Next Generation Shipping Act
- Bill Number
- S. 4935
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Status
- Introduced
- Latest Action
- 2026-06-24: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Last Updated
- 2026-07-07T05:08:21Z
AI-Generated Summary
Next Generation Shipping Act (S. 4935)
Purpose
This legislation directs the Secretary of Transportation to create the Next Generation Shipping Innovation Program. The program aims to fund research, design, development, demonstration, and deployment of zero-emission vessels, along with retrofits or replacements of existing vessels using zero-emission technologies and related charging or fueling infrastructure. It also seeks to advance maritime decarbonization while incorporating workforce training, environmental justice, and labor standards.
Key Provisions
- Definitions (Section 2): Establishes clear terms for key concepts, including:
- Zero-emission: Vessels that produce no emissions of pollutants or greenhouse gases (except water vapor) during operation.
- Clean alternative fuel: Fuels resulting in at least 90% fewer greenhouse gas emissions than conventional marine fossil fuels on a life-cycle basis.
- Eligible entities: U.S.-based vessel owners/operators, manufacturers, port authorities, academic institutions, and certain nonprofit training organizations (excluding foreign governments).
- Eligible projects: Those supporting zero-emission vessels, clean alternative fuel vessels, energy efficiency technologies, shore power, and related infrastructure.
- Other terms cover automated systems, charging/fueling infrastructure, community benefits agreements, project labor agreements, and environmental co-benefits.
- Next Generation Shipping Innovation Program (Section 3):
- Authorizes the Secretary to provide grants, low-interest loans, and loan guarantees to eligible entities.
- Requires prioritization of projects that improve efficiency, reduce costs and underwater noise, emphasize environmental co-benefits, use project labor or community benefits agreements, advance environmental justice, and support workforce training (including through designated centers of excellence and Coast Guard-approved programs).
- Mandates public transparency by posting all funding applications (selected and not selected) on the Department of Transportation website annually.
- Requires coordination with other federal agencies, leveraging of existing resources, public-private partnerships, and input from environmental justice communities.
- Caps administrative costs at 10% of available funds.
- Requires payment of prevailing wages (Davis-Bacon standards) for construction work funded by the program.
- Authorizes $1,000,000,000 annually for fiscal years 2027 through 2036.
- Prohibits any use of funds for automated vessels, automated operating systems, or automated cargo handling systems.
- Next Generation Shipping Advisory Committee (Section 4):
- Establishes an advisory committee within 180 days of enactment, with at least 15 members representing federal agencies, labor, research/academia, environmental justice and environmental groups, maritime industry, zero-emission fuel industry, states, and ports.
- Tasks the committee with identifying technology gaps, recommending screening criteria, surveying adoption barriers, and setting objectives for zero-emission vessel development.
- Requires meetings at least twice per year and periodic reports to the Secretary (every 3 years after the initial 2-year report), which the Secretary must forward to relevant congressional committees.
Significant Changes to Existing Law
This bill creates new statutory authority rather than amending prior laws in detail. It introduces a dedicated federal funding program for zero-emission maritime technologies under the Department of Transportation. Notable additions include explicit prohibitions on funding automation, mandatory use of project labor agreements or community benefits agreements in prioritized projects, and new reporting and advisory structures. It references but does not alter existing provisions in title 46 of the U.S. Code related to vessel ownership and merchant mariner credentials.
Potential Impacts
- Government Agencies: Expands responsibilities for the Department of Transportation and Maritime Administration in administering grants, loans, and coordination efforts; requires interagency collaboration and public reporting.
- Citizens and Workforce: Supports job training and development in maritime sectors, enforces prevailing wage standards, and prioritizes projects benefiting communities affected by maritime activities; may lead to reduced vessel emissions and noise pollution.
- Industry and Infrastructure: Encourages development of new vessel technologies and port infrastructure, potentially accelerating the shift from fossil fuels while restricting automated systems.
- International Relations: Could enhance U.S. leadership in clean maritime technologies but may affect trade competitiveness if other nations adopt differing standards; no direct international provisions are included.
Main Stakeholders Affected
- Vessel owners, operators, and U.S.-based manufacturers.
- Port authorities, terminal operators, and state governments.
- Labor organizations and maritime workforce training providers.
- Academic institutions, National Laboratories, and research entities.
- Environmental justice and environmental organizations.
- Zero-emission fuel and component manufacturers.
- Federal agencies involved in transportation and maritime policy.
Notable Legal, Constitutional, or Political Implications
The bill operates within Congress's authority to regulate interstate and foreign commerce. It emphasizes labor protections and environmental justice without raising apparent constitutional concerns. Politically, the automation prohibition and requirements for community agreements may reflect efforts to balance technological advancement with workforce and local community interests. The advisory committee structure promotes stakeholder input in program implementation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-06-24: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 2026-06-24: Introduced in Senate
Bill Versions
- Next Generation Shipping Act — issued 2026-06-24 — PDF (15 pages)