For over half a century, the California Air Resources Board (CARB) has leveraged its unique ability to secure federal EPA waivers [pqeopybab.cc.rs6.net] to set emissions standards that have dramatically reduced pollution and improved air quality across California. While CARB deserves credit for its historic accomplishments, its recent trajectory has sparked concern. The agency’s mandate to achieve carbon neutrality in the freight and logistics sector [pqeopybab.cc.rs6.net] will be nearly impossible without widespread, bipartisan buy-in. Further, without a massive expansion of our electrical grid and a full-scale overhaul of supporting infrastructure, we risk placing an impossible burden on the carriers that keep goods moving across the United States.
Compounding this pressure is a federal government locked in a decades-long battle over climate policy. As federal waivers are granted and revoked with each change in presidential administration, the resulting regulatory whiplash makes long-term business planning nearly impossible.
When President Trump took office last year, he made clear that many Biden-era waivers would not survive his second term. Rather than simply revoking them, his administration worked with Congress to successfully invoke the Congressional Review Act (CRA) against three specific EPA waivers. These CRA resolutions not only void the EPA waivers, but they also permanently ban the EPA from issuing any ‘substantially similar’ rules without formal approval from Congress. California responded by filing a lawsuit against the federal government that challenges the constitutionality of the resolutions; the case is ongoing.
Faced with a federal roadblock, California lawmakers are attempting to circumvent the federal government entirely with Assembly Bill 1777. This legislation would give CARB and other air regulators the power to regulate “indirect sources of pollution.” By labeling warehouses, railyards, and ports as ‘pollution centers,’ the state shifts the burden of emissions reduction squarely onto the shoulders of shippers and receivers across California. If passed, AB 1777 will likely face intense litigation.
For many shippers and receivers, these ‘indirect source rules’ are more than just a legislative threat; they are a present-day reality. In recent weeks, CARB has quietly ramped up enforcement of its Transport Refrigeration Unit (TRU) regulations. Under these rules, large facilities receiving refrigerated shipments must either report every TRU that enters their gates or sign a declaration, under penalty of perjury, that they will not permit non-compliant units on-site.
Ultimately, state and federal regulators remain deadlocked in a high-stakes political chess match. But it isn’t the politicians who will suffer the consequences; it’s the U.S. supply chain and everyday consumers who are left to navigate the chaos.