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Frank D. Russo

The California Progress Report is published by Frank D. Russo, a longtime observer of and participant in California politics.

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Cleaning Up Air Pollution from California's Ports Will Have to Wait Until Next Year

After threatening veto, Governor Schwarzenegger promises to work with Senator Lowenthal, author of SB 974, which would have imposed $30 fee on cargo containers to pay for reducing pollution

frankrusso-small.jpg By Frank D. Russo

A major bill to clean up air pollution from California's ports--estimated by the California Air Resources Board to cause 2,400 deaths a year--on the verge of receiving what may have been final legislative passage, will not be considered on the Assembly floor as had been scheduled to take place in the waning days of this year's session. SB 974 by Senator Lowenthal, which faced a veto by Governor Schwarzenegger, was taken out of consideration by the Senator after a private meeting with the Governor.

There is good news and bad news here with this development on one of the top priorities for the environmental community in California which enthusiastically supported this measure in a coalition with health and other groups.

The good news is in the words of the joint statement issued by Schwarzenegger and Lowenthal:

Schwarzenegger said: “Our ports are an integral component of goods movement in and out of California. I support the concept of SB 974 and want to work together with Senator Lowenthal on the bill so it addresses the future of goods movement while also reducing environmental impacts. I look forward to working during the fall recess with the Senator, his fellow legislators and all interested parties to craft a solution that will protect California’s air quality and also facilitate the goods movement through California.”

Lowenthal respoinded: “I am pleased that the Governor understands the need to fund air quality improvements and rail infrastructure, especially grade separations. I accept the Governor’s offer to work together and make SB 974 a reality.”

The bad news is that we will have to wait until 2008, delaying by a year the effects of any deal that is struck to get the Governor's signature. Bills passed by the legislature generally do not take effect until the following January, so even if a decent bill ultimately emerges, it will not take effect until January of 2009.

And, given the major opposition to SB 974, which included Target, Walmart, Home Depot, and a long list of powerful interests in the state, it's not time to break out the Champaign. The stakes involved are not for the fainthearted--the Ports of Los Angeles, Long Beach and Oakland are the first, second and fourth largest container ports in the country and account for just under 50% of all imports into the United States.

Nevertheless, I believe Lowenthal made the right decision. He's been pushing for legislation on port pollution since he was an Assemblymember and clearly cares about this issue. It's a miracle that the bill got as far as it did, passing the Senate and then the Assembly policy and fiscal committees. Why proceed in the face of a veto indication and risk it all?

SB 974 would have imposed a fee on all container cargo going in and out of the ports of Los Angeles, Long Beach and Oakland. The revenue from that fee would fund projects that would alleviate pollution of containerized cargo moved to and from these ports and improve the movement of such cargo in California.

Public opinion clearly has swung in the direction of the bill. A poll taken by the Public Policy Institute of California in July found 72% of Californians see air pollution as a problem in their region. Overall, 59% see air quality as a serious threat to themselves and their families. 25% describe it as "very serious," 34% as "somewhat serious" and 36% as "not too serious," with only 3% saying it is "not at all serious." The Los Angeles, Inland Empire, and Central Valley regions see this as much more of a serious problem to health.

We reported on that poll at the time, and stated:

"There is very good news in the poll numbers for Senator Lowenthal who has been championing SB 974, the "Clean Ports Investment Bill." 68% of Californians say they would "be willing to see tougher air pollution standards on ships, trucks, and trains that transport freight and cargo…even if this made it more costly for these businesses to operate." This includes 62% of Republicans. When asked specifically about a container fee on the owners of cargo moving through the state's ports ( a key provision of SB 974), 68% were in support including 57% of Republicans."

That public opinion must have had an impact on Schwarzenegger. He didn't need to tip his hand that he would veto the bill and could have buried a veto in the middle of dozens of other vetoes and bill signings that will take place in the 30 days he is allowed after legislative adjournment. On most bills, he does not indicate whether he will sign them or veto them until they reach his desk.

SB 974 is supported by the American Cancer Society, American Heart Association, American Lung Association of California, as well as a veritable who's who of environmental organizations in the state including the California League of Conservation Voters, Natural Resources Defense Council, Planning and Conservation League, Coalition for Clean Air, and Environment California.

While one headline, from the Long Beach Press Telegram, "Controversial container fee scrapped" would lead one to believe the bill is dead, that appears to be overstated. We will see what happens in negotiations before the legislature returns in January. expect both sides to be actively engaged in the trenches.

Posted on September 06, 2007

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