[Regulatory Update] US House Passes Resolution to Nullify California's Ship At-Berth Emissions Rule — Federal–State Regulatory Authority Back in Question for Ports and Shipping
The combination of California's own environmental regulation, EPA's federal authorisation and a congressional CRA resolution to nullify it vividly illustrates the tension over regulatory authority between the federal government and the states in the United States. In port and shipping infrastructure, large investments in emissions reduction equipment and operational systems are under way on both the vessel side and the shore-side terminal side, so judicial and congressional uncertainty around the regulatory framework bears directly on the compliance strategies of global supply chains that use West Coast ports.
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U.S. California and State-Level Regulatory System
California maintains some of the most stringent environmental and supply chain regulatory standards in the United States. Rather than adopting a comprehensive directive- or regulation-based approach like the EU, California employs a "policy cluster" regulatory structure in which individual state statutes exist in parallel for each specific policy objective. This system is composed of five major clusters: climate-related disclosure (SB 253 / SB 261), hazardous substance warning labeling (Proposition 65), substance-specific PFAS and chemical restrictions, packaging and the circular economy (SB 54), and microplastics measures. Proposition 65, enacted by voter initiative in 1986, is the longest-standing state-level chemical regulation in the United States, requiring warning labels for products containing substances known to cause cancer or reproductive harm. In the climate disclosure cluster, SB 253 (requiring Scope 1–3 emissions disclosure across the supply chain) and SB 261 (requiring climate-related financial risk disclosure) were both enacted in 2023. Both laws have been affected by litigation: for SB 253, state authorities have made clear their intent to continue implementation, with the first reporting deadline set for August 10, 2026, while enforcement of SB 261 has been temporarily suspended pending review before the Ninth Circuit Court of Appeals. In the packaging and circular economy cluster, SB 54 (requiring extended producer responsibility and reduction of plastic packaging) was enacted in 2022. This system serves as the top-level (Level 1) Regulatory System for understanding this cluster of California environmental regulations in an integrated way.
See this regulation's full analysis (timeline & business impact)US Clean Air Act (CAA) Emission Allowances and Permitting Requirements
The U.S. Clean Air Act (CAA) is a comprehensive regulatory framework administered by EPA to maintain and achieve the National Ambient Air Quality Standards (NAAQS). Through the operating permit program (Title V) for major sources and New Source Performance Standards (NSPS), it strictly limits hazardous air pollutant (HAP) emissions from factories and facilities. Companies are required to manage emission allowances (such as cap-and-trade systems) and conduct continuous emissions monitoring and reporting; violations carry the risk of substantial fines or business suspension, requiring a sophisticated compliance framework across the supply chain.
See this regulation's full analysis (timeline & business impact)💡 The overview and schedule for the regulation related to this article can also be found on the Regulatory Gateway Database page.