Sponsors (2)
The bill creates reporting, fees, and targeted funding to reduce maritime pollution and support a domestic low‑carbon transition—improving public health and emissions outcomes—while imposing new costs, compliance burdens, uneven coverage, and financial risks that are likely to raise shipping costs for importers and consumers.
Residents of port and coastal communities (including urban, low-income, and racial-ethnic minority neighborhoods) will experience lower air pollution and related health risks as covered voyages and fuels face fees, reporting, and incentives to reduce emissions.
Operators, importers, and the broader maritime sector are given financial and market incentives (fees based on lifecycle CO2e and pollutant costs, grants/loans) that encourage uptake of lower‑carbon fuels and emissions-mitigation technologies, reducing lifecycle maritime greenhouse-gas emissions over time.
Shippers, port operators, and governments gain clearer reporting rules, standardized lifecycle CO‑e profiles, and EPA data transparency that improve regulatory clarity, enable targeted mitigation, and make fee calculations more predictable.
Importers, vessel operators, and ultimately consumers and taxpayers face higher costs as new fees, fuel‑based charges, and potential penalties raise operating and freight costs that can be passed to consumers and small businesses.
Steep, compounding late‑payment penalties (20% immediately plus additional 20% per 30 days) and strong enforcement risks quickly turning small delinquencies into crippling liabilities for importers and operators.
Vessel operators and shippers will face significant administrative and compliance burdens to track and report voyage classifications, detailed fuel use, cargo destinations, and fuel mass in U.S. waters on a quarterly basis.
Based on analysis of 7 sections of legislative text.
Creates lifecycle CO2e and pollutant fees on large cargo voyages calling U.S. ports, requires voyage/fuel reporting, and directs 25% of fees to fund Jones Act vessel decarbonization.
Introduced July 10, 2025 by Doris Matsui · Last progress July 10, 2025
Imposes new reporting and per‑voyage fees on large cargo vessels that call U.S. ports, charging for lifecycle greenhouse gas emissions and for nitrogen oxides, sulfur dioxide, and fine particulate matter emitted while in U.S. waters. Requires vessel operators (and in some cases importers) to submit detailed voyage and fuel data beginning 2027, directs EPA to develop lifecycle emissions profiles for fuels and pollutants, and directs a portion (25%) of fee revenue to a MARAD program (starting FY2029) that grants or loans funds to convert or retrofit Jones Act vessels to battery or low‑carbon/zero‑emission propulsion. Establishes fee levels and indexing rules, penalties for late payment, credits for comparable foreign pollution fees, and a sunset if the United Nations/IMO adopts and enforces an equivalent global fee. Also prioritizes awards to projects that maximize GHG and local air pollutant reductions and protect communities with poor air quality.