119-S692

Bill is currently in: Senate
Path to Law
House Senate President

119th CONGRESS

1st Session

S. 692

1. Short title
2. Special rate under clean fuel production credit 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) Sustainable vessel fuel - 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.