BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 739|
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                                 THIRD READING


          Bill No:  SB 739
          Author:   Lowenthal (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMM  :  9-0, 04/05/11
          AYES:  DeSaulnier, Gaines, Harman, Huff, Kehoe, Lowenthal, 
            Pavley, Rubio, Simitian

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Ports:  infrastructure and air quality 
          improvement plans

           SOURCE  :     Author


           DIGEST  :    This bill requires the ports of Los Angeles, 
          Long Beach, and Oakland, by July 1, 2012, to assess their 
          infrastructure and air quality improvement needs, including 
          assessing the total cost for these projects and identifying 
          potential sources of funding for them.

           ANALYSIS  :    Ports are local government agencies governed 
          by port commissions that are responsible for developing, 
          maintaining, and overseeing the operation of shoreside 
          facilities for the intermodal transfer of cargo between 
          ships, trucks, and railroads.  Some ports have jurisdiction 
          over affiliated airports (e.g., Oakland), build and 
          maintain terminals for the passenger cruise ship industry, 
          or manage marinas and other public facilities.  
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          Existing law establishes 11 ports in the state:  Hueneme, 
          Humboldt Bay, Long Beach, Los Angeles, Oakland, Redwood 
          City, Richmond, Sacramento, San Diego, San Francisco, and 
          Stockton.   Under current law, each port may establish a 
          general plan and port system improvements and prescribe the 
          specifications for such improvements.

          This bill requires the ports of Los Angeles, Long Beach, 
          and Oakland, by July 1, 2012, to assess their 
          infrastructure and air quality improvement needs, including 
          assessing the total cost for these projects and identifying 
          potential sources of funding for them.

           Related Legislation
           
          This bill is nearly identical to SB 632 (Lowenthal).  That 
          bill was ultimately amended to deal with a different 
          subject matter.

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

           SUPPORT  :   (Verified  5/17/11)

          South Coast Air Quality Management District
          Bay Area Air Quality Management District
          American Lung Association
          Breathe California
          Coalition for Clean Air
          Natural Resources Defense Council
          Sierra Club California


           ARGUMENTS IN SUPPORT  :    There have been several plans 
          establishing lists of projects for goods movement 
          infrastructure and for reducing emissions from goods 
          movement-related sources.  These plans, however, are 
          several years old and most do not identify the sources of 
          funding necessary to complete the projects.  

          The Goods Movement Emission Reduction Plan produced by the 
          Air Resources Board in 2006 estimated the costs to reduce 
          emissions associated with goods movement to be between $6 

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          and $10 billion.  The Goods Movement Action Plan, completed 
          by the Business, Transportation and Housing Agency in 
          January 2007, estimated goods movement infrastructure costs 
          to exceed $20 billion over the following decade.  

          Proposition 1B, approved by voters in 2006, authorized the 
          sale of general obligation bonds for transportation 
          purposes, including $2 billion for trade infrastructure and 
          $1 billion for air quality mitigation.  These funds have 
          been fully programmed, leaving a gap of $23 to $27 billion 
          in unmet need.  This bill, therefore, seeks to update the 
          infrastructure and air quality needs of the regions 
          surrounding the state's largest ports and to identify the 
          sources funding necessary to fill that gap.  

          The author argues that ensuring the completion of 
          infrastructure and air quality improvements in California 
          is especially important in light of increased competition 
          from ports on the East Coast and in the Southern United 
          States, noting that a project to widen the Panama Canal to 
          allow for more shipping between Asia and other parts of the 
          U.S. is expected to be completed in 2014.  


          JJA:nl  5/17/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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