The International Maritime Pollution Accountability Act of 2025 would require EPA to establish lifecycle carbon dioxide-equivalent (CO2e) emissions profiles for maritime fuels and to levy fees on covered voyages based on those emissions. The act also creates an alternate fee pathway for imported cargo bound for the United States and requires quarterly reporting of voyage data to administer the fees.
In addition to the fee framework, the bill authorizes substantial, grant- and loan-funded programs to decarbonize vessels and ports, including modernizing Jones Act fleets, electrifying harbor craft and ferries, and expanding port-area air monitoring. A UN/IMO global fee trigger could sunset the U.S. regime.
The bill’s design seeks to pair price signals with targeted decarbonization investments while expanding regulatory oversight at ports.
At a Glance
What It Does
EPA must develop lifecycle CO2e emissions profiles for maritime fuels and assess fees on covered voyages. The bill also creates an alternate import-fee pathway and requires quarterly voyage reporting.
Who It Affects
Operators of covered voyages (vessels 5,000 GT+ transporting cargo), importers of U.S.-bound cargo, port authorities, Jones Act vessel owners, and maritime industry stakeholders.
Why It Matters
It monetizes environmental impacts of shipping, aligns maritime costs with emissions, and funds a portfolio of decarbonization investments that could reshape U.S. maritime operations and port health near communities.
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What This Bill Actually Does
The bill starts by defining what counts as a covered voyage and who must report information about those voyages. Beginning in 2027, ship operators must provide quarterly data on origins, destinations, fuel types and quantities, cargo movements, ports of call, and in-port activity, all to help calculate lifecycle emission fees.
A lifecycle CO2e emissions profile for maritime fuels is to be built, and fees are computed by multiplying the mass of fuel used by its CO2e factor and a base charge, with annual inflation adjustments. Special provisions apply to voyages in polar regions and to certain exemptions (military, cargo for disaster relief, and Jones Act vessels).
An alternate pathway imposes a fee on imported cargo bound for the United States, prorated by the share of the cargo ultimately destined for the U.S. and subject to enforcement. If foreign pollution fees are adopted internationally at or above a threshold, the bill would sunset in favor of the global regime.
The law also channels fee revenue into a broad slate of decarbonization programs: modernizing U.S. Jones Act vessels, funding research and development for low-carbon fuels and technologies, workforce development, harbor craft and ferry electrification, enhanced port air monitoring, and funding for existing environmental programs. The intent is to create a consistent framework for charging pollution while accelerating clean maritime options and protecting port communities.
The article closes by noting the potential policy tensions, including compliance complexity, cost pass-through to shippers and consumers, and how international rules interact with U.S.-specific programs.
The Five Things You Need to Know
The bill directs EPA to develop a lifecycle CO2e emissions profile for maritime fuels by Jan 1, 2027 and use it to price voyage fees.
Beginning Jan 1, 2027, operators of covered voyages must report quarterly voyage data to calculate fees.
Fees are calculated per type of fuel by mass, CO2e factor, and a base amount, with inflation adjustments and polar-region multipliers.
An alternate import-fee pathway applies to cargo bound for the U.S.
prorated by the mass share and subject to enforcement.
Revenue funds decarbonization programs (Jones Act modernization, harbor craft and ferry electrification, R&D, workforce development, port monitoring) and includes a sunset trigger if a global regime is adopted.
Section-by-Section Breakdown
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Reporting requirements for covered voyages
Starting in 2027, operators of covered voyages must submit voyage information to the Administrator. The data must include origin port, total distance and time, fuel masses by type, cargo mass, all U.S. ports of call, intermediate ports, final port of call, vessel load at origin, portion of cargo transloaded at intermediate ports, ultimate origin-destination data, and port-by-port time and fuel use. Information must be supplied for each covered voyage ending in a calendar quarter within 30 days of quarter’s end. The reporting is designed to enable accurate fee assessment and verification of compliance.
Lifecycle CO2e emissions fee on cargo voyages
This section requires the Administrator to develop a lifecycle CO2e profile for maritime fuels by 2027 and to assess a fee for each covered voyage based on the fuel mass consumed, its CO2e emissions per unit mass, and a baseline fee, with a default of $150 per unit mass. The fee is subject to inflation adjustments beginning in 2028 and may be multiplied for portions of voyages north of the Arctic Circle. Annex VI credits or remedial units can offset costs where applicable. Fees are due by the later of 30 days after assessment or the year-end of the assessment year.
Fees on criteria air pollutants
This section requires an accompanyingLifecycle emissions profile for nitrogen oxides, sulfur dioxide, and PM2.5, and imposes fees on each pollutant’s emissions per unit mass of fuel. The fee structure parallels Section 5, with inflation adjustments and a minimum due date of 30 days after assessment and year-end compliance. Penalties mirror the CO2e regime with a 20 percent surcharge for late payments and additional increases for ongoing nonpayment.
Modernizing the Jones Act fleet
A program provides grants or rebates to replace or retrofit Jones Act vessels to operate on batteries or low-carbon fuels. Eligible entities include vessel owners, port authorities, and partnership-based private entities. Priority considers emission reductions, air-quality benefits, water quality, program efficiency, and targeting of high-pollution areas. The program includes clawback provisions if recipients fail to meet certification requirements and allows continuity if no eligible Jones Act vessels exist.
R&D for low-carbon maritime fuels and technologies
Funds support competitive DOE-administered grants for producing, transporting, blending, or storing sustainable maritime fuels, and for developing low-emission technologies. Priorities emphasize domestic production deployment, greenhouse gas reductions, air quality, water quality, public health benefits, and job creation. A sine qua non is partnership with eligible entities and oversight by the administering agency.
Workforce development
Allocations fund training and curriculum development at maritime academies and related institutions to support maintenance and operation of zero-emission port equipment and vessels. Eligible entities include maritime academies and allied training providers. The program prioritizes training that expands the domestic workforce for sustainable maritime operations.
Harbor craft electrification
Grants and rebates target harbor craft upgrades to battery propulsion, with workforce development for ongoing operation and maintenance. Eligible entities include state and local port authorities, harbor operators, and private partners. Priority focuses on emission reductions, local health benefits, and broad access to zero-emission harbor services.
Ferry electrification
Funding supports replacement or retrofit of ferries and crew vessels with battery propulsion technologies. Eligible recipients include state or local authorities and port operators, often in partnership with private entities. Priorities mirror other programs: emission reductions, air quality improvements, and public health benefits.
Increased air monitoring in port communities
A program funds fenceline monitoring and health-oriented air-quality monitoring near ports, supporting state or local agencies, port authorities, and environmental groups. The emphasis is on obtaining real-time data to track progress and inform policy decisions.
Funding of existing programs
The bill directs annual appropriations to sustain existing related programs (Clean Ports, Oceans and Coastal Security, and Marine Debris). These funds complement the decarbonization grant programs and support cross-agency environmental and port-related objectives.
(Optional) Other administrative or sunset provisions
The text provides for a sunset mechanism contingent on international action; when a global maritime emissions fee equal to or greater than U.S. fees is instituted by the International Maritime Organization or another UN agency, the U.S. scheme would cease, shifting incentives toward international rules.
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Explore Environment in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Vessel owners and operators who retrofit or replace vessels with zero-emission propulsion technologies and may qualify for grant programs under Section 7.
- Port authorities and port operators that receive funding to modernize equipment, monitor air quality, and upgrade port infrastructure.
- Port-adjacent communities that experience improved air quality and health outcomes from reduced emissions and enhanced monitoring.
- Maritime academies and workforce training providers that gain new programs and demand for specialized training.
- Environmental and public-health organizations that benefit from stricter emission controls and transparency in reporting.
Who Bears the Cost
- Operators of covered voyages that incur lifecycle CO2e and criteria pollutant fees.
- Importers of cargo bound for the United States who participate in the importer-fee program.
- Consumers and supply chains that may face higher shipping costs as fees are passed through.
- Firms that do not upgrade or retrofit to low-emission technologies and therefore face higher operating costs.
- Foreign-flag vessels and non-participating entities that may face competitive pressures if global rules do not align with U.S. policy.
Key Issues
The Core Tension
Balancing aggressive decarbonization with the risk of imposing higher shipping costs and distortions in international trade — while ensuring domestic fleets are modernized, port communities benefit from cleaner air, and the regulatory framework remains practical and enforceable across a globally connected industry.
The bill deliberately packages a complex set of data reporting, emission pricing, and grant programs. While the price signals are designed to accelerate decarbonization, they also introduce multiyear compliance costs and administrative complexity.
The reliance on lifecycle CO2e calculations and per-unit fees raises questions about measurement methods, data submission burdens, and the potential for cross-border arbitrage if other countries resist similar schemes. The importer pathway creates new incentives and potential for diverse compliance timelines across supply chains.
Finally, the programmatic funding, oversight, and clawback provisions depend on stable funding and robust monitoring to prevent misallocation or fraud.
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