First, why is this legislation being introduced? Congress has found that the marine shipping industry is a significant contributor to global carbon dioxide emissions, accounting for nearly 3% of the total. What’s more, emissions from this sector are on the rise. Local communities surrounding ports are also suffering from poor air quality, which leads to serious health issues for residents.
To address these problems, the bill proposes several key actions:
### Imposing Fees on Emissions Starting January 1, 2025, the Environmental Protection Agency (EPA) will develop emission profiles for various maritime fuels. The operators of large cargo vessels will be required to report extensive data on their journeys, including fuel consumption and emissions. Based on this data, a fee will be calculated. For example, a fee of $150 per metric ton of carbon dioxide-equivalent emissions will be assessed, with adjustments for inflation and heightened fees for voyages through polar regions.
### Comprehensive Reporting Requirements Operators will need to report details of their voyages, such as distance traveled, mass of fuel consumed, ports visited, and cargo details, to the EPA, Coast Guard, and Customs and Border Protection. These reports will be used to calculate the fees on both lifecycle carbon emissions and specific criteria pollutants like nitrogen oxides, sulfur dioxide, and fine particulate matter (PM2.5).
### Provisions for Non-compliance If fees are not paid on time, the Coast Guard can prohibit the operator from operating within U.S. waters and docking at U.S. ports. This is expected to enforce compliance stringently, ensuring that the shipping operators adhere to the new regulations.
### Funding and Reinvestment The legislation includes a detailed plan for reinvesting the collected fees back into improving maritime and port infrastructure and technologies. For instance, 25% of the funds will go to the Maritime Administration to promote zero-emissions technologies. Another 25% will be allocated to the Department of Energy for researching and developing low-carbon maritime fuels and technologies. Additional funds will be directed toward workforce development, harbor craft and ferry electrification, and increasing air quality monitoring in port communities.
### Modernizing the Jones Act Fleet Specific grants will be available to replace or retrofit existing Jones Act vessels (U.S. flagged ships) to utilize rechargeable batteries or low-carbon fuels. Priority will be given to projects that offer maximum reductions in greenhouse gas emissions and public health benefits.
### International Considerations Interestingly, the bill includes provisions to consider pollution-based fees already paid in the vessel’s country of origin. If the foreign fee amounts to at least 50% of the U.S. fee, a proportional discount will be given to the operator.
The bill has been referred to multiple committees, including Energy and Commerce, Transportation and Infrastructure, and Science, Space, and Technology, ensuring that all aspects of the legislation are thoroughly reviewed. After committee considerations, it will need to pass the House and then the Senate before being signed into law by the President.
### Broader Implications This is a significant stride in the global effort to reduce carbon emissions and improve air quality. It complements international agreements and conventions aimed at decarbonizing the shipping industry. By implementing a structured and stringent fee system, the U.S. aims to push the maritime sector toward greener, more sustainable practices.
In conclusion, while the primary aim of the International Maritime Pollution Accountability Act of 2024 is to reduce emissions and improve air quality, it also seeks to promote technological innovation, modernize maritime vessels, and protect public health. If passed, this legislation could mark a substantial shift in how maritime shipping operates, making strides towards a more sustainable future.
