BILL NUMBER: AB 2042	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 14, 2004
	AMENDED IN ASSEMBLY  MAY 3, 2004
	AMENDED IN ASSEMBLY  APRIL 1, 2004

INTRODUCED BY   Assembly Member Lowenthal

                        FEBRUARY 17, 2004

    An act to add Section 1740 to the Harbors and Navigation
Code,   An act to add Sections 40459.1, 40459.2, and
40459.3 to the Health and Safety Code, relating to ports. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2042, as amended, Lowenthal.  Ports:  Port of Los Angeles:
Port of Long Beach:  air pollution.
   (1) Existing law provides for the regulation of ports and harbors.
  Existing law, the Lewis-Presley Air Quality Management Act,
establishes the South Coast Air Quality Management District 
(south coast district) as the sole and exclusive local agency
within those portions of the Counties of Los Angeles, Orange,
Riverside, and San Bernardino that are included within the South
Coast Air Basin.
   This bill would require the south coast district to
establish a baseline for air quality in the Port of Long Beach that
is based on the port's emission inventory for 2002, and a baseline
for air quality in the Port of Los Angeles that is based on that port'
s emission inventory for 2001, covering emissions from oceangoing
vessels and harbor craft, cargo handling equipment, locomotives, and
commercial vehicles, as defined.  The bill would authorize the
baseline to include only oxides of nitrogen, particulate matter,
sulfur oxide, and total hydrocarbons.
   The bill would require the City of Long Beach, for the Port of
Long Beach, and the City of Los Angeles, for the Port of Los Angeles,
to require growth and operations at its port to be limited or
controlled in a manner that prevents air pollution at the port from
exceeding the specified baseline.  The bill would require each of
those cities, on March 1, 2006, and every March 1 thereafter, to
report to the district regarding that city's compliance with this
requirement, including an accounting of the city's programs and
efforts that are directed towards that compliance.
   The bill would authorize the district to impose a fee on the City
of Long Beach and the City of Los Angeles to cover the district's
costs of administering these provisions.
   The bill would authorize the Port of Los Angeles and the Port of
Long Beach to establish an emission reduction credit trading program
or an emission offset program for the sources covered by the
baseline, if the program is approved by the district or the State Air
Resources Board.
   The bill would establish a state-mandated local program by
imposing new duties upon those local entities   , on or
before September 1, 2005, to establish a baseline for air quality for
the Port of Los Angeles and the Port of Long Beach.  The air quality
baseline would be based on data collected by the district regarding
the level of emissions in those ports during 2004 from oceangoing
vessels and harbor craft, cargo handling equipment, rail locomotives,
and commercial motor vehicles, as defined.  The air quality baseline
would also be based on data collected by the district regarding the
emissions levels in those ports during 2004 from oxides of nitrogen,
carbon monoxide, particulate matter, and sulfur dioxide.
   The bill would require the south coast district, the State Air
Resources Board (state board), the Port of Los Angeles, and the Port
of Long Beach, in consultation with the federal Environmental
Protection Agency, industry stakeholders, community and homeowner
groups near the ports of Los Angeles and Long Beach, and
environmental organizations, to develop a Memorandum of Agreement
(MOA) to implement emission control measures related to operations at
each of those ports.
   The bill would require the MOA to include certain provisions,
including (a) a requirement that, on or before January 1, 2006, and
on or before January 1 of each year thereafter, the level of air
pollution at the Port of Los Angeles and the Port of Long Beach not
exceed the specified baseline; (b) a requirement that the Port of
Long Beach and the Port of Los Angeles reimburse the board for all
costs incurred as a result of developing the MOA; and (c) a
requirement that the Port of Los Angeles and the Port of Long Beach
waive any claim to reimbursement by the state for costs incurred as a
result of developing and implementing the MOA.
   The bill would require the state board to report to the
Legislature on January 1, 2006, and on January 1 of each year
thereafter regarding the development and implementation of the MOA.
   The bill would require the ports of Los Angeles and Long Beach, if
the MOA has not been entered into by all of the necessary parties on
or before September 1, 2005, to develop a baseline for air quality
for each port, based on data collected by the port regarding the
level of emissions in the port during 2004 from certain sources and
regarding the level of emissions in each port during 2004 from
certain air pollutants.  The bill would require the ports to submit
the baselines to the south coast district for approval.  The bill
would require the ports, on or before January 1, 2006, and on or
before January 1 of each year thereafter, to limit their growth and
operations at the in a manner that prevents the level of air
pollution at each port from exceeding the specified baseline.  The
bill would require the ports, on March 1, 2006, and on March 1 of
each year thereafter, to report to the district regarding the port's
compliance with the limitation requirement relating to port growth
and operations, including an accounting of the port's programs and
efforts that are directed towards that compliance.  The bill would
authorize the ports to establish an emission reduction credit trading
program or an emission offset program for specified pollution
sources, if the program is approved by either the district or the
board.  To the extent that these requirements would impose additional
duties upon the ports and the south coast district, the bill would
establish a state-mandated local program  .
  (2) 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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature hereby finds and declares all of the
following:
   (a) Exhaust fumes from diesel fuel are known to cause cancer.
   (b) A landmark study conducted by the South Coast Air Quality
Management District, the "Multiple Air Toxics Exposure Study," found
that 70 percent of all serious health risks attributable to mobile
pollution sources are attributable to diesel engine exhaust.
   (c) The federal Clean Air Act (42 U.S.C. Sec. 7401, et seq.)
requires certain regions that have high levels of air pollution
demonstrate that construction of new highways will not worsen air
pollution.  
  SEC. 2.  Section 1740 is added to the Harbors and Navigation Code,
to read:
   1740.  (a) (1) The South Coast Air Quality Management District
shall establish a baseline for air quality in the Port of Long Beach
that is based on the port's emission inventory for  2002.
   (2) The district shall establish a baseline for air quality in the
Port of Los Angeles that is based on the port's emission inventory
for  2001.
   (3) The baselines established by the South Coast Air Quality
Management District under this  subdivision shall only cover
emissions from oceangoing vessels and harbor craft, cargo handling
equipment, locomotives, and commercial vehicles, as defined in
subdivision (b) of Section 15210 of the Vehicle Code.
   (4) The baseline established by the district pursuant to
subdivision (a) may only include emissions of the following air
contaminants:
   (A) Oxides of nitrogen.
   (B) Particulate matter.
   (C) Sulfur oxide.
   (D) Total hydrocarbons.
   (b) The City of Long Beach, for the Port of Long Beach, and the
City of Los Angeles, for the Port of Los Angeles, shall require
growth and operations at its port to be limited or controlled in a
manner that prevents air pollution at the port from exceeding the
baseline established under subdivision (a).
   (c) On March 1, 2006, and every March 1 thereafter, the City of
Long Beach and the City of Los Angeles shall report to the South
Coast Air Quality Management District regarding the city's compliance
with subdivision (b), including, but not limited to, an accounting
of the city's programs and efforts that are directed towards that
compliance.
   (d) The South Coast Air Quality Management District may impose a
fee on the City of Long Beach and the City of Los Angeles to cover
the costs of administering this section, in an amount that does not
exceed those costs.
   (e) The Port of Los Angeles and the Port of Long Beach may
establish an emission reduction credit trading program or an emission
offset program for the sources described in paragraph (3) of
subdivision (a), if the program is approved by either the South Coast
Air Quality Management District or the State Air Resources Board.
   (f) The provisions of this section are intended to grant only
oversight authority to the South Coast Air Quality Management
District with respect to the baselines established by the Port of
Long Beach and the Port of Los Angeles based on their respective
emission inventories.
  SEC. 3.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
 
  SEC. 2.  Section 40459.1 is added to the Health and Safety Code, to
read:
   40459.1.  (a) (1) On or before September 1, 2005, the south coast
district shall establish a baseline for air quality for the Port of
Los Angeles and the Port of Long Beach.
   (2) The air quality baseline shall be based on data collected by
the south coast district regarding the level of emissions in those
ports during 2004 from the following sources:
   (A) Oceangoing vessels and harbor craft.
   (B) Cargo handling equipment.
   (C) Rail locomotives.
   (D) Commercial motor vehicles, as defined in subdivision (b) of
Section 15210 of the Vehicle Code.
   (3) The air quality baseline shall be based on data collected by
the south coast district regarding the emissions levels in those
ports during 2004 from the following air pollutants:
   (A) Oxides of nitrogen (NOx).
   (B) Carbon monoxide(CO).
   (C) PM2.5 and PM10, as defined in Section 39614.
   (D) Particulate matter from diesel fuel.
   (E) Sulfur dioxide (SO2).
   (b) On or before September 1, 2005, the south coast district, the
state board, the Port of Los Angeles, and the Port of Long Beach, in
consultation with the federal Environmental Protection Agency,
industry stakeholders, community and homeowner groups near the ports
of Los Angeles and Long Beach, and environmental organizations, shall
develop a Memorandum of Agreement (MOA) to implement emission
control measures related to operations at each of those ports.
   (c) The MOA shall include all of the following provisions:
   (1) A requirement that, on or before January 1, 2006, and on or
before January 1 of each year thereafter, the level of air pollution
at the Port of Los Angeles and the Port of Long Beach not exceed the
baseline established under subdivision (a).
   (2) Enforcement provisions that are within the jurisdiction of the
implementing agencies.
   (3) A process for public input and comment on any proposal prior
to final agreement.
   (4) A requirement that the Port of Long Beach and the Port of Los
Angeles reimburse the state board for all costs incurred as a result
of developing the MOA.
   (5) A requirement that the Port of Los Angeles and the Port of
Long Beach waive any claim to reimbursement by the state for costs
incurred as a result of developing and implementing the MOA.
   (d) The state board shall report to the Legislature on January 1,
2006, and on January 1 of each year thereafter, regarding the
development and implementation of the MOA.
  SEC. 3.  Section 40459.2 is added to the Health and Safety Code, to
read:
   40459.2.  If the Memorandum of Agreement required under Section
40459.1 has not been entered into by all of the necessary parties on
or before September 1, 2005, all of the following shall apply on that
date:
   (a) (1) The Port of Los Angeles shall develop a baseline for air
quality for the port.
   (2) The air quality baseline shall be based on data collected by
the port regarding the level of emissions in the port during 2004
from the following sources:
   (A) Oceangoing vessels and harbor craft.
   (B) Cargo handling equipment.
   (C) Rail locomotives.
   (D) Commercial motor vehicles, as defined in subdivision (b) of
Section 15210 of the Vehicle Code.
   (3) The air quality baseline shall be based on data collected by
the port regarding the level of emissions in the port during 2004
from the following air pollutants:
   (A) Oxides of nitrogen (NOx).
   (B) Carbon monoxide (CO).
   (C) PM2.5 and PM10, as defined in Section 39614.
   (D) Particulate matter from diesel fuel.
   (E) Sulfur dioxide (SO2).
   (4) The Port of Los Angeles shall submit the baseline developed by
it to the south coast district for approval.
   (b) On or before January 1, 2006, and on or before January 1 of
each year thereafter, the Port of Los Angeles shall limit growth and
operations at the port in a manner that prevents the level of air
pollution at the port from exceeding the baseline developed and
approved under subdivision (a).
   (c) On March 1, 2006, and on March 1 of each year thereafter, the
Port of Los Angeles shall report to the south coast district
regarding the port's compliance with subdivision (b), including, but
not limited to, an accounting of the port's programs and efforts that
are directed towards that compliance.
   (d) The Port of Los Angeles may establish an emission reduction
credit trading program or an emission offset program for the sources
described in paragraph (2) of subdivision (a), if the program is
approved by either the south coast district or the state board.
   (e) This section is intended to grant only oversight authority to
the south coast district with respect to the baseline developed by
the Port of Los Angeles under subdivision (a).
  SEC. 4.  Section 40459.3 is added to the Health and Safety Code, to
read:
   40459.3.  If the Memorandum of Agreement required under Section
40459.1 has not been entered into by all of the necessary parties on
or before September 1, 2005, all of the following shall apply on that
date:
   (a) (1) The Port of Long Beach shall develop a baseline for air
quality for the port.
   (2) The air quality baseline shall be based on data collected by
the port regarding the level of emissions in the port during 2004
from the following sources:
   (A) Oceangoing vessels and harbor craft.
   (B) Cargo handling equipment.
   (C) Rail locomotives.
   (D) Commercial motor vehicles, as defined in subdivision (b) of
Section 15210 of the Vehicle Code.
   (3) The air quality baseline shall be based on data collected by
the port regarding the level of emissions in the port during 2004
from the following air pollutants:
   (A) Oxides of nitrogen (NOx).
   (B) Carbon monoxide (CO).
   (C) PM2.5 and PM10, as defined in Section 39614.
   (D) Particulate matter from diesel fuel.
   (E) Sulfur dioxide (SO2).
   (4) The Port of Long Beach shall submit the baseline to the south
coast district for approval.
   (b) On or before January 1, 2006, and on or before January 1 of
each year thereafter, the Port of Long Beach shall limit growth and
operations at the port in a manner that prevents the level of air
pollution at the port from exceeding the baseline developed and
approved under subdivision (a).
   (c) On March 1, 2006, and on March 1 of each year thereafter, the
Port of Long Beach shall report to the south coast district regarding
the port's compliance with subdivision (b), including, but not
limited to, an accounting of the port's programs and efforts that are
directed towards that compliance.
   (d) The Port of Long Beach may establish an emission reduction
credit trading program or an emission offset program for the sources
described in paragraph (2) of subdivision (a), if the program is
approved by either the south coast district or the state board.
   (e) This section is intended to grant only oversight authority to
the south coast district with respect to the baseline developed by
the Port of Long Beach under subdivision (a).
  SEC. 5.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.