119-s692

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 692 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 692

 To amend the Internal Revenue Code of 1986 to modify the clean fuel 
 production credit to provide a special rate for sustainable vessel 
 fuel.

_______________________________________________________________________

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Sustainable Vessel Fuel Act''.

SEC. 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.
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