September 22, 2020

Honorable Gavin Newsom
Governor
State of California
State Capitol Building
Sacramento, CA 95814

Dear Governor Newsom,

RE: AB 3214 (Limon) oil spills: financial security, fines, and penalties – Veto Request

I am writing on behalf of the Los Angeles & Long Beach Port of The Propeller Club of the United States to register our opposition to Assembly Bill 3214 (Limon) and to respectfully request your VETO of the bill.

The Propeller Club of Los Angeles/Long Beach serves the nation’s largest maritime gateway and port complex. Our association is comprised of members representing the many ocean carriers, harbor service craft, terminals, motor carriers, rail carriers, intermodal equipment providers, warehousing, logistics service providers, cargo owners, government agencies and labor unions associated with international goods movement through our ports.

The bill was originally intended to address concerns over a 2015 pipeline spill. However, the Bill as worded, will also apply to ships for simple accidental oil spills. The insurance and re-insurance markets which insure nearly all of the ships operating to and from California have advised that they will be unable to provide the necessary coverage or affordable premiums for ships calling in California because of the newly proposed penalties. Thus, shipping companies and beneficial cargo owners will be forced or further motivated to reroute cargo to alternative ports outside of California. This legislation will unfortunately  make California ports less competitive  resulting in a further reduction in market share which has already been under siege and ultimately impact the many jobs that are connected to the goods movement industry in California.

We respectfully request you VETO this bill.