BILL ANALYSIS �
SB 739
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2011-2012 Regular Session
BILL NO: SB 739
AUTHOR: Lowenthal
AMENDED: As introduced
FISCAL: Yes HEARING DATE: May 2, 2011
URGENCY: No CONSULTANT: Randy Pestor
SUBJECT : PORT CONGESTION AND MITIGATION RELIEF
SUMMARY :
Existing law :
1) Establishes the California Marine and Intermodal
Transportation System Advisory Council, and requires the
council to meet, hold hearings, and compile data on certain
issues (e.g., projected growth of each maritime port in the
state, impacts of maritime growth on the state's
transportation system, air pollution caused by goods
movement, statewide plan) (Harbors and Navigation Code
�1760).
2) Under the Harbors and Ports Mitigation Law, requires a
public agency to approve certain mitigation for port
projects involving filling of subtidal habitats within
ocean or inland ports (Harbors and Navigation Code �1720 et
seq.).
3) Establishes the California Transportation Commission (CTC)
and sets various duties and procedures for the CTC
(Government Code �14500 et seq.).
4) Authorizes the California Air Resources Board (ARB) to
coordinate efforts to attain and maintain ambient air
quality standards (Health and Safety Code �39003) and
specifies its powers (Health and Safety Code �39500 et
seq.).
5) Creates the State Infrastructure and Economic Development
Bank and specifies its powers (Government Code �63020 et
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seq.).
This bill :
1) Renumbers and makes technical amendments to the California
Marine and Intermodal Transportation System Advisory
Council requirements.
2) Enacts the Port Congestion Relief and Port Mitigation
Relief Law that:
a) Requires the ports of Long Beach, Los Angeles, and
Oakland to assess infrastructure and air quality
improvement needs beginning January 1, 2012.
b) Requires the ports of Long Beach and Los Angeles to
consult with the Southern California Association of
Governments, and the Port of Oakland to consult the
Metropolitan Transportation Commission on infrastructure
projects that improve cargo movement efficiency and
reduce congestion impacts associated with cargo
movement. The ports must identify the project, funding
source or possible funding source, and estimated
timeliness for completion.
c) Requires the ports of Long Beach and Los Angeles to
consult with the South Coast Air Quality Management
District, and the Port of Oakland to consult the Bay
Area Air Quality Management District on air quality
projects that reduce pollution associated with cargo
movement, including projects that reduce pollution from
trucks, cargo handling equipment, locomotives, and
ships. The ports must identify the project, funding
source or possible funding source, and estimated
timelines for completion.
d) Requires the ports to provide the assessments to the
Legislature by July 1, 2012, including assessments of
infrastructure and air quality improvement costs,
funding sources, and possible funding options for
projects without a funding source.
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3) Contains related legislative intent.
COMMENTS :
1) Purpose of Bill . According to the author, pollution from
the state's ports causes 3,700 premature deaths annually;
polluting activities from port operations will have an
aggregate health impact equivalent to about $200 billion
over the next 15 years; by 2020, ports and freight
transport operations will be the largest source of
particulate matter (PM) and nitrogen oxide emissions in the
state - producing more PM than all passenger vehicles,
off-road equipment, and stationary sources combined.
The author notes that according to the Los Angeles Economic
Development Corporation, southern California must spend at
least $10.5 billion to improve railroads, rail yards, and
highways to keep up with international trade or risk losing
more than 500,000 new jobs and more than $1 billion of
taxes annually. According to the author, southern
California also risks losing $12.1 billion in federal
highway funds if federal Clean Air Act standards are not
met.
ARB's 2006 Goods Movement Emission Reduction Plan estimates a
$6 to $10 billion cost to reduce goods movement-related
emission sources; while the Business, Transportation and
Housing Agency's 2007 Goods Movement Action Plan estimates
over $20 billion in estimated goods movement infrastructure
costs over the following decade. Voters approved
Proposition 1B (the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006) November 7,
2006. This bond act provided for a bond issue not to
exceed $19,925,000,000 for certain purposes, including $2
billion for trade corridor improvements and $1 billion for
emission reductions not otherwise required by law or
regulation.
In response to these concerns, SB 739 provides the Legislature
with information relating to infrastructure costs, funding
sources, funding options without a funding source, and air
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quality improvements for the state's three largest ports.
According to the author, SB 739 seeks to determine how a
$23 to $27 billion goods movement and air quality
improvement gap can be met.
2) Related legislation . Bills setting shipping container fees
to finance certain port mitigation and congestion projects
include SB 760 (Lowenthal) of 2006. The provisions of that
bill were subsequently amended into SB 927 (Lowenthal) of
2006. In vetoing SB 927, Governor Schwarzenegger indicated
that "if done in a more coordinated fashion with the public
and private sector, funding for additional congestion
relief and mitigation could be increased geometrically."
The Governor also cited his support of the transportation
bond and noted that "my goods movement task force is
developing a comprehensive report that will provide more
thorough and strategic direction and insight on what the
best options are to address goods movement and port related
challenges." According to the Governor, in vetoing SB 974
(Lowenthal) of 2007-08, "I encourage the Legislature to
develop legislation that provides proper guidance,
oversight and accountability, ensures that the San Joaquin
Valley is eligible for funds to address port-related cargo
pollution, and allows for varied congestion reduction
infrastructure."
SB 739 is similar to SB 632 (Lowenthal) of 2009-10, which was
approved by the Senate Environmental Quality Committee
April 27, 2009 (7-0); the Senate May 21, 2009 (30-4); and
was subsequently amended in the Assembly to address another
issue with another author and remained on the Assembly
third reading file.
SB 830 (Wright) provides a tax credit in an amount not to
exceed 50% of the total project capital costs for taxable
years January 1, 2011, to January 1, 2021, relating to a
port or harbor activity, and requires the Legislative
Analyst to evaluate the effectiveness of the tax credit.
Under SB 830, "capital costs" include project-related costs
and costs for environmental mitigation to reduce project
impacts. SB 830 is with the Governance and Finance
Committee.
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SOURCE : Senator Lowenthal
SUPPORT : American Lung Association in California,
Breathe California, Coalition for Clean Air,
NRDC, Sierra Club California, South Coast Air
Quality Management District
OPPOSITION : None on file