StarBulletin.com
Tuesday, November 18, 2008
We've got everything in our Star * Classifieds
* Homes * Jobs * Cars * Shopping
Place My Ad

Give us YOUR Weekly Opinion

Reader Poll

How many pounds will you put on during this holiday season?
Sell your stuff in Hawaii classifieds
Subscribe to the Honolulu Star-Bulletin
In partnership with
KITV

Hawaii avoids levies at California ports

POSTED: 01:30 a.m. HST, Oct 05, 2008

THE ISSUE

Fees proposed on cargo to pay for cleaning California's dirty air has been vetoed by Gov. Arnold Schwarzenegger.

California Gov. Arnold Schwarzenegger merits a big mahalo for vetoing a bill that would have led to price increases for virtually all goods arriving in Hawaii by cargo ship. California's legislature would have Hawaii and Alaska consumers pay for cleaning the nation's dirtiest air.

Democratic California state Sen. Alan Lowenthal's bill would have imposed a fee of up to $60 for each 40-foot cargo container moving through the ports of Los Angeles, Long Beach and Oakland. Hawaii relies on those West Coast ports for an estimated 80 percent of its goods.

The bill's supporters predicted it would bring in at least $300 million a year to fund the clear-air programs. Hawaii and Alaska consumers would have ended up paying the bill with price increases totalling that amount on goods arriving from California, violating the spirit of the Constitution's commerce clause.

Gov. Linda Lingle, Alaska Gov. Sarah Palin and congressional delegations from the two states asked Schwarzenegger for the veto or at least to exclude domestic commerce between U.S. ports from the fees. In an Aug. 28 letter, Palin, the Republican nominee for U.S. vice president, wrote to Schwarzenegger, "Shipping costs have increased significantly with the rising price of fuel, and these higher costs are quickly passed onto Alaskans. This tax makes the situation worse."

In terminating the bill, Schwarzenegger did not mention the letters from the two states but said, "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."

Air at the California ports is likely to improve without the export fee. A Clean Truck Program bans more than 2,000 diesel-powered big rigs that don't comply with improved emission standards from entering the Los Angeles and Long Beach ports.

THE ISSUE

Fees proposed on cargo to pay for cleaning California's dirty air has been vetoed by Gov. Arnold Schwarzenegger.

California Gov. Arnold Schwarzenegger merits a big mahalo for vetoing a bill that would have led to price increases for virtually all goods arriving in Hawaii by cargo ship. California's legislature would have Hawaii and Alaska consumers pay for cleaning the nation's dirtiest air.

Democratic California state Sen. Alan Lowenthal's bill would have imposed a fee of up to $60 for each 40-foot cargo container moving through the ports of Los Angeles, Long Beach and Oakland. Hawaii relies on those West Coast ports for an estimated 80 percent of its goods.

The bill's supporters predicted it would bring in at least $300 million a year to fund the clear-air programs. Hawaii and Alaska consumers would have ended up paying the bill with price increases totalling that amount on goods arriving from California, violating the spirit of the Constitution's commerce clause.

Gov. Linda Lingle, Alaska Gov. Sarah Palin and congressional delegations from the two states asked Schwarzenegger for the veto or at least to exclude domestic commerce between U.S. ports from the fees. In an Aug. 28 letter, Palin, the Republican nominee for U.S. vice president, wrote to Schwarzenegger, "Shipping costs have increased significantly with the rising price of fuel, and these higher costs are quickly passed onto Alaskans. This tax makes the situation worse."

In terminating the bill, Schwarzenegger did not mention the letters from the two states but said, "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."

Air at the California ports is likely to improve without the export fee. A Clean Truck Program bans more than 2,000 diesel-powered big rigs that don't comply with improved emission standards from entering the Los Angeles and Long Beach ports.


Story tools

Email  Email   Print  Print   Save  Save   Popular  Most Popular   Reprint  Subscribe

Share this story








inToday’s Edition

Hawaii News Features Sports Business Editorial