A California Republican congressman is spearheading legislation aimed at overturning an environmental regulation that he contends functions as a "hidden climate tax" on American consumers. Representative Vince Fong, R-Calif., is advocating for the repeal of a Biden administration-era rule that allows California to impose significant penalties on shipping vessels docked in its ports.
Fong stated that the costs associated with this regulation are passed on to consumers, affecting goods that pass through California's ports, which handle over 40% of all shipping containers entering the United States. The legislation targets the Environmental Protection Agency's (EPA) authorization for California to enforce the "Vessel At Berth" regulation. This rule, granted under Gov. Gavin Newsom, requires many large vessels to shut off their diesel engines when docked and use an approved emissions strategy, or face potentially substantial daily penalties.
Fong argues that the current infrastructure is insufficient to ensure universal compliance, leading shipping companies to incur penalties. He explained that these penalties impact a wide range of products, from Amazon orders and small business inventory to gasoline and grocery supplies, as these items often travel through the affected ports. The increased costs within the transportation and shipping network, he said, create ripple effects throughout the entire supply chain.
This push comes at a time when the cost of living is a significant concern for Americans, particularly with upcoming elections. Fong warned that if California's mandate is not rolled back, it could set a precedent for other states to seek similar EPA permissions, potentially leading to a widespread increase in such regulations.
"You have shipping companies that have paid hundreds of millions of dollars in penalties, if you aggregate it all. And as this goes on, this could ripple throughout the United States," Fong said. "You have other states now that are looking at California and say, well, if they're gonna do it, we might do it too. So this could grow exponentially."
A Senate companion bill has been introduced by Sen. Dan Sullivan, R-Alaska, who echoed Fong's concerns, stating that families in his state are impacted by California's mandates.
The Port of Los Angeles and the Port of Long Beach are consistently ranked as the busiest ports in the U.S.
