Clean Shipping Act of 2023

II 118TH CONGRESS 1ST SESSION S. 1917 To amend the Clean Air Act to provide for the establishment of standards to limit the carbon intensity of the fuel used by certain vessels, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 8, 2023 Mr. PADILLA (for himself, Mr. WELCH, Mr. WHITEHOUSE, Mr. BOOKER, and Mrs. FEINSTEIN) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To amend the Clean Air Act to provide for the establishment of standards to limit the carbon intensity of the fuel used by certain vessels, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Clean Shipping Act 4 of 2023’’. 5 SEC. 2. MARINE ZERO GREENHOUSE GAS FUEL STANDARD. 6 The Clean Air Act is amended by inserting after sec- 7 tion 212 (42 U.S.C. 7546) the following: 8 VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1917 IS ‘‘SEC. 212A. MARINE ZERO GREENHOUSE GAS FUEL STAND- 1 ARD. 2 ‘‘(a) MARINE VESSEL FUEL CARBON INTENSITY 3 STANDARDS.— 4 ‘‘(1) STANDARDS.—The Administrator shall, by 5 regulation and except as provided in paragraph (3), 6 require each vessel on a covered voyage to comply 7 with standards for the carbon intensity of the fuel 8 used by that vessel so that the carbon intensity is— 9 ‘‘(A) in each of calendar years 2027 10 through 2029, at least 20 percent less than the 11 carbon intensity baseline; 12 ‘‘(B) in each of calendar years 2030 13 through 2034, at least 45 percent less than the 14 carbon intensity baseline; 15 ‘‘(C) in each of calendar years 2035 16 through 2039, at least 80 percent less than the 17 carbon intensity baseline; and 18 ‘‘(D) in calendar year 2040 and each cal- 19 endar year thereafter, 100 percent less than the 20 carbon intensity baseline. 21 ‘‘(2) PROMULGATION OF STANDARDS.—The Ad- 22 ministrator shall finalize— 23 ‘‘(A) the standard required by paragraph 24 (1)(A) by not later than January 1, 2026; and 25 VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1917 IS ‘‘(B) the standards required by each of 1 subparagraphs (B) through (D) of paragraph 2 (1) by not later than 2 years before the respec- 3 tive standard goes into effect. 4 ‘‘(3) TECHNOLOGICAL OR ECONOMIC FEASI- 5 BILITY.— 6 ‘‘(A) IN GENERAL.—If the Administrator 7 determines that a reduction in carbon intensity 8 required under paragraph (1) is not techno- 9 logically or economically feasible by the applica- 10 ble deadline under that paragraph, the Admin- 11 istrator, in lieu of promulgating the standard 12 otherwise required by that paragraph, shall pro- 13 mulgate a standard that will achieve the max- 14 imum reduction in the carbon intensity of the 15 fuel used by vessels on covered voyages that is 16 technologically and economically feasible by the 17 applicable deadline. 18 ‘‘(B) CONSIDERATIONS.—In determining 19 technological and economic feasibility for pur- 20 poses of subparagraph (A), the Administrator 21 shall take into account the net reduction of 22 emissions of greenhouse gases and potential ad- 23 verse impacts on public health, safety, and the 24 environment, including with respect to air qual- 25 VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1917 IS ity, water quality, and the generation and dis- 1 posal of solid waste. 2 ‘‘(4) HARMONIZATION WITH INTERNATIONAL 3 STANDARDS.—If the Administrator determines that 4 standards mandated by the International Maritime 5 Organization for reduction of the carbon intensity of 6 fuel used by vessels for a calendar year are equal to 7 or more stringent than the standards under para- 8 graph (1) for that calendar year, the Administrator 9 may adopt those standards. 10 ‘‘(5) EXEMPTION.—Any vessel that is on cov- 11 ered voyages for 30 days or fewer during a calendar 12 year shall be exempt from the standards promul- 13 gated under this subsection for that year. 14 ‘‘(6) COMMON OWNERSHIP OR CONTROL.—For 15 purposes of determining compliance with any stand- 16 ard established under this subsection, the Adminis- 17 trator may allow the carbon intensity of the fuels 18 used by vessels under common ownership or control 19 to be averaged. 20 ‘‘(7) OVERCOMPLIANCE.—The Administrator 21 may allow vessels to credit overcompliance with any 22 standard established under this subsection towards 23 demonstrating compliance with any future standard 24 under this subsection. 25 VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS 5 •S 1917 IS ‘‘(b) MONITORING AND REPORTING.— 1 ‘‘(1) LIST OF METHODS.— 2 ‘‘(A) IN GENERAL.—The Administrator 3 shall develop a list of acceptable methods for 4 monitoring and reporting compliance with the 5 standards established under subsection (a). 6 ‘‘(B) CONSISTENCY OF METHODS.—The 7 Administrator, to the maximum extent prac- 8 ticable, shall ensure the consistency of the 9 methods included in the list required under sub- 10 paragraph (A) with similar reporting schemes 11 developed by the European Union and the 12 International Maritime Organization. 13 ‘‘(2) ANNUAL REPORTING REQUIREMENTS.— 14 For each calendar year, a vessel shall report to the 15 Administrator— 16 ‘‘(A) the carbon intensity of the fuel used 17 for each covered voyage; 18 ‘‘(B) the amount of fuel used for each cov- 19 ered voyage; and 20 ‘‘(C) the total greenhouse gas emissions 21 measured in carbon dioxide equivalent for all 22 covered voyages. 23 ‘‘(3) ANNUAL REPORT.—Not later than 180 24 days after the end of each annual reporting period 25 VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS 6 •S 1917 IS under paragraph (2), the Administrator, in consulta- 1 tion with the Secretary of Transportation and the 2 Commandant of the Coast Guard, shall publish a re- 3 port that— 4 ‘‘(A) compiles the data reported under 5 paragraph (2); and 6 ‘‘(B) includes an explanation intended to 7 facilitate public understanding of— 8 ‘‘(i) the carbon dioxide equivalent 9 emissions of vessels on covered voyages; 10 and 11 ‘‘(ii) the carbon intensity of fuels used 12 by those vessels. 13 ‘‘(c) ENFORCEMENT.—The standards established 14 under subsection (a) and the annual reporting require- 15 ments of subsection (b)(2) shall be considered an emission 16 standard or limitation for purposes of section 304(a)(1). 17 ‘‘(d) DEFINITIONS.—In this section: 18 ‘‘(1) CARBON DIOXIDE EQUIVALENT.—The 19 term ‘carbon dioxide equivalent’ means the number 20 of metric tons of carbon dioxide emissions with the 21 same global warming potential as 1 metric ton of 22 another greenhouse gas, as calculated using Equa- 23 tion A–1 in section 98.2(b) of title 40, Code of Fed- 24 VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS 7 •S 1917 IS eral Regulations (as in effect on the date of enact- 1 ment of this section). 2 ‘‘(2) CARBON INTENSITY.—The term ‘carbon 3 intensity’ means the quantity of lifecycle greenhouse 4 gas emissions per unit of fuel energy, expressed in 5 grams of carbon dioxide equivalent per megajoule. 6 ‘‘(3) CARBON INTENSITY BASELINE.—The term 7 ‘carbon intensity baseline’ means the average carbon 8 intensity of the fuel used by all vessels on covered 9 voyages in calendar year 2024. 10 ‘‘(4) COVERED VOYAGE.—The term ‘covered 11 voyage’ means any voyage of a vessel for the purpose 12 of transporting passengers or cargo for commercial 13 purposes— 14 ‘‘(A) that is between any ports of call 15 under the jurisdiction of the United States; or 16 ‘‘(B) that is between a port of call under 17 the jurisdiction of the United States and a port 18 of call under the jurisdiction of a foreign coun- 19 try. 20 ‘‘(5) GREENHOUSE GAS.—The term ‘greenhouse 21 gas’ means carbon dioxide, methane, nitrous oxide, 22 hydrofluorocarbons, perfluorocarbons, and sulfur 23 hexafluoride. 24 VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS 8 •S 1917 IS ‘‘(6) LIFECYCLE GREENHOUSE GAS EMIS- 1 SIONS.—The term ‘lifecycle greenhouse gas emis- 2 sions’ has the meaning given the term in section 3 211(o)(1). 4 ‘‘(7) PORT OF CALL.—The term ‘port of call’ 5 means the port where a vessel stops to load or un- 6 load cargo or to embark or disembark passengers. 7 ‘‘(8) VESSEL.—The term ‘vessel’ means a vessel 8 of 400 gross tonnage or more.’’. 9 SEC. 3. IN-PORT MARINE VESSEL ZERO EMISSION STAND- 10 ARDS. 11 Section 213 of the Clean Air Act (42 U.S.C. 7547) 12 is amended by adding at the end the following: 13 ‘‘(e) IN-PORT MARINE VESSEL ZERO EMISSION 14 STANDARDS.— 15 ‘‘(1) STANDARDS.—Except as provided in para- 16 graph (2) and not later than January 1, 2026, the 17 Administrator shall promulgate (and from time to 18 time revise) standards to eliminate, by not later than 19 January 1, 2030, emissions of greenhouse gases and 20 air pollutants for which air quality criteria have been 21 issued under section 108 from vessels at anchorage 22 or at berth in the contiguous zone of the United 23 States (as described in Presidential Proclamation 24 VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS 9 •S 1917 IS 7219 (43 U.S.C. 1331 note; 64 Fed. Reg. 48701, 1 49844)). 2 ‘‘(2) EXCEPTION.—If the Administrator deter- 3 mines that standards required by paragraph (1) are 4 not technologically or economically feasible, the Ad- 5 ministrator shall promulgate standards that achieve 6 the maximum reduction of the emissions described 7 in that paragraph from the vessels described in that 8 paragraph that is technologically and economically 9 feasible. 10 ‘‘(3) CONSIDERATIONS.—In determining tech- 11 nological and economic feasibility under paragraph 12 (2), the Administrator shall take into account the 13 net reduction of emissions of greenhouse gases, the 14 net reduction of emissions of air pollutants for which 15 air quality criteria have been issued under section 16 108, and potential adverse impacts on public health, 17 safety, and the environment, including with respect 18 to air quality, water quality, and the generation and 19 disposal of solid waste.’’. 20 Æ VerDate Sep 11 2014 22:17 Jun 29, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\S1917.IS S1917 kjohnson on DSK79L0C42PROD with BILLS