Fong Legislation to End California's Hidden Tax Raising Costs on Americans Passes House

WASHINGTON, D.C. - Today, the U.S. House of Representatives passed Congressman Vince Fong's (CA-20) H.J. Res. 210, a resolution to prevent a California Air Resources Board (CARB) mandate from driving up costs for Americans across the country. The resolution passed the House with bipartisan support.

Specifically, H.J. Res. 210 uses the Congressional Review Act (CRA) to strike down California's Ocean-Going Vessels "At Berth" Regulation, which imposes costly and unworkable mandates on ports, shipping companies, and critical industries, including requirements for technology that is not yet viable. The consequences of this regulation are far reaching, threatening the reliable operation of California's refineries, and increasing the cost of moving goods through our ports, not only worsening California's affordability crisis, but ultimately driving up prices for consumers in all 50 states.

This action was initiated in 2020 by CARB, an unelected state agency, and approved by the Biden Administration's Environmental Protection Agency (EPA) in 2023. Congressman Fong's legislation overturns that approval.

"We are one step closer to stopping an unelected state agency in California from increasing prices for consumers across the country, weakening our nation's supply chains, and straining our regional fuel supply," said Congressman Vince Fong. "California's At Berth Regulation is unworkable and costly, putting some of our nation's most productive ports - including the businesses and workers who rely on them - at a competitive disadvantage. It threatens West Coast energy security and disrupts the goods and services our economy relies on, forcing everyday families to pay the price at the checkout counter and the gas pump. My resolution is a commonsense solution to protect America's supply chains and prevent California's actions from driving up costs for American families. I'm proud to lead the effort in the House and will work to get it passed in the Senate."

You can watch Rep. Fong's remarks on the House Floor leading up to the resolution's passage here.

"I am glad to partner with Rep. Fong on this effort, because West Coast supply chains don't stop at state lines," said Senator Dan Sullivan. "When California imposes onerous and costly mandates, hard-working Alaskan families pay the price. Nearly half of Alaska's crude oil is processed in California refineries. By restricting which ships can call at its ports and driving up operating costs for those that do, California is artificially inflating costs across our entire region. Alaskans shouldn't be forced to foot the bill for California's abuse of its Clean Air Act waiver authority."

"Manufacturers strongly support the introduction of H.J. Res.210 by Rep. Vince Fong to nullify the At Berth Rule," said Chris Phalen, Vice President of Domestic Policy, National Association of Manufacturers (NAM). "The rule injected needless uncertainty into the regulatory process by granting a federal waiver for this sweeping state regulation. A patchwork of conflicting state laws drives up costs and undermines manufacturing growth across America, and we welcome this legislation to ensure a more straightforward, standardized regulatory process."

"California should not be allowed to make an already constrained West Coast energy market more costly and less reliable," said Kristin Whitman, Senior Vice President of Federal Relations, American Petroleum Institute (API). "By imposing burdensome new requirements on maritime operators, this rule threatens to disrupt the integrated supply chain that moves crude and other vital energy supplies through the region. We welcome Congressman Vince Fong's resolution to overturn this misguided mandate and protect consumers from further supply constraints and higher costs."

"We applaud Representative Fong for leading this effort to overturn California's Ocean-Going Vessels at Berth mandate. California ports handle roughly 40% of U.S. containerized imports and significant volumes of crude oil and refined fuels. As a result, the costs of this mandate would ripple through supply chains and energy markets, raising prices for American families and consumers. Congress must act to stop California from imposing unlawful, unachievable policies that raise costs for every American and threaten U.S. energy security along our coasts," said Chet Thompson, President and CEO, American Fuel & Petrochemical Manufacturers (AFPM).

"For years, CARB's At Berth Regulation has created significant challenges and uncertainty for California refiners and importers at a time when stabilizing the industry is a top priority," said Jodie Muller, President and CEO, Western States Petroleum Association (WSPA). "Policymakers and regulators have been unable to solve the many problems related to the At Berth Regulation and Congress has decided that it is time to move forward. California consumers should not have to bear the brunt of a further constrained fuel supply."

"NFIB applauds Rep. Fong for this common-sense resolution that would overturn another overbearing CARB regulation. Ninety-two percent of small businesses have seen an increase in energy costs over the last few years. H.J. Res. 210 will reduce energy costs and eliminate red tape and compliance burdens on small businesses in California and across the country," said Louis Bertolotti, Principal of Federal Government Relations, National Federation of Independent Business (NFIB).

Background

California ports handle roughly 40% of the nation's containerized imports, meaning California's regulation on docked vessels doesn't just affect California; it raises costs for consumers in all 50 states.

The CARB At Berth Regulation requires ocean-going vessels docked at California ports to cut diesel emissions by plugging into the electrical grid, installing state-approved technology, or paying into a state remediation fund. Ships that cannot comply face penalties of roughly $50,000 per vessel per day. Those costs are passed onto freight rates, wholesale prices, and ultimately what consumers pay at checkout. CARB's own analysis projected the shipping industry would absorb approximately $2.3 billion in compliance costs through 2032.

The Biden Administration's EPA authorized CARB to expand this regulation to ocean-going tankers in October 2023 without submitting it to Congress for review. The Congressional Review Act gives Congress the authority to nullify that authorization with a majority vote.

Rep. Fong's CRA is endorsed by the American Fuel & Petrochemical Manufacturers (AFPM), American Petroleum Institute (API), Western States Petroleum Association (WSPA), National Association of Manufacturers (NAM), Chamber of Shipping of America, National Federation of Independent Business (NFIB), and more than 70 additional organizations.

It now moves to the U.S. Senate for consideration, where Senator Dan Sullivan (R-AK) is leading the companion resolution.

To view a letter of support from more than 70 organizations, click here. To view the bill text, click here.

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