BILL NUMBER: SB 974 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 30, 2007
AMENDED IN SENATE APRIL 9, 2007
INTRODUCED BY Senator Lowenthal
(Principal coauthor: Assembly Member De La Torre)
(Coauthors: Assembly Members Carter and Karnette)
FEBRUARY 23, 2007
An act to add Article 10 (commencing with Section
63049.70) to Chapter 2 of Division 1 of Title 6.7 of the Government
Code, to amend and renumber Section 1760 of, to add a heading to
Chapter 1 (commencing with Section 1720) of, and to add Chapter 2
(commencing with Section 1740) to, Part 2 of Division 6 of, the
Harbors and Navigation Code, relating to ports, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 974, as amended, Lowenthal. Ports: congestion relief:
environmental mitigation: regulatory fee.
(1) Existing law regulates the operation of ports and harbors.
This bill would require the Ports of Los Angeles, Long Beach, and
Oakland to collect a user fee on the owner of container cargo moving
through the Port of Los Angeles, the Port of Long Beach, or the Port
of Oakland at a rate of $30 per twenty-foot equivalent unit (TEU).
The bill would require the Ports of Los Angeles and Long Beach to
transmit 1/2 of the funds derived from imposition of the fee to the
Southern California Port Congestion Relief Trust Fund, which the bill
would establish in the State Treasury, and 1/2 to the Southern
California Port Mitigation Relief Trust Fund, which the bill would
establish in the State Treasury. The bill would require the Port of
Oakland to transmit 1/2 of the funds derived from imposition of the
fee to the Northern California Port Congestion Relief Trust Fund,
which the bill would establish in the State Treasury, and 1/2 to the
Northern California Port Mitigation Relief Trust Fund, which the bill
would establish in the State Treasury.
The bill would require the moneys transmitted to the Southern
California Port Congestion Relief Trust Fund and the Northern
California Port Congestion Relief Trust Fund to be available, upon
appropriation, for expenditure by the California Transportation
Commission exclusively for the purposes of funding projects that
improve the flow and efficiency of container cargo to and from those
ports, and funding the administrative costs of this program. The bill
would prohibit moneys deposited in those funds from being loaned or
transferred to, or allocated or appropriated in any other way to, the
General Fund. The bill would prohibit the commission from using the
funds to construct, maintain, or improve highways, with certain
exceptions.
The bill would require the moneys transmitted to the Southern
California Port Mitigation Relief Trust Fund and the Northern
California Port Mitigation Relief Trust Fund to be available, upon
appropriation, for expenditure by the State Air Resources Board to
develop a list of projects to mitigate environmental pollution caused
by the movement of cargo to and from those ports, and for the
administration of this program. The bill would prohibit moneys
deposited in those funds from being loaned or transferred to, or
allocated or appropriated in any other way to, the General Fund.
The bill would establish a state-mandated local program by
imposing these additional duties upon the ports.
(2) Existing law sets forth the duties of the Infrastructure and
Economic Development Bank and its board of directors generally in
performing various financing transactions, including the issuance of
bonds.
This bill would authorize the bank to enter into financing
agreements with participating parties to finance or refinance
Southern California and Northern California port congestion relief
projects and Southern California and Northern California port
mitigation relief projects. The bank would be authorized to issue
revenue bonds. User fees on container ships from the Southern and
Northern California Port Congestion Relief Trust Funds and the
Southern and Northern California Mitigation Relief Trust Funds would
be continuously appropriated to the bank to secure any revenue bonds.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 10 (commencing with Section 63049.70) is added
to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to
read:
Article 10. Financing of Port Congestion Relief and Port
Mitigation Relief
63049.70. The definitions contained in this section are in
addition to the definitions contained in Section 63010 and together
with the definitions contained in that section shall govern the
construction of this article, unless the context requires otherwise:
(a) "Credit facility" means all obligations, including principal,
interest, fees, costs, indemnities, and all other amounts incurred by
the bank under or in connection with any credit enhancement or
liquidity agreement, including a letter of credit, standby purchase
agreement, reimbursement agreement, liquidity facility, or other
similar arrangement entered into by the bank.
(b) "Northern California port congestion relief container fee
revenue" means all of the following:
(1) Income and receipts derived by the bank from Northern
California port congestion relief container fees.
(2) Interest and other income from investment of money in any fund
or account established pursuant to an indenture for Northern
California Port Congestion Relief Container Fee Revenue Bonds, other
than any fund established to rebate investment earnings to the
federal government.
(A) Amounts on deposit in these funds and accounts, other than any
fund or account established to rebate investment earnings to the
federal government and any fund or account established to hold the
proceeds of a drawing on any liquidity or credit support facility for
these bonds.
(B) Net income and net receipts derived by the bank on account of
interest rate swaps with respect to these bonds.
(c) "Northern California Port Congestion Relief Container Fee
Revenue Bonds" means revenue bonds issued pursuant to this article
that are payable from Northern California port congestion relief
container fee revenue.
(d) "Northern California port congestion relief container fees"
means all user fees that are imposed pursuant to Section 1747 of the
Harbors and Navigation Code and remitted to the Northern California
Port Congestion Relief Trust Fund in the State Treasury.
(e) "Northern California port congestion relief project" means
each project for public development facilities and economic
development facilities for which the expenditure of funds has been
approved by the California Transportation Commission pursuant to
Section 1751 of the Harbors and Navigation Code.
(f) "Northern California port mitigation relief container fee
revenue" means all of the following:
(1) Income and receipts derived by the bank from Northern
California port mitigation relief container fees.
(2) Interest and other income from investment of money in any fund
or account established pursuant to an indenture for Northern
California Port Mitigation Relief Container Fee Revenue Bonds, other
than any fund established to rebate investment earnings to the
federal government.
(A) Amounts on deposit in these funds and accounts, other than any
fund or account established to rebate investment earnings to the
federal government and any fund or account established to hold the
proceeds of a drawing on any liquidity or credit support facility for
these bonds.
(B) Net income and net receipts derived by the bank on account of
interest rate swaps with respect to these bonds.
(g) "Northern California Port Mitigation Relief Container Fee
Revenue Bonds" means revenue bonds issued pursuant to this article
that are payable from Northern California port mitigation relief
container fee revenue.
(h) "Northern California port mitigation relief container fees"
means all user fees that are imposed pursuant to Section 1747 of the
Harbors and Navigation Code and remitted to the Northern California
Port Mitigation Relief Trust Fund in the State Treasury.
(i) "Northern California port mitigation relief project" means
each project for public development facilities and economic
development facilities for which the expenditure of funds has been
approved by the State Air Resources Board pursuant to Section 1753
of the Harbors and Navigation Code.
(j) "Southern California port congestion relief container fee
revenue" means all of the following:
(1) Income and receipts derived by the bank from Southern
California port congestion relief container fees.
(2) Interest and other income from investment of money in any fund
or account established pursuant to an indenture for Southern
California Port Congestion Relief Container Fee Revenue Bonds, other
than any fund established to rebate investment earnings to the
federal government.
(A) Amounts on deposit in these funds and accounts, other than any
fund or account established to rebate investment earnings to the
federal government and any fund or account established to hold the
proceeds of a drawing on any liquidity or credit support facility for
these bonds.
(B) Net income and net receipts derived by the bank on account of
interest rate swaps with respect to these bonds.
(k) "Southern California Port Congestion Relief Container Fee
Revenue Bonds" means revenue bonds issued pursuant to this article
that are payable from Southern California port congestion relief
container fee revenue.
(l) "Southern California port congestion relief container fees"
means all user fees that are imposed pursuant to Sections 1745 and
1746 of the Harbors and Navigation Code and remitted to the Southern
California Port Congestion Relief Trust Fund in the State Treasury.
(m) "Southern California port congestion relief project" means
each project for public development facilities and economic
development facilities for which the expenditure of funds has been
approved by the California Transportation Commission pursuant to
Section 1750 of the Harbors and Navigation Code.
(n) "Southern California port mitigation relief container fee
revenue" means all of the following:
(1) Income and receipts derived by the bank from Southern
California port mitigation relief container fees.
(2) Interest and other income from investment of money in any fund
or account established pursuant to an indenture for Southern
California Port Mitigation Relief Container Fee Revenue Bonds, other
than any fund established to rebate investment earnings to the
federal government.
(3) Amounts on deposit in these funds and accounts, other than any
fund or account established to rebate investment earnings to the
federal government and any fund or account established to hold the
proceeds of a drawing on any liquidity or credit support facility for
these bonds.
(4) Net income and net receipts derived by the bank on account of
interest rate swaps with respect to these bonds.
(o) "Southern California Port Mitigation Relief Container Fee
Revenue Bonds" means revenue bonds issued pursuant to this article
that are payable from Southern California port mitigation relief
container fee revenue.
(p) "Southern California port mitigation relief container fees"
means all user fees that are imposed pursuant to Sections 1745 and
1746 of the Harbors and Navigation Code and remitted to the Southern
California Port Mitigation Relief Trust Fund in the State Treasury.
(q) "Southern California port mitigation relief project"
means each project for public development facilities and economic
development facilities for which the expenditure of funds has been
approved by the State Air Resources Board pursuant to Section 1752 of
the Harbors and Navigation Code.
63049.71. (a) The bank may enter into financing agreements with
participating parties for the purpose of financing or refinancing
Southern California port congestion relief projects and Southern
California port mitigation relief projects.
(b) The bank may issue bonds pursuant to this chapter as Southern
California Port Congestion Relief Container Fee Revenue Bonds to
finance or refinance Southern California port congestion relief
projects and as Southern California Port Mitigation Relief Container
Fee Revenue Bonds to finance or refinance Southern California port
mitigation relief projects. The aggregate principal amount of the
bonds that may be issued is unlimited, but the aggregate principal
amount of the bonds that may be outstanding at any one time is five
billion dollars ($5,000,000,000). The revenue bonds may also be
issued to finance necessary reserves, capitalized interest, credit
enhancement costs, and costs of issuance of the revenue bonds. The
last date for payment of principal of any revenue bond may not be
more than 30 years after the date of issuance of the revenue bond.
(c) Principal of and interest and redemption premiums on Southern
California Port Congestion Relief Container Fee Revenue Bonds and
Southern California Port Mitigation Relief Container Fee Revenue
Bonds shall be payable from, and secured by, Southern California port
congestion relief container fee revenue and Southern California port
mitigation relief container fee revenue, respectively, as and to the
extent provided in the constituent instruments defining the rights
of the holders of the bonds.
63049.72. (a) The bank may enter into financing agreements with
participating parties for the purpose of financing or refinancing
Northern California port congestion relief projects and Northern
California port mitigation relief projects.
(b) The bank may issue bonds pursuant to this chapter as Northern
California Port Congestion Relief Container Fee Revenue Bonds to
finance or refinance Northern California port congestion relief
projects and as Northern California Port Mitigation Relief Container
Fee Revenue Bonds to finance or refinance Northern California port
mitigation relief projects. The aggregate principal amount of the
bonds that may be issued is unlimited, but the aggregate principal
amount of the bonds that may be outstanding at any one time is five
billion dollars ($5,000,000,000). The revenue bonds may also be
issued to finance necessary reserves, capitalized interest, credit
enhancement costs, and costs of issuance of the revenue bonds. The
last date for payment of principal of any revenue bond may not be
more than 30 years after the date of issuance of the revenue bond.
(c) Principal of and interest and redemption premiums on Northern
California Port Congestion Relief Container Fee Revenue Bonds and
Northern California Port Mitigation Relief Container Fee Revenue
Bonds shall be payable from, and secured by, Northern California port
congestion relief container fee revenue and Northern California port
mitigation relief container fee revenue, respectively, all as and to
the extent provided in the constituent instruments defining the
rights of the holders of the bonds.
63049.73. (a) The bank may pledge all or any portion of the
Southern California port congestion relief container fees to secure
Southern California Port Congestion Relief Container Fee Revenue
Bonds, and credit facilities for these bonds, and all or any portion
of the Southern California port mitigation relief container fees to
secure Southern California Port Mitigation Relief Container Fee
Revenue Bonds, and credit facilities for these bonds. All Southern
California port congestion relief container fees and Southern
California port mitigation relief container fees so pledged are
hereby continuously appropriated, notwithstanding Section 13340,
without regard to fiscal years, to the bank, and, if the bank so
directs, shall be paid to the indenture trustee for these bonds each
month, from the Southern California Port Congestion Relief Trust Fund
and the Southern California Port Mitigation Relief Trust Fund for so
long as any of the bonds are outstanding. Any Southern California
port congestion relief container fees and Southern California port
mitigation relief container fees that are not required to be retained
by the indenture trustee pursuant to the constituent instruments
defining the rights of the holders of the bonds shall be remitted by
the indenture trustee to the Southern California Port Congestion
Relief Trust Fund and the Southern California Port Mitigation Relief
Trust Fund and shall be disbursed at the request and direction of the
California Transportation Commission and the State Air Resources
Board, respectively, for Southern California port congestion relief
projects and Southern California port mitigation relief
projects that are not being financed with revenue bonds issued by the
bank, and these funds are hereby continuously appropriated,
notwithstanding Section 13340, without regard to fiscal years, for
that purpose.
(b) The state hereby pledges to and agrees with the holders of
revenue bonds issued pursuant to this article, and each provider of a
letter of credit, standby purchase agreement, reimbursement
agreement, liquidity facility, or other similar arrangement for the
benefit of the revenue bonds, that the state will not limit, alter,
or restrict each pledge of Southern California port congestion relief
container fees and Southern California port mitigation relief
container fees permitted hereby and any other terms of any agreement
made with or for the benefit of the holders of the revenue bonds or
the providers or in any way impair the rights or remedies of the
holders of the bonds or the providers or reduce or terminate the fees
while any of the bonds remain outstanding.
63049.74. (a) The bank may pledge all or any portion of the
Northern California port congestion relief container fees to secure
Northern California Port Congestion Relief Container Fee Revenue
Bonds, and credit facilities for these bonds, and all or any portion
of the Northern California port mitigation relief container fees to
secure Northern California Port Mitigation Relief Container Fee
Revenue Bonds, and credit facilities for these bonds. All Northern
California port congestion relief container fees and Northern
California port mitigation relief container fees so pledged are
hereby continuously appropriated, notwithstanding Section 13340,
without regard to fiscal years, to the bank, and, if the bank so
directs, shall be paid to the indenture trustee for the bonds each
month, from the Northern California Port Congestion Relief Trust Fund
and the Northern California Port Mitigation Relief Trust Fund for so
long as any of the bonds are outstanding. Any Northern California
port congestion relief container fees and Northern California port
mitigation relief container fees that are not required to be retained
by the indenture trustee pursuant to the constituent instruments
defining the rights of the holders of the bonds shall be remitted by
the indenture trustee to the Northern California Port Congestion
Relief Trust Fund and the Northern California Port Mitigation Relief
Trust Fund and shall be disbursed at the request and direction of the
California Transportation Commission and the State Air Resources
Board, respectively, for Northern California port congestion relief
projects and Northern California port mitigation relief projects that
are not being financed with revenue bonds issued by the bank, and
these funds are hereby continuously appropriated, notwithstanding
Section 13340, without regard to fiscal years, for that purpose.
(b) The state hereby pledges to and agrees with the holders of
revenue bonds issued pursuant to this article, and each provider of a
letter of credit, standby purchase agreement, reimbursement
agreement, liquidity facility, or other similar arrangement for the
benefit of the revenue bonds, that the state will not limit, alter,
or restrict each pledge of Northern California port congestion relief
container fees and Northern California port mitigation relief
container fees permitted hereby and any other terms of any agreement
made with or for the benefit of the holders of the revenue bonds or
the providers or in any way impair the rights or remedies of the
holders of the bonds or the providers or reduce or terminate the fees
while any of the bonds remain outstanding.
63049.75. Notwithstanding any other provision of law, Article 3
(commencing with Section 63040), Article 4 (commencing with Section
63042), and Article 5 (commencing with Section 63043) of this chapter
do not apply to any financing provided by the bank pursuant to this
article, and the principal amount of revenue bonds issued pursuant to
this article and Chapter 5 (commencing with Section 63070) shall not
count against the limit stated in the first sentence of subdivision
(b) of Section 63071.
SEC. 2. The heading of Chapter 1 (commencing with Section 1720) is
added to Part 2 of Division 6 of the Harbors and Navigation Code,
immediately preceding Section 1720, to read:
CHAPTER 1. PORT FACILITY CONSTRUCTION
SEC. 3. Chapter 2 (commencing with Section 1740) is added to Part
2 of Division 6 of the Harbors and Navigation Code, to read:
CHAPTER 2. PORT CONGESTION RELIEF AND PORT MITIGATION RELIEF
Article 1. General Provisions
1740. The Legislature hereby finds and declares all of the
following:
(a) There is a need to mitigate the enormous burden imposed on the
highway transportation system serving the Ports of Los Angeles, Long
Beach, and Oakland by the overland movement of cargo shipped from
and to those ports.
(b) The operation of the ports causes environmental pollution that
requires mitigation.
(c) The improvement of goods movement infrastructure would benefit
the owners of container cargo moving through the ports by allowing
the owners of the cargo to move container cargo more efficiently and
to move more cargo through those ports.
(d) The reduction of goods movement pollution would benefit the
owners of container cargo moving through the ports by meeting federal
air quality standards, which will allow for continued federal
funding of goods movement infrastructure projects.
(e) Accordingly, it is the intent of the Legislature to alleviate
these burdens by imposing a fee on shipping containers processed
through those ports and using the funds derived from that fee to do
both of the following:
(1) Improve the rail system that serves as an alternative to
shipping on the highway by commercial vehicle, including, but not
limited to, the ondock rail facilities at those ports.
(2) Mitigate the environmental pollution caused by port
operations.
1741. (a) There is hereby established in the State Treasury the
Southern California Port Congestion Relief Trust Fund.
(b) There is hereby established in the State Treasury the Southern
California Port Mitigation Relief Trust Fund.
(c) There is hereby established in the State Treasury the Northern
California Port Congestion Relief Trust Fund.
(d) There is hereby established in the State Treasury the Northern
California Port Mitigation Relief Trust Fund.
1743. For purposes of this chapter, the following definitions
apply:
(a) "Board" means the State Air Resources Board.
(b) "Commission" means the California Transportation Commission.
(c) "Northern California Congestion Fund" means the Northern
California Port Congestion Relief Trust Fund.
(d) "Northern California Mitigation Fund" means the Northern
California Port Mitigation Relief Trust Fund.
(e) "Port" means the Port of Los Angeles, Port of Long Beach, or
Port of Oakland, as appropriate.
(f) "Southern California Congestion Fund" means the Southern
California Port Congestion Relief Trust Fund.
(g) "Southern California Mitigation Fund" means the Southern
California Port Mitigation Relief Trust Fund.
Article 2. User Fee
1745. (a) Beginning January 1, 2008, the Port of Los Angeles
shall develop a process for notifying the owner of, and collecting a
user fee from the owner of, container cargo moving through the port.
(b) No later than June 1, 2008, the port shall notify the owner of
cargo moving through the port that it will be assessed a user fee
not to exceed thirty dollars ($30) per twenty-foot
20-foot equivalent unit (TEU). The notice shall include,
but not be limited to, the process for payment of the user fee, the
frequency for payment of the user fee, and that the user fee is being
assessed to improve the goods movement infrastructure serving the
port, to reduce pollution from all forms of equipment, vehicles,
locomotives, and ships that operate at the port and bring containers
to and from the port.
(c) Beginning January 1, 2009, the port shall assess a user fee on
the owner of container cargo moving through the port not to exceed
thirty dollars ($30) per TEU. The port shall collect the fee at least
twice a year.
(1) The port shall remit one-half of the user fee to the Southern
California Congestion Fund. Upon appropriation, moneys deposited in
that fund shall be available for expenditure by the commission
exclusively for the purposes of funding projects that improve the
flow and efficiency of container cargo to and from the Port of Los
Angeles, and to fund the administrative costs of this program. Moneys
deposited in that fund shall not be loaned or transferred to, or
allocated or appropriated in any other way to, the General Fund.
(2) The port shall remit one-half of the user fee to the Southern
California Mitigation Fund. Upon appropriation, moneys deposited in
that fund shall be available for expenditure by the board to mitigate
environmental pollution caused by the movement of cargo to and from
the Port of Los Angeles by commercial motor vehicles, oceangoing
vessels, and rail, and to fund the administrative costs of this
program. Moneys deposited in that fund shall not be loaned or
transferred to, or allocated or appropriated in any other way to, the
General Fund.
(d) The port may contract with PierPass for the collection of the
user fee authorized pursuant to this section.
1746. (a) Beginning January 1, 2008, the Port of Long Beach shall
develop a process for notifying the owner of, and collecting a user
fee from the owner of, container cargo moving through the port.
(b) No later than June 1, 2008, the port shall notify the owner of
cargo moving through the port that it will be assessed a user fee
not to exceed thirty dollars ($30) per twenty-foot
20-foot equivalent unit (TEU). The notice shall include,
but not be limited to, the process for payment of the user fee, the
frequency for payment of the user fee, and that the user fee is being
assessed to improve the goods movement infrastructure serving the
port, to reduce pollution from all forms of equipment, vehicles,
locomotives, and ships that operate at the port and bring containers
to and from the port.
(c) Beginning January 1, 2009, the port shall assess a user fee on
the owner of container cargo moving through the port not to exceed
thirty dollars ($30) per TEU. The port shall collect the fee at least
twice a year.
(1) The port shall remit one-half of the user fee to the Southern
California Congestion Fund. Upon appropriation, moneys deposited in
that fund shall be available for expenditure by the commission
exclusively for the purposes of funding projects that improve the
flow and efficiency of container cargo to and from the Port of
and Long Beach, and to fund the administrative
costs of this program. Moneys deposited in that fund shall not be
loaned or transferred to, or allocated or appropriated in any other
way to, the General Fund.
(2) The port shall remit one-half of the user fee to the Southern
California Mitigation Fund. Upon appropriation, moneys deposited in
that fund shall be available for expenditure by the board to mitigate
environmental pollution caused by the movement of cargo to and from
the Port of Long Beach by commercial motor vehicles, oceangoing
vessels, and rail, and to fund the administrative costs of this
program. Moneys deposited in that fund shall not be loaned or
transferred to, or allocated or appropriated in any other way to, the
General Fund.
(d) The port may contract with PierPass for the collection of the
user fee authorized pursuant to this section.
1747. (a) Beginning January 1, 2008, the Port of Oakland shall
develop a process for notifying the owner of, and collecting a user
fee from the owner of, container cargo moving through the port.
(b) No later than June 1, 2008, the port shall notify the owner of
cargo moving through the port that it will be assessed a user fee
not to exceed thirty dollars ($30) per twenty-foot
20-foot equivalent unit (TEU). The notice shall include,
but not be limited to, the process for payment of the user fee, the
frequency for payment of the user fee, and that the user fee is being
assessed to improve the goods movement infrastructure serving the
port, to reduce pollution from all forms of equipment, vehicles,
locomotives, and ships that operate at the port and bring containers
to and from the port.
(c) Beginning January 1, 2009, the port shall assess a user fee on
the owner of container cargo moving through the port not to exceed
thirty dollars ($30) per TEU. The port shall collect the fee at least
twice a year.
(1) The port shall remit one-half of the user fee to the Northern
California Congestion Fund. Upon appropriation, moneys deposited in
that fund shall be available for expenditure by the commission
exclusively for the purposes of funding projects that improve the
flow and efficiency of container cargo to and from the Port of
Oakland and to fund the administrative costs of this program. Moneys
deposited in that fund shall not be loaned or transferred to, or
allocated or appropriated in any other way to, the General Fund.
(2) The port shall remit one-half of the user fee to the Northern
California Mitigation Fund. Upon appropriation, moneys deposited in
that fund shall be available for expenditure by the board to mitigate
environmental pollution caused by the movement of cargo to and from
the port by commercial motor vehicles, oceangoing vessels, and rail,
and to fund the administrative costs of this program. Moneys
deposited in that fund shall not be loaned or transferred to, or
allocated or appropriated in any other way to, the General Fund.
(d) The port may contract with PierPass for the collection of the
user fee authorized pursuant to this section.
Article 3. Congestion Relief and Mitigation Relief Projects
1750. (a) Beginning January 1, 2008, the commission shall develop
a list of projects that would improve the overall efficiency of
container cargo movement to and from the Ports of Los Angeles and
Long Beach by improving the rail system and container transportation
systems that transport container cargo from and to those ports and
the ondock rail facilities at those ports. In the process for
selecting projects, the
commission shall consult with the transportation commissions for the
Counties of Los Angeles, Orange, Riverside, San Bernardino, and
Ventura, the Port of Los Angeles, the City of Los Angeles, the Port
of Long Beach, the City of Long Beach, and the Southern California
Association of Governments. The commission shall hold public hearings
to seek further input on developing these projects, with at least
one hearing at or near the Port of Los Angeles and the Port of Long
Beach.
(b) No later than September 1, 2008, the commission, at a public
hearing, shall finalize a list of projects that would improve the
overall efficiency of container cargo movement to and from the Ports
of Los Angeles and Long Beach by improving the rail system and
container transportation systems that transport container cargo from
and to those ports and the ondock rail facilities at those ports.
This will be the final list, of infrastructure projects at the Ports
of Los Angeles and Long Beach, eligible to be funded by the user fee
authorized pursuant to this chapter.
(c) Projects eligible to be on the final list shall not be used to
construct, maintain, or improve highways, unless the highway or road
improvement is part of a rail grade separation, or the highway
improvement is done to separate container cargo from motor vehicle
traffic by creating on ramps or off ramps for port container truck
traffic.
(d) In awarding funds pursuant to this section, the commission
shall give priority to those projects that have been designed to
measurably reduce air pollution and environmental impacts to local
communities, and to assist in attaining state and federal
air quality goals and enhance achieving and
maintaining state and federal air quality standards and enhancing
environmental performance, while addressing the overall
efficiency of container cargo movement.
(e) On January 1, 2009, and annually thereafter, the Ports of Long
Beach and Los Angeles shall report to the commission on the
implementation of the Final 2006 San Pedro Bay Clean Air Action Plan.
Each port shall report to the commission on whether the emission
reduction goals for the source specific categories have been achieved
as follows:
(1) Heavy-duty vehicles by 2011.
(2) Cargo handling equipment, 2010, 2012, and 2014.
(3) Harbor craft, 2008 and 2011.
(4) Locomotives, 2008, 2011, and 2014.
If any of the source specific emission reduction goals have not
been met, the commission shall not award funding to any project, and
the commission shall not fund any further projects until the source
specific emission reduction goals are achieved, other than projects
that have been awarded funding prior to this finding.
(f) For all construction projects funded pursuant to this section,
a contractor shall ensure that all mobile nonroad equipment used on
the project will be equipped with a California Air Resources Board
(CARB) verified diesel particulate filter that obtains at least an
85-percent reduction in emissions, unless any of the following
circumstances exists, and the contractor is able to provide proof
that any of these circumstances exists:
(1) A piece of specialized equipment is unavailable in a
controlled form within the state, including through a leasing
arrangement.
(2) A contractor has applied for incentive funds to put controls
on a piece of uncontrolled equipment planned for use on the project,
but the application is not yet approved, or the application has been
approved, but funds are not yet available.
(3) A contractor has ordered a control device for a piece of
equipment planned for use on the project, or has ordered a new piece
of controlled equipment to replace the uncontrolled equipment, but
that order has not been completed by the manufacturer or dealer, and
the contractor has attempted to lease controlled equipment, but no
dealer within 200 miles of the project has the controlled equipment
available for lease.
(g) Projects eligible to be considered by the commission include,
but are not limited to, all of the following:
(1) A project to separate at-grade crossings to reduce conflicts
between trains and motor vehicles in Los Angeles, Orange, Riverside,
and San Bernardino Counties, also known as the Alameda Corridor East
Project.
(2) A project to improve rail capacity by adding additional tracks
to existing rail lines in Los Angeles, Orange, Riverside, and San
Bernardino Counties.
(3) A project to separate at-grade rail crossings in San
Bernardino County, also known as the Colton crossing.
(4) A project to improve ondock rail infrastructure at the Ports
of Los Angeles and Long Beach.
(h) In determining which projects to select, the commission shall
also take into account the entire rail and trade corridor servicing
the Ports of Los Angeles and Long Beach.
(i) The commission shall only use the funds received from the
Southern California Congestion Fund to fund projects authorized
pursuant to this section.
(j) Once the projects on the final list are completed and fully
funded, the commission shall notify the Ports of Los Angeles and Long
Beach that the infrastructure projects are completed and to no
longer collect the one-half of the user fee for infrastructure
projects. The commission may also make a finding that a project on
the final list has either been funded by another source or is no
longer worthy of funding.
1751. (a) Beginning January 1, 2008, the commission shall develop
a list of projects that would improve the overall efficiency of
container cargo movement to and from the Port of Oakland by improving
the rail and container transportation systems that transport
container cargo from and to that port and the ondock rail facilities
at that port. In the process for selecting projects, the commission
shall consult with the transportation commissions for the Counties of
Alameda and Contra Costa, the Port of Oakland, the City of Oakland,
and the Bay Area Association of Governments. The commission shall
hold public hearings to seek further input on developing these
projects, including at least one hearing in the City of Oakland.
(b) No later than September 1, 2008, the commission, at a public
hearing, shall finalize a list of projects that would improve the
overall efficiency of container cargo movement to and from the Port
of Oakland by improving the rail and container transportation systems
that transport container cargo from and to that port and the ondock
rail facilities at that port. This will be the final list, of
infrastructure projects at the Port of Oakland, eligible to be funded
by the user fee authorized pursuant to this chapter.
(c) Projects eligible to be on the final list shall not be used to
construct, maintain, or improve highways, unless the highway or road
improvement is part of a rail grade separation, or the highway
improvement is done to separate container cargo from motor vehicle
traffic by creating on ramps or off ramps for port container truck
traffic.
(d) In awarding funds pursuant to this section, the commission
shall give priority to those projects that have been designed to
measurably reduce air pollution and environmental impacts to local
communities, and to assist in attaining state and federal
air quality goals and enhance achieving and
maintaining state and federal air quality standards and enhancing
environmental performance, while addressing the overall
efficiency of container cargo movement.
(e) For all construction projects funded pursuant to this section,
a contractor shall ensure that all mobile nonroad equipment used on
the project will be equipped with a California Air Resources Board
(CARB) verified diesel particulate filter that obtains at least an 85
percent reduction in emissions, unless any of the following
circumstances exists, and the contractor is able to provide proof
that any of these circumstances exists:
(1) A piece of specialized equipment is unavailable in a
controlled form within the state, including through a leasing
arrangement.
(2) A contractor has applied for incentive funds to put controls
on a piece of uncontrolled equipment planned for use on the project,
but the application is not yet approved, or the application has been
approved, but funds are not yet available.
(3) A contractor has ordered a control device for a piece of
equipment planned for use on the project, or has ordered a new piece
of controlled equipment to replace the uncontrolled equipment, but
that order has not been completed by the manufacturer or dealer, and
the contractor has attempted to lease controlled equipment, but no
dealer within 200 miles of the project has the controlled equipment
available for lease.
(f) Projects eligible to be considered by the commission include,
but are not limited to, projects to separate at-grade crossings to
reduce conflicts between trains and motor vehicles and ondock rail
improvements at the Port of Oakland.
(g) In determining which projects to select, the commission shall
also take into account the entire rail and trade corridor servicing
the Port of Oakland.
(h) The commission shall only use the funds received from the
Northern California Congestion Fund to fund projects authorized
pursuant to this section.
(i) Once the projects on the final list are completed and fully
funded, the commission shall notify the Port of Oakland, that the
infrastructure projects are completed and to no longer collect the
one-half of the user fee for infrastructure projects. The commission
may also make a finding that a project on the final list has either
been funded by another source or is no longer worthy of funding.
1752. (a) Beginning January 1, 2008, the board shall develop a
list of projects that reduce air pollution caused by the movement of
container cargo to and from the Ports of Los Angeles and Long Beach.
The projects on the list shall be consistent with the Emission
Reduction Plan (ERP) adopted April 2006, and shall be designed to
reduce air pollution at those ports in order to reach
federal air quality attainment achieve and maintain
state and federal air quality standards and to meet the ERP's
goals for 2010, 2015, and 2020, as well as the goals for the Air
Quality Management Plan prepared by the South Coast Air Quality
Management District, and the San Pedro Bay Clean Air Action Plan. In
developing the list, the board shall consult with the South Coast Air
Quality Management District, the Gateway Council of Governments, and
the Ports of Los Angeles and Long Beach. The board shall hold public
hearings before developing the list of projects, with at least one
hearing being held at or near the Ports of Los Angeles and Long
Beach.
(b) The board shall work with the South Coast Air Quality
Management District, the Port of Los Angeles, and the Port of Long
Beach in order to ensure that projects within the Air Quality
Management Plan prepared by the South Coast Air Quality Management
District and within the San Pedro Bay Clean Air Action Plan are
completed or implemented. The board may provide funding to the
district in order to implement the Air Quality Management Plan
prepared by the district, and to the ports in order to implement the
San Pedro Bay Clean Air Action Plan.
(c) No later than September 1, 2008, the board, at a public
hearing, shall finalize a list of projects that meet the ERP's goals
for 2010, 2015, and 2020, in order to meet federal air quality
attainment standards.
(d) The board may determine, at a public hearing, that the
emission reduction goals for 2020 have been met or exceeded and that
federal air quality standards have been met in the South Coast Air
Basin, including full implementation of the Air Quality Management
Plan prepared by the South Coast Air Quality Management District.
Once the determination is made, and ensuring that all approved
projects have been funded, the board shall notify the Port of Los
Angeles of this determination, and the Port of Los Angeles shall no
longer collect the one-half of the user fee for air quality projects
meant to reach these goals and federal air quality attainment
standards.
(e) The board may determine, at a public hearing, that the
emission reduction goals for 2020 have been met or exceeded and that
federal air quality standards have been met in the South Coast Air
Basin, including full implementation of the Air Quality Management
Plan prepared by the South Coast Air Quality Management District.
Once the determination is made, and ensuring that all approved
projects have been funded, the board shall notify the Port of Long
Beach of this determination, and the Port of Long Beach shall no
longer collect the one-half of the user fee for air quality projects
meant to reach these goals and federal air quality attainment
standards.
(f) The board shall only use the funds received from the Southern
California Mitigation Fund to fund projects authorized pursuant to
this section.
1753. (a) Beginning January 1, 2008, the board shall develop a
list of projects that reduce air pollution caused by the movement of
container cargo to and from the Port of Oakland. The projects on the
list shall be consistent with the Emission Reduction Plan (ERP)
adopted April 2006, and shall be designed to reduce air pollution at
the port in order to reach federal air quality attainment
achieve and maintain state and federal air quality
standards and to meet the ERP's goals for 2010, 2015, and 2020.
In developing the list, the board shall consult with the Bay Area
Air Quality Management District and the Port of Oakland.
(b) If the Bay Area Air Quality Management District and the Port
of Oakland develop a plan to reduce emissions from the Port of
Oakland, then the board shall work with the district and the port in
order to ensure that projects within the plan are completed or
implemented. The board may provide funding to the district or the
port in order to achieve the goals of the plan.
(c) No later than September 1, 2008, the board, at a public
hearing, shall finalize a list of projects that meet the ERP's goals
for 2010, 2015, and 2020, in order to meet federal air quality
attainment standards.
(d) The board may determine, at a public hearing, that the
emission reduction goals for 2020 have been met or exceeded and that
federal air quality standards have been met within the Bay Area Air
Quality Management District, and once the determination is made, and
ensuring that all approved projects have been funded, the board shall
notify the Port of Oakland of this determination, and the Port of
Oakland shall no longer collect the one-half of the user fee for air
quality projects meant to reach these goals and federal air quality
attainment standards.
(e) The board shall only use the funds received from the Northern
California Mitigation Fund to fund projects authorized pursuant to
this section.
SEC. 4. Section 1760 of the Harbors and Navigation Code is amended
and renumbered to read:
1730. (a) For purposes of this section, "council" means the
California Marine and Intermodal Transportation System Advisory
Council, a regional subunit of the Marine Transportation System
National Advisory Council chartered by the federal Secretary of
Transportation under the Federal Advisory Council Act (P.L. 92-463).
(b) The council is requested to do all of the following:
(1) Meet, hold public hearings, and compile data on issues that
include, but need not be limited to, all of the following:
(A) The projected growth of each maritime port in the state.
(B) The costs and benefits of developing a coordinated state
program to obtain federal funding for maritime port growth, security,
and congestion relief.
(C) Impacts of maritime port growth on the state's transportation
system.
(D) Air pollution caused by movement of goods through the state's
maritime ports, and proposed methods of mitigating or alleviating
that pollution.
(E) Maritime port security, including, but not limited to,
training, readiness, certification of port personnel, exercise
planning and conduct, and critical marine transportation system
infrastructure protection.
(F) A statewide plan for continuing operation of maritime ports in
cooperation with the United States Coast Guard, the federal
Department of Homeland Security, the Office of Emergency Services,
the state Office of Homeland Security, and the California National
Guard, consistent with the state's emergency management system and
the national emergency management system, in the event of a major
incident or disruption of port operations in one or more of the state'
s maritime ports.
(G) State marine transportation policy, legislation, and planning;
regional infrastructure project funding; competitiveness;
environmental impacts; port safety and security; and any other
matters affecting the marine transportation system of the United
States within, or affecting, the state.
(2) Identify all state agencies that are involved with the
development, planning, or coordination of maritime ports in the
state.
(3) Identify other states that have a statewide port master plan
and determine whether that plan has assisted those states in
improving their maritime ports.
(4) Compile all information obtained pursuant to paragraphs (1) to
(3), inclusive, and submit its findings in a report to the
Legislature not later than January 1, 2006. The report should
include, but need not be limited to, recommendations on methods to
better manage the growth of maritime ports and address the
environmental impacts of moving goods through those ports.
(c) The activities of the council pursuant to this section shall
not be funded with appropriations from the General Fund.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.