A new bill that will impose a fee on shippers of $30 per twenty-foot equivalent unit (TEU) for every cargo container leaving or entering the ports of Los Angeles, Long Beach and Oakland, has received California Senate approval.

The Ports Investment Bill (SB 974) is now on its way to Governor Schwarzenegger for signature.

If brought into law, the bill is expected to generate more than $300 million a year to fund projects to reduce air pollution from port-related operations and freight transport, according to the Los Angeles Times.

Two versions of the bill have already failed, with Governor Schwarzenegger vetoing the bill in 2006 that proposed a $100 per TEU user fee.

Senator Alan Lowenthal has now added over 150 amendments to his proposed legislation and the Governor has since shown support for the bill.

"This is a great day for California." Senator Lowenthal said.

"The Legislature has taken a stand. Our constituents have told us that we must deal with congestion and reduce pollution caused by the ports. Now the Governor can stand with the vast majority of Californians and sign this legislation," added Lowenthal.

Research by the California Air Resources Board (ARB) shows that 3,700 Californians die prematurely each year due to pollution from ports and freight transportation.

Ports and freight transport operations will be the largest source of particulate matter (PM) and nitrogen oxides (NOx) emissions in the state, producing more diesel PM than all passenger vehicles, off-road equipment and stationary sources combined, a report by Lowenthal noted.

"After four years of analysis and debate, this bill remains the best funding option on the table to deal with the crises of port pollution and cargo congestion.The Ports Investment Bill deserves the governor’s signature," said Martin Schlageter, campaign director for the Coalition for Clean Air.

It is estimated that the volume of goods moving through these ports will triple by 2020, according to the Coalition.

Local Democrats praised the container fee measure as a smart way to try to mitigate the polluted air, contributed to by the ports' thriving economic activity.

"The Air Board’s Emission Reduction Plan shows that for every $1 invested to reduce goods movement pollution, California would save between $3 to $8 in avoided health costs. Given this figure, if SB 974 becomes law and there is $3 billion invested in reducing goods movement pollution, SB 974 would save California between $9 billion and $24 billion avoided health costs," noted Lowenthal.

Republicans, however, highlighted the issue that the bill would push up the prices of many products and could see shippers diverting to other ports in the US Pacific Northwest, West Coast of Canada and Mexico, which has seen a recent expansion drive.