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California’s invisible ‘port tax’ is costing every American

The ships idling off the California coast aren’t just waiting for a dock—they’re waiting on government policy. The cost of these delays is embedded into every American taxpayer’s bill, as products needed for basic utilities and everyday groceries take longer and cost more to reach American households.

And the worst part? Those delays are entirely avoidable. They only exist because of a flawed Californian rule which Congress could strike down tomorrow.

Congress should use the Congressional Review Act to overturn the Environmental Protection Agency’s (EPA) waiver for the “Vessels At-Berth” rule. The rule requires incoming ships to shut off their diesel engines and connect to shore-side power sources, forcing expensive infrastructure updates and additional changes that ripple through the shipping industry. That rule unfairly exports the cost of California’s climate agenda to the rest of the country by raising consumer prices, disrupting supply chains, and shaking the balance between state and federal authority.

California’s massive handling of US imports and exports under the “Vessels At-Berth” rule naturally raises compliance costs, which translates into higher prices for fuel, food, and other consumer goods. 12 local ports handle 40% of American imports and 30% of exports, meaning an additional cost of more than $2 billion by 2032 across various products under the regulation.

As national economic chokepoints, Ports of Long Beach and Los Angeles administering the mandate are setting a policy taxpayers never endorsed. This invisible tax on local and international trade will eventually make American exporters less competitive in global markets, as well as bumping up prices here at home.

In addition to orchestrating maritime traffic along the coast, the rule adds to the strain on local power grids while forcing captains to turn off all diesel engines and plug vessels into a pre-approved clean energy source as soon as they dock. Violators and ships without the required technology are swiftly charged a fee.

That money is deposited into the state’s Remediation Fund—sometimes costing thousands per hour—including noncompliance fines that can reach up to $50,288 per violation, per day. If a ship’s energy isn’t clean enough to appease California’s state government, its owner will have to cough up for the right to offload its goods—hence the higher prices for you and I at the grocery store. The rule only exists because of the EPA’s Clean Air Act waiver, which allows California to enact stricter rules than federal restrictions due to its extreme air quality conditions.

California does not make it easy for ships to comply with the rule and avoid the heavy fines. Plugging into the land-based grid alone takes up to 3 hours. During that time, ships must berth, secure the vessel, switch to shore power, back to onboard power, cast off, and exit. These process requirements increase vessel turnaround time, reduce dock availability, and contribute to port congestion when repeated across thousands of port calls. Implementing shore-based electrical infrastructure also introduces operational and safety risks. For some ships, like petroleum tankers, compliance is technologically impossible, making the fines inescapable and unfair.


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  • Through the EPA waiver, California’s state government is essentially regulating state and global commerce at its shores—an area traditionally managed by the federal government. A repeal through the Congressional Review Act (CRA) can correct this. The CRA allows Congress to disapprove federal agency rules by passing a fast-tracked Joint Resolution of Disapproval with a simple majority. Once signed, the legislation would repeal the “Vessel At-Berth” rule, which cannot be re-issued without congressional approval after that.

    Repealing the waiver would reverse many of its negative effects listed above. It would also restore balance between state and federal power. Even better, the overturn would prevent future administrations from issuing similar waivers without congressional approval.

    One state’s regulatory agenda shouldn’t govern an entire nation’s economy. California is free to pursue its own policies, but shouldn’t have the ability to unilaterally impose its own policy costs on the rest of the country. The longer Congress waits to act against this, the higher the bill will be for American taxpayers.

    Lora Karch is an independent policy writer with Young Voices, passionate about individual liberties. Her work has appeared in The National Interest, Washington Examiner, RealClearWorld, Times of Israel, and more. You can follow her for more of her work on X: @LoraKarch

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