Newsom’s Veto Threatens Marine Safety, California’s Commerce

California Gov. Gavin Newsom defied a near-unanimous bipartisan majority in his state’ s legislature, as well as his state’s labor unions, to veto AB 1122, a prudent and reasonable fix to a draconian diesel particulate filter (DPF) mandate for marine engines. Without that bill, the rule by the California Air Resources Board threatens to drive commercial harbor craft out of California’s waters when it takes effect in December. When CARB  refused to listen to industry facts and objections, maritime advocates went to legislators instead, who found those facts persuasive.

The maritime industry’s dispute with CARB’s rule is not about its goal. Everyone supports reasonable, doable measures to reduce emissions. We all want to breathe cleaner air. The dispute is about the timing and safety of the journey toward that goal.

Newsom apparently listened to environmental activists who complained in several publications that “innovation was lacking” in marine engines. CARB’s answer was to use the stick of mandates and to ignore contrary facts to meet an emissions deadline it set for itself.

Innovation is indeed happening in the marine space. This is shown by the recent voyage up the Hudson River of the converted tug Kraken, a tug built in 1957 whose propulsion was converted to emissions-free ammonia-to-hydrogen by Amogy. In January 2024, Crowley Maritime Corporation accepted delivery of eWolf, the first all-electric, ship assist harbor tugboat in the U.S., which it called “a milestone advancing the company’s commitment to sustainability and decarbonization.” The tugboat will operate with zero emissions while providing the complete performance capabilities of a traditional tug.

But innovation has to happen for the entire sector, not just California. CARB’s reputation as a pace-setter in air quality regulation comes from the waiver it received from the Clean Air Act in 1963 that allows it to set stricter air standards that those required by the federal Environmental Protection Agency. But in the case of the harbor craft rules, CARB’s desire to be out in front isolates the state and its marine engine market.

It’s not a question of money alone. The grant and incentive programs CARB lists for marine operators to help them upgrade or repower their Tier II or Tier III engines are of no help here. The issue is that the Coast Guard has said it will not certify or approve marine DPFs. Marine DPFs don’t even exist yet. Marine vessel operators who modify an engine without the Coast Guard’s approval lose their marine insurance, without which they cannot  operate. The Coast Guard says it’s up to engine manufacturers to develop and test them.

But there are only about 8,300 commercial marine diesel engines operating in California waters. This is a tiny niche market compared to the 15.9 million licensed commercial trucks in the state, which were forced to adopt DPFs beginning in 2008 (and experienced much trouble in doing so). What engine maker will spend tens of millions of dollars researching, testing and developing a device that only 8,300 engines will use—and that may soon be superseded by newer technology, such as Amogy’s ammonia-to-hydrogen retrofits or all-electric tugs?

Coast Guard and CARB members have both emphasized the cordial conversations they have had. Niceties aside, though, CARB’s DPF rule raises a substantive question about federalism. At what point does CARB’s recognized authority to regulate emissions, including on the waterways, infringe on the Coast Guard’s sole authority to regulate marine commerce and the safety of marine engines? None of the parties involved want to talk about this issue. But that doesn’t mean it’s not out there.

We all agree we want a future with fewer or no emissions. But it won’t happen on CARB’s unachievable timelines. Forcing commercial marine harbor craft off the waters until it does is not the answer. CARB and Newsom are not only threatening the entire commercial marine sector in their state. They are penalizing consumers both in California and the rest of the country with more logistics snarls if diesel-powered tugs can no longer dock container vessels. Their short-sighted action won’t speed up the innovation that is already happening.