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The Honolulu Advertiser
Updated at 4:15 p.m., Tuesday, July 15, 2008

New California fee will hurt Hawaii, business leader says

By Nancy Vogel
Los Angeles Times

SACRAMENTO, Calif. — Saying California children should not breathe soot so people across the country can buy cheap televisions, legislators Tuesday voted to impose a fee on every container moving through the ports of Long Beach, Los Angeles and Oakland.

The money — at least $400 million a year — would be used to ease the traffic congestion and air pollution generated by ports that move more than 40 percent of U.S. goods. Similar bills were vetoed or failed in the last two years, but author Sen. Alan Lowenthal, a Long Beach Democrat, said he is optimistic that his measure would be signed into law soon.

"We have built a statewide coalition to support the container fee," he said.

The list of opponents to the measure also include commodity growers — such as farmers of cotton and almonds — clothing store chains, electronic manufacturers and the Chamber of Commerce of Hawai'i.

Chamber President Jim Tollefson estimated that 90 percent of the goods in Hawai'i are shipped from the West Coast.

"The cost will be borne by the shipping company," said Tollefson, "and then it will be passed on to the ultimate consumer, in this case, the people of Hawai'i. In simple terms, it's about $50 a year for every man, woman and child."

The measure would impose on shippers a fee of $60 for every typical-size cargo container leaving or entering the ports. The money would be used across Southern California for such projects as installing cleaner-burning truck and train engines and building roadways under or over railroad tracks to avoid long lines of idling vehicles.

The Assembly voted 45-24 to pass Lowenthal's bill. The Senate is expected to give final approval to amendments soon. Gov. Arnold Schwarzenegger has offered no official position on the bill, but said through spokeswoman Rachel Cameron that "we do support finding a solution to ensure California's air quality is protected while facilitating the movement of goods throughout the state."

Democrats praised the measure as a smart way to try to mitigate the foul air and clogged roads that are a byproduct of the ports' immense economic activity.

Assemblyman Hector De La Torre estimated the total value of goods shipped through Long Beach and Los Angeles ports at $378 billion and the total sum generated by the fee at $500 million a year.

"So you're going to add on 0.13 percent to somebody's cheap TV in Peoria, Illinois. Big deal," he said.

Assemblywoman Betty Karnette, a Long Beach Democrat, said people are dying of pollution in her district, and shippers bringing in cheap imports from China and elsewhere should pay.

"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."

A few other California cities, including Stockton and San Diego, have ports, but most cargo containers are unloaded in Los Angeles, Long Beach and Oakland.

The fee in Lowenthal's legislation is $30 per 20-foot equivalent cargo containers. Most containers stretch 40 feet. The fee would take effect in January.

Republicans predicted that the measure would push up the prices of many products and drive business to other West Coast ports such as Seattle.