December, 2024 - Expansion of Californian emissions regulation

Overview

The Ocean-Going Vessels At Berth Regulation, 2020 (the “2020 Regulation”), implemented by the California Air Resources Board (“CARB”), aims to significantly cut emissions from ocean-going ships while they are docked at California ports and terminals.

The 2020 Regulation has been in force since January, 2021 (a 2007 Regulation was in place beforehand), and already includes container, reefer and cruise ships (for visits to all regulated terminals), but from 1st January 2025, it will include both roll-on-roll-off ships (again, for all regulated terminals) and tankers (for visits to regulated terminals at the Port of Los Angeles or Port of Long Beach, but from 1st January, 2027, this will be expanded to include tanker visits to all regulated terminals).

Compliance

This means that each ship visit to a regulated California port or marine terminate must use a CARB Approved Emission Control Strategy (“CAECS”) to control emissions for the duration of the visit (unless an exception applies or an alternative compliance option is used). While at berth, all auxiliary engines and tanker auxiliary boilers will need to be controlled.

Potential CAECS technologies can include, but are not limited to, capture and control systems, batteries, fuel cells, alternative fuels, etc. However, shore power is considered the “gold standard” in reducing emissions from ocean-going vessels in California and does not require any additional CARB approval to use for compliance with the 2020 Regulation. This will involve ships connecting to shore power or another approved CAECS within two hours after “Ready to Work”, and cease controlling emissions no earlier than one hour before “Pilot on Board”.

Bulk carriers and general cargo ships do not have to comply with the 2020 Regulation, but since 1st January, 2023, are subject to certain visit reporting requirements and must comply with opacity requirements (i.e. designed to limit the amount of visible emissions).

The 2020 Regulation applies to ship and terminal operators, ports and CAECS operators, who are responsible for reporting visit information for each visit made by a regulated ship to a regulated marine terminal.

Penalties

CARB follows a specific enforcement policy for any violations of the 2020 Regulation. If a company is deemed to be in breach, CARB’s Enforcement Division may issue a Notice of Violation. CARB may then issue penalties designed to remove any economic benefit obtained and to deter against future violations. Ultimately, the penalty should not exceed USD 37,500 for “each action”, though the maximum penalty can increase each year. Moreover, each calendar day, or portion thereof, in which violations occur will be considered to be a separate violation.

Further details can be found at the CARB’s website: Ocean-Going Vessels At Berth Regulation | California Air Resources Board.

As always, if Members have any questions in relation to the above issues they are invited to contact the Club for further information.