Summary#
This bill would require the EPA Administrator to collect detailed reports from large cargo ships and charge fees based on the pollution those voyages cause. It sets up fee formulas for lifecycle carbon dioxide-equivalent (CO2-e) emissions and for three criteria air pollutants (nitrogen oxides, sulfur dioxide, and fine particulate matter). The bill directs portions of the money raised to programs that reduce port and shipping pollution, support fuel and technology research, and help ports and vessel operators switch to low- or zero-emission technologies.
What it means for you#
- Operators of covered voyages (self-propelled cargo vessels 5,000 gross tonnage or more) must report voyage details and fuel use starting January 1, 2027, and pay assessed fees based on fuel consumed and emissions profiles.
- Importers may be assessed prorated fees when cargo is offloaded at foreign ports and cannot bring the cargo into the United States until required reporting and payment are complete.
- Fees collected will be used starting in fiscal year 2029 to fund ship replacement or retrofits, fuel and technology R&D, workforce training, electrification grants for harbor craft and ferries, port air monitoring, and existing port programs.
Expenses#
- CO2-e fee: calculated by multiplying mass of each fuel burned by a lifecycle CO2-e rate and $150 per metric-ton-equivalent, with an annual inflation plus 5% adjustment beginning 2028. Portions of CO2-e fees for polar-region travel are tripled. Credits reduce the fee for amounts covered under certain international (Annex VI) remedial unit systems. Fees are due within 30 days after assessment or by the end of the calendar year; late payment increases by 20% plus 20% every 30 days until paid.
- Criteria pollutant fees: based on fuel burned within U.S. waters multiplied by emission rates and fixed dollar amounts per pound: NOx $6.30, SO2 $18, PM2.5 $38.90. These amounts are adjusted annually for inflation plus 5% beginning 2028. Same payment deadlines and penalties apply.
- Recognition of foreign pollution fees: U.S. fee reduced if the country of the port of origin charges a pollution fee (reduction rules based on whether that fee is at least 50% of the U.S. fee).
- Allocation of revenues (percentages of amounts collected during the previous calendar year, beginning FY2029): 25% to Maritime Administration for replacing/retrofitting Jones Act vessels; 25% to Department of Energy for low-carbon fuel and technology R&D; 10% for harbor craft electrification; 10% for ferry electrification; 5% for workforce development at EPA; 5% for port fenceline air monitoring; 15% to EPA Clean Ports program; 3% to NOAA oceans and coastal security; 2% to marine debris activities at Commerce. Small administrative caps (generally up to 1%) apply for program management.
- Sunset: the CO2-e fee section ends if an international body implements and enforces a global fee equal to or greater than the U.S. fee.
Proponents' View#
The bill’s findings say marine shipping contributes to global CO2 emissions and local port air pollution that harms nearby communities. Supporters would point to the bill’s approach of making operators and importers pay for lifecycle emissions and local air pollutants, creating strong reporting rules, and using revenue to speed adoption of low- and zero-emission ships, fuels, port equipment, workforce training, and local air monitoring.
Opponents' View#
No publicly available information.