House Transportation Subcommittees Hold Hearing on Southern California Freight Challenges

The hearing was to consider the ports' efforts to reduce emissions from port-related activities, including from trucks that provide drayage services at the ports. Specifically, the hearing examined the ports' efforts to invest in infrastructure to increase efficiency and expand transportation options for moving freight through the ports and the region. The hearing also examined the ports' adoption of the San Pedro Bay Ports Clean Air Action Plan, including the Plan's "Clean Trucks" program.

The Subcommittees heard testimony from the Executive Directors of the Port of Long Beach and the Port of Los Angeles, representatives from three local and regional governmental groups, a labor representative for workers at the ports, trucking industry representatives and independent owners and operators, as well as representatives from the two largest railroad operators serving the ports.

Highlights from Written Witness Statements

The following are highlights from the written witness statements:

ICF anticipated to begin at $6 per loaded TEU in mid-2009. In his written statement, Richard Steinke, executive Director of the Port of Long Beach, discussed the anticipated Infrastructure Cargo Fee (ICF). Steinke stated that due to reductions in funding from the federal and state government, the ports of Long Beach and Los Angeles found it necessary to consider implementation of the ICF, a fee to be assessed to beneficial cargo owners, to pay for regionally and nationally significant transportation infrastructure projects. The ICF is expected to raise a total of $1.4 billion to fund critical goods movement projects within the harbor complex. The ports will levy this fee on each loaded import or export container moved through the ports' terminals by truck or rail. Because the program will be pay-as-you-go, the amount of the ICF will fluctuate based on that calendar year's projected funding needs for the list of approved projects.

According to Steinke, it is anticipated that the fee would begin at $6 per loaded TEU in mid-2009 and will range over a period of seven years between $10 to $18 per TEU depending on the projects that need to be funded. The ports will end collection of the ICF once the approved list of projects is completed and paid.

Port of Long Beach is looking at Zero Emissions Container Mover System. Steinke further stated that the Port of Long Beach is looking at new technologies to assist in meeting the freight challenges of Southern California. In particular, the Board of Harbor Commissioners has requested staff to look at implementing a Zero Emissions Container Mover System demonstration project that will allow goods to move from the terminals to a near-dock railyard, while considerably reducing emissions. The port is also working with terminal operators to implement the use of cold ironing and environmentally friendly cargo handling equipment such as electric rubber tire gantries and electric clerk trucks as a way to improve efficiency and mitigate harmful pollution.

Southern California needs more funding, revamped freight policy. In her written statement, Dr. Geraldine Knatz, Executive Director of the Port of Los Angeles, provided an update on the positive strides recently made in confronting freight challenges in Southern California, but noted that the following is still needed:

more funding - California contributed to its ports with the passage of Proposition 1B in 2006, providing funding for port and trade corridor transportation, air quality, and security infrastructure, but the state budget crisis has stalled all of that funding and threatens it permanently. Even with state Proposition 1B funding and now the American Recovery & Reinvestment Act of 2009, there is still not adequate federal funding for infrastructure and environmental initiatives. Authorization by Congress of the next federal surface transportation bill must address the continued, urgent, and long-term funding needs, making sure that ports and trade corridors have dedicated and significant funding sources, especially nationally significant trade corridors like the ports of Los Angeles and Long Beach and their regional partners.

revamped freight policy - to achieve the federal support needed by the Port of Los Angeles, there must be a dedicated national freight program and greater integration of transportation, trade, and environmental policy. The new program, policy integration, and funding all must be part of the next surface transportation act authorization.

Committee will be developing, reauthorizing next surface transportation bill. Chairman of the House Transportation and Infrastructure Committee's Rail Subcommittee stated that as the Committee begins to develop and reauthorize the next surface transportation bill, it is critical that the need for additional rail capacity be addressed. (Surface Transportation authorization is one of the Committee's legislative agenda items for the 111th Congress as SAFETEA (Safe, Accountable, Flexible and Efficient Transportation Equity Act) authorization expires in 2009.)

(See ITT's Online Archives or 12/04/08 news, 08120420, for BP summary on Long Beach's postponement of the ICF.)

Details on the hearing, including links to witness written statements available at http://transportation.house.gov/hearings/hearingDetail.aspx?NewsID=822.