BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2042
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 2042 (Lowenthal) 
          As Amended May 3, 2004
          Majority vote 

           TRANSPORTATION      8-6         APPROPRIATIONS      15-3        
           
           ----------------------------------------------------------------- 
          |Ayes:|Oropeza, Chan, Kehoe,     |Ayes:|Chu, Berg, Calderon,      |
          |     |Liu, Longville, Pavley,   |     |Corbett, Firebaugh,       |
          |     |Salinas, Simitian         |     |Goldberg, Leno, Nation,   |
          |     |                          |     |Negrete-McLeod, Oropeza,  |
          |     |                          |     |Pavley, Ridley-Thomas,    |
          |     |                          |     |Wesson, Wiggins, Yee      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Houston, Bates, Benoit,   |Nays:|Runner, Bates, Keene      |
          |     |La Suer, Mountjoy, Parra  |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Prohibits growth at the Ports of Long Beach and Los  
          Angeles (Ports) from increasing air pollution.  Specifically,  
           this bill  :  

          1)Makes legislative findings and declarations regarding the  
            health risks attributable to diesel engine exhaust and the  
            federal requirement that certain regions with high levels of  
            air pollution must demonstrate that construction of new  
            highways will not worsen air pollution.  

          2)Requires the South Coast Air Quality Management District  
            (SCAQMD) to establish a baseline for air quality in the Port  
            of Long Beach based on that port's 2002 emission inventory.  

          3)Requires SCAQMD to establish a baseline for air quality at the  
            Port of Los Angeles based on that port's 2001 emission  
            inventory.  

          4)Requires those baselines to only cover the following  
            contaminant emissions from vessels and harbor craft, cargo  
            handling equipment, locomotives, and commercial vehicles:  

             a)   Oxides on nitrogen;  

             b)   Particulate matter;  








                                                                  AB 2042
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             c)   Sulfur dioxide;  and, 

             d)   Total hydrocarbons.  

          5)Requires the Cities of Long Beach and Los Angeles to require  
            growth and operations at their respective ports to be limited  
            or controlled so that air pollution does not exceed the  
            baselines established under this bill.  

          6)Requires both cities, every March 1 beginning in 2006, to  
            report to SCAQMD regarding their compliance with this  
            pollution restriction.  

          7)Allows SCAQMD to impose a fee on each city in an amount that  
            does not exceed its costs in administering this bill's  
            requirements.  

          8)Authorizes the Ports of Los Angeles and Long Beach to  
            establish an emission reduction credit trading program or an  
            emission offset program from the sources identified in this  
            measure, if the program is approved by SCAQMD or the Air  
            Resources Board (ARB).  

          9)Clarifies that this bill is intended to only grant oversight  
            authority to SCAQMD with respect to the baselines established  
            by the two ports based on their respective emissions  
            inventory.  

           EXISTING LAW  vests responsibility for developing and enforcing  
          air pollution control measures with the Air Resources Board  
          (ARB) and various regional air quality management districts and  
          air pollution control districts.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis, one-time costs of less than $50,000 in  
          fiscal year (FY) 2004-05 to SCAQMD to establish the Ports' air  
          quality baselines; these costs are potentially covered by fees  
          SCAQMD is authorized to impose on the Cities of Long Beach and  
          Los Angeles.  There will also be costs, probably less than an  
          aggregate of $100,000 annually starting in FY 2005-06, to the  
          Cities of Long Beach and Los Angeles to report to SCAQMD on  
          their compliance with this bill's air quality baseline  
          requirements; these costs are reimbursable from the state.  









                                                                  AB 2042
                                                                  Page  3

           COMMENTS  :  The author asserts that the Long Beach Freeway in the  
          vicinity of the Ports is overwhelmed by truck traffic, which is  
          projected to more than double, to 83,000 vehicles per day, in  
          the next 20 years.  Most of these trucks are diesel-powered and  
          diesel particulate matter (PM) emissions have been identified as  
          a toxic air contaminant by air quality officials.  These  
          officials believe the Ports are the largest single source of air  
          pollution in the four-county Los Angeles region and that trucks  
          and ships are the primary sources of port-related pollution.  

          Supporters lament the fact that in the vicinity of the Ports,  
          the lifetime excess cancer risk is 1,400 per million people  
          exposed, far above the one-in-a-million level the federal  
          Environmental Protection Agency (EPA) deems to be acceptable.   
          They also point out that the Ports are "virtually next door" to  
          residential neighborhoods, schools, and playgrounds.  

          The Pacific Merchant Shipping Association (Association), in  
          opposing this bill, counters that more than 1,000  
          container-moving equipment at the Ports have been, or soon will  
          be, fitted with particulate traps or diesel oxidation catalysts,  
          while hundreds of pieces of cargo-handling equipment are using  
          clean-burning emulsified fuel.  Various other initiatives are  
          underway to reduce emissions as well.  The Association contends  
          that this bill conflicts with state and federal law and policies  
          and "erects a vague and potentially prohibitive obstacle to  
          future growth (that would) send a negative message to the  
          international trade community."  The Association particularly  
          cautions against assigning mobile source emission regulation to  
          a regional agency, a prospect that could create "islands of  
          divergent authority for sources that travel between air  
          districts (and other state and federal jurisdictions."  For this  
          reason, they believe authority should remain with the ARB and  
          federal EPA.  


           Analysis Prepared by  :    Howard Posner / TRANS. / (916) 319-2093
                                                                FN: 0005102