BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1431
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          Date of Hearing:   April 27, 2009

                                   Mike Eng, Chair
                     AB 1431 (Hill) - As Amended:  April 14, 2009
          SUBJECT  :  Port of Oakland:  Emission reduction strategies

           SUMMARY :  Establishes emission reduction strategies for the Port  
          of Oakland (Port).  Specifically,  this bill  :  

          1)Requires the Port and entities involved in goods movement at  
            the Port to establish emission reduction strategies that are  
            no less stringent than emission reduction strategies employed  
            at the Port of Los Angeles and the Port of Long Beach (San  
            Pedro Ports).  

          2)Defines "no less stringent" to mean achieving a comparable  
            quantity of emissions reductions as achieved by the separate  
            clean air action plans of the San Pedro Ports.  

          3)Requires the Bay Area Air Quality Management District (BAAQMD)  
            to determine, after consultation with the South Coast Air  
            Quality Management District (South Coast) and the California  
            Air Resources Board (CARB), whether the Port and the entities  
            involved in goods movement at the Port have established  
            emission reduction strategies that are no less stringent than  
            those employed by the San Pedro Ports.  

           EXISTING LAW  :  

          1)Establishes the California Port Community Air Quality Program  
            in the BAAQMD and South Coast.  The program requires those  
            districts to provide grants to offset the advanced  
            introduction costs of eligible projects that reduce onroad  
            emissions of particulate matter within communities adjacent to  
            marine terminals or ports within the jurisdiction of those  

          2)Establishes the Port under the Oakland City Charter in 1927,  
            as an autonomous, self-supporting department of the City of  
            Oakland that manages and operates a container seaport, a  
            passenger/cargo/general aviation airport, and waterfront  
            property for commercial and recreational purposes.  Under the  
            governance of a seven-member Board of Port Commissioners  


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            nominated by the Mayor of Oakland and appointed by the City  
            Council, the Port's Executive Director, Deputy Executive  
            Director and staff operate three revenue-producing divisions  
            (Maritime, Aviation and Commercial Real Estate).  The Port  
            occupies 19 miles of waterfront on the eastern shore of San  
            Francisco Bay with 771 acres devoted to maritime activities  
            and another 3,000 acres devoted to aviation activities.  The  
            Port owns, manages, and markets seaport facilities on San  
            Francisco Bay and the Oakland Estuary.  The seaport is the  
            fifth busiest in the nation and in the top 20 in the world in  
            terms of annual container traffic.  The Port currently has  
            eight operating marine terminals with 20 deep water berths.   
            The Port owns and operates Oakland International Airport and  
            markets its facilities to tenants, including airlines and air  
            cargo companies.  The airport serves more than 14 million  
            passengers and handles more than 1.4 billion pounds of cargo  

          3)Authorizes, through the enactment of Proposition 1B as  
            approved by the statewide voters in November 2006, the state  
            to sell approximately $20 billion of general obligation bonds  
            to fund transportation projects to relieve congestion, improve  
            the movement of goods, improve air quality, and enhance the  
            safety and security of the transportation system.  Of the $20  
            billion, allocates $1 billion to the California Air Resources  
            Board (ARB) for emission reductions, not otherwise required by  
            law or regulation, from activities related to the movement of  
            freight along California's trade corridors (commencing at the  
            state's airports, seaports and land ports of entry).  Provides  
            funds for the replacement, repower, or retrofit of heavy-duty  
            trucks, locomotives, commercial harbor craft, ocean-going  
            vessels related to freight, and cargo-handling equipment with  
            cleaner technology alternatives.  The Port environs qualify as  
            one of four targeted freight corridors for expenditure of the  
            $1 billion.  

          4)Establishes the Carl Moyer Memorial Air Quality Standards  
            Attainment Program (Carl Moyer program), which is administered  
            by the State Air Resources Board, to provide grants to offset  
            the incremental cost of eligible projects that reduce  
            emissions of air pollutants from sources in the state. Under  
            the Carl Moyer program, the state board is authorized to  
            provide funding for, among other things, eligible heavy-duty  
            fleet modernization projects, including a project that  
            replaces an old engine or vehicle with a newer engine or  


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            vehicle certified to more stringent emissions standards than  
            the engine or vehicle being replaced.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  

           Background  :  The author contends that his bill "would cut air  
          pollution coming from thousands of trucks, ships, trains, and  
          cargo handling equipment associated with the Port of Oakland.   
          AB 1431 seeks to work at creating a long-term and sustainable  
          solution that addresses the local public health impacts of  
          commercial shipping activities associated with the Port of  
          Oakland.  Residents living in the shadow of the Port of Oakland  
          can expect to die, on average, more than a decade before other  
          residents in the Bay, appallingly, this gap may be increasing.   
          One of the underlying causes of this disturbingly large health  
          disparity is the extremely high rates of respiratory disease,  
          primarily asthma, in West Oakland.  Diesel pollution is well  
          known to be hazardous to human health.  Groups at particular  
          risk include workers in diesel industries, such as trucking and  
          rail, and communities located near major sources of diesel  
          pollution, such as ports and freeways.  While the Port of  
          Oakland approved the MAQIP which sets the master plan of air  
          quality earlier this month, but the port's plan ultimately does  
          little more than reiterate a statewide goal of 85% reduction in  
          health risk by 2020.  The commissioners refused to act on the  
          recommendations of many task force members (including two of the  
          four co-chairs) and all regulatory agencies to include  
          measurable programs to achieve clean air goals."  

           MAQIP  :  According to the Port, the MAQIP was developed in  
          collaboration with a task force of diverse stakeholders, to  
          reduce criteria pollutants, notably diesel particulate matter,  
          associated with maritime (seaport) activities at the Port.  The  
          MAQIP, recently adopted on April 7, 2009, is the Port's master  
          plan to reduce air pollution from both mobile and stationary  
          on/near-shore and off-shore sources at the seaport.  The MAQIP  
          not only supports current and future state and local emission  
          reduction requirements, but enhances these requirements through  
          early implementation goals and by targeting emission reductions  
          that exceed legally mandated requirements.  Further, it builds  
          upon the Port Maritime Air Quality Policy Statement ("Port Air  
          Quality Statement"), adopted by the Board of Port Commissioners  
          in March 2008.  The Port Air Quality Statement sets a goal of  


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          reducing the community cancer health risk related to exposure to  
          diesel particulate matter (PM) emissions associated with the  
          Port's maritime operations by 85% from 2005 to 2020, through all  
          practicable and feasible means.  It also commits the Port to  
          implement early action emissions reduction measures to reduce  
          the duration of the public's exposure to emissions that may  
          cause health risks, through all practicable and feasible means.   
          The MAQIP relies on the 2005 seaport air emissions inventory  
          (completed in 2007, and revised in 2008) and 2008 human health  
          risk assessment studies prepared by the Port and ("CARB"),  
          respectively, to establish baseline emissions and to set  
          emission reduction goals.  

           West Oakland Risk Assessment  :  The Port partnered with the  
          BAAQMD, CARB, and the Union Pacific Railroad to estimate the  
          health risks from diesel exhaust in West Oakland.  Draft results  
          of the comprehensive Health Risk Assessment (HRA) were made  
          available in March 2008 and take into account emissions  
          generated from:  Diesel trucks and buses; locomotives (cargo and  
          passenger trains); ships (cargo and cruise); harbor craft (e.g.,  
          tugs, ferries, fishing vessels); construction equipment; cargo  
          handling equipment; stationary sources.  

          According to BAAQMD, the study determined that "the West Oakland  
          community is exposed to diesel PM ambient concentrations that  
          are almost three times higher than the average background diesel  
          PM in the San Francisco Bay Area.  The estimated lifetime  
          potential cancer risk for residents of West Oakland from  
          exposure to diesel PM is about 1,200 excess cancers per million  
          over a 70 year lifespan.  On-road heavy-duty trucks result in  
          the largest contribution to the overall potential cancer risk  
          levels in the West Oakland community, followed by ships, harbor  
          craft, locomotives, and cargo handling equipment?CARB has  
          adopted numerous regulations to reduce diesel PM emissions and  
          expects to adopt additional rules.  These rules will  
          significantly reduce cancer and noncancer risk in West Oakland  
          and other communities affected by diesel PM?Even with the  
          adoption of CARB's proposed regulations, BAAQMD is committed to  
          further reducing diesel PM in the Bay Area beyond those measures  
          prescribed by CARB.  To achieve this objective, the BAAQMD  
          developed a mitigation action plan that involves the communities  
          and businesses to seek grant funding for diesel emission  
          reduction projects and offers decision-based tools to assess  
          potential health risks associated with proposed land use  


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           San Pedro Ports Clean Air Action Plan (CAAP)  :  Adopted by the  
          San Pedro Ports, the CAAP addresses every category of  
          port-related emission sources - ships, trucks, trains,  
          cargo-handling equipment and harbor craft - and outlines  
          specific, detailed strategies to reduce emissions from each  
          category.  The measures that will be implemented under the CAAP  
          are expected to eliminate more than 47 % of diesel PM emissions  
          from port-related sources within the next five years and  
          significantly reduce associated health risks.  Smog-forming  
          nitrogen oxide (NOx) emissions will be reduced by more than 45  
          %.  Measures outlined in the CAAP will also result in the  
          reduction of sulfur oxides (SOx) by 52 %.  It is expected that  
          in five years, under the CAAP, diesel PM from all port-related  
          sources would be reduced by a total of 1,200 tons per year; NOx  
          emissions would be reduced by 12,000 tons per year; and SOx  
          emissions would be reduced by 8,900 tons a year.  

           BAAQMD  :  Despite its Executive Officer having served as one of  
          four co-chairs of the MAQIP advisory Task Force, the BAAQMD  
          voted to oppose the adoption of the MAQIP unless the Port  
          adopted key implementation steps for control measures as  

          1)The adoption of a container use fee of no less than $12.50 per  
            loaded 20-foot equivalent unit (TEU).  

          2)A policy to expend the first three years of revenues from the  
            container use fee on air quality improvement efforts at the  
            Port of Oakland that will reduce health risk in the western  
            Oakland area.  

          3)A policy to expend the first two years of revenue exclusively  
            on assisting trucking firms and individual truck owners doing  
            business at the Port of Oakland in purchasing used and new  
            trucks that are compliant with the CARB emission standards for  
            2007 and newer model year engines.  

          4)A policy to expend the third and subsequent years of revenue  
            from the use fee on clean trucks and infrastructure for shore  
            power systems for marine vessels docking at the marine  

          5)The adoption by January 1,2010 of an incentive program for the  
            use of marine diesel oil with a sulfur content less that 0.5%  


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            by weight in ocean-going vessels transiting to or from, or  
            berthing at, the Port of Oakland between January l, 2010 and  
            December 31, 2011.  

          As the BAAQMD is the bill's sponsor, it would appear that the  
          impetus for this bill could be attributed to BAAQMD and other  
          task force members' inability to persuade the Port to adopt the  
          above and other voluntary emission reduction strategies.  

           SUPPORT  :  In support of this bill, the BAAQMD indicates that "AB  
          1431 would simply require that the Port of Oakland begin to  
          address the public health burden it places on the region.  This  
          bill would require Oakland to have an emissions reduction  
          strategy that is no less stringent than the strategies of the  
          San Pedro Bay ports, the Ports of Long Beach and Los Angeles.   
          The bill would require Oakland to achieve a comparable  
          percentage reduction in emissions.  The
          contrast between Oakland and its southern California competition  
          is stark.  Whether it is cleaner, less polluting fuels in the  
          boats, self-imposed container fees to clean up the trucks,  
          vessel speed reductions, or aggressive action on shore power,  
          Oakland has sat idle while southern California has acted.  Long  
          Beach and Los Angeles have taken multiple steps beyond existing  
          State regulations to cut pollution.  Oakland has not only done  
          nothing to go beyond the few requirements imposed by the State,  
          but has announced in its own air quality plan that it does not
          even anticipate full compliance with these minimal requirements.  
           In fact, Oakland has lobbied the Administration, the  
          Legislature, and CARB to be exempted from both current and  
          possible future regulatory requirements.  For literally years,  
          we have worked with the Port and other stakeholders to try to  
          collaboratively cut emissions from the goods movement at the  
          Port.  Unfortunately, these voluntary efforts have not yielded  
          either the pollution reductions that adjacent communities  
          deserve or that southern California communities have begun to  
          receive.  The Port's air quality planning has been long on  
          process but short on defined, measurable, specific commitments.   
          The Oakland Tribune Editorial Board, United States Environmental  
          Protection Agency, CARB, Alameda County Public Health  
          Department, a host of local community and environmental groups,  
          national environmental organizations, the BAAQMD, and others all  
          found the results to be unacceptable.  We have no choice but to  
          ask the Legislature to address this problem."  

           OPPOSITION  :  In opposition to this bill, the Port indicates that  


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          it adopted, on March 18, 2009, an aggressive air quality goal to  
          reduce community health risk related to diesel PM emissions from  
          the maritime sector by 85% by the year 2020.  "This emissions  
          reduction goal sets a very high bar for the Port of Oakland, its  
          tenants and business partners to improve public health in our  
          local community by all practical and feasible means.   CARB and  
          the BAAQMD, as well as many environmental and community  
          stakeholders, have lauded the Board of Port Commissioners  
          (Board) for its adoption of this ambitious public health goal.  
          ?More recently, on April 7, 2009, the Board approved the MAQIP.   
          As you may know, the MAQIP is an air quality master plan that  
          provides both near-term (Year 2012) as well as longer-term (Year  
          2020) emission reduction goals to achieve a healthier community  
          while promoting a sustainable economic future at the Port.  This  
          policy framework provides comprehensive and stable guidance upon  
          which all stakeholders can rely to achieve the MAQIP's air  
          quality improvement goals, and includes specific emission  
          reduction measures for all mobile source categories involved in  
          goods movement at the Port of Oakland, including those for  
          ocean-going vessels, harbor craft, cargo-handling equipment,  
          trucks, locomotives, and harbor craft?.As an immediate result of  
          approval of the MAQIP, the Board directed implementation of  
          near-term emission reduction strategies, including support for  
          the CARB Drayage Truck Regulation.  The Board also authorized  
          the Port and BAAQMD to enter into a funding agreement that will  
          allow BAAQMD to use $2 million of funds previously provided to  
          BAAQMD to fund retrofit devices on drayage trucks to meet the  
          January 1, 2010, CARB drayage truck deadline, with a provision  
          for an additional $3 million to further support drayage truck  
          retrofit efforts or other air quality improvements.  Further, on  
          April 7, the Board authorized an additional $154,000 to retrofit  
          10 Port-owned trucks with diesel particulate filters.   
          Previously, the Board approved an accelerated schedule to adopt  
          the Port's comprehensive truck management program by June 2,  

          Given the almost two years of public consultation in developing  
          the MAQIP, we are deeply concerned with any attempts to have the  
          extensive public consultation process which resulted in this  
          plan replaced by an administrative and/or legislative  
          requirement that the Port pursue any and all emissions  
          reductions strategies that may be pursued by our counterparts at  
          the Ports of Los Angeles and Long Beach, including efforts not  
          required by law or regulation.  This requirement dismisses any  
          concerns about cost-effectiveness, technological feasibility,  


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          legal exposure, and the markedly different financial  
          circumstances and market position between the Port of Oakland  
          and the San Pedro ports as we all strive to clean the air in our  
          respective communities and meet the aggressive regulatory  
          compliance deadlines at the state and federal levels?.While  
          well-intentioned, this legislation will certainly divert scarce  
          Port resources from the important task of implementing MAQIP's  
          programs and cleaning up the air."  

           COMMITTEE SUGGESTED AMENDMENTS  :  This bill requires PM emission  
          reductions to be achieved in quantities comparable to that  
          received by the San Pedro Ports.  However, to expect equal  
          quantities of emission reductions from Oakland in comparison the  
          quantities of emission reductions received from the  
          implementation measures by the San Pedro Ports is ill-conceived,  
          especially as the business activities at the San Pedro Ports are  
          significantly more than the operations at Oakland.  Accordingly,  
          the bill should be amended as follows:  

              On Page 2, lines 8-9, delete:  quantity of emissions  

              And replace with the following:  percentage reduction in  
              emissions on a comparable schedule
           Related bills  :  SB 974 (Lowenthal) of 2006, would have  
          authorized a fee of up to $30 on each shipping container  
          processed at the Ports of Los Angeles, Long Beach, and Oakland,  
          to fund congestion relief and air pollution mitigation projects  
          related to the ports.  That bill was vetoed by the Governor who  
          indicated that Proposition 1B provides funds for port related  
          air quality emission reductions as well as the impact upon  

          AB 1101 (Oropeza) of 2006, would have established requirements  
          that diesel magnet sources, including ports, must meet in order  
          to comply with the Air Toxics "Hot Spots" Information and  
          Assessment Act of 1987.  That bill died on the Senate floor.  

          SB 764 ( Lowenthal) of 2006, would have required the Ports of  
          Long Beach and Los Angeles to establish air quality emission  
          baseline levels.  That bill died in the Assembly Appropriations  



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          Bay Area Air Quality Management District (sponsor)  
          American Lung Association of California  
          Breathe California  
          California Natural Gas Vehicle Coalition  
          California League of Conservation Voters  
          Coalition for Clean Air  
          Natural Resources Defense Council
          Pacific Institute  
          Planning and Conservation League
          Sierra Club California  
          Union of Concerned Scientists
          West Oakland Environmental Indicators Project  
          West Oakland Neighbors 


           Bay Planning Coalition  
          BNSF Railway Company  
          Bridgeport Transportation and Warehousing, Inc.  
          California Chamber of Commerce
          California Retailers Association
          California Short Line Railroad Association  
          California Teamsters Public Affairs Council
          GSC Logistics, Inc.
          Matson Navigation Company  
          NYK Line (North America) Inc.
          Pacific Merchant Shipping Association  
          Port of Oakland  
          The California Railroad Industry
          The California Trade Coalition  
          Union Pacific Railroad
          Waterfront Coalition  
          Yang Ming (America) Corporation

          \Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093