BILL NUMBER:  SB 234
  VETOED	DATE: 09/25/2012




To the Members of the California State Senate:

I am returning Senate Bill 234 without my signature.

The bill requires the Air Resources Board to reimburse 90 percent of
eligible project costs on a quarterly basis for shore power
electrification projects that are in substantial compliance with
project milestones.

The bill would circumvent Proposition 1B accountability standards
established by the Air Resources Board and the Department of Finance
to assure that voter-approved Proposition 1B funding is used on
projects that achieve real benefits to the public.  Allowing only a
10 percent withholding does not afford the necessary assurance that
the State's seaports have the commitment and resources necessary to
see the project to completion.

It is reasonable, however, to provide flexibility to equipment owners
such as seaports in a manner that facilitates project completion
while assuring robust accountability.  To this end, I am directing
the Air Resources Board to amend its program guidelines for shore
power projects to allow for quarterly reimbursement for up to 80
percent of eligible project costs, provided the equipment owner
expends their portion of match funding for each berth first and is in
compliance with its contract.

In those situations where a small port of less than 10 berths may
experience difficulties meeting these conditions, I further direct
the Board and those ports to work closely and cooperatively to
develop a path forward to ensure project success.

We all share the goal of providing shore-side electrical power to
ships at berth in order to reduce harmful emissions at and near the
ports while also protecting taxpayer funds.  This is a solvable
problem.

Sincerely,



Edmund G. Brown Jr.