A new array of regulations from California’s Air Resources Board (CARB) could drive Golden State energy production to new lows.
That was the takeaway from a presentation by CalMotion, a broad group of industry stakeholders providing an information hub for fuel consumers, during a regional policy conference hosted by BizFed Central Valley in Fresno on Thursday.
Driving the news: A prime example of how the state could increase costs to consumers is a new regulation related to oil tankers and how they offload product.
- On January 1, 2025, the California Air Resources Board began enforcing new “At-Berth” Regulations which mandate ocean-going tanker vessels at Southern California ports cut their emissions by hooking up to electrical shore power or by using other CARB-approved technologies.
- The meeting addressed challenges related to the implementation of these regulations, highlighting the fact that the global tanker fleet serving California is not currently equipped to use shore power, and the infrastructure for supplying the needed electricity is insufficient.
- Additionally, it was mentioned that the technology for safe and reliable operation of an emissions control system is still in the testing phase, and it may be a long way from full deployment at scale.
- CalMotion warned that the lack of a feasible way to comply with these regulations could lead to substantial limitations on ship visits, potentially resulting in a significant decline in the supply of crude and other transportation fuel products needed to meet the state’s energy demand.
What they’re saying: “This event was eye opening. The pendulum is starting to swing in the opposite direction. Californians are beginning to realize they’re overburdened by the ever-rising cost of energy and the time is soon coming where they’ll demand that state legislators free up the energy sector to once again provide transportation fuels and natural gas at prices that aren’t artificially inflated by overregulation,” Clint Olivier, CEO of the Central Valley Business Federation, said following the presentation.