The 1st U.S. Circuit Court of Appeals upheld the U.S. District Court’s decision that Bar Harbor can limit the number of cruise ship passengers allowed to disembark each day but sent the case back to the lower court for review.

In a local referendum three years ago, Bar Harbor placed a 1,000-person daily cap for cruise ship passengers entering Bar Harbor. Over 270,000 passengers visited the town that year, according to court filings.

The ordinance was proposed in response to complaints about downtown congestion during the cruise season, when more than 150 ships typically visit, some carrying several thousand passengers. The town opposed the citizen-led referendum in 2022, concerned about the potential for a lengthy legal battle, the difficulty of enforcing the law at privately owned docks, and whether the town has the bandwidth to take action if the limit is violated.

A group of local businesses, the Association to Protect Local Livelihoods, subsequently filed a lawsuit alongside pier owners and touring companies. The Penobscot Bay and River Pilots Association, which provides pilotage services to cruise ships, also lodged a complaint.

The parties allege the ordinance regulates interstate commerce, imposes additional requirements for entry into the United States, and denies seafarers access to shore, breaking federal laws.

Judge Lance Walker in the Bangor federal court found in favor of the town in February 2024, deciding that Bar Harbor had home rule authority granted by the state.

The 1st U.S. Circuit Court of Appeals upheld most of the District Court’s decisions, determining, for example, that the ordinance does not place limits on the number of people who can enter the country as they gain entry in Frenchman Bay, part of United States waters. That is where U.S. Customs and Border Protection conducts inspections and deems passengers on cruise ships in the area lawfully admitted to the country.

However, the Appeals Court directed the District Court to determine whether the ordinance is “clearly excessive” when it comes to regulating interstate commerce.

It must decide if the limit on disembarkations “burdens other coastal towns by reducing the volume of cruise tourism to those jurisdictions,” the decision states.

The District Court must also explore whether the ordinance “meaningfully advances” the town’s interest in reducing congestion and whether these results could not be achieved “through less burdensome means.”