(Oct. 1, 2008) -- CA Governor Arnold Schwarzenegger has vetoed SB 974 by state Sen. Alan Lowenthal (D., Long Beach-Paramount), a measure that would have placed a fee on cargo containers entering the Ports of LB, L.A. and Oakland with the revenue divided between funding for mainly rail-related cargo infrastructure projects (increasing the Ports' through-put capacity by moving cargo faster and more efficiently) and environmental mitigation measures (but not requiring a net pollution reduction).

In his veto message (released shortly before the Sept 30 midnight deadline) the Governor stated:

To the Members of the California State Senate:

I am returning Senate Bill 974 without my signature.

This bill would impose a maximum fee of $30 per twenty-foot equivalent unit on each shipping container processed in the Ports of Los Angeles, Long Beach and Oakland. The revenues would be used for two broad purposes: to alleviate congestion of the ports by funding projects to improve the flow and efficiency of the ports and to mitigate air pollution caused by the movement of cargo to and from the ports.

Improving the quality of life for all Californians through congestion relief and environmental mitigation has been one of my highest priorities, as evidenced by the introduction of my Strategic Growth Plan and the passage of the Proposition 1B transportation bond which I supported. Proposition 1B provides $1 billion in new funding to improve air quality in California which will directly benefit the communities in and around the Ports of Long Beach, Los Angeles, and Oakland. The measure also provides $1 billion to address port mitigation issues, $2.1 billion for trade infrastructure, and $100 million for port security funding.

Although the bill's policy objectives to provide additional funding for congestion relief and environmental mitigation are laudable, this measure is problematic in its implementation.

This bill does not provide necessary assurances that projects will achieve the greatest cost-effectiveness, emission reductions, and public health protection. Also, the bill does not adequately provide the San Joaquin Valley with access to funds to reduce pollution related to container cargo coming directly to and from the ports throughout the Valley.

Additionally, this bill would not provide any mechanism for the coordination and integration of infrastructure projects. As such, this bill would fail to provide long-term, strategic planning for the state's goods movement infrastructure. State and regional entities have already developed congestion relief and environmental mitigation plans, including the Goods Movement Action Plan and Emission Reduction Plan. Yet this bill would provide very little oversight to ensure compliance with these plans. In addition to lacking the coordination needed for long-term strategic growth, this bill misses the opportunity to leverage billions of dollars in available funding through public-private partnerships, which could otherwise increase investments in infrastructure geometrically.

Given the current economic downturn, it is vitally important that the state does not worsen the situation by mandating added costs on business that do not provide any public benefit. Since this bill was introduced, container fees have been raised by the ports at a rate 67% higher than the fee contemplated in this bill to pay for many of the same programs. Careful consideration must be given to any proposed solution as to its potential impact to our state's economy.

I have been publicly supportive of the concepts in this bill for over a year. My Administration worked with stakeholders of all interests to craft a bill that I could sign into law. Unfortunately, the bill does not include amendments requested by my Administration that would address the critical shortcomings of this legislation. I encourage the Legislature to develop legislation that provides proper guidance, oversight and accountability, ensures that the San Joaquin Valley is eligible for funds to address port-related cargo pollution, and allows for varied congestion reduction infrastructure.

For these reasons, I am returning this bill without my signature.

Sincerely,
Arnold Schwarzenegger

LBReport.com lists below supporters and opponents of the measure. The veto had been urged by Republican Vice Presidential nominee/Alaska Governor Sarah Palin, drawing fire from Democrats including Sen. Lowenthal and LB Mayor Bob Foster.

As previously reported by LBReport.com, at a Sept. 13 rally of about 200 regionwide Democrats at LB's Recreation Park, Mayor Foster told the crowd:

Mayor Foster: ...[Senator] Alan [Lowenthal] has a bill in Sacramento on container fees. To be able to improve the environment and improve the infrastructure in California, what does Sarah Palin do? Comes out and suggests that Arnold Schwarzenegger should veto it because her Alaskan people will pay a little bit more.

Let me tell you. We're tired [boos rising], yeah, boo is right, yeah. [boos subside] We are tired of having our kids contract asthma at record rates so someone else, either Nebraska or Alaska, can get a cheaper TV. [applause] We're done.

And what's really amazing is she doesn't even know or doesn't understand that the environmental effects of the Ports statewide produce 3,500 premature deaths in California a year. So what she wants to do in order to get a little economic benefit is in effect have enough Californians in two years to pass away that would equal the population of Wasilla, Alaska, in two years. (applause) Makes no sense to me but that's the kind of people that we're dealing with.

The final state Senate legislative analysis listed supporters and opponents below. [The City of Long Beach, via its City Council, voted to endorse the measure early-on in March 2007 while the Port of LB (independently governed by non-elected Harbor Commissioners) withheld its support until 2008 (after Sen. Lowenthal made most but not all amendments sought by the Port). LB's Wrigley Area Neighborhood Alliance supported the bill in summer 2008 near the end of its legislative process; LB's Wrigley Ass'n took no public position on the measure.]

SUPPORT:   (Verified  7/28/08)

Alameda Corridor-East Construction Authority
American Academy of Pediatrics, California Division
American Cancer Society
American Heart Association
American Lung Association of California
Anaheim Mayor Curt Pringle
Asthma Coalition of Los Angeles County
Ballard Power Systems Inc.
Bay Area Air Quality Management District
Breast Cancer Fund
Breathe California
California Air Pollution Control Officers Association
California Labor Federation
California League of Conservation Voters
California Natural Gas Vehicle Coalition
California-Nevada Conference of Operating Engineers
California Nurses Association
California Teamsters
California Thoracic Society
Cerritos Chamber of Commerce
Cities of Burbank, Cerritos, Commerce, Cudahy, Downey,
Lakewood, Long Beach, Signal Hill, and South Gate
Clean Power Campaign
Clear Edge Power
Clergy and Laity United for Economic Justice
Coalition for Clean Air
Coalition for A Safe Environment
Coalition on the Environment and Jewish Life of Southern
California
Communities for Clean Ports
Community Action to Fight Asthma
Consumer Attorneys of California
Defenders of Wildlife
DeMenno/Kerdoon
Downey Chamber of Commerce
Earth Day Los Angeles
East Yard Communities for Environmental Justice
Elizabeth Hudson Elementary School - Environmental
Committee
Environment California
Environmental Defense
Foothill Cardiology
Friends of the Earth
Gateway Chamber Alliance
Gateway Council of Governments (27 cities)
Glendale Heart Institute Medical Group
Harbor Watts Economic Development Corp.
Intex Solutions Inc.
Interfaith Environmental Council
Lakewood Chamber of Commerce
Long Beach Alliance for Children with Asthma
Long Beach Unified School District
Los Angeles Alliance for a New Economy
Los Angeles County Democratic Party
Los Angeles County Metropolitan Transportation Authority
Los Angeles County Supervisor Michael Antonovich
Los Angeles Environment Commissioner Maria Armoudian
Los Angeles Mayor Antonio R. Villaraigosa
Mayor Todd Campbell, City of Burbank
Medical Advocates for Healthy Air
Natural Resources Defense Council
Orange County Taxpayers Association
Orange County Transportation Authority
Pacific Coast Drapery Manufacturing (Anaheim, CA)
Pasadena Mayor Bill Bogaard
Parents for a Safer Environment
Parents for Safer Schools
People for Parks
Physicians for Social Responsibility
Planning and Conservation League
Plug In America
Progressive Christians Uniting
Regional Asthma Management & Prevention Initiative
Riverside Mayor Ron Loveridge
The River Project
San Gabriel Valley Council of Governments
San Gabriel Valley Economic Partnership
Santa Barbara County Air Pollution Control District
San Francisco Medical Society
SEIU Local 721 (85,000 members)
Sierra Club California
South Bay Cities Council of Governments (16 cities)
Southern California Association of Governments
South Coast Air Quality Management District
State Association of Electrical Workers
State Building and Construction Trades Council
Steven Bocho Productions
Strategic Concepts in Organizing & Policy Education
South Gate Chamber of Commerce
Union of Concerned Scientists
West Long Beach Association
West Oakland Environmental Indicators
World Oil Corp.

OPPOSITION:    (Verified  7/28/08)

Abercrombie and Fitch
ACG Cotton Marketing LLC
Ag Processing, Inc.
Agricultural Council of California
Agriculture Transportation Coalition
Allenberg Cotton Co.
Allen Group
Aloha Airlines
American Apparel and Footwear Association
American Chemistry Council
American Cotton Shippers Association
American Council for Food Safety and Quality
American Eagle Outfitters Inc.
American Electronics Association
American Foods Group
American Forest and Paper Association
American Import Shippers Association
Anheuser-Busch Companies, Inc.
Anzco Foods North American, Inc.
APL
Association of International Automobile Manufacturers
Badger Forest Products
Bank of Hawaii
Beall's, Inc.
Belk, Inc.
Best Buy
Blue Diamond Growers
Bonanza Foods and Provisions, Inc.
Bon-Ton Stores, Inc.
Border Valley Trading LTD
Borders Group, Inc.
Borges of California
Boscov's Department Stores, LLC.
Braun Export
Burger King, Inc.
CA Commodity Export Corporation
Calcot LTC
California Bean Shippers Association
California Business Properties Association
California Cattlemen's Association
California Chamber of Commerce
California Citrus Mutual
California Cotton Ginners and Growers Association
California Farm Bureau Federation
California Fisheries and Seafood Institute
California Grain and Feed Association
California Grape and Tree Fruit League
California Grocers Association
California Independent Grocers Association
California League of Food Processors
California Manufacturers & Technology Association
California Metals Coalition
California Nevada Soft Drink Association
California Railroad Industry
California Restaurant Association
California Retailers Association
California Seed Association
California Taxpayers Association
California Trade Coalition
California Trucking Association
California Warehouse Association
Carriere Family Farms
Castle & Cooke Homes Hawaii, Inc.
Casual Male Retail Group, Inc.
Central Pacific Bank
Chamber of Commerce of Hawaii
Charming Shoppes, Inc.
Circuit City
Coca-Cola Bottling Company of California
Coca-Coal Bottling Co. of Southern CA
Colorado Food Products
Columbine Vineyards of Delano, CA
Corona Chamber of Commerce
Crain Walnut Shelling, Inc.
Crate & Barrel
CTP Transport, Inc.
Dairy America, Inc.
Del Monte Foods
Derco Associates, Inc.
Diamond Foods, Inc.
Distilled Spirits Council
Dole Food Company, Inc.
Dressbarn, Inc.
Duncan and Sons Lines, Inc.
DVN Louis Dreyfus Corporation
E.I. DuPont de Nemours & Co.
ECOM USA, Inc.
Edwards Luggage
EFI Logistics, Inc.
Ethan Allan Global, Inc.
Food Marketing Institute
Foreign Trade Association of Southern California
Gap Inc.
Grain Millers, Inc.
Grocery Manufacturers/Food Products Association
Harbor Association of Industry & Commerce
Harland M. Braun and Company
Hawaii Island Chamber of Commerce
Hawaii Korean Chamber of Commerce
Hawaii Tourism Authority
Hedley Construction and Development
Heineken USA, Inc.
Hewlett-Packard Company
Home Depot
Howard Jarvis Tax Payers Association
Intel Corporation
JC Penney
Jo-Ann Fabric and Craft Stores
Jockey International
Kailua Chamber of Commerce
Kohl's Corporation
Lake Elsinore Valley Chamber of Commerce
Leading Lady
Levi Strauss & Co.
Limited Brands, Inc.
Limtiaco Company
Liz Claiborne Inc.
Long Beach Area Chamber of Commerce
Lowes
Macy's/Macy's West
Mallory Alexander International Logistics
Mathiesen Maritime Services, Inc.
Matson Navigation
Maurice's, Inc.
Mazda North American Operations
Meat Importers Council of America
Meridian Nut Growers LLC
Michaels Arts and Crafts
Midwest Shippers Association
Miller Brewing Company
Milpitas Chamber of Commerce
Mohawk Industries
Murphy Imports, LLC
Murrieta Chamber of Commerce
NAIOP Inland Empire
NAIOP SoCal
National Association of Industrial and Office Properties -
CA State Council
National Association of Manufacturers
National Chicken Council
National Federation of Independent Business
National Industrial Transportation League
National Retail Federation
National Turkey Federation
Natural & Organic Imports
Neiman Marcus
New Balance Athletic Shoe, Inc.
Newell Rubbermaid Inc.
Nike, Inc.
Nisei Farmers League
North Dakota Department of Agriculture
Office Depot
OZ Logistics Inc.
Pacific Coast Council of Customs Brokers & Freight
Forwarders
Pacific Egg and Poultry Association
Pacific Merchant Shipping Association
Panasonic Corporation of North America
Payless Shoe source
Perry Ellis International
Pier 1 Imports
Polo Ralph Lauren Corporation
Preferred Freezer Services
Ralphs Grocery Company
Red Wing Shoe Company
Redondo Beach Chamber of Commerce
Regional Legislative Alliance - Ventura/Santa Barbara
Counties
Rekerdres and Sons Insurance
Retail Industry Leaders Association
Retail Merchants of Hawaii
Rite-Aid
Rocky Brands, Inc.
Safeway, Inc.
SAMPCO, Inc.
San Rafael Luggage Center
Seaboard Foods LP
Securakey
Smurfit-Stone Container Company
Sonnet Technologies
Southlands Organic Ltd
Southwest California Legislative Council
Southwest Hide Company
Specialty Crop Trade Council
Spencer Gifts LLC
Spirit Halloween Superstores
Sporting Goods Manufacturers Association
SSA Marine
Starboard Alliance Company
Stop Hidden Taxes Coalition
Sunview Marketing International
Target
Temecula Valley Chamber of Commerce
The Refrigerated Shipping Association
Toy Association of Southern California
Toy Industry Association, Inc.
Transgroup Worldwide Logistics
Travel Goods Association
U.S. Association of Importers of Textiles & Apparel
U.S. Chamber of Commerce
United Laundry Services, Inc.
United States Council for International Business
U.S. Dairy Export Council
USA Poultry & Egg Export Council
Valley Industry and Commerce Association
Vergel N. Adonis Realty Inc.
VF Outdoor, Inc.
Voit Development Company
Walgreens
Wal-Mart Stores, Inc.
Washington State Potato Commission
Waste Management
Waterfront Coalition
Weil Brothers Cotton, Inc.
Western Cotton Shippers Association
Western Growers
Western United Dairymen
Wilson Homecare
Wine Institute
World Sake Imports
WS Badcock Corp, DBA Badcock Home Furnishings and More

In Sept. 2006, the Governor vetoed a substantively different container fee bill by Sen. Lowenthal (that Mayor Foster urged Schwarzenegger to sign while L.A. Mayor Antonio Villaraigosa remained publicly mum). Following that veto Sen. Lowenthal said he worked with the Governor's office in creating SB 974, which he called his "Port investment" bill.

At the same time, Sen. Lowenthal didn't reintroduce "no net increase in pollution" legislation -- that he'd previously called the most important legislation he'd introduced in all his years in Sacramento -- which had been a top priority of environmental groups.

In August 2006, the Assembly Democrats' leadership (via then-Appropriations Committee chair, Judy Chu) blocked the advance of Sen. Lowenthal's "no net increase" SB 764 which would have required that Port-related air pollutants not exceed current baseline levels with Port growth. Two years earlier in Sept. 2004, Gov. Schwarzenegger vetoed a similar Lowenthal "no net increase" bill (AB 2042) opposed by the Port of LB but supported by the LB City Council.

In June 2006 the Ports of LB/L.A. announced a self-written "Clean Air Action Plan," a legally non-binding document that forecasts deeper clean air improvements exceeding "no net increase" levels based on Port desired infrastructure that would expand its capacity (proponents say it would increase efficiency) and presumes regulatory support and technological upgrades. A month later, Sen. Lowenthal commended the Ports' "Clean Air Action Plan" but said the non-binding measure needs the legal enforcement mechanism of his "no net increase" bill (which Ass'y Dem leadership blocked a month later).

Asked by LBReport.com in Sept. 2005 (when he announced his Mayoral bid) if he supported Sen. Lowenthal's then-pending "no net increase" bill, then-candidate Foster said he'd told Sen. Lowenthal that he "had problems" with the bill. Mayor Foster hasn't said publicly if he supports such a measure, which had been supported by the LB City Council.

At a November 2006 CSULB conference, Sen. Lowenthal pledged to reintroduce his vetoed "no net increase" measure in 2007...but didn't...and the LB City Council under Foster quietly dropped its support for a "no net increase" measure.

Sen. Lowenthal and Mayor Foster both urged voters to approve Prop 1-B in November 2006...which will provide money for Port desired capacity-expanding infrastructure.

On Sept. 29, Mayor Foster's office announced his appointment to chair the U.S. Conference of Mayors' (USCM) Environmental Committee, joining USCM's president Manual Diaz's 11-member "cabinet."

"I'm honored by this appointment and I'm looking forward to chairing the Environmental Committee that will help influence the environmental policy across the country," said Foster in the release.

The USCM is a privately-run advocacy group governed by the Mayors, funded in part by dues/conference attendance (paid by taxpayers in the Mayors' member cities, including LB). Former LB Mayor Beverly O'Neil rose through the ranks and was the group's president for a year.

The term for the Environmental Committee Chair is for one year and is appointed by the USCM president. There are 40 mayors currently serving on the Environmental Committee, including the mayors of Atlanta, Las Vegas, Santa Barbara and Minneapolis. The purpose of the Environmental Committee is to develop USCM environmental policies that will be brought to the body of the USCM during the organization's winter and annual meetings.

"We are pleased that Mayor Bob Foster will be chairing the Environment Committee for The United States Conference of Mayors," said Tom Cochran, USCM CEO and Executive Director. "His leadership in the environment and energy field is well-known and well-respected throughout the nation. His experience will help lead the nation's Mayors in areas that are critical to the United States including climate change, air quality, and water infrastructure."

Mayor Foster will be one of the featured speakers for USCM's upcoming meeting in Miami during the "Environment and Energy" forum on Oct. 2.