Port container fee passes Calif. assembly

The container tax money would be used in Southern California and the San Francisco Bay area on various projects that reduce air pollution and traffic congestion generated by the ports.

The Associated Press

7/16/2008

SACRAMENTO, Calif. — California could earn an estimated $400 million or more annually under a bill passed by the state Assembly that would impose a fee on containers moving through the ports of Long Beach, Los Angeles and Oakland.

Critics, however, say the measure could send shipping business to other West Coast ports, such as Seattle.

The money would be used in Southern California and the San Francisco Bay area on various projects that reduce air pollution and traffic congestion generated by the ports. Combined, the ports handle more than 40 percent of the nation’s cargo.

The Assembly voted 45-24 Tuesday to pass the bill. If the Senate reconvenes during its recess because of budgeting, it is expected to concur on the bill and pass it to Gov. Arnold Schwarzenegger. If the Senate does not reconvene during recess, the bill is expected reach him on Aug. 4.

Similar measures were vetoed or failed in the past two years.

This year’s version, sponsored by Sen. Alan Lowenthal (D-Long Beach), would impose a $60 fee on every typical-sized cargo container leaving or entering the ports. He said the amended bill addresses concerns that led to Schwarzenegger’s veto in 2006 and Los Angeles Mayor Antonio Villaraigosa withholding his support last year.

“We have built a statewide coalition to support the container fee,” Lowenthal said.

Assemblywoman Betty Karnette (D-Long Beach) said people in her district are dying from pollution.

“Who is profiting? I don’t think it’s our workers profiting from all these imports,” she said. “Other countries are profiting at our expense.”

Republicans said the measure would increase prices of goods and could drive business elsewhere, like Seattle’s port.

“We can’t be competitive, folks,” said Assemblyman Rick Keene (R-Chico), “if we continue to tax the economic engine of the state.”

Steven Ly of the Long Beach Chamber of Commerce says the bill is unnecessary because the ports of Long Beach and Los Angeles already have pollution measures in place.

“It’s not just bad for business,” Ly said. “It’s redundant. ... We’ve heard the governor has indicated he’s willing to sign the bill, which worries us deeply.”