Port Indirect Source Rule
Newsletter 4
Dear Friend:
This newsletter is distributed to those groups and individuals who have expressed interest and/or concerns about the Ports ISR to be updated on key developments. As a complement to this newsletter, we have also launched the website NoPortISR.com as an additional avenue to keep the public informed about Port ISR issues. We hope to see you online soon. Below, find the fourth Ports Indirect Source Rule (ISR) newsletter.
Center for Maritime Strategy National Security Piece
On December 27, the Center for Maritime Strategy published, Clear & Predictable Capacity Caps At America’s Seaports Need Addressing For Commercial & Security Reasons.
Senior Fellow John D. McCowan highlights concerns regarding the effects of regulatory actions by agencies like SCAQMD on California ports. Proposed regulations, such as Rule 2304, aim to establish emissions caps at ports and terminals. However, analysis suggests these caps may lead to reduced container volumes and hinder growth, causing congestion similar to that experienced during the pandemic.
The article argues that local regulations could have significant economic consequences without clear environmental benefits. It advocates for broader, national-level interventions, suggesting federal oversight through agencies like the Maritime Administration. Additionally, it warns of potential national security risks if California ports face congestion, especially during critical events like a potential military conflict involving China and Taiwan. The piece emphasizes the necessity of a comprehensive national port strategy.
Dan Walters CalMatters Article
On Sunday, January 7, CalMatters published an article, How California’s vital twin ports could become uncompetitive in cutthroat global trade. Despite the Ports of Los Angeles and Long Beach handling 40% of the nation’s maritime trade and supporting hundreds of thousands of jobs, the piece warns that San Pedro Bay could eventually lose its competitive edge in an ever-changing landscape.
The article highlights the immense growth of our state and nation’s logistics sectors and the supply chain’s importance to our economy. Between 1980 and 2022, the Port of Los Angeles saw a 20-fold increase in container traffic, growing from 500,000 TEUs to nearly 10 million TEUs. The Port of Long Beach experienced virtually identical growth.
According to a 2017 study by the Los Angeles County Economic Development Corporation, the loading, unloading, transportation, and storage of this cargo created approximately 600,000 jobs and nearly as many more in related sectors.
As the piece concludes, “It’s high time for California’s political leaders, including Gov. Gavin Newsom, to stop taking the twin ports for granted and help them maintain their strategic importance to the region, the state, and even the nation.”
In December, a letter, signed by more than 165 agricultural groups, was submitted to Governor Newsom’s office from the Sustainability Coalition.
While acknowledging progress in air quality improvements, the letter stresses that immediate zero-emissions goals are unachievable due to real-world constraints and utility limitations. The coalition urges the government to provide financial support and collaborate with supply chain stakeholders to address these challenges. Successful implementation is seen as crucial for cleaner air, improved investments, and reducing uncertainties for businesses and workers. The letter emphasizes the need for prompt action and collaboration to ensure a sustainable future for all involved parties.
South Coast Air Quality Management District (SCAQMD) Upcoming Meetings
Mobile Source Committee Meeting
The SCAQMD is hosting its monthly Mobile Source Committee on January 19th at 9:00 a.m. Before the holidays, SCAQMD staff stated the proposed Indirect Source Rule would be discussed at January’s Mobile Source meeting. The hybrid format allows attendees to submit and provide public comments both virtually and in person.
Working Group Meeting
The SCAQMD is hosting a working group community meeting to discuss the proposed Indirect Source Rule for Commercial Marine Ports. The virtual meeting will take place on Thursday, January 25th at 1:00 p.m. The purpose of this meeting is to discuss the background, intent, and current status of the proposed indirect source rule with engaged stakeholders. Furthermore, the meetings serve as a platform for community members and affected individuals to provide public comments, ideas, and suggestions to the SCAQMD staff.
Let’s Get Social:
We need your help in order to continue to educate the SCAQMD Staff and Board regarding the negative impacts of the Port ISR. Below are a couple of posts that we would like you to share on your social media platforms. Remember to use the #NoCargoCap and #NoPortsISR hashtags so we can track all published posts.
The economic significance of @PortofLA and @PortofLongBeach extends beyond California—it's crucial for the nation. The San Pedro Bay ports sustains numerous local jobs and generates billions in tax revenue. Rather than restricting port activities, prioritizing investments in innovative technologies and solutions is key to sustainable progress. #NoPortsISR #NoCargoCap
Collaboration is crucial in steering progress. Instead of enforcing an indirect source rule, @SouthCoastAQMD regulators should engage with stakeholders to ensure environmental gains without jeopardizing jobs or economic growth. #NoCargoCap #NoPortsISR
This recent piece by CalMatters summed it up perfectly:
“It’s high time for California’s political leaders, including Gov. Gavin Newsom, to stop taking the twin ports for granted and help them maintain their strategic importance to the region, the state, and even the nation.” #NoPortsISR #NoCargoCap https://calmatters.org/commentary/2024/01/california-ports-cutthroat-global-trade/
If you know of anyone who should be added to this newsletter, please have them reach out to Natasha Villa at nvilla@pmsaship.com.