BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2042
                                                                  Page  1

          ONCURRENCE IN SENATE AMENDMENTS
          AB 2042 (Lowenthal)
          As Amended August 17, 2004
          Majority vote
           
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          |ASSEMBLY:  |45-31|(May 20, 2004)  |SENATE: |21-16|(August 19,    |
          |           |     |                |        |     |2004)          |
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           Original Committee Reference:    TRANS.

          SUMMARY  :  Prohibits air pollution at the Ports of Long Beach and  
          Los Angeles (Ports) from exceeding baseline levels.  

           The Senate amendments  :  

          1)Delete the substantive provisions that were previously in this  
            bill.  

          2)Require the South Coast Air Quality Management District  
            (SCAQMD), on or before September 1, 2005, to establish a  
            baseline for air quality for the Ports.  

          3)Require the baseline to be based on data collected by SCAQMD  
            regarding the level of emissions in the Ports during 2004 from  
            oceangoing vessels and harbor craft, cargo handling equipment,  
            rail locomotives, and commercial motor vehicles.  

          4)Require the baseline to be based on emissions levels in the  
            Ports during 2004 from oxides of nitrogen, carbon monoxide,  
            PM2.5 and PM10, particulate matter from diesel fuel, and  
            sulfur dioxide.  

          5)Require SCAQMD, the Air Resources Board (ARB) and the Ports,  
            on or before September 1, 2005, to develop and enter into a  
            Memorandum of Agreement (MOA) to implement emission control  
            measures related to operations at each of those ports.  

          6)Require MOA to include:  

             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 Ports not exceed the baseline  
               established under this bill;  








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             b)   Enforcement provisions that are within the jurisdiction  
               of the implementing agencies;  

             c)   A process for public input and comment on any proposal  
               prior to final agreement;  

             d)   A requirement that the Ports reimburse ARB for all costs  
               incurred as a result of developing MOA;  and,

             e)   A requirement that the Ports waive any claim to  
               reimbursement by the state for costs incurred as a result  
               of developing and implementing MOA.

          7)Require, if MOA has not been agreed to by September 1, 2005,  
            all of the following:  

             a)   Each of the Ports to develop baselines for air quality  
               for the individual ports;  

             b)   The air quality baselines to be based on data collected  
               by the port regarding the level of emissions in the Ports  
               during 2004 from specified sources and specified air  
               pollutants; and,

             c)   The Ports to submit the baselines developed by them to  
               SCAQMD for approval.  

          8)Require the Ports, on or before January 1, 2006, to operate in  
            a manner that prevents the level of air pollution at the Ports  
            from exceeding the baselines developed and approved under this  
            bill.  

          9)Require the Ports, on March 1, 2006, and on March 1 of each  
            year thereafter, to report to SCAQMD regarding their  
            compliance including, but not limited to, an accounting of  
            their programs and efforts that are directed towards that  
            compliance.  

          10)State legislative intent that these provisions are intended  
            to grant only oversight authority to SCAQMD with respect to  
            the baselines developed by the Ports.  

          11)Allow ARB and SCAQMD to adopt and implement regulations for  
            any source of emissions at any California port.  








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           EXISTING LAW  vests responsibility for developing and enforcing  
          air pollution control measures with ARB and various regional air  
          quality management districts and air pollution control  
          districts.  

           AS PASSED BY THE ASSEMBLY  , this bill:  

          1)Made 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)Required SCAQMD to establish a baseline for air quality in the  
            Port of Long Beach based on that port's 2002 emission  
            inventory.  

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

          4)Required 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;  

             c)   Sulfur dioxide;  and, 

             d)   Total hydrocarbons.  

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

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








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            requirements.  

          8)Authorized the Ports to establish emission reduction credit  
            trading programs or emission offset programs from the sources  
            identified in the bill, if approved by SCAQMD or ARB.  

          9)Clarified that this bill was intended to only grant oversight  
            authority to SCAQMD with respect to the baselines established  
            by the Ports based on their respective emissions inventories.   


           FISCAL EFFECT  :  According to the Senate Appropriations Committee  
          analysis, ARB will sustain costs of $100,000 in fiscal year (FY)  
          2004-05, $150,000 in FY 2005-06, and $50,000 in FY 2006-07.    
          SCAQMD will have unknown, non reimbursable costs.  The Ports  
          will have mandated costs potentially in excess of $300,000 that  
          are reimbursable. 

           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 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  








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          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 ARB and  
          federal EPA.  


           Analysis Prepared by  :    Howard Posner / TRANS. / (916) 319-2093  
                                 FN: 0008193