Sponsors (2)
Introduced July 10, 2025 by Doris Matsui · Last progress July 10, 2025
The bill creates a data‑driven, fee‑based system that strongly incentivizes shipping decarbonization and funds related programs—delivering public health and environmental gains for port communities—at the cost of higher shipping prices, new compliance burdens, potential supply‑chain disruptions, and uncertain local benefit if revenues are not properly directed.
Residents of port and nearby coastal communities will face lower air pollution and related health risks as fees and incentives drive vessels to cleaner fuels and technologies.
Shippers, consumers, and the environment benefit from stronger incentives to cut greenhouse gas emissions because voyages will be charged based on lifecycle CO2-equivalent emissions, encouraging cleaner fuels and lower lifecycle emissions.
The federal government will generate new fee revenue tied to maritime emissions, which could fund mitigation, monitoring, community health programs, or climate enforcement if appropriated for those purposes.
Most American consumers and small businesses are likely to face higher prices for imported goods because shipping operators and importers will pass on increased fees and compliance costs.
Small and medium shipping operators, importers, and some transportation workers risk severe cash‑flow strain and punitive financial exposure because of strict payment rules and steep late penalties (e.g., 20% plus 20% per 30 days).
The bill imposes substantial new administrative and compliance burdens—frequent, detailed quarterly reporting, lifecycle accounting, and grant certifications—that raise costs for operators and increase regulator workload.
Based on analysis of 7 sections of legislative text.
Creates lifecycle CO₂e and pollutant fees on large cargo voyages, requires voyage reporting, and dedicates 25% of fee revenue to decarbonize U.S. (Jones Act) vessels.
Imposes new reporting and fee requirements on large cargo voyages to charge lifecycle greenhouse‑gas and combustion‑pollutant fees based on fuel use, with enhanced charges for polar voyages and late payments. Requires voyage‑level data reporting to the EPA Administrator beginning January 1, 2027, and establishes per‑pound fees for NOx, SO2, and PM plus a lifecycle CO₂‑equivalent fee (using EPA fuel profiles and a $150 per‑CO₂e unit baseline, indexed annually). The bill recognizes comparable foreign fees for crediting and allows an importer‑based payment path for qualifying voyages. It directs 25% of fee revenues (starting FY2029) to a Maritime Administration program that provides grants, rebates, or low‑interest loans to decarbonize U.S. Jones Act vessels that use marine fuel oil, with program priorities for greatest GHG reductions and public health benefits. The fee regime sunsets if an international body (e.g., IMO/UN) adopts and enforces an equivalent global fee.