Climate Smart Ports Act of 2021
Bill: S.216 | Sponsor: Sen. Merkley, Jeff (D-OR)
Policy area: Environmental Protection

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.

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.

    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 ``Climate Smart Ports Act of 2021''.

SEC. 2. CLIMATE SMART PORTS GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Active duty.--The term ``active duty'' has the meaning 
        given the term in section 101(d) of title 10, United States 
        Code.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (3) Alternative emissions control technology.--The term 
        ``alternative emissions control technology'' means a 
        technology, technique, or measure that--
                    (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<INF>2.5</INF>); and
                            (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'' 
        means--
                    (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'' means an energy resource that--
                            (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'' includes--
                            (i) clean electric generation;
                            (ii) customer electric efficiency measures;
                            (iii) electric demand flexibility; and
                            (iv) energy storage.
            (6) Eligible entity.--The term ``eligible entity'' means--
                    (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'' means a system, piece of equipment, facility, or 
        technology that--
                    (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'' means cargo 
        handling equipment that--
                    (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'' means 
        a metropolitan statistical area within the United States with 
        an estimated population of 1,500,000 or more.
            (10) Nonattainment area.--The term ``nonattainment area'' 
        has the meaning given the term in section 171 of the Clean Air 
        Act (42 U.S.C. 7501).
            (11) Port.--The term ``port'' includes a maritime port and 
        an inland port.
            (12) Port authority.--The term ``port authority'' means a 
        governmental or quasi-governmental authority formed by a 
        legislative body to operate a port.
            (13) Project labor agreement.--The term ``project labor 
        agreement'' means a pre-hire collective bargaining agreement 
        with 1 or more labor organization that--
                    (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'' means a person who is participating in a 
        registered apprenticeship program.
            (15) Registered apprenticeship program.--The term 
        ``registered apprenticeship program'' means a program 
        registered under the Act of August 16, 1937 (commonly known as 
        the ``National Apprenticeship Act''; 50 Stat. 664, chapter 663; 
        29 U.S.C. 50 et seq.).
            (16) Shore power.--The term ``shore power'' means the 
        provision of shoreside electrical power to a ship at berth that 
        has shut down main and auxiliary engines.
            (17) State apprenticeship agency.--The term ``State 
        Apprenticeship Agency'' has the meaning given the term in 
        section 29.2 of title 29, Code of Federal Regulations (as in 
        effect on January 1, 2020).
            (18) Zero emissions port equipment and technology.--
                    (A) In general.--The term ``zero emissions port 
                equipment and technology'' means equipment and 
                technology that--
                            (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'' includes--
                            (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 of title 40, United States 
        Code.
            (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.--Not later than 90 days after funds are 
        made available to carry out this section, the Administrator 
        shall develop and carry out an educational outreach program to 
        promote and explain the grant program established under 
        subsection (b) to prospective grant recipients.
            (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.

SEC. 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) is 
amended by adding at the end the following:
    ``(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.''.
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