BILL NUMBER: SB 974	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  SEPTEMBER 5, 2007
	AMENDED IN SENATE  MAY 24, 2007
	AMENDED IN SENATE  APRIL 30, 2007
	AMENDED IN SENATE  APRIL 9, 2007

INTRODUCED BY   Senator Lowenthal
   (Principal coauthor: Assembly Member De La Torre)
   (Coauthors: Senators Kehoe, Kuehl, Migden, and Steinberg)
   (Coauthors: Assembly Members Carter, DeSaulnier,  Eng, 
Hancock,  and Karnette   Karnette,  
and Solorio  )

                        FEBRUARY 23, 2007

    An act to add Article 10 (commencing with Section
63049.70) to Chapter 2 of Division 1 of Title 6.7 of the Government
Code, to amend   An act to amend  and renumber
Section 1760 of, to add a heading to Chapter 1 (commencing with
Section 1720) of, and to add Chapter 2 (commencing with Section 1740)
to, Part 2 of Division 6 of, the Harbors and Navigation Code,
relating to ports  , and making an appropriation therefor
 .



	LEGISLATIVE COUNSEL'S DIGEST


   SB 974, as amended, Lowenthal. Ports: congestion relief: 
environmental   air pollution  mitigation:
regulatory fee.
   (1) Existing law regulates the operation of ports and harbors.
   This bill would require the Ports of Los Angeles, Long Beach, and
Oakland to collect a user fee on the owner of container cargo moving
through the Port of Los Angeles, the Port of Long Beach, or the Port
of Oakland at a rate of $30 per twenty-foot equivalent unit (TEU).
   The bill would require the Ports of Los Angeles and Long Beach
 (San Pedro Bay Ports) to transmit 1/2 of the funds derived
from imposition of the fee to the  Southern California Port
  San Pedro Bay Ports  Congestion Relief Trust Fund
 , which the bill would establish in the State Treasury,
 and 1/2 to the  Southern California Port 
 San Pedro Bay Ports  Mitigation Relief Trust Fund, which
 funds  the  bill would   San Pedro Bay
Ports would be required to  establish  in the State
Treasury  . The bill would require the Port of Oakland to
transmit 1/2 of the funds derived from imposition of the fee to the
 Northern California Port   Port of Oakland
 Congestion Relief Trust Fund , which the bill would
establish in the State Treasury,  and 1/2 to the 
Northern California Port   Port of Oakland 
Mitigation Relief Trust Fund, which  funds  the 
bill would   Port of Oakland would be required to 
establish  in the State Treasury  .
   The bill would require the moneys transmitted to the 
Southern California Port   San Pedro Bay Ports 
Congestion Relief Trust Fund and the  Northern California
Port   Port of Oakland  Congestion Relief Trust
Fund to be available  , upon appropriation,  for
expenditure by the California Transportation Commission exclusively
for the purposes of funding projects that improve the flow and
efficiency of container cargo to and from those ports, and funding
the administrative costs of this program. The bill would prohibit
moneys deposited in those funds from being loaned or transferred to,
or allocated or appropriated in any other way to, the 
General Fund  general fund of specified local entities
 . The bill would prohibit the commission from using the funds
to construct, maintain, or improve highways, with certain exceptions.

   The bill would require the moneys transmitted to the 
Southern California Port   San Pedro Bay Ports 
Mitigation Relief Trust Fund and the  Northern California
Port   Port of Oakland  Mitigation Relief Trust
Fund to be available  , upon appropriation,  for
expenditure by the State Air Resources Board to develop a list of
projects to mitigate  environmental  air 
pollution caused by the movement of  container  cargo to and
from those ports, and for the administration of this program. The
bill would prohibit moneys deposited in those funds from being loaned
or transferred to, or allocated or appropriated in any other way to,
the  General Fund   general fund of specified
local entities  .
   The bill would establish a state-mandated local program by
imposing these additional duties upon the ports. 
   (2) Existing law sets forth the duties of the Infrastructure and
Economic Development Bank and its board of directors generally in
performing various financing transactions, including the issuance of
bonds.  
   This bill would authorize the bank to enter into financing
agreements with participating parties to finance or refinance
Southern California and Northern California port congestion relief
projects and Southern California and Northern California port
mitigation relief projects. The bank would be authorized to issue
revenue bonds. User fees on container ships from the Southern and
Northern California Port Congestion Relief Trust Funds and the
Southern and Northern California Mitigation Relief Trust Funds would
be continuously appropriated to the bank to secure any revenue bonds.

    The bill would authorize the San Pedro Bay Ports and the Port
of Oakland, through the City of Oakland, to enter into financing
agreements with participating parties to finance or refinance San
Pedro Bay Ports and Port of Oakland congestion and mitigation relief
projects. The San Pedro Bay Ports and the Port of Oakland would be
authorized to issue revenue bonds to fund these projects, and user
fees on container cargo from the San Pedro Bay Ports and Port of
Oakland Congestion Relief Trust Funds and the San Pedro Bay Ports and
Port of Oakland Mitigation Relief Trust Funds would be used to
secure any revenue bonds.  
   (3) 
    (2)  The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation:  yes  no 
. Fiscal committee: yes. State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Article 10 (commencing with Section
63049.70) is added to Chapter 2 of Division 1 of Title 6.7 of the
Government Code, to read:

      Article 10.  Financing of Port Congestion Relief and Port
Mitigation Relief


   63049.70.  The definitions contained in this section are in
addition to the definitions contained in Section 63010 and together
with the definitions contained in that section shall govern the
construction of this article, unless the context requires otherwise:
   (a) "Credit facility" means all obligations, including principal,
interest, fees, costs, indemnities, and all other amounts incurred by
the bank under or in connection with any credit enhancement or
liquidity agreement, including a letter of credit, standby purchase
agreement, reimbursement agreement, liquidity facility, or other
similar arrangement entered into by the bank.
   (b) "Northern California port congestion relief container fee
revenue" means all of the following:
   (1) Income and receipts derived by the bank from Northern
California port congestion relief container fees.
   (2) Interest and other income from investment of money in any fund
or account established pursuant to an indenture for Northern
California Port Congestion Relief Container Fee Revenue Bonds, other
than any fund established to rebate investment earnings to the
federal government.
   (A) Amounts on deposit in these funds and accounts, other than any
fund or account established to rebate investment earnings to the
federal government and any fund or account established to hold the
proceeds of a drawing on any liquidity or credit support facility for
these bonds.
   (B) Net income and net receipts derived by the bank on account of
interest rate swaps with respect to these bonds.
   (c) "Northern California Port Congestion Relief Container Fee
Revenue Bonds" means revenue bonds issued pursuant to this article
that are payable from Northern California port congestion relief
container fee revenue.
   (d) "Northern California port congestion relief container fees"
means all user fees that are imposed pursuant to Section 1747 of the
Harbors and Navigation Code and remitted to the Northern California
Port Congestion Relief Trust Fund in the State Treasury.
   (e) "Northern California port congestion relief project" means
each project for public development facilities and economic
development facilities for which the expenditure of funds has been
approved by the California Transportation Commission pursuant to
Section 1751 of the Harbors and Navigation Code.
   (f) "Northern California port mitigation relief container fee
revenue" means all of the following:
   (1) Income and receipts derived by the bank from Northern
California port mitigation relief container fees.
   (2) Interest and other income from investment of money in any fund
or account established pursuant to an indenture for Northern
California Port Mitigation Relief Container Fee Revenue Bonds, other
than any fund established to rebate investment earnings to the
federal government.
   (A) Amounts on deposit in these funds and accounts, other than any
fund or account established to rebate investment earnings to the
federal government and any fund or account established to hold the
proceeds of a drawing on any liquidity or credit support facility for
these bonds.
   (B) Net income and net receipts derived by the bank on account of
interest rate swaps with respect to these bonds.
   (g) "Northern California Port Mitigation Relief Container Fee
Revenue Bonds" means revenue bonds issued pursuant to this article
that are payable from Northern California port mitigation relief
container fee revenue.
   (h) "Northern California port mitigation relief container fees"
means all user fees that are imposed pursuant to Section 1747 of the
Harbors and Navigation Code and remitted to the Northern California
Port Mitigation Relief Trust Fund in the State Treasury.
   (i) "Northern California port mitigation relief project" means
each project for public development facilities and economic
development facilities for which the expenditure of funds has been
approved by the State Air Resources Board pursuant to Section 1753 of
the Harbors and Navigation Code.
   (j) "Southern California port congestion relief container fee
revenue" means all of the following:
   (1) Income and receipts derived by the bank from Southern
California port congestion relief container fees.
   (2) Interest and other income from investment of money in any fund
or account established pursuant to an indenture for Southern
California Port Congestion Relief Container Fee Revenue Bonds, other
than any fund established to rebate investment earnings to the
federal government.
   (A) Amounts on deposit in these funds and accounts, other than any
fund or account established to rebate investment earnings to the
federal government and any fund or account established to hold the
proceeds of a drawing on any liquidity or credit support facility for
these bonds.
   (B) Net income and net receipts derived by the bank on account of
interest rate swaps with respect to these bonds.
   (k) "Southern California Port Congestion Relief Container Fee
Revenue Bonds" means revenue bonds issued pursuant to this article
that are payable from Southern California port congestion relief
container fee revenue.
   (l) "Southern California port congestion relief container fees"
means all user fees that are imposed pursuant to Sections 1745 and
1746 of the Harbors and Navigation Code and remitted to the Southern
California Port Congestion Relief Trust Fund in the State Treasury.
   (m) "Southern California port congestion relief project" means
each project for public development facilities and economic
development facilities for which the expenditure of funds has been
approved by the California Transportation Commission pursuant to
Section 1750 of the Harbors and Navigation Code.
   (n) "Southern California port mitigation relief container fee
revenue" means all of the following:
   (1) Income and receipts derived by the bank from Southern
California port mitigation relief container fees.
   (2) Interest and other income from investment of money in any fund
or account established pursuant to an indenture for Southern
California Port Mitigation Relief Container Fee Revenue Bonds, other
than any fund established to rebate investment earnings to the
federal government.
   (3) Amounts on deposit in these funds and accounts, other than any
fund or account established to rebate investment earnings to the
federal government and any fund or account established to hold the
proceeds of a drawing on any liquidity or credit support facility for
these bonds.
   (4) Net income and net receipts derived by the bank on account of
interest rate swaps with respect to these bonds.
   (o) "Southern California Port Mitigation Relief Container Fee
Revenue Bonds" means revenue bonds issued pursuant to this article
that are payable from Southern California port mitigation relief
container fee revenue.
   (p) "Southern California port mitigation relief container fees"
means all user fees that are imposed pursuant to Sections 1745 and
1746 of the Harbors and Navigation Code and remitted to the Southern
California Port Mitigation Relief Trust Fund in the State Treasury.
   (q) "Southern California port mitigation relief project" means
each project for public development facilities and economic
development facilities for which the expenditure of funds has been
approved by the State Air Resources Board pursuant to Section 1752 of
the Harbors and Navigation Code.
   63049.71.  (a) The bank may enter into financing agreements with
participating parties for the purpose of financing or refinancing
Southern California port congestion relief projects and Southern
California port mitigation relief projects.
   (b) The bank may issue bonds pursuant to this chapter as Southern
California Port Congestion Relief Container Fee Revenue Bonds to
finance or refinance Southern California port congestion relief
projects and as Southern California Port Mitigation Relief Container
Fee Revenue Bonds to finance or refinance Southern California port
mitigation relief projects. The aggregate principal amount of the
bonds that may be issued is unlimited, but the aggregate principal
amount of the bonds that may be outstanding at any one time is five
billion dollars ($5,000,000,000). The revenue bonds may also be
issued to finance necessary reserves, capitalized interest, credit
enhancement costs, and costs of issuance of the revenue bonds. The
last date for payment of principal of any revenue bond may not be
more than 30 years after the date of issuance of the revenue bond.
   (c) Principal of and interest and redemption premiums on Southern
California Port Congestion Relief Container Fee Revenue Bonds and
Southern California Port Mitigation Relief Container Fee Revenue
Bonds shall be payable from, and secured by, Southern California port
congestion relief container fee revenue and Southern California port
mitigation relief container fee revenue, respectively, as and to the
extent provided in the constituent instruments defining the rights
of the holders of the bonds.
   63049.72.  (a) The bank may enter into financing agreements with
participating parties for the purpose of financing or refinancing
Northern California port congestion relief projects and Northern
California port mitigation relief projects.
   (b) The bank may issue bonds pursuant to this chapter as Northern
California Port Congestion Relief Container Fee Revenue Bonds to
finance or refinance Northern California port congestion relief
projects and as Northern California Port Mitigation Relief Container
Fee Revenue Bonds to finance or refinance Northern California port
mitigation relief projects. The aggregate principal amount of the
bonds that may be issued is unlimited, but the aggregate principal
amount of the bonds that may be outstanding at any one time is five
billion dollars ($5,000,000,000). The revenue bonds may also be
issued to finance necessary reserves, capitalized interest, credit
enhancement costs, and costs of issuance of the revenue bonds. The
last date for payment of principal of any revenue bond may not be
more than 30 years after the date of issuance of the revenue bond.
   (c) Principal of and interest and redemption premiums on Northern
California Port Congestion Relief Container Fee Revenue Bonds and
Northern California Port Mitigation Relief Container Fee Revenue
Bonds shall be payable from, and secured by, Northern California port
congestion relief container fee revenue and Northern California port
mitigation relief container fee revenue, respectively, all as and to
the extent provided in the constituent instruments defining the
rights of the holders of the bonds.
   63049.73.  (a) The bank may pledge all or any portion of the
Southern California port congestion relief container fees to secure
Southern California Port Congestion Relief Container Fee Revenue
Bonds, and credit facilities for these bonds, and all or any portion
of the Southern California port mitigation relief container fees to
secure Southern California Port Mitigation Relief Container Fee
Revenue Bonds, and credit facilities for these bonds. All Southern
California port congestion relief container fees and Southern
California port mitigation relief container fees so pledged are
hereby continuously appropriated, notwithstanding Section 13340,
without regard to fiscal years, to the bank, and, if the bank so
directs, shall be paid to the indenture trustee for these bonds each
month, from the Southern California Port Congestion Relief Trust Fund
and the Southern California Port Mitigation Relief Trust Fund for so
long as any of the bonds are outstanding. Any Southern California
port congestion relief container fees and Southern California port
mitigation relief container fees that are not required to be retained
by the indenture trustee pursuant to the constituent instruments
defining the rights of the holders of the bonds shall be remitted by
the indenture trustee to the Southern California Port Congestion
Relief Trust Fund and the Southern California Port Mitigation Relief
Trust Fund and shall be disbursed at the request and direction of the
California Transportation Commission and the State Air Resources
Board, respectively, for Southern California port congestion relief
projects and Southern California port mitigation relief projects that
are not being financed with revenue bonds issued by the bank, and
these funds are available upon appropriation by the Legislature, for
that purpose.
   (b) The state hereby pledges to and agrees with the holders of
revenue bonds issued pursuant to this article, and each provider of a
letter of credit, standby purchase agreement, reimbursement
agreement, liquidity facility, or other similar arrangement for the
benefit of the revenue bonds, that the state will not limit, alter,
or restrict each pledge of Southern California port congestion relief
container fees and Southern California port mitigation relief
container fees permitted hereby and any other terms of any agreement
made with or for the benefit of the holders of the revenue bonds or
the providers or in any way impair the rights or remedies of the
holders of the bonds or the providers or reduce or terminate the fees
while any of the bonds remain outstanding.
   63049.74.  (a) The bank may pledge all or any portion of the
Northern California port congestion relief container fees to secure
Northern California Port Congestion Relief Container Fee Revenue
Bonds, and credit facilities for these bonds, and all or any portion
of the Northern California port mitigation relief container fees to
secure Northern California Port Mitigation Relief Container Fee
Revenue Bonds, and credit facilities for these bonds. All Northern
California port congestion relief container fees and Northern
California port mitigation relief container fees so pledged are
hereby continuously appropriated, notwithstanding Section 13340,
without regard to fiscal years, to the bank, and, if the bank so
directs, shall be paid to the indenture trustee for the bonds each
month, from the Northern California Port Congestion Relief Trust Fund
and the Northern California Port Mitigation Relief Trust Fund for so
long as any of the bonds are outstanding. Any Northern California
port congestion relief container fees and Northern California port
mitigation relief container fees that are not required to be retained
by the indenture trustee pursuant to the constituent instruments
defining the rights of the holders of the bonds shall be remitted by
the indenture trustee to the Northern California Port Congestion
Relief Trust Fund and the Northern California Port Mitigation Relief
Trust Fund and shall be disbursed at the request and direction of the
California Transportation Commission and the State Air Resources
Board, respectively, for Northern California port congestion relief
projects and Northern California port mitigation relief projects that
are not being financed with revenue bonds issued by the bank, and
these funds are available upon appropriation by the Legislature, for
that purpose.
   (b) The state hereby pledges to and agrees with the holders of
revenue bonds issued pursuant to this article, and each provider of a
letter of credit, standby purchase agreement, reimbursement
agreement, liquidity facility, or other similar arrangement for the
benefit of the revenue bonds, that the state will not limit, alter,
or restrict each pledge of Northern California port congestion relief
container fees and Northern California port mitigation relief
container fees permitted hereby and any other terms of any agreement
made with or for the benefit of the holders of the revenue bonds or
the providers or in any way impair the rights or remedies of the
holders of the bonds or the providers or reduce or terminate the fees
while any of the bonds remain outstanding.
   63049.75.  Notwithstanding any other provision of law, Article 3
(commencing with Section 63040), Article 4 (commencing with Section
63042), and Article 5 (commencing with Section 63043) of this chapter
do not apply to any financing provided by the bank pursuant to this
article, and the principal amount of revenue bonds issued pursuant to
this article and Chapter 5 (commencing with Section 63070) shall not
count against the limit stated in the first sentence of subdivision
(b) of Section 63071. 
   SEC. 2.  SECTION 1.   The heading of
Chapter 1 (commencing with Section 1720) is added to Part 2 of
Division 6 of the Harbors and Navigation Code, immediately preceding
Section 1720, to read:
      CHAPTER 1.  PORT FACILITY CONSTRUCTION


   SEC. 3.   SEC. 2.   Chapter 2
(commencing with Section 1740) is added to Part 2 of Division 6 of
the Harbors and Navigation Code, to read:
      CHAPTER 2.  PORT CONGESTION RELIEF AND PORT MITIGATION RELIEF



      Article 1.  General Provisions


   1740.  The Legislature hereby finds and declares all of the
following:
   (a) There is a need to mitigate the enormous burden imposed on the
highway transportation system serving the Ports of Los Angeles, Long
Beach, and Oakland by the overland movement of  container 
cargo shipped  from and to   to and from 
those ports. 
   (b) The operation of the ports causes environmental pollution

    (b)     The operation of the ports and
trains, ships, and trucks that move cargo containers to and from the
ports cause air pollution    that requires mitigation.
   (c) The improvement of goods movement infrastructure would benefit
the owners of container cargo moving through the ports by allowing
the owners of the cargo to move container cargo more efficiently 
and reliably,  and to move more cargo through those ports.
   (d) The reduction of goods movement  air  pollution would
benefit the owners of container cargo moving through the ports by
meeting federal air quality standards, which will allow for continued
federal funding of goods movement infrastructure projects.
   (e) Accordingly, it is the intent of the Legislature to alleviate
these burdens by imposing a fee on shipping containers processed
through those ports and using the funds derived from that fee to do
both of the following:
   (1) Improve the rail system that serves as an alternative to
shipping on the highway by commercial vehicle, including, but not
limited to, the ondock rail facilities at those ports. 
   (2) Mitigate the environmental pollution caused by port
operations.  
   (2) Mitigate the air pollution resulting from port operations
moving container cargo.  
   1741.  (a) There is hereby established in the State Treasury the
Southern California Port Congestion Relief Trust Fund.
   (b) There is hereby established in the State Treasury the Southern
California Port Mitigation Relief Trust Fund.
   (c) There is hereby established in the State Treasury the Northern
California Port Congestion Relief Trust Fund.
   (d) There is hereby established in the State Treasury the Northern
California Port Mitigation Relief Trust Fund.  
   1743.  For purposes of this chapter, the following definitions
apply:
   (a) "Board" means the State Air Resources Board.
   (b) "Commission" means the California Transportation Commission.
   (c) "Northern California Congestion Fund" means the Northern
California Port Congestion Relief Trust Fund.
   (d) "Northern California Mitigation Fund" means the Northern
California Port Mitigation Relief Trust Fund.
   (e) "Port" means the Port of Los Angeles, Port of Long Beach, or
Port of Oakland, as appropriate.
   (f) "Southern California Congestion Fund" means the Southern
California Port Congestion Relief Trust Fund.
   (g) "Southern California Mitigation Fund" means the Southern
California Port Mitigation Relief Trust Fund.  
   1741.  (a) There is hereby established the Southern California
Goods Movement Authority. The authority shall be composed of one
representative from each of the following:
   (1) The Port of Los Angeles, appointed by the Los Angeles Board of
Harbor Commissioners.
   (2) The Port of Long Beach, appointed by the Long Beach Board of
Harbor Commissioners.
   (3) The City of Los Angeles, appointed by the Mayor of Los
Angeles.
   (4) The City of Long Beach, appointed by the Mayor of Long Beach.
   (5) The Los Angeles County Metropolitan Transportation Authority,
appointed by the board of directors of the Los Angeles County
Metropolitan Transportation Authority.
   (6) The Orange County Transportation Authority, appointed by the
board of directors of the Orange County Transportation Authority.
   (7) The Riverside County Transportation Commission.
   (8) The San Bernardino Associated Governments.
   (9) The Alameda Corridor East Construction Authority.
   (b) The authority shall be organized solely for the purpose of
establishing a priority list of projects pursuant to Section 1750.
Each representative shall have one vote when determining the list of
projects. When deciding on a list of projects, the authority shall
have at least a majority of its members supporting the list that is
transmitted to the California Transportation Commission.
   (c) For organization and meeting purposes, the Alameda Corridor
Transportation Authority shall provide staff and meeting space for
the authority and shall be reimbursed for these administrative
expenses pursuant to Sections 1745 and 1746. All public meeting laws
that apply to the City of Long Beach and the City of Los Angeles
shall apply to the authority.  
   1743.  For purposes of this chapter, the following definitions
apply:
   (a) "Authority" means the Southern California Goods Movement
Authority.
   (b) "Board" means the State Air Resources Board.
   (c) "Commission" means the California Transportation Commission.
   (d) "District" means the Bay Area Air Quality Management District
or the South Coast Air Quality Management District, as appropriate.
   (e) "MTC" means the Metropolitan Transportation Commission.
   (f) "Port" means the Port of Los Angeles, the Port of Long Beach,
or the Port of Oakland, otherwise known as the City of Oakland acting
by and through its Board of Port Commissioners, as appropriate.
   (g) "Port of Oakland Congestion Fund" means the Port of Oakland
Congestion Relief Trust Fund.
   (h) "Port of Oakland congestion relief container fee revenue"
means income and receipts derived by that port from Port of Oakland
congestion relief container fees.
   (i) "Port of Oakland Congestion Relief Container Fee Revenue Bonds"
means revenue bonds issued pursuant to the City of Oakland City
Charter that are payable from Port of Oakland congestion relief
container fee revenue.
   (j) "Port of Oakland congestion relief container fees" means all
user fees that are imposed pursuant to Section 1747 and remitted to
the Port of Oakland Congestion Fund.
   (k) "Port of Oakland congestion relief project" means each project
for public development facilities and economic facilities for which
the expenditure of funds has been approved by the commission pursuant
to Section 1751.
   (l) "Port of Oakland Mitigation Fund" means the Port of Oakland
Mitigation Relief Trust Fund.
   (m) "Port of Oakland mitigation relief container fee revenue"
means income and receipts derived by the port from Port of Oakland
mitigation relief container fees.
   (n) "Port of Oakland Mitigation Relief Container Fee Revenue Bonds"
means revenue bonds issued pursuant to the City of Oakland City
Charter that are                                            payable
from Port of Oakland mitigation relief container fee revenue.
   (o) "Port of Oakland mitigation relief container fees" means all
user fees that are imposed pursuant to Section 1747 and remitted to
the Port of Oakland Mitigation Fund.
   (p) "Port of Oakland mitigation relief project" means each project
for public development facilities and economic development
facilities for which the expenditure of funds has been approved by
the State Air Resources Board pursuant to Section 1753.
   (q) "San Pedro Bay Ports" means the Ports of Los Angeles and Long
Beach.
   (r) "San Pedro Bay Ports Congestion Fund" means the San Pedro Bay
Ports Congestion Relief Trust Fund.
   (s) "San Pedro Bay Ports congestion relief container fee revenue"
means income and receipts derived by the San Pedro Bay Ports from San
Pedro Bay Ports congestion relief container fees.
   (t) "San Pedro Bay Ports Congestion Relief Container Fee Revenue
Bonds" means revenue bonds issued by the San Pedro Bay Ports that are
payable from San Pedro Bay Ports congestion relief container fee
revenue.
   (u) "San Pedro Bay Ports congestion relief container fees" means
all user fees that are imposed pursuant to Sections 1745 and 1746 and
remitted to the San Pedro Bay Ports Congestion Fund.
   (v) "San Pedro Bay Ports congestion relief project" means each
project for public development facilities and economic development
facilities for which the expenditure of funds has been approved by
the authority pursuant to Section 1750.
   (w) "San Pedro Bay Ports Mitigation Fund" means the San Pedro Bay
Ports Mitigation Relief Trust Fund.
   (x) "San Pedro Bay Ports mitigation relief container fee revenue"
means income and receipts derived by the San Pedro Bay Ports from San
Pedro Bay Ports mitigation relief container fees.
   (y) "San Pedro Bay Ports Mitigation Relief Container Fee Revenue
Bonds" means revenue bonds issued by the San Pedro Bay Ports that are
payable from San Pedro Bay Ports mitigation relief container fee
revenue.
   (z) "San Pedro Bay Ports mitigation relief container fees" means
all user fees that are imposed pursuant to Sections 1745 and 1746 and
remitted to the San Pedro Bay Ports Mitigation Fund.
   (aa) "San Pedro Bay Ports mitigation relief project" means each
project for public development facilities and economic development
facilities for which the expenditure of funds has been approved by
the South Coast Air Quality Management District pursuant to Section
1752.  
   1744.  The provisions of this chapter are severable. If any
provision of this chapter or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application. 

      Article 2.  User Fee


   1745.  (a) Beginning January 1, 2008, the Port of Los Angeles
shall develop a process for notifying the owner of, and collecting a
user fee from the owner of, container cargo moving through the port.
   (b) No later than June 1, 2008, the port shall notify the owner of
cargo moving through the port that it will be assessed a user fee
not to exceed thirty dollars ($30) per 20-foot equivalent unit (TEU).
The notice shall include, but not be limited to, the process for
payment of the user fee, the frequency for payment of the user fee,
and that the user fee is being assessed to improve the goods movement
infrastructure serving the port, to reduce  air  pollution
from all forms of equipment, vehicles, locomotives, and ships that
operate at the port and bring containers to and from the port.
   (c) Beginning January 1, 2009, the port shall assess a user fee on
the owner of container cargo moving through the port not to exceed
thirty dollars ($30) per TEU. The port shall collect the fee at least
twice a year. 
   (1) The port shall remit one-half of the user fee to the Southern
California 
    (1)     The San Pedro Bay Ports shall 
 establish and maintain a special purpose trust fund named the
San Pedro Bay Ports Congestion Relief Trust Fund. The port shall
remit one-half of the user fee to the San Pedro Bay Ports 
Congestion Fund.  Upon appropriation, moneys  
Moneys  deposited in that fund shall be available for
expenditure by the  commission   authority 
exclusively for the purposes of funding projects that improve the
flow and efficiency of container cargo to and from the Port of Los
Angeles, and to fund the administrative costs of this program. Moneys
deposited in that fund shall not be loaned or transferred 
to, or allocated or appropriated in any other way to, the General
Fund.   to the general fund of the Port or City of Los
Angeles or the Port or City or Long Beach.  
   (2) The port shall remit one-half of the user fee to the Southern
California 
    (2)     The San Pedro Bay Ports shall
establish and maintain a special purpose trust fund named the San
Pedro Bay Ports Mitigation Relief Trust Fund. The port shall remit
one-half of the user fee to the San Pedro Bay Ports Mitigation Relief
Trust  Mitigation Fund.  Upon appropriation, moneys
  Moneys  deposited in that fund shall be available
for expenditure by the  board   South Coast Air
Quality Management District  to mitigate  environmental
  air  pollution caused by the movement of 
container  cargo to and from the Port of Los Angeles by
commercial motor vehicles, oceangoing vessels, and rail, and to fund
the administrative costs of this program. Moneys deposited in that
fund shall not be loaned  or transferred to, or allocated or
appropriated in any other way to, the General Fund.   or
transferred to the general fund of the Port or City of Los Angeles
or the Port or City of Long Beach. 
   (d) The port may contract with PierPass for the collection of the
user fee authorized pursuant to this section.
   1746.  (a) Beginning January 1, 2008, the Port of Long Beach shall
develop a process for notifying the owner of, and collecting a user
fee from the owner of, container cargo moving through the port.
   (b) No later than June 1, 2008, the port shall notify the owner of
cargo moving through the port that it will be assessed a user fee
not to exceed thirty dollars ($30) per 20-foot equivalent unit (TEU).
The notice shall include, but not be limited to, the process for
payment of the user fee, the frequency for payment of the user fee,
and that the user fee is being assessed to improve the goods movement
infrastructure serving the port, to reduce  air  pollution
from all forms of equipment, vehicles, locomotives, and ships that
operate at the port and bring containers to and from the port.
   (c) Beginning January 1, 2009, the port shall assess a user fee on
the owner of container cargo moving through the port not to exceed
thirty dollars ($30) per TEU. The port shall collect the fee at least
twice a year. 
   (1) The port shall remit one-half of the user fee to the Southern
California 
    (1)     The San Pedro Bay Ports shall
establish and maintain a   special purpose trust fund named
the San Pedro Bay Ports Congestion Relief Trust Fund. The port shall
remit one-half of the user fee to the San Pedro Bay Ports 
Congestion Fund.  Upon appropriation, moneys  
Moneys  deposited in that fund shall be available for
expenditure by the  commission   authority 
exclusively for the purposes of funding projects that improve the
flow and efficiency of container cargo to and from the Port of Long
Beach, and to fund the administrative costs of this program. Moneys
deposited in that fund shall not be loaned or transferred 
to, or allocated or appropriated in any other way to, the General
Fund.   to the general fund of the Port or City of Los
Angeles or the Port or City of Long Beach.  
   (2) The port shall remit one-half of the user fee to the Southern
California 
    (1)     The San Pedro Bay Ports shall
establish and maintain a special purpose trust fund named the San
Pedro Bay Ports Congestion Relief Trust Fund. The port shall remit
one-half of the user fee to the San Pedro Bay Ports  Mitigation
Fund.  Upon appropriation, moneys   Moneys 
deposited in that fund shall be available for expenditure by the
 board   South Coast Air Quality Management
District  to mitigate  environmental   air
 pollution caused by the movement of  container  cargo
to and from the Port of Long Beach by commercial motor vehicles,
oceangoing vessels, and rail, and to fund the administrative costs of
this program. Moneys deposited in that fund shall not be loaned
 or transferred to, or allocated or appropriated in any other
way to, the General Fund.   or transferred to the
general fund of the Port or City of Los Angeles or the Port or City
of Long Beach. 
   (d) The port may contract with PierPass for the collection of the
user fee authorized pursuant to this section.
   1747.  (a) Beginning January 1, 2008, the Port of Oakland shall
develop a process for notifying the owner of, and collecting a user
fee from the owner of, container cargo moving through the port.
   (b) No later than June 1, 2008, the port shall notify the owner of
 container  cargo moving through the port that it will be
assessed a user fee not to exceed thirty dollars ($30) per 20-foot
equivalent unit (TEU). The notice shall include, but not be limited
to, the process for payment of the user fee, the frequency for
payment of the user fee, and that the user fee is being assessed to
improve the goods movement infrastructure serving the port, to reduce
 air  pollution from all forms of equipment, vehicles,
locomotives, and ships that operate at the port and bring containers
to and from the port.
   (c) Beginning January 1, 2009, the port shall assess a user fee on
the owner of container cargo moving through the port not to exceed
thirty dollars ($30) per TEU. The port shall collect the fee at least
twice a year. 
   (1) The port shall remit one-half of the user fee to the Northern
California 
    (1)     The   port shall establish
and maintain a special purpose trust fund named the Port of Oakland
Congestion Relief Trust Fund and remit one-half of the user fee to
the Port of Oakland  Congestion Fund.  Upon
appropriation, moneys   Moneys  deposited in that
fund shall be available for expenditure by the commission exclusively
for the purposes of funding projects that improve the flow and
efficiency of container cargo to and from the Port of Oakland and to
fund the administrative costs of this program. Moneys deposited in
that fund shall not be loaned or transferred  to, or
allocated or appropriated in any other way to, the General Fund.
  to the   general fund of the Port or City of
Oakland.  
   (2) The port shall remit one-half of the user fee to the Northern
California 
    (2)     The port shall establish and
maintain a special purpose trust fund named the Port of Oakland
Mitigation Relief Trust Fund and remit one-half of the user fee to
the Port of Oakland  Mitigation Fund.  Upon
appropriation, moneys   Moneys  deposited in that
fund shall be available for expenditure by the board to mitigate
 environmental   air  pollution caused by
the movement of  container  cargo to and from the port by
commercial motor vehicles, oceangoing vessels, and rail, and to fund
the administrative costs of this program. Moneys deposited in that
fund shall not be loaned or  transferred to, or allocated or
appropriated in any other way to, the General Fund.  
transferred to the general fund of the Port or City of Oakland. 

   (d) The port may contract with PierPass for the collection of the
user fee authorized pursuant to this section. 

      Article 3.  Congestion Relief and Mitigation Relief Projects


   1750.  (a) Beginning January 1, 2008, the  commission
  authority  shall develop a list of projects that
would improve the overall efficiency of container cargo movement to
and from the Ports of Los Angeles and Long Beach by improving the
rail system and container transportation systems that transport
container cargo  from and to   to and from 
those ports and the ondock rail facilities at those ports. In the
process for selecting projects, the  commission 
 authority  shall consult with  the transportation
commissions for the Counties of Los Angeles, Orange, Riverside, San
Bernardino, and Ventura, the Port of Los Angeles, the City of Los
Angeles, the Port of Long Beach, the City of Long Beach, and the
Southern California Association of Governments. The commission shall
hold public hearings to seek further input on developing these
projects, with at least one hearing at or near the Port of Los
Angeles and the Port of Long Beach.   the commission and
the Southern California Association of Governments. The authority
shall hold public hearings to seek further input on developing these
projects, including at least one hearing at or near the Port of Los
Angeles and the Port of Long Beach. The authority shall compile this
list, in priority order, and submit it to the commission no later
than April 1, 2008. If the commission rejects the list, the authority
shall compile a new list and submit it to the commission. 
   (b) No later than September 1, 2008, the commission, at a public
hearing, shall  finalize a list of projects  
approve a project list submitted by the authority  that would
improve the overall efficiency of container cargo movement to and
from the Ports of Los Angeles and Long Beach by improving the rail
system and container transportation systems that transport container
cargo  from and to   to and from  those
ports and the ondock rail facilities at those ports. This will be the
final list, of infrastructure projects at the Ports of Los Angeles
and Long Beach, eligible to be funded by the user fee authorized
pursuant to this chapter.  The commission shall not change the
list of projects submitted by the authority. The commission may only
accept or reject the entire list of projects. If the commission has
not   approved a list of projects by September 1, 2008, the
most recent list of projects submitted to the commission by the
authority shall be   come the final list of projects. 

   (c) Projects eligible to be on the final list shall not be used to
construct, maintain, or improve highways, unless the highway or road
improvement is part of a rail grade separation, or the highway
improvement is done to separate container cargo from motor vehicle
traffic by creating on ramps or off ramps for port container truck
traffic.  
   (c) Funds from the San Pedro Bay Ports Congestion Fund shall be
used only for projects that improve the movement of container cargo
by rail, or for projects that construct, maintain, or improve a road
or highway that is part of a road or highway rail grade separation. A
rail grade separation does not include a road or highway going above
or beneath another road or highway. To qualify, a rail grade
separation project shall reduce conflicts between trains carrying
container cargo and motor vehicles, or reduce conflicts between
trains carrying container cargo and other trains carrying container
cargo.  
   (d) In awarding funds pursuant to this section, the commission

    (d)     In determining which projects to
include in the list of projects and in what order of priority, the
authority  shall give priority to those projects that have been
designed to measurably reduce air pollution  and
environmental  impacts to local communities, and to assist
in achieving and maintaining state and federal air quality standards
 and enhancing environmental performance  , while
addressing the overall efficiency of container cargo movement.

   (e) On January 1, 2009, and annually thereafter, the Ports of Long
Beach and Los Angeles shall report to the commission on the
implementation of the Final 2006 San Pedro Bay Clean Air Action Plan.
Each port shall report to the commission on whether the emission
reduction goals for the source specific categories have been achieved
as follows:  
   (1) Heavy-duty vehicles by 2011.  
   (2) Cargo handling equipment, 2010, 2012, and 2014. 

   (3) Harbor craft, 2008 and 2011.  
   (4) Locomotives, 2008, 2011, and 2014.  
   If any of the source specific emission reduction goals have not
been met, the commission shall not award funding to any project, and
the commission shall not fund any further projects until the source
specific emission reduction goals are achieved, other than projects
that have been awarded funding prior to this finding.  
   (e) Beginning January 1, 2010, the board shall evaluate the
emissions from heavy-duty vehicles, container cargo handling
equipment, harbor craft, and locomotives at the Ports of Los Angeles
and Long Beach, and shall determine if these ports have reduced
emissions from those sources to meet the goals of the board's
Emission Reduction Plan for Ports and Goods Movement. No later than
July 1, 2010, and no later than January 1, 2015, and January 1, 2020,
the board shall notify the commission as to whether or not the Ports
of Los Angeles and Long Beach have met these goals. If these goals,
as determined by the board, have not been met, the commission shall
not award funding to a project, other than for on-dock rail and rail
and road or highway grade separations, until the board determines
that these goals have been met. 
   (f) For all construction projects funded pursuant to this section,
a contractor shall ensure that all mobile nonroad equipment used on
the project will be equipped with a California Air Resources Board
(CARB) verified diesel particulate filter that obtains at least an
85-percent reduction in emissions, unless any of the following
circumstances exists, and the contractor is able to provide proof
that any of these circumstances exists:
   (1) A piece of specialized equipment is unavailable in a
controlled form within the state, including through a leasing
arrangement.
   (2) A contractor has applied for incentive funds to put controls
on a piece of uncontrolled equipment planned for use on the project,
but the application is not yet approved, or the application has been
approved, but funds are not yet available.
   (3) A contractor has ordered a control device for a piece of
equipment planned for use on the project, or has ordered a new piece
of controlled equipment to replace the uncontrolled equipment, but
that order has not been completed by the manufacturer or dealer, and
the contractor has attempted to lease controlled equipment, but no
dealer within 200 miles of the project has the controlled equipment
available for lease.
   (g) Projects eligible to be considered  by the commission
  for the list by the authority  include, but are
not limited to, all of the following:
   (1) A project to separate at-grade crossings to reduce conflicts
between trains and motor vehicles in Los Angeles, Orange, Riverside,
and San Bernardino Counties, also known as the Alameda Corridor East
Project.
   (2) A project to improve rail capacity by adding additional tracks
to existing rail lines in Los Angeles, Orange, Riverside, and San
Bernardino Counties  , which does not disproportionately impact
low-income communities  .
   (3) A project to separate at-grade rail crossings in San
Bernardino County, also known as the Colton crossing.
    (4) A project to improve ondock rail infrastructure at the Ports
of Los Angeles and Long Beach.
   (h) In determining which projects to select  , the
commission   for the list, the authority  shall
also take into account the entire rail and trade corridor servicing
the Ports of Los Angeles and Long Beach.
   (i) The commission shall only use the funds received from the
 Southern California   San Pedro Bay Ports 
Congestion Fund to fund projects authorized pursuant to this
section. 
   (j) A project receiving funding pursuant to this section may also
receive funding from other sources, including, but not limited to,
local agencies, state sources, federal sources, and private sources.
 
   (j) 
    (k)  Once the projects on the final list are completed
and fully funded, the commission shall notify the Ports of Los
Angeles and Long Beach that the infrastructure projects are completed
and  to   the ports shall  no longer
collect the one-half of the user fee for infrastructure projects. The
commission may also make a finding that a project on the final list
has either been funded by another source or is no longer worthy of
funding. 
   (l) Beginning January 1, 2009, and annually thereafter, the Ports
of Los Angeles and Long Beach shall report to the commission and the
transportation committees of the Senate and Assembly on the status of
the San Pedro Bay Ports Clean Air Action Plan. 
   1751.  (a) Beginning January 1, 2008, the  commission
  MTC  shall develop a list of projects that would
improve the overall efficiency of container cargo movement to and
from the Port of Oakland by improving the rail and container
transportation systems that transport container cargo  from
and to   to and from  that port and the ondock rail
facilities at that port. In the process for selecting projects, the
 commission shall consult with the transportation commissions
for the Counties of Alameda and Contra Costa, the Port of Oakland,
the City of Oakland, and the Bay Area Association of Governments. The
commission shall hold public hearings to seek further input on
developing these projects, including at least one hearing in the City
of Oakland.   MTC shall consult with the commission,
the Port of Oakland, the City of Oakland, the Sacramento Area Council
of Governments, the Placer County Transportation Planning Agency,
and the Council of Fresno County Governments. The MTC shall hold
public hearings to seek further input on developing these projects,
including at least one hearing in the City of Oakland. The MTC shall
compile this list, in priority order, and submit it to the commission
no later than April 1, 2008. If the commission rejects the list, the
MTC shall compile   a new list and submit it to the
commission. 
   (b) No later than September 1, 2008, the commission, at a public
hearing, shall  finalize a list of projects  
approve a project list submitted by the MTC  that would improve
the overall efficiency of container cargo movement to and from the
Port of Oakland by improving the rail and container transportation
systems that transport container cargo  from and to 
 to and from  that port and the ondock rail facilities at
that port. This will be the final list, of infrastructure projects at
the Port of Oakland, eligible to be funded by the user fee
authorized pursuant to this chapter.  The commission shall not
change the list of projects submitted by the MTC. The commission may
only accept or reject the entire list of projects. If the commission
has not approved a list of projects by September 1, 2008, the most
recent list of projects submitted to the commission by the MTC shall
become the final list  of projects.  
   (c) Projects eligible to be on the final list shall not be used to
construct, maintain, or improve highways, unless the highway or road
improvement is part of a rail grade separation, or the highway
improvement is done to separate container cargo from motor vehicle
traffic by creating on ramps or off ramps for port container truck
traffic.  
   (c) Funds from the Port of Oakland Congestion Fund shall be used
only for projects that improve the movement of container cargo by
rail, or for projects that construct, maintain, or improve a road or
highway that is part of a road or highway rail grade separation. To
qualify, a rail grade separation project shall reduce conflicts
between trains carrying container cargo and motor vehicles. 

   (d) In awarding funds pursuant to this section, the commission

    (d)     In determining which projects to
include in the list of projects and in what order of priority, the
MTC  shall give priority to those projects that have been
designed to measurably reduce air pollution  and
environmental  impacts to local communities, and to assist
in achieving and maintaining state and federal air quality standards
 and enhancing environmental performance  , while
addressing the overall efficiency of container cargo movement. 
   (e) Beginning January 1, 2010, the board shall evaluate the
emissions from heavy-duty vehicles, container cargo handling
equipment, harbor craft, and locomotives at the Port of Oakland, and
shall determine if the port has reduced emissions from those sources
to meet the goals of the board's Emission Reduction Plan for Ports
and Goods Movement. No later than July 1, 2010, and on no later than
January 1, 2015, and January 1, 2020, the board shall notify the
commission as to whether or not the
            port has met these goals. If these goals, as determined
by the board, have not been met, the commission shall not award
funding to a project, other than for on-dock rail, rail improvements
on port property, and rail and road or highway grade separations,
until the board determines that these goals have been met. 

   (e) 
    (f)  For all construction projects funded pursuant to
this section, a contractor shall ensure that all mobile nonroad
equipment used on the project will be equipped with a California Air
Resources Board (CARB) verified diesel particulate filter that
obtains at least an 85 percent reduction in emissions, unless any of
the following circumstances exists, and the contractor is able to
provide proof that any of these circumstances exists:
   (1) A piece of specialized equipment is unavailable in a
controlled form within the state, including through a leasing
arrangement.
   (2) A contractor has applied for incentive funds to put controls
on a piece of uncontrolled equipment planned for use on the project,
but the application is not yet approved, or the application has been
approved, but funds are not yet available.
   (3) A contractor has ordered a control device for a piece of
equipment planned for use on the project, or has ordered a new piece
of controlled equipment to replace the uncontrolled equipment, but
that order has not been completed by the manufacturer or dealer, and
the contractor has attempted to lease controlled equipment, but no
dealer within 200 miles of the project has the controlled equipment
available for lease. 
   (f) 
    (g)  Projects eligible to be considered by the 
commission   MTC  include, but are not limited to,
projects to separate at-grade crossings to  reduce conflicts
between trains and motor vehicles and ondock   reduce
conflicts between trains carrying container cargo and motor vehicles
or increase mainline rail capacity for moving cargo containers, and
on-dock and near-dock  rail improvements at the Port of Oakland.

   (g) 
    (h)  In determining which projects to select, the
 commission   MTC  shall also take into
account the entire rail and trade corridor  across northern and
central Califor   nia  servicing the Port of Oakland.

   (h) 
    (i)  The commission shall only use the funds received
from the  Northern California   Port of Oakland
 Congestion Fund to fund projects authorized pursuant to this
section. 
   (j) A project receiving funding pursuant to this section may also
receive funding from other sources, including, but not limited to,
local agencies, state sources, federal sources, and private sources.
 
   (i) 
    (k)  Once the projects on the final list are completed
and fully funded, the commission shall notify the Port of Oakland,
that the infrastructure projects are completed and  to
  the port shall  no longer collect the one-half of
the user fee for infrastructure projects. The commission may also
make a finding that a project on the final list has either been
funded by another source or is no longer worthy of funding. 
   (l) Beginning January 1, 2009, and annually thereafter, the Port
of Oakland shall report to the commission and the transportation
committees of the Senate and Assembly on the status of the port's
clean air action plan. 
   1752.  (a) Beginning January 1, 2008, the  board
 South Coast Air Quality Management District (district) 
shall develop a list of projects that reduce air pollution caused by
the movement of container cargo to and from the Ports of Los Angeles
and Long Beach. The projects on the list shall be consistent with the
Emission Reduction Plan (ERP) adopted April 2006, and shall be
designed to reduce air pollution at those ports in order to achieve
and maintain state and federal air quality standards and to meet the
ERP's goals for 2010, 2015, and 2020, as well as the goals for the
Air Quality Management Plan prepared by the South Coast Air Quality
Management District, and the San Pedro Bay Clean Air Action Plan. In
developing the list, the  board   district 
shall consult with the  South Coast Air Quality Management
District   board  , the Gateway Council of
Governments, and the Ports of Los Angeles and Long Beach. The
 board   district  shall hold public
hearings before developing the list of projects,  with
  including  at least one hearing being held at or
near the Ports of Los Angeles and Long Beach.  The district shall
compile this list, in priority order, and submit it the board no
later than April 1, 2008.  
   (b) The board shall work with the South Coast Air Quality
Management District, the Port of Los Angeles, and the Port of

    (b)     The district shall work with the
Port of Los Angeles and the Port of  Long Beach  in
order  to ensure that projects within the Air Quality
Management Plan prepared by the  South Coast Air Quality
Management District   district  and within the San
Pedro Bay Clean Air Action Plan are completed or implemented.
 The board may provide funding to the district in order to
implement the Air Quality Management Plan prepared by the district,
and to the ports in order to implement the San Pedro Bay Clean Air
Action Plan.  
   (c) Projects eligible to be considered by the district include,
but are not limited to, the following:  
   (1) The replacement, repowering, or retrofitting of heavy-duty
diesel vehicles that move cargo containers to and from the Port of
Los Angeles or the Port of Long Beach, not otherwise required by any
federal or state law or regulation.  
   (2) The replacement, repowering, or retrofitting of locomotive
engines that move cargo containers to and from the Port of Los
Angeles or the Port of Long Beach, not otherwise required by any
federal or state law or regulation.  
   (3) Funding through grants of the incremental cost of using a
low-sulfur fuel, not otherwise required by statute or regulation, on
ocean going vessels that carry cargo containers to and from the Port
of Los Angeles or the Port of Long Beach.  
   (4) The provision of mobile or portable shore side distributed
power generation to ocean-going cargo container vessels that
eliminates the need to use the electricity grid at the Port of Los
Angeles or the Port of Long Beach, and that has been tested and
verified by the board or a local air quality management district.
 
   (5) The electrification of the rail infrastructure used to move
cargo containers to and from the Port of Los Angeles or the Port of
Long Beach.  
   (6) The provision of shore side electrical power generation to
ocean-going cargo container vessels, moving cargo containers to and
from the Port of Los Angeles or the Port of Long Beach, not otherwise
required by any federal or state law or regulation.  
   (7) Container cargo-handling equipment, handling cargo containers
at the Port of Los Angeles or the Port of Long Beach, not otherwise
required by any federal or state law or regulation.  
   (c) 
    (d)  No later than September 1, 2008, the board, at a
public hearing, shall  finalize   accept  a
list of projects  that meet   from the district
that meets  the ERP's goals for 2010, 2015, and 2020, in order
to meet  or maintain  federal air quality attainment
standards.  If the board has   not approved a list of
projects by September 1, 2008, the most recent list of projects
submitted to the board by the district shall become the final list of
projects.  
   (d) 
    (e)  The board may determine, at a public hearing, that
the emission reduction goals for 2020 have been met or exceeded and
that  projects that reduce emissions from the movement of cargo
containers to and from the Port of Los Angeles that are designed to
achieve  federal air quality standards have been  met in
the South Coast Air Basin   implemented  ,
including full implementation of  projects that reduce emissions
from the movement of cargo containers to and from the Port of Los
Angeles contained within  the Air Quality Management Plan
prepared by the  South Coast Air Quality Management District
  district  . Once the determination is made, and
ensuring that all approved projects have been funded, the board shall
notify the Port of Los Angeles of this determination, and the Port
of Los Angeles shall no longer collect the one-half of the user fee
for air quality projects meant to reach these goals and federal air
quality attainment standards. 
   (e) 
    (f)  The board may determine, at a public hearing, that
the emission reduction goals for 2020 have been met or exceeded and
that  projects that reduce emissions from the movement of cargo
containers to and from the Port of Lon   g Beach that are
designed to achieve  federal air quality standards have been
 met in the South Coast Air Basin   implemented
 , including full implementation of  projects that reduce
emissions from the movement of cargo containers to and from the Port
of Long Beach contained within  the Air Quality Management Plan
prepared by the  South Coast Air Quality Management District
  district  . Once the determination is made, and
ensuring that all approved projects have been funded, the board shall
notify the Port of Long Beach of this determination, and the Port of
Long Beach shall no longer collect the one-half of the user fee for
air quality projects meant to reach these goals and federal air
quality attainment standards. 
   (f) 
    (g)  The board shall only use the funds received from
the  Southern California   San Pedro Bay Ports
 Mitigation Fund to fund projects authorized pursuant to this
section. 
   (h) A project receiving funding pursuant to this section may also
receive funding from other sources, including, but not limited to,
local agencies, state sources, federal sources, and private sources.

   1753.  (a) Beginning January 1, 2008, the  board 
 Bay Area Air Quality Management District (district)  shall
develop a list of projects that reduce air pollution caused by the
movement of container cargo to and from the Port of Oakland. The
projects on the list shall be consistent with the Emission Reduction
Plan (ERP) adopted April 2006, and shall be designed to reduce air
pollution at the port in order to achieve and maintain state and
federal air quality standards and to meet the ERP's goals for 2010,
2015, and 2020. In developing the list, the  board 
 district  shall consult with  the Bay Area Air
Quality Management District and the Port of Oakland.  
the board, the Sacramento Metropolitan Air Quality Management
District, the San Joaquin Air Pollution Control District, and the
Port of Oakland. The district shall compile this list, in priority
order, and submit it to the board no later than April 1, 2008. If the
board rejects the list, the district shall compile a new list and
submit it to the board.  
   (b) If the Bay Area Air Quality Management District and the Port
of Oakland 
    (b)     In consultation with the port, the
district shall  develop a plan to reduce emissions from the Port
 of Oakland, then the board shall work with the district and
the port   of Oakland and submit the plan to the board.
The board and the district shall work with the port  
in order to ensure that projects within the plan are
completed or implemented  to the maximum extent feasible  .
The board may provide funding to the district or the port in order to
achieve the goals of the plan. 
   (c) Projects eligible to be considered by the district include,
but are not limited to, the following:  
   (1) The replacement, repowering, or retrofitting of heavy-duty
diesel vehicles that move cargo containers to and from the Port of
Oakland, not otherwise required by any federal or state law or
regulation.  
   (2) The replacement, repowering, or retrofitting of locomotive
engines that move cargo containers to and from the Port of Oakland,
not otherwise required by any federal or state law or regulation.
 
   (3) Funding through grants of the incremental cost of using a
low-sulfur fuel, not otherwise required by statute or regulation, on
ocean going vessels that carry cargo containers to and from the Port
of Oakland.  
   (4) The provision of mobile or portable shore side distributed
power generation to ocean-going cargo container vessels that
eliminates the need to use the electricity grid at the Port of
Oakland, and that has been tested and verified by the board or a
local air quality management district.  
   (5) The electrification of infrastructure used within a marine
terminal that handles cargo containers in the Port of Oakland. 

   (6) The provision of shore side electrical power generation to
ocean going cargo container vessels, moving cargo containers to and
from the Port of Oakland, not otherwise required by any federal or
state law or regulation.  
   (7) Container cargo-handling equipment, handling cargo containers
at the Port of Oakland, not otherwise required by any federal or
state law or regulation.  
   (c) 
    (d)  No later than September 1, 2008, the board, at a
public hearing, shall  finalize   approve 
a list of projects that meet the ERP's goals  for 2010, 2015,
and 2020, in order to meet federal air quality attainment standards.
  for 2010, 2015, and 2020 that are consistent with the
plan developed pursuant to subdivision (c), to meet or maintain
federal air quality standards. If the board has not approved a list
of projects by September 1, 2008, the most recent list of projects
submitted to the board by the district shall become the final list of
projects.  
   (d) 
    (e)  The board may determine, at a public hearing, that
the emission reduction goals for 2020 have been met or exceeded and
that  projects that reduce emissions from the movement of cargo
containers to and from the port and are designed to achieve 
federal air quality standards have been  met within the Bay
Area Air Quality Management District   implemented 
, and once the determination is made, and ensuring that all approved
projects have been funded, the board shall notify the Port of
Oakland of this determination, and the Port of Oakland shall no
longer collect the one-half of the user fee for air quality projects
meant to reach these goals and federal air quality attainment
standards. 
   (e) 
    (f)  The board shall only use the funds received from
the  Northern California   Port of Oakland 
Mitigation Fund to fund projects authorized pursuant to this
section. 
   (g) A project receiving funding pursuant to this section may also
receive funding from other sources, including, but not limited to,
local agencies, state sources, federal sources, and private sources.


      Article  4.    Financing Provisions 


   1760.  (a) Pursuant to the authority of the San Pedro Bay Ports,
the San Pedro Bay Ports may enter into financing agreements with
participating parties for the purpose of financing or refinancing San
Pedro Bay Ports congestion relief projects and San Pedro Ports
mitigation relief projects.
   (b) As authorized, the San Pedro Bay Ports may issue bonds as San
Pedro Bay Ports Congestion Relief Container Fee Revenue Bonds to
finance or refinance San Pedro Bay Ports congestion relief projects
and as San Pedro Bay Ports Mitigation Relief Container Fee Revenue
Bonds to finance or refinance San Pedro Bay Ports mitigation relief
projects.
   (c) The principal of and interest and redemption premiums on San
Pedro Bay Ports Congestion Relief Container Fee Revenue Bonds and San
Pedro Bay Ports Mitigation Relief Container Fee Revenue Bonds shall
be payable from, and secured by, San Pedro Bay Ports congestion
relief container fee revenue and San Pedro Bay Ports mitigation
relief container fee revenue, respectively, as and to the extent
provided in the constituent instruments defining the rights of the
holders of the bonds.  
   1761.  (a) Pursuant to the procedures in the City of Oakland City
Charter, the Port of Oakland may enter into financing agreements with
participating parties for the purpose of financing or refinancing
Port of Oakland congestion relief projects and Port of Oakland
mitigation relief projects.
   (b) As authorized, the Port of Oakland may issue bonds as Port of
Oakland Congestion Relief Container Fee Revenue Bonds to finance or
refinance Port of Oakland congestion relief projects and as Port of
Oakland Mitigation Relief Container Fee Revenue Bonds to finance or
refinance Port of Oakland mitigation relief projects.
   (c) The principal of and interest and redemption premiums on Port
of Oakland Congestion Relief Container Fee Revenue Bonds and Port of
Oakland Mitigation Relief Container Fee Revenue Bonds shall be
payable from, and secured by, Port of Oakland congestion relief
container fee revenue and Port of Oakland mitigation relief container
fee revenue, respectively, as and to the extent provided in the
constituent instruments defining the rights of the holders of the
bonds.  
   1762.  The San Pedro Bay Ports may pledge all or any portion of
the San Pedro Bay Ports congestion relief container fees to secure
San Pedro Bay Ports Congestion Relief Container Fee Revenue Bonds,
and credit facilities for these bonds, and all or any portion of the
San Pedro Bay Ports Mitigation Relief Container Fee Revenue Bonds,
and credit facilities for these bonds. All San Pedro Bay Ports
congestion relief container fees and San Pedro Bay Ports mitigation
relief container fees so pledged shall be paid to the indenture
trustee for these bonds each month, from the San Pedro Bay Ports
Congestion Relief Trust Fund and the San Pedro Bay Ports Mitigation
Relief Trust Fund for so long as any of the bonds are outstanding.
Any San Pedro Bay Ports congestion relief container fees and San
Pedro Bay Ports mitigation relief container fees that are not
required to be retained by the indenture trustee pursuant to the
constituent instruments defining the rights of the holders of the
bonds shall be remitted by the indenture trustee to the San Pedro Bay
Ports Congestion Relief Trust Fund and the San Pedro Bay Ports
Mitigation Relief Trust Fund and shall be disbursed at the request of
the authority and the district, respectively, for San Pedro Bay
Ports congestion relief projects and San Pedro Bay Ports mitigation
relief projects.  
   1763.  The Port of Oakland may pledge all or any portion of the
Port of Oakland congestion relief container fees to secure Port of
Oakland Congestion Relief Container Fee Revenue Bonds, and credit
facilities for these bonds, and all or any portion of the Port of
Oakland Mitigation Relief Container Fee Revenue Bonds, and credit
facilities for these bonds. All Port of Oakland congestion relief
container fees and Port of Oakland mitigation relief container fees
so pledged shall be paid to the indenture trustee for these bonds
each month, from the Port of Oakland Congestion Relief Trust Fund and
the Port of Oakland Mitigation Relief Trust Fund for so long as any
of the bonds are outstanding. Any Port of Oakland congestion relief
container fees and Port of Oakland mitigation relief container fees
that are not required to be retained by the indenture trustee
pursuant to the constituent instruments defining the rights of the
holders of the bonds shall be remitted by the indenture trustee to
the Port of Oakland Congestion Relief Trust Fund and the Port of
Oakland Mitigation Relief Trust Fund and shall be disbursed at the
request of the commission and the board, respectively, for Port of
Oakland congestion relief projects and Port of Oakland mitigation
relief projects. 
   SEC. 4.   SEC. 3.   Section 1760 of the
Harbors and Navigation Code is amended and renumbered to read:
   1730.  (a) For purposes of this section, "council" means the
California Marine and Intermodal Transportation System Advisory
Council, a regional subunit of the Marine Transportation System
National Advisory Council chartered by the federal Secretary of
Transportation under the Federal Advisory Council Act (P.L. 92-463).
   (b) The council is requested to do all of the following:
   (1) Meet, hold public hearings, and compile data on issues that
include, but need not be limited to, all of the following:
   (A) The projected growth of each maritime port in the state.
   (B) The costs and benefits of developing a coordinated state
program to obtain federal funding for maritime port growth, security,
and congestion relief.
   (C) Impacts of maritime port growth on the state's transportation
system.
   (D) Air pollution caused by movement of goods through the state's
maritime ports, and proposed methods of mitigating or alleviating
that pollution.
   (E) Maritime port security, including, but not limited to,
training, readiness, certification of port personnel, exercise
planning and conduct, and critical marine transportation system
infrastructure protection.
   (F) A statewide plan for continuing operation of maritime ports in
cooperation with the United States Coast Guard, the federal
Department of Homeland Security, the Office of Emergency Services,
the state Office of Homeland Security, and the California National
Guard, consistent with the state's emergency management system and
the national emergency management system, in the event of a major
incident or disruption of port operations in one or more of the state'
s maritime ports.
   (G) State marine transportation policy, legislation, and planning;
regional infrastructure project funding; competitiveness;
environmental impacts; port safety and security; and any other
matters affecting the marine transportation system of the United
States within, or affecting, the state.
   (2) Identify all state agencies that are involved with the
development, planning, or coordination of maritime ports in the
state.
   (3) Identify other states that have a statewide port master plan
and determine whether that plan has assisted those states in
improving their maritime ports.
   (4) Compile all information obtained pursuant to paragraphs (1) to
(3), inclusive, and submit its findings in a report to the
Legislature not later than January 1, 2006. The report should
include, but need not be limited to, recommendations on methods to
better manage the growth of maritime ports and address the
environmental impacts of moving goods through those ports.
   (c) The activities of the council pursuant to this section shall
not be funded with appropriations from the General Fund.
   SEC. 5.   SEC. 4.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because a local agency or school district has
the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act, within the meaning of Section 17556 of the Government Code.