Maritime Industry Supports AB 1250 (Papan) to Clarify Use of Alternative Fuels to Reduce the Carbon Intensity of Shipping in California Waters
February 25, 2025
Contact: Natasha Villa, External Affairs Manager
nvilla@pmsaship.com
OAKLAND, CA - The Pacific Merchant Shipping Association (PMSA) and its member companies support the introduction of AB 1250, by Assemblymember Diane Papan (D- San Mateo),which will provide legal certainty that vessels using alternative fuels necessary to meet global decarbonization goals are compliant with California’s existing regulations for ocean-going vessel fuel.
“Outdated regulations cannot stand in the way of cleaner fuels that will support our carbon reduction goals,” said Assemblymember Diane Papan. “Technology evolves quickly and we must adapt accordingly.”
AB 1250 clarifies existing law to keep California competitive for alternative-fueled vessels and aligned with global regulations. California’s current fuel regulations, adopted in 2008, if subject to a strict interpretation would allow vessels to use only petroleum-based marine diesel and gas fuels in California. However, since these rules were adopted, clean engine technology and alternative fuels have progressed towards decarbonization goals where the use of these new fuels will bothimprove air quality and reduce greenhouse gas emissions, gaining global adoption. While a strict interpretation would raise costs and forgo emissions benefits for California’s ports, a broader interpretation will result in cleaner air and more vessels doing business here.
“AB 1250 takes a small but important step toward transitioning the California economy and environment to the internationalcommitment to decarbonization of the maritime sector,” stated PMSA President Mike Jacob. “We look forward to working with Assemblymember Papan, the Legislature, and the Newsom administration to adopting an interpretation of the state’s vessel regulations so they are in keeping with both California’s climate goals and international standards.”
“Maersk is committed to leading the decarbonization of global supply chains, aiming for net-zero emissions by 2040. We have made significant progress in reducing emissions, from voluntarily switching to low-sulfur distillate fuel in 2006 to most recently launching the world’s first fleet of dual-fuel vessels capable of using reduced GHG emissions methanol” stated Saba Takidar of Maersk Sustainability. “We commend Assemblymember Papan for her leadership in advancing California’s sustainability goals through this bill clarifying the use of alternative fuels under CARB’s existing ocean-going vessel fuel rule.”
Alternative fuel ships have been increasingly coming into service in the maritime goods movement space and orders for alternative fuel ships are growing. Internationally, ocean carriers and ports around the globe have been updating vessels and infrastructure to support alternative fuels and green shipping options in recognition of International Maritime Organization (IMO) decarbonization efforts.
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About the Pacific Merchant Shipping Association (PMSA)
PMSA is an independent, not-for-profit association which represents owners and operators of marine terminals, ocean carriers, and vessels operating on the US West Coast. PMSA maintains offices in Oakland, Long Beach, and Seattle.
About Assemblymember Diane Papan
Diane Papan serves in the California State Assembly representing the 21st Assembly District which includes the entire Bayside of San Mateo County from Brisbane to East Palo Alto. In the Assembly, Papan serves as Chair of the Assembly Committee on Water, Parks & Wildlife. In the Assembly she is focusing much of her policy efforts to improve climate resilience, expand renewable energy options and protect California waterways.
About Maersk
A.P. Moller - Maersk is an integrated logistics company working to connect and simplify its customers’ supply chains. As a global leader in logistics services, the company operates in more than 130 countries and employs around 100,000 people. Maersk is aiming to reach net zero greenhouse gas (GHG) emissions by 2040 across the entire business with new technologies, new vessels, and reduced GHG emissions fuels. (Maersk defines reduced / lower GHG emissions fuels as fuels with at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil of 94 g CO2e/MJ)