I 118th CONGRESS 2d Session H. R. 10479 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. Short title This Act may be cited as the Shipbuilding Innovation Act . 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. 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: 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. . 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.