Lawmakers move to overturn strict vessel limits with billions at stake for shipping.
Lawmakers in the U.S. House of Representatives approved a resolution to overturn a federal waiver that allows California to regulate emissions from oceangoing ships docking at the state’s ports and impose costly fees on operators that don’t comply.
In a near party-line vote (216–211) on 15 September, the Republican-led chamber voted in favor of the resolution, known as a Congressional Review Act, introduced in August by Rep. Vince Fong, R-Calif. If passed by the Senate and signed by the President, it would nullify the waiver that went into effect in October 2023.
Approved by the Biden administration, the waiver gives the California Air Resources Board (CARB) the ability to impose strict emissions standards on at-berth containerships, reefers, roll-on/roll-off vessels, and tankers. CARB’s regulation requires vessel operators to cut diesel emissions by plugging into the electrical grid at berth, installing state-approved technology, or pay into a remediation fund. Ships that can’t comply face penalties of approximately $50,000 per vessel per day.
“The costs don’t stay with shipping companies – they ripple through the supply chain and ultimately reach American consumers,” Fong said in introducing the resolution. California’s finance department estimated the total compliance cost to vessel operators, ports, and terminals to be $2.3 billion through 2032, while cost savings – in the form of health benefits – were estimated at $2.64 billion.
Momentum for the resolution was likely boosted by soaring gas and diesel prices in California and throughout the country and was a common theme when the resolution was debated on the House floor before it was passed.
“I am supporting this resolution today for a simple reason, and that is that it will stop gas prices from getting even higher in California. We simply can’t afford it,” said Rep. Kevin Kiley, I-Calif. “Prices are approaching $6 [per gallon] on average statewide, far more than any other State. We have the highest cost of living in the country, and Californians cannot afford more to be piled on.”
The resolution was backed by the American Petroleum Institute, Western States Petroleum Association, and the National Association of Manufacturers. Seatrade Maritime News reached out to vessel operator representatives for comment.
Democrats, unsurprisingly, opposed the measure. “How is encouraging ships to burn more expensive diesel going to help the families across America struggling with Trump’s affordability crisis?” questioned Rep. Zoe Lofgren, D-Calif.
“The war of choice in Iran that the President initiated has caused prices to spike. The other day, I was driving by a gas station and saw diesel fuel at $8.99 a gallon. It is easier and cheaper for ships to plug in at the dock, and the only people who will benefit from this resolution are the oil and gas companies.”
