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 spe-
cialty 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 sup-
porting energy transition initiatives, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Shipbuilding Innova-
tion Act’’. 
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SEC. 2. MARKET OPPORTUNITY STUDY. 
(a) IN GENERAL.—The Secretary of Transportation, 
in consultation with the Secretary of Energy, the Sec-
retary 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 con-
struction 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 INFRA-
STRUCTURE GRANT PROGRAM. 
(a) IN GENERAL.—Chapter 541 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 54102. Vessel concept development and infrastruc-
ture 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— 
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‘‘(A) efficiency, competitive operations, and 
quality ship construction, repair, and reconfig-
uration; 
‘‘(B) new vessel concept development and 
the infrastructure necessary to build commer-
cially viable specialty vessels for supporting en-
ergy transition initiatives; and 
‘‘(C) new vessel concept development and 
the infrastructure necessary to build commer-
cially viable vessels made with innovative and 
energy efficient parts, including power and pro-
pulsion systems. 
‘‘(2) TIMING OF GRANT NOTICE.—The Adminis-
trator 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 ap-
propriations 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 
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by the grantee shall remain available to the Admin-
istrator 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 improve-
ments in shipyards to build commercially viable 
specialty vessels for supporting energy transi-
tion initiatives and commercially viable vessels 
made with innovative and energy efficient parts, 
including power and propulsion systems; and 
‘‘(B) build vessels described in subpara-
graph (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 ac-
quire land. 
‘‘(2) BUY AMERICA.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), manufactured articles, materials, or 
supplies procured in connection with this pro-
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gram 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 arti-
cles, 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 sup-
plies. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (A), the requirements of 
such subparagraph shall not apply with re-
spect to a particular article material or 
supply— 
‘‘(I) if the Administrator deter-
mines 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; 
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‘‘(II) to articles manufactured in 
countries that have executed a recip-
rocal defense procurement memo-
randum 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 sec-
tion 4801 of title 10). 
‘‘(ii) FEDERAL REGISTER.—The Ad-
ministrator 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 ex-
ceed 80 percent of the total cost of such project. 
‘‘(2) AUTHORIZATION
FOR
VESSEL
CONCEPT 
DEVELOPMENT.—There is authorized to be appro-
priated to make grants under subsection (a) 
$100,000,000 for each of fiscal years 2025 through 
2029. 
‘‘(f) APPLICATIONS.— 
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‘‘(1) IN GENERAL.—To be eligible for assist-
ance 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 descrip-
tion of— 
‘‘(A) the need for the project; 
‘‘(B) the methodology for implementing the 
project; and 
‘‘(C) any existing programs or arrange-
ments that can be used to supplement or lever-
age assistance under this section. 
‘‘(3) PROCEDURAL SAFEGUARDS.—The Admin-
istrator, in consultation with the inspector general of 
the Department of Transportation, shall issue guide-
lines 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; 
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‘‘(B) grantees have properly accounted for 
all expenditures of grant funds; and 
‘‘(C) grant funds not used for such pur-
poses and amounts not obligated or expended 
are returned. 
‘‘(4) PROJECT APPROVAL REQUIRED.—The Ad-
ministrator may not award a grant under this sec-
tion 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 chap-
ter 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 
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Navy, and the Secretary of the Department of which the 
Coast Guard is operating, shall submit to Congress a re-
port on the status and outlook for United States-flagged 
vessels capable of supporting energy transition initiatives. 
Æ 
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