On July 24, 2008, the California Air Resources Board (“CARB”) adopted Proposed Regulations requiring use of lower sulfur marine distillate fuel in ocean-going vessels’ main and auxiliary engines and auxiliary boilers. The Proposed Regulations will be implemented in two stages, in 2009 and in 2012. U.S.-flagged and foreignflagged vessels will be subject to the Regulations when operating within 24 nautical miles of California’s coastline. The Proposed Regulations are not yet final and will likely face legal challenges similar to the suit filed by the Pacific Merchant Shipping Association in respect of CARB’s 2007 Ocean-Going Vessel Auxiliary Diesel Engine Regulations, which imposed emissions limits based on emission rates that would result if the engines had used specified lower sulfur fuels. The U.S. District Court for the Eastern District of California enjoined enforcement of those regulations on preemption grounds, and the Ninth Circuit affirmed.