In what may be seen as a precursor to climate change regulations, last week the California Air Resources Board (CARB) approved new fuel quality regulations to reduce emissions from ocean-going vessels within 24 nautical miles of California’s coastline. The regulations will require both domestic and foreign flagged ocean-going vessels to use less polluting distillate fuel instead of heavy fuel oil. By 2012, CARB estimates that its regulations will result in a 83 percent reduction in particulate matter (PM), 95 percent reduction in sulfur oxides (SOx), and 6 percent reduction in nitrogen oxides (NOx). While the program will have a negligible impact on greenhouse gas emissions, the success of this program may influence future regulatory efforts to control such emissions from ocean-going vessels.

Notably, this is not the first time that California has sought to curb emissions from ocean-going vessels. In January 2007, CARB began enforcing its so-called Marine Vessel Rules to limit PM, SOx, and NOx emissions from auxiliary diesel engines. In February 2008, the Ninth Circuit Court of Appeals affirmed a district court ruling that the Marine Vessel Rules were preempted by the federal Clean Air Act. Accordingly, CARB has discontinued its enforcement of those rules. Undeterred, however, CARB approved the above “in-use operational requirements” - rather than emission standards - for ocean-going vessels. CARB asserts that, because its requirements do not set a numerical emissions limit, they are not preempted by the Clean Air Act.

Meanwhile, CARB is also preparing a state-wide plan to reduce greenhouse gas emissions in California. While CARB’s current plan does not include sweeping regulations for the shipping industry, depending on the success of the fuel quality regulation, California regulators might consider adopting new regulations to reduce greenhouse gas emissions from ocean-going ships. By some estimates, shipping is responsible for about two percent of worldwide CO₂ emissions. While the International Maritime Organization is currently developing a mandatory regime to control such emissions, there are currently no requirements for international shipping.

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