Calif. statewide container fee bill delayed again

Calif. statewide container fee bill delayed again California State Sen. Alan Lowenthal's on-again, off-again bill seeking to impose a statewide $30-per-TEU container fee appears to be off again.
   Last month, the Long Beach Democrat indicated he had set a personal deadline of June 30 to bring his SB974 bill to the Legislature floor for two final votes. However, the senator's self-imposed deadline came and went with no action on the bill.
   Lowenthal's office is now predicting the bill will come before the Legislature no later than Aug. 31.
   The Legislature, which breaks for its summer recess Thursday, will not reconvene until Aug. 4.
   The SB974 bill, which would impose the per-TEU fee on containers moving through the ports of Long Beach, Los Angeles, and Oakland, is projected to raise $400 million to $500 million annually for goods movement infrastructure and environmental projects throughout the state. Under terms of the bill, the per-TEU container fee would be borne by beneficial cargo owners.
   The bill now requires only a full Assembly vote and a concurrence vote by the Senate to pass the Legislature and head to Gov. Arnold Schwarzenegger's office. It is not expected to encounter any difficulty in passing either house. The governor, while opposing Lowenthal's bill in the past, indicated earlier this year he would support a statewide fee. Schwarzenegger is expected to sign the bill if it reaches his desk.
   SB974, the third incarnation of Lowenthal's statewide container fee proposal, has appeared and disappeared several times over the past year. Last September, the legislation was shelved after Schwarzenegger threatened a veto. The move was also seen at the time as an effort to allow the Southern California ports more time to impose their own local container taxes, which both have since done.
   In February, the bill was again removed from inactive status and placed on the Assembly agenda, though no action was taken on it. Lowenthal has since added a detailed list to the bill specifying more than 140 projects that the collected funds could be used for.
   Additional amendments are also under consideration for inclusion into the bill, including a request by the Port of Oakland to exempt cargo moving through the port from Lowenthal's fee if Oakland officials impose their own local container tax.
   If the bill is not approved before the end of the legislative session later this year, the bill may have to be reintroduced by Lowenthal next year and begin the entire voting and approval process from square one.
Upcoming FreightWaves Events
Compliance

Brokerage Compliance Symposium

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Awards

F3 Awards Dinner

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
FreightTech

F3: Future of Freight Festival

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

October 27, 2026 – October 28, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Compliance Brokerage Compliance Symposium Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
Awards F3 Awards Dinner Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
FreightTech F3: Future of Freight Festival Oct 27 – Oct 28 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now