Summary

Creates a new federal program that forces large oceangoing vessels to cut the lifecycle carbon intensity of the fuel they use on covered voyages in escalating steps through 2050, with annual reporting and public disclosure. It also directs EPA to set standards to eliminate (or achieve the maximum feasible reduction of) greenhouse gas and air pollutant emissions from ships while tied to a U.S. port (at berth or at anchorage) by 2035, or earlier if feasible.

Key Points

• Establishes lifecycle carbon-intensity fuel limits for large vessels, phased to 100% reduction by 2050 relative to a 2027 baseline.
• EPA must finalize the first multi-year standard (2030–2034) by Jan 1, 2029 and finalize future standards at least two years before they take effect.
• Owners/operators must report per-voyage fuel carbon intensity, fuel amounts, and total GHG emissions annually; EPA publishes a public annual report.
• Allows averaging across commonly owned vessels and crediting of overcompliance toward future standards; exempts voyages ≤30 days/year.
• Requires EPA to set standards to eliminate (or achieve the maximum feasible reduction of) emissions from vessels at berth/anchorage by Jan 1, 2035.
• EPA may adopt IMO-equivalent standards and must consider technological and economic feasibility and potential adverse health/environmental impacts.
• Treats the new fuel standards and reporting as emission standards under the Clean Air Act’s enforcement provisions.
• No direct appropriation or funding mechanism included; compliance costs and infrastructure changes are left to regulated parties and markets.

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