California shipping rule under Newsom draws national cost concerns

Shipping rules raise questions about costs

California adopted its current Ocean-Going Vessels At-Berth Regulation in 2020, during Gavin Newsom’s tenure as governor. The California Air Resources Board approved the regulation as part of the state’s effort to reduce emissions from ships while they are docked at regulated terminals.

The rule expanded an earlier California program and added requirements for more vessel categories. It is now facing renewed federal attention after EPA transmitted its 2023 authorization decision for the At-Berth Regulation to Congress in July 2026.

How the At-Berth rule works

The At-Berth Regulation requires covered vessel visits to use approved emission-control methods at regulated terminals. Shore power is one option because vessels can connect to electricity and reduce use of auxiliary diesel engines.

The regulation also allows approved alternatives when shore power is not used. CARB maintains records of approved technologies, including systems that capture or control vessel exhaust emissions.

The rule has roots in 2007

California’s current program grew from an earlier At-Berth rule adopted in 2007. The original requirements focused on container ships, refrigerated-cargo vessels, and cruise ships at selected California ports.

The 2020 regulation expanded the program to additional vessel categories and terminals. Its purpose is to reduce nitrogen oxides, diesel particulate matter, particulate matter, and other pollutants associated with ships operating engines while docked.

Compliance has been phased in

The 2020 regulation uses a phased implementation schedule for covered vessel categories. Container, refrigerated-cargo, and cruise vessels entered the updated program in 2023, while roll-on/roll-off vessels followed in 2025.

Tanker requirements were also phased by location. Tankers calling at the Ports of Los Angeles and Long Beach entered requirements in 2025, while remaining tanker requirements are scheduled for 2027.

Shore power is a key option

Shore power is a central compliance method under California’s At-Berth Regulation. A vessel using shore power connects to the terminal’s electrical system and can shut down qualifying auxiliary engines while it remains connected.

This approach shifts onboard electricity use to the shore-based grid during the regulated period. The regulation also recognizes alternative control systems, giving operators more than one compliance method.

California estimated billions in costs and benefits

CARB estimated substantial costs when it evaluated the 2020 regulation before adoption. Its 2020 fact sheet placed the proposed regulation’s cost at $2.23 billion and valued avoided adverse health outcomes at $2.32 billion.

Those figures were estimates used during California’s rulemaking process. They are projected costs and estimated benefits, not final amounts already paid or measured nationwide.

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Shipping companies face enforcement

The regulation has produced continuing compliance activity at California ports. CARB has published enforcement actions involving vessels that did not meet applicable requirements under the At-Berth program.

One notable case involved ZIM Integrated Shipping Services, which agreed in 2025 to a $12.5 million settlement with CARB. The agency said the settlement addressed alleged violations involving required power reductions and operational limits.

Interesting fact: California has one of the longest coastlines in the United States.

EPA raises national cost concerns

The federal dispute intensified on July 22, 2026, when EPA transmitted its 2023 authorization decision for California’s At-Berth Regulation to Congress. EPA said the submission fulfilled what it considers a statutory obligation under the Congressional Review Act.

EPA also said California’s maritime standards can raise industry costs and create broader supply-chain pressures. Those statements describe EPA’s position and should not be treated as independently established economic findings.

Major California ports are affected

California’s At-Berth program affects major U.S. maritime gateways because several large ports operate under the state’s regulatory framework. The Ports of Los Angeles and Long Beach are among the locations covered by the vessel requirements.

The regulation affects shipping companies, terminal operators, and vessels calling at regulated California facilities. Compliance planning can involve electrical connections, vessel equipment, emissions-control technology, recordkeeping, and operating procedures.

Technology options continue to expand

CARB’s program has continued to develop as companies use different technologies to meet its requirements. Approved approaches can include shore power and systems designed to capture emissions from vessel exhaust while ships are at berth.

California has also published technical information and approval records for emissions-control technologies. These materials show that compliance is not limited to one technology, but each approach must satisfy applicable requirements.

The rule remains active during federal review

The federal review did not automatically stop California’s At-Berth Regulation on July 22, 2026. CARB continues to list the 2020 regulation as an active program, with requirements applying according to vessel type and location.

The next major scheduled expansion concerns tanker vessels at remaining regulated California terminals. CARB’s current materials identify January 1, 2027 as the compliance date for those remaining tanker requirements.

Congress now has a role in the dispute

The Congressional Review Act process is now part of the federal dispute surrounding California’s At-Berth Regulation. After EPA transmitted its 2023 authorization decision to Congress in July 2026, lawmakers introduced resolutions on August 6 seeking to overturn that federal authorization.

S.J.Res. 209 in the Senate and H.J.Res. 210 in the House would disapprove EPA’s At-Berth decision. As of August 18, 2026, neither resolution has become law, and California continues to enforce its current At-Berth requirements.

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The next California deadline is 2027

California’s At-Berth Regulation combines emissions controls, phased deadlines, technology requirements, and enforcement for covered vessels. The federal government’s July 2026 action, followed by congressional resolutions introduced in August, has added a national dispute over the regulation and its economic effects.

CARB continues to administer the regulation, while EPA granted federal authorization for the 2020 amendments in 2023. EPA transmitted that authorization decision to Congress in July 2026, and lawmakers introduced resolutions seeking to overturn it on August 6.

The next scheduled California compliance deadline is January 1, 2027, when tanker requirements expand to all remaining regulated terminals.

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What do you think about California’s shipping rules and their potential impact on costs and supply chains? Like this post, share your thoughts in the comments, and let us know where you stand.

This slideshow was made with AI assistance and human editing.

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