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Creates a narrow exemption for certain energy cargo moved by vessel between U.S. noncontiguous points by adding new definitions and saying the cited statutory requirement (subsection (b)) does not apply to that movement. It defines terms like “covered noncontiguous trade,” “energy products,” “energy source,” “equipment,” and “merchandise” so the exemption applies only to specifically described energy shipments in those trade routes.
Defines "covered noncontiguous trade" as (A) trade between one of the contiguous 48 States and Alaska, Hawaii, Guam, or the Commonwealth of Puerto Rico; and (B) trade between a place in Alaska, Hawaii, Guam, or the Commonwealth of Puerto Rico and another place in Alaska, Hawaii, Guam, or the Commonwealth of Puerto Rico.
Defines "energy products" to mean any equipment, component of equipment, or energy source for the generation, storage, transmission, and distribution of electricity.
Defines "energy source" to include (A) liquefied natural gas or any other energy source needed for the generation of electricity; and (B) a petroleum product.
Defines "equipment" to mean power generators, storage units, wind turbines, solar panels, hydroelectric plants, and any other components needed for the generation, transmission, or distribution of electricity.
States that "merchandise" includes merchandise owned by the United States Government, a State, or a subdivision of a State, and includes valueless material.
Who is affected and how:
Vessel operators and maritime carriers: Operators that move fuels, fuel-related equipment, or other defined energy products between U.S. noncontiguous points will be directly affected. The exemption can reduce the set of statutory requirements they must follow for qualifying voyages, which may lower compliance costs or change routing/operational decisions.
Energy companies and shippers: Companies that produce, refine, sell, or transport bulk energy products (including fuel suppliers and bulk fuel traders) may see faster or less costly marine transport options for shipments that meet the definitions and route criteria.
Ports and local economies in noncontiguous areas: Ports serving qualifying routes (for example, ports in noncontiguous U.S. jurisdictions) could experience shifts in traffic or operational requirements if more energy movements are structured to fit the exemption.
Federal maritime regulators and agencies: Agencies will need to interpret and apply the new statutory definitions, update guidance, and adjust enforcement or compliance checks to reflect that certain energy shipments are exempt from the named provision.
Public interest and safety stakeholders: Any change that reduces regulatory coverage for maritime movements can raise oversight questions. The bill narrows applicability of an existing rule to a specific set of energy cargoes and routes; stakeholders concerned with environmental risk, safety, or maritime labor may review the implications of the exemption.
Overall effect: The change is narrow and technical. It removes a specific statutory requirement for a limited set of energy shipments between defined noncontiguous U.S. points, which primarily reduces regulatory obligations for qualifying vessel movements while requiring agencies and industry to apply new definitions to determine coverage.
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Referred to the House Committee on Transportation and Infrastructure.
Introduced May 1, 2025 by Ritchie Torres · Last progress May 1, 2025
Referred to the Subcommittee on Coast Guard and Maritime Transportation.
Referred to the House Committee on Transportation and Infrastructure.
Introduced in House