Port Indirect Source Rule

Newsletter 5

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.

Working Group Community Meetings

The SCAQMD hosted a second working group community meeting to discuss the proposed Indirect Source Rule for Commercial Ports. The working group was held in-person at the Port of Long Beach and took place on Thursday, February 22nd. The meeting had full attendance with a range of key industry stakeholders. Some of the stakeholders in attendance were PMSA, ocean carriers, terminal operators, representatives from both ports, ILWU labor and environmental justice groups.

While these meetings were intended to be technical discussions, they instead focused on the different mechanisms that SCAQMD is exploring to accomplish emission reductions in the South Coast Air Basin. SCAQMD focused this meeting on strategies for reducing emissions from ocean-going vessels and cargo-handling equipment.

Additionally, SCAQMD hosted a third working group community meeting to discuss the additional sources that contribute to the ports ISR emissions reductions on Wednesday, February 28th. Similarly to the previous one, this meeting had full attendance with a range of the same key industry stakeholders.

The meeting focused on the different mechanisms that SCAQMD is exploring to accomplish emission reductions in the South Coast Air Basin. Stakeholders voiced their concerns and countered SCAQMD’s staff with facts. Industry members reiterated that the ports could be pursuant to double compliance with multiple regulatory rules such as the Railway and Warehouse ISRs.

Furthermore, stakeholders focused on the vast need for infrastructure investment and improvement to meet these potential standards. A large part of the conversation focused on the role of zero-emission trucks and the Advanced Clean Fleet (ACF) ruling as well as possibly incentivizing marine terminal operators to prioritize zero-emission technologies. Lastly, key stakeholders questioned SCAQMD staff about the uses of funds and potential fees the District will collect from an ISR. They could not receive a straight answer as to who would receive the money or how the funds would be spent.

SCAQMD staff will hold an additional working group to discuss the implications of harbor craft. The meeting details are pending.

OP-ED: A Different Way Forward

By Thomas Jelenić, Vice President, PMSA

An interesting thing happened this month. As many know, PMSA is strongly opposed to the adoption of a port indirect source rule (ISR) the South Coast Air Quality Management District (SCAQMD). PMSA believes that an ISR will not result in real, quantifiable, and surplus emission reductions from port-related sources.

The simple fact is that the California Air Resources Board has already regulated ships, locomotives, harbor craft, trucks, and cargo-handling equipment. One (of many) concerns that PMSA has is that no one has been able to articulate what the emissions benefit would be from the draconian ISR. The last proposal put on the table by SCAQMD staff would effectively cap cargo through San Pedro Bay ports crippling the nation’s most important international gateway. While there have been claims that an ISR would not cap cargo volumes, no alternate concept has been placed on the table. Nonetheless, SCAQMD is moving forward with proposed adoption of the port ISR scheduled for fourth quarter of this year.

That makes what happened all the more remarkable. A delegation of senior representatives of SCAQMD, Port of Los Angeles, Port of Long Beach, ILWU, Sierra Club, Pacific Environment, and PMSA arrived in Washington, D.C. in early February to jointly advocate for federal funding to flow to the nation’s largest international gateway to fund technology and infrastructure to reduce port-related emissions. Whether before congressional representatives or federal agencies, it did not go unnoticed that groups that are often diametrically opposed to each other were presenting a unified front to emphasize the importance for federal action.

And “federal action” was the common theme of this trip. It has become clear that if the Southern California region is going to meet its federal air quality mandates, it will need federal action in the form of funding and new regulation. Without federal or international action to control emissions from ships, aircraft, and locomotives, the only way that the region could reach attainment is by crippling our local economy and destroying tens of thousands of jobs.

Simply put, the federally established emissions standards for these sources are not stringent enough to meet local air quality goals. Ultimately, that is why the ISR will function like a cap on cargo throughput. Instead of new emissions standards, it must limit activity through reduced economic activity. In that way, our entire region loses.

This issue is particularly important now with the pending disapproval by USEPA of the State Implementation Plan for ozone. That disapproval is driven by USEPA’s rejection of any responsibility to reduce emissions from planes, trains, and ships. Commonly referred to as “federal sources”; planes, trains, and ships are under the jurisdiction of the federal government. As a result, USEPA is solely responsible for setting emissions standards for these sources. Without federal action, our region will end up with the perverse outcome of being penalized for USEPA’s failure to act. So, unless the federal government or the International Maritime Organization adopts new emissions standards or Congress updates the Clean Air Act to not penalize local regions for the failure of federal action, Southern California will be punished despite having the most aggressive regulations in the world.

But there is another way. Our region, as represented by elected officials, regulators, labor, business representatives, environmental advocates, and community members should continue to cooperatively make federal and international action our common call. When acting collectively, our region’s voice can be extraordinarily strong. Even with the “once in a lifetime” funding made available through the Inflation Reduction Act, billions of dollars more in funding will be necessary to improve our infrastructure and deploy zero-emissions technology. That should be coupled with collective advocacy for more stringent federal or international emissions standards of “federal sources”. Whether through strength of argument or embarrassing the federal government in its failure to act, our region should join hands to force federal action. The assembly of the groups as diverse as these that descended on Washington, D.C. earlier this month was a good start.

Let’s Get Social:

With your help, we were successful in pressuring the SCAQMD to delay publication of a draft rule and, ultimately, a Board vote on a Ports ISR. But we need your ongoing support. 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 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

If you know of anyone who should be added to this newsletter, please have them reach out to Natasha Villa at nvilla@pmsaship.com.