The International Maritime Pollution Accountability Act of 2025 would require EPA to assess fees on certain shipping voyages and, for imported cargo, provide a related credit mechanism. It creates two primary fee tracks: a lifecycle CO2e emissions fee and separate charges for NOx, SO2, and PM2.5 emissions.
Revenues are earmarked for a broad set of decarbonization programs, including modernizing the Jones Act fleet, funding low-carbon fuels and technologies, expanding zero-emission port equipment, and increasing port-area air monitoring. A sunset provision ties the program to global regimes; if an international fee equal to or greater than these charges is adopted, the act sunsets.
The bill also imposes a quarterly reporting regime and standardizes vessel-tracking data to support enforcement and policy design.
At a Glance
What It Does
Imposes two sets of fees on covered maritime voyages: a lifecycle CO2e fee and separate emissions fees for NOx, SO2, and PM2.5, with specific calculation rules and inflation adjustments. It establishes reporting requirements starting 2027 and a sunset trigger linked to global IMO-like fees.
Who It Affects
Operators of ships over 5,000 gross tons on covered voyages, importers of cargo bound for the United States, port authorities, vessel owners, and entities involved in towing, harbor services, and port operations.
Why It Matters
Funds a domestic decarbonization agenda—modernizing the Jones Act fleet, advancing low-carbon fuels, electrification of ports and harbor craft, and workforce development—while attempting to align with global pollution-control efforts.
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What This Bill Actually Does
The bill starts by establishing a basis for policy, recognizing that marine shipping contributes a meaningful share of global CO2e emissions and port-area air pollution that affects nearby communities. It then defines a set of key terms for what qualifies as a covered voyage and who is involved in the reporting and fee process.
Beginning in 2027, operators of covered voyages must submit detailed voyage data to the EPA, including origins, routes, fuel types and masses, cargo mass, and port calls. This data underpins two parallel fee regimes.
First, a lifecycle CO2e emissions fee is assessed for each voyage, calculated by multiplying fuel mass, the fuel’s CO2e emissions factor, and a base rate of $150 per unit of fuel. The baseline increases with inflation and, for polar portions of voyages, triples the charge.
There are credits related to pre-existing international mechanisms (Annex VI) and a sunset trigger tied to a global rate if an international body institutes a comparable fee. Second, fees for NOx, SO2, and PM2.5 emissions are assessed per fuel type, with fixed multipliers ($6.30 per NOx, $18 per SO2, and $38.90 per PM2.5 per unit mass of fuel), also subject to inflation adjustments.
Importantly, importers of cargo bound for the United States may be charged under an alternate import-fee mechanism that reduces the U.S. fee if a foreign port program exists. Fees are due by the end of the calendar year in which they’re assessed, with penalties for late payment.
The act creates an ambitious funding framework: 25% of fees collected are dedicated to replacing or retrofitting Jones Act vessels with batteries or low-carbon propulsion; 5% to DOE-backed grants for low-carbon maritime fuels and technologies; 5% to workforce development; 10% to harbor craft electrification; 10% to ferry electrification; 5% to air-monitoring enhancements near ports; and additional allocations to support existing federal programs at Clean Ports, Oceans and Coastal Security, and Marine Debris Foundation. The act also outlines an enforcement regime and a clawback provision for misused awards, a process to modernize the Jones Act fleet if no eligible vessels exist, and a management cap of 1% for program administration.
Finally, the bill includes provisions to support research and development and workforce training through maritime academies and other eligible entities, and a separate section on the per-voyage data required for enforcement and accuracy of fee computation.
The Five Things You Need to Know
The bill imposes a lifecycle CO2e fee for maritime voyages, calculated as fuel mass × CO2e factor × $150 per unit, with inflation and polar-conditions multipliers.
Separately, NOx, SO2, and PM2.5 fees are charged per fuel type using fixed multipliers ($6.30, $18, $38.90) and inflation adjustments.
Beginning in 2027, voyage operators must report extensive voyage data (origins, distances, times, fuel and cargo masses, US ports of call, and more).
Revenue is earmarked for decarbonization and modernization. Notably, 25% funds Jones Act fleet modernization; 5% supports DOE low-carbon fuels; 10% for harbor equipment; 5% for training; and 15% for existing federal programs.
The act includes a sunset trigger if a global IMO-like fee equal to or greater than these charges is instituted and enforced.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Findings on emissions and ports
The bill notes that marine shipping accounts for a meaningful slice of global CO2e emissions and that ports are significant sources of air pollution affecting nearby communities. It frames the policy goal as reducing maritime pollution and improving health outcomes in port-adjacent areas.
Key definitions
Definitions cover terms like Administrator, calendar quarter, covered voyage, importer, exclusive economic zone, final port of call, Jones Act vessel, and other terms critical for scope and calculation of fees and reporting.
Reporting requirements
Starting 1/1/2027, operators of covered voyages must submit quarterly voyage information to the EPA, including origin, distance, time, fuel and cargo mass, ports of call, and other data necessary to calculate fees.
Lifecycle CO2e fee framework
Sec. 5 builds the lifecycle CO2e profile for maritime fuels and sets the per-voyage fee structure. It details how fees are calculated, inflation-adjusted, and tripled for polar segments. It also introduces an Annex VI credit mechanism and a sunset trigger tied to global regimes.
Fees on criteria air pollutants
Sec. 6 creates a parallel fee regime for NOx, SO2, and PM2.5 emissions, with mass-based calculations per fuel and annual inflation adjustments. It mirrors Sec. 5 in timing and enforcement.
Decarbonizing shipping and ports program
Sec. 7 establishes a comprehensive suite of programs to reinvest fee revenues: (a) modernize the Jones Act fleet; (b) fund DOE low-carbon fuels and tech; (c) support workforce development; (d) fund harbor craft electrification; (e) support ferry electrification; (f) enhance port-area air monitoring; (g) fund existing federal programs; and (h) administer the programs with a 1% cap on overhead.
Jones Act fleet modernization
Defines the program to replace or retrofit Jones Act vessels with battery or low-carbon propulsion and sets eligibility and selection priorities focused on emission reduction, air-quality benefits, water quality, and disadvantaged areas.
Funding for low-carbon fuels and tech
Allocates 25% of collected fees to DOE for competitive grants to promote domestic production of sustainable maritime fuels and the development and deployment of low-emission technologies.
Workforce development
Allocates 5% to train and develop the maritime workforce, including support for maritime academies and related curricula to prepare for maintenance and operation of zero-emission equipment and low-carbon fuels.
Harbor craft electrification
Allocates 10% to replace or retrofit harbor crafts with battery-powered vessels and to fund workforce training for harbor electrification and maintenance.
Ferry electrification program
Allocates 10% to electrify ferry or crew vessels and to train personnel in their operation and maintenance.
Air monitoring and public health
Allocates 5% to support enhanced, fence-line air monitoring around ports and in nearby communities to track air quality improvements.
Funding for existing programs
Directs portions of fee revenue to existing programs like Clean Ports, Oceans and Coastal Security, and Marine Debris Foundation to support broader environmental and security objectives.
Program administration
Imposes a 1% administrative cap for program management and oversight, ensuring funds are directed to on-the-ground decarbonization and monitoring efforts.
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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
- Jones Act vessel owners and operators gain access to grants and preferential funding for modernization, accelerating transition to zero-emission propulsion.
- Port authorities and port communities benefit from cleaner air and local health improvements due to stricter emissions controls and electrification investments.
- Maritime academies and workforce training providers gain funding and clearer pathways to modern maritime careers in low-emission technology.
- Domestic fuel producers and technology developers stand to grow through DOE grants and commercialization opportunities.
- Environmental justice communities near ports benefit from reduced air pollutants and improved port-related health outcomes.
Who Bears the Cost
- Operators of covered voyages bear the primary fee burden through lifecycle CO2e and pollutant fees that scale with fuel use and voyage distance.
- Importers for qualified importing voyages may face adjusted fees, with offsets relative to other regimes.
- Some port-related entities may incur upfront costs to conform to reporting requirements and to adopt cleaner equipment over time.
- Small- and mid-sized firms in the shipping and port sectors could see compliance costs and transitional expenses as they adapt to new technologies and reporting.
- Consumers and supply chains may experience higher shipping costs if fees are passed through in freight rates.
Key Issues
The Core Tension
The central dilemma is whether to rely on a robust domestic fee system to rapidly decarbonize shipping and improve port air quality, while avoiding undue burden on U.S. competitiveness and supply chains in a way that could spur leakage to foreign-flag vessels or shift emissions abroad.
The bill relies on a domestic-fee regime to drive decarbonization, which raises questions about competitiveness and the potential for pass-through costs to consumers. It also depends on the existence and timing of international, IMO-like regimes to sunset the domestic scheme; if global fees at least match the U.S. charges, the act terminates, potentially reducing incentives for domestic investment after a dynamic global standard is established.
The reporting burden is substantial, though the data collection is designed to support accurate fee assessment and policy evaluation. There are potential implementation challenges around how polar voyage multipliers are applied and how credits from Annex VI interact with domestic fees.
Finally, the breadth of funded programs creates a complex allocation landscape that will require careful oversight to ensure funds reach the intended decarbonization and public-health outcomes.
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