HR 4325119th CongressIn Committee

Clean Shipping Act of 2025

Introduced: Jul 10, 2025

Sponsor: Rep. Garcia, Robert [D-CA-42] (D-California)

Environment & Climate

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Clean Shipping Act of 2025 would add a comprehensive marine greenhouse gas (GHG) program to the Clean Air Act. It requires the U.S. Environmental Protection Agency (EPA) to establish standards that sharply reduce the carbon intensity of fuels used by certain vessels on covered voyages. “Carbon intensity” means GHG emissions per unit of fuel energy (grams CO2-equivalent per megajoule) over the fuel’s lifecycle. The baseline for reductions is the average carbon intensity of fuels used on covered voyages in 2027. The act sets a clear, stepped schedule: by 2030–2034 vessels must be at least 30% below baseline, with more stringent reductions in later periods, culminating in 100% reduction by 2050 and beyond. It also requires annual monitoring, reporting, and public disclosure of vessel-level emissions data, and allows some flexibility for feasibility and international alignment with IMO standards. In addition, the bill directs the agency to implement in-port zero-emission standards by 2035 for vessels at anchorage or berth in U.S. waters, with feasibility exemptions. Overall, the bill aims to push the shipping sector toward significantly lower lifecycle emissions through fuel choices and technology, while creating a framework for accountability and data transparency.

Key Points

1Definitions and scope
2- Establishes key terms: carbon intensity (GHG per unit of fuel energy), lifecycle greenhouse gas emissions, covered voyages, and vessels (400 gross tonnage or more).
3- Covered voyages include trips between U.S. ports or between a U.S. port and a foreign port.
4Carbon intensity standards and timelines
5- EPA must regulate carbon intensity of fuel used for propulsion and onboard equipment on covered voyages.
6- Reduction targets relative to the 2027 baseline:
7- 2030–2034: at least 30% reduction
8- 2034–2039: at least 58% reduction
9- 2040–2044: at least 83% reduction
10- 2045–2049: at least 92% reduction
11- 2050 and onward: 100% reduction
12- Standards must be finalized by specific deadlines, with earlier standards 2 years before they take effect.
13- Provisions for technological/economic feasibility allow adjusted standards if full reductions aren’t feasible, considering net emission reductions and public health/environmental impacts.
14- Possible harmonization with IMO standards if IMO rules are as stringent or stricter.
15Exemptions and compliance flexibilities
16- Short trips: vessels on covered voyages for 30 days or fewer in a year are exempt from the standards for that year.
17- Common ownership or control: allows averaging of carbon intensity across vessels under common ownership or control for compliance.
18- Overcompliance: vessels may count extra reductions toward future standards (overcompliance credit).
19Monitoring, reporting, and public disclosure
20- EPA must create acceptable methods for monitoring and reporting compliance, aligned where possible with EU and IMO schemes.
21- Annual reporting by vessel owners/operators includes:
22- Carbon intensity for each covered voyage
23- Amount of fuel used for each voyage
24- Total GHG emissions for all covered voyages
25- Public reports: EPA must publish a yearly report showing aggregated data and explanations to help the public understand vessel emissions and fuel carbon intensity; the Department of Transportation must also publish a copy within a short period.
26Enforcement
27- The carbon intensity standards and annual reporting requirements are treated as emission standards for purposes of enforcement under the Clean Air Act.
28In-port zero-emission standards
29- Adds a new provision requiring EPA to set standards to eliminate GHG and other air pollutant emissions from vessels at anchorage or berth in the contiguous U.S. by 2035.
30- If full in-port standards aren’t feasible, EPA must set the maximum feasible reductions given technological and economic constraints.
31- Feasibility determinations must consider net reductions and potential health, safety, water quality, and waste-related impacts.

Impact Areas

Primary affected group/area- Vessel owners/operators (and their fleets on covered voyages) and fuel suppliers, who must meet progressively stricter carbon-intensity standards and participate in monitoring/reporting.- U.S. ports and port authorities, which will interact with the in-port zero-emission standards and the data/reporting regime.Secondary groups/areas affected- U.S. and international maritime industry, including compliance planning, potential shifts to lower-carbon fuels and technologies, and adaptation to reporting requirements.- Environmental and public health stakeholders, who may see reduced GHG and related air pollutants as a result of stricter vessel standards.- Consumers and supply chains that rely on shipping, potentially affecting shipping costs and fuel choices.Additional impacts- International considerations: alignment or conflict with International Maritime Organization (IMO) standards; potential encouragement for harmonized global rules or competitive shifts if U.S. standards diverge.- Economic and technological effects: incentives for adoption of low-carbon fuels, energy efficiency technologies, and alternative propulsion; potential short-term cost increases for shipowners, offset by long-term environmental and health benefits.- Data, transparency, and oversight: new reporting infrastructure and public data portals to track vessel emissions and fuel carbon intensity.

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