The hidden tax California imposes on the rest of the country

When Americans buy groceries, fill up their cars or purchase goods shipped through California’s ports, they are paying for a climate mandate they never voted for, imposed by an unelected agency in California.That agency is the California Air Resources Board (CARB), which instituted the “Vessels At-Berth” regulation that is raising prices across the country by imposing new compliance costs on shipping and petroleum movements through California. Right now, California is in a self-imposed energy crisis.Gov.

Gavin Newsom’s policies have systematically dismantled the state’s energy infrastructure, placing our fuel supply under immense strain.Californians already pay some of the highest gasoline prices in the nation, over $1.50 more per gallon than the national average. Two major refinery closures in the past year removed nearly 20% of California’s refining capacity.

In-state oil production has been crushed, making California reliant on fuel supplies by ship.Rather than address the policies contributing to this self-inflicted energy crisis, Sacramento continues adding new mandates that make it harder and more expensive to produce and move fuel in our state.

The Vessels At-Berth regulation is yet another example.Under CARB’s regulation, ocean-going vessels at California ports must use CARB-approved emissions-control strategies or technologies, or pay into a state remediation fund.Ships that fail to comply face penalties of roughly $50,000 per vessel per day which can amount to millions of dollars. Even if ships want to abide, there is a glaring problem: The infrastructure and technology needed to comply is extremely costly and does not yet exist at the scale the mandate demands. That leaves shipping companies facing a comply-or-pay regime that adds enormous costs and uncertainty to the movement of American goods.

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