Amended in Assembly April 10, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2395

Introduced by Assembly Member Lowenthal

(Principal coauthor: Assembly Member Gorell)

February 21, 2014

An act to add Section 6087 to the Harbors and Navigation Code, relating to harbor districts.

LEGISLATIVE COUNSEL’S DIGEST

AB 2395, as amended, Lowenthal. Oxnard Harbor District: infrastructure projects: funding.

(1) Existing law prescribes procedures for the formation of harbor districts, and sets forth the powers of a district with regard to the operation, management, and development of harbor facilities in a district. Existing law authorizes the board of a harbor district, among other things, to borrow up to $1,000,000 for the purposes of acquiring land for constructing or operating any work, project, or certain authorized facilities or for the making of improvements or the purchase of equipment for the maintenance of those facilities, as prescribed.

This bill would, notwithstanding that borrowing limit, authorize the Oxnard Harbor District to borrow money and incur indebtedness and to accept financial or other assistance from the state or federal government begin insert , provided that the proposed borrowing is not in excess of 15% of the district’s total assets, specified, as described, is considered at a public hearing, and is approved by a end insert begin insert 2⁄3 end insert begin insert vote of the members of the board of harbor commissioners for the district end insert . The bill would authorize the district to expend any funds made available to the district pursuant to those provisions for the acquisition of any interests in lands, as specified, and for projects involving the acquisition, construction, development, ownership, and leasing of port facilities, infrastructure, or other projects, as described.

(2) This bill would make legislative findings and declarations as to the necessity of a special statute for the Oxnard Harbor District.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature hereby finds and declares all of
the following:

(a) The Oxnard Harbor District owns and operates the Port of
Hueneme. Although the Port of Hueneme is the only deep-water
port between the major Pacific Ocean ports of northern and
southern California, its depth at present is only 35 feet at mean
lower low water (MLLW). A depth of at least 40 feet at MLLW
is necessary to provide the port with the capacity to accommodate
a wider variety of vessels to meet anticipated demands. As a result,
the Oxnard Harbor District needs to finance several significant
infrastructure projects over the next several decades to expand the
limited capacity of the port.

(b) The existing one-million-dollar ($1,000,000) limit on the
borrowing of money set forth in Section 6084 of the Harbors and
Navigation Code impedes the Oxnard Harbor District’s ability to
develop the infrastructure and systems necessary to continue the
development of the Port of Hueneme to expand the port’s capacity
and meet anticipated demands.

(c) In December 2013, the Oxnard Harbor District successfully
implemented the Shoreside Power Project, which will dramatically
cut pollutants from vessel emissions particle matter (PM) by 92
percent, nitrous oxide emissions by 98 percent, and greenhouse
gas emissions (carbon dioxide) by 55 percent, over the life of the
project. Further, the project will benefit shippers, truckers, terminal
operators, dock workers, and regional and national transportation
systems by extending the useful life of existing wharfs for up to
30 years.

(d) In Spring, 2012, the Oxnard Harbor District commissioned
a series of white papers as part of its commitment to providing the
maximum possible economic and social benefits to the people and
communities served by the Port of Hueneme. This commitment
includes a responsibility to address the environmental impacts of
port operations. The white papers are meant to help the port build
an environmental management program, and address all of the
following focus areas:

(1) Community engagement.

(2) Water quality.

(3) Marine resources.

(4) Air quality.

(5) Soil and sediment.

(6) Sustainability.

(e) The white papers described in subdivision (d) document
important accomplishments already achieved by the Oxnard Harbor
District, including all of the following:

(1) Active participation in community events and activities.

(2) Receipt of a $4.5 million shoreside power grant for air
quality improvements.

(3) Implementation of phase 1 of a stormwater improvement
plan.

(4) Partnering with the United States Navy and the United States
Corps of Engineers (USACE) to construct the Confined Aquatic
Disposal Cell.

(5) Actively monitoring water quality to mitigate impacts to
marine life.

(6) Replacement of conventional diesel-fueled maintenance
vehicles with low-emission propane-fueled trucks.

(f) Operations and activities at the Port of Hueneme contribute
meaningfully, qualitatively, and quantitatively to the economic
health and vitality of southern California and the rest of the state.
It has been estimated that approximately 10,226 jobs statewide are
either directly or indirectly related to activities at the Port of
Hueneme, and the regional agricultural, automobile, and oil and
gas industries in this state rely on the workers employed in these
jobs and the port’s daily operations.

(g) The Oxnard Harbor District does not levy, or expend any
funds generated by, local taxes, as most of its operations are funded
directly through fees and other revenue the port generates from its
users or tenants, and from occasional state and federal grants.

SEC. 2.  

Section 6087 is added to the Harbors and Navigation
Code, to read:

6087.  

(a)  begin insert (1) end insert begin insert   end insert Notwithstanding any other provision of this
part, the Oxnard Harbor District may borrow money and incur
indebtedness under begin delete Section 6077 or 6084, in its discretion, end delete begin insert this
section end insert and may accept financial or other assistance from the state
or federal government.

begin insert

(2) (A) The district shall not borrow an amount in excess of
15 percent of its total assets, as determined based on the estimated
value of the assets included in the Port of Hueneme Comprehensive
Annual Financial Report.

end insert begin insert

(B) The district shall, prior to commencing any action to borrow
funds under this section, conduct a public hearing during which
the proposed borrowing is considered.

end insert begin insert

(C) The district shall not seek to borrow any funds under this
section unless the proposed borrowing is approved by a 2⁄3 vote
of the members of the board harbor commissioners for the district.

end insert

(b) The district may expend any funds made available to the
district pursuant to subdivision (a) for the acquisition of any interest
in lands, in accordance with Section 6075, and for the acquisition,
construction, development, ownership, and leasing of port facilities,
infrastructure, and other projects, including, but not limited to,
harbor deepening, and for any other buildings, plants, equipment,
aids, facilities, and improvements necessary for, or incident to, the
accommodation and promotion of commerce and fisheries in the
district.

SEC. 3.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances applicable only
to the Oxnard Harbor District.