Climate Smart Ports Act of 2021

To direct the Administrator of the Environmental Protection Agency to establish a grant program to award grants to eligible entities to purchase and install, as applicable, zero emissions port equipment and technology, and for other purposes. 1. Short title This Act may be cited as the Climate Smart Ports Act of 2021 2. Climate smart ports grant program (a) Definitions In this section: (1) Active duty The term active duty (2) Administrator The term Administrator (3) Alternative emissions control technology The term alternative emissions control technology (A) captures the emissions of nitrogen oxide, particulate matter, reactive organic compounds, and greenhouse gases from the auxiliary engine and auxiliary boiler of an ocean-going vessel at berth; (B) is verified or approved by a State or Federal air quality regulatory agency; (C) the use of which achieves at least the equivalent reduction of emissions as the use of shore power for an ocean-going vessel at berth; (D) the use of which results in reducing emissions of the auxiliary engine of an ocean-going vessel at berth to a rate of less than— (i) 2.8 grams per kilowatt-hour for nitrogen oxide; (ii) 0.03 grams per kilowatt-hour for fine particulate matter (PM 2.5 (iii) 0.1 grams per kilowatt-hour for reactive organic compounds; and (E) reduces the emissions of the auxiliary engine and boiler of an ocean-going vessel at berth by at least 80 percent of the default emissions rate, which is, as of the date of enactment of this Act, 13.8 grams per kilowatt-hour. (4) Criteria pollutant The term criteria pollutant (A) ground-level ozone; (B) particulate matter; (C) carbon monoxide; (D) lead; (E) sulfur dioxide; and (F) nitrogen dioxide. (5) Distributed energy resource (A) In general The term distributed energy resource (i) is located on or near a customer site; (ii) is operated on the customer side of the electric meter; and (iii) is interconnected with the electric grid. (B) Inclusions The term distributed energy resource (i) clean electric generation; (ii) customer electric efficiency measures; (iii) electric demand flexibility; and (iv) energy storage. (6) Eligible entity The term eligible entity (A) a port authority; (B) a State, regional, local, or Tribal agency that has jurisdiction over a port authority or a port; (C) an air pollution control district or air quality management district; and (D) a private or nonprofit entity, applying for a grant awarded under this section in collaboration with another entity described in subparagraphs (A) through (C), that owns or uses cargo or transportation equipment at a port. (7) Energy storage system The term energy storage system (A) is capable of absorbing energy, storing energy for a period of time, and dispatching that stored energy; and (B) uses a mechanical, electrical, chemical, electrochemical, or thermal process to store energy that— (i) was generated at an earlier time for use at a later time; or (ii) was generated from a mechanical process, and would otherwise be wasted, for delivery at a later time. (8) Fully automated cargo handling equipment The term fully automated cargo handling equipment (A) is remotely operated or remotely monitored; and (B) with respect to the use of that equipment, does not require the exercise of human intervention or control. (9) Major urban area The term major urban area (10) Nonattainment area The term nonattainment area 42 U.S.C. 7501 (11) Port The term port (12) Port authority The term port authority (13) Project labor agreement The term project labor agreement (A) establishes the terms and conditions of employment for a specific construction project; and (B) is described in section 8(f) of the National Labor Relations Act ( 29 U.S.C. 158(f) (14) Registered apprentice The term registered apprentice (15) Registered apprenticeship program The term registered apprenticeship program 29 U.S.C. 50 (16) Shore power The term shore power (17) State Apprenticeship Agency The term State Apprenticeship Agency (18) Zero emissions port equipment and technology (A) In general The term zero emissions port equipment and technology (i) is used at a port; and (ii) (I) produces zero exhaust emissions of— (aa) any criteria pollutant and precursor of a criteria pollutant; and (bb) any greenhouse gas, other than water vapor; or (II) captures 100 percent of the exhaust emissions produced by an ocean-going vessel at berth. (B) Inclusions The term zero emissions port equipment and technology (i) any equipment that handles cargo; (ii) a drayage truck that transports cargo; (iii) a train that transports cargo; (iv) port harbor craft; (v) a distributed energy resource; (vi) an energy storage system; (vii) electrical charging infrastructure; (viii) shore power or an alternative emissions control technology; and (ix) an electric transport refrigeration unit. (b) Establishment Subject to the availability of appropriations, not later than 180 days after the date of enactment of this section, the Administrator shall establish a grant program to award grants to eligible entities to purchase and install, as applicable, zero emissions port equipment and technology. (c) Application (1) In general To be eligible to receive a grant under this section, an eligible entity shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require. (2) Priority The Administrator shall prioritize awarding grants under this section to eligible entities based on— (A) the degree to which the proposed use of the grant will— (i) reduce greenhouse gas emissions; (ii) reduce emissions of any criteria pollutant and precursor of a criteria pollutant; (iii) reduce hazardous air pollutant emissions; and (iv) reduce public health disparities in communities that receive a disproportionate quantity of air pollution from a port; (B) the amount of matching, non-Federal funds expected to be used by an applicant to purchase and install, as applicable, zero emissions port equipment and technology; (C) whether the applicant will use the grant to purchase and install, as applicable, zero emissions port equipment and technology that is produced in the United States; (D) whether the applicant will meet the utilization requirements for registered apprentices established by the Secretary of Labor or a State Apprenticeship Agency, as applicable; and (E) whether the applicant will recruit and retain skilled workers through a State-approved joint labor-management apprenticeship program, as applicable. (d) Use of funds (1) In general A grant awarded under this section shall be used to purchase and install, as applicable, zero emissions port equipment and technology. (2) Prohibited use (A) In general An eligible entity may not use a grant awarded under this section to purchase or install fully automated cargo handling equipment or terminal infrastructure that is designed for fully automated cargo handling equipment. (B) Human-operated zero emissions port equipment and technology Nothing in subparagraph (A) prohibits an eligible entity from using a grant awarded under this section to purchase human-operated zero emissions port equipment and technology or infrastructure that supports the human-operated zero emissions port equipment and technology. (3) Cost-sharing (A) In general Except as provided in subparagraph (B), an eligible entity may not use a grant awarded under this section to cover more than 70 percent of the cost of purchasing and installing, as applicable, zero emissions port equipment and technology. (B) Certain grants With respect to a grant of $3,000,000 or more, an eligible entity may use the grant to cover not more than 85 percent of the cost of purchasing and installing zero emissions port equipment and technology if that eligible entity certifies to the Administrator that— (i) the grant will be used, at least in part, to employ laborers or mechanics to install zero emissions port equipment and technology; and (ii) the eligible entity is a party to a project labor agreement or requires that each subgrantee of the eligible entity, and any subgrantee of that subgrantee at any tier, that performs the installation participate in a project labor agreement. (4) Project labor An eligible entity that uses a grant awarded under this section to install zero emissions port equipment and technology shall ensure, to the greatest extent practicable, that any subgrantee of the eligible entity, and any subgrantee of that subgrantee, at any tier, that carries out the installation employs at least 40 percent of the laborers or mechanics for the installation from among individuals who— (A) are domiciled— (i) if the applicable installation area is a major urban area, not further than 15 miles from the installation area; and (ii) if the applicable installation area is not a major urban area, not further than 50 miles from the installation area; (B) are displaced and unemployed energy workers; (C) are members of the Armed Forces serving on active duty, separated from active duty, or retired from active duty; (D) have been incarcerated or served time in a juvenile or adult detention or correctional facility, or been placed on probation, community supervision, or in a diversion scheme; (E) have a disability; (F) are homeless; (G) are receiving public assistance; (H) lack a general education diploma or high school diploma; (I) are emancipated from the foster care system; or (J) are registered apprentices with fewer than 15 percent of the required graduating apprentice hours in a program. (e) Wages (1) In general All laborers and mechanics employed by a subgrantee of an eligible entity, and any subgrantee of a subgrantee at any tier, to perform construction, alteration, installation, or repair work that is assisted, in whole or in part, by a grant awarded under this section, shall be paid wages at rates not less than those prevailing on similar construction, alteration, installation, or repair work in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 (2) Labor standards With respect to the labor standards in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. (f) Outreach (1) In general (2) Program components In carrying out the outreach program developed under paragraph (1), the Administrator shall— (A) inform prospective grant recipients how to apply for a grant awarded under this section; (B) describe to prospective grant recipients the benefits of available zero emissions port equipment and technology; (C) explain to prospective grant recipients the benefits of participating in the grant program established under this section; and (D) facilitate the sharing of best practices and lessons learned between grant recipients and prospective grant recipients with respect to how to apply for and use grants awarded under this section. (g) Reports (1) Report to Administrator Not later than 90 days after the date on which an eligible entity is awarded a grant under this section, that eligible entity shall submit to the Administrator a report containing such information as the Administrator shall require. (2) Annual report to Congress Not later than January 31, 2022, and annually thereafter for each calendar year subsequent to a calendar year during which a grant was awarded under this section, the Administrator shall submit to Congress, and make available on the website of the Environmental Protection Agency, a report that includes, with respect to each grant awarded under this section during the preceding calendar year— (A) the name and location of the eligible entity that was awarded a grant; (B) the amount of the grant that the eligible entity was awarded; (C) the name and location of the port where the zero emissions port equipment and technology that was purchased and installed, as applicable, with the grant was used; (D) an estimate of the impact of the zero emissions port equipment and technology on reducing— (i) greenhouse gas emissions; (ii) emissions of criteria pollutants and precursors of criteria pollutants; (iii) hazardous air pollutant emissions; and (iv) public health disparities; and (E) any other information the Administrator determines is necessary to understand the impact of grants awarded under this section. (h) Authorization of appropriations (1) In general There is authorized to be appropriated to the Administrator to carry out this section $1,000,000,000 for each of fiscal years 2022 through 2031. (2) Nonattainment areas To the maximum extent practicable, 25 percent of amounts made available to carry out this section in each fiscal year shall be used to award grants to eligible entities to provide zero emissions port equipment and technology to ports that are in nonattainment areas. 3. Energy Policy Act of 2005 authorization of appropriations for port authorities Section 797 of the Energy Policy Act of 2005 ( 42 U.S.C. 16137 (c) Port authorities In addition to amounts made available under subsection (a), there is authorized to be appropriated $50,000,000 for each of fiscal years 2022 through 2026 to award grants, rebates, or loans under section 792 to eligible entities to carry out projects that reduce emissions at ports. .

Summary: Climate Smart Ports Act of 2021 This bill requires the Environmental Protection Agency to establish a grant program for purchasing or installing equipment and technology to reduce pollution at ports. Specifically, the grants must be used for equipment or technology that produces zero exhaust emissions of certain pollutants and greenhouse gases or captures 100% of the exhaust emissions produced by an ocean-going vessel at berth.