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Creates a new EPA standard that limits the carbon intensity of fuels used by large commercial ships on covered voyages and requires monitoring, reporting, and enforcement of those limits. It also directs EPA to adopt rules to eliminate (or, if infeasible, maximize reduction of) specified air-polluting emissions from vessels while at berth or at anchor in U.S. waters, with deadlines for proposal and implementation and limited exemptions and compliance flexibilities.
Defines “carbon dioxide-equivalent” as the number of metric tons of CO2 emissions with the same global warming potential as 1 metric ton of another greenhouse gas, calculated using Equation A–1 in 40 C.F.R. §98.2(b) as in effect on the date of enactment.
Defines “carbon intensity” as lifecycle greenhouse gas emissions per unit of fuel energy, expressed in grams of CO2-equivalent per megajoule.
Defines “carbon intensity baseline” as the average carbon intensity of the fuel used by all vessels on covered voyages in calendar year 2027.
Defines “covered voyage” to mean a commercial passenger or cargo voyage either (A) between U.S. ports of call or (B) between a U.S. port of call and a foreign port of call.
Defines “greenhouse gas” to include carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
Who is affected and how:
Vessel operators and shipowners: Face direct obligations to meet carbon-intensity limits for fuels on covered voyages and to comply with at-berth/at-anchorage emission rules. This may require switching to lower-carbon fuels, adopting on-board emissions control technology, changing operational practices, or participating in averaging pools. They will also bear monitoring, reporting, and potential enforcement costs.
Maritime carriers, shippers, and charterers: May see increased transport costs as operators pass through costs for cleaner fuels, retrofits, or operational changes. Contracting and scheduling may change to meet compliance windows or to use compliant suppliers.
Port authorities and terminal operators: Will be affected by in-port emission elimination requirements through changes in vessel operations while at berth or anchor. Ports may need to coordinate shore power availability, berth scheduling, or other infrastructure to support compliance. Ports may also see public health benefits from reduced local air pollution.
Marine fuel suppliers and refiners (proposed): Will need to produce, certify, and supply lower-carbon marine fuels compliant with EPA’s carbon-intensity standard. This could shift demand across fuel types (e.g., lower-carbon blends, biofuels, alternative fuels) and require new testing/verification services.
Local communities and public health: Communities near ports and anchorages could experience reduced local air pollution (NOx, SOx, PM, and others) if the at-berth/at-anchor rules drive elimination or large reductions in emissions, improving air quality and public health outcomes.
Regulators and compliance service providers: EPA will need to develop technical standards, monitoring and reporting systems, and enforcement procedures. Private compliance auditors, fuel testing labs, and legal/regulatory advisors may see increased demand.
Net effects and risks:
Overall, the legislation shifts regulatory responsibility to EPA to set detailed standards and deadlines; compliance will mainly burden the maritime industry and fuel suppliers while delivering environmental and public health benefits if standards are met.
Adds a new subsection (e) to section 213 (42 U.S.C. 7547) establishing in‑port marine vessel zero emission standards, deadlines for promulgation and elimination of emissions, an exception if standards are not technologically or economically feasible, and factors the Administrator must consider in assessing feasibility.
Inserts a new Clean Air Act section 212A (Marine greenhouse gas fuel standard) immediately after existing section 212 (42 U.S.C. 7546), establishing definitions, multi-year carbon-intensity fuel standards for vessels on covered voyages, monitoring and reporting requirements, publication duties, exemptions, averaging/crediting provisions, and enforcement classification.
Read twice and referred to the Committee on Environment and Public Works. (Sponsor introductory remarks on measure: CR S4317)
Introduced July 10, 2025 by Alejandro Padilla · Last progress July 10, 2025
Expand sections to see detailed analysis
Read twice and referred to the Committee on Environment and Public Works. (Sponsor introductory remarks on measure: CR S4317)
Introduced in Senate