Cruise Lines Challenge Hawaii’s ‘Green Fee’ as Unconstitutional

Hawaii’s “Green Fee”—a surcharge imposed on cruise lines to fund green projects in the state—is unconstitutional, according to a new federal lawsuit from groups representing the companies.

The 11% surcharge violates the US Constitution’s Tonnage Clause, which prohibits states from imposing taxes on vessels for entering and docking at ports, the groups told the US District Court for the District of Hawaii Wednesday.

Hawaii also unconstitutionally allows its counties to levy their own 3% surcharge over and above what the state charges, prorated depending on the length of the vessels’ stay, the complaint said.

Act 96, which takes effect next ...