BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           2042 (Lowenthal)
          
          Hearing Date:  8/4/04           Amended: 7/12/04       
          Consultant: Miriam Barcellona Ingenito            Policy  
          Vote: EQ 5-2             
          ____________________________________________________________ 
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          BILL SUMMARY: AB 2042 would (1) require the South Coast Air  
          Quality Management District (AQMD), by September 1, 2005,  
          to establish a baseline for air quality for the ports of  
          Los Angles and Long Beach, as specified; (2) require AQMD,  
          the Air Resources Board (ARB), the Port of Los Angeles, and  
          the Port of Long Beach to develop and enter into a  
          Memorandum of Agreement (MOA) to implement emission-control  
          measures related to operations at each of those ports; and  
          (3) require ARB to report annually, commencing January 1,  
          2006, regarding the development and implementation of the  
          MOA.  If an MOA is not entered into by September 1, 2005,  
          AB 2042 would require the ports to develop a baseline for  
          air quality for each port, as specified and would require  
          that the data be submitted to the AQMD for approval.
          ____________________________________________________________ 
          ___
                          Fiscal Impact (in thousands)
           Major Provisions                    2004-05             2005-06   
                      2006-07            Fund
           ARB                               $100                 $150  
                        $50             SF*         
          AQMD                 unknown, non reimbursable costs         
                      Local 
          Port Costs                     unknown, potentially in  
          excess of $300              GF
                                                        reimbursable  
          mandate  
          __________
          *Motor Vehicle Account
          ____________________________________________________________ 
          ___
          STAFF COMMENTS:  This bill meets the criteria for referral  
          to the Suspense file.
          
          Costs to the State if an MOA is entered into and  
          implemented:
           ARB's costs incurred while developing the MOA would be  










            reimbursed by the ports.  The ARB estimates that its  
            costs would be at least $200,000.  
           As a condition of the MOA, the ports would be required to  
            waive any claim to reimbursement by the state for costs  
            incurred as a result of developing and implementing the  
            MOA.
           ARB's report to the Legislature would be about $25,000 to  
            $75,000 annually.

          Costs to State if an MOA is not entered into or is not  
          implemented:  
           Any costs ARB incurs while attempting to enter into the  
            MOA. If a MOA is never agreed to or implemented, ARB's  
            costs are not reimbursed by the ports.  
           Any costs incurred by the port while attempting to enter  
            into the MOA could potentially be charged to the state as  
            a reimbursable mandate.
           Costs incurred by the ports to develop a baseline for air  
            quality for the ports would be a reimbursable mandate.
           Costs to the ARB to report on the development and  
            implementation of the MOA would be minor.