Proposed emissions rule would cap LA-LB port volumes

Southern California may create a regional port authority later this year, making the port authorities of Los Angeles and Long Beach irrelevant, if a proposed rulemaking by the South Coast Air Quality Management District (SCAQMD) is approved.

The SCAQMD, a regional air quality agency representing Los Angeles, Orange, Riverside and San Bernardino counties, hopes to enact a Port Indirect Source Rule (ISR) for the ports of Los Angeles and Long Beach by December 2023, a rule that would cap cargo volumes at the nation's busiest container gateway.

Despite the fact that all port operations-related emissions sources are currently regulated, either through international treaties, federal law, state regulations, port policies, tariffs and leases, the ISR attempts to create new jurisdictional power for a regional agency over mobile source emissions. Ironically, the ISR does not reduce emissions and the SCAQMD cannot directly regulate mobile sources. This power grab would extend the SCAQMD's regulatory authority beyond state, federal and international laws and regimes, would impede interstate and international commerce and would effectively shut down investment at the largest US port complex.

In addition, the ISR would extend the jurisdictional boundaries of emission reduction to 40 nautical miles for ocean vessels, the first place of rest for cargo moving by truck, and to Banning, Calif., for cargo moving by rail, all of which would become the responsibility of the port or terminal. Unlike the congestion caused by the massive growth in volumes during the COVID-19 pandemic, future supply chain congestion would result from environmental public policy.

Imagine a situation in which importers and exporters could not use marine terminals due to a cap on cargo volume. Given the uncertainty and confusion about whether the ports of Los Angeles and Long Beach would be "open for business" under this proposed rule, shippers would avoid the ports altogether and divert to other North American gateways, domestic and international. Ironically, multiple studies have shown that GHG emissions increase when cargo from the Far East moves through East and Gulf coast ports instead of landing on the West Coast.

Efforts in California have already resulted in impressive emissions reductions across all segments of the supply chain. As a result, California ports are the cleanest in the world.

The ports and private sector are experimenting with alternative fuels, battery electric and hydrogen equipment, and new operational standards. However, the Port ISR rule is doomed to fail, as it could harm California's GHG reduction efforts and drive imports and exports elsewhere.

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