The American Waterways Operators (AWO) is urging California Gov. Gavin Newsom to withdraw the 2022 amendments to the Commercial Harbor Craft (CHC) rule, arguing that the regulations place an unfair burden on the maritime industry while exempting other transportation sectors. In a letter sent on Jan. 30, AWO warned that the amendments will put vessel operators at a competitive disadvantage, threaten mariner safety, and negatively impact California’s economy.

On Jan. 13, the California Air Resources Board (CARB) withdrew its request to enforce emissions rules for the state’s truck and rail industries but kept them for harbor craft. In AWO’s letter, the organization contends that this selective enforcement unfairly singles out the maritime sector, which it says is already the most sustainable mode of freight transportation.

“I am writing to you with an urgent request to withdraw the 2022 amendments to the Commercial Harbor Craft (CHC) rule,” AWO president Jennifer Carpenter stated in the organization's letter to Newsom. “CARB’s stringent regulations will now apply only to harbor craft, which comprise the most sustainable mode of freight transportation, but not its two modal competitors.”

AWO highlighted the economic significance of California’s maritime industry, which it says supports more than 50,000 jobs and contributes over $12.2 billion to the state’s economy. The organization warned that the new CHC rule amendments would require vessel operators to install diesel particulate filters (DPFs) that are not certified for marine use, leading to high costs and significant safety risks.

“These amendments require the installation of diesel particulate filters (DPFs), among other requirements, onboard vessels even though no such technology certified as suitable for marine vessels currently exists,” AWO stated. “The U.S. Coast Guard (USCG) has expressed safety concerns over the installation of this technology, and CARB has failed to consider the repeated concerns about DPFs expressed by the USCG, vessel owners, and maritime labor unions.”

AWO pointed out that DPFs, which operate at high temperatures, have been known to catch fire on trucks. Such incidents on vessels would force crews to abandon ship, creating a severe safety hazard. Additionally, there are only five drydocks in California capable of handling retrofit work, which, combined with supply chain delays, would make compliance difficult. AWO estimates that vessel owners would need at least 18 additional months to retrofit their vessels, assuming they can afford the estimated $5 million per vessel cost.

“We are really prioritizing the DPF issue because it is so important to safety. That is why we are focused on working with the (California) legislature to not abolish the DPF requirement but make sure that there are safeguards before it's implemented,” Carpenter told WorkBoat in September 2023.

The Coast Guard echoed concerns regarding the feasibility of transitioning vessels to Tier 4 engines and DPFs. Capt. Gregory Callaghan wrote to CARB, stating, “While there are no federal regulations prohibiting using a Tier 4 engine and DPF, practicality has to be considered.”

In response, CARB defended the amendments, citing public health benefits. “CARB staff estimates that just over 10% (368 out of 3,159 vessels) of the statewide population would need to be replaced in response to the Proposed Amendments. Additionally, the overall costs of the Proposed Amendments are $2 billion between 2023 and 2038, whereas the monetized health benefits from reduced emissions are more than $5 billion for the same time period.”

Carpenter also addressed supply chain concerns, warning that vessel owners who cannot comply may leave California’s waters.

“This could be done in an orderly way. But the state is saying, ‘We’ve got to do this by X date, technology and safety be darned.’ And the owner says, ‘If I can't do it, I can't do it. Now I’ve got this multimillion-dollar asset that I can't use in state waters. Maybe I need to go work elsewhere,’” Carpenter said.

She called for collaboration between industry stakeholders and regulators to devise a practical solution. “What the industry is asking for is not, ‘do nothing, leave us alone,’ but rather, ‘let us work with you to devise an approach that works from a safety standpoint and that reduces emissions in a meaningful way.’ We share that goal. We can get there together.”

Carpenter pointed to the industry’s history of successful regulatory transitions, such as Subchapter M and the shift from single to double-hulled vessels.

“This is an industry that's willing to put its money where its mouth is and make big changes. We want to be part of the process, and we want to do it right,” Carpenter said. “CARB has gone through the motions of public participation, but they haven't engaged or wrestled deeply with the serious concerns that have been brought forth. My concern is by not doing that they're going to be in a worse place. It always takes less time in the end to do it right the first time. This is a self-inflicted wound that we're facing here.”

AWO urged Newsom to work with the organization to develop a sustainable approach to emissions regulation that aligns with policies for other transportation modes while ensuring maritime safety and economic stability.

“We respectfully ask for the opportunity to work directly with your office to achieve sustainable goals for the maritime sector that are consistent with current regulations for other modes, do not risk another supply chain crisis, and do not compromise the safety of California mariners or the environment,” the letter said.

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