California port container fee bill vetoed

Mike

Well-Known Member
Gov. Arnold Schwarzenegger has vetoed a bill that sought to generate $400 million annually from shippers at ports in the state, siding with Alaska Gov. Sarah Palin.

Sponsored by Sen. Alan Lowenthal, D-Long Beach, the measure – SB974 – called for 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 nation’s first-, second- and fourth-largest container ports would have been evenly distributed to ease congestion and to reduce air pollution.

Port of Oakland officials, however, said they “will move forward” with their planned cargo fee increase.

In a veto message, the governor said one reason he rejected the bill is that 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.

Palin wrote in a letter to Schwarzenegger, one day before she became the Republican vice presidential nominee, that the bill would add to the costs of goods shipped to her state.

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.

More: Land Line
 

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