BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 2042|
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                                 THIRD READING


          Bill No:  AB 2042
          Author:   Lowenthal (D)
          Amended:  8/17/04 in Senate
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  5-2, 7/1/04
          AYES:  Sher, Chesbro, Figueroa, Kuehl, Romero
          NOES:  Morrow, McPherson

           SENATE APPROPRIATIONS COMMITTEE  :  7-6, 8/12/04
          AYES:  Alpert, Bowen, Burton, Escutia, Karnette, Murray,  
            Speier
          NOES:  Battin, Aanestad, Ashburn, Johnson, Machado,  
            Poochigian

           ASSEMBLY FLOOR  :  45-31, 5/20/04 - See last page for vote


           SUBJECT  :    Ports:  Port of Los Angeles:  Port of Long  
          Beach:  air 
                          pollution

           SOURCE  :     Author


           DIGEST  :    This bill (1) requires the South Coast Air  
          Quality Management District (SCAQMD), by September 1, 2005,  
          to establish a baseline for air quality for the ports of  
          Los Angles and Long Beach, as specified, (2) requires  
          SCAQMD, the State 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  
                                                           CONTINUED





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          those ports, and (3) requires 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, this bill requires the ports to  
          develop a baseline for air quality for each port, as  
          specified and requires that the data be submitted to the  
          SCAQMD for approval.

           ANALYSIS  :    

          Existing law:

          1. Requires the ARB to endeavor to achieve the maximum  
             degree of emission reduction possible from vehicular and  
             mobile sources of air pollution in order to accomplish  
             the attainment of the state ambient air quality  
             standards at the earliest practicable date. 

          2. Requires air districts to adopt and enforce rules and  
             regulations to achieve and maintain ambient air quality  
             standards in all areas affected by emission sources  
             under their jurisdiction, and to enforce all applicable  
             provisions of state and federal law. 

          3. Designates the state board as having the primary  
             responsibility for the control of emissions from motor  
             vehicles in the state, and designates the districts as  
             having the primary control from all sources other than  
             vehicular sources.

          4. Requires marine terminals in the state to operate in a  
             manner that does not cause trucks to idle or queue for  
             more than 30 minutes while waiting to load or unload at  
             the terminal, and charges the district with geographical  
             jurisdiction over that marine terminal with enforcing  
             the requirement. 

          This bill:
               
          1. On or before September 1, 2005, requires the SCAQMD to  
             establish a baseline for air quality for the Port of Los  
             Angeles and the Port of Long Beach that is:

             A.    Based on data collected by the district on the  







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                level of emissions in those ports during 2004 from  
                oceangoing vessels and harbor craft, cargo handling  
                equipment, rail locomotives, and commercial motor  
                vehicles. 

             B.    Based on data collected by the district on  
                emissions levels in those ports during 2004 from  
                oxides of nitrogen, carbon monoxide, particulate  
                matter, and sulfur dioxide. 

          2. Requires the SCAQMD, the ARB, the Port of Los Angeles,  
             and the Port of Long Beach to develop and enter into a  
             MOA to implement emission control measures related to  
             operations at each of those ports. 

          3. Requires 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 ARB for all costs  
                incurred as a result of developing the MOA and that  
                the ports waive any claim to reimbursement by the  
                state for costs incurred as a result of developing  
                and implementing the MOA. 

          4. Requires the SCAQMD, ARB, the Port of Los Angeles, and  
             the Port of Long Beach to consult with the federal  
             Environmental Protection Agency, industry stakeholders,  
             community and homeowner groups near the Port of Los  
             Angeles and the Ports of Long Beach, and environmental  
             organizations.

          5. Provides that nothing in the MOA shall affect efforts to  
             regulate port emissions.

          6. If the MOA has not been entered into by all of the  
             parties specified in (1) above:








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             A.    On or before September 1, 2005, requires each port  
                to develop a baseline for air quality for that port,  
                based on data collected by the port regarding the  
                level of emissions in the port during 2004 for the  
                same sources and pollutants described in (2)(a)  
                above, to submit the baselines to the SCAQMD for  
                approval, but specifies that the SCAQMD's role is one  
                of oversight with respect to the baseline.

             B.    Requires the ports, on or before January 1, 2006  
                and on or before January 1 of each year thereafter,  
                from exceeding the baseline. 

             C.    Requires the ports, on March 1, 2006, and on March  
                1 of each year thereafter, to report to the SCAQMD  
                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.

          7. Makes various legislative findings and declarations  
             relative to diesel pollution and its effects on public  
             health.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee, no state  
          cost.

           SUPPORT  :   (Verified  8/17/04)

          American Federation of State, County and Municipal  
          Employees
          American Lung Association of California
          California Environmental Rights Alliance
          City of Long Beach
          City of Los Angeles (if amended)
          Clean Power Campaign
          Coalition for Clean Air
          Gateway Council of Governments
          Natural Resources Defense Council
          Sierra Club California
          South Coast Air Quality Management District







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           OPPOSITION  :    (Verified  8/17/04)

          Associated General Contractors
          California Association of Port Authorities
          California Business Properties Association
          California Chamber of Commerce
          California Chapters of the National Association of  
            Industrial and Office Parks
          California Cotton Ginners Association
          California Cotton Growers Association
          California Film Extruders and Converters Association
          California Grain & Feed Association
          California Independent Oil Marketers Association
          California League of Food Processors
          California Manufacturers and Technology Association
          California Railroad Industry
          California Warehouse Association
          Chemical Industry Council of California
          Construction Industry Air Quality Coalition
          Grocery Manufacturers of America
          Harbor Association of Industry & Commerce
          International Council of Cruise Lines
          International Council of Shopping Centers
          Los Angeles Area Chamber of Commerce
          Long Beach Chamber of Commerce
          Lumber Association of California
          Lumber Association of Nevada
          Matson Navigation Company
          Pacific Merchant Shipping Association
          Port of Long Beach
          Retail Industry Leaders Association
          Society of the Plastics Industry
          State Department of Finance
          Western Home Furnishings Association
          Western States Petroleum Association  
           
           ARGUMENTS IN SUPPORT  :    According to the author's  
          office:

            "The volume of goods moving through the ports of Los  
            Angeles and Long Beach has quadrupled in the last seven  
            years and will likely quadruple again in the next 15  
            years.  These goods are transported from the ports  







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            primarily by diesel fueled trucks.

            "The ports of Long Beach and Los Angeles operate on  
            state tide and submerged lands, which means that the  
            ports are the steward for these state lands and must  
            manage them in a manner that benefits all Californians.

            "Given the anticipated growth at the ports, and given  
            the fact that diesel fuel exhaust has been determined  
            to cause cancer, and that emissions from the ports are  
            the single largest source of air pollution in the  
            four-county South Coast Air Basin, it is important to  
            limit the increase in toxic, cancer-causing emissions  
            while the ports grow.

            "Operations at the Port of Long Beach and Port of Los  
            Angeles account for approximately 17% of the NOx  
            (oxides of nitrogen), out of the four-county South  
            Coast Air Basin.

            "A study conducted by these ports predicts that  
            heavy-duty vehicle traffic (powered by diesel fuel) to  
            and from the ports will more than double in the next 20  
            years, from roughly 35,000 vehicles per day to nearly  
            83,000 vehicles per day.

            "On Wednesday June 9, 2004, the Harbor Commissioners  
            for the Port of Los Angeles approved a proposal that  
            would commit at least 10% of the Ports annual revenue  
            (approx. $500 million), to fight air pollution caused  
            by operations at the port.  This annual commitment  
            comes to approx. $50 million a year.

            "Doctors have linked high smog levels in Los Angeles to  
            increased rates of asthma.  Air pollution has been  
            linked to higher rates of cancer and respiratory  
            disease.  In Long Beach, 15 percent of children age 17  
            or younger have been diagnosed with asthma, according  
            to a 2003 county health survey. That compares with 12  
            percent countywide and about 8 percent nationally.

            "According to the South Coast Air Quality Management  
            District, cancer risk estimates at the ports are about  
            1,400 per million people exposed, far above the  







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            1-in-a-million risk level considered "acceptable" by  
            the U.S. Environmental Protection Agency.  According to  
            the District, the ports are the largest single source  
            of air pollution in the four-county jurisdiction of the  
            District.

            "Southern California risks losing $12.1 billion in  
            federal highway funds if federal Clean Air Act  
            standards aren't met by 2010.  So far, the basin has  
            failed to meet national standards for ozone or for  
            particulate emissions.

            "Of the sources at the ports, trucks and ships are the  
            biggest polluters.  The diesel trucks serving the ports  
            emit about 47 tons of NOx each day just within port  
            boundaries, out of a basin-wide total of 1,056 tons,  
            the AQMD says.  Ships and commercial boats add another  
            49 tons a day, while an unknown portion of the 181 tons  
            of NOx from diesel equipment also comes from the ports.  
             Trains in the region add another 36 tons of NOx, some  
            of which can be traced to old diesel locomotives at the  
            ports."

           ARGUMENTS IN OPPOSITION  :    Opponents to this bill state:

            "AB 2042 directs the South Coast Air Quality Management  
            to establish a baseline for air quality in the Port of  
            Long Beach and Los Angeles based on previous emission  
            inventories.  The City of Long Beach and the City of  
            Los Angeles are then saddled with the burden and  
            responsibility of not exceeding those baselines.  These  
            baselines consist primarily of emissions from mobile  
            sources, such as ocean-going vessels, locomotives, and  
            diesel trucks.  Although these sources are associated  
            with routine port operations, they are not directly  
            operated or controlled by the ports.  

            "Pursuant to the federal Clean Air Act, authority to  
            regulate emissions from most of the mobile sources  
            whose emissions are to be included in the baselines  
            rests with the U.S. EPA and, to a lesser extent, the  
            California ARB.  The South Coast District, the City of  
            Long Beach and the City of Los Angeles do not currently  
            have jurisdiction to regulate emissions from most of  







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            these sources, and in fact would be expressly preempted  
            from doing so in most instances by the Clean Air Act.

             "The Ports of Long Beach and Los Angeles are the two  
            largest container ports in the United States, with the  
            overwhelming majority of their container volumes  
            involving shipments to and from Pacific Rim countries.   
            There is little dispute that the level of trade between  
            the United States and the Far East is anticipated to  
            continue to increase significantly in the coming years.  
             

            "As drafted, AB 2042 has the potential to limit  
            operations in the Ports of Long Beach and Los Angeles  
            to 2001 and 2002 levels, respectively.  To the extent  
            operations at these two ports are frozen (or  
            potentially even reduced to past levels), other ports  
            and international airports along the west coast of the  
            United States, Mexico and Canada will need to be  
            upgraded and expanded to accommodate the increased  
            volume of international trade that everyone seems to  
            acknowledge is to come.  Companies throughout the  
            United States who receive or ship goods flowing through  
            the Ports of Long Beach or Los Angeles may also need to  
            adjust their business plans."


           ASSEMBLY FLOOR  : 
          AYES:  Berg, Bermudez, Calderon, Canciamilla, Chan, Chavez,  
            Chu, Corbett, Diaz, Dutra, Dymally, Firebaugh, Frommer,  
            Goldberg, Hancock, Jerome Horton, Jackson, Kehoe, Koretz,  
            Laird, Leno, Levine, Lieber, Liu, Longville, Lowenthal,  
            Maldonado, Montanez, Mullin, Nakano, Nation, Negrete  
            McLeod, Oropeza, Pavley, Reyes, Ridley-Thomas, Salinas,  
            Simitian, Steinberg, Vargas, Wesson, Wiggins, Wolk, Yee,  
            Nunez
          NOES:  Aghazarian, Bates, Benoit, Bogh, Cogdill, Correa,  
            Cox, Daucher, Dutton, Garcia, Harman, Haynes, Shirley  
            Horton, Houston, Keene, La Malfa, La Suer, Leslie,  
            Maddox, Matthews, McCarthy, Mountjoy, Nakanishi, Pacheco,  
            Parra, Plescia, Runner, Samuelian, Spitzer, Strickland,  
            Wyland
          NO VOTE RECORDED:  Campbell, Cohn, Maze, Richman








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          CP:mel  8/21/04   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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