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Introduced on July 10, 2025 by Doris Matsui
This bill would charge fees on cargo ships for the pollution they create, starting January 1, 2027. The EPA would collect a fee based on climate pollution from the fuel used on each voyage: $150 per metric ton of lifecycle CO2‑equivalent, with yearly increases for inflation plus 5%, and a higher rate (triple) for travel near the Arctic or Antarctic. It also adds separate fees for nitrogen oxides ($6.30/lb), sulfur dioxide ($18/lb), and fine particle pollution ($38.90/lb) from fuel burned in U.S. waters. Ships must report trip and fuel details every quarter; late payments face a 20% penalty that grows every 30 days. Importers whose goods were offloaded at a foreign port and are headed to the U.S. must also report and pay a prorated fee before their goods can enter. If a similar fee was paid to another country, the U.S. fee is reduced, and the carbon fee ends if a global U.N. program takes effect.
Money from these fees would fund cleaner ships and ports starting in 2029. The bill sets aside funds to replace or retrofit U.S. Jones Act ships to use batteries or low‑carbon fuels; electrify harbor craft and ferries; train workers; add air monitors at port boundaries and in nearby neighborhoods; support research and development for low‑carbon maritime fuels and clean shipping technology; and bolster clean ports, coastal security, and the Marine Debris Foundation.