Congressman Bean Introduces Bill Removing Barriers to Alternative Marine Fuel Usage
WASHINGTON—Today, Ways and Means Committee member U.S. Congressman Aaron Bean (FL-04) along with Congressman John Rutherford (FL-05), Congressman Vern Buchanan (FL-16), Congressman John Garamendi (CA-08), and Congresswoman Jill Tokuda (HI-02) introduced the Maritime Fuel Tax Parity Act (MFTPA), to correct an outdated tax code provision by exempting alternative fuels, including liquefied natural gas (LNG), for marine vessels from paying Federal Highway Trust Fund excise taxes.
Upon introduction, Congressman Bean said: “Expanding the use of alternative fuels like LNG will strengthen Jacksonville’s maritime industry and allow maritime vessels to use LNG as a fuel source without being penalized by an onerous tax and compliance burden. I thank Congressman Rutherford for his leadership on this bill, which will modernize our tax code and bring marine fuels into the 21stcentury.”
“We should be encouraging, not penalizing, our maritime industry as they find alternative and innovative ways to power American vessels,” said Congressman Rutherford. “Jacksonville's maritime industry leaders made Northeast Florida home to the world’s very first liquified natural gas-powered containership. As the Trump Administration unleashes American energy and innovation, I am proud to join a bipartisan coalition to introduce this bill that would afford the U.S. maritime industry the freedom and parity to explore new energy opportunities to fuel American shipping and trade.”
“Florida’s ports play a vital role in fueling our economy, supporting tens of thousands of good-paying jobs and helping move goods across the globe. I’m proud to support this bill to protect our maritime and aviation industries from unnecessary tax burdens and strengthen trade between U.S. ports. With SeaPort Manatee in my district generating billions in annual economic impact for our region, this commonsense measure will keep Florida’s Gulf Coast competitive,” said Congressman Buchanan.
BACKGROUND
LNG is the cleanest, most readily available fuel for shipping today. Unfortunately, a discrepancy in the tax code unintentionally disincentivizes our domestic maritime carriers from utilizing LNG and other alternatives as a maritime fuel.
The current tax code treats diesel more favorably than alternative fuels, which are disadvantaged by being subjected to excise taxes. Diesel fuel used in maritime vessels is exempt from this excise tax today, but alternative fuels, like LNG, are not.
According to the International Energy Agency’s (IEA) January 2025 Quarterly Gas Report, based on the current order book for vessels, the number of LNG-fueled ships is expected to almost double and reach over 1,200 vessels by 2028.
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