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Imposes new reporting and pollution fees on large cargo voyages to the United States and directs most revenue to grants, rebates, and loans to decarbonize U.S. domestic shipping and ports. Operators of large cargo vessels (and, in some cases, importers) must report voyage and fuel data starting January 1, 2027, pay lifecycle CO2-equivalent charges and air-pollutant fees based on fuel use in defined waters, and face steep penalties for late payment. The bill requires the EPA to develop lifecycle emission profiles for maritime fuels and to set per-fuel fees and pollutant‑factor fees; it triples charges for activity in polar regions, allows credit for comparable foreign fees, and sunsets the domestic fee program if an international body enforces an equal-or-greater global fee. Fee revenue is split by formula beginning FY2029 among federal programs (MARAD, DOE, EPA, NOAA, Commerce) to fund vessel and port electrification, low‑carbon fuel production, workforce training, community monitoring, and other decarbonization efforts, with clawbacks and administrative caps built in.
The bill trades significant, targeted public‑health and climate benefits—driven by data, fees, and grants that push maritime decarbonization—for higher shipping costs, increased compliance burdens, and financial/competitive risks for shippers, importers, and some ports.
Port-adjacent residents (urban communities) and nearby populations will likely face lower shipping pollution over time because fees and grants create strong incentives for cleaner fuels, port electrification, and vessel retrofits.
EPA, ports, and regulators will get much more accurate fuel-use, voyage, and lifecycle emissions data, improving enforcement consistency and enabling targeted emissions rules and fee calculations.
Owners/operators of vessels, harbor craft, and port operators can access grants, rebates, low‑interest loans, and workforce‑training funds to replace or retrofit equipment and build skills for zero‑emission operations, supporting job transitions and lower operating costs long term.
Importers, shippers, and ultimately U.S. consumers and small businesses will likely face higher shipping costs and higher prices on imported goods because fees and added compliance costs are likely passed along the supply chain.
Operators, importers, customs authorities, and port agents face substantial new administrative and compliance burdens from reporting, complex coverage rules, and assessment procedures, raising operational costs and time delays.
Steep late‑payment penalties (an immediate 20% plus 20% per 30 days) create large financial risk for carriers and importers, amplifying exposure to billing disputes or cash‑flow problems.
Introduced July 10, 2025 by Doris Matsui · Last progress July 10, 2025