S. 692

119 S692 IS: Sustainable Vessel Fuel Act
 U.S. Senate
 2025-02-24
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 692  IN THE SENATE OF THE UNITED STATES   February 24, 2025   Ms. Hirono  introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to modify the clean fuel production credit to provide a special rate for sustainable vessel fuel.
1.
Short title
This Act may be cited as the   Sustainable Vessel Fuel Act  .
2.
Special rate under clean fuel production credit for sustainable vessel fuel
(a)
In general
 Section 45Z(a)(3)  of the Internal Revenue Code of 1986 is amended—
(1)
in the heading, by inserting
and sustainable vessel fuel   after
sustainable aviation fuel  ,
(2)
in subparagraph (A), by inserting  or sustainable vessel fuel  after  sustainable aviation fuel , and
(3)
in subparagraph (B), by striking  this subparagraph (A)  and inserting  this section .
(b)
Inclusion as transportation fuel
 Section 45Z(d)(5)  of the Internal Revenue Code of 1986 is amended—
(1)
by redesignating subparagraph (B) as subparagraph (C), and
(2)
by inserting after subparagraph (A) the following new subparagraph:
(B)
Sustainable vessel fuel
(i)
In general
The term  transportation fuel  shall include sustainable vessel fuel which satisfies the requirement under subparagraph (A)(iii).
(ii)
Definition
The term  sustainable vessel fuel  means liquid fuel which—
(I)
is suitable for use as a fuel in a commercial vessel or ferry (as such terms are defined in section 4462(a)(4)) and is sold for such use,
(II)
is not derived from palm fatty acid distillates or petroleum,
(III)
as determined pursuant to subsection (b)(1), has an emissions rate of zero, and
(IV)
satisfies the requirements of any standards which have been identified by the Secretary pursuant to clause (iii).
(iii)
Standards
The Secretary shall identify any standards as are established by the American Society for Testing and Materials (or similar standards organization) with respect to liquid fuel described in subclauses (I) through (III) of clause (ii) which the Secretary determines appropriate to carry out the purposes of this subparagraph.
 .
(c)
Termination
 Section 45Z(g)  of the Internal Revenue Code of 1986 is amended by inserting  (or, in the case of transportation fuel which is sustainable vessel fuel, December 31, 2035)  after  December 31, 2027 .
(d)
Effective date
The amendments made by this section shall apply to fuel produced after December 31, 2025.