10/2/08-Gov. Arnold Schwarzenegger has vetoed a bill that sought to collect $30 fees on every 20-foot equivalent unit passing through the Los Angeles, Long Beach and Oakland port complexes. Money from the ports would have been evenly distributed to ease congestion and to reduce air pollution.
In a veto message, the governor said one of the reasons he rejected the bill is because ports would have been allowed to spend money with little state oversight. He also said that now is not the time to burden businesses with additional costs.
According to the analysis of the bill, revenue from the fees at the ports of Los Angeles and Long Beach were expected to reach $340 million annually. The Port of Oakland was expected to generate $54 million each year.
Sponsored by Sen. Alan Lowenthal, D-Long Beach, SB974 called for allotting a portion provided to alleviate port congestion to the California Transportation Commission to fund projects that improve the rail system that moves containers to and from the ports.
Money earmarked for mitigation relief would have been used by the California Air Resources Board to develop a list of projects to reduce pollution caused by the movement of containers.

8/7/08-The Senate voted 22-9 Tuesday, Aug. 5, to sign off on Assembly changes to a bill that would allow the collection of $30 fees on every 20-foot equivalent unit passing through the Los Angeles, Long Beach and Oakland port complexes. Money from the container ports would be evenly distributed to ease congestion and to reduce air pollution.
Sponsored by Sen. Alan Lowenthal, D-Long Beach, SB974 now moves to Gov. Arnold Schwarzenegger’s desk. If signed into law, the ports would have until the end of this year to develop a process to notify and collect user fees at least twice a year from container cargo owners. Collection of the fees would begin July 1, 2009.
According to the analysis on the bill, revenue from the fees at the ports of Los Angeles and Long Beach are expected to reach $100 million by the end of 2009. Each year thereafter, revenue at the ports is expected to be $340 million annually.
The Port of Oakland is expected to generate $17 million in fees by the end of 2009. Revenue at the site is expected to grow to $54 million annually thereafter.
The bill would allot the portion provided to alleviate port congestion to the California Transportation Commission to fund projects that improve the rail system that moves containers to and from the ports.
Money earmarked for mitigation relief would be used by the California Air Resources Board to develop a list of projects to reduce pollution caused by the movement of containers.
For Senate bill status, call (916) 651-4120.