II 

118TH CONGRESS 

1ST SESSION S. 3002 

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 

SEPTEMBER 29 (legislative day, SEPTEMBER 22), 2023 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sustainable Vessel 

5 Fuel Act’’. 

6 SEC. 2. SPECIAL RATE UNDER CLEAN FUEL PRODUCTION 

7 CREDIT FOR SUSTAINABLE VESSEL FUEL. 

8 (a) IN GENERAL.—Section 45Z(a)(3) of the Internal 

9 Revenue Code of 1986 is amended— 


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1 (1) in the heading, by inserting ‘‘AND SUSTAIN2 ABLE VESSEL FUEL’’ after ‘‘SUSTAINABLE AVIATION

3 FUEL’’, 

4 (2) in subparagraph (A), by inserting ‘‘or sus5 tainable vessel fuel’’ after ‘‘sustainable aviation 

6 fuel’’, and 

7 (3) in subparagraph (B), by striking ‘‘this sub8 paragraph (A)’’ and inserting ‘‘this section’’. 

9 (b) INCLUSION AS TRANSPORTATION FUEL.—Section 

10 45Z(d)(5) of the Internal Revenue Code of 1986 is amend11 ed— 

12 (1) by redesignating subparagraph (B) as sub13 paragraph (C), and 

14 (2) by inserting after subparagraph (A) the fol15 lowing new subparagraph: 

16 ‘‘(B) SUSTAINABLE VESSEL FUEL.— 

17 ‘‘(i) IN GENERAL.—The term ‘trans18 portation fuel’ shall include sustainable 

19 vessel fuel which satisfies the requirement 

20 under subparagraph (A)(iii). 

21 ‘‘(ii) DEFINITION.—The term ‘sus22 tainable vessel fuel’ means liquid fuel 

23 which— 

24 ‘‘(I) is suitable for use as a fuel 

25 in a commercial vessel or ferry (as 


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1 such terms are defined in section 

2 4462(a)(4)) and is sold for such use, 

3 ‘‘(II) is not derived from palm 

4 fatty acid distillates or petroleum, 

5 ‘‘(III) as determined pursuant to 

6 subsection (b)(1), has an emissions 

7 rate of zero, and 

8 ‘‘(IV) satisfies the requirements 

9 of any standards which have been 

10 identified by the Secretary pursuant 

11 to clause (iii). 

12 ‘‘(iii) STANDARDS.—The Secretary 

13 shall identify any standards as are estab14 lished by the American Society for Testing 

15 and Materials (or similar standards organi16 zation) with respect to liquid fuel described 

17 in subclauses (I) through (III) of clause 

18 (ii) which the Secretary determines appro19 priate to carry out the purposes of this 

20 subparagraph.’’. 

21 (c) TERMINATION.—Section 45Z(g) of the Internal 

22 Revenue Code of 1986 is amended by inserting ‘‘(or, in 

23 the case of transportation fuel which is sustainable vessel 

24 fuel, December 31, 2034)’’ after ‘‘December 31, 2027’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to fuel produced after December 

3 31, 2023. 

Æ 


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