[Congressional Record Volume 168, Number 160 (Tuesday, October 4, 2022)]
[Extensions of Remarks]
[Page E1024]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INTRODUCTION OF THE MARITIME FUEL TAX PARITY ACT

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                          HON. JOHN GARAMENDI

                             of california

                    in the house of representatives

                        Tuesday, October 4, 2022

  Mr. GARAMENDI. Madam Speaker, today I introduce the ``Maritime Fuel 
Tax Parity Act,'' with Congressman John H. Rutherford (R-FL).
  Under current law, maritime diesel fuel for commercial shipping or 
ocean-going passenger vessels is exempt from the federal fuel excise 
tax that supports the Highway Trust Fund. This same tax exemption 
applies to diesel fuel for other non-road vehicles such as train 
locomotives and off-highway vehicles like construction equipment or 
farm vehicles. Such ocean-going vessels are also exempt from the 
federal excise tax that supports the Inland Waterways Trust Fund.
  Under current law, non-diesel fuels for ocean-going vessels and 
aircraft are also exempt from federal excise taxes on fuel. However, 
non-diesel maritime fuels are only exempt for ocean-going vessel 
engaged in commercial fishing, foreign trade, or interstate commerce 
between the Atlantic and Pacific ports of the United States and its 
territories or possessions. For vessel operators with scheduled service 
between two Pacific ports or two Atlantic ports, the current tax 
treatment of non-diesel maritime fuels could disincentivize them from 
choosing cleaner alternative fuels.
  As the ranking member of Subcommittee on Coast Guard and Maritime 
Transportation from 2013 to 2018, I strongly support vessel operators' 
efforts to reduce greenhouse gas emissions from ocean-going vessels. 
Many operators are working to retrofit their vessels to reduce 
emissions or investing in new vessels powered by alternative fuels. 
Congress must support these critical investments to reduce greenhouse 
gas emissions from the maritime sector and minimize particulate 
pollution from vessels at our ports, which contribute to smog and is a 
major public health concern for communities near the waterfront.
  Our ``Maritime Fuel Tax Parity Act'' would amend the Internal Revenue 
Code to ensure that alternative fuels are afforded the same tax 
exemption as maritime diesel, even when used for voyages within a 
single ocean. I am encouraged by the investments underway by many ferry 
operators, the cruise industry, and other vessel operators in 
transitioning to cleaner fuels, particularly hydrogen, biofuels, and 
renewable natural gas. Our legislation would provide tax parity with 
maritime diesel to incentivize continued investment by industry.
  Madam Speaker, I encourage all members of the House to join us in 
cosponsoring the bipartisan ``Maritime Fuel Tax Parity Act.''

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