In a legal tussle that's heating up, the U.S. Department of Justice has filed a motion in the Hawaii District Court to intervene in a lawsuit against Hawaii’s recently enacted Green Fee, as noted in reports by KHON2. The DOJ's motion stands squarely against the state of Hawaii's right to impose an 11% climate surcharge on cruise ship passengers, a fee designed to protect the state's endangered environment and generate about $100 million a year.
The federal government holds that the authority to regulate charges on vessels entering ports rests with Congress, not individual states. Mufi Hannemann, Hawaii Lodging & Tourism Association President & CEO, expressed the visitor industry's support for the Green Fee to KHON2, affirming that the fee addresses issues crucial to both tourists and residents. However, the cruise industry views the act as discriminatory, suggesting it could pile hundreds of dollars onto Hawaii cruise costs. Echoing concerns raised by the DOJ, the industry cautions that allowing the fee could prompt a splintering of state-level vessel taxation across the U.S., creating a complex landscape for maritime commerce.
Meanwhile, a more aggressive characterization of the Green Fee came from the Trump administration, which labeled it a "scheme to extort American citizens and businesses," as reported by E&E News. The current federal intervention in the case is part of a broader push back against state initiatives aimed at making the energy industry bear the cost of climate change adaptations.
The federal government, aligning with the Cruise Lines International Association that filed suit earlier, has invoked the Constitution’s Tonnage Clause and the Rivers and Harbors Appropriation Act of 1884, arguing that state-level taxes like Hawaii's could undermine the federal law. In a statement obtained by E&E News, the DOJ added its concerns that other states might follow suit, risking the "balkanization of maritime commerce" to push individual environmental policies. Hawaii has already attempted to get the cruise industry's lawsuit dismissed, claiming that the tax is a levy on short-term accommodations, not a charge related to maritime activities.
Attorney General Anne Lopez of Hawaii stands firm in defense of the Green Fee, with the state's Department of the Attorney General vowing to "vigorously defending the legality of Act 96 of 2025," as reported by KHON2. Legal experts like Michael Lurie, a partner at Reed Smith, have taken note of the DOJ's intervention, remarking on the rarity and directness of such an action, potentially hinting at a high chance that the motion to intervene will be granted by the court.
