 

22 SEC. 4. REPORT TO CONGRESS. 

23 Not later than 1 year after the date of enactment 

24 of this Act, and annually thereafter, the Secretary of 

25 Transportation, in consultation with the Secretary of the 


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1 Navy, and the Secretary of the Department of which the 

2 Coast Guard is operating, shall submit to Congress a re3 port on the status and outlook for United States-flagged 

4 vessels capable of supporting energy transition initiatives. 

Æ 


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