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TANKER INDUSTRY FOLLOWING CARB REGULATIONS

The tanker industry is monitoring the development of regulations produced by the California Air Resources Board (CARB) that will affect the segment from 2025

The regulations will extend existing requirements for container ships, reefers and cruise vessels to use shore power or alternative emissions control strategies to the tanker market from 2025.

The rules will begin to apply to tankers docking at the Port of Los Angeles and the Port of Long Beach from the beginning of 2025, while tankers in Northern California have until 2027.

The Motorship notes that the tanker terminals are expected to submit plans to the CARB one year prior to the entry into effect of the regulations. The CARB expects to see compliance plans for tankers calling at the Port of Los Angeles and the port of Long Beach by 1 February 2024, and for the terminals located in northern California by 1 February 2026.

CARB consultation

Benjamin Buonviri, ABS Manager of Regulatory Affairs, explained to The Motorship that the CARB received feedback from industry on its air pollution control proposals as part of its interim evaluation. This feedback was duly considered when completing the interim evaluation. After completion of the evaluation, CARB held a workshop in February 2023, which was open to the public, to discuss the outcomes of the interim evaluation.

At the workshop, operators of tanker vessels raised the following concerns:

5 Lack of availability of non-shore power Approved Emission Control System (CAECS)

5 Timeline to adapt existing CAECS for use on tanker vessels

5 Safety concerns

5 Power availability and compatibility (for shore power equipment)

5 Logistical and operational constraints

5 Utility construction delay

CARB has reiterated that it is not aware of any industrywide limitations that prevent implementation of the regulation in California. CARB also indicated that if site specific restrictions are found to prevent implementation then these would be given due consideration. It was further noted that shore power is just one option and that there are other viable CAECS options.

As of the beginning of 2023, all tanker terminals in California have been determined as a regulated terminal or a low activity terminal. These terminal operators now have two years to prepare a CAECS for each or their terminals.

There will likely be implementation issues and CARB is working through these as they are being brought to their attention, however requests for delay need to based on objective evidence.

The CARB noted that many tanker terminal operators have not yet committed to a control strategy and have not yet provided complete terminal plans.

It is to be understood that the responsibility to provide a CAECS lies with the terminal. If through commissioning it is found that a vessel is incompatible with the CAECS, then the vessel and terminal are responsible for finding another CAECS for the visit. Prior to the next visit the vessel should either modify itself to be compatible with the CAECS provided by the terminal or arrange a separate CAECS.

Euronav, the Antwerp based VLCC and Suezmax owner that has a fleet of 71 ships, would focus on modifying those vessels calling at the west coast USA, which would be between 10% and 15% of the fleet operated by the company, said Brian Gallagher, member of the management board of the company.

There could arise technical issues relating to the installation of shore power connections at the terminals in California – some of the quays are shorter than the vessels, which will force the electricity connections to be located at the bow end, near the pump equipment. There are also issues relating to a lack of common standards – both in the connections (plug standardisation) and in the electricity supply, which works 50Hz in the US, and 60Hz in Europe.

As to tackling these and other potential concerns, Gallagher said finding solutions would be on a case by case or port by port basis with each shipping segment. “As we saw with US Gulf exports competition between the ports tends to drive workable solutions - we would expect the same here,” he told The Motorship

Anne-Louise Dam-Rasmussen, Head of Communications at D/S Norden in Denmark, said that it was too early to comment as the legislation is not due to take effect until the second half of the decade.

8 The CARB is proposing to extend emission reduction rules to tankers calling at terminals in southern California from 2025 and northern California from 2027

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