Schwarzenegger to pass container fee bill
Shippers bringing in cheap imports from China are "contributing to pollution deaths and should have to pay", according to assemblymember Betty Karnette. Karnette spoke out following this week's vote by legislators to impose a fee on every container moving through the ports of Long Beach, Los Angeles and Oakland. Senator Alan Lowenthal authored the bill SB 974, which would impose a fee on shippers of $30 per TEU for every cargo container leaving or entering the ports. In 2006, Governor Schwarzenegger vetoed the bill, suggesting a number of amendments. Senator Lowenthal has since added over 150 amendments to his proposed legislation, which include how the money will be spent, according to American Shipper. Schwarzenegger has since shown support for the bill.
A study by marine transport experts in 2006 found that California’s ports would feel minimal to no impact from the fee levied on containers, especially when growth projections are considered, a report by Lowenthal noted.
It is estimated that the volume of goods moving through these ports will triple by 2020.
A presentation in March on the Pulse of the Ports, by Bill Rooney, managing director of Hanjin Shipping, showed that if the Los Angeles/Long Beach port complex continues to grow at 8% a year, it would reach capacity in 2010. The growth rate from 2001 to 2006 was 15% and growth this year was expected to be 10%.
Ports and freight transport operations will be the largest source of particulate matter (PM) and nitrogen oxides (NOx) emissions in the state, producing more diesel PM than all passenger vehicles, off-road equipment and stationary sources combined, the Lowenthal report said.
Democrats praised the container fee measure as a smart way to try to mitigate the polluted air, contributed to by the ports' thriving economic activity.
Republicans, however, were quick to point out that the bill would push up the prices of many products and drive business to neighbouring ports like Seattle.
"The Air Board’s Emission Reduction Plan shows that for every $1 invested to reduce goods movement pollution, California would save between $3 to $8 in avoided health costs. Given this figure, if SB 974 becomes law and there is $3 billion invested in reducing goods movement pollution, SB 974 would save California between $9 billion and $24 billion avoided health costs," concluded Senator Lowenthal.
The Assembly voted 45 to 24 to pass Lowenthal's bill. SB 974 will now head to the California Senate for final approval, before reaching Governor Schwarzenegger for possible passage.
A study by marine transport experts in 2006 found that California’s ports would feel minimal to no impact from the fee levied on containers, especially when growth projections are considered, a report by Lowenthal noted.
It is estimated that the volume of goods moving through these ports will triple by 2020.
A presentation in March on the Pulse of the Ports, by Bill Rooney, managing director of Hanjin Shipping, showed that if the Los Angeles/Long Beach port complex continues to grow at 8% a year, it would reach capacity in 2010. The growth rate from 2001 to 2006 was 15% and growth this year was expected to be 10%.
Ports and freight transport operations will be the largest source of particulate matter (PM) and nitrogen oxides (NOx) emissions in the state, producing more diesel PM than all passenger vehicles, off-road equipment and stationary sources combined, the Lowenthal report said.
Democrats praised the container fee measure as a smart way to try to mitigate the polluted air, contributed to by the ports' thriving economic activity.
Republicans, however, were quick to point out that the bill would push up the prices of many products and drive business to neighbouring ports like Seattle.
"The Air Board’s Emission Reduction Plan shows that for every $1 invested to reduce goods movement pollution, California would save between $3 to $8 in avoided health costs. Given this figure, if SB 974 becomes law and there is $3 billion invested in reducing goods movement pollution, SB 974 would save California between $9 billion and $24 billion avoided health costs," concluded Senator Lowenthal.
The Assembly voted 45 to 24 to pass Lowenthal's bill. SB 974 will now head to the California Senate for final approval, before reaching Governor Schwarzenegger for possible passage.