A regulation implemented by the California Air Resources Board (CARB) requiring ocean-going vessels at California ports to use emissions-control strategies or pay into a remediation fund is imposing significant costs on consumers nationwide, according to U.S. Representative Vince Fong.
The "Vessels At-Berth" regulation, Fong argues, functions as a "hidden tax" on Americans who purchase groceries, fuel, and other goods shipped through California's major ports. Because these ports handle approximately 40% of the country's containerized imports, state-level mandates on docked vessels translate into national costs.
Shipping companies, faced with compliance costs or daily penalties of roughly $50,000 per vessel, are passing these expenses on to consumers. Fong contends that the compliance technology and infrastructure required are costly and not yet available at the scale needed, leaving companies with little choice but to absorb or pass on fees.
CARB's own analysis projected the shipping industry would incur approximately $2.3 billion in compliance costs through 2032. An analysis by the U.S. Environmental Protection Agency (EPA) reportedly confirmed that the regulation would increase shipping costs, strain port infrastructure, and exacerbate supply chain pressures nationwide.
This regulation is particularly concerning given California's current energy situation. Fong cited refinery closures that have reduced the state's refining capacity by nearly 20% and a general decline in in-state oil production, making California more reliant on fuel supplies delivered by ship. He argued that Governor Gavin Newsom's policies have contributed to this energy crisis, while new mandates like the "Vessels At-Berth" regulation further complicate fuel production and movement.
The EPA authorized California to expand this regulation in 2023 without submitting it for congressional review. Fong, in partnership with Senator Dan Sullivan, has introduced a Congressional Review Act (CRA) resolution aimed at overturning this authorization. He drew a parallel to a previous instance where Congress used the CRA to reject California's electric vehicle mandates, which he stated threatened consumers with infeasible technology and higher costs.
Fong asserts that an unelected state agency should not be able to impose nationwide costs through policies not debated or approved by Congress. He is advocating for transparency in policymaking and consideration of the financial impact on families, framing his fight as a defense against California's "hidden climate tax."