On June 26, 2019, I presented before the Florida Bar Admiralty Law Committee my presentation titled “IMO2020 Enactment and Enforcement in the United States.” At that time, I predicted (which was admittedly a pretty easy prediction) that violations would result in criminal or civil liability. The Maritime Executive has now reported that Japanese shipping line Mitsui O.S.K. Lines (MOL) has agreed to pay a significant penalty for violations of California’s air quality regulations while docked in the Port of Oakland, California. Now while I recognize that the MOL case is a violation of state law and not directly related to the federal regulation, the point of my presentation is that enforcement of NOx and SOx regulations would begin increasing exponentially in 2020 in the U.S.
MOL has agreed to pay $253,300 in penalties to the California Air Resources Board (CARB) for violating the Ocean-Going Vessel At-Berth Regulation imposed by California. During 2017 and 2018, CARB reports that MOL’s Oakland fleet did not meet the three-hour diesel engine operational time limits. CARB says that the MOL ships failed to meet the requirement to reduce by 70 percent auxiliary engine power generation. The settlement will be paid to California’s Air Pollution Control Fund and MOL has agreed to comply with all applicable CARB regulations.
The regulations, which were phased in over time since 2007, requires vessels to reduce their diesel engine power generation while docked. The purpose of the regulations (as expressed by CARB) is to have vessels turn off their diesel engines and connect to grid-based shore power, or use alternative technologies to achieve equivalent emission reductions while in port. Approved alternatives to shore power include capture-and-control technology that employs a bonnet that contains and treats emissions from a ship’s stacks.
The CARB power reduction requirements were further increased from 70 to 80 percent in 2020. In addition, at the end of August, California adopted a new At-Berth Regulation that further increases the rules and adds additional categories of vessels to the restrictions. Starting in 2023, containerships, reefers and cruise ships covered by the current regulations, will transition to the new rules. In addition, ro-ro vehicle carriers and tankers docked at the ports of Long Beach and Los Angeles will be required to comply starting in 2025 and tankers docked in Northern California starting in 2027. Once fully implemented, the updated regulations are intended by CARB to deliver a 90 percent reduction in pollution.
Emissions regulations will continue to be at the forefront of U.S. and state government regulation. It behooves our industry to be sensitive to and aware of the ever-evolving landscape in this sphere. This includes having good policies and procedures in place regarding the various emissions regulations, proper and frequent training of shore-side and shipboard personnel on emissions requirements, management oversight and audits of shipboard operations and non-retaliation and open reporting policies for personnel on emissions issues.
If you are interested in receiving a copy of my Power Point presentation or wish to reach out to me, you may do so at blog@miamimaritimelaw.co or 305.377.3700.