The California Air Resources Board (CARB) recently granted waivers to the state’s truck and railroad industries, exempting them from certain emissions regulations due to concerns over the high costs of transitioning to electric vehicles. However, CARB’s 2022 amendments to the Commercial Harbor Craft Rule remain in effect, imposing stringent requirements on the maritime industry. This disparity has prompted Jennifer Carpenter, President and CEO of the American Waterways Operators (AWO), to appeal to Governor Gavin Newsom for intervention.
In her letter, Carpenter highlighted the maritime sector’s efficiency and environmental benefits, noting that it moves over 665 million tons of cargo annually while emitting 43% less greenhouse gases than rail and 832% less than trucks — the very sectors now exempt from the latest CARB regulations. She emphasized that AWO members employ over 50,000 Californians and contribute more than $12.2 billion to the state’s economy. Despite these advantages, the maritime industry faces stringent regulations that could undermine its operations.
One significant concern is the mandate for vessels to install diesel particulate filters (DPFs). Carpenter pointed out that DPFs have a history of catching fire on trucks due to extremely high temperatures, posing a severe risk if such incidents occur on vessels, where crews might be forced to abandon ship. Additionally, the policy requires new vessels to accommodate DPFs, even though the technology is not yet available for maritime applications. Existing vessels are also mandated to undergo costly retrofits, with estimates reaching $5 million per vessel — a financial burden that could be insurmountable for smaller operators.
The limited availability of facilities capable of performing these retrofits exacerbates the issue. Currently, only five drydocks in California can handle such modifications, leading to extended service downtimes and potential disruptions in the supply chain. A recent survey by the Pacific Merchant Shipping Association has already reported an exodus of harbor craft since the regulations were adopted, resulting in a shortage of ship-assist tugboats necessary for the safe and efficient operation of deep-draft vessels. This shortage threatens to create cascading problems for California’s supply chain.
The situation raises critical questions about the balance between environmental objectives and economic realities. While the intent behind CARB’s regulations is to reduce emissions and promote cleaner technologies, the uneven application across industries and the potential risks associated with current mandates warrant careful reconsideration. The maritime industry, given its efficiency and lower emissions profile, seeks equitable treatment that acknowledges its contributions to both the economy and environmental sustainability.
As the dialogue between industry leaders and policymakers continues, the focus remains on finding solutions that achieve environmental goals without compromising the viability of essential industries. The outcome of this debate will have significant implications not only for the maritime sector but also for the broader framework of environmental regulation and economic policy in California.
For more information about CARB, visit https://ww2.arb.ca.gov/.
