BILL ANALYSIS �
SB 739
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SENATE THIRD READING
SB 739 (Alan Lowenthal)
As Amended July 7, 2011
Majority vote
SENATE VOTE :32-7
TRANSPORTATION 12-2 APPROPRIATIONS 11-5
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|Ayes:|Bonnie Lowenthal, |Ayes:|Fuentes, Blumenfield, |
| |Jeffries, Achadjian, | |Bradford, Charles |
| |Blumenfield, Bonilla, | |Calderon, Campos, Gatto, |
| |Buchanan, Eng, Furutani, | |Hall, Hill, Lara, |
| |Galgiani, Miller, | |Mitchell, Solorio |
| |Portantino, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Logue, Norby |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
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SUMMARY : Requires the ports of Los Angeles, Long Beach, and
Oakland, beginning January 1, 2012, to assess their
infrastructure and air quality improvement needs. Specifically,
this bill :
1)Makes various findings and declarations relative to the need
of infrastructure improvements and air quality reduction
measures for the state's major ports.
2)Requires the ports of Long Beach, Los Angeles (San Pedro
Ports), and the port of Oakland (Oakland) to assess
infrastructure and air quality improvement needs beginning
January 1, 2012.
3)Requires the San Pedro ports to consult with the Southern
California Association of Governments, and Oakland to consult
with 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 sources or
possible funding sources, and estimated project timeliness for
completion.
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4)Requires the San Pedro ports to consult with the South Coast
Air Quality Management District (South Coast), and Oakland to
consult with the Bay Area Air Quality Management District
(BAAQMD), 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
sources or possible funding sources, and estimated project
timelines for completion.
5)Requires the ports to provide the assessments to the Assembly
Natural Resources Committee, Assembly Transportation
Committee, Senate Environmental Quality Committee, and Senate
Transportation and Housing Committee 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.
6)Makes inoperative the report requirement four years after the
bill's enactment.
7)Makes non-substantive changes to the California Marine and
Intermodal Transportation System Advisory Council (CALMITSAC).
EXISTING LAW :
1)Establishes 11 ports in the state: Humboldt Bay, Hueneme,
Long Beach, Los Angeles, Oakland, Redwood City, Richmond,
Sacramento, San Diego, San Francisco, and Stockton. The law
allows each port to lay out, plan, and establish a general
plan and port system improvements and prescribe the
specifications for such improvements.
2)Authorizes, through the enactment of Proposition 1B, the
Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006, as approved by the statewide voters
in November 2006, the state to sell approximately $20 billion
of general obligation bonds to fund transportation projects to
relieve congestion, improve the movement of goods, improve air
quality, and enhance the safety and security of the
transportation system. Of the $20 billion, allocates $1
billion to California Air Resources Board (ARB) for emission
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reductions, not otherwise required by law or regulation, from
activities related to the movement of freight along
California's trade corridors (commencing at the state's
airports, seaports and land ports of entry). Provides funds
for the replacement, repower, or retrofit of heavy-duty
trucks, locomotives, commercial harbor craft, ocean-going
vessels related to freight, and cargo-handling equipment with
cleaner technology alternatives. Port environs qualify as one
of four targeted freight corridors for expenditure of the $1
billion.
3)Establishes through the enactment of Proposition 1B, the Trade
Corridor Improvement Program, that includes $2 billion, for
allocation by the California Transportation Commission (CTC)
for infrastructure improvements along federally designated
"Trade Corridors of National Significance" in this state or
along other corridors within this state that have a high
volume of freight movement. The CTC is to consult the Trade
Infrastructure and Goods Movement Plan, trade infrastructure
and goods movement plans adopted by regional transportation
planning agencies, regional transportation plans, and
CalMITSAC Statewide Port Master Plan.
FISCAL EFFECT : Accordingly to the Assembly Appropriations
Committee, negligible state costs. Local, nonreimbursable costs
of an unknown amount to complete infrastructure assessments.
COMMENTS : California's 11 public ports, located along the coast
from San Diego to Humboldt and inland along the Sacramento and
San Joaquin Rivers, are the global gateways for goods movement.
Governed by "port commissions," these local government bodies
develop, maintain, and oversee the operation of shore side
facilities for the intermodal transfer of cargo between ships,
trucks, and railroads. A significant number of jobs in the
state are tied to trade, and the value of international trade
alone exceeds $350 billion. Ports are seen as integral to
keeping California the sixth largest economy in the world.
According to a 2006 report by ARB, pollution from our state's
ports causes 2,400 premature deaths annually. ARB recently
estimated that over the next 15 years, polluting activity from
operations at California's ports will have an aggregate health
impact equivalent to approximately $200 billion in present value
dollars.
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Relative to goods movement infrastructure development needs,
according to the Los Angeles Economic Development Corp.,
Southern California must spend at least $10.5 billion to improve
railroads, rail yards and highways to keep up with surging
international trade or risk losing more than 500,000 new jobs
and more than $1 billion of taxes a year. Inefficiencies in the
freight transport system are costly to the state. Improving the
rail system will reduce the number of diesel trucks on the
state's freeways and alleviate congestion.
According to the author, "there have been several plans either
for goods movement infrastructure or for reducing goods movement
emissions, however those plans are several years old and most do
not identify where funds will come from to build goods movement
infrastructure or to reduce emissions from goods movement in
California."
This bill seeks to find out how the San Pedro ports and the Port
of Oakland will fund their improvements along with providing
estimated timelines for implementation of the action measures.
Support: The author contends 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.
Further, according to a coalition of clean air and environmental
advocacy groups, "California ports and goods movement
infrastructure went through a statewide planning exercise some
time ago with the Governor's Goods Movement Action Plan of 2006.
This plan, while useful, is now quite dated. The ports have
also gone through air quality planning efforts with the San
Pedro Bay (Ports) Clean Air Action Plan in Southern California
and the Maritime Air Quality Improvement Program in Oakland.
These plans, however, have never been integrated into a
statewide policy articulating progress towards state and local
clean air goals as well as funding needs."
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
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FN: 0001536