I WANT TO SAY GOOD MORNING TO
EACH AND EVERY ONE OF YOU WHO
HAVE GATHERED FIRST HEARING OF
THE SELECT COMMITTEE ON PORTS
AND GOODS AND MOVEMENT. WE ARE
WAITING FOR OTHER MEMBERS TO
JOIN US AND OTHER STAFFS
REPRESENTING THOSE MEMBERS WHO
CANNOT BE WITH US WILL BE
JOINING US ON THE DIOCESE. WELL,
UM IN LIEU OF THOSE MEMBERS. UM,
BUT WE WANT TO GET STARTED.
WANTED TO SAY THANK YOU VERY
MUCH FOR BEING HERE. THANK YOU
FOR PARTICIPATING THIS SPACE
WITH ME AND MY COLLEAGUES
BECAUSE IT REVEALS YOUR
COMMITMENT TO MAXIMIZE THE
EFFICIENCY OF THE CALIFORNIA
SUPPLY CHANGE GOING INTO THIS
INFORMATIONAL HEARING. WE KNOW
THAT THERE'S A LOT OF GOOD AND
IMPORTANT WORK BEING DONE IN
THIS SPACE AND IN THE RELATION
IN RELATIONS TO THIS INDUSTRY.
UM BUT FOR US TO UNDERSTAND THE
FUTURE OF THE CALIFORNIA PORTS,
WE MUST UNDERSTAND HOW THIS
INDUSTRY HAS GOTTEN WORDS AT
TODAY. UM THE PURPOSE OF TODAY'S
HEARING. IS TO VERY SIMPLY
PROVIDE THE NUTS AND BOLTS IN
THE OVERVIEW OF THE CALIFORNIA
SUPPLY CHAIN TO MEMBERS AS WELL
AS EDUCATE THE GENERAL PUBLIC ON
THE SUPPLY CHAIN OF OUR PORTS
HERE IN CALIFORNIA. I WANT TO
PAUSE AND SIMPLY SAY THAT I AM
ABSOLUTELY HONORED TO CHAIR THIS
SELECT COMMITTEE. UM IT IS
ABSOLUTELY IMPORTANT. I
REPRESENT THE 65TH ASSEMBLY
DISTRICT, AND CERTAINLY THAT
INCLUDES THE PORTS OF SAN PEDRO
WILMINGTON'S, UM AND SAN PEDRO
AREA. UM AND OUR PORTS ARE VERY
VITAL, VERY, VERY VITAL TO OUR
ECONOMY DURING THE PANDEMIC.
MANY OF THE WEAKNESSES AND KINKS
IN THE SUPPLY CHAINS WERE IN
FACT EXPOSED AND OUR ECONOMY
SUFFERED BECAUSE OF THAT. WE
MUST LEARN FROM THE LESSONS OF
THE PANDEMIC. THE VISUALIZING
SICK CONCEPTUALIZE WHERE WE
COULD GO FROM HERE. MY GOAL AS A
CHAIR OF THE SELECT COMMITTEE.
UM IS TO FIND OUT WHERE THE
WEAKNESSES AND THIS INDUSTRIES
ARE WHERE THEY CAN BE REINFORCED
AND CREATE A CULTURE OF BEING
PROACTIVE, NOT REACTIVE TO
ISSUES OF THE CALIFORNIA PORTS
IN THIS STATE. SUPPORT ARE THE
ECONOMIC ENGINE. OF OUR STATE OF
CALIFORNIA. UM AND ALSO THE
LARGE PART OF THE UNITED STATES
OF AMERICA. THE REASON WHY THAT
CALIFORNIA IS THE FIFTH AH, THE
FIFTH LARGEST ECONOMY IS BECAUSE
OF BY AND LARGE OF OUR PORTS.
UM, AND THAT'S CERTAINLY THE
FIFTH DESIGNATION IS DEBATABLE.
SOME SAY WE'RE THE FOURTH AND
SOME SAY WE'RE THE FIFTH, BUT
WE'RE WHEREVER WE ARE. WE ARE
CERTAINLY IN A GOOD POSITION,
AND WE WANT TO MAINTAIN THAT
PUTTING THE SELECT COMMITTEE AND
THE LEGISLATURE ARE TO MAKE
IMPACTFUL MEANINGFUL
LEGISLATION. UM WE HAVE TO HAVE
A FULL UNDERSTANDING OF THE
SUPPLY CHAIN AND HOW EACH
COMPONENT CAN WORK TOGETHER AND
REINFORCE EACH OTHER TO CREATE A
ROBUST, UM, SUSTAINABLE ECONOMY
. TODAY WE WILL HEAR FROM
REPRESENTATIVES FROM THE
GOVERNMENT AGENCIES LABOR
AIRPORT AUTHORITY MANAGEMENT.
INDUSTRY STAKEHOLDERS, INDUSTRY
STAKEHOLDERS AND OTHER EXPERTS
TO INFORM THE SELECT COMMITTEE.
UM, OF THE HISTORY AS WELL AS
THE TRAJECTORY OF CALIFORNIA
SUPPORTS MOVING FORWARD. THANK
YOU ALL FOR BEING HERE TO OUR
PANEL FOR BEING HERE AND FOR ALL
OF YOU WHO ARE WATCHING AND
LISTENING TO THIS HEARING TODAY.
FOR THOSE IN THE AUDIENCE. YOU
WILL IN FACT, HAVE AN
OPPORTUNITY FOR COMMENTS AT THE
END OF OUR HEARING DURING OUR
DESIGNATED TIME FOR OUR PUBLIC
COMMENTS, SO DON'T LEAVE. UM,
CERTAINLY WRITE YOUR NOTES AND
COMMENTS DOWN AND BE VERY
SUCCINCT AND POIGNANT WITH THOSE
COMMENTS BECAUSE WE WANT TO MAKE
SURE THAT EVERYONE WHO, UM UM
COMES ALIVE DURING THIS PERIOD
HAS AN OPPORTUNITY TO EXPRESS
AND MAKE A STATEMENT. AND SO
BEFORE I BEGIN, I WANT TO
RECOGNIZE MY COLLEAGUES, UM, FOR
BEING HERE TO SELECT COMMITTEE.
WE REALIZED THERE'S THURSDAY AND
MANY MEMBERS ARE ALREADY ON FOR
IN FLIGHT GOING BACK TO THE
DISTRICT, BUT CERTAINLY THEIR
REPRESENTATIVES FROM THE OFFICES
WILL BE HERE TO JOIN US. UM AND
ALSO WE HAVE SOME SOME COMMENTS
AND SOME QUESTIONS THAT THEY
HAVE PREPARED ME TO BE ABLE TO
ASK OUR PANEL MOVING FORWARD,
AND SO I WANT TO START THIS
PROCESS OFF BY ALLOWING MY VICE
CHAIR TO INTRODUCE HIMSELF. UM
ONE ALSO TALKED ABOUT HIS
DISTRICT DISTRICT NUMBER SUPPORT
IN HIS DISTRICT. AND TO HAVE A
FEW BRIEF FROM REMARKS. UM SO
WITH THAT BEING SAID, I WANT TO
TURN OVER TO MY VICE CHAIR. MR
ASSEMBLYMEMBER'S PHONE. THERE WE
GO. THANK YOU, MR CHAIR. UM
CERTAINLY APPRECIATE THE
ATTENTION WHEN IT COMES TO OUR
PORTS AND THEIR ROLE IN GOODS
MOVEMENT, NOT ONLY IN THE IN
CALIFORNIA BUT ACTUALLY,
INTERNATIONALLY AND ACROSS THE
COUNTRY. CERTAINLY ECHO YOUR
COMMENTS. UM I THINK THAT WITH
THE SUPPLY CHAIN CRISIS DURING
THE PANDEMIC, IT DID REVEAL A
LOT OF OUR CHALLENGES AND THOSE
CHALLENGES HAVEN'T GONE AWAY AND
I KNOW THE CHAIR AND I HAVE
TALKED ABOUT THAT. THERE NEEDS
TO BE MORE INVESTMENT. UM IN IN
IN OUR PORTS. WHEN WE TALK ABOUT
INFRASTRUCTURE, THERE'S BEEN A
LOT OF TALK ABOUT INFRASTRUCTURE
IN THE LEGISLATURE. WELL, THIS
IS A CRITICAL PART OF OUR STATE
INFRASTRUCTURE IN TERMS OF HOW
WE NOT ONLY GET GOOD INTO OUR
STATE AND THROUGHOUT THE STATE,
BUT ALSO TO EXPORT AS WELL AS AS
SOMEONE WHO REPRESENTS THE
CENTRAL VALLEY. AGRICULTURE IS
CRITICAL. AND SO WE NEED TO BE
ABLE TO NOT ONLY PROVIDE GOODS
AND CERTAIN PRODUCTS INTO OUR
STATE, BUT ALSO TO GET THEM INTO
INTERNATIONAL MARKETS AS WELL.
SO I LOOK FORWARD. UM TO THIS
CONVERSATION. THIS IS ONGOING
CONVERSATION. NOT ONLY HOW DO WE
IMPROVE OUR TRANSPORTATION
CORRIDORS, BUT HOW DO WE DEVELOP
MORE INLAND PORTS? UM APPRECIATE
THE WORK OF DEVELOPING SOME
INLAND PORTS IN THE MOJAVE AREA
, BUT ALSO THERE'S CONVERSATIONS
ABOUT TWO INLAND PORTS
THROUGHOUT THE CENTRAL VALLEY AS
WELL AND THESE ARE GOING TO BE
CRITICAL CONVERSATIONS. TO
ENSURE THAT WE WERE ABLE TO, UH
, KEEP OUR ECONOMY GOING. UM YOU
KNOW BILLIONS OF DOLLARS GO
THROUGH THE PORTS OF LOS ANGELES
AND LONG BEACH, BUT WE HAVE
NUMEROUS OTHER PORTS THROUGHOUT
THE STATE THAT ALSO NEED
ATTENTION. SO APPRECIATE THIS
ATTENTION. THIS IS A CRITICAL
CRITICAL ISSUE, NOT ONLY IN THE
SHORT TERM, BUT THE LONG TERM. I
WANT TO SAY THANK YOU VERY MUCH
TO MEMBER FONG FOR HIS HIS KIND
REMARKS. I WANT TO OFFER UP
THOSE INDIVIDUALS WHO ARE ON OUR
SELECT COMMITTEE WHO IS NOT HERE
. BUT AGAIN, THERE WERE
REPRESENTATIVES FROM THEIR
OFFICES ARE WELCOME TO JOIN US
ON THE DIET. IF THERE IN THE
AUDIENCE OR THEY ARE LISTENING
OR WATCHING THIS LIVE, UM WE
ALSO HAVE CECILIA A GLARE CURRY.
REPRESENTING THE FOURTH DISTRICT
, ALSO TASHA BURNER,
REPRESENTING THE 77TH DISTRICT,
MIA BONTA. WE HAVE
REPRESENTATIVE REPRESENTING THE
EIGHTH UM, EXCUSE ME. 18TH
ASSEMBLY DISTRICT WE HEARD FROM
OUR VICE CHAIR VINCE PHªN,
REPRESENTING THE 32ND DISTRICT
ALSO JOSH LOWENTHAL, UM 69TH
ASSEMBLY DISTRICT, AND ALSO
DIANE PAPPAS, REPRESENTING THE
21ST ASSEMBLY DISTRICT. ELOISE
REYES GOMEZ GOMEZ REYES,
REPRESENTING THE 50TH DISTRICT,
AND ALSO CARLOS VIÆT VALLAPUDUA
, REPRESENTING THE 13TH
DISTRICT. UM LORI WILSON,
REPRESENTING THE 11TH DISTRICT,
AND ALSO JIM WOOD, REPRESENTING
THE SECOND DISTRICT. SO THAT
MAKES UP THE SELECT COMMITTEE ON
PORTS AND GOOD MOVEMENT HERE IN
THIS ASSEMBLY SIDE, AND WE'RE
VERY GRATEFUL TO HAVE THESE
INDIVIDUAL MEMBERS. THEY ARE
VERY FOCUSED ON THE PORTS THAT
MANY OF THEM REPRESENT THE PORTS
AND VERY CONCERNED AND I'M HAPPY
TO SERVE WITH THEM AND THAT
CAPACITY NOW LET'S START THE
HEARING. UM NOW WE WILL HEAR
FROM OUR PANELISTS WHO WILL BE
SPEAKING ABOUT THE STATE'S ROLE
IN SEAPORT AND GOODS MOVEMENT
SYSTEM. EACH PANEL WILL HAVE UP
TO 6 TO 8 MINUTES TO SPEAK AND
WILL PRESENT IN THE ORDER THAT'S
NOTED ON THE AGENDA BEFORE
PRESENTING. PLEASE INTRODUCE
THIS. I'M GOING TO CALL OUR
FIRST PANEL UP. UM WOULD YOU
PLEASE COME UP? WE WANT WE HAVE
REPRESENTATIVE FROM THE, UM, THE
LEGISLATIVE ANALYST'S OFFICE.
OUR FIRST PANELIST, I THINK YOU
KNOW WHO YOU ARE. PLEASE COME
JOIN US AT THE TABLE. AND. ALL
THOSE MEMBERS ARE COMING UP.
WE'RE GOING TO HAVE THE WORDS
FOR THEM, UM ASSEMBLYWOMAN DIANE
PAPPAS TO SAY A FEW WORDS. WHERE
DID SHE GO? HE'S OVER. OKAY?
WE HAVE WAS RACHEL ELLIS.
TAYLOR'S YOU WERE CLOSE. GREAT
DEPUTY LEGISLATIVE ANALYSTS WITH
THE LEGISLATIVE ANALYST'S OFFICE
SPECIALIZING IN ENVIRONMENTAL
AND TRANSPORTATION ISSUES. UM.
SO THANK YOU VERY MUCH FOR BEING
HERE. UM AND WE'LL COME BACK FOR
REMEMBER, SAY A FEW WORDS AND
YOU CAN START AND PLEASE
INTRODUCE YOURSELF. THANK YOU SO
MUCH, MR. CHAIR RACHEL SAILORS
WITH YOUR LEGISLATIVE ANALYST'S
OFFICE. I WILL BE SPEAKING FROM
A HANDOUT, WHICH THE SERGEANT'S
SHOULD HAVE PASSED OUT. AND I
THINK MAY ALSO BE IN YOUR
BINDERS. FOR THOSE IN THE
AUDIENCE. THERE'S A STACK IN THE
HALLWAY AND FOR THOSE FOLLOWING
ONLINE, IT IS AVAILABLE ON OUR
WEBSITE LÀ DOT CA.GOV FOR THOSE
WHO WANT TO FOLLOW ALONG SO I
THINK THAT MY ROLE IS TO KIND OF
DO A PORK CALIFORNIA PORTS 101
GIVE YOU SOME OF THE BASICS AND
THEN GET OUT OF THE WAY SO YOU
CAN HEAR FROM THAT FROM THE
EXPERTS ON THESE TOPICS. UM WHAT
I'LL BE SPEAKING FROM IS BASED
ON A REPORT THAT OUR OFFICE DID
ABOUT A YEAR AGO. AUGUST 2022,
WHICH IS ALSO AVAILABLE ON OUR
WEBSITE, UM, THAT PROVIDES AN
OVERVIEW OF CALIFORNIA PORTS.
TURNING TO THE FIRST PAGE OF THE
HANDOUT. FOR THOSE OF YOU WHO
ARE VISUAL LEARNERS. THERE'S
SORT OF A FLOW CHART HERE OF ONE
PATHWAY THAT GOODS ORIGINATING
FROM OVERSEAS COULD TAKE FROM A
PRODUCER TO A CONSUMER. UM, AS
YOU CAN SEE, THE GOODS MOVEMENT
PROCESS INVOLVES MANY DIFFERENT
MODES OF TRANSPORTATION,
INCLUDING SHIPS AND RAIL AND
COMMERCIAL TRUCKS. ALSO
DIFFERENT. MANY DIFFERENT KINDS
OF FACILITIES, INCLUDING PORTS
AND DISTRIBUTION CENTERS AND
WAREHOUSES. SO UH, EVEN HERE YOU
CAN SEE THE ESSENTIAL ROLE THAT
PORTS PLAY NOW, AS THE VICE
CHAIR NOTED IN CALIFORNIA, WE
DON'T JUST RELY ON PORTS FOR
IMPORTS AS ILLUSTRATED HERE IN
THIS IN THIS ILLUSTRATION, BUT
ALSO FOR EXPORTS. IT'S A REALLY
IMPORTANT PIECE OF UM, OF OUR
ECONOMY HERE, UH, PARTICULARLY
FOR OUR AGRICULTURAL PRODUCTS
THAT ARE SUCH A KEY, UH,
DISTRIBUTION PIECE OF
CALIFORNIA'S PRODUCTS AND
GLOBALLY AS WELL. UM PORTS ARE
PRETTY IMPORTANT PART NOT JUST
IN CALIFORNIA, BUT ALSO
INTERNATIONAL COMMERCE AS WELL.
SO TURNING TO PAGE TWO OF THE
HANDOUT YOU CAN SEE AN OVERVIEW
OF CALIFORNIA'S 12 PORTS AND HOW
THEY REALLY DO VARY IN SIZE AND
IN FOCUS. SO OF THE 12 PORTS, 11
OR PUBLICLY OWNED ONE IS
PRIVATELY OWNED THE PORT OF
VENETIA. UM THE COURT OF LONG
BEACH AND LOS ANGELES ARE THE
TWO LARGEST PORTS IN THE UNITED
STATES IN TERMS OF CONTAINER
VOLUME. THE PORTS IN CALIFORNIA
PROCESS ABOUT 40% OF ALL
CONTAINERIZED IMPORTS IN THE
COUNTRY AND 30% OF ALL EXPORTS
IN THE U. S SO PRETTY IMPORTANT
PART NOT JUST OF CALIFORNIA'S
ECONOMY, BUT NATIONALLY AND
GLOBALLY AS WELL. UH AS YOU SCAN
THE FIGURE HERE YOU CAN SEE OUR
PORTS VARY IN SIZE, BUT ALSO IN
PRODUCTS BOTH WHAT WE EXPORT AND
IMPORT AT THE DIFFERENT PORTS
AREAS OF FOCUS. SO FOR EXAMPLE,
THE PORTAVOZ OAKLAND IS A
PRIMARY EXPORT FACILITY FOR OUR
AGRICULTURAL AND FOOD RELATED
PRODUCTS. WHEREAS I'VE BEEN
HUMBLED. THEY FOCUS MORE ON
LUMBER JUST BECAUSE OF THE
REGIONAL ECONOMY THERE SO ALL
VERY IMPORTANT PIECES OF THE
PUZZLE, BUT BUT PLAYING SLIGHTLY
DIFFERENT ROLES, DEPENDING ON
THE REGION. TURNING TO THE NEXT
PAGE, EVEN THOUGH THE PORTS ARE
LOCALLY OPERATED AND MANAGED.
THE STATE PLAYS A PRETTY
IMPORTANT ROLE IN SUPPORTING
THEM AND OVERSEEING THEM AS WELL
. SEVERAL DIFFERENT STATE
AGENCIES, TWO OF WHICH I'M
JOINED HERE ON WITH ON THE PANEL
, UM, THE CALIFORNIA STATE
TRANSPORTATION AGENCY AND GO
BIZ. I WON'T STEAL THEIR THUNDER
IN TERMS OF TALKING ABOUT WHAT
ROLE THEY PLAY. UM JUST TO NOTE
THAT FOR THE FOR THE AGENCY THAT
YOU AND THE LEGISLATURE DID
PROVIDE FUNDING LAST YEAR FOR ON
A THREE YEAR BASIS TO ESTABLISH
A NEW FREIGHT POLICY TEAM, WHICH
I'M SURE YOU'LL HEAR ABOUT. UH
ENTITIES. NOT HERE ON THE PANEL
, THE CALIFORNIA DEPARTMENT OF
TRANSPORTATION, WHICH LEADS
STATE PLANNING FOR TREATS
FREIGHT TRANSPORTATION, WHICH
OBVIOUSLY INCLUDES PORTS. THE
AIR RESOURCES BOARD AND REGIONAL
AIR QUALITY MANAGEMENT DISTRICT
ALSO PLAY PRETTY IMPORTANT ROLES
IN REGARDING OVERSIGHT AND
MANAGEMENT OF PORTS AROUND THEIR
EMISSIONS, GREENHOUSE GAS
EMISSIONS AS WELL AS POLLUTION
EMISSIONS, WHICH I'LL TALK ABOUT
IN A MOMENT AND THEN FINALLY,
THE STATE LANDS COMMISSION IS
THE STATE AGENCY THAT OVERSEES
ALL OF OUR STATE'S SOVEREIGN
LANDS, WHICH INCLUDES ALL OF OUR
COASTLINE AND ALL OF OUR
WATERWAYS. SO THE LANDS THAT ARE
GRANTED IN TRUST TO PORTS TO
OPERATE ARE OVERSEEN BY THE
STATE LANDS COMMISSION, AND THAT
COMMISSION ALSO REGULATES MARINE
OIL TERMINALS AS WELL. TURNING
TO PAGE FOR TALKING A LITTLE BIT
ABOUT FUNDING FOR PORTS. THE
MAJORITY OF THE FUNDING DOES
COME FROM LEASE AND FEE REVENUES
FROM THE SHIPPING BUSINESSES AND
FREIGHT OPERATORS AT PORTS. SO
IT IS NOT A PRIMARY SOURCE OF
STATE FUNDING OR FEDERAL FUNDING
FOR THEIR BUDGETS. AH IN FACT,
THERE'S NO ONGOING FEDERAL OR
STATE FUNDING DEDICATED TO
CALIFORNIA SUPPORT OPERATIONS
AND INFRASTRUCTURE. THERE IS A
FAIR AMOUNT OF ONE TIME FUNDING
, HOWEVER, UH, AS AVAILABLE AS
COMPETITIVE GRANTS FROM BOTH THE
FEDERAL GOVERNMENT AND THE STATE
GOVERNMENT, PRIMARILY AROUND
INFRASTRUCTURE. GENERALLY THE
LARGEST STATE PROGRAM IS THE
TRADE CORRIDOR ENHANCEMENT
PROGRAM, OR T SEP. WHICH DOESN'T
JUST SUPPORT PORTS AND SUPPORTS
ALL MANNER OF FREIGHT
TRANSPORTATION. BUT BUT PORTS
ARE ELIGIBLE TO APPLY FOR SOME
OF THAT FUNDING IN OUR REVIEW OF
PORTS BUDGETS THAT THESE FEDERAL
AND STATE GRANTS TYPICALLY MAKE
UP 2% OR LESS OF THEIR OVERALL
BUDGET, SO IT REALLY IS
GENERALLY A PRETTY SMALL SHARE.
HOWEVER IN RECENT YEARS THAT HAS
INCREASED OR THE AMOUNT OF
FUNDING AVAILABLE FOR PORTS TO
APPLY FOR HAS INCREASED IN PART
FROM THE FEDERAL INFRASTRUCTURE
BILLS THAT HAVE PASSED UM, AS
YOU CAN SEE HERE IN THE THIRD
BULLET 2.7 BILLION NATIONWIDE
FOR NON FEDERALLY IMPORT
INFRASTRUCTURE AND AN ADDITIONAL
3.3 BILLION NATIONWIDE IN NEW
FEDERAL GRANT AVAILABILITY. UM
THOSE GRANTS DO, THOUGH, HAVE TO
BE MATCHED BY LOCAL OR STATE
FUNDING. SO THAT'S SOMETHING
ELSE TO CONSIDER. IN TERMS OF
PORTS. FINANCIAL AVAILABILITY.
THERE'S MORE FEDERAL FUNDING
AVAILABLE, BUT THEY'VE GOT TO
COME UP WITH SOME MATCH EITHER
FROM STATE OR LOCAL FUNDS TO
DRAW THAT DOWN. ALSO PRETTY BIG
INCREASES IN STATE FUNDING. IF
YOU LOOK AT THE CHART HERE AT
THE BOTTOM OF THE FIGURE IN
RECENT YEARS, ENABLED BY OUR
GENERAL FUND SURPLUSES. WE'VE
HAD NEARLY $2 BILLION PLANNED
ACROSS ACROSS THESE YEARS AGAIN
, PRIMARILY FOR INFRASTRUCTURE,
BUT ALSO FOR SOME WORKFORCE
DEVELOPMENT AS WELL AS SUPPORT
DURING THE PANDEMIC. SO TURNING
TO THE FINAL PAGE OF THE HAND
OUT JUST TO HIGHLIGHT ANOTHER
IMPORTANT ROLE THAT THE STATE
HAS PLAYED IN IMPORT OPERATIONS
IS AROUND AIR QUALITY ISSUES
BECAUSE THE VEHICLES AND
EQUIPMENT AT PORTS PORTS
TYPICALLY ARE FUELED BY DIESEL
FUEL THAT DOES EMIT AIR
POLLUTANTS, PARTICULATE MATTER
AND NITROGEN OXIDES. THIS IS AN
ISSUE BOTH FOR PUBLIC HEALTH AS
WELL AS FOR GREENHOUSE GAS
EMISSIONS IN THE STATES CLIMATE
GOALS, UM ON PUBLIC HEALTH
ISSUES. NEARLY ALL OF THE CENSUS
TRACTS THAT SURROUND THE PORTS
OF LONG BEACH AND LOS ANGELES,
FOR EXAMPLE, ARE RANKED IN THE
TOP ONE THIRD OF THE MOST
POLLUTION, UM, BURDENED AREAS IN
THE STATE. THEY HAVE HIGHER
EXPOSURE AND HIGHER
VULNERABILITY TYPICALLY HAVE
LOWER INCOME ARE LOWER INCOME
COMMUNITIES, SO THIS HAS BEEN A
REALLY BIG AREA OF EMPHASIS FOR
THE STATE, BUT FOR PUBLIC
HEALTH, ENVIRONMENTAL JUSTICE AS
WELL AS OUR CLIMATE GOALS. THAT
AIR BOARD, STATE AIR BOARD AND
THE REGIONAL AIR QUALITY
MANAGEMENT DISTRICT HAVE PASSED
MANY REGULAR NUMBER OF
REGULATIONS, AND SOME ARE STILL
IN DEVELOPMENT AS WELL REGARDING
THESE ISSUES SUPPORTS HAVE BEEN
TAKING STEPS TO MEET THE STATE
AIR QUALITY REGULATORY
REQUIREMENTS AND GOALS. UM THERE
, FOR EXAMPLE, THE PORTS OF LONG
BEACH AND LOS ANGELES OR
IMPLEMENTING A CLEAN AIR ACTION
PLAN OVER THE PAST SEVERAL YEARS
THAT REALLY HAS MADE SOME
SIGNIFICANT REDUCTIONS. AH SO
EVEN BUT DESPITE THAT PROGRESS,
THESE ARE STILL SOME OF THE MOST
POLLUTED SOURCES. UH PART OF ME
THE PORTS ARE SOME OF THE
LARGEST SOURCES OF POLLUTION IN
THOSE REGIONS, SO IMPORTANT AREA
OF ST FOCUS HERE. PORTS REALLY
ARE GOING TO NEED TO ELECTRIFY A
LOT OF THEIR OPERATIONS IN ORDER
TO ADDRESS THIS, BUT THAT'S
PRETTY CHALLENGING. IT'S
CHALLENGING BECAUSE SOME OF THIS
TECHNOLOGY IS NOT YET WIDELY
AVAILABLE. IT'S VERY COSTLY. IT
MAY NOT ALIGN EXACTLY WITH THE
PORTS NEEDS SO THINKING ABOUT
THE PORTS OPERATIONS AS WELL AS
THE STATE HOW TO BALANCE THESE
COSTS AND CHALLENGES WITH SOME
OF THESE IMPORTANT UM PUBLIC
HEALTH GOALS AND TO MAINTAIN
NATIONAL AND GLOBAL
COMPETITIVENESS IN THE FACE OF
ALL THAT, SO I WOULD PRESUME
THAT SOME OF WHAT YOU'RE GOING
TO HEAR ABOUT AND IN SUBSEQUENT
PANELS HOW TO BALANCE ALL OF
THESE ISSUES. AND WITH THAT, MR
CHAIR, HAPPY TO ANSWER QUESTIONS
AFTER MY FELLOW PANELISTS HAVE
PRESENTED. THANK YOU. NO, THANK
YOU VERY MUCH FOR YOUR
PRESENTATION. WE APPRECIATE YOU
BEING WITH US IF YOU CAN JUST
STAY STICK AROUND A LITTLE WHILE
LONGER. UM THERE MAY BE SOME
QUESTIONS FROM OUR PANELISTS.
I'M SUSAN FROM OUR MEMBERS
RATHER, UM, FOR YOU. SO JUST
BEAR WITH US. I WANT TO ALSO
INTRODUCE A TRIAL, AND BRADLEY,
THE DEPUTY DIRECTOR OF
SUSTAINABLE FREIGHT AND SUPPLY
CHAIN AT THE GOVERNOR'S OFFICE
OF BUSINESS AND ECONOMIC
DEVELOPMENT, BETTER KNOWN AS
GOLD BEARS. SO WELCOME, MR
BRADLEY. THANK YOU VERY MUCH FOR
BEING HERE AND YOU CAN START BY
OPENING UP WITH A FEW WORDS AND
INTRODUCING YOURSELF AND JUST
PROCEED WITH YOUR PRESENTATION.
THANK YOU, TERRY GIBSON. UM AND
THANK YOU TO THE MEMBERS ON THE
DIESS. MY NAME IS TREY BRADLEY.
I'M THE DEPUTY DIRECTOR FOR
SUSTAINABLE FREIGHT AND SUPPLY
CHAIN AT THE GOVERNOR'S OFFICE
OF BUSINESS AND ECONOMIC
DEVELOPMENT OR GO BIZ. I LEAVE
THE OFFICE IS SUPPLY CHAIN UNIT
WITHIN GO BIZ, WHICH IS ONE OF
THE MANY UNITS WITHIN OUR TEAM
AND OUR SMALL DEPARTMENT. AS YOU
KNOW, GO BUSINESS STILL FAIRLY.
YOUNG AND STATE GOVERNMENT. WE
JUST CELEBRATED OUR 10TH YEAR IN
STATE GOVERNMENT. BUT WE HAVE
MANY TEAMS WHO WORK ON A VARIETY
OF ISSUES AND PRIMARILY WITH THE
BUSINESS COMMUNITY. WHO IS OUR
YOU KNOW, OUR OUR STAKEHOLDER IS
LISTED IN STATUTE. UM AND THOSE
TEAMS WORK ON AN ARRAY OF ISSUES
AROUND PORTS AND GOODS MOVEMENT
. WE HAVE A ZERO MISSION
VEHICLES UNIT, FOR EXAMPLE, WE
HAVE A BUSINESS INVESTMENT
SERVICES UNIT, WHICH WORKS WITH
BUSINESSES AND HELPING THEM
NAVIGATE INCENTIVES, PERMIT
ASSISTANCE AND FIND SITES WITHIN
CALIFORNIA. WE HAVE AN OFFICE OF
PERMIT ASSISTANCE WHO HELPS
COMPANIES OFTENTIMES, SOMETIMES
THOSE WHO ARE INTERFACING WITH
FREIGHT AND GOODS MOVEMENT AND
NAVIGATING STATE PERMITTING
PROCESSES. AND HELPING THEM WITH
LOCAL MEDIATION IN THE
PERMITTING PROCESS. WE OPERATE.
CALIFORNIA COMPETES TAX CREDIT.
WE HAVE THE OFFICE, SMALL
BUSINESS ADVOCATE AND, OF
COURSE, UNDER THE BROADER
GOBER'S BRO UMBRELLA. WE ALSO
HAVE THE INFRASTRUCTURE AND
ECONOMIC DEVELOPMENT BANK, WHICH
PROVIDES LENDING SUPPORT TO
LOCAL GOVERNMENT CAPACITY AND
LOCAL GOVERNMENT AND BUSINESS
CAPACITY. REALLY QUICK. I JUST
WANTED TO, YOU KNOW, I THINK IT
WAS A GREAT OVERVIEW OF
CALIFORNIA'S PORTS ECOSYSTEM,
WHICH IS VAST AND VERY LARGE OR
PAST YEAR AND THIS POSITION I'VE
HAD THE OPPORTUNITY TO SEE EVERY
PORTS IN THE STATE OF
CALIFORNIA. SO VENTA ALL 12.
IT'S UM, VERY INTERESTING. YOU
KNOW, OUR PORTS ARE DYNAMIC
PLACES IN EACH OF THEM HAVE
THEIR OWN RESPECTIVE NEEDS AND
AMBITIONS AND GOALS. YOU KNOW,
REALLY? WE AS GÓMEZ HAVE SEEN
THEIR LEADERSHIP AND ECONOMIC
COMPETITIVENESS IN THE FREIGHT
AND GOODS MOVEMENT. SPACE IS
DYNAMIC AND WE HAVE VERY
OPTIMISTIC VIEWPOINTS ON THE
FUTURE OF WHAT THAT IS. IN
22,022, YOU KNOW THE PORTS OF
LONG BEACH, ELLA AND OAKLAND.
UM, IF YOU LOOK AT THE
CUMULATIVE TOTAL NINE SELECT
CONTAINER PORTS PUBLISHED BY THE
BUREAU OF TRANSPORTATION
STATISTICS, THOSE THREE ALONE
COUNT FOR 42.4% OF THE CAMP
CONTAINERS THAT THEN SERVICE THE
UNITED STATES. UM AND IF YOU
LOOK AT, YOU KNOW SOME OF THE
INFRASTRUCTURE CAPACITY THAT
EXISTS AT OUR PORTS SHIP TO
SHORE GANTRY GANTRY CRANES THAT
ARE AT PORTS ACROSS THE UNITED
STATES. IF YOU TAKE JUST THE TOP
FIVE L, A LONG BEACH IN OAKLAND.
THEY ACCOUNT FOR 265 OF 425 OF
THE SHIP TO SHORE GANTRY CRANES
IN THE U. S FOR HANDLING DEMAND.
IN 2021, CALIFORNIA SUPPORTS SAW
HISTORIC YEAR IN TRADE VALUE AND
I DON'T THINK IT'S UM IT'S
HONEST AND NOT, YOU KNOW, HOLD
THAT UP. IT IS THE MOST VOLUME
THAT REPORTS MOVED IN HISTORY.
UM YOU KNOW, THEY'RE YOU KNOW,
THE PORTA LOS ANGELES ALONE.
MOVED 10.7 MILLION TUS, WHICH
SAID A WESTERN HEMISPHERE RECORD
FOR A SINGLE PORTS IN THE YOU
KNOW OF ALL TIME HERE AND IN
THIS DURING THAT TIME. AND SO
THAT'S REALLY COMMENDS NOT TO US
AS A STATE. IT'S TOO MANY OF THE
FOLKS BEHIND US IN THE ROOM HERE
IN FREIGHT AND GOODS MOVEMENT
AND TO THOSE IN THE WORKFORCE
WHO REALLY MADE, UM THESE
RECORDS THAT REALITY AND WE'VE
ALSO SEEN AGO BIZ THAT NOT JUST
, YOU KNOW, IN OUR PRIMARY MAJOR
CONTAINER PORTS. WE'VE SEEN OUR
MEDIUM PORTS. UM YOU KNOW, SIZE
PORTS HAVE BEEN EXCELLING AND
GROWING AS WELL. EXAMPLE HERE
IS, YOU KNOW, IN 2022, PUERTO
FRENEMY CONTAINER BUSINESS WENT
UP 90% IN 22,022 AND REVENUES UP
30. WE'VE ALSO SEEN A LOT OF
DEMAND INCREASE IN PRIVATE
INVESTMENT TAKING PLACE AT THE
PORTS OF STOCKTON'S, SO THESE
OPPORTUNITIES ARE VAST AND BROAD
AND WE'RE SEEING THE PRIVATE
INVESTMENT COME IN. AND AS A
RESULT OF, YOU KNOW,
UNDERSTANDING OUR PORTS AND MORE
CONCERTED WAY FROM THE PRIVATE
SECTOR AND UNDERSTANDING HOW
THEY'RE ABLE TO PARTNER WITH
THEM ON PROJECTS AND PUBLIC
PRIVATE PARTNERSHIPS. UH THAT
YOU KNOW, RIDING OFF OF THAT WE
HAVE THE LARGEST SINGLE AND BUS
INVESTMENT THAT THE STATE HAS
MADE IN SUPPLY CHAIN THIS PAST
YEAR, AND I KNOW THAT CAL'S
CALISTA WILL BE TALKING ABOUT
THAT SHORTLY. BUT YOU KNOW, JUST
TO PUT THAT IN PERSPECTIVE, THE
LAST BUDGET IN THE YEAR BUDGET
PRIOR THERE'S 15 BILLION OVER
FIVE YEARS, AND TRANSPORTATION
INVESTMENT 8.1 BILLION OVER FIVE
YEARS FOR ENERGY, CLEAN ENERGY
AND GRID, RELIABILITY AND
COLLECTIVE 10 BILLION OVER THREE
YEARS. IF YOU ADD BOTH THE
BUDGETS COMBINED FOR JUST ZERO
EMISSION VEHICLE INFRASTRUCTURE
IN TOTALITY, AND A LOT OF THAT
ZERO MISSION VEHICLE FUNDS IN
THE LAST TWO BUDGETS ARE REALLY
THERE'S A LOT OF FUNDS THAT ARE
FOCUSED ON HEAVY DUTY VEHICLES
AND ASSOCIATED OTHER TYPES OF
ZEBRAS, NOT JUST TRUCKS, BUT
ALSO THOSE TYPES OF EQUIPMENT
THAT EXISTS AT OUR PORTS THAT
YOU THAT YOU SEE OFF OFTEN WHEN
YOU VISIT, BUT THERE'S ALSO ONE
TIME INVESTMENTS. WE SPOKE AS GO
BIZ EARLIER THIS WEEK WITH
CALISTA AND YOU KNOW, AND
HIGHLIGHTING THE $300 MILLION
THE SEA IS INVESTED IN THE LOW
SAND CORRIDOR, THE LOS ANGELES
AND SAN DIEGO RAIL CORRIDOR
CRITICAL RAIL CORRIDOR FOR
FREIGHT AND GOODS MOVEMENT,
ESPECIALLY AS BUT ALSO SOME
OTHER ONE TIME IS INVESTMENTS
LIKE A 150 MILLION FOR THE GOODS
MOVEMENT TRAINING CAMPUS IN
SOUTHERN CALIFORNIA. UM THAT
BRINGS US TO WHAT THE INVESTMENT
AND THE FUNDS THAT HAVE BEEN
PLACED WITHIN GO BIZ WITHIN
GÓMEZ. WE HAVE 30 MILLION AS
HIGHLIGHTED IN THE LEOS
PRESENTATION FOR IMPROVING
OPERATIONS DATA OPERATIONS AT
CALIFORNIA'S FIVE CONTAINERIZED
PORTS. THIS PAST YEAR. WE SIGNED
THE CALIFORNIA PORTS DATA'S
PARTNERSHIP. MOU
ASSEMBLYMEMBER'S GIBSON THANK
YOU FOR BEING THERE TO SPEAK AT
THAT EVENT, AND OF COURSE, MANY
OF THE FOLKS WHO ARE IN THE ROOM
WERE ALSO IN ATTENDANCE AS WELL.
VERY DYNAMIC PARTNERSHIP AND
ALSO INABILITY FOR US IN THE
NEXT COUPLE OF YEARS TO LOOK AT
DATA SYSTEM DEVELOPMENT AND A
MORE COLLECTIVE AND CONCERTED
WAY. TO MAKE SURE THAT THOSE
INVESTMENTS ARE ACTUALLY
SUPPORTING ALL THE STAKEHOLDERS
THAT INTERFACE WITH OUR
CONTAINER PORTS. THE ONE THING
I'LL ADD AT THE END IS THE ONE
THING WE SEE IN GOBIES AND
REALLY OUR ROLE IS WE WORK A LOT
WITH THE BUSINESS AND THE
PRIVATE SECTOR COMMUNITY AND WE
SEE A, UM, A PROFOUND INVESTMENT
AMOUNT OF PRIVATE INVESTMENT IN
FREIGHT AND GOODS MOVEMENT
COMING AS A RESULT, YOU KNOW, AS
WE AS THE STATE AND PUBLIC
AGENCIES ARE MAKING THESE
INVESTMENTS, YOU KNOW, PRIVATE
SECTOR WILL FOLLOW AND BE A PART
OF THE CAPITAL STACK. IT WAS
MENTIONED ABOUT INLAND PORTS
DEVELOPMENT. WE ARE TRACKING
MANY INLAND PORT DEVELOPMENTS
ACROSS THE STATE OF CALIFORNIA.
AND THIS PAST YEAR WE HAVE HAD
THE FIRST, UH, INLAND PORTS TO
BE LED BY A CLASS ONE RAILROAD
IN THE ENTIRE IN NORTH AMERICA
ANNOUNCED IN CALIFORNIA SO $1.5
BILLION PRIVATE INVESTMENT
PROJECT IN THE BARSTOW
INTERNATIONAL GATEWAY. BY BNSF.
UM IT IS THERE'S NO PROJECT LIKE
IT IF YOU KNOW FOR THOSE IN THE
BUSINESS COMMUNITY AND THIS
MASSIVE INDUSTRIAL PROJECT, UM
THERE'S A LOT OF FOLKS WHO ARE
EXCITED ABOUT WHAT IT CAN BRING.
BUT IT IS. IT IS DIRECTLY TIED
TO SOME OF THESE PUBLIC
INVESTMENTS THAT WE ARE MAKING
US AS GOVERNMENT BUT THEN ALSO
THE OPPORTUNITY THAT THE PRIVATE
SECTOR IS SEEING IN THE FUTURE
AND DEVELOPMENT. OF FREIGHT AND
GOODS MOVEMENT WITHIN THE STATE
OF CALIFORNIA. UM THAT'S LAST TO
SAY THAT YOU KNOW THE REASON
THAT SOME OF THESE PRIVATE
INVESTORS INVESTMENTS ARE COMING
IN FREIGHT AND GOODS MOVEMENT,
AND WE'RE SEEING THEM IS BECAUSE
IT'S A BROADER TOPIC, BUT DOWN
THE YEARS, YOU KNOW THE SUPPLY
CHAIN AND GOODS MOVEMENT
ECOSYSTEM IN CALIFORNIA WILL BE
LOOKED VERY DIFFERENT TOMORROW.
THE ENTIRE GLOBAL SUPPLY CHAIN
PARADIGM WITHIN THE WORLD IS
CHANGING. UM YOU KNOW, JUST IN
THIS LAST YEAR, MEXICO BECAME
THE U. S S NUMBER ONE TRADING
PARTNER. WE'RE SEEING A LOT OF
HEAVY INVESTMENTS IN
MANUFACTURING CAPACITY AND GOODS
, MOVEMENT AND LOGISTICS ALSO BE
MADE IN OUR SOUTHERN BORDER
REGION. WE HAVE OTAY MESA EAST,
WHICH IS ONE OF THE LARGEST
TRANSPORTATION PROJECTS WITHIN
THE STATE OF CALIFORNIA
CURRENTLY UNDERWAY. UM THERE'S A
LOT OF NEW SUPPLY CHAINS THAT
ARE BEING DEVELOPED WITHIN
CALIFORNIA AND SOME OF US AND GO
BIZARRE CONSTANTLY LOOKING AT
WHAT THAT OPPORTUNITY I MEAN FOR
OUR PORTS, SOME OF THOSE NEW
SUPPLY CHAINS THAT WE WORK WITH
ARE THINGS LIKE CRITICAL MINERAL
SUPPLY CHAIN HYDROGEN. UM, AND
THEN ALSO, YOU KNOW, OFFSHORE
WIND DEVELOPMENT. SO WORKING
WITH THOSE PRIVATE STAKEHOLDERS
TO BUILD THOSE NEW SUPPLY CHAINS
, HYPER LOCALIZED THEM NEAR
WHERE THOSE OPPORTUNITIES ARE
DIMINISHED ENVIRONMENTAL IMPACTS
ACROSS OUR COMMUNITIES. UM AND,
UH, FOR THE LAST PIECE, I JUST
WANT TO SAY ANOTHER PART. THAT
JOB IS DOES AND WE WORK ACROSS
WITH ALL OUR PARTNER AGENCIES
DOING IS REALLY ASSISTING AND
THINKING ABOUT HOW TO BUILD THE
CAPITAL STACK FOR PROJECTS.
THAT'S REALLY ONE OF OUR FORTE'S
AGO BUSINESS THINKING ABOUT HOW
THE CAPEX AND JOBS NUMBERS AND
WHAT ARE THE DIFFERENT
INCENTIVES, FINANCIAL TOOLS. UM
GOVERNMENT BONDS OR LOANS OR
GRANTS THAT CAN FIT INTO MAKE
THE PROJECT'S SUCCESS IN
REALITY. AND IT'S REALLY THROUGH
THE LEADERSHIP OF THE STATE
TRANSPORTATION AGENCY AND
CALTRANS THAT THEY HAVE LED AN
INTER AGENCY FREIGHT
COORDINATION WORKING GROUP OF
ALL STATE AGENCIES, WHICH WE
SPEAK VERY REGULARLY AND SHARING
, WHETHER THE OPPORTUNITIES AND
HOW CAN WE ONLINE OUR
INVESTMENTS AT THE STATE LEVEL
TO MAKE SURE THAT THEY ARE, YOU
KNOW, COMING TO FRUITION IN A
WAY? THAT IS NOT ONLY ALIGNED
WITH THE GOALS AT THE LOCAL
LEVEL, BUT ALSO WITH STATE GOALS
AND VISION. SO WITH THAT, I'LL
CONCLUDE A LITTLE BIT ON A PIECE
ABOUT JOB IS HAPPY TO ANSWER ANY
QUESTIONS AFTER. UM AND THANK
YOU. MR BRADLEY. THANK YOU VERY
MUCH. WE APPRECIATE THE OFFICE
OF GOLD BEARS AND ALL THE WORK
THAT THIS OFFICE HAS BEEN
DESIGNED TO DO. SO, THANK YOU
VERY MUCH FOR YOUR TESTIMONY AND
AGAIN IF YOU'RE GONNA STICK
AROUND, I'M SURE MY COLLEAGUES
HAVE SOME QUESTIONS FOR YOU. SO
NEXT UP, WE WANT TO INVITE UP.
ERIC FREDERICK, FREIGHT POLICY
MANAGER AT THE CALIFORNIA STATE
TRANSPORTATION AGENCY, SO
WELCOME. THANK YOU VERY MUCH,
AND THE FLOOR IS YOURS. IF YOU
CAN JUST OPEN UP WITH
INTRODUCTION AND JUST MOVE
FORWARD YOUR PRESENTATION. THANK
YOU. THANKS CHAIR, GIBSON AND
THE COMMITTEE MEMBERS IS, AS YOU
NOTED, I'M ERIC FREDERICKS WITH
CALIFORNIA STATE TRANSPORTATION
AGENCY AND PART OF THE NEW
OFFICE THAT L. A REPORT
MENTIONED FOR FREIGHT POLICY AT
AT CALISTA, THE SO JUST TWO
YEARS AGO, AS YOU ALL KNOW, AND
IN THE SUMMER AND FALL OF 2021
THERE ARE NEARLY 100 SHIPS
QUEUING IN THE WATERS JUST
OUTSIDE THE PORTS OF LOS ANGELES
AND LONG BEACH. WAITING TO BERTH
AT THE PIERS AND AT THE PEAK.
THERE WERE OVER 135 SHIPS AT
BERTH. OR IN QUEUE WAITING TO
BERTH, WHICH IS JUST UNHEARD OF
IN CALIFORNIA'S HISTORY. SO IN
NOVEMBER, 2021 GOVERNOR NEWSOM
PLEDGED TO RESPOND TO THE GLOBAL
GLOBAL SUPPLY CHAIN CRISIS, AN
ACT WITH URGENCY TO ADDRESS
DISRUPTIONS IN THE NEAR TERM.
WELL AT THE SAME TIME WORKING ON
LONG TERM SOLUTIONS. AND THE
GOVERNOR TOOK SEVERAL SHORT TERM
ACTIONS, INCLUDING SIGNING AN
EXECUTIVE ORDER, WHICH A LOT OF
THE STATE AGENCIES HAD ACTIONS
TO EXECUTE. AND THAT DID HELP
ALLEVIATE SOME OF THE SUPPLY
CHAIN CONGESTION AT THE TIME.
BUT NOW THANKS TO THE
PARTNERSHIP WITH YOUR
LEGISLATURE. WE'RE ADDRESSING
THOSE LONG TERM NEEDS THAT HE
MENTIONED AND THE NEEDS OF THE
FREIGHT INDUSTRY WITH HISTORIC
ONE TIME INVESTMENTS THAT WERE
MENTIONED EARLIER. IN OUR NATION
LEADING SUPPLY CHAIN
INFRASTRUCTURE TO POWER OUR
ECONOMY FOR DECADES TO COME. THE
LAST MONTH AND THANKS TO SEVERAL
OF YOU THAT ATTENDED THE
ANNOUNCEMENTS, GOVERNOR NEWSOM
ANNOUNCED 1.5 BILLION IN AWARDS
THROUGH THE PORTS FREIGHT
INFRASTRUCTURE PROGRAM. WE CALL
PIF IT AND ALSO THE TRANSIT AND
INTERCITY RAIL CAPITAL PROGRAM
CALLED T I R. C P SO 1.2 BILLION
IS GOING TOWARDS 15 PROJECTS,
CONTRIBUTING TO MORE EFFICIENT,
SUSTAINABLE AND RESILIENT SUPPLY
CHAIN. AND THEN ANOTHER 350
MILLIONS GOING TO 13 TR CP
PROJECTS THAT ELIMINATE AT GRADE
RAIL CROSSINGS TO IMPROVE
SAFETY, REDUCE EMISSIONS AND
KEEP GOODS AND PEOPLE MOVING.
AND THESE FUNDS INCLUDE, UH 450
MILLION FOR ZERO MISSION
INFRASTRUCTURE, LOCOMOTIVES,
VEHICLES AND VESSELS MAINTAINING
OUR COMPETITIVENESS. GREENING
THE. WHILE CREATING THE GREENEST
PORTS IN THE NATION AND PRETTY
HISTORIC FOR TRANSPORTATION
RELATED FUNDS TO GO TOWARDS WHOM
SO MANY ZERO MISSION PROJECTS.
SOME OF THE OTHER INVESTMENTS
MADE THROUGH OUR PROGRAM INCLUDE
MODERNIZING PEERS, WARS AND DOGS
AT SEVERAL PORTS ACROSS THE
STATE. EXPANDING CAPACITY,
IMPROVING POOR EFFICIENCY. UH
ENCOURAGING MODE SHIFT, WHICH
WILL HAVE A LOT OF GREEN
GREENHOUSE GAS AND OTHER MISSION
BENEFITS FROM MOVING FROM TRUCK
TO RAIL AND BETTER UTILIZING THE
ALAMEDA CORRIDOR AND SOUTHERN
CALIFORNIA. PROVIDING ZERO
MISSION TERMINAL EQUIPMENT,
EXPANDING TRUCK, BATTERY
CHARGING AND HYDROGEN FUELING
LOCATIONS. OVER 376 NEW CHARGING
STATIONS. AND OVER 17 HYDROGEN
FUELING STATIONS AVAILABLE TO
THE PUBLIC. IMPROVING CRITICAL
GRADE SEPARATIONS AND GRADE
CROSSINGS AND ALSO SUPPORTING
ACTIVE TRANSPORTATION OF SOME
KEY, UH SEPARATE GRADE
SEPARATIONS AT AROUND THE PORTS.
SO ON TOP OF THIS, AS MENTIONED
EARLIER, THERE WAS ALSO 1.1
BILLION AWARD AND THEN THE TRADE
CORRIDOR ENHANCEMENT PROGRAM
ADMINISTERED BY THE CALIFORNIA
TRANSPORTATION COMMISSION. SO
COMBINE THESE AWARDS HELP
MAINTAIN OUR STATES COMPETITIVE
EDGE AND NATIONAL GROUP AND
GLOBAL TRADE. AND PUT THESE
PROJECTS IN A STRONGER POSITION
TO COMPETE FOR SIGNIFICANT
FEDERAL INFRASTRUCTURE DOLLARS.
ALWAYS HAVING A LASTING POSITIVE
IMPACT FOR THE PEOPLE OF
CALIFORNIA. AND SO FOR US WHEN
YOU'RE THINKING ABOUT SUPPLY
CHANGED, UM, IT'S MAYBE NOT THE
FIRST THING THAT COMES IN MIND
FOR BREAD, OTHERS, BUT WE'RE
THINKING ABOUT THIS AS AN
INVESTMENT IN PEOPLE. THESE
INVESTMENTS WE MADE IN THE
SUPPLY CHAIN WILL SAVE LIVES.
WESTERN ENVIRONMENTAL IMPACTS ON
NEIGHBORING COMMUNITIES. AND
ALSO CREATE AN ESTIMATED 20,000
JOBS AND VERY NEEDED PLACES. THE
PIF. IT WAS WELL OVERSUBSCRIBED,
THOUGH. AND OVER 100 EARTH.
SORRY 1 BILLION IN CRITICAL
PROJECTS. WE'RE NOT ABLE TO BE
AWARDED. WE EXPECT THESE
PROJECTS TO BE PRIME CANDIDATES
FOR FUTURE FUTURE FEDERAL OR
FUTURE FEDERAL AND STATE FUNDING
PROGRAM AWARDS. SO JUST ON THE
MINISTRATIONS SIDE, CALTRANS IS
GOING TO PROVIDE OVERSIGHT OF
WARRANTIES, AND THEY PLAN TO
ALLOCATE THE FUNDS AND THE
COMING MONTHS. CALISTA WILL
ADMINISTER THE PROJECTS AWARDED
TO CALTRANS. AND WE'VE ALREADY
INITIATED KICKOFF MEETINGS WITH
THE AWARD RECIPIENTS. THESE
AWARDS, ALONG WITH THE FUNDING
ADMINISTERED BY GO AND C W. D B
WILL SUPPORT DATA SHARING
AMONGST THE CONTAINERIZED PORTS
AND SUPPORT WORKFORCE AND MAKE A
HUGE AND NOTICEABLE IMPACT ON
THE SUPPLY CHAIN. AS FAR AS THE
CURRENT HEALTH OF THE SUPPLY
CHAIN. WE DO TRACK METRICS ON
BEHALF OF THE GOVERNOR'S SUPPLY
CHAIN TASK FORCE. WE'RE HAPPY TO
REPORT THAT MANY OF THE KEY
SUPPLY CHAIN METRICS HAVE
RETURNED TO PRE COVID LEVELS.
SOME OF THE DISCRETIONARY CARGO
THAT WAS DIVERTED TO THE EAST
AND GULF COAST IN RECENT MONTHS
HAS STARTED TO SHIFT BACK TO
CALIFORNIA. HOWEVER WITH WATER
LEVELS, WATER LEVEL ISSUES IN
THE PANAMA CANAL THAT WE'RE
SEEING THE TYPICAL SEASON
IMPORTS FORTHCOMING AND UPCOMING
LABOR NEGOTIATIONS WITH EASTERN
COASTAL PORTS. WE SHOULD BE
PREPARED TO SEE AN INCREASE IN
CARGO COMING THROUGH CALIFORNIA
SPORTS. WE SHOULD ALSO NOTE THAT
MUCH ATTENTION IS PLACED ON THE
THREE LARGEST CONTAINER PORTS AS
MENTIONED. HOWEVER AND TRADE
ALLUDED TO THIS TO THE SMALLER
REPORTS IN CALIFORNIA, SUCH AS
ONE ENEMY AND STOCKED AND ARE
REPORTING THEIR BUSIEST VOLUMES
IN YEARS, IF NOT EVER, AND THEIR
LONG HISTORY AND THERE'S SEEING
A LOT OF ACTIVITY AT THE
AIRPORTS. INVESTMENTS IN ALL
SECTORS OF CALIFORNIA SUPPLY
CHAIN OR CRITICAL TO CONTINUED
MOVEMENT OF CARGO. LASTLY I
WANTED TO MENTION THAT IN MARCH,
2023 UH, THE STATE OF CALIFORNIA
SIGNED A LETTER OF INTENT WITH
THE JAPANESE MINISTRY OF LAND,
INFRASTRUCTURE, TRANSPORT AND
TOURISM, ALSO KNOWN AS EMILY T.
TO SUPPORT PORTAL CARBONATION,
THE CARBON IZATION AND THE
DEVELOPMENT OF GREEN SHIPPING
QUARTERS. ADDITIONALLY A NUMBER
OF CALIFORNIA PORTS OF EXECUTED
GREEN SHIPPING QUARTER
AGREEMENTS WITH JAPANESE PORTS
COUNTERPARTS SUCH AS REPORT IN
L. A WITH PORTABLE YOKOHAMA PORT
OF LONG BEACH, WITH THE PORTAL
KOBE AND A FEW OTHERS. SO CAL
STONE. IT'S SISTER STATE
AGENCIES SUPPORTED BY THE
CALIFORNIA STATE UNIVERSITY,
LONG BEACH CENTER FOR
INTERNATIONAL TRADE AND
TRANSPORTATION. ARE NOW
COORDINATING A SYMPOSIUM WITH
THE JAPANESE. EMILY T. THIS
HIGHLIGHT OUR PORTS
DECARBONIZATION WORK. WE'RE
PLANNING THAT THE CALIFORNIA
POOR DECARBONIZATION AND GREEN
SHIPPING CORRIDOR SYMPOSIUM TAKE
PLACE AT THE PORTA VELA ON
OCTOBER 20TH OF THIS YEAR.
ADDITIONALLY CALIFORNIA SUPPORTS
ARE PLANNING AN EVENT NEAR OR
DURING THE ASIA PACIFIC ECONOMIC
COOPERATION BETTER KNOWN AS APEC
SUMMIT. IN SAN FRANCISCO THIS
NOVEMBER. THIS EVENT WILL INVITE
SEVERAL ASIAN NATIONS TO
COLLABORATE WITH CALIFORNIA'S
PORTS ON FUTURE GREEN SHIPPING
CORRIDORS OR AND PARTNERSHIPS.
WITH THAT I'M HAPPY TO TAKE ANY
QUESTIONS. THANK YOU VERY MUCH,
MR FREDERICK. AND THANK YOU VERY
MUCH FOR YOUR TESTIMONY. WE
ABSOLUTELY APPRECIATE YOU BEING
HERE IF YOU CAN JUST STICK
AROUND FOR A BRIEF MOMENT, UM,
MY COLLEAGUES WILL HAVE SOME
QUESTIONS. I WANT TO, UM, UM,
HAVE MY COLLEAGUES INTRODUCED
HIMSELF, STARTING WITH MR
MURATSUCHI ON THE LEFT, UM, AND
THEN MOVED TO MR LOWENTHAL AND
THEN ALSO TO MS PAPPAS. YOU CAN
JUST INTRODUCE YOURSELVES AS
WELL AS TALK ABOUT YOUR DISTRICT
. UM AND THEN WE WILL BE ASKING
YOU SOME QUESTIONS. SO THANK YOU
VERY MUCH. THANK YOU VERY MUCH.
MR. CHAIRMAN I'M AL MURATSUCHI.
I PROBABLY REPRESENT THE HARBOR
AREA IN THE SOUTH BAY OF LOS
ANGELES COUNTY, SHARING WITH THE
CHAIR REPRESENTATION OF THE SAN
PEDRO COMMUNITY, UM WE'RE VERY
PROUD OF SAN PEDRO. AND WE KNOW
THAT, UH UM, THE PORTS OF LOS
ANGELES AND LONG BEACH ARE YOU
KNOW IT IS THE BIGGEST ECONOMIC
ENGINE OF THE ENTIRE REGION. UM
YOU KNOW, I HEAR OFTEN. ABOUT
THE COMPETING CHALLENGES OF
MAKING SURE THAT YOU KNOW, WE
CALL IT AMERICA'S PART WHAT 40%
OF ALL GOODS THAT COME INTO THE
UNITED STATES COMES THROUGH THE
PORTS OF PORTS OF LOS ANGELES
AND LONG BEACH. UM WE WANT TO
MAKE SURE THAT WE ARE
COMPETITIVE THAT THOSE GOODS ARE
COMING INTO LONG BEACH AND LOS
ANGELES AND NOT GOING TO THE
EAST COAST OR TO THE GULF
STATES. UM. UH HUH. AND WHILE AT
THE SAME TIME WE WANT TO MAKE
SURE THAT WE ARE SUPPORTING AND
PROTECTING THE LONGSHORE JOBS,
THE WAREHOUSE SHOPS, UM AT THE
PORTS, I KNOW THAT THERE IS, UH
ONGOING CONCERNS ABOUT
INCREASING AUTOMATION AT THE
PORTS. AND SO THAT'S WHERE WE
NEED TO MAKE SURE THAT WE'RE
KEEPING OUR PORTS COMPETITIVE
WHILE AT THE SAME TIME NOT
THREATENING THE JOBS OF THE
LONGSHOREMEN, UM. AND THERE'S
ALSO CONCERNS ABOUT ALL OF THE
AIR POLLUTION COMING OUT OF THE
PORTS. NOT ONLY ALL THE DIESEL
TRUCK, UM, TRANSPORTATION COMING
OUT OF THE PORTS, UM THE EFFORTS
WHICH I FULLY SUPPORT TO
CONTINUE TO, UM CUT DOWN ON AIR
POLLUTION TO MAKE SURE THAT
WE'RE PROTECTING RESIDENTS OF
SAN PEDRO, WHILE AT THE SAME
TIME MAKING SURE THAT WE ARE
KEEPING THE PORTS COMPETITIVE,
SO THAT WE'RE NOT LOSING, UM
THE, UH THE GOODS, UH, GOING TO
OTHER PORTS BECAUSE OF OUR
EFFORTS TO FOCUS ON THESE
ENVIRONMENTAL ISSUES. AND SO
THANK YOU VERY MUCH. MR
CHAIRMAN. I KNOW THAT THERE ARE
VERY A LOT OF IMPORTANT ISSUES
BEING ADDRESSED BY THE SELECT
COMMITTEE AND I REALLY
APPRECIATE YOUR COMPETING THIS
THIS HEARING. THANK YOU VERY
MUCH. THANK YOU, MR CHAIRMAN. UM
I'M JOSH LOWENTHAL, THE
ASSEMBLYMEMBER'S REPRESENTING
THE 69TH ASSEMBLY DISTRICT,
WHICH INCLUDES SUPPORT OF LONG
BEACH. IN FACT, THAT INCLUDES
ALMOST THE ENTIRETY OF LONG
BEACH AND WHETHER YOU'RE
DIRECTLY INVOLVED IN THE GOODS,
MOVEMENT SECTOR OR INDIRECTLY
INVOLVED, UM BUSINESSES OR
SUPPLIERS OR IN THE GOODS
MOVEMENT CHAIN ITSELF. IF YOU
LIVE IN LONG BEACH, YOU ARE
IMPACTED BY ITS MOVEMENT.
TOTALLY AND COMPLETELY. IT IS
THE LARGEST ECONOMIC DRIVER OF
THE REGION. IT ALSO IS
RESPONSIBLE FOR SOME OF THE
WORST AIR QUALITY IN THE UNITED
STATES. AND UH, ALL THE THINGS
THAT MY COLLEAGUE, MR MERRITT
SOUCI JUST BROUGHT FORWARD. I
WANT TO ECHO. UH YOU KNOW, THIS
IS A SOMETHING THAT IS IN IT. UH
TREMENDOUS TRANSITION. AND WE'LL
CONTINUE BEING TRANSITION OVER
THE NEXT 20 TO 30 YEARS. AND I
THINK IT'S JUST SUCH A CRUCIAL,
PIVOTAL TIME TO BE TALKING ABOUT
THINGS. AND I'M JUST DELIGHTED
THAT THE CHAIRMAN HAS YOU KNOW,
REALLY MADE THE EFFORT TO GET
ALL OF HIS COLLEAGUES INVOLVED
BECAUSE THIS TRULY AFFECTS THE
ENTIRE STATE OF CALIFORNIA. AND
DARE I SAY THE UNITED STATES AS
A WHOLE. SO I'M ENTHUSIASTIC
PARTICIPANT AND THANK YOU, MR
CHAIRMAN. THANK YOU VERY MUCH,
MR PAPIN. CAN YOU HEAR ME? GOOD
MORNING. IT'S STILL MORNING, SO
I'M DIANE PEPIN AND I REPRESENT
SAN MATEO COUNTY, HOME TO THE
SMALL BUT MIGHTY PORTAL REDWOOD
CITY. SO OUR PORTS MOSTLY DEALS
WITH RAW MATERIALS, BUT LEST YOU
THINK THEY'RE NOT IMPORTANT TO
OUR ECONOMY, THEY SERVE AS A LOT
OF WHAT IS NECESSARY FOR THE
HOME OF BIOTECH TO THIS WORLD,
AS WELL AS HOME TO A LOT OF TECH
COMPANIES. SO WHAT MAY BE SMALL
, CERTAINLY GETS USED IN WAYS
THAT AFFECT OUR ECONOMY ON A
VERY LARGE SCALE. UM SO YOU HAD
MY INTEREST WHEN YOU TALKED
ABOUT GRADE SEPARATIONS BECAUSE
THERE IS A RAIL LINE THAT RUNS
THROUGH THE SPINE OF MY
DISTRICT. THAT IS VERY
IMPORTANT. AND WE'RE LOOKING FOR
A LOT OF MONEY FOR RAILS. REAL
GRADE SEPARATION. UM MONEY,
ALTHOUGH YOU BROKE MY HEART WHEN
YOU SAID IT'S ALL OVER
SUBSCRIBED, BUT WE'LL WE'LL GET
THERE AT SOME POINT, AND I WANT
TO JOIN MY COLLEAGUES WITH
RESPECT TO THEIR COMMENTS ABOUT
THE ENVIRONMENTAL IMPACTS OF
PORTS. UM WE KNOW THAT THE
PROBLEM EXISTS. UM AND I AM. ONE
OF THOSE THAT REMAINS VERY
OPTIMISTIC AS IT RELATES TO
HYDROGEN AND WHAT THAT CAN DO
ABOUT TRUCKS THAT MIGHT BE
IDLING AT PORTS AND AFFECTING
THOSE COMMUNITIES OF COLOR THAT
MIGHT EXIST IN AND AROUND PORTS
. SO UM, HYDROGEN WAS MENTIONED
A COUPLE OF TIMES BY A FEW OF
YOU IN MY EARS ARE PERKING UP,
AND, UM I'M LOOKING FORWARD TO
SOME MORE DISCUSSIONS IN THAT
REGARD, BECAUSE I FEEL LIKE THE
DRAINAGE OF HIGH HYDROGEN IS
LIGHTER. AND IT DOESN'T TAKE AS
MUCH BATTERY FOR HEAVY TRUCKS.
SO UM, I'M INTERESTED. I WANT TO
THANK THE CHAIR FOR CONVENING
THIS AND THE ENORMOUS AMOUNT OF
WORK THAT WENT INTO BRINGING SO
MANY PARTIES TOGETHER. UM
PERCEPTION IMPORTANT TOPIC THAT
REALLY AFFECTS THE ECONOMY OF
OUR STATE AND THE STRENGTH OF
OUR STATE. AND MAKES IT LET'S
FACE IT THE FOURTH LARGEST
ECONOMY IN THE WORLD. SO THANK
YOU, AND I'M DELIGHTED TO BE
HERE. THANK YOU VERY MUCH ALL MY
COLLEAGUES FOR COMMENTS, AND
BEFORE WE ASK QUESTIONS, I JUST
SIMPLY WANT TO SAY BEFORE THEY
KNOW THE ROOM WASN'T FULL, UM,
DURING MY OPENING COMMENTS. I'M
NOT GOING TO REPEAT THEM, BUT I
WILL CALL TO YOUR ATTENTION. THE
WORK THAT'S AHEAD OF US. UM WE
WILL BE HAVING WE'RE GOING TO
TOUR ALL 12 PORTS. UM UM, THE
SELECT COMMITTEE WILL BE TOURING
ALL 11. EXCUSE ME, ALL 12 PORTS
IN THE STATE IN ORDER TO FOR US
TO GET A TRUE UNDERSTANDING
WHAT'S GOING ON? I THINK IT'S
IMPERATIVE THAT WE KNOW
FIRSTHAND TO TOUR TO SEE TO TALK
TO HAVE CONVERSATION TO VIEW
MEANT TO WALK ON. UM IN ORDER
FOR US TO BE ABLE TO DO THE WORK
THAT I THINK THAT WE'RE SETTING
OURSELVES UP TO DO. IN ADDITION
TO THAT, THE FIRST HEARING WE
WILL HAVE TO SELECT HEARINGS. UM
WE WILL HAVE ONE LOS ANGELES AND
THAT HAS ALREADY BEEN SCHEDULED
ON THE LOS ANGELES HEARING, UM,
IN THE PORTS OF LOS ANGELES WILL
TAKE PLACE. EXCUSE ME. SEPTEMBER
THE 26TH. MY TEAM IS PASSING OUT
FLYERS THAT BEARS THE DATES AND
THE TIMES AND LOCATION. SO
SEPTEMBER THE 26TH FROM 10 AM TO
TWO PM ON SEPTEMBER THE 26TH THE
PORTS OF LOS ANGELES, AFTER
WHICH WE WILL BE WE WILL TRAVEL
. UM ON NOVEMBER, THE SECOND TO
THE PORTS OF OAKLAND. UM IMPORT
OF OAKLAND WILL BE HOSTING US,
WE THAT WE WILL CONVENE AT 10
O'CLOCK IN THE MORNING. 10 TO 2
O'CLOCK PM AND IN ADDITION TO
THAT WE ARE FORMULATING, UM AND
GETTING DATES FOR ALL 12 PORTS.
AND ONCE WE IDENTIFY A DATE AND
TIME AND LOCATION, UM WE THANK
THOSE PORTS FOR HOSTING US. THIS
SELECT COMMITTEE WILL BE IN FACT
, BE BUSY BECAUSE THE WHOLE GOAL
IS NOT TO JUST MEET BECAUSE I
HATE MEETINGS JUST TO MEET I
HAVE TO HAVE MEETINGS THAT NET
REAL RESULTS MOVING FORWARD
BECAUSE I DON'T WANT TO WASTE
YOUR TIME AND I CAN'T GET TIME
BACK. SO WITH THAT BEING SAID,
OUR GOAL IS TO COME OUT OF THESE
. UM NOW, THESE TWO HEARINGS, UM
AND ALSO VIEWING AND TOURING OF
12 PORTS IS TO COME OUT WITH A
LEGISLATIVE WHITE PAPER SELECT
COMMITTEE WHITE PAPER THAT WILL
GO TO THE ADMINISTRATION, THE
GOVERNOR'S OFFICE. AND TO EACH,
UH, OFFICE, UM, HERE, MIXING UP
THE SENATE AS WELL AS THE
ASSEMBLY SO THAT YOU WILL
UNDERSTAND THE CHALLENGES THAT
MEETS IN THAT FACES. THE PORTS
ARE MOVING FORWARD AND ALSO HOPE
TO MAKE SURE THAT WE PRIORITIZE
AS WE LOOK AT OUR BUDGET EACH
AND EVERY YEAR THAT WE PROBABLY
PRIORITIZE OUR UM, BUDGET TO
INCLUDE THE PORTS TO MAKING SURE
THAT WE CONTINUE TO BE THE
FOURTH LARGEST ECONOMY IN THE
WORLD. OR THE FIFTH, YOU KNOW,
DEPENDS ON WHO YOU'RE ASKING IS
THE FOURTH OF THE FIFTH BUT UM,
AND SO WE'VE ASKED AGAIN, THE
STAFFS OF THE SELECT MEMBERS TO
BE WITH US TO TAKE COPIOUS NOTES
BECAUSE YOUR NOTES OR WE'RE
GONNA IT'S GONNA BE USED TO HELP
US. CREATE THE WHITE PAPER
THAT'S NECESSARY MOVING FORWARD.
SO WITH THAT BEING SAID, I HAVE
THE FIRST QUESTION AND I THINK
THIS THIS QUESTION IS TO GO BIZ
AND THE IS THE ADMINISTRATION IN
COMMUNICATION WITH THE PURPORT
TO HELP EASE THE TRANSITION TO
RENEWABLE ENERGY, AND SO THAT I
HAVE ANOTHER QUESTION AFTER THAT
QUESTION. IF YOU CAN. PLEASE
ENLIGHTEN US. AND THEN I'LL
OFFER UP MY COLLEAGUES ASK
QUESTIONS OF THE PANEL AS WELL.
UH THANK YOU FOR THE QUESTION.
THE ANSWER IS YES. AND I SAY
THAT COMES IN SEVERAL FORMS. THE
FIRST I WOULD SAY IS, IT'S NOT
JUST OUR OFFICE WHO SERVES US IN
THIS ROLE. IT'S OUR OTHER
AGENCIES AS WELL AND STATE
DEPARTMENTS. AND ALSO, I WOULD
SAY LOCAL BODIES. IT WAS
MENTIONED AIR DISTRICTS. UM AS
WELL AS YOU KNOW, METROPOLITAN
PLANNING ORGANIZATIONS AND THE
LIKE. IT'S REALLY A COLLECTIVE
TEAM EFFORT BECAUSE THIS IS
WE'RE CHANGING THE ENTIRE
DYNAMIC OF HOW WE DO EVERYTHING
IN TERMS OF TRANSPORTATION
ELECTRIFICATION. THE LIKES OUR
OFFICE HERE AT GLOBE IS WE HAVE
PLAYED A VERY ACTIVE ROLE IN THE
BUSINESS COMMUNITY AND WORKING
WITH THE SPECIFIC ASSOCIATIONS.
FOR EXAMPLE, JUST A FEW WEEKS
AGO I JUST PRESENTED TO THE
ASSOCIATION REPRESENTING ALL OF
THE TUGBOATS. ON DIFFERENT
VARIOUS INCENTIVES THAT THEY CAN
USE. IN ADDITION TO THOSE THAT
ARE, UM YOU KNOW, KIND OF SLATED
FOR PRESENT EXACTLY CLEAN
TECHNOLOGIES. THERE'S A LOT OF
INCENTIVES THAT EXIST OUT THERE
FOR BUSINESS. GENERALLY THAT'S
REALLY WHERE OFFICES STRENGTH IS
AS IDENTIFYING THEM AND GETTING
FOLKS AND BUSINESSES TO THOSE
WHEN THEY NEED THEM. WE SPEND A
LOT OF THAT TIME WITH THE TRUCK
AND COMMUNITY WE PUBLISH AND
KEEP UPDATED, A CALIFORNIA
TRUCKING INCENTIVE GUIDE. IT'S A
VERY UNIQUE UTILIZED THAT'S
ACTUALLY PROBABLY ONE OF THE
MOST UTILIZED RESOURCES IN OUR
OFFICE THAT WE GET PHONE CALLS
ABOUT. IT'S ALSO IN SPANISH AND
PUNJABI AS WELL AND THAT
RESOURCE JUST LINE BY LINE
EXISTS. ALL THE INCENTIVES OVER
THREE DOZEN INCENTIVES THAT IN
THE STATE OF CALIFORNIA THAT
TRUCKERS CAN UTILIZE, BOTH FOR
FLEET OWNERS. BUT ALSO FOR
INDIVIDUAL TRUCKERS THEMSELVES
IN A SMALL BUSINESS, SO IT'S
BRINGING EVERY RESOURCE TO THE
CAPITAL SACK TO HELP FOLKS WITH
THIS TRANSITION, AND, UM, I
WOULD ALSO MENTION THAT YOU KNOW
, ACROSS OUR OFFICE WERE ALWAYS
SPEAKING WITH LARGE FIRMS AND
THOSE WHO ARE THINKING TO DO
THESE INVESTMENTS IN CALIFORNIA
TO BUILD THE ELECTRIC VEHICLE
HEAVY DUTY CHARGING STATION NEAR
THE PORTS. AND I THINK THAT A
LOT OF STATE AGENCIES ALL OF US
ARE SEEN AND I THINK FOLKS
ACROSS SUPPLY CHAIN GOODS
MOVEMENT, IT SEEMS IT SEEMS LIKE
EVERY ONE OR TWO MONTHS WE SEE A
NEWS ANNOUNCEMENT THAT X Y Z IS
BUILDING THE LARGEST HEAVY DUTY
ELECTRIC CHARGING STATION IN THE
UNITED STATES AT THIS POINT UM,
AND THAT'S BECAUSE, YOU KNOW, WE
SPEAK WITH A LOT OF THOSE LARGE
FIRMS AND HAVING THEM NAVIGATE
LARGER INCENTIVES TO MAKE SURE
THAT THEY MAKE THOSE INVESTMENTS
AND RETAIN THOSE INVESTMENTS IN
CALIFORNIA, AND THOSE ARE
THROUGH PROGRAMS SUCH AS
CALIFORNIA COMPETES THE FULL
SALES TAX EXCLUSION THAT EXISTS
AT THE TREASURER'S OFFICE. AND
OF COURSE, OUR LENDING CAPACITY
AND PROGRAMS. SO OUR OUR OFFICE
IS VERY MUCH AT THE FOREFRONT OF
THIS WORK AND TRYING TO MAKE
SURE THAT THOSE IN THE BUSINESS
COMMUNITY UNDERSTAND WHAT'S OUT
THERE AND CAN HELP THEM. AND UM,
ALSO WITH, UM, YOU KNOW, WORKING
WITH DIRECTLY WITH STATE
AGENCIES IN THEIR PROGRAMS AS
WELL. THANK YOU VERY MUCH. HOW
DOES THE ADMINISTRATION TAKE? UM
INTO CONSIDERATION THE NEED OF
ALL INDUSTRIES, TRUCKING TRAINS
AND ALSO, UM, SHIPS WHEN SETTING
THE CLIMATE OBJECTIVES BECAUSE
YOU KNOW, AS WE LOOK AS WE MOVE
INTO THIS WHOLE WORLD OF NEW
TECHNOLOGY AND TRYING TO MAKING
SURE THAT OUR ENVIRONMENT IS
SAFE AND CLEAN. WE ALSO NEED TO
LOOK IN A VERY THOUGHTFUL WAY TO
MAKING SURE THAT IT'S REASONABLE
AS RELATES TO, UM PUTTING THINGS
ONLINE, ESPECIALLY THE
TECHNOLOGY HAS BEEN EVEN
CREATED. RIGHT UM, I'M REMINDED
OF, YOU KNOW ELLEN MÁS WHEN HE
HAS NO DEGREES IN THIS, BUT HE
HAD A VISION AND HE HAD IDEALS.
SO HE SURROUNDED HIMSELF, BUT IT
TOOK TIME IN ORDER TO MAKE
ELECTRIFICATION OF THAT, AND I
HEAR A LOT THAT WE NEED TIME
BECAUSE OF TECHNOLOGY HASN'T
EVEN BEEN DESIGNED. BUT THE
MANDATE IS THERE. SO CAN YOU
TALK ABOUT YOU KNOW ONE LIFTING
UP THE NEEDS OF THE TRUCKS,
TRAINS, SHIPS AND SETTING OF
CLIMATE GOALS AND OBJECTIVES.
DOES THAT MAKE SENSE? YES IT
DOES. I'D SAY THAT. YOU KNOW, WE
DO HAVE THESE AMBITIOUS CLIMATE
GOALS THAT ARE AT THE HELM OF
WHAT WE DO IN STATE GOVERNMENT.
IT'S MENTIONED. I THINK MANY
FOLKS MENTIONED HERE ABOUT YOU
KNOW THE IMPACTS OF POLLUTION ON
COMMUNITIES AND HOW PROFOUND IT
HAS BEEN FOR DECADES. UM IT IS.
IT IS NOTED AND AT THE COMMUNITY
LEVEL, AND I THINK IT'S VERY
IMPORTANT TO KEEP THAT IN FRAME
IN MIND AND UNDERSTANDING THAT
BALANCE THAT EXISTS BETWEEN
ADOPTING NEW, INNOVATIVE
TECHNOLOGIES AND MEETING THIS
MOMENT WITHIN CLIMATE CHANGE
THAT WE HAVE TO MEET. OUR
OBJECTIVE IS TO DE RISK THAT AS
MUCH AS POSSIBLE. AND UM, YOU
KNOW, BALANCE MAKING THIS
BALANCE IS IT'S WHY IT'S WE
BUILD SOME OF THESE INCENTIVE
RESOURCES THAT ARE BRINGING
NONTRADITIONAL INCENTIVES IN THE
SPACE OF THIS TRANS TRANSITION
TO HELP COVER THAT GAP, D
RISKING AND SHOWING THAT IT'S
POSSIBLE TO USE DIFFERENT THINGS
AND TOOLS IN DIFFERENT WAYS. UM
AND LASTLY, I'D SAY YOU KNOW THE
MARKET ITSELF. IT'S WE'VE SEEN
THIS IN MANY OTHER SPACES IN THE
CLEAN SECTOR. UM BUT IT'S THE
BALANCE OF INCENTIVES, BUT THEN
ALSO THE CARROT AND STICK OF
HAVING THE YOU KNOW THE GOAL AND
AMBITION TO HAVE THE MARKET SEE
THE OPPORTUNITY WITH THAT. IT'S
MENTIONED HYDROGEN HERE SEVERAL
TIMES. I KNOW THAT A FOLKS A LOT
OF FOLKS, REMEMBER, YOU KNOW,
HYDROGEN USED TO HAVE HUGE
CHALLENGES AND KIND OF THE
MARKET. BUT A LOT OF THAT HAS
CHANGED IN THE LAST SEVERAL
YEARS THAT USED TO BE JUST JAPAN
AND CALIFORNIA. YOU KNOW, THE
WAR IN UKRAINE NOW, YOU KNOW,
EUROPE IS VERY AMBITIOUS ON HIGH
HYDROGEN TO AND HAVING THESE
OTHER MARKETS COME TO BEAR AND
BRINGING IT IN WELL D RISK AND
LOWER COSTS ACROSS THE BOARD. I
THINK THAT THIS LAST YEAR IS
WHERE WE'RE REALLY SEEING THAT
ACCELERATING. HAVING SO ALREADY
THE FASTEST AND HYDROGEN IS A
GREAT EXAMPLE. UM BUT ALSO IN
SPACES LIKE CRITICAL MINERAL
SUPPLY CHAIN RIGHT TO BUILD ALL
THE BATTERIES AND TECHNOLOGIES
NECESSARY. WE ARE ADVANCING THE
LARGEST CRITICAL MINERAL
RESOURCES WITHIN THE UNITED
STATES. WE HAVE WE NOW PROVIDE
15% OF THE WORLD RARE EARTHS
SUPPLY IN THE LAST FIVE YEARS
AND THE ONLY FACILITY IN WESTERN
HEMISPHERE FOR MAGNETS NECESSARY
FOR ALL CLEAN TECHNOLOGIES.
DEVELOPING THE LARGEST LITHIUM
RESOURCE PROJECTED WITHIN THE
UNITED STATES. OF COURSE, SOME
OF THESE TIMES AND TIMELINES MAY
NOT BE SO IN SYNC, BUT IT'S
WORKING IN EVERY SINGLE SPACE TO
DE RISK THAT TIMELINE PARALLEL
TO WHAT OUR GOALS AND NEEDS ARE
AND DOING IT IN A MANNER
CONSTRUCTIVELY. SO I'LL SAY THAT
WE'RE ROLLING OUT EVERY SINGLE
RESOURCE THAT WE CAN TO FIND A
WAY TO DO THAT THE RISK INTO
MEETING THAT DEMAND THAT YOU HAD
MENTIONED THANK YOU VERY MUCH,
MR FONG. THANK YOU, MR CHAIR. UM
I WANTED TO KIND OF DELVE INTO
SOMETHING VERY SPECIFIC. UM,
CERTAINLY IN IN IN LAST
HEARINGS, UM UM, YOU KNOW, WE'VE
TALKED ABOUT THE FACT THAT THERE
ARE SO MANY DIFFERENT AGENCIES,
BOTH ON THE ON THE STATE SIDE
AND ON THE LOOK ON THE LOCAL
LEVEL THAT IMPACT THE SUPPLY
CHAIN, AND THERE WAS A
BIPARTISAN EFFORT ON THE SENATE
SIDE AS WELL AS MYSELF TRYING TO
GET A SUPPLY CHAIN COORDINATOR
TO KIND OF PROTECT, UM, SUPPLY
CHAIN FROM FROM THOSE TYPES OF
ENCROACHMENT, AND THAT COULD
IMPACT VOLUMES AND OPERATIONS.
AND NOW THAT WE HAVE THIS
WORKING GROUP THAT YOU LIED, I
DID WANT TO KIND OF ASK. THE
SPECIFIC QUESTION. I DID READ
THE JUNE 30TH REPORT FROM UM
FROM PMS. A AND THEY HEADLINE
WAS CARGO VOLUME CAP FOR LOS
ANGELES SLASH LONG BEACH
QUESTION, MARK AND THERE I
BELIEVE, IS A SOUTH COAST ERA
DISTRICT IS MOVING FORWARD WITH
THE PROPOSED RULE. AND IF I MAY
READ, IT SAYS IF ENACTED, IT MAY
CAP CARGO THROUGH THROUGHPUT AT
THE PORTS OF LONG BEACH AND LOS
ANGELES. AND THEN IT GOES
THROUGH AND SAYS THAT IS
CONCERNING IS THIS RULE IS IT
SHOULD NOT BE VIEWED IN
ISOLATION. THERE ARE A NUMBER OF
OTHER MEASURES, AND IT GOES
THROUGH A LITANY OF OTHER RULES
, AND IT CONCLUDES BY SAYING
THAT THIS IS ON TOP OF RULES,
WHICH WILL ALREADY ADD IMMENSE
COSTS WHILE FURTHER INCREASING
INSTABILITY AND UNCERTAINTY.
MORE STRINGENT SHORT POWER
REQUIREMENTS NUTEC REPLACEMENT
REQUIREMENTS IN 2030 GOALS FOR
ZERO EMISSION CARGO HANDLING
EQUIPMENT THAT DOESN'T EXIST AND
HAS NO SUPPORTING
INFRASTRUCTURE. THIS IS VERY
CONCERNING AS I READ THIS REPORT
FROM THE MERCHANTS, SO I GUESS
MAYBE MY QUESTION TOO. EXTRA OR
TWO TO GO VISIT IS HOW DO YOU
BALANCE THAT? BECAUSE IF THEY
ARE YOU GUYS TRACKING THIS RULE
ARE YOU AWARE OF ITS IMPACT? I
MEAN, A CARGO KAPPA VOLUME CAP
IN LOS ANGELES AND LONG BEACH,
AS MY COLLEAGUES HAVE MENTIONED
WOULD BE SEVERELY DETRIMENTAL TO
NOT ONLY THE TRADE CORRIDORS BUT
ALSO MAINTAINING OUR LEADERSHIP
IN IN GOODS MOVEMENT. SURE
THANKS FOR SHARING SHARING THAT
AND WE ARE AWARE AND IN FACT,
SOME OF US SHARED PMS A CZAR
TICKLE AROUND. SO REALLY
APPRECIATE P IN THE SAME, UM
SHARING INFORMATION WITH US. AND
I WOULD JUST MENTION THAT TRADE
AND NOTED WE HAVE AN INTERAGENCY
, UM, WORKING GROUP. AND I THINK
WE'VE BEEN MEETING FOR ABOUT
EIGHT YEARS NOW. WITH THE
DEVELOPMENT OF THE SUSTAINABLE,
AFRAID ACTION PLAN. I THINK ONE
OF THE BENEFITS OF THAT IS WHEN
, WHEN CALISTO OR GO BIZ OR
OTHER, UM STATE AGENCIES OR
ENTITIES OR THE PORTS BRING TO
US SUCH, UH. AND AN ISSUE LIKE
THAT. WELL, WHAT WE DO IS TRY TO
RAISE IT WITH OUR SISTER STATE
AGENCIES. SO CALIFORNIA AIR
RESOURCES BOARD SETS MANY OF THE
REGULATIONS ON THEIR EQUALITY IN
THE IN THE FREIGHT INDUSTRY. SO
WHAT WE TRY TO DO IS JUST BRING
THE INDUSTRY CONCERNS FORWARD TO
OUR WORKING GROUP. AND JUST TRY
TO NOTE AND EDUCATE EACH OTHER
ON ON SOME OF THESE ISSUES, AND
OF COURSE, WE DEFER TO A CARB
FOR SETTING THOSE REGULATIONS
AND THEN THE LOCAL, UM UM, AIR
DISTRICTS, OF COURSE ON THAT,
BUT THAT'S SOMETHING THAT WE DO
CLOSELY MONITOR AND MAKE SURE
THAT WE UNDERSTAND THE ISSUES
AND. AND TRY TO WORK WITH WITH
THE INDUSTRY TO FIGURE OUT SOME
OF THE SOLUTIONS THROUGH THAT,
SO I THINK THAT WORKING GROUP IS
REALLY IMPORTANT AND JUST TO
GIVE AN EXAMPLE I THINK IN THE
LAST QUESTION THAT WE CAN
CALTRANS AND CALISTA
COMMISSIONER STATEWIDE TRUCK
PARKING STUDY. AND YOU WOULDN'T
THINK THAT THAT HAD A CONNECTION
TO THE ZERO MISSIONS, BUT WE
ENDED UP GOING THROUGH THAT
STUDY AND FIGURING OUT WE HAVE A
5500 SPACE SHORTAGE IN
CALIFORNIA AT PEAK TRUCK PARKING
OUR WHICH IS MIDNIGHT TO 1 A.M.
A LOT OF TIMES WHEN PEOPLE ARE
SLEEPING, SO THEY DON'T SEE THE
SITUATION OF PARTS TRUCKS, BUT
20,000 TRUCKS ARE PARKED ALONG
THE ROADS EVERY DAY. SO YOU HAVE
TO THINK ABOUT WHERE THOSE
TRUCKS GOING TO PARK IN CHARGE
BECAUSE YOU HAVE TO PART PART
FOR LONG PERIODS OF TIME. SO
THROUGH OUR OUR STUDY. WE WORKED
WITH ENERGY COMMISSION. THEY
USED OUR DATA TO DO A LOT OF
MODELING. UM, AIR RESOURCES
BOARD'S BEEN VERY ENGAGED IN THE
TRUCK PARKING AND WE BROUGHT THE
INDUSTRY. I'M GONNA INTERRUPT.
CERTAINLY MY COLLEAGUES HERE
REPRESENT THE PORTS OF LOS
ANGELES AND LONG BEACH, SO I SO
THEY MAY FOLLOW UP, BUT I DID
WANT TO SPECIFICALLY COMMENT,
ASKED FOR A COMMENT ON THIS
PARTICULAR SOURCE. SURE THE IF
THIS IF THIS RULE WERE PUT IN
PLACE, ACCORDING TO THE
MERCHANTS, AND TO THE SUPPORTS
INTO THE TO THE TERMINALS. IT
WOULD CAP CARGO THROUGHPUT
THROUGH THE PORTS OF LONG BEACH
AND LOS ANGELES, WHICH HAS
HIGHLIGHTED BEFORE IS 40. OF THE
GOODS AND PRODUCTS COMING INTO
THE INTO CALIFORNIA AND THE
UNITED STATES. SO WHAT IN
PARTICULAR IS YOU'RE WORKING
GROUP DOING TO ADDRESS THAT
CONCERN? OF THIS LAYERED ON TOP
OF THESE OTHER SOURCES, WHETHER
IT'S COMING FROM FROM THE AIR
DISTRICT WHETHER IT'S COMING
FROM CARB, UM YOU KNOW, AS THE
CONCLUSION IS PRETTY IS PRETTY,
WHICH IS THAT THAT IT'S GOING TO
FURTHER INCREASE INSTABILITY AND
UNCERTAINTY IN OUR SUPPLY CHAIN,
ADDING IMMENSE COSTS. WHAT IS
THE WORKING GROUP DOING? WELL I
THINK SINCE WE'RE AT THE STATE
LEVEL, IT IS DIFFICULT WHEN YOU
HAVE TO BALANCE THE LOCAL LEVEL
ISSUES AND IN THE SOUTH COAST
AIR QUALITY MANAGEMENT DISTRICT
DOES HAVE THAT AT THAT AUTONOMY.
SO IT IS A LITTLE BIT
CHALLENGING FOR OUR AGENCIES
THAT DON'T HAVE THAT AUTHORITY
TO STEP IN. SO IT'S JUST MORE OF
AN EDUCATION PROCESS, AT LEAST
FOR CALISTA. WELL AND THIS IS
BEFORE YOUR TIME, SO I'M NOT
GONNA I'M NOT GONNA LAYER THIS
ON. BUT FOR THOSE OF US WHO WERE
HERE FOR THE LAST HEARINGS, WE
HAD THIS HUGE DEBATE. YOU MAY
HAVE BEEN THERE. ON WHO THE LEAD
AGENCY WAS WHO WAS GOING TO BE
THE LEAD AGENCY THAT WOULD THAT
WOULD ENSURE AND PROTECT THE
SUPPLY CHAIN. SOME PEOPLE WANT
TO GO BIZ. SOME PEOPLE WANT A
COW STRA, AND IT WAS CONCLUDED
IN THE LAST HEARING THAT YOUR
AGENCY THE CALIFORNIA STATE
TRANSPORTATION AGENCY, WAS THE
LEAD AGENCY. SO. UNDERSTANDING
THAT BECAUSE IT WAS COMING FROM
YOUR AGENCY. THAT DEFERRING TO
OTHER AGENCIES. MAYBE THEY MAY
SOUND NICE, BUT WHEN IT COMES TO
LIKE, ACTUALLY PROTECTING THE
SUPPLY CHAIN YOU'RE IT? YEAH
STOPS WITH YOU RIGHT? SO IF
THERE IS A PROPOSED RULE THAT
WOULD THAT WOULD POTENTIALLY
IMPOSE A VOLUME CAP. IN THE IN
THE TWO LARGEST PORTS IN IN IN
CALIFORNIA, THAT'S 40% OF THE
GOODS AND PRODUCTS INTO THE
COUNTRY INTO THE UNITED STATES
OF AMERICA, RIGHT? I WOULD HOPE
THAT YOUR AGENCY WHICH IS DEEMED
BY YOU THE LEAD AGENCY THAT
PROTECTS ABOUT CHAIN WOULD HAVE
THIS AS YOUR TOP PRIORITY.
BECAUSE THIS IS LIKE THIS IS
JUNE 30TH. THIS WAS THE LATEST
REPORT TO KEEP KEEP KEEP
CALIFORNIA AND OUR PARTS
COMPETITIVE, WHICH IS OTHER
PORTS YOU MENTIONED. THAT
SOMEHOW THAT THERE WAS FEAR OF
SOME OF THOSE GOODS GOING TO THE
GULF COAST AND SOME OF THOSE
RETURNING, BUT IF THERE'S A
VOLUME CAP FOR THROUGHPUT IN
THROUGH THE PORTS OF LOS ANGELES
AND LONG BEACH, RIGHT. WE HAVE A
SIGNIFICANT COMPARATIVE COMPARED
TO THIS ISSUE THAT I HOPE THAT
THE WORKING GROUP HAS
PRIORITIZED. SO UM, YOU KNOW, I
KNOW THAT YOU'RE KIND OF NEW TO
THIS POSITION. BUT AT THE END OF
THE DAY LIKE THIS IS THE THIS IS
A MAJOR LIKE EXISTENTIAL.
SITUATION NEXT IS A THREAT TO
CALIFORNIA. IF THERE IS SOMEHOW
GOING TO BE AN INDIRECT RULE
IMPOSED BY A NON STATE AGENCY
THAT WOULD SOMEHOW IMPACT THESE
THE OPERATIONS OF THE TWO
LARGEST PORTS IN CALIFORNIA. AND
JUST WANT TO GIVE YOU A CHANCE
TO RESPOND TO THAT. OH YEAH,
SURE, THAT WOULD DEFINITELY BE
SIGNIFICANT AND THE IMPACTS OF
IT COULD BE QUITE LARGE. SO IT
IS SOMETHING THAT WE'RE TAKING
VERY SERIOUSLY AND AGAIN. WE ARE
WE ARE CONVENING AND WILL BE
WORKING WITH ALL OF YOU TO TRY
TO FIGURE OUT A GOOD SOLUTION
THAT DOESN'T IMPACT. OUR
BUSINESSES AND ALSO, UM, OUR
WORKFORCE, BUT ALSO IMPROVING
AIR QUALITY IS IMPORTANT GOAL. I
WOULD SAY 11 THING THAT WE HAVE
DONE. WE DID AWARD SOUTH COAST
QUALITY MANAGEMENT DISTRICT.
SIGNIFICANT AWARD TO HELP. UM
WITH 376 CHARGING INFRASTRUCTURE
, UH, FACILITIES AROUND AT SEVEN
DIFFERENT LOCATIONS IN THE SOUTH
COAST AIR QUALITY DISTRICT AND
THEN 17 HYDROGEN FUELING
DISPENSERS. WHAT'S A NEW BATTERY
ELECTRIC LOCOMOTIVE? UM. UH IT
WAS BECAUSE IT'S RIGHT TO DO. I
THINK YOU'RE TRYING TO SPIN ME A
LITTLE BIT. BUT HERE'S THE
THING. SOUTH COAST IS IMPOSING
THIS RULE. YOU'RE GIVING SOUTH
COAST SOME MORE MONEY TO PUT
MORE RESTRICTIONS ON THE ON THE
PORTS DOES NOT GIVE ME ANY
INSURANCE THAT WE HAVE A REALLY
SECURE SUPPLY CHAIN MOVING
FORWARD. SO YOU SEE WHAT I MEAN
? NOT NOT THAT WE'RE GIVING FOR
RESTRICTION, RIGHT? AND JUST
SAYING WE'RE HOPE TRYING TO HELP
WITH THE SITUATION OF AVOIDING
ANY KIND OF I GOT IT. I GOT IT,
BUT I'M ASKING YOU ABOUT A
SPECIFIC RULE THAT WAS WRITTEN
BY THE MERCHANTS. THAT WAS THAT
CAME OUT IN JUNE. 30TH I DON'T
KNOW IF GÓMEZ WANTS TO RESPOND,
BUT I'LL JUST SAY THAT IT'S NOT
TRADITIONAL. I THINK FOR STATE
AGENCIES TO INTERJECT, AND
THERE'S A LOT OF PROPOSED RULES
THAT WE HEAR ACROSS SUPPLY CHAIN
ALL THE TIME. I THINK THE
DIFFERENCE NOW IN BETWEEN NOW
AND A FEW YEARS AGO, AND MAYBE
HEARING PROPOSED THINGS IN
FREIGHT AND GOODS MOVEMENT
SUPPLY CHAIN IS IN THIS TIME.
THE STATE OF CALIFORNIA,
INCLUDING THE LEGISLATURE AND
THE GOVERNOR ARE PUTTING $1.5
BILLION IN SUPPLY CHAIN, THE
LARGEST STATE INVESTMENT THE
NATION TO MAKE THAT INVESTMENT
SHOWS THAT WE ARE SUPPORTING AND
BUILDING OUT THE INFRASTRUCTURE
TO FACILITATE THE GOODS THAT ARE
NECESSARY TO SERVE THE NATION.
UM I THINK THAT THAT'S THAT'S
REALLY DIFFERENT. I THINK THAT A
LOT OF THE LOCAL STAKEHOLDERS
AND AGENCIES AND DEPARTMENTS ARE
RECOGNIZING THAT ARE COGNIZANT
OF THE FACT THAT WE ARE MAKING
THESE INVESTMENTS AS THE STATE
OF CALIFORNIA. SO ARE YOU AWARE
OF THIS INDIRECT RULE? YES YES,
FOR IT. I'M NOT. NO I'M NOT. I'M
NOT FOR THIS. I'M NOT FOR I
DON'T UNDERSTAND THE RULE. BUT
YOU KNOW, IT'S NOT SOMETHING
THAT I CAN EVEN WE CAN EVEN
ADDRESS RIGHT. IT'S AT THE LOCAL
LEVEL. UH SO LOCAL AGENCIES AND
AUTHORITIES IN CALIFORNIA HAVE
IMMEDIATELY WAYS TO MAKE YOU
KNOW, PROPOSED RULES AND GO
FORTH WITH THEM, BUT I
UNDERSTAND THE BUSINESS
COMMUNITY IS CONCERNED, AND IT'S
ERIC MENTIONED IT EARLIER. IT'S
IMPORTANT TO THOSE, ESPECIALLY
THOSE WHO ARE HERE. KEEP SHARING
THESE WITH US SO THAT WE CAN
WORK WITH THE STAKEHOLDERS AT
THOSE LEVELS TO UNDERSTAND THAT
WE AS A STATE OR MAKING THESE
LARGE INVESTMENTS IN SUPPLY
CHAIN AND I WANT TO COMPLIMENT
THE WORK OF GO BED. CERTAINLY
THE WORK YOU'VE DONE TO MAKE
INVESTMENTS. I I'M JUST
HIGHLIGHTING THIS SERIOUS
CONCERN FROM FROM FROM MY
CONSTITUENTS, WHO, OF COURSE,
HAVE A LOT OF GOODS AND PRODUCTS
THAT GO TO THESE TWO PORTS
REPRESENTED BY THESE TO FIND
INDIVIDUALS, AND THESE THIS TYPE
OF RULE THAT I MEAN IT HAS, I
MEAN, SERIOUS, SERIOUS
IMPLICATIONS TO OUR STATE AND TO
OUR SUPPLY CHAIN. AND SO AS WE
TALK ABOUT ALL THESE INVESTMENTS
, RIGHT, ALL THESE INVESTMENTS
ARE FOR NOT IF SOMEHOW WE CAN'T
MOVE VOLUME THROUGH THE PORTS,
AND SO I JUST WANTED TO. I MEAN
, I'M TRYING TO IMPOSE A KIND OF
A SENSE OF URGENCY WHEN IT COMES
TO THIS, AND I HOPE I HOPE YOU
SHARE THAT. THANK YOU VERY MUCH.
WELL THANK YOU VERY MUCH. I WANT
TO THANK MY COLLEAGUE FOR
ELEVATING THAT QUESTION, BECAUSE
IT'S UM WE NEED TO KNOW WHO'S ON
PERSON WHO'S ON SECOND. WE ALSO
NEED TO MAKE SURE THAT WHO HAS
OVERSIGHT. UM AND I SUPPORT
LOCAL CONTROL. UM BUT WE ALSO
KNOW THAT THE LEGISLATURE IS THE
LEGISLATURE. WE SAID POLICY. UM
AND THROUGH THAT THE GOVERNOR
MAKES APPOINTMENTS. UM WE HAVE
THE FACTS. YOU KNOW, THE
SECRETARY OF TRANSPORTATION. WE
CAN WE CANNOT HAVE LOCAL
GOVERNMENT IN THIS REGARD TO
PLACE A CAP ON THE VOLUME. UM OF
OUR PORTS BECAUSE WHAT THAT WILL
DO IS CAUSE OUR PORTS TO BE
CRIPPLED, WILL BE PARALYZED. WE
WON'T BE ABLE TO MEET THE SUPPLY
AND THE DEMAND, UM, THAT THE
CONSUMERS, UM ARE ASKING FOR AND
IF THEY CAN'T GET WHAT THEY'RE
ASKING, FOR, THEY'RE NOT GOING
TO BE ABLE TO SPEND MONEY AND
THEREFORE IT JEOPARDIZE. ARE
PUTTING AS RELATES TO THE FOURTH
WORLD, LARGE ECONOMY, UM IN THE
COUNTRY, AND SO I THINK THAT WE
NEED TO TEASE OUT. UM AND WE
NEED TO HAVE FURTHER
CONVERSATION. UM IN TERMS OF WHO
HAS OVERSIGHT AND MAKING SURE
THAT PEOPLE'S AUTHORITY DOES NOT
, UM JEOPARDIZE. UM CALIFORNIA
MOVING FORWARD IN A VERY ROBUST,
UM, WAY AND SO I THINK WE NEED
TO HAVE A FURTHER CONVERSATION
WITH RESPECT TO THAT. UM I WANT
TO GIVE MY OTHER COLLEAGUES A
CHANCE TO ASK THE QUESTION. UM
JUST JUST ONE QUICK QUESTION
BECAUSE THE POWER OF THE PURSE
REALLY SEEMS TO COME FROM THE
STATE. AND SO I'M JUST
WONDERING. WELL, YOU MAY NOT
TACKLE THE COMPLETE PROBLEM OR
OR MEET THE REQUIREMENTS OF THE
LOCALITIES. I'M WONDERING IF THE
MONEY WE SPEND YOU GET SOME
CREDIT FOR MEETING IT PARTIALLY
, TO THE EXTENT THAT YOU CAN
RATHER THAN THIS HEAVY DUTY
HAMMER OF A CAP COMING DOWN, AND
YET YOU'RE THE ONE SPENDING THE
MONEY ON IT. SO AS WE GO FORWARD
CHAIR, UH, IT'S SOMETHING WE
MIGHT WANT TO LOOK AT. BECAUSE
THE POWER OF THE PURSE COMES
FROM STATE OF CALIFORNIA, RIGHT?
YOU MAY WANT TO THINK ABOUT HOW
THAT MIXES WITH LOCAL
REGULATIONS AND BEING SUBJECT TO
THEM OR GETTING SOME REPRIEVE.
TEMPORARILY WHILE YOU'RE STILL
BUILDING OUT ALL OF THOSE GOOD
THINGS. THE FIRST THING YOU
OPENED UP WITH IS SEEMS LIKE
THIS IS ALL A FUNCTION OF TIME.
SO ANY EVENT THAT'S MY TWO
CENTS, NOT A QUESTION. JUST A
COMMENT. THANK YOU VERY MUCH. UM
I DO HAVE A REAL QUICK QUESTION
FOR THE L. A OFFICE REPORTED
FROM 2022 THAT REFERS TO, UH,
THERE IS A SECTION RELATED TO
FEDERAL FUNDS. HISTORICALLY THE
WEST COAST PORTS HAVE RECEIVED
FAR LESS FEDERAL FEDERAL FUNDS
AND THEN THE EAST COAST PORTS.
IS THERE SOMETHING UM, OUR
INDUSTRY OR THE LEGISLATURE CAN
DO TO BECOME TO BECOME MORE
COMPETITIVE TO RECEIVE THESE
GRANTS, BECAUSE AGAIN THE WEST
COAST IS SUCH A LARGE, UM, AREA
AND THERE ARE DEMANDS ARE
EXTREMELY HIGH, BUT YET WE
RECEIVE LESS FEDERAL FUNDING,
BECAUSE IF YOU CAN COMMENT ON
THAT BRIEFLY BECAUSE WE WANT TO
BRING UP THE NEXT PANEL THANK
YOU, MR CHAIR, AND I THINK I
WILL ALSO DIFFER TO SOME OF MY
COLLEAGUES HERE ON THE PANEL WHO
MAY BE MORE FAMILIAR. I THINK
ONE DISTINCTION ON FEDERAL
FUNDS. IT'S IMPORTANT TO NOTE IS
THAT THERE'S QUITE A BIT OF THE
MONEY THAT TYPICALLY GOES TO
FEDERALLY OWNED AND OPERATED
PORTS AND THEN A MUCH SMALLER
SHARE THAT IS COMPETITIVE FOR
NON FEDERALLY OWNED PORTS. SO
SOME OF THAT DISTINCTION, MAYBE
THAT CONGRESS KIND OF ALLOCATES
FUNDING SPECIFICALLY FOR
SPECIFIC PORTS THAT ARE KIND OF
RUN BY MORE BY THE ARMY CORPS OF
ENGINEERS OR SOMETHING OR OR A
FEDERAL ENTITY, SO I'M NOT SURE
IF THAT'S THE DISTINCTION. BUT
IF ANY OF MY COLLEAGUES HAVE ANY
FAMILIARITY WITH KIND OF FEDERAL
FUNDING, AND WHITE CALIFORNIA
GETS LESS. YEAH I WOULD SAY
THAT. THAT'S DEFINITELY PART OF
IT AND JUST TO SPEAK TO THE
EFFORTS THAT THAT AT LEAST WE'RE
DOING AND IN PARTNERSHIP WITH
MANY OF THE PORTS AND KAPPA
BEHIND US. PRACTICALLY THE
SECOND THAT WE ANNOUNCED THE
IMPORTANT FREIGHT INFRASTRUCTURE
PROGRAM. WE SENT A LETTER TO U
S. D. O T SECRETARY BUDDHA JUDGE
UM, NOTING THAT WE HAD THESE
INVESTMENTS AND THAT CALIFORNIA
HISTORICALLY HASN'T BEEN GETTING
ITS FAIR SHARE OF FUNDING AND
THE HARBOR MAINTENANCE TAX.
BEING ONE OF THOSE THAT'S
CALIFORNIA, IN A SENSE HAS BEEN
KIND OF A DONOR PORTS STATE TO
SOME OF THE OTHER PORTS. A LOT
OF OTHER STATES HAVE DOZENS AND
DOZENS OF SMALLER PORTS ON
RIVERS AND THINGS SO IT IS
IMPORTANT TO KEEP THAT PART OF
THE ECONOMY GOING, BUT
CALIFORNIA'S MENTIONED SEVERAL
TIMES WHERE 40% OF IMPORTS 30%
EXPORTS, SO WE SHOULD BE GETTING
AS A SIMILAR FEDERAL SHARE. I
THINK WE'VE BEEN UP TO MAYBE 15%
OR 17% OR SO OF THE FEDERAL
FUNDS COMING IN I THINK FOR THE
PORTANTINO INFRASTRUCTURE
DEVELOPMENT PROGRAM, AND THAT'S
NOT THAT'S NOT ENOUGH FOR THE
IMPORTANCE OF CALIFORNIA SO THE
ECONOMY SO BACK LAST MONTH, A
GROUP OF POOR DIRECTORS AND
SECRETARY OF TRANSPORTATION
TOCHIAZUMA SHOCKING. AND SEVERAL
OTHER COLLEAGUES WENT TO
WASHINGTON AND NOTED THAT WE
HAVEN'T BEEN GETTING OUR FAIR
SHARE INVESTMENTS. WE APPRECIATE
WHAT WE'VE BEEN GETTING, BUT
IT'S DEFINITELY NOT ENOUGH. AND
SO WE'RE WELL AWARE THAT
CALIFORNIA'S, UH, SHARE OF THE
PIE HISTORICALLY IN
TRANSPORTATION FUNDING, I THINK
IT'S ABOUT 10% THAT YOU WOULD
TYPICALLY SEE. BUT THAT DOESN'T
THAT ISN'T ACCOUNT FOR THE
IMPORTANCE OF THE PORTS. AND I
THINK ABOUT TWO THIRDS OF THE
IMPORTS COMING INTO THE SOUTHERN
CALIFORNIA GO TO OTHER
DESTINATIONS. EVERY SINGLE
CONGRESSIONAL DISTRICT IN THE
COUNTRY. SO IT'S REALLY
IMPORTANT THAT CALIFORNIA BE
LOOKED AT AS A FEDERAL IN
NATIONAL GATEWAY, NOT JUST IT'S
A STATE OF CALIFORNIA TRYING TO
GET ITS 10% NORMAL SHARE OF
FUNDING WHEN IT COMES TO PORTS
AND FREE THANK YOU VERY MUCH. MY
COLLEAGUE WHO COULDN'T BE HERE.
HE OFFERS UP THIS QUESTION. UM
HOW CAN THE STATE HELP
BUSINESSES TIES TO THE TO THE
SUCCESS AND IMPROVEMENT OF
CALIFORNIA SUPPLY CHAINS
BECOMING MORE RESILIENT TO
FUTURE CHALLENGES, SUCH AS
TECHNOLOGY DISRUPTIONS, CLIMATE
CHANGE IMPACTS AND THE STATES
THEIR REGULATIONS. I CAN START
ON THAT ONE. JUST I'M I'M
GRATEFUL FOR THE QUESTION,
BECAUSE I THINK THERE IS A
CHALLENGE THAT HASN'T REALLY
BEEN RAISED HERE YET TODAY AND
THAT IS SEA LEVEL RISE AND THE
IMPACT THAT THAT WILL HAVE ON A
LOT OF OUR PORTS. UM SO THE
STATE HAS TAKEN SOME STEPS.
THERE WAS LEGISLATION THAT
REQUIRED THE PORTS TO DO A
VULNERABILITY STUDY TO TRY EACH
OF THE PORTS AND SUBMIT THAT TO
THE STATE LANDS COMMISSION TO
LOOK AT WHAT THEIR
VULNERABILITIES ARE. AND WHAT
SOME STEPS MAYBE SO, UM, IN THE
LIST OF CHALLENGES THAT THAT YOU
NOTED, I THINK CLIMATE
VULNERABILITIES IS CERTAINLY ONE
OF THEM. NOT JUST FROM EMITTING
GREENHOUSE GASSES. AND HOW DO WE
REDUCE THAT? THROUGH ZERO
MISSION TECHNOLOGIES, BUT ALSO
WHAT ARE THE CLIMATE IMPACTS
THAT WERE ALREADY FACING SO
VULNERABILITY? STUDY IS A FIRST
STEP TO UNDERSTAND WHAT THE
PROBLEM IS, BUT CERTAINLY
THERE'S QUITE A BIT MORE WORK TO
BE DONE TO ADDRESS THOSE
VULNERABILITIES. AND I THINK, UH
, AS WE LOOK ALONG CALIFORNIA'S
COAST, THE PORTS ARE GOING TO BE
ONE OF THE PRIMARY AREAS OF
FOCUS THAT EVEN THOUGH THEY
AREN'T TYPICALLY FULLY FUNDED BY
BY THE STATE. AS WE NOTED, IT
MAY BE AN AREA OF FOCUS FOR THIS
COMMITTEE AND FOR THE
LEGISLATURE TO THINK ABOUT,
GIVEN THEIR IMPORTANCE IN THE IN
CALIFORNIA'S ECONOMY. THERE MAY
BE SOME ADDITIONAL STATE
INVESTMENT NEEDED TO HELP
DEVELOP SOME OF THAT RESILIENCE
. SO I'LL ADD THAT AND THEN
DEFER TO MY COLLEAGUES FOR
ADDITIONAL COMMENTS. ANYONE ELSE
WANT TO CHIME IN? PLEASE AND
THANKS AND OUR DEPARTMENT.
CALTRANS IS DONE A LOT OF WORK
ON THOSE VULNERABILITY.
ASSESSMENTS. UM AND LOOKING AT
FIRE. UM. WHETHER CHALLENGES AND
THEN EVEN EARTHQUAKES. WE'VE
DONE SOME RESEARCH ON THE
IMPACTS OF UM, EARTHQUAKES ON
BRIDGE STRUCTURES AROUND THE
PORTS OF L, A AND LONG BEACH AND
A CATASTROPHIC EARTHQUAKE. SO UH
, THOSE ARE JUST SOME OF THE
EXAMPLES, BUT ALSO, YOU NOTED ON
ZERO MISSION INFRASTRUCTURE. I
THINK ONE OF THE THINGS THAT
WE'VE BEEN LOOKING AT IS, UH,
LAND USE CHALLENGES OF TRYING TO
MEET THE, UM 2045 CARBON NEUTRAL
GOAL. IT TAKES A LOT OF LAND TO
BE ABLE TO DO CHARGING
INFRASTRUCTURE. AND PLACES FOR
PARKING VEHICLES AND CARGO
HANDLING EQUIPMENT AT THE PORTS.
AND THAT'S THAT'S GOING TO BE A
REAL BIG CHALLENGE TO THE
VULNERABILITY. WE NEED. TENS OF
THOUSANDS OF CHARGING, UM
LOCATIONS AROUND THE STATE. SO
EVEN THOUGH WE'RE BUILDING SOME
OF THE LARGEST ONES IN THE
NATION AND INVESTING OF IT, IT'S
JUST A DROP IN THE BUCKET OF
WHAT WE'LL NEED. PLUS THE GRID
RESILIENCY. UM AS WE SAW LAST
COUPLE OF YEARS AGO. UH THE
PORTS WERE VERY HELPFUL IN, UM
ADDRESSING THE CRISIS OF THE
ENERGY SUPPLY. THAT SOME OF THE
PORTS DID NOT DO SHORT POWER
WHERE THE SHIPS DURING THAT TIME
TO HELP WITH THE GRID. BUT EVEN
IN THAT CASE, I THINK THE PORCH
SHOWED THAT THEY WERE VERY
RESILIENT DURING THAT, AND WE'RE
ABLE TO SUPPORT AND SOME OF THEM
WERE ABLE TO KEEP OTHER SHIPS
EVEN PLUGGED IN DURING THOSE
TIMES, SO THAT GREAT RESILIENCE
IS REALLY IMPORTANT AND WE KNOW
SOME OF THE PORTS ARE GOING
AFTER LARGE FEDERAL GRANTS FOR
THAT, SO WE'LL BE SUPPORTING
THEM IN THOSE EFFORTS. GREAT
WELL, THANK YOU VERY MUCH. WELL,
THIS IS OUR FIRST PANEL. LET'S
GIVE THEM A ROUND OF APPLAUSE.
THANK YOU VERY MUCH FOR BEING
HERE. AND FOR YOUR PRESENTATIONS
. UM AND CERTAINLY THERE THERE
WILL BE SOME FOLLOW UP THAT'S
NECESSARY IN ORDER TO MOVE
FORWARD IN A LOT OF RESPECT, SO
THANK YOU VERY MUCH ONCE AGAIN.
WE WANT TO, UM. WE WANT TO
INVITE GARY HERRERA AND ALSO
CHRISTINA ZORK MINT AND ALSO
MIKE JACOB, UM, TO THE TO BE AT
OUR PANEL. AND ALSO, UM RUDY
GONZALEZ. AND TOMMY FIVE BY
OKAY? WE WANT TO START OUR FIRST
PRESENTER OF BY GARY HERRERA,
THE PRESIDENT OF THE
INTERNATIONAL LONGSHOREMAN
WAREHOUSE UNION, LOCAL 13. UM
WELCOME AND THANK YOU VERY MUCH.
BUT BEFORE YOU START, LET ME SAY
BECAUSE YOU'RE IN MY DISTRICT.
THANK YOU VERY MUCH FOR YOU FOR
ALL THE WORK THAT YOU GUYS ARE
DOING FOR OUR BROTHERS AND
SISTERS IN HAWAII. WE REALLY
APPRECIATE YOU GUYS GATHERING
THE FOOD, THE GOODS, ALL THE
THINGS THAT'S NECESSARY TO HELP
THOSE WHO ARE SUFFERING IN
HAWAII'S. I JUST WANTED TO GO ON
RECORD AND SAY THAT BECAUSE YOU
ARE, IN FACT, MY DIGITAL. I'M
SURE THAT OTHERS ARE DOING THE
SAME EXACT THING WE ELEVATE AND
SAY THANK YOU VERY MUCH FOR
SUPPORTING THOSE WHO ARE IN
NEED. UM UM OF OUR SISTERS AND
BROTHERS OVER IN HAWAII. SO WITH
THAT, MR PRESIDENT, PLEASE
PROCEED. IF YOU COULD PLEASE
INTRODUCE YOURSELF, UM, AND THE
PANEL AGAIN JUST SO YOU KNOW, WE
HAVE YOU EACH EACH OF YOU HAVE 6
TO 8 MINUTES TO SPEAK. UM AND
WILL PRESENT IN THE ORDER THAT'S
UM, LISTED ON THE AGENDA. AFTER
THE PANEL FINISH, WE WILL INVITE
MY COLLEAGUES TO HAVING
QUESTIONS, UM, THAT THEY MAY
WISH TO ASK OF THIS PANEL. SO MR
HERRERA, THANK YOU VERY MUCH FOR
BEING HERE AND PLEASE PROCEED
WHEN READY.
FIRST OF ALL FOREMOST, ALMOST
SAY THANK YOU FOR RECOGNIZING
MEN AND WOMEN AT IOW IN THE
COMMUNITY THAT STEPPED UP FOR
THE EFFORTS FOR HAWAII. UM IT
WAS AMAZING TO SEE THEM WORK,
AND I'M PROUD TO BE A PART OF
IT. SO THANK YOU. UM GOOD. GOOD
AFTERNOON ASSEMBLY MEMBER GIBSON
AND SELECT COMMITTEE MEMBERS.
THANK YOU FOR HAVING US HERE
TODAY ON THIS VERY IMPORTANT
TOPIC OF THE PORTS. MY NAME IS
GARY HERRERA. I AM THE
PRESIDENT. I OW! UH
INTERNATIONAL LONGSHORE
WAREHOUSE LOCAL 13, WHICH IS IN
SOUTHERN CALIFORNIA. I'M HERE
TODAY REPRESENTING LOCALS 13, 63
AND 94. WHICH REPRESENTS ABOUT
10,000 LITTLE OVER 10,000
MEMBERS, PLUS A PART TIME CASUAL
WORKFORCE OF OVER 5000 MEMBERS,
ALL IN SOUTHERN CALIFORNIA IN
THE PORTS OF LOS ANGELES AND
LONG BEACH. WE'RE PROUD OF THE
HARD WORK THAT ALL THE IOW
MEMBERS HAVE DONE THAT ALLOWS
THE CARGO TO MOVE EFFICIENTLY.
THROUGH THE PORTS. THIS IN TURN,
KEEPS THE SOURCE SHELVES STOCKED
WITH THE GOODS FOR MILLIONS OF
AMERICANS. AND AMERICAN BUSINESS
THAT NEEDS TO SURVIVE. ON A
DAILY BASIS WE LOAD IN AND LOAD
A VARIETY OF IMPORTED AND
EXPORTED GOODS. THAT INCLUDES
AUTOMOBILES. FOODS MEDICAL
SUPPLIES. BUILDING MATERIALS
HOME PERSONAL GOODS. AND
ANYTHING ELSE THAT YOU COULD
THINK OF. WE LOAD OW MEMBERS
WORKED TIRELESSLY THROUGH THE
PANDEMIC. DURING THE COVID 19
PANDEMIC, WHICH, TRAGICALLY THAT
WE LOST. NUMEROUS MEMBERS DURING
THAT UNCERTAIN TIME. BUT DURING
THAT UNCERTAIN TIME. WE WORKED
ON AN AVERAGE OF SIX OR SEVEN
DAYS A WEEK TO MAKE SURE THAT
AMERICANS GOT THE NECESSARY
GOODS TO MAKE SURE THAT THE
HOSPITALS THAT GOT THEIR MEDICAL
SUPPLIES THAT THE PPE WENT OUT
TO THE PROPER UM, ORGANIZATIONS
TO PROTECT THEMSELVES SO THAT WE
CAN KEEP AMERICA MOVING AND KEEP
CALIFORNIA RUNNING IN A POSITIVE
WAY. WE BROKE RECORDS EVERY
MONTH. WITH THE AMOUNT OF CARGO
THAT WE WORKED THE MEN AND WOMEN
OF THE IOW THEY RISK THEIR
LIVES, THEY BECAME ESSENTIAL TO
MAKE SURE THAT THEY WORKED HARD
FOR EVERY AMERICAN CITIZEN
OUTSIDE THEIR OWN FAMILIES. AND
I'M PROUD TO BE A PART OF THE
ORGANIZATION AND I WANT TO
RECOGNIZE THEM AND ALL THEIR
EFFORTS AND ALL THE HARD WORK
THAT THEY DID DURING THAT
UNCERTAIN TIME. TODAY THE IOW
CONTINUES TO FACE AUTOMATION
THREATS. SIGNIFICANTLY DISPLACES
OUR WORKERS. WE ASK THAT THE
STATE FUNDING INVESTED IMPORT
EQUIPMENT NOT BE ALLOWED TO USE
FOR AUTOMATED EQUIPMENT, FOR
INSTANCE, INFRASTRUCTURE THAT
SUPPORTS AUTOMATED EQUIPMENT. IN
ADDITION OVER THE LAST FIVE
YEARS, CAP AND TRADE FUNDS AS
WELL AS TRANSPORT TRANSPORTATION
FUNDS ALLOCATED. FOR EQUIPMENT
HAVE BEEN ALLOCATED ONLY FOR
HUMAN OPERATED EQUIPMENT. WHICH
IS IMPERATIVE FOR BOTH TO HAVE
AN ENVIRONMENTAL JUSTICE AND
ECONOMIC JUSTICE. WE WANT JUST
LIKE ANYONE ELSE WE WANT CLEAN.
AIR WE LIVE THERE. WE WORKED
THERE. WE'RE IN THOSE
COMMUNITIES. BUT WE ALSO WANT TO
HAVE ECONOMIC JUSTICE. WE DON'T
WANT AT THE LOSS OF JOBS. WE
LIKE TO CALL THAT. VECO WHEN WE
COMBINE ENVIRONMENTAL, JUSTICE
AND ECONOMIC JUSTICE TOGETHER.
THE ROAD TO A 100% 0 AND MOST,
UH ZERO EMISSION PORTS.
ENVIRONMENT IS NOT WITHOUT
CHALLENGES AND WILL BE VERY
EXPENSIVE. PLEASE REMEMBER THAT
WHILE OUR PORTS ARE A PRINCIPAL
ENGINE OF THE WORLD'S FOURTH
LARGEST ECONOMY, THEY'RE NOT
WITHOUT VULNERABILITIES.
CURRENTLY STATES THAT DO NOT
SHARE CALIFORNIA IDEALS LIKE
TEXAS, FLORIDA AND GEORGIA ARE
ALL USING THEIR THEIR ATTACK.
THEIR TAX REGULATIONS TO LURE
AWAY MARITIME TRADE AS WELL AS
ECONOMIC, ECONOMIC BENEFITS AND
POLITICAL POWERS THAT COMES WITH
IT. WE TALKED EARLIER ABOUT THE
HARBOR MAINTENANCE TAX. I HEARD
IT BROUGHT UP EARLIER. $11 GO TO
THOSE STATES. $1 STAYS HERE. OUR
INFRASTRUCTURE. WE'RE BUILDING
FOR THEM TO LEAVE. AND THEY
DON'T HAVE THE SAME
ENVIRONMENTAL GOALS AND RULES
THAT WE HAVE. AND WE TALKED A
LITTLE BIT ABOUT THE INDIRECT
SOURCE RULE. EVEN IF YOU WERE TO
FULLY AUTOMATE EVERY TERMINAL.
IN L, A LONG BEACH. YOU STILL
COULDN'T REACH THAT CAP IN WHICH
THAT RULES IS ASKING TO BE
CAPPED. IT IS VERY DETRIMENTAL
TO THE PORTS. TO THE ECONOMY TO
OUR COMMUNITIES. TWO WORKERS. TO
LABOR. TO THE WHOLE STATE OF
CALIFORNIA AND TO THE WHOLE MID
PART OF THE UNITED STATES IN
WHICH THEY RELY ON US TO GO TO
WORK AND DELIVER THOSE GOODS. IN
ADDITION, OPPORTUNITY, WE
RECOGNIZE THE BENEFIT OF ALL
CALIFORNIA AND DEVELOPMENT OF
FLOATING OFFSHORE WIND. THE
TURBINE PROJECTS. THESE
TRAILBLAZING OPERATIONS WILL
REQUIRE EXTENSIVE SHORE SIDE
INFRASTRUCTURE INVESTMENTS AND
COLLABORATION AMONG NUMEROUS
STAKEHOLDERS. WE REQUEST YOUR
SUPPORT FOR THE FINANCIAL
INVESTMENTS THAT THE STATE WILL
NEED TO MAKE AN OFFSHORE WIND.
WE ALSO ASK THAT THE IOW
HISTORIC AND GEOGRAPHIC
JURISDICTION BE RECOGNIZED AND
RESPECTED. AS WE CONTINUE TO DO
OUR TRADITIONAL WORK OF MOVING
ALL GOODS AND MATERIALS WITHIN
OUR PORTS. IOW MEMBERS ARE THE
BACKBONE OF THE PORTS. DURING
THE 86 YEAR HISTORY ON THE WEST
COAST. WE HAVE PROVIDED A STABLE
, RELIABLE WORKFORCE HAS KEPT
CARGO MOVING FOR THE BENEFIT OF
ALL CALIFORNIANS. THE U. S AND
GLOBAL SUPPLY CHAINS. WE ARE
GRATEFUL FOR THE COLLABORATIVE
SPIRIT THIS BODY HAS SHOWN OR
ORGANIZATION AND WE APPRECIATE
HAVING THE OPPORTUNITY TO SHARE
A PERSPECTIVE AGAIN WITH YOU
HERE TODAY. ONCE AGAIN. BEFORE I
END MY COMMENTS. I JUST LIKE TO
SAY TO THE MEN AND WOMEN OF THE
I O. W IN ALL THEIR HARD WORK
DURING VERY UNCERTAIN TIME
DURING THE PANDEMIC THAT THEY
WORKED ON AVERAGE OF 6 TO 7 DAYS
A WEEK THAT WE MOVED AMERICA'S
CARGO. AND WE DID IT AT THE COST
OF OUR OWN LIVES. THAT'S HOW
ESSENTIAL THE WORKERS ARE ON THE
PORTS DOWN IN LOS ANGELES AND
LONG BEACH. AND ON A COMMUNITY
LEVEL ON A HUMANITARIAN LEVEL.
ASSEMBLYMEMBER'S SYNC MEMBER,
GIBSON HAS STATED WE ALWAYS GO
BACK AND WE GIVE BACK TO THOSE
IN NEED. WE HAVE A SAYING. AN
INJURY TO ONE IS AN INJURY TO
ALL. AND THE MEN AND WOMEN OF
THE OW DID THAT. THEY LOADED 13
CONTAINERS ALL BY HAND. AND WE
SHIP THEM OUT. TO HAWAII. AND
WITH THAT I JUST WANT TO SAY
ALLOWING ME TO BE HERE TO SPEAK
ON BEHALF OF THE LW IS AN HONOR.
IT'S A PRIVILEGE. AND TO
REPRESENT THE MEN AND WOMEN WHO
ARE WORKING ON THE PORTS BALLET
LONG BEACH. UH FROM THEM TO YOU.
THANK YOU FOR HEARING US OUT.
THANK YOU FOR GIVING US THE
OPPORTUNITY TO SPEAK AND BE A
STAKEHOLDER IN INHERITED AND TO
PROTECT OUR OUR LIVELIHOODS
PROTECT OUR COMMUNITIES TO
PROTECT AMERICAN CITIZENS AND
KEEP AMERICAN JOBS. THANK YOU.
THANK YOU VERY MUCH, MR.
PRESIDENT WE APPRECIATE YOUR
COMMENTS AND THE MEN AND WOMEN
THAT YOU REPRESENT. MRS ORTMANN
IS HERE WANTED TO GIVE HER AN
OPPORTUNITY. VICE PRESIDENT
CALIFORNIA ASSOCIATION OF PORTS
AUTHORITY. SO THANK YOU VERY
MUCH FOR BEING HERE WITH US
TODAY AND YOU CAN PLEASE START
WITH READY. THANK YOU, CHAIR,
KIDS AND FELLOW SELECT
COMMITTEE. MEMBERS UM I AM
REPRESENTING THE CALIFORNIA
ASSOCIATION OF PORTS AUTHORITIES
AND WE THANK YOU FOR CONVENING
THIS HEARING TODAY. I AM
CHRISTINE'S ORTMANN, THE VICE
PRESIDENT OF KAPPA AS WELL AS
THE EXECUTIVE DIRECTOR AT A
QUART OF REDWOOD CITY. OKAY.
APPA IS COMPRISED OF 11
DEEPWATER MUNICIPAL PORTS
AUTHORITIES THROUGHOUT THE STATE
OF CALIFORNIA. CALIFORNIA IS
HOME TO THE MOST PRODUCTIVE
SYSTEM OF PORTS IN THE NATION,
INCLUDING THREE OF OUR COUNTRY'S
LARGEST CONTAINER PORTS, AS WELL
AS A DIVERSE SYSTEM OF SPECIALTY
PORTS, WHICH ARE RESPONSIBLE FOR
SERVING A VARIETY OF INDUSTRIES
, INCLUDING TOURISM AND
WATERFRONT RECREATION. TOGETHER
KAPPA PORTS ARE RESPONSIBLE FOR
HANDLING 38% OF CONTAINERIZED
IMPORTS AND 28% OF ALL EXPORTS
IN THE NATION. OUR PORTS PLAY A
CRITICAL ROLE IN OUR STATES IN
DRIVING OUR STATE'S ECONOMIC
GROWTH. LEADING ENVIRONMENTAL
STEWARDSHIP. AS WELL AS
SUPPORTING OUR LOCAL
COMMUNITIES. TODAY I'M PLEASED
TO PROVIDE A BRIEF OVERVIEW OF
SOME OF THE PRESSING PUBLIC
POLICY CHALLENGES AND THE
OPPORTUNITIES FACING CALIFORNIA
PORTS. CALIFORNIA IS THE LARGEST
GATEWAY FOR US TRADE WITH THE
PACIFIC RIM NATIONS, IN PART DUE
TO OUR GEOGRAPHIC LOCATION, BUT
ALSO BECAUSE SUCH A LARGE
PORTION OF TRADE IS CONSUMED
HERE LOCALLY, AND MANY EXPORTS
ARE GROWN, MANUFACTURED AND
PRODUCED IN OUR STATE. THE GOODS
THAT MOVED THROUGH CALIFORNIA
PORTS HAVE A MAJOR IMPACT ON THE
U. S ECONOMY. MORE THAN 3
MILLION JOBS ARE SUPPORTED BY
CALIFORNIA'S PUBLIC PORTS,
DRIVING ECONOMIC OPPORTUNITIES
ACROSS THE COUNTRY. THESE JOBS
GENERATE A WORKER'S INCOME
TOTALING $1.34 BILLION ANNUALLY.
CALIFORNIA PORTS ALSO DRIVE TAX
REVENUES THROUGHOUT THE COUNTRY.
IN RECENT YEARS, THIS TRADE HAS
GENERATED AN ESTIMATED $38.1
BILLION ANNUALLY WITH IMPACT
SPREAD THROUGHOUT OUR NATION.
CALIFORNIA PORTS ARE ALSO
WORKING DILIGENTLY TO ENSURE
THEIR ECONOMIC IMPACT IS IN
HARMONY WITH THE ENVIRONMENT.
IMPROVING AIR QUALITY,
PROTECTING WATER QUALITY AND
ENHANCING WILDLIFE PROTECTION.
ARE AMONG THE STATE'S TOP
PRIORITIES AND OUR PUBLIC PORTS
HAVE BEEN CREATING AMBITIOUS,
INNOVATIVE AND CUTTING EDGE
PROGRAMS THAT PROPEL OUR PORTS
IN CALIFORNIA TO BE THE MODEL
FOR PORTS WORLDWIDE. BY WAY, OF
EXAMPLE IN 2005 PORTLY LORDED
SUPPORT RELATED AIR POLLUTION
EMISSIONS IN THE SAN PEDRO BAY,
HOME TO BOTH PORTS OF LOS
ANGELES AND LONG BEACH. DROPPED
90% IN DIESEL PARTICULATE
MANNER. AS WELL AS 63% REDUCTION
IN NITROGEN OXIDES AND DROPPED
97% IN SULFUR OXIDES. REPORTS OF
L A AND LONG BEACH HAVE ALSO
MADE GOALS IN REACHING 100% 0
EMISSION, HUMAN OPERATED CARGO
HANDLING EQUIPMENT BY 2030. AND
100% 0 EMISSION RAGE FLEET BY
2035. IN OAKLAND RELATED DIESEL
EMISSIONS HAVE HAVE BEEN REDUCED
OVER 85% SINCE 2005. AN
ADDITIONAL INITIATIVES ARE
UNDERWAY FOR DECARBONIZATION
AFRAID EQUIPMENT AND ELECTRICAL
INFRASTRUCTURE. REPORT OF SAN
DIEGO. IT'S HOME TO THE FIRST
ALL ELECTRIC MOBILE HARBOR
CRANES IN NORTH AMERICA. LEADING
THE WAY FOR PORTAL
ELECTRIFICATION AND MAKING
IMPROVEMENTS FOR BOTH THE
ENVIRONMENT AND THE HEALTH OF
THE NEIGHBORING COMMUNITIES.
SINCE 2017 REPORT OF WINNIE ME
HAS BEEN CERTIFIED AS A GREEN
MARINE REPORT. THE LEADING
VOLUNTARY ENVIRONMENTAL
CERTIFICATION PRODUCT PROGRAM
FOR NORTH AMERICA'S MARITIME
INDUSTRY. AT THE PORTAL REDWOOD
CITY. WE ARE PROUD TO SPONSOR
THE RE USE OF DREDGE MATERIALS
FOR RESILIENCY EFFORTS.
ADDRESSING SEA LEVEL RISE FOR
OUR REGIONAL BAY WIDE
COMMUNITIES CREATING ENHANCING
IN OUR TITLE HABITAT WITH LIVING
SHORELINES PROTECTION WHILE
PROVIDING G H G REDUCTION AND
FACILITATING CARBON
SEQUESTRATION. WHILE THESE ARE
JUST A FEW PORTS EXAMPLES, YOU
CAN SEE EACH KAPPA PORT IS
AGGRESSIVELY PLANNING AND
IMPLEMENTING GREEN
TRANSPORTATION INITIATIVES THAT
ARE ALIGNED WITH THE STATE'S
CLIMATE GOALS. ANOTHER CRITICAL
COMPONENT OF CALIFORNIA'S CLEAN
ENERGY GOAL IS OFFSHORE WIND. TO
FACILITATE THE GOALS OF FIVE
GIGAWATTS BY 2030. AND THE
NATION'S LEADING 25 GIGAWATTS BY
2045. AT THE DIRECTION OF
ASSEMBLY. BILL UM 5 25, THE
CALIFORNIA ENERGY COMMISSION.
WE'LL SOON BE REALLY WILL SOON
BE EXCUSED. EXCUSE ME RELEASING
A STRATEGIC PLAN FOR CALIFORNIA
OFFSHORE WIND. OUTLINING
ESSENTIAL NEXT STEPS THROUGH
THOSE PROCESSES. SUPPORT OF LONG
BEACH, THE SECOND BUSIEST
CONTAINER PORTS IN THE UNITED
STATES. IS PROPOSING THE
DEVELOPMENT OF THE LARGEST
FACILITY IN THE NATION
SPECIFICALLY DESIGNED TO
ACCOMMODATE THE ASSEMBLY OF
OFFSHORE WIND TURBINES OR PEER
WIND. REPORT OF HUMBLE BAYS,
OFFSHORE WIND AND HEAVY LIFT
MARINE TERMINAL PROJECT. SUPPORT
THE DEVELOPMENT OF UP TO 1.6
GIGAWATTS OF OFFSHORE WIND. THIS
PROJECT DID RECEIVE $10.45
MILLION IN FUNDING FROM THE
CALIFORNIA ENERGY COMMISSION TO
CONDUCT TECHNICAL STUDIES,
PRELIMINARY DESIGN AND
ENGINEERING AND PRE PERMITTING
OR ENTITLEMENT ACTIVITIES.
WORKING COLLABORATIVELY WITH THE
PORTS. CALIFORNIA MUST
EXPEDITIOUSLY WORK TO ENSURE OUR
PORTS CAN DEVELOP THE INNOVATIVE
NEW TECHNOLOGY. OUR PORTS ARE
THANKFUL TO YOU FOR THE
INVESTMENT YOU HAVE MADE. BUT
WITH OFFSHORE WIND
INFRASTRUCTURE. CALIFORNIA PORTS
ESTIMATED TO COST MORE THAN $10
BILLION. ADDITIONAL PUBLIC
INVESTMENT IS CRITICAL TO US.
CALIFORNIA PORTS ARE COMMITTED
TO MOVING GOODS FASTER. OUR
STATE TO DRIVE OUR STATE'S
ECONOMY. IN 2021 KAPPA JOINED
THE SUPPLY CHAIN SUCCESS SUMMIT
CONVENED BY THE GOVERNOR'S
OFFICE, OR GÓMEZ. THE STATE CAST
. CALISTA CALIFORNIA STATE
TRANSPORTATION AUTHORITY. THE
CALIFORNIA FOOD AND AGRICULTURAL
DEPARTMENT AND OTHER KEY
STAKEHOLDERS TO WORK ON
SOLUTIONS TO IMPROVE OUR SUPPLY
CHAIN. IN DOING SO. OUR PORTS
CONTRIBUTED TO SOLUTIONS THAT
WILL HELP MAKE OUR SUPPLY CHAIN
MORE EFFICIENT. ENSURING
CONSUMERS CAN RECEIVE ESSENTIAL
GOODS IN A TIMELY MATTER.
INCLUDING POLICIES THAT
INCENTIVIZE EFFICIENCY. AND
COORDINATION. CALIFORNIA HAS
MADE HISTORIC INVESTMENTS FOR
PORTS AND FREIGHT
INFRASTRUCTURE. TO BUILD A MORE
EFFICIENT, SUSTAINABLE AND
RESILIENT GOODS MOVEMENT SYSTEM.
THE LARGEST PORTION OF THAT
INVESTMENT, AS YOU'VE HEARD
EARLIER WAS $1.2 BILLION, WHICH
WILL FUND 15 PROJECTS STATEWIDE
, CREATING AN ESTIMATED 20,000
JOBS AND INCREASING THE CAPACITY
TO MOVE GOODS THROUGHOUT THE
STATES. GLOBAL TRADE GATEWAYS
WHILE LESSENING IN THE
ENVIRONMENTAL IMPACTS ON OUR
NEIGHBORING COMMUNITIES. THE
CALIFORNIA STATE TRANSPORTATION
AGENCY ALSO AWARDED 350,000,350
MILLION. 2 13 PROJECTS THAT WILL
ELIMINATE STREET LEVEL RAIL
CROSSINGS, MAKING CRITICAL
LIFESAVING SAFETY IMPROVEMENTS,
REDUCING EMISSIONS AND KEEPING
GOODS FLOWING AND PEOPLE MOVING
SAFELY. HOWEVER THE FINANCIAL
NEED FOR DEFERRED MAINTENANCE
AND COMPLIANCE WITH NEW AND
ONGOING REGULATORY REQUIREMENTS
EXCEEDS THE INVESTMENTS THAT ARE
REPORTS ARE MAKING 10 FOLD IN
SOME INSTANCES. MANY STATES THAT
COMPETE FOR CARGO THAT HAS
HISTORICALLY CALLED R CALIFORNIA
PORTS, ALONG WITH THE JOBS AND
THE ECONOMIC VITALITY THAT COMES
FROM THIS CARGO. ARE CREATING
DEDICATED AND RECURRING
INFRASTRUCTURE FUNDING
MECHANISMS AVAILABLE FOR THEIR
RESPECTIVE PORTS. FOR EXAMPLE,
FOR MORE THAN 30 YEARS, THE
FLORIDA STATE LEGISLATURE HAS
PROVIDED AN ANNUAL GENERAL FUND
ALLOCATION FOR THEIR PORTS.
THERE'S LESS THAN 11 MUNICIPAL
COURTS IN THE STATE OF FLORIDA.
BUT IT ENSURES THAT THEIR PORTS
CAN BOTH HANDLE FREIGHT DEMANDS
, BUT ALSO COMPETITIVELY COMPETE
IN THAT GLOBAL ECONOMY. THEIR
BASELINE FOR THAT GENERAL FUND
IS $60 MILLION ANNUALLY THAT
THEY CREATE. ADDITIONALLY,
CALIFORNIA MUST FIGHT FOR OUR
FAIR SHARE OF FEDERAL FUNDING AS
YOU'VE HEARD EARLIER. LAST YEAR
ASSEMBLY JOINT RESOLUTION 30
HIGHLIGHTED THE FUNNY DISPARITY
BETWEEN THE PORTS ON THE PACIFIC
COAST OF THE UNITED STATES,
INCLUDING CALIFORNIA OR AGAIN.
WASHINGTON ALASKA AND HAWAII.
ONLY RECEIVING LESS THAN 10% OF
FEDERAL PORTS. SPECIFIC FUNDING
MECHANISMS. IN CLOSING. I WOULD
LIKE TO THANK YOU FOR YOUR
CONTINUED LEADERSHIP TO ENSURE
OUR PORTS AND GOODS SECTOR
THRIVES THROUGHOUT THE STATE AND
CAN CONTINUE TO PROVIDE TO OUR
NATION. WE LOOK FORWARD TO
CONTINUING THIS ONGOING DIALOGUE
WITH YOU AND I'M AVAILABLE FOR
ADDITIONAL QUESTIONS OR COMMENTS
. THANK YOU. THANK YOU VERY MUCH
. APPRECIATE YOUR TESTIMONY.
NEXT WE WANT TO INVITE TO THE
MICROPHONE. MIKE JACOBS, VICE
PRESIDENT, GENERAL COUNSEL FOR
THE PACIFIC MERCHANT SHIPPING
ASSOCIATION. THANK YOU VERY MUCH
FOR BEING HERE AND THANK YOU FOR
AH, YOUR CONTINUOUS
COMMUNICATION WITH THIS OFFICE
AND MAKING SURE THAT WE MOVE IN
THE RIGHT DIRECTION. SO I JUST
WANTED TO LET YOU KNOW HOW MUCH
I APPRECIATE YOU AND THE FLOOR
IS YOURS. THANK YOU, MR CHAIRMAN
AND CONGRATULATIONS ON THE
APPOINTMENT IS SELECT COMMITTEE
CHAIR. WE APPRECIATE THE
COMMUNICATION WITH WITH YOU AS
WELL. UM AND THE AMBITIOUS GOALS
YOU'VE ALREADY LAID OUT FOR THE
COMMITTEE. UM ONE OF THE THINGS
THAT THAT IS, IS, I THINK MOST
NOTABLE ABOUT EVERYONE YOU'RE
GOING TO HEAR FROM TODAY,
INCLUDING ON THIS PANEL IS HOW
SYMBIOTIC ALL OF US ARE IN OUR
RELATIONSHIPS. UM I REPRESENTED
A SPECIFIC MERCHANT SHIPPING
ASSOCIATION, MARINE TERMINAL
OPERATORS AND OCEAN CARRIERS. SO
WHERE THE OUR MEMBERS ARE THE
EMPLOYERS OF THE LW. AND WHERE
THE TENANTS OF THE PORTS SO
EVERYTHING YOU JUST HEARD FROM
MR AARON AND MRS ORTMANN ARE, UH
, VERY CLEARLY ISSUES THAT WE
ALSO CARE ABOUT. UM AND I DON'T
WANT TO BELABOR THOSE THINGS.
BUT I DO WANT TO RESPECT UM, THE
DIRECTION THAT WE GOT FROM YOU,
MR CHAIRMAN ABOUT MAKING THIS
FIRST HEARING AND OVERVIEW OF
SOME OF THE WAYS THAT WE ALL DO
THAT INTERACTION WORK TOGETHER?
UM AND CREATE THE SYSTEM THAT WE
HAVE TODAY. AND THEN WE LOOK
FORWARD TO, OF COURSE, ANSWERING
QUESTIONS HERE, BUT ALSO
PARTICIPATING IN YOUR FUTURE
HEARINGS TO ADDRESS SPECIFIC
ISSUES THAT YOU'VE ALREADY HEARD
REFERENCE TODAY, UM, BOTH FROM
THE DIOCESE AND ALSO FROM MR
HERRERA REGARDING INDIRECT
SOURCE RULE IN SOUTHERN
CALIFORNIA WILL DEFINITELY BE
TALKING ABOUT THAT AT YOUR LOS
ANGELES HERRING. UM, NEXT MONTH,
UM BUT. AGAIN TO TAKE A STEP
BACK, UM TO SOME OF THE THINGS
THAT MRS WORTMANN JUST
HIGHLIGHTED REGARDING, UM NOT
ONLY THE LACK OF FEDERAL
FUNDING, BUT ALSO THE
COMPETITION WE HAVE WITH OTHER
PORTS THE WAY THAT OUR PORTS
SYSTEM IS SET UP. UM, IS A TRUE
PUBLIC PRIVATE PARTNERSHIP. WE
HAVE A SYSTEM WHERE OUR PORTS
ARE PROPRIETARY AGENCIES. THAT
MEANS THAT THEY MOVE FORWARD
WITHOUT THE GUARANTEE OF LOCAL
PROPERTY TAX REVENUE, LIKE ANY
OTHER MUNICIPAL AGENCY MIGHT
THEY DO NOT HAVE GUARANTEED
STATE TAX REVENUE, WHICH A STATE
AGENCY MIGHT, UM THEY ARE ACTING
IN A PROPRIETARY CAPACITY, UM,
WITHIN A MARKET SPACE. AND
WITHIN THAT MARKET SPACE THAT
MEANS COMPETITIVENESS IS KEY,
BECAUSE THE PORTS NEED ACTIVE
PRIVATE PARTNERS TO HELP DEVELOP
FUN AND FINANCE ALL OF THE
INFRASTRUCTURE THAT WE NEED TO
DO OUR WORK. AND TO MAKE THAT
PUBLIC INVESTMENT, UM, ACTUALLY
PROFITABLE. WE HAVE TO BE ABLE
TO REINVEST IN NOT ONLY OUR
INFRASTRUCTURE, BUT OUR
EQUIPMENT AND OUR PEOPLE. UM AND
REALLY WHAT THAT LOOKS LIKE IS,
UM JUST TO BREAK IT DOWN IS WHEN
YOU LOOK AT AND AGAIN NOT EVERY
PART IS THE SAME. WORDS HAVE
DIFFERENT SCALES. THEY'RE IN
DIFFERENT NICHES. THEY HANDLE
DIFFERENT BUSINESS. SO THIS IS
NOT GOING TO BE, UH,
ILLUSTRATIVE OF EVERY SINGLE
RELATIONSHIP IN DIFFERENT PORTS
HANDLE IT DIFFERENTLY. BUT
GENERALLY YOU'LL HAVE, UM POURED
. INFRASTRUCTURE NEEDS TO BE
DEVELOPED THAT NEED TO BE A
REVENUE BOND. REVENUE BOND NEEDS
TO BE BACKED BY REVENUE.
REVENUES ARE ASSOCIATED WITH A
LONG TERM LEASE. AT LEAST NEEDS
TO BE ENTERED INTO OBVIOUSLY
WITH ONE OF OUR MEMBERS OF THE
MARINE TERMINAL OPERATOR OR IF
THE PORTS OPERATING DIRECTLY
THAT FACILITY THAT WILL BE
FACILITATED BY A STEVEDORING
RELATIONSHIP. UM WITH THE MARINE
TERMINAL OR SOME OTHER COMPANY,
AND THOSE PEOPLE HIRE THE
LONGSHOREMEN. BUT ALSO INVEST IN
THE CAPITAL THAT YOU NEED TO
ACTUALLY RUN THE SPORT CRANES
AND THE COMMERCIAL CARGO
HANDLING EQUIPMENT. WE CANNOT.
MAKE THE REINVESTMENT THAT'S
NECESSARY. WE CAN'T INVEST IN
THE NEXT GENERATION OF
TECHNOLOGIES NECESSARY UNLESS
WE'RE GROWING. AND WE'RE
COMPETING FOR THAT CARGO IN
ORDER TO REINVEST IN NEW LEASES
TOMORROW AND SO ONE OF THE
THINGS THAT WE ARE CONCERNED
ABOUT WITH ISSUES SUCH AS A, UM
UH, A CAP ON THE NUMBER OF
CONTAINERS MOVING IS OBVIOUSLY
THE ABILITY TO GROW. AND THEN TO
REINVEST. UM. WE OBVIOUSLY HAVE
MADE A LOT OF STRIDES IN TERMS
OF AIR QUALITY IMPROVEMENTS. ONE
OF THE REASONS WHY THAT IS SUCH
AN INTEREST TO EVERYONE AND
YOU'LL HEAR IT FROM EVERYBODY
AND THE REST OF SUPPLY CHAIN AS
WELL IS BECAUSE THEY NEED TO BE
IN THE CONTEXT OF ECONOMIC
GROWTH. UM, THE PLANNING HORIZON
FOR MAKING THESE TYPES OF
INVESTMENTS IS VERY LONG. WE ARE
TRANSITIONING TO BRAND NEW
TECHNOLOGIES. WE'RE INVESTING IN
THE INFRASTRUCTURE TO SUPPORT
THOSE TECHNOLOGIES AND BECAUSE
THESE TECHNOLOGIES ARE IN THEIR
INFANCY, UM IT'S IMPOSSIBLE FOR
US TO DETERMINE AT THIS POINT IN
TIME, EXACTLY WHAT TYPE OF
INVESTMENTS WE'RE GOING TO NEED
WHAT THE SCALE IS AND EVEN THE
TECHNOLOGY. UM WHEN WE TALK
ABOUT ZERO EMISSIONS, THOSE
TECHNOLOGIES HAVEN'T BEEN FULLY
DEVELOPED. UM WE DID HERE, YOU
KNOW, IN A COUPLE OF THE
CONVERSATIONS IN THE FIRST PANEL
, THE TERM ELECTRIFICATION WAS
USED, UM, WE HAVE NOT ALL
DECIDED THAT ELECTRIFICATION IS
THE BEST PATH ZERO. IT MAY BE A
HYDROGEN FUTURE. IT MIGHT BE A
MIX OF THOSE THINGS MIGHT BE
BATTERY ELECTRIC. BUT ALL OF
THOSE THINGS NEED REVENUE
STREAMS TO SUPPORT THE BONDING
THAT'S GOING TO UNDERWRITE THAT
INFRASTRUCTURE. UM AND THAT IS A
CHALLENGE BECAUSE A LOT OF OUR
ENVIRONMENTAL IMPACTS REQUIRE
INVESTMENTS THAT DON'T GENERATE
REVENUE. UM AND IT'S HARD TO
UNDERWRITE PROJECTS WITHOUT THE
REVENUE. TO SUPPORT THE BONDING
FOR THE REVENUE BONDS. UM AND SO
THAT'S THAT'S I THINK AGAIN,
JUST A GENERAL PROPOSITION. WE
WANTED TO MAKE THE ARGUMENT THAT
WAS MADE BY THE STATE WHEN IT
ADOPTED ITS SUSTAINABLE FREIGHT
ACTION PLAN, WHICH WAS THE LAST
LANDING DOCUMENT THAT WAS
COMPREHENSIVE IN NATURE. UH
ADOPTED IT WAS IN 2016. IT WAS
REFERENCED EARLIER IN OUR, UH,
TESTIMONY FROM CALISTA. WE STILL
THINK THAT IS THE BEST PATH
FORWARD FOR THE STATE. THAT YOU
HAVE TO GROW. COMMERCE AND WE'RE
TO UNDERWRITE THE ADDITIONAL
COST OF THE INFRASTRUCTURE AND
EQUIPMENT THAT ARE NECESSARY TO
INVEST IN THE TECHNOLOGIES OF
TOMORROW. WE CANNOT TURN AROUND
AND TELL PEOPLE NOT TO DO
BUSINESS HERE EXPECT THEM TO
INVEST. MORE. THAT DOES NOT MAKE
SENSE. SO UM, WE ARE DEDICATED
TO HAVING THAT CONVERSATION WITH
YOU, MR CHAIRMAN. WE'RE VERY
HAPPY TO PARTICIPATE IN THIS AND
OTHER FUTURE HEARINGS TO TALK
ABOUT THE SPECIFIC ISSUES THAT
ARE THAT ARE IN FRONT OF US TO
DO THAT. AS YOU'VE HEARD, WE'VE
HAD A LOT OF CHALLENGES. WE'VE
ALSO HAD A LOT OF SUCCESS IS WE
THINK THE STATE AND THE
LEGISLATURE AND THE GOVERNOR, UM
FOR THE INVESTMENT BUT THOSE ARE
ONE TIME INVESTMENTS. THEY DON'T
CREATE ONGOING REINVESTMENT INTO
OUR SYSTEM. OUR SYSTEM WILL
BECOME MORE EXPENSIVE AND I'D
LIKE TO LEAVE JUST WITH ONE
FINAL THOUGHT, WHICH IS THROUGH
THE BEGINNING OF CONTAINER
IZATION UP UNTIL ABOUT 2005.
WHAT WE SAW WAS A CONTINUOUS
VIRTUAL CYCLE OF REINVESTMENT.
WE'VE ALWAYS HAD MORE EXPENSIVE
REAL ESTATE COSTS IN CALIFORNIA.
WE'VE ALWAYS HAD MORE EXPENSIVE
LABOR COSTS IN CALIFORNIA, AND
THAT'S OKAY. UM, AND THE REASON
WHY IT'S OKAY WAS BECAUSE WE
WERE GROWING. AND WE WERE
BECOMING MORE COMPETITIVE AND
WOULD REINVEST IN OURSELVES AND
WE HAD GROWING MARKET SHARE.
SINCE 2005. WE'VE HAD DECLINING
MARKET SHARE. BUT WE'VE BEEN
DOING THAT IN A WAY WHERE WE
ALSO HAVE GROWING COSTS. AND
BECAUSE WE'RE A VOLUMETRIC
BUSINESS BECAUSE WE DO
EVERYTHING ON ECONOMIES OF
SCALE. OUR CUSTOMERS SEE COST
PER UNIT. SO WHEN YOU SEE US
BRING IN LARGER AND LARGER
VESSELS. THE COST TO OUR
CUSTOMER OF CONTAINER PER
OVERHEAD FOR THAT VESSEL GOES
DOWN PER UNIT THAT'S COMPETITIVE
ADVANTAGE. OVERSEEING WITH OUR
CUSTOMERS MOVING THEIR
DISCRETIONARY CARGO TO OTHER
PORTS IS THAT THEIR COST PER
UNIT ARE GOING DOWN. AND FOR ALL
THE THINGS REASONS THAT MS
ORTMANN CITED UM OUR COSTS HERE
ARE GOING UP OR WE'RE LOSING
CARGO. SO OUR COST PER UNIT ARE
GOING UP. AND THAT'S THE
OPPOSITE OF WHAT WE WANT. THAT
IS NOT HOW YOU YOU HAD DERIVED
HIGHER VOLUMES AND HOW YOU GET
MORE DISCRETIONARY CARGO. WE
NEED TO RECREATE THE VIRTUOUS
CYCLE THAT WE'VE HAD BEFORE. WE
KNOW WE NEED TO ACCOMMODATE, UM
, HIGHER ENVIRONMENTAL COSTS.
THERE'S ABSOLUTELY NO DOUBT BUT
WE NEED TO BE ABLE TO ADVERTISE
THOSE COSTS OVER DECADES. WE
NEED TO BE ABLE TO MAKE SMART
INVESTMENTS IN THE TECHNOLOGIES
THAT WE'RE DOING. WE NEED TO BE
ABLE TO MAKE SMART INVESTMENTS
IN OUR OUR INFRASTRUCTURE. WE
HAVE THE FRAMEWORK, INCLUDING
THE TENTATIVE AGREEMENT THAT WAS
JUST REACHED BETWEEN P M A AND L
W HAVE LABOR, STABILITY AND
PEACE ON THE WATERFRONT WITHOUT
QUESTION ABOUT WHAT THE PATHS
FORWARD ARE, UM, WITH THAT LABOR
FORCE, SO THANK YOU TO THAT W UM
, WE HAVE NO DOUBT WHAT THE
PREFERENCES OF THE STATE ARE
EVERYTHING THAT TOUCHES THE
CONTAINER IS REGULATED. WE HAVE
NO DOUBT THAT THE COURTS HAVE
MADE A COMMITMENT TO ZERO
EMISSIONS FUTURE SO AS THE
BUSINESS ENTITIES THAT ARE
FACILITATING THOSE THINGS WE
WANT TO BE ABLE TO MAKE
INVESTMENTS IN THE STATE. AND WE
WANT TO BE ABLE TO DO IT IN A
WAY WHERE WE'RE GROWING. WE'RE
MAKING THOSE WERE BEST
CONTRIBUTIONS WERE NOT SHRINKING
, AND WE'RE NOT BASICALLY
FIGHTING, YOU KNOW, UH, A
MANAGED RETREAT. THAT IS NOT
WHAT WE WANT TO DO. SO WE LOOK
FORWARD TO HAVING THIS
CONVERSATION IS GOING TO BE VERY
COMPLEX WILL BE HAPPENING FOR
MANY YEARS. BUT IT'S IMPERATIVE
THAT WE NEED TO HAVE IT. SO
THANK YOU. THANK YOU VERY MUCH,
AND THAT'S ONE OF THE REASONS
WHY WE'RE TALKING ABOUT THE NUTS
AND BOLTS TO BE EDUCATED. ONLY
FOR MYSELF, BUT ALSO FOR MY
COLLEAGUES, BUT ALSO FOR THE
GENERAL PUBLIC SO THAT WE CAN
UNDERSTAND WHAT WE NEED TO DO IS
A STATE IN ORDER TO KEEP OUR
FOOTING TO IN ORDER TO KEEP
CALIFORNIA MOVING AND HAVE A
VERY ROBUST, UM, ECONOMY. AND SO
I THANK YOU VERY MUCH FOR YOUR
TESTIMONY, AND WE WOULD ASK THAT
YOU JUST STICK AROUND A LITTLE
BIT A LITTLE BIT IN CASE THERE'S
QUESTIONS FROM THE DIOCESE. UM
AND SO NEXT UP, WE WANT TO
INVITE OUR NEXT SPEAKER RUDY
GONZALEZ, SECRETARY TREASURER
FOR THE SAN FRANCISCO UM,
BUILDINGS BUILDING AND
CONSTRUCTION TRADES COUNCIL AND
ALSO TOMMY VIÆT, UM, WHO IS A
BUSINESS DEVELOPMENT MANAGER FOR
THE INTERNATIONAL BROTHERHOOD OF
ELECTRICIAN? ALL WORKERS, SO
THANK YOU BOTH FOR BEING HERE.
AND WE'LL START WITH MR GONZALEZ
FIRST. IF IT PLEASES THE CHAIR.
I'D LIKE TO ASK BROTHER TOMMY TO
GO FIRST. OKAY? ABSOLUTELY. UH
GOOD AFTERNOON BROTHER CHAIR.
CARSON NATIVE, UH, LIVING CARSON
TELAFAR. UM I JUST WANTED TO
SPEAK TO WHAT OUR ORGANIZATION
OR LABOR ORGANIZATION, UM, HAS
THE PARTNERSHIP WITH BOTH PORTS
IN L, A AND LONG BEACH. MY
SERVICE TERRITORY COVERS BOTH
PORTS. AH AND ELLIE COUNTY AS A
WHOLE. UH I REPRESENT
INTERNATIONAL BROTHERHOOD OF
ELECTRICAL WORKERS LOCAL WE LIVE
IN, UM, UM IN LOS ANGELES. UH SO
WE DO PLAY A VITAL ROLE. IN THE
PORCH INFRASTRUCTURE. UM. FOR
THE PAST 15 20 YEARS. UH I'VE
BEEN HEAVILY INVOLVED WITH A LOT
OF THE INFRASTRUCTURE PROJECTS
THAT HAVE COME ACROSS. WITH THE
GOOD PARTNERSHIP WITH BOTH
BOARDS L A AND LONG BEACH UM,
AND THEIR HARVARD COMMISSIONS.
UH WE'VE IMPLEMENTED PROJECT
LABOR AGREEMENTS. UM FIVE YEAR
PROJECT LABOR AGREEMENTS. AND
THEN JUST RECENTLY, UM OF THE
PORT OF LONG BEACH JUST ADOPTED
SUPPORT WIDE PROJECT LABOR
AGREEMENT FOR 10 YEARS, UM AND
SUIT OF THAT THE PORTAL LAST
SENSELESS DID THE SAME AS WELL.
UM SO WE WE'VE SEEN LIKE THE
SUCCESSES OF WHAT PROJECT LABOR
AGREEMENTS. BRING FOR THE
ECONOMY, ESPECIALLY THE LOCAL
ECONOMY, AND HOW WE CAN PUT
LOCAL, UH YOU KNOW PEOPLE TO
WORK THE LIVES IN THE CARSON AND
THE HARVARD GATEWAY AREA. AND
THEN BOTH PORTS. THAT MEANS A
LOT TO YOU KNOW OUR MEMBERS AND
IN THE COMMUNITY MEMBERS AND
THEIR FAMILIES THAT LIVE IN
THOSE AREAS. UM I WANTED TO SAY
THAT YOU KNOW WHEN IT COMES TO
UM, YOU KNOW THE POLICIES THAT
THE REPORTS HAVE HAVE DONE WHEN
IT COMES TO THE CLEAN, CLEAN AIR
ACTION PLAN, THE CLEAN TRUCK?
UM, A PLAN. UH AND OTHER
POLICIES THAT THE PORTS YOU KNOW
, HAVE FOLLOWED. ESPECIALLY WHEN
IT COMES TO, UH, YOU KNOW, YOU
KNOW, GREETING THE PORTS. UM YOU
KNOW, WE PLAY A VITAL ROLE IN
NET. UM PARTNERING WITH THE
CERTAIN TERMINALS THAT ARE DOING
DEMONSTRATION PROJECTS. UM, WHEN
IT COMES TO ZERO EMISSIONS UM
YOU KNOW WHAT THEIR CARGO
HANDLING EQUIPMENT AND THEN
OTHER, YOU KNOW, LIKE SHIP TO
SHORT POWER. AND OTHER, YOU
KNOW, TECHNOLOGIES THAT'S IN
PLACE THAT THE PORTS HAVE PUT
OUT WHEN IT COMES TO OUR PS. UM
WE'VE BEEN DEDICATED, YOU KNOW,
TO WORKING CLOSELY, UH, WITH
WITH THE PARTNERS THAT ARE THAT
ARE HERE TODAY. UM AND YOU KNOW,
WORKING CLOSELY WITH YOU KNOW
THE I O W. ANOTHER TRADE UNIONS
IN BUILDING CONSTRUCTION TRADES
THAT ARE AFFECTED BY A LOT OF
THIS INFRASTRUCTURE. UM YOU
KNOW, MOVING FORWARD AND I HEARD
PIERRE W PAIR NGUYEN. I'VE HEARD
HYDROGEN. I'VE HEARD A LOT OF
THESE THINGS BEING PRODUCT. UM
YOU KNOW, WE'RE I B W WE'RE ALL
FOR THAT. YOU KNOW, WE LIKE TO
GREEN UP OUR POETRY LIKE TO
BRING GREEN HYDROGEN. UH, NOT
JUST TO THE PORTS, BUT THE COLOR
OF, UH, THE WHOLE CALIFORNIA AS
A WHOLE. UM AND YOU KNOW PURE W
THAT'S I THINK THAT'S GOING TO
BE A GREAT UM, YOU KNOW,
TERMINAL LOOKING FORWARD. UM AND
THE KEY ISSUES. UM, I THINK THE
PRIOR SPEAKER MENTIONED UM, THAT
WHEN IT COMES TO THE ELECTRICAL
GRID, RELIABILITY THAT'S GOING
TO BE A KEY KEY. YES, TRUE. OF
MAKING SURE AND ENSURING THAT WE
HAVE OUR UTILITY PARTNERS THAT
ARE ON BOARD, WORKING CLOSELY
WITH THE PORTS TERMINALS,
WORKING CLOSELY WITH THE HARBOR
DEPARTMENTS, UM, THAT THE GRID
AVAILABILITY IS GOING TO BE
THERE. UM AND I KNOW HOW
IMPORTANT THAT IS WITH L, A DWP,
THE LOCAL I O U AND SOUTHERN
CALIFORNIA EDISON, UH, THAT THAT
WILL BE AFFECTED BY IT AS WELL.
AH, SO YOU KNOW, WE HAVE LOCAL
CHAPTERS IN BOTH ENTITIES AND
WILL WORK CLOSELY WITH THEIR
LOCAL CHAPTERS ON THE OUTSIDE
BRANCH OF THE I B W BUT WE JUST,
UM WE'RE ALL FOR BRINGING MORE
INFRASTRUCTURE DOLLARS TO THE
PORTS. UH WE'D LIKE TO SEE MORE
IMPORTANT GRANTS. COMING DOWN
FROM BOTH STATE AND FEDERAL
LEVELS. UM BECAUSE WE'RE TALKING
ABOUT CREATING MORE GOOD
CONSTRUCTION JOBS IN THE NEAR
FUTURE. UM WE CURRENTLY HAVE
CLOSE TO 2000 APPRENTICES. IN
OUR APPRENTICESHIP PROGRAM. WE
WANTED THE LARGEST
APPRENTICESHIP PROGRAM IN THE
NATION. UM WE HAVE CLOSE TO
12,000 MEMBERS OF JOURNEYMEN AND
APPRENTICES, UH, THAT MAKE UP
THE GREATER LOS ANGELES AREA. UM
SO WITH THAT, IF THERE'S ANY
QUESTIONS THAT YOU HAVE FOR ME,
I'LL BE AROUND CANCER. THANK
YOU. THANK YOU VERY MUCH, MR
GONZALEZ. THANK YOU. OFFICIALLY
GOOD AFTERNOON, MR CHAIR AND
MEMBERS. FIRST I WANT TO
ASSOCIATE MYSELF WITH MEMBER
PAPIN. WHO UM, WELL, WE MAY HAVE
PORTS THAT ARE RELATIVELY SMALL
AND TERMS IN TERMS OF DOCKAGE
AND VOLUME. THE PORTS OF REDWOOD
CITY IN SAN FRANCISCO, CONTINUE
TO PLAY IMPORTANT ROLES, BOTH
FOR ECONOMIC VITALITY. UH, BUT
IN PARTICULAR, THERE IS
HISTORICAL CONTEXT THERE THAT I
THINK COULD SERVE AS AS WE'RE
FOLLOWING THIS THROUGH LINE OF
AN OVERARCHING OR AN OVERVIEW OF
SEAPORT ACTIVITY, A MODEL FOR
ADAPTATION AND CHANGE WITH AN
EMPHASIS ON CLIMATE RESILIENCY.
CERTAINLY A THROUGH LINE OF ALL
OF OUR COMMENTS TODAY WOULD BE
INFRASTRUCTURE AND WOULD BE
RISING SEA LEVELS AND THE
URGENCY THAT'S NEEDED TO REPAIR
OUR AGING SEAWALL IN SAN
FRANCISCO, WHICH IS OVER A
CENTURY OLD SO I HAVE SUBMITTED
MY COMMENTS, UH, IN WRITING
EARLIER THAT EARLIER TODAY, AND
I APPRECIATE YOUR STAFF. MR
CHAIRMAN. I JUST WANT TO COVER A
COUPLE OF KEY POINTS FROM MY
WRITTEN TESTIMONY. UM YOU KNOW,
WE STILL ARE A VERY IMPORTANT
MARITIME CITY. WE HAVE OVER A
MILE AND A HALF OF SHORELINE
ACCESS TO THE BAY IN SAN
FRANCISCO, AND IT'S MY JOB TO
REPRESENT ABOUT 26 DIFFERENT
UNIONS OF SKILLED JOURNEY
WORKERS AND APPRENTICES THAT
CONTRIBUTE TO THAT
INFRASTRUCTURE. WE ALSO
IMPORTANTLY, REPRESENT EVIL
SERVANTS WHO WORK FOR THE PORTS
AUTHORITY OR THE PORTS OF SAN
FRANCISCO. UM AND WHAT I HEAR
FROM THEM ON A REGULAR BASIS IS
THAT AND THIS RANGES FROM
IRONWORKERS TO UNDERWATER PILE
DRIVERS THAT THE CRISIS OF RIGHT
NOW IS REALLY AROUND OUR SEAWALL
INFRASTRUCTURE. AND TO THAT END
, IF THERE'S NOTHING ELSE TAKEN
AWAY FROM MY BRIEF COMMENTS,
IT'S THAT S T A HAS A REALLY
IMPORTANT ROLE TO PLAY IN
CONTINUING TO FUND THESE EFFORTS
, PARTICULARLY WHEN LOCAL
JURISDICTIONS LIKE OURS, PASS
IMPORTANT BONDS AND PUT IT PUT
SKIN IN THE GAME AS A AS THEY
SAY, IN TERMS OF LOCAL DOLLARS.
WE REALLY NEED PARTNERSHIP FROM
THE STATE AND THE FEDERAL
GOVERNMENT TO MAKE THOSE REAL
WHETHER THE PORTS IS SOLELY
FOCUSED ON TOURISM, OR IT'S
IMPORTANTLY, LIKE IN OAKLAND AND
LONG BEACH AND IN OTHER AREAS
FOCUSED ON THE MOVEMENT OF GOODS
AND PERSONNEL. UM I'D ALSO BE
REMISS IF I DIDN'T TALK ABOUT
KIND OF THE ADAPTATION AND THE
HISTORY AROUND OUR PORTS.
AIRPORT SERVED. ALONGSIDE OF THE
LONGSHOREMEN ALONGSIDE OF MANY
OTHER MARITIME UNIONS AS AN
IMPORTANT CENTER, NOT JUST IN
THE GOLD RUSH IN THE HISTORY OF
OUR STATE AND THE FOUNDING OF
OUR STATE, BUT IT HELPED US WIN
TWO WORLD WARS. THE ADAPTATION
INTO SHIPYARDS AND DRY DOCKS. UM
WAS REALLY IMPORTANT. IT WAS
ALSO IMPORTANT TO SOCIAL
ECONOMIC LEVEL BECAUSE THE ONCE
THRIVING BLACK COMMUNITY THAT WE
NO LONGER HAVE IN SAN FRANCISCO
THAT WERE FRANKLY DESPERATE TO
HOLD ONTO AND IT WEREN'T FOR
LOCAL 10 IN SAN FRANCISCO AND
MANY OF OUR TRADES. I DON'T
THINK MANY PEOPLE OF COLOR WOULD
EVEN EXIST IN SAN FRANCISCO. BUT
IMPORTANTLY WHEN OUR SHIPYARDS
WERE ACTIVATED AT THEIR PEAK
THAT ALLOWED THE ECONOMIC
OPPORTUNITY FOR BLACK WORKERS AT
THE TIME TO MOVE WEST TO SAN
FRANCISCO TO SET DOWN ROOTS AND
TO BECOME WHAT IS NOW KNOWN AS
THE HUNTERS, POINT AREA, THE
BAYVIEW AND THE SHIPYARD AREA.
IT ALSO SERVES AS A WARNING TO
US THAT WHEN THESE MODELS ADAPT
AND SHIFT IF WE'RE NOT FOCUSED
ON THE RIGHT THINGS IN THE RIGHT
ORDER IN THE RIGHT PRIORITY. WE
STAND TO DECIMATE LIVES DECIMATE
GENERATIONAL WEALTH TO DEPRIVE
PEOPLE OF HEALTH OUTCOMES THAT
WE BELIEVE ARE JUST FUNDAMENTAL
AND PART OF THEIR HUMAN RIGHTS.
SO THERE'S A DOMINANT THEME
AROUND ECONOMIC VITALITY. BUT I
THINK WE ALSO NEED TO FOCUS ON
THE INFRASTRUCTURE ASPECT
BECAUSE THE INFRASTRUCTURE
INVESTMENTS CAN PROVIDE
SOLUTIONS TO THE SOCIAL ECONOMIC
ISSUES TO THE ENVIRONMENTAL
ISSUES. I'M VERY PROUD TO BE AN
AFFILIATE OF THE STATE BUILDING
AND CONSTRUCTION TRADES COUNCIL
AND ONE OF THE I THINK FOUR OR
FIVE DIFFERENT COUNCILS THAT
HAVE SIGNED ON TO A KHADEM Ó
OFFSHORE WIND PROJECT LABOR
AGREEMENT. ONE OF THE THINGS
THAT THE SKILLED TRADES BRING TO
THE MARITIME PORTS TRADES
COUNCIL. ARE THAT WHEN OUR
PARTNERSHIP COMES WITH THE
DEVELOPMENT, WHETHER IT'S A
WORLD CLASS ENTERTAINMENT VENUE,
OR, YOU KNOW, WE HAVE LESS
BATTLESHIPS MORE CRUISE SHIPS
THESE DAYS IN SAN FRANCISCO, UM
ALONG THE TOURISM LINES, YOU
NEED A SKILLED WORKFORCE THAT IS
CAPABLE OF MEETING THAT MOMENT.
YOU NEED TRAINED PERSONNEL. AH
AND OUR UNIONS BOTH FROM THE
LONGSHOREMEN SIDE AND INTO THE
SKILLED TRADES. UM WE DO THAT
SECOND TO NONE. WE HAVE THE
CAPACITY TO MEET ANY EFFORT.
TOURISM NATIONAL DEFENSE GOODS,
MOVEMENT OR THE EXCITING
OPPORTUNITIES THAT OFFSHORE WIND
REALLY PRESENT TO OUR STATE IN
THE NATION, AND WE CAN BE A
MODEL FOR THAT, NOT JUST BECAUSE
OF OUR CALM SEA CONDITIONS AND
IMPORTANT GEOGRAPHIC ASPECTS OF
SAN FRANCISCO'S BAY, BUT WE ALSO
BRING LABOR PEACE WITH US WHEN
THE IMPORTANT I'LL W YOU SECURED
THEIR PACK MUCH LIKE WHEN THE
TEAMSTERS SECURED. THERE'S WITH
UPS. THESE ARE INDICATORS AND
ALSO GUARANTEES OF ECONOMIC
STABILITY UNDER THOSE LABOR
AGREEMENTS. UM ALSO, UH, YOU
KNOW THAT COMES TO WITH THE
PARTNERSHIP OF THE STATE
BUILDING TRADES AND OUR LOCAL
BUILDING TRADES COUNCILS. UM, I
ALSO WANTED TO BRIEFLY TALK
ABOUT, UM SOME EXCITING
DEVELOPMENTS THROUGH THAT
ADAPTATION THAT HAVE HAD A LENS
TOWARDS EQUITY AND DIVERSITY IN
OUR SKILLED TRADES. UM I SAID IT
AND I'LL KEEP SAYING IT LESS
BATTLESHIPS, MORE CRUISE SHIPS,
BUT WE'VE ALSO FOUND WAYS TO
LEVERAGE PUBLIC PRIVATE
PARTNERSHIPS ALONG SPORT OWNED
LAND TO CREATE ECONOMIC
OPPORTUNITIES AND TO ADDRESS
EXISTING CRISES LIKE OUR HOUSING
CRISIS, SO WHETHER IT WAS THE
SAN FRANCISCO GIANTS AND
ESTABLISHING NEW FERRY TERMINALS
FOR THEM OR FOR THE CHASE CENTER
, OR IT WAS SPECIFIC TO
MANUFACTURING AND RECYCLING
APPARATUS. WE HAVE FOUND WAYS TO
REACTIVATE OUR AGING PORTS. UM
THERE ARE EXCITING OPPORTUNITIES
EVEN BEFORE THIS LEGISLATURE
THAT INCLUDE PIERCE 30 32. UH
SENATOR WEINER HAS A BILL MOVING
THROUGH THE PROCESS TO SUPPORT
THAT GROWTH. UM THESE ARE
PROJECTS THAT ARE NOT JUST FOR
ECONOMIC ACTIVITY, BUT THEY ARE
ALSO OPPORTUNITIES TO IMPROVE
THE ENVIRONMENTAL OUTCOMES AND
THE EMERGENCY PREPAREDNESS OF
OUR WATER LINE, WHICH IS A
UNDERSTATED, I THINK, UM, ASSET
TO THE ENTIRE BAY AREA
COMMUNITY. UM I CAN'T SAY ENOUGH
ABOUT, UM OFFSHORE WIND. IT.
REALLY YOU KNOW, WE HAVE A
GLOBAL, UM, OUTFIT THAT WERE IN
TALKS WITH THEY WANT TO LOOK AT
THE WEST COAST PORTS AS KEY
FABRICATION AND MANUFACTURING
ENTITIES AND I'M SURE I WOULD BE
IN AGREEMENT WITH MY SIBLINGS
HERE IN THIS PANEL THAT REAL
ESTATE DEVELOPMENT AND
COMMERCIAL DEVELOPMENT IS
EXCITING AND SOMETIMES SHINY,
AND THAT'S THE THING WE WANT TO
DO WITH WHAT PEOPLE PERCEIVE TO
BE UNDERUTILIZED COURT PROPERTY
, BUT I THINK WE ALSO HAVE IN
ADDITION TO NATIONAL DEFENSE AND
READINESS NEEDS. WE ALSO NEED TO
THINK ABOUT WHAT NEW TECHNOLOGY
ON THE HORIZON AND WHAT
ENVIRONMENTAL EFFORTS WERE
MANDATING AND PUTTING ON
OURSELVES. THAT THAT COURT
PROPERTY MAY BE NECESSARY TO
DELIVER. AND SO WHILE SOME
PEOPLE WOULD LIKE TO LOOK AT IT
AS AN INVESTMENT OPPORTUNITY
EXCLUSIVELY, I THINK WE ALSO
HAVE TO KEEP IN MIND. UM WE'RE
TALKING ABOUT A LIMITED UNIVERSE
OF GEOGRAPHY HERE, AND WE HAVE
TO BE VERY THOUGHTFUL AND
RESPONSIBLE ABOUT WHAT TYPES OF
DEVELOPMENTS ARE SUPPORTED WHAT
TYPES OF PROJECTS ARE FUNDED,
AND FRANKLY, ALL OF IT IS GOING
TO REQUIRE YOUR LEADERSHIP
AROUND THE INFRASTRUCTURE PIECE.
SO BE AN OFFSHORE WIND. OR
MARITIME READINESS. UM WE
BELIEVE THAT THIS COMMITTEE'S
WORK IS GOING TO PLAY A VITAL
ROLE FOR THE STATE OF CALIFORNIA
TO MEETING ITS CLIMATE GOALS.
CERTAINLY THERE'S ALWAYS A GDP
OR A BALANCE SHEET OPPORTUNITY
HERE. UM BUT THERE ARE REAL
PEOPLE REAL LIVES. REAL HEALTH
OUTCOMES. ALL WILL BE BENEFITED
THROUGH YOUR LEADERSHIP AND
PARTNERSHIP AT THE STATE LEVEL.
SO I THANK YOU AND WELCOME ANY
QUESTIONS. THAT THE COMMITTEE
MAY HAVE THANK YOU VERY MUCH.
AND THANK YOU TO THE PANEL FOR
AGAIN YOUR TESTIMONY HERE BEFORE
THE SELECT COMMITTEE. MY FIRST
QUESTION IS HISTORICALLY WHAT
HAS BEEN SOME OF THE BIGGEST
ISSUES THAT THE SHIPPING
INDUSTRY HAS FACED. UM WHAT WERE
SOME OF THE SOLUTIONS THAT WERE
WAS IMPLEMENTED TO TRY TO
ADDRESS SOME OF THOSE
CHALLENGES. SO WHOEVER WANTS TO
TAKE THAT I'LL START MR CHAIRMAN
, AND THEN I'LL HAND IT OFF TO
MR HERRERA. UM, YOU KNOW, I
THINK. I ALLUDED TO IT. UM OUR
BIGGEST ISSUES REALLY HAVE
MANIFESTED THEMSELVES IN THE
LAST 18 YEARS. IT IS
COMPETITION. UH WE HAVE BEEN IN
A PLACE WHERE WE WERE ABLE TO
TAKE THE REVOLUTION THAT WAS
CONTAINER IZATION AND, UM WE
WERE POISED TO TAKE ADVANTAGE OF
THAT, AND WE DID. WE HAD PORTS
WHO ARE READY TO INVEST. UM AND
THAT TECHNOLOGY WE HAD A WILLING
WORKFORCE WAS ONE THAT WAS READY
TO DO IT AND WE HAD THE ASSETS
THAT WERE THERE. SO THE DAWN OF
CONTAINER IZATION, THE PART OF
OAKLAND BECAME THE BIGGEST
CONTAINERIZED PORTS IN THE
WORLD. UM AND NOT LONG AFTER
THAT. L A AND LONG BEACH STARTED
MAKING THEIR INVESTMENTS AS
WELL. THE STATE WAS POISED TO
MAKE THOSE INVESTMENTS AND DO IT
WITH MINIMAL COST. AND I WILL
SAY THAT'S IN A CONTEXT WHERE
THERE'S NO FEDERAL INDUSTRIAL
POLICY THAT SUPPORTS TRADE. SO
UNLIKE A LOT OF OTHER NATIONS
THAT ACTUALLY INVEST IN THEIR
FREIGHT INFRASTRUCTURE THAT DOES
NOT HAPPEN IN THE UNITED STATES
, IT IS NOT HISTORICALLY
HAPPENED HAS BEEN UP TO STATES
TO DO IT ON THEIR OWN. WE WERE
BLESSED BY BEING ON THE PACIFIC
RIM AND ABLE TO TAKE ADVANTAGE
OF BLOSSOMING TRADE WITH
DEVELOPING ECONOMIES AND FIRST
IN JAPAN. UM AND THEN AFTER WE
OPENED UP CHINA WITH THE CHINA
TRADE THAT THAT IS GOING TO
CONTINUE TO HAPPEN. BUT EVERYONE
ELSE HAS GOTTEN WISE TO IT. AND
THEY SEE ALL THE BENEFITS THAT
COME WITH IT. UM AND SO WE NEED
TO NOT TAKE THAT FOR GRANTED. WE
CAN'T TAKE OUR GEOGRAPHIC
LOCATION FOR GRANTED. UM AND WE
CANNOT ESSENTIALLY STEP ON OUR
OWN TOES, WHICH IS WHAT WE'VE
BEEN DOING. WE HAVEN'T BEEN RE
INVESTING IN OUR INFRASTRUCTURE
. AT THE SAME TIME. WE'VE BEEN
MANDATING MORE COSTS. UM AND AT
THE SAME TIME, AS MRS NORTON
POINTED OUT OUR COMPETITORS ARE
COMPETING. THEY'RE INVESTING
THEIR PUTTING IN TAX CREDITS
THERE DIRECTLY SUPPORTING THE
INFRASTRUCTURE. SO AGAIN WHILE
WE SUPPORT THE FACT THAT THIS
LEGISLATURE THE PREVIOUS
LEGISLATURE. THIS GOVERNOR
DURING THE PANDEMIC, STEPPED UP
AND HAVE PUT A LOT OF MONEY INTO
IT AND ARE LOOKING FORWARD ON
ISSUES LIKE Z E AND SAYING WE
NEED TO GET AHEAD OF THIS AND
PUT THAT MONEY IN PLACE. IT
NEEDS TO BE DONE IN A CONTEXT IN
THE CONTEXT HAS TO BE THAT WE'RE
COMPETING FOR THIS CARGO. UM
I'LL HAND IT OFF TO MR HERRERA.
THANK YOU VERY MUCH. UM AND YOU,
YOU, YOU, YOU LIFT IT UP, YOU
KNOW, TAX CREDITS FOR THE PORTS
. AND SO I JUST WANT TO LET YOU
KNOW THAT WE ARE CERTAINLY
TAKING NOTES TO ALL THESE IDEALS
ARE MOVING FORWARD AND NOT
FALLING ON DEAF EARS. WE
APPRECIATE YOU OFFERING UP
SOLUTIONS THAT FACE CALIFORNIA.
THANK YOU. THANK YOU. MR
HERRERA. THANK YOU.
ASSEMBLYMEMBER'S GIVES IN TO
ANSWER YOUR QUESTION. I BELIEVE
SOME OF THE BIGGEST CHANGES
WE'VE SEEN IN THE SHIPPING
INDUSTRY FOR US DIAL W IS THE
AUTOMATION PIECE. COMING IN, IS
PLACING THE WORKFORCE. AND AS
WE'VE SEEN IT WE'RE STARTING TO
UNDERSTAND IT. BUT I THINK TO
UNDERSTAND IS TO REALLY KNOW THE
BEST WAY TO DO THAT IS TO HAVE
ZERO EMISSION OR NEAR ZERO
EMISSION PIECE OF EQUIPMENT WITH
THE HUMAN OPERATOR. I THINK
HAVING BOTH OF THOSE COMPONENTS
IS WHERE WE NEED TO START
HEADING. AND I THINK WE PROVED
IT DURING THE PANDEMIC WHEN WE
WERE BREAKING RECORDS AND
STACKING THE CARGO ALL THE WAY
UP TO THE BACK OF THE FENCES AND
FINDING OPEN LAND TO STORE
CONTAINERS. AND WE DID THAT
EFFORTLESSLY. AND I THINK AT THE
SAME TIME WHEN WE SEE THE
AUTOMATION COME IN. WE SEE THAT
WE WORK BETTER THAN AUTOMATION,
BUT WE ALSO WANT THAT CLEAN
GREEN. SO THROUGH THESE YEARS OF
CHANGE, WE NEED TO ADAPT AND
BRING US ALONG. AND ALSO HAVE A
CLEAN ENVIRONMENT. AND I THINK
THAT THAT'S BEEN THE BIGGEST
CHANGE WE'VE SEEN RECENTLY. AND
BUT WE'VE PROVEN WE CAN KEEP THE
CARGO HERE AND WITH THE
ALTERNATIVE WAYS TO KEEP US IN
THAT MACHINE. WITH IT BEING
CLEAN. THEY'RE OUT THERE AND I
THINK WE NEED TO KEEP THAT
DIALOGUE OPEN AND KEEP THAT
DISCUSSION OPEN AND KEEP
INVESTING IN HUMANS AND IN CLEAN
, UH, CARGO HANDLING EQUIPMENT
TOGETHER, AND I THINK IT WOULD
BE AMAZING TO SEE THE OUTCOME
WHEN THAT HAPPENS. AND I THINK
THOSE CHANGES AND THOSE ARE
THINGS THAT WE'VE ADAPTED AND
WE'RE WORKING TOWARDS. SO
HOPEFULLY THE ANSWERS THE
QUESTION. WHAT? WE'VE SEEN THE
CHANGES AND WHERE WE NEED TO GO.
THANK YOU VERY MUCH. ANYONE ELSE
WANT TO TAKE A STAB AT THAT
QUESTION? IF NOT LET ME OPEN
THIS. OKAY? ARMY I LIKE TO
MENTION THE ONE THIS WAS BACK
IN, UM NOVEMBER, MID NOVEMBER OF
2021 DURING THE PANDEMIC. AND,
UM. WE HAD A LARGE RENEWABLE
PROJECTS SOLAR RENEWABLE PROJECT
IN RIVERSIDE, ONE OF THE LARGEST
IN THE COUNTRY. I THINK OVER
1000 MEGAWATTS, UM AND AT THAT
TIME WE WERE STARTING TO GET
NOTICED FROM OUR CONTRACTORS. IN
THE I B W RIVERSIDE THAT, UM
THEY WERE HAVING SUPPLY CHAIN
ISSUES. UM AND THAT THEIR CARGO
WAS GOING TO TAKE, UM THREE
MONTHS, MAYBE FOUR MONTHS
BACKLOG. AND, UM. UM THE
BUSINESS MANAGER CALLED ME UP
AND SAID, HEY, CAN YOU KNOW? CAN
WE GET A HOLD OF YOU KNOW, THE
PORTAL LONG BEACH IN THE PORT OF
LOS ANGELES? UM AND SEE HOW WE
CAN GET THOSE CARGO. HERE YOU
KNOW, ON OUR JOB SITE, SO YOU
KNOW, WE JUMP. WE JUMP TO IT AND
, YOU KNOW, I JUST WANTED TO SAY
, YOU KNOW, YOU KNOW, WITH THE
BOOK WITH BOTH PORTS. YOU KNOW,
WORKING HAND IN HAND, IT
WOULDN'T BE POSSIBLE. TO GET
THOSE CONTAINERS. UM AND THE
HELP OF THE IOW AND OUR
TEAMSTERS. YOU KNOW THAT, UH,
UNLOADED THOSE CONTAINERS AND
DELIVERED IT TO, UH, THE LARGE
PROJECT IN RIVERSIDE, AND IT WAS
AROUND THE TIME WHEN YOU KNOW
THANKSGIVING IS COMING AROUND
AND CHRISTMAS AND WE'RE LOOKING
AT 200 ELECTRICIANS BEING LAID
OFF AND 300 IRON WORKERS BEING
LAID OFF. AND THAT WAS GONNA BE
A BIG DETRIMENT. YOU KNOW, TO
OUR MEMBERSHIP AND TO THE
IRONWORKERS MEMBERSHIP AT THE
TIME AND THE PORT OF LONG BEACH
, YOU KNOW, THANKS TO MARIO
CORDERO AND NOEL AND YOU KNOW
THEY'RE CONTAINER DEPARTMENT.
THEY HELPED OUT YOU KNOW,
IMMEDIATELY. THEY YOU KNOW, THEY
JUMPED ON IT RIGHT AWAY. THEY
TALKED TO THE SHIPPING OWNERS.
UH AND A LOT OF THAT MATERIAL
WAS ON THE WATER. AND ON THE
DOCKS, AND THEY MOVED ALL THOSE
MATERIAL. UM YOU KNOW TO THE TO
THE DOCKS AND THEN GOT UNLOADED
AND TRUCK UNLOADED TO THE TO THE
CITY OF RIVERSIDE. AND UH, YOU
KNOW, JUST WORKING, YOU KNOW
WITH, YOU KNOW, WE'RE CLOSELY
WITH SUPPLY CHAIN. I THINK IF WE
DIDN'T DO ANYTHING YOU KNOW THE
MATERIAL STOOD STILL WOULD HAVE
BEEN LIKE, YOU KNOW. IN, YOU
KNOW, BEHIND YOU KNOW, BEHIND
THE LOG AND EVERYTHING SO YOU
KNOW, IT'S GOOD THAT WE WORK
TOGETHER ON THIS. I JUST WANT TO
MENTION THAT. THANK YOU VERY
MUCH. HAVE ANOTHER QUESTION. HOW
HAS THE RELATIONSHIP BETWEEN?
UM, THE COURT ADMINISTRATION?
AND THE UNIONS CHANGED OVER THE
YEARS. IS THERE MORE THAT COULD
BE DONE? UM, UM, ON EITHER SIDE.
I THINK, UH, WELL, THANK YOU FOR
THE QUESTION. ASSEMBLYMEMBER'S
GIBSON AND I LIKE TO ANSWER THAT
BY SAYING I THINK THE
RELATIONSHIP HAS BUILT TO A
REALLY GOOD RELATIONSHIP AS WE
SEE IT TODAY. UM, I THINK THERE
IS MORE OF A RESPECT BETWEEN
LABOR AND MANAGEMENT AND THE
LOCAL LEVELS OF SUPPORT
EXECUTIVES. BETWEEN JEAN SOROKA,
MARIO CORDERO. AND HAVING LABOR
INVOLVED. IT'S BEEN REALLY
IMPERATIVE THAT THEY'VE BEEN
CALLING US AND ASKING OUR
OPINION BECAUSE WE ARE THE
EXPERTS ON THE WATERFRONT. I'M
SURE WITH OTHER LABOR UNIONS AS
WELL. I THINK AS WE MOVE FORWARD
, WE GOT TO CONTINUE THAT
DIALOGUE. WE'VE GOT TO BE AT THE
TABLE AND HAVE IT UNDERSTANDING
THAT AND HAVE AN OPEN DIALOGUE
DIT WHAT EACH PARTY CAN GIVE TO
GET THE SUPPLY CHAIN TO ITS
MAXIMUM IS BEST. AND I THINK BY
DOING SO, AND WHAT WE HAVE BEEN
DOING THE FOUNDATION HAS BEEN
SET, ESPECIALLY I BELIEVE SINCE
THE PANDEMIC, IT'S CREATED A
MORE OPEN DIALOGUE. AND I'M
LOOKING FORWARD TO IT, BUT I
THINK WE NEED TO CONTINUE
KEEPING THAT DIALOGUE OPEN AND
OPENED WITH CALLS WITH
TESTIMONIALS WITH BRINGING
PEOPLE TO THE MEETINGS AND NOT
TRYING TO EXCLUDE HIM. BUT I
THINK WE'RE THERE. I THINK WE
CONTINUE TO DO THAT. SO I THINK
THE RELATIONSHIP IS REALLY GOOD.
AND I THINK WE CAN BUILD ON THAT
EVEN MORE, EVEN TO THE POINT
WHERE WE'RE TALKING TO. YOU
KNOW, WHEN WE SPEAK WITH P M S A
S S A UM AND PM A. YOU KNOW, WE
HAVE TO HAVE THAT RELATIONSHIP.
WE'RE TOGETHER IN THIS IN AND
THEN YOU HAVE TO HAVE THAT OPEN
DIALOGUE, SO I THINK WE'RE THERE
AND WE'RE GOING TO CONTINUE IT.
RIGHT BEFORE WE TRANSITION TO
OUR NEXT, UM, PANEL. I THINK
IT'S IMPORTANT. I WANT TO GO
BACK TO A CONVERSATION. QUESTION
THAT MY COLLEAGUE VICE CHAIR OF
THIS COMMITTEE, VINCE FOG MADE
MENTION REGARDING THE EMISSIONS
CAP. AND WHAT DOES THAT MEAN?
AND I WANT TO SPECIFICALLY ASKED
THIS COMMITTEE BECAUSE YOU
REPRESENT THE OWNERS AND YOU
REPRESENT, UH THE MEN AND WOMEN
AND THE PORTS AND THINGS OF THAT
NATURE. WHAT IS YOUR CONCERN?
AND CAN YOU ARTICULATE. WHAT
DOES THIS MEAN FOR THE WORK THAT
YOU DO AND THE BUSINESS
INTERESTS OF OUR PORTS? UM
REALIZING THAT, UH, MAYBE ONLY
SPEAKING FOR LOS ANGELES OR LONG
BEACH, BUT, UM, IF YOU CAN
CREATE EXPANSION IN TERMS OF
CALIFORNIA, UM IF WELL, NO,
BECAUSE IT'S ONLY SPECIFICALLY
FOR THE PORTS AND BECAUSE A Q M.
D SO IF YOU CAN JUST TALK ABOUT
THAT, SURE, HAPPY TO AND THEN
I'LL PASS IT OVER TO MR HERRERA
AGAIN AS WELL. UM IT'S AN
EXCELLENT QUESTION. THANK YOU.
THE THERE'S SOME PRIMARY ISSUES
WITH WHAT'S BEING PROPOSED, UM,
THAT HAVE TO DO WITH
JURISDICTIONAL ISSUES, BIG
PUBLIC POLICY ISSUES AND WE NEED
TO ADDRESS THOSE. AND THEN
THERE'S SOME SPECIFIC QUESTIONS
WE HAVE ABOUT THINGS LIKE ARE
THEY PROPOSING A CARGO CAP?
BECAUSE IT LOOKS LIKE THEY ARE.
THEY'VE TOLD US THEY ARE AND IF
THEY DID THAT, THAT WOULD JUST
BE FRANKLY UNTENABLE. BUT BEFORE
WE GET TO THAT. THERE'S A LOT OF
BIG PICTURE ISSUES FOR US. ONE
OF THEM IS THE STATE OF
CALIFORNIA IS THE PRIMARY
REGULATOR OF EVERY MOBILE SOURCE
THAT TOUCHES A CONTAINER. IN
REPORT THERE WAS THERE'S A
MYTHOLOGY OUT THERE ABOUT HOW
THINGS ARE UNREGULATED. THAT IS
JUST NOT THE CASE. EVERY VESSEL
HAS ITS FEEL REGULATED BY THE
CALIFORNIA AIR RESOURCES BOARD.
EVERY VESSEL WHEN IT COMES TO
BIRTH HAS TO MAKE A
DETERMINATION TO PLUG IN AT THE
DIRECTION OF THE CALIFORNIA AIR
RESOURCES BOARD. EVERY SINGLE
TRUCK IS SUBJECT TO THE
REGULATIONS OF THE CALIFORNIA
AIR RESOURCES BOARD. RAGE FLEETS
SPECIFICALLY HAVE ADDITIONAL
RULES, AND THOSE ARE ADDRESSED
BY THE ADVANCED CLEAN TRUCK
ROLL, WHICH WAS JUST ADOPTED. IN
ADDITION TO RULES THAT HAVE BEEN
IN PLACE FOR DRAINAGE FLEETS
SINCE 2008 WE HAVE THE SAME
THING FOR CARGO HANDLING
EQUIPMENT. EVERY PIECE OF CARGO
HANDLING EQUIPMENT TURNS OVER
HAS TO BE A BEST AVAILABLE
RETROFIT OR CONTROL TECHNOLOGY
OF ITS DIESEL, AND THAT'S BEEN
IN PLACE SINCE 2008 AND THOSE
HAVE RESULTED IN THESE
REDUCTIONS THAT MS ORTMANN
REFERENCED IN HER TESTIMONY.
DIESEL EMISSION REDUCTIONS AT
THE PORTS ARE DOWN OVER 90% ALL
THE COMMERCIAL HARBOR CRAFT IN
THE IN THE PORTS. ALREADY
REGULATED ALL OF THE RAILYARD
EMISSIONS FROM THEIR EQUIPMENT
ALREADY REGULATED AND THEN THE
RAILROADS THEMSELVES HAVE
MULTIPLE MOU IS WITH THE
CALIFORNIA RESOURCES WORRIED
ABOUT ENGINES EMISSIONS. NOTHING
IS NOT REGULATED OR ACCOUNTED
FOR. BUT IT'S IN A CONTEXT AND
THE CONTEXT IS THERE STATEWIDE
RULES THAT HAPPENED UNDER THE
AUSPICES OF THE FEDERALLY P A
AND THE CLEAN AIR ACT. AND
THAT'S IMPORTANT TO US BECAUSE
WE MOVE EVERYTHING AND
INTERNATIONAL AND INTERSTATE
COMMERCE. WE NEED TO HAVE
UNIFORM RULES THAT APPLY ACROSS
MULTIPLE JURISDICTIONS IN
CALIFORNIA, HAS THE STRICTEST
RULES ON THE BOOKS AND THE
CLEANEST OPERATIONS OF ANY PLACE
IN NORTHERN CALIFORNIA. I'M
SORRY IN NORTH AMERICA, IF NOT
THE WORLD. UM AND SO WE'VE
EMBRACED THOSE, BUT THAT'S THE
CONTEXT. WHAT WE'RE BEING ASKED
TO DO IN SOUTHERN CALIFORNIA
UNDER THE INDIRECT SOURCE RULE
IS HAVE VERY LOCAL RULES, WHICH
POTENTIALLY IMPACT INTERNATIONAL
AND INTERSTATE. COMMERCE NOT
JUST BECAUSE THE COMMERCE IS
OCCURRING. IS THAT A PROBLEM BUT
BECAUSE THE SOURCES OF EMISSIONS
THAT THEY'RE TRYING TO REGULATE
ARE IN THAT COMMERCE UM, SO A
VESSEL. COMING TO THE STATE OF
CALIFORNIA. SHOULD NOT HAVE
MULTIPLE RULES. IF YOU GO TO L,
A AND LONG BEACH, YOU SHOULD
HAVE THE SAME RULE THAT OCCURS
IN OAKLAND. AND WE BELIEVE THAT
SAME RULE SHOULD ALSO BE IN
PLACE FOR THE REST OF THE
COUNTRY, WHICH IS WHAT HAPPENS
WHEN YOU HAVE STANDARDS THAT ARE
ADOPTED UNDER THE FEDERAL CLEAN
AIR ACT BY THE STATE OF
CALIFORNIA. SECONDARILY THE
ISSUE OF THE ACTUAL THROUGHPUT
CAPS IS VERY DANGEROUS. WHAT
HAPPENS IF THAT GOES FORWARD? WE
DON'T KNOW, BECAUSE WE HAVEN'T
SEEN THE LANGUAGE, BUT WE'VE
SEEN THE PROPOSAL. AND THE
PROPOSAL ESSENTIALLY SAYS ONCE
YOU HIT A CAP OR A FINITE NUMBER
OF CONTAINERS THAT HAVE MOVED
THROUGH A TERMINAL. YOU CANNOT
LAWFULLY MOVE ANOTHER CONTAINER
WITHOUT BEING VIOLATION OF THE
LAW. UNDER OUR LEASES WITH THAT
WE HAVE WITH THE PORTS. WE
CANNOT KNOWINGLY VIOLATE THE
LAW. IT IS WELL, WE'LL LOSE OUR
LEASE, EVEN IF YOU WANTED TO
VIOLATE THE LAW, WHICH NONE OF
OUR MEMBERS WANT TO DO. UM WE
YOU CAN'T PAY A MITIGATION FEE.
YOU CAN'T YOU CAN'T MAKE
DETERMINATIONS ABOUT WHAT MIGHT
BE ECONOMICALLY EFFICIENT OR OR
WENT TO INVEST IN EQUIPMENT
VERSUS NOT IT'S JUST A HARD CAP.
SO IF WE HAD, YOU KNOW, A CAP OF
10 MILLION TO USE AND YOU HIT
THAT NUMBER IN OCTOBER. YOUR
DARK IN NOVEMBER AND DECEMBER.
WE JUST THINK THAT THAT THAT
MAKES NO SENSE AND MR ERA I KNOW
YOU HAVE SOME SOME THOUGHTS
ABOUT THE SAME. THANK YOU VERY
MUCH, MR HERRERA. ABSOLUTELY AND
I BELIEVE EVERYTHING. SPEAKER
JUST SPOKE ABOUT IS EXACTLY THE
WAY WE FEEL AS WELL, BUT IT'S
DEVASTATING TO THE COMMUNITY AS
WELL. YOU KNOW YOU'RE TALKING
ABOUT JOB LOSS. YOU'RE TALKING
ABOUT THE COMMUNITY TALK ABOUT
THE LOCAL BUSINESSES TO RELY ON
THE WORKERS. THIS IS GONNA BE
DEVASTATING TO THE PORTS OF L, A
AND LONG BEACH. IT WON'T BE
COMPETITIVE AT ALL. THEY WILL
SEND THE CARGO TO THE OTHER
PORTS ACROSS THE COUNTRY. AND TO
CALIFORNIA THAT'S DEVASTATING.
THE AS I MENTIONED EARLIER, AND
IT WAS PRESENTED IT SAID, EVEN
IF YOU WERE TO FULLY AUTOMATE
EVERY TERMINAL IN L, A LONG
BEACH, YOU STILL WOULD NOT BE.
REACH REACH THE GOALS THAT
THEY'RE ASKING OF. THEY'RE
UNATTAINABLE. AND WHAT THEY'RE
DOING IS WHAT WE BELIEVE IS.
THEY'RE GOING TO DESTROY. THIS
ENGINE. THE THAT MAKES US THE
FOURTH LARGEST ECONOMY IN THE
WORLD. THEY'RE GOING TO DESTROY
IT. AND I BELIEVE THAT WE ALL
HAVE TO BE ON THE FRONT LINE OF
THIS. TO UNDERSTAND IT AND HAVE
THEM EXPLAIN. TO US HOW THIS IS
BENEFICIAL TO CALIFORNIA. INTO
THE WESTERN PART OF THE UNITED
STATES. SO WE FEEL TRULY
DETRIMENTAL TO THE COMMUNITY TO
OUR JOB LOSS TO CALIFORNIA. AND
EVERYTHING THAT PREVIOUS SPEAKER
SAID. WE'RE COMPLETELY IN LINE
WITH THEM. AND, UH, WE'RE ALL
TRYING TO FIGHT IT. PRESERVE OUR
L, A AND LONG BEACH PORTS. YOU
KNOW AS BEING THE FOURTH LARGEST
ENGINE IN THE WORLD. THANK YOU
VERY MUCH WANT TO POSE THAT
QUESTION ANYONE ELSE WANT TO
CHIME IN? IF NOT THANK YOU VERY
MUCH FOR YOUR TESTIMONY. WE
ABSOLUTELY APPRECIATE. UM YOU'RE
BEING HERE AND WE'RE GOING TO
CALL UP THE NEXT PANEL. TO COME
AND JOIN US. WE'RE GOING TO CALL
UP MATTHEW HARGROVE ONE, ACOSTA.
CHRISTIAN MOTA. RACHEL METELLA.
PLEASE FORGIVE ME IF I MISS
PRONUNCIATION OF YOUR NAME, YOU
CAN PLEASE STATE. IT. CORRECTLY
FOR ME. AND WELCOME AND THANK
YOU SO VERY MUCH. FOR BEING HERE
FOR BEING PART OF THIS
DISCUSSION. WE'RE GOING TO START
OFF WITH MATTHEW HART HARGROVE,
WHO REPRESENT THE CALIFORNIA
BUSINESS PROPERTY ASSOCIATION,
AS WELL AS THE NATIONAL
ASSOCIATION OF INDUSTRIAL OFFICE
PARKS. THANK YOU VERY MUCH FOR
BEING HERE, SIR. REALLY
APPRECIATE IT. AND PLEASE
INTRODUCE YOURSELF AND PLEASE
START YOUR PRESENTATION. UM
WANNA REMIND THE COMMITTEE OF
BETWEEN 6 TO 8 MINUTES OF
TESTIMONY AND PRESENTATION.
PLEASE CONTINUE. MR CHAIR. THANK
YOU VERY MUCH FOR INVITING ME TO
BE HERE, AND I KNOW THAT THERE'S
OTHER COMMITTEE MEMBERS THAT ARE
WATCHING THIS ONLINE REALLY
APPRECIATE EVERYTHING THAT THIS
COMMITTEE IS DOING TO LOOK AT
THESE IMPORTANT ISSUES. MY NAME
IS MATTHEW HARGROVE ON THE
PRESIDENT, CEO OF CALIFORNIA
BUSINESS PROPERTIES ASSOCIATION.
AND I WANT TO THANK MY
COLLEAGUES ON THE PANEL FOR
LETTING ME KICK THIS OFF.
IRONICALLY, I HAVE TO GET TO
IMPORT TERMINAL IN SAN
FRANCISCO. BY 3 30 OR MY WIFE
SELLS OFF WITHOUT ME, SO I WILL
MAKE THIS QUICK BUT I WANT TO
MAKE SURE I HIT THE POINTS
BECAUSE I'M GOING TO START
TAKING THIS AWAY FROM THE PORTS
A LITTLE BIT AND START TALKING
ABOUT SOME OF THE OTHER KEY
PIECES OF THE GOODS MOVEMENT
ISSUES THAT THAT WE'RE SO
THANKFUL THAT THIS COMMITTEE IS
LOOKING AT FIRST OF ALL, THOUGH
, I WAS ASKED TO EXPLAIN A
LITTLE BIT ABOUT WHO CPP A IS
WHO MAY UP IS WHO WE REPRESENT.
AND WHAT ARE THE THINGS THAT WE
LOOK AT? AND THE ADMINISTRATION
WAS KIND ENOUGH EARLIER TO GIVE
THIS GOODS MOVEMENT MAP AND I
REALLY APPRECIATE THAT BECAUSE
WE'RE ON HERE TWICE WHAT I'LL BE
SPEAKING ABOUT TODAY, BOTH
WAREHOUSES AND LOGISTICS CENTERS
ON THE GOODS MOVEMENT MAP, SO I
REALLY APPRECIATE THAT AND 68
MINUTES ISN'T ENOUGH TO
INTRODUCE ALL MY GROUPS AND TALK
ABOUT ALL THE THINGS WE'RE
WORKING ON. SO I'M GOING TO TRY
AND MOVE THROUGH THIS VERY
QUICKLY. A BIT FROM PORTSIDE
BUILDINGS TO LARGE WAREHOUSES
FAR INLAND. THESE FACILITIES
PLAY A KEY ROLE IN BRINGING
PRODUCTS TO THE PEOPLE AND
BUSINESSES IN CALIFORNIA. ONE
THING I WANT TO DO IS DESCRIBE
IT. C B P A IS A LARGE
CONSORTIUM OF COMMERCIAL REAL
ESTATE GROUPS THAT HAVE COME
TOGETHER TO WORK IN CALIFORNIA,
IN FACT, WERE THE LARGEST STATE
REAL ESTATE CONSORTIUM IN THE
NATION. WE HAVE OVER 10,000
MEMBERS THAT ARE ACTIVE IN
CALIFORNIA. ALL OUR MEMBERS CARE
DEEPLY ABOUT GOODS, MOVEMENT AND
SUPPLY CHAIN ISSUES. BUT I WANT
TO SPECIFICALLY HIGHLIGHT ARNIE
UP GROUP THAT WE WORK WITH,
BECAUSE THEY ARE THE ONES WHO
ARE BUILDING OWNING MANAGING THE
WAREHOUSE AND LOGISTICS
FACILITIES THAT I WILL BE
TALKING ABOUT. TODAY. THERE IS
NO GAP CHAPTERS ALL UP AND DOWN.
THE STATE OF CALIFORNIA,
SACRAMENTO VALLEY, SAN FRANCISCO
. SILICON VALLEY NAP, SOCAL NAP
AND THEN I'M EMPIRE AND THEY UP
SAN DIEGO. I WORKED CLOSELY WITH
THE LEADERS FROM ALL THESE
GROUPS TO MAKE SURE THAT WE'RE
PROVIDING INFORMATION ON BILLS
AND REGULATORY ISSUES THAT ARE
COMING THROUGH THAT WILL IMPACT
GOODS, MOVEMENT AND SUPPLY CHAIN
ISSUES FROM THE WAREHOUSE
PERSPECTIVE. I'M ALSO HERE TODAY
AS A CO CHAIR OF THE GOODS
MOVEMENT ALLIANCE. THE GOODS
MOVEMENT ALLIANCE WAS PUT
TOGETHER LAST YEAR AS A BROAD
COALITION OF LEADERS IN THE
GOODS MOVEMENT ECONOMY COMMITTED
TO CREATING AND SUPPORTING
COMMON SENSE SOLUTIONS AND
GOODS. MOVEMENT SECTOR. MY CO
CHAIRS ON THAT ARE ROB LAPSLEY
WITH THE CALIFORNIA BUSINESS.
I'M SORRY, BUSINESS ROUNDTABLE
AND PAUL GRINNELL, WHO'S A
REALLY IMPORTANT UH, PARTNER
WITH US IN THE GOODS MOVEMENT.
HE IS FROM THE INLAND EMPIRE
ECONOMIC PARTNERSHIP, AND IT'S
REALLY ESSENTIAL AND GOODS
MOVEMENT, AND I HOPE HE WILL BE
SOMEBODY, UH, THAT YOU SPEAK
WITH FROM THE SELECT COMMITTEE.
SOME OF THE KEY MESSAGES I HAVE
FOR YOU TODAY IS THAT THE
WAREHOUSE AND LOGISTICS INDUSTRY
IS CRITICAL TO CALIFORNIA. GIVEN
THE PROXIMITY TO NOT ONLY OUR
PORTS, BUT OUR RAILROADS AND OUR
OUR INFRASTRUCTURE IN TERMS OF
THE FREEWAYS. WHILE MANY THINK
THAT LOGISTICS IS JUST E
COMMERCE FOLKS. THAT OUR
INDUSTRY WAREHOUSES, CRITICAL
COMPONENTS FOR FAMILIES AND
BUSINESSES ALIKE FROM FRESH FOOD
MEDICINES. YOU CAN'T HAVE
EMERGENCY ROOMS WITHOUT HAVING
WAREHOUSES THAT HAVE THOSE
PRODUCTS IN THEM TO HOSPITAL
INVENTORIES AND BUSINESS AND
INVENTORIES AND THE STATE ITSELF
. THE STATE HAS LARGE
WAREHOUSES, ALL THROUGHOUT THE
STATE OF CALIFORNIA THAT HOUSES
EVERYTHING FROM EMERGENCY
SUPPLIES TO THINGS THAT MAKE THE
STATE RUN ON A DAY TO DAY. UM UM
, BASIS, THE IMPORTANCE OF
LOGISTICS BECAME VERY CLEAR
DURING COVID WAS SIGNIFICANT
SUPPLY CHAIN DISRUPTIONS AND
LACK OF AVAILABLE GOODS. I, FOR
ONE HOPE TO NEVER SEE A TOILET
PAPER SHORTAGE YOU GET IN MY
LIFE. AND THIS SELECT COMMITTEE
CAN HELP GET US TO THEIR THE KEY
POINTS. I WANT TO MAKE SURE YOU
KNOW FROM US. IS THAT WAREHOUSES
AND LOGISTICS CENTERS, UH, EVEN
THE BUILDINGS THAT ARE FAR
INLAND FROM THE PORTS. OUR KEY
AND ESSENTIAL TO WORKING WITH
THE PORTS TO MAKE SURE THAT
STUFF GETS TO CALIFORNIANS AND
THE, UH, BUSINESSES THAT ARE
DOING THE COMMERCE IN THIS
STATE. THERE IS, HOWEVER.
GROWING LAND SCARCITY. FOR
WAREHOUSING, WHICH YOU SHOULD BE
VERY CONCERNED ABOUT ON THIS
COMMITTEE. MUCH OF THAT SCARCITY
IS BEING DRIVEN BY A LOT OF THE
POLICY RESTRICTIONS THAT THE
EARLIER PANELS HAVE TALKED ABOUT
THAT YOU'VE TALKED ABOUT TODAY
ON S R, UM BUT MORE COMING FROM
THE LEGISLATURE AND FROM LOCAL
GOVERNMENT, WHICH I'LL GET INTO
IN A MOMENT, BUT LIMITING
WAREHOUSE DEVELOPMENT WILL BE
DETRIMENTAL TO THE PORTS. YOU
DON'T HAVE WAREHOUSES. ON THIS
END, IT'S GOING TO BE CREATING
MORE STACK UPS IN THE PORTS AND
THAT THROUGHPUT IS GOING TO BE
VERY DIFFICULT. IT WILL IMPACT
THE SUPPLY CHANNEL IMPACT
CONSUMERS, WORKERS AND
CALIFORNIA'S OVERALL ECONOMY.
THERE'S ALSO A VERY CONCERNING
LACK OF INFRASTRUCTURE. YOU'VE
HEARD THAT TODAY. THE ONE TIME
MONIES THAT ARE COMING IN RIGHT
NOW ARE FANTASTIC, AND WE LOVE
THAT, BUT WE NEED TO SEE ONGOING
INVESTMENT IN THE PORTS AND IN
THE INFRASTRUCTURE THAT CONNECTS
THE PORTS TO THE WAREHOUSES THAT
CONNECTS THE WAREHOUSES TO THE
PEOPLE IN THE STORES WHERE THE
EVERYTHING GETS PUT OUT THERE.
WAREHOUSES AND LOGISTICS CENTERS
CONTRIBUTE GREATLY TO THE
CALIFORNIA ECONOMY, ECONOMIC
PRODUCTIVITY, TAXES AND COMMERCE
. CALIFORNIA WAREHOUSES ARE
CLEAN AND GREEN JOB CENTERS THAT
EMPLOY MANY OF YOUR CONSTITUENTS
WITH GOOD HIGH PAYING JOBS. I
JUST REAL QUICKLY WANT TO HIT A
COUPLE OF NUMBERS FROM THE L. A
BASED OUT OF RESPECT FOR KNOWING
THAT IS YOUR DISTRICT, MR CHAIR,
BUT SOME OF THESE THINGS APPLY
TO ALL THE PORTS THROUGHOUT THE
STATE OF CALIFORNIA AND SOUTHERN
CALIFORNIA WAREHOUSES AND
LOGISTICS CENTERS FROM THE PORTS
OF L, A ALL THE WAY TO LONG
BEACH AND WENT EMPIRE. ARE
CRITICAL TO EFFICIENTLY MOVING
GOODS TO MARKET. YOU CAN'T DO IT
WITHOUT THOSE LOGISTICS CENTERS
, AND YOU CAN'T DO IT WITHOUT
THE WAREHOUSES. UM THE REGION
SERVICES, THE LARGER CONCERN,
LARGEST CONSUMER BASE IN THE
UNITED STATES. ONE THING THAT
I'VE LEARNED RECENTLY THAT I
DIDN'T KNOW WHICH IS AN
ELEMENTAL PIECE OF GOODS
MOVEMENT IS A LOT OF THE THINGS
THAT COME OUT OUT OF THE PORCH.
GO TO THOSE INLAND EMPIRE
WAREHOUSES THAT YOU'VE HEARD
ABOUT, BUT THEN THEY COME BACK
INTO THE L. A BASIN. THAT'S HOW
THE GOODS MOVE HERE. THEY DON'T
JUST CONTINUE MOVING OFF IN TWO
OTHER STATES. A LOT OF IT. DO A
LOT OF THEM DO BUT A LOT OF IT
COMES BACK INTO THE LA BASIN TO
YOUR CONSTITUENTS. REGIONAL
LOGISTICS SPACE SERVES MULTIPLE
SUPPLY CHAIN FUNCTIONS AND
DEMAND IS NOT CONTINGENT ON
SHORT TERM MOVEMENTS. IMPORT
FLOWS. CUSTOMERS OCCUPY
LOGISTICS SPACE IN SOUTHERN
CALIFORNIA FOR REALLY THREE MAIN
PURPOSE IS TO SERVE THE
CONSUMPTION NEEDS OF THOSE 25
MILLION PEOPLE THAT LIVE IN
SOUTHERN CALIFORNIA TO
DISTRIBUTE TO THE GREATER
SOUTHWEST REGION WHERE 10 A 10
METRO AREAS THAT EQUAL TO 15% OF
CONSUMPTION IN THE U. S IS
WITHIN 500 MILES OF YOUR PORTS,
SO THAT'S EXTREMELY IMPORTANT.
AND THEN FINALLY, OF COURSE TO
TAKE ADVANTAGE OF THE U. S. ASIA
TRADE AND LOGISTICS CENTERS AND
WAREHOUSES SUPPORT ALL OF THAT
IN TERMS OF JOBS. WANNA WANNA
FIVE JOBS IN THE INLAND EMPIRE
IS LOGISTICS INDUSTRY AND HAD
AND HAD THE LEAST UM,
UNEMPLOYMENT DURING COVID. THESE
ARE SOLID JOBS IN THE INLAND
EMPIRE. THEY'RE REALLY GREAT
JOBS, BUT THEY'RE ALSO GOOD JOBS
IN LOS ANGELES AND AROUND THE
PORTS OVER 865,000 EMPLOYEES AND
THE LOGISTICS, TRANSPORTATION
AND MATERIAL MOVING SECTORS AND
AGAIN LOGISTICS CENTERS AND
WAREHOUSES ARE AT THE CENTER OF
THAT FOR US. AND THESE JOBS ARE
BECOMING MORE SKILLED THERE,
LEADING TO AN INCREASE IN PAY
AND THE NEED FOR MORE.
EDUCATIONAL TRAINING. I JUST
REAL QUICK. WANNA BUILD ON THE
LAND SCARCITY ISSUE? I KNOW I'M
TRYING TO WRAP UP. BUT
CALIFORNIA IS VERY SHORT ON
DEVELOPABLE LAND AND BARRIERS TO
SUPPLY ARE RISING. THIS WILL
HAVE AN IMPACT ON PORTS WILL
HAVE AN IMPACT ON GOODS
MOVEMENT. UM IN CALIFORNIA
ALREADY YOU'VE HEARD ABOUT A LOT
OF THE LAWS THAT THE PORTS ARE
DEALING WITH, BUT WE ALSO HAVE
THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT. THIS REQUIRES NEW
DEVELOPMENT PROJECTS, WAREHOUSES
AND LOGISTICS CENTERS FOR US TO
ANALYZE AND EVALUATE THEIR AIR
QUALITY HEALTH RISK GREENHOUSE
GAS IMPACTS ON A DIRECT AND
CUMULATIVE BASIS. IF ANY OF THE
IMPACTS FOR PROPOSED WAREHOUSE
PROJECT ARE FOUND TO BE
SIGNIFICANT SEQUEL REQUIRES THE
LOCAL LEAD AGENCY WHO IMPOSE
ENFORCEABLE MITIGATION MEASURES
TO REDUCE THOSE IMPACTS. SEQUELS
VERY STRONG. BUT WHAT YOU'VE
HEARD TODAY IS A LOT OF LAYING
ON TOP OF A SEQUEL THAT'S MAKING
IT HARDER AND HARDER TO DEVELOP
THE THINGS THAT WE NEED TO
STRENGTHEN OUR GOODS MOVEMENT
SECTOR. AS OF NOVEMBER 2020 TO 1
3RD OF THE BUILDINGS UNDER
CONSTRUCTION IN THE INLAND
EMPIRE WERE IN MUNICIPALITIES
THAT HAD PROPOSED OR ENACTED
LOCAL MORATORIUMS ON INDUSTRIAL
DEVELOPMENT. IF YOU DON'T HAVE
THOSE WAREHOUSES IN THE INLAND
EMPIRE, AND IN THE L. A AREA
AGAIN, THE THROUGHPUT ON THE
PORCH IS IMPACTED. OTHER CITIES
SUCH AS RECENTLY YOU'VE PROBABLY
READ ABOUT POMONA. RAMONA
ADOPTED SWEEPING BANDS ON NEW
WAREHOUSES, WHICH WILL BACKFIRE
THROUGH INCREASED COSTS OF GOODS
AND FORCING MORE GHD AND VM T BY
PUSHING THE WAREHOUSES FURTHER
AND FURTHER OUT. POLICIES LIKE
THE SOUTH COAST AIR QUALITY
MANAGEMENT DISTRICT S R ON
TRACKING AND WAREHOUSES. YOU
HEARD TODAY A LOT ABOUT THE S R
ISSUE ON PORTS. WELL WE ALREADY
HAVE ONE IN EXISTENCE FOR OUR
INDUSTRY, WHICH I KNOW CHRIS
WILL GET INTO A LITTLE BIT, BUT
IT'S UM IT IS IMPACTING US BIG
TIME. AND IT IS HAVING A HUGE
NEGATIVE IMPACT. THE I S R. THAT
IS CURRENTLY ON THE BOOKS IS
IMPACTING WAREHOUSES, GREATLY AN
IMPACTING HOW GOODS GET MOVED
AROUND. WE HOPE THAT YOU WILL
STAND AND PUSH BACK ON THE S R
THAT'S BEING PROPOSED FOR THE
PORTS, OR AT LEAST MAKE THEM
CRITICALLY. THINK ABOUT IT MUCH
MORE WITH ALL THE COMMENTS THAT
YOU HEARD EARLIER. AND THEN WE
HAVE PENDING LEGISLATION. THAT
WILL LATER ON SOME OF THE ISSUES
ON WAREHOUSES AND LOGISTICS.
RECENTLY THERE'S A THERE'S
PENDING LEGISLATION FOR A BILL
THAT WILL CREATE 1000 FT. BUFFER
AROUND MANY NEW WAREHOUSES.
WHILE THIS BILL IS VERY WELL
INTENTIONED, IT WOULD DEVASTATE
THE SUPPLY CHAIN, AND IT WOULD
ACTUALLY CREATE MORE GHG AND
MORE VEHICLE MILES TRAVELED BY
PUSHING WAREHOUSES FURTHER EAST.
IN THE AREAS THAT ARE LESS
POPULATED OR TO ARIZONA OR
NEVADA. AND THEN ALL OF THOSE
TRUCKS AND ALL OF THOSE TRAINS
STILL GO THROUGH THE COMMUNITIES
WHERE THE WAREHOUSES HAVE BEEN
PUSHED OUT OF YET THOSE
COMMUNITIES AREN'T GOING TO BE
RECEIVING THE TAX BENEFITS, THE
JOBS, THE INFRASTRUCTURE
INVESTMENTS THAT COME ALONG WITH
ALL THAT. SO THE WITH ALL THIS
IN THE SUPPLY CHAIN WILL NOT BE
ABLE TO KEEP PACE WITH DEMAND IN
SOUTHERN CALIFORNIA IF THESE
TYPES OF POLICIES CONTINUE TO
MOVE FORWARD, THE BARRIERS TO
WAREHOUSES ARE CONTINUING TO
INCREASE IN, AND WE ASKED THIS
COMMITTEE TO TAKE A LOOK AT SOME
OF THOSE THINGS. IF NOT ROLL
BACK, SOME OF THEM AT LEAST
DON'T ALLOW SOME OF THEM TO MOVE
FORWARD. OR AT LEAST HELP INFORM
YOUR COLLEAGUES ABOUT SOME OF
THE ISSUES THAT WILL IMPACT
WAREHOUSES AND LOGISTICS CENTERS
IN TERMS OF THE OVERALL IMPACT
ON THE GOODS MOVEMENT SECTOR.
AND THEN LASTLY, I JUST WANT TO
MENTION THAT WAREHOUSES ARE
INEXTRICABLY INEXTRICABLY LINKED
WITH THE HOUSING CRISIS IN
CALIFORNIA, AND IT'S NOT A
STRETCH. IT'S NOT SOMETHING I
JUST PUT IT OUT THERE BECAUSE WE
WANT TO CONNECT IT. BUT BECAUSE
OF A LOT OF THE RULES AND
REGULATIONS YOU'VE HEARD TODAY
AT A R B G H G RULES. THE VM T
RULES A LOT OF THE HOUSING
PROJECTS NOW. HAVE TO BE MORE
COMPACT THAN THEY USED TO BE,
AND THEY HAVE TO HAVE A
COMPONENT OF RESIDENTIAL HOMES.
THEY HAVE TO HAVE OFFICE. THEY
HAVE TO HAVE SOMEWHERE HOUSING
THERE TO SERVICE THE PEOPLE THAT
ARE LIVING THERE IN ORDER TO BE
ABLE TO MEET THE STRICT DEMANDS
IN CALIFORNIA. SO WITH SOME OF
THE SCARCITY ISSUES I TALKED
ABOUT EARLIER. WE HAVE TO BE
ABLE TO CO LOCATE THESE TYPES OF
BUILDINGS WITH ONE ANOTHER,
INTEGRATE THEM INTO THE SUPPLY
CHAIN WITHIN SOUTHERN
CALIFORNIA. AND THE REST OF THE
STATE ALL OF THE CORRIDORS TO BE
ABLE TO MOVE FORWARD AND MEET
SOME OF THE HOUSING ISSUES. SO
WITH THAT I WANT TO THANK YOU
FOR HAVING ME HERE TODAY. WE'RE
JUST SCRATCHING THE SURFACE. I
KNOW YOU'RE DOING MORE HEARINGS.
I HOPE THAT WE CAN COME BACK AND
BE INVITED AGAIN AND BE A PART
OF THIS AGAIN. I WANT TO THANK
YOU FOR REACHING OUT. USUALLY
THE WAREHOUSE PIECE ISN'T HIGH
ON THE MIND OF A PORTS, UM,
HEARING OR GOODS MOVEMENT, BUT
THIS PANEL TODAY IS REALLY
SHOWING THAT THERE IS A HUGE
PIECE OF GOODS, MOVEMENT AND
SUPPLY CHAIN ISSUES THAT WE'RE
WORKING ON, AND WE'RE A POSITIVE
SOURCE OF AND WE ARE PROVIDING
LOTS OF GOOD JOBS IN THE
WAREHOUSE SECTOR, AND MOST OF
THEM ARE ARE UNIONIZED, HIGH
PAYING JOBS. THANK YOU VERY MUCH
FOR HAVING THIS AND AGAIN. I'LL
STICK AROUND FOR A COUPLE OF
QUESTIONS, BUT IF I CAN SNEAK
OUT A LITTLE BIT EARLY TO TRY
AND MEET MY WIFE. I WOULD NOT
MIND THAT. THANK YOU. THANK YOU
VERY MUCH, MR COSGROVE, AND I
WILL SAY THAT WE WILL PROBABLY
HAVE QUESTIONS FOR YOU. UM BUT
WE WANT TO MAKE SURE YOU'RE IN
GOOD STANDING WITH YOUR WIFE. UM
SO WE'LL SUBMIT THOSE QUESTIONS
TO YOU AND EXPECT AN ANSWER IN
RESPONSE TO THE QUESTIONS AND SO
WE RELEASE YOU, UM, AT THIS
PARTICULAR POINT IN TIME, THANK
YOU VERY MUCH FOR YOUR
TESTIMONY. APPRECIATE YOU'RE
ADDING TO THE CONVERSATION. I
WANT TO INVITE UP TO MR MR COST
TO, UM TO PLEASE PROCEED 6 TO 8
MINUTES AND THANK YOU VERY MUCH
FOR BEING HERE REPRESENTING
BURLINGTON NORTHERN SANTA FE.
REAL RAILROAD. THANK YOU VERY
MUCH. THANK YOU VERY MUCH. MR
CHAIRMAN. THANK YOU FOR HOLDING
THIS HEARING. AND APPRECIATE THE
STAFF'S WORK AS WELL AND PUTTING
THIS TOGETHER SO THANKS. THANKS
AGAIN. I KNOW WE'LL DO. WORKING
TOGETHER ON THE WHITE PAPER
ANOTHER HEARINGS IN THE FUTURE,
BUT GREAT START. UM YOU SHOULD
HAVE A COPY OF BUNCH OF SLIDES
THAT I PREPARED. UM, WE'RE GONNA
GO THROUGH THOSE FAIRLY QUICKLY
AND JUST TOUCH ON A COUPLE OF
THINGS. UM AND SO LET'S LET'S
SKIP TO PAGE THREE IN YOUR COPY
OF THAT. SLIDE ENTITLED OUR
WORKFORCE JUST TO GIVE YOU KIND
OF A 30,000 FT LEVEL OF WHAT THE
CALIFORNIA RAILROADS ARE WHO WE
ARE, BECAUSE I'M ALSO TESTIFYING
ON BEHALF OF THE INDUSTRY AS
WELL AS BNSF, UM SO THERE ARE 27
FREIGHT RAILROADS TO CLASS ONES
AND SHORT LINES IN THE STATE.
WE'VE GOT NEARLY 5000 ROUTE
MILES 6400 EMPLOYEES, UM, THE
AVERAGE WAGE FOR RAILROAD
WORKERS HERE IN CALIFORNIA IS
$137 IN HER $137,000. IN WAGES
AND BENEFITS. AND IF YOU JUST
LOOK AT THE CLASS ONE EMPLOYEES
WHO ARE COVERED BY THE 12
COLLECTIVE BARGAINING AGREEMENTS
THAT WERE RECENTLY RATIFIED
RAILROAD EMPLOYEES IN CLASS ONE
RAILROADS CAN MAKE UP TO
$160,000 IN WAGES AND BENEFITS.
THERE ARE 24,000 RETIREES HERE
IN CALIFORNIA WHO ARE PAID. $610
MILLION IN RAILROAD BENEFIT EACH
YEAR. UM. SO IF YOU SKIP NOW TO
SLIDE FORWARD THE NEXT PAGE, UM
HERE'S HERE'S SORT OF THE.
THOUGHT EXERCISE FOR THE DAY. IF
IMAGINE CALIFORNIA WITHOUT
RAILROADS. STOP FOR A SECOND.
YOU'D HAVE TO ADD 9.3 MILLION
TRUCK TRIPS A DAY. OR YEAR
RATHER IN CALIFORNIA TO MAKE UP
FOR THAT. LACK OF RAILROAD
INFRASTRUCTURE IN THE STATE, SO
RAILROADS PLAY A VITAL ROLE IN
MOVING FREIGHT AROUND THE
COUNTRY, BUT ALSO ESPECIALLY IN
CALIFORNIA. YOU LOOK AT PAGE
SIX, JUST SOME RECOMMENDATIONS
ON FACTORS THAT POLICYMAKERS
SHOULD CONSIDER, UM WHEN YOU'RE
TALKING ABOUT TRANSPORTATION AND
ENVIRONMENTAL POLICY, BECAUSE
YOU CAN'T HAVE ONE REALLY
WITHOUT THE OTHER. THE TWO HAVE
TO GO HAND IN HAND, SO THE TOP
OF THE LIST IS AVOIDING LEAKAGE,
YOU KNOW, MOVING FREIGHT OUT OF
CALIFORNIA TO LESS REGULATED
JURISDICTIONS. YOU'VE HEARD A
LOT ABOUT THAT TODAY. UM A MODAL
SHIFT FROM RAIL TO TRUCKS. NOW I
SAY THAT, UH BE WITH WITH ONE
THING IN MIND THAT SOME OF OUR
BEST CUSTOMERS ARE TRUCKING
COMPANIES. BUT THERE IS THERE IS
A SYNERGISTIC RELATIONSHIP
BETWEEN RAIL AND TRUCK AND
THERE'S A BALANCE THERE. SO UM,
AVOIDING A SHIFT FROM FROM FROM
REAL. THE TRUCK IS IMPORTANT AND
THEN MAKING SURE THAT WE UTILIZE
, UM TO ITS HIGHEST AND BEST USE
PRIVATE CAPITAL. UM YOU HEARD MR
JACOBS TALKED ABOUT GROWTH AND
WE HAVE A BIAS TOWARDS GROWTH IN
THE RAILROAD INDUSTRY BECAUSE
GROWTH REALLY STARTS A VIRTUOUS
CYCLE OF INVESTMENT AND MORE
GROWTH BUT SUSTAINABLE GROWTH.
SO THOSE ARE SOME
RECOMMENDATIONS. AND FINALLY THE
LAST PAGE OF THAT, DEX PAGE
SEVEN. IT JUST GETS INTO SAFETY.
AND THAT'S ACTUALLY WHERE WE
WOULD START. AND I WANT TO
EMPHASIZE SAFETY FOR A MOMENT,
GO A LITTLE BIT DEEPER INTO THAT
. AND ALSO THE OTHER S WORDS.
SUSTAINABILITY IF YOU WILL, MR
CHAIRMAN, UM AND SAFETY IS WHERE
WE WOULD START ANY MEETING ON
THE RAILROAD OR JOB BRIEFING. UM
IT IS IT IS FIRST AT THE TOP OF
THE LIST AND EVERYTHING THAT WE
DO. UM THE INDUSTRY HAS A PROVEN
RECORD AND SAFETY. IF YOU TALK
ABOUT HAZMAT 99.9% OF ALL HAZMAT
SHIPMENTS THAT MOVED BY RAIL GET
TO THEIR DESTINATION WITHOUT ANY
INCIDENT WITHOUT A HAZMAT SPILL
WITHOUT AN ACCIDENT. UM OVER THE
LAST 10 YEARS. LESS THAN 1. OF
ALL ACCIDENTS ON THE RAILROAD
INDUSTRY WIDE HAVE INVOLVED
HAZMAT RELEASES. UM SO, UM, WE
HAVE A DECLINE SINCE 2028%
DECLINE IN ACCIDENTS ACROSS THE
INDUSTRY AND A 78% DECLINE.
ALMOST 80% DECLINE IN, UM HAZMAT
ACCIDENTS. AND THAT REALLY IS
DUE TO THREE CONCEPTS THAT WE
FOCUS ON PREVENTION, MITIGATION
AND RESPONSE ON THE PREVENTION
SIDE. WE'LL START WITH PEOPLE
AGAIN. UM RULES, TRAINING AND A
CULTURE OF SAFETY RULES ARE THE
PRICE OF ADMISSION. WE ARE A
RULES BASED, UH, ENTERPRISE OF
OUR OWN RULES, INTERNAL RULES
INDUSTRY STANDARDS AS WELL AS
FEDERAL AND STATE RULES. WE
TRAIN AROUND THOSE RULES. WE
FOCUS ON THAT, BOTH IN THE
CLASSROOM, TECHNICAL TRAINING
AND FIELD TESTING. UM, THEN
THERE'S A CULTURAL SAFETY. MOST
IMPORTANTLY, THIS IS ABOUT
APPROACHING OTHERS ABOUT MAKING
SURE THAT YOUR COLLEAGUE NEXT TO
YOU THE END OF THE DAY, BOTH OF
YOU GET HOME SAFE TO YOUR
FAMILIES AND FRIENDS AND LOVED
ONES. AND SO IT'S ABOUT
VALIDATING, UM, SAFE BEHAVIOR
AND ABOUT BRINGING ATTENTION TO
EXPOSURES BEHAVIOR THAT LEAD TO
SAFETY EXPOSURES AND THAT
CULTURE OF SAFETY IS VITAL
BECAUSE WE WANT TO MAINTAIN
SEXUAL SITUATIONAL AWARENESS. WE
WANT TO UM, KEEP FOCUSED ON
SAFETY THROUGHOUT OUR DAY AND
EVERYTHING THAT WE DO, EVEN IF
IT'S A MEETING IN A CONFERENCE
ROOM, WE START WITH THE SAFETY
BRIEFING. UM BUT BUT PREVENTION
ALSO, UH, IS PLACED OR COMPONENT
OF PREVENTION IS MAKING SURE OUR
INFRASTRUCTURE IS SOUND AND IS
IN GOOD WORKING ORDER. UM THE
AMERICAN ASSOCIATION, AMERICAN
SOCIETY OF CIVIL ENGINEERS GIVES
A RAIL THE HIGHEST GRADE OF ALL
INFRASTRUCTURE IN THIS COUNTRY.
WE PUT $20 BILLION A YEAR AS AN
INDUSTRY INTO MAINTAINING AND,
UM AND, UH, AND UPKEEP ON ON OUR
NETWORKS. SO UM, THAT
INFRASTRUCTURE IS CRITICAL AND
MAINTAINING THAT INFRASTRUCTURE
ALSO REQUIRES THE USE OF
TECHNOLOGY TO MONITOR AND TO
INSPECT. SO, UH FOR EQUIPMENT.
RAILCARS UM, PRIMARILY, WE'RE
LOOKING AT DETECTORS. UM THAT
ARE, UH, DEPLOYED ALONG OUR
RIGHT AWAY ON THE BNSF 4000
DETECTORS THAT TAKE AUDIO
READINGS, TEMPERATURE READINGS,
OTHER VITAL SIGNS OF EVERY
RAILCAR THAT GOES PAST THAT
DETECTOR EACH AND EVERY DAY, UM
, MACHINE VISION SYSTEMS. HIGH
HIGH SPEED CAMERAS EMBEDDED IN
THE RIGHT AWAY THAT TAKE A HIGH
DEFINITION PHOTO OF THE
UNDERCARRIAGE OF EVERY RAIL CAR
. UM ON THE RAIL INFRASTRUCTURE
. WE USE ULTRASOUND LASERS, X
RAYS TO EXAMINE THE RAIL TO GET
INSIDE THE RAIL AND SEE WHAT YOU
CAN'T SEE WITH THE HUMAN EYE
BENEATH THE RAIL BED AS WELL, UM
, ALSO TRACK GEOMETRY CARS THAT
USE LASERS TO MAKE SURE THE
TRACKS ARE PERFECTLY ALIGNED. UM
AND WE DEPLOY THOSE BY WAY OF
AUTOMATED INSPECTION CARS,
AUTONOMOUS INSPECTION CARS, SO
RIGHT NOW ON OUR RAILROAD AND
THE SAME WITH THE UNION PACIFIC
, UM, OUR RAILROADS OF 35,000
MILE NETWORK WE CAN INSPECT
450,000 MILES OF TRACK EACH YEAR
USING THESE AUTONOMOUS CARS. SO
IT'S A REMARKABLE STEP UP IN
LEVEL OF SAFETY AND INSPECTION
MAINTENANCE. UM BUT IT ALSO
GENERATES A LOT OF DATA 38
MILLION PIECES OF DATA A DAY.
UM, THAT WE PUT INTO A MACHINE
LEARNING SYSTEM. OTHER PEOPLE
REFER TO IT AS A I. RAILROADS
HAVE BEEN USING AI FOR MANY
YEARS. WE'VE BEEN PROGRESSING
THE TECHNOLOGY WE'RE WELL AHEAD
OF A LOT OF FOLKS CERTAINLY HAVE
WELL AHEAD OF WALL STREET ON
THAT, UM, BUT WE USE IT TO
DEVELOP PREDICTIVE SAFETY
MEASURES. SO NEAR REAL TIME
ALGORITHMS CAN PREDICT WHEN AND
WHERE. YOU MIGHT HAVE A FAILURE
AND A PIECE OF EQUIPMENT OR
TRACK. AND YOU FIX IT BEFORE
THERE'S A FAILURE, AND THAT'S
THE NEXT LEVEL STEP UP IN IN
SAFETY. I SHOULD ALSO POINT OUT
THAT POSITIVE TRAIN CONTROL
SOMETHING THAT IS DEPLOYED
ACROSS THE COUNTRY AS THE
UNFORTUNATE RESULT OF A TERRIBLE
ACCIDENT. METROLINK YOU MAY
REMEMBER YEARS AGO WHEN THE
LOCOMOTIVE ENGINEER FOR THE
METROLINK TRAIN PULLED OUT OF
THE STATION WENT THROUGH A RED
SIGNAL WHILE TEXTING ON HIS
PHONE. AND SO BUT NOW WE'VE GOT
THAT DEPLOY THAT WAS A MANDATED
BY CONGRESS AND IN THE INDUSTRY
94% OF ALL FREIGHT. UH IT'S
COVERED IN TERRITORY THAT IS
CONTROLLED WITH POSITIVE
POSITIVE TRAIN CONTROL. SO YOU
CAN'T GET THROUGH A RED SIGNAL.
YOU CAN'T GO THROUGH A SIGNAL.
THAT'S MISALIGNED. YOU CAN'T GET
INTO A WORK ZONE WHERE EMPLOYEES
ARE OUT ON THE TRACKS. UM IT IS
A SYSTEM THAT WILL SAVE LIVES
AND IT'S A PROVEN SYSTEM ONE
THAT WE WERE HAPPY TO WORK ON
AND BE A LEADER IN TERMS OF THE
DEVELOPMENT YEARS AGO, UM
SECONDLY, MITIGATION, SO THAT
REALLY SIMPLY BOILS DOWN TO THIS
MAKING SURE THAT THERE'S THE
RIGHT PACKAGE FOR EACH COMMODITY
, AND THAT'S REALLY STARTING
WITH TANK CARS THAT CARRY HIGH
HAZARD. FLAMMABLE FLAMMABLE
MATERIALS LIKE ETHANOL, WHICH WE
IMPORT A LOT INTO IN CALIFORNIA.
AS WELL AS OIL, D O T 1/17 OR
THE STATE OF THE ART MANDATED BY
A FUNCTION IN THE FEDERAL
GOVERNMENT. UM THEY'RE SAFER.
THEY'RE THICKER STEEL. THERE'S A
THERMAL WRAP. UM THEY'RE
STRONGER. SO UM 100% OF OUR
VOLUMES ARE COVERED IN OF HIGH
HAZARD. FLAMMABLE MATERIALS ARE
COVERED IN, UH, TRANSPORTED IN D
O T 1071 SEVENTEENS RATHER AND
THEN ESPECIALLY ROUTING AND
SPEED RESTRICTIONS FOR P, I H
AND T I H AND THEN LASTLY,
RESPONSE. IF THERE IS AN
ACCIDENT, WE WANT TO MAKE SURE
THAT WE WORK SHOULDER TO
SHOULDER WITH FIRST RESPONDERS
WHO WE'VE PLANNED AND TRAINED
WITH, UM, WE TRAIN ABOUT 9001ST
RESPONDERS A YEAR. OUR OUR
RAILROAD AND THE INDUSTRY DOES
THE SAME THING. UM ACROSS THE
INDUSTRY. WE HAVE A WEBSITE
DEDICATED TO FIRST RESPONDERS
WHERE THEY CAN HAVE, UH THERE'S
RESOURCES AND INFORMATION, THEIR
CONTACTS THEY CAN FIND ON THAT
WEBSITE. WE HAVE 161ST
RESPONDERS ON OUR NETWORK IN 60
LOCATIONS THAT ARE ALSO HAVE
ALSO HAVE PRE POSITIONED
RESPONSE MATERIALS AND SUPPLIES.
UM WE USED A LOT OF TECHNOLOGY
TO HELP KEEP OUR FIRST
RESPONDERS INFORMED AS A PHONE
BASED APPLICATION CALLED ASK
RAIL THAT THE INDUSTRY IS A
DEVELOPED SO IF THERE IS A
DERAILMENT, FIRST RESPONDERS
SHOW UP. THEY CAN KNOW WHAT'S
INSIDE OF EACH AND EVERY CAR
THAT'S INVOLVED IN THAT
DEVELOPMENT. UM WE PROVIDE
SOMETHING WE DEVELOPED SOMETHING
CALLED SECURE TRACK, AND THAT IS
REAL TIME TRACKING OF TRAINS AND
THE MANIFEST FOR THOSE TRAINS AS
THEY MOVE THROUGH A JURISDICTION
WOULD PROVIDE COMMODITY FLOW
REPORTS AND OTHER REPORTS THAT
SHOW THE FIRST RESPONDERS WHAT'S
MOVING THROUGH THEIR
JURISDICTION. UM SO LET'S TALK
ABOUT THE OTHER S WORD
SUSTAINABILITY. AND I KNOW
THAT'S REALLY AN IMPORTANT S
WORD IN, UH, IN CALIFORNIA. WHAT
DOES IT MEAN? UH FOR US, IT
MEANS REALLY A FORMER
STEWARDSHIP. UM WE HAVE A
NATURAL ADVANTAGE. UM AND IN
RAIL IN TERMS OF SUSTAINABILITY
IN THAT, UM UM, WE CAN MOVE. A
TON OF FREIGHT 500 MILES ON A
GALLON OF DIESEL. UM ARE WERE 3
TO 4 TIMES MORE FUEL EFFICIENT
THAN OTHER MODES OF SURFACE
TRANSPORTATION. SPECIFICALLY
TRUCKS. UM AND, UH, WE HAVE A
75% REDUCTION IN GREENHOUSE GAS
EMISSIONS COMPARED TO MOVING THE
SAME AMOUNT OF RATE BY TRUCK.
AND AGAIN I SAY THIS WITH LOVE
IN MY HEART FOR TRUCKING AND OUR
TRUCKING CUSTOMERS AND PARTNERS,
UM IN 2020 TO OUR CUSTOMERS
BEING CUSTOMERS REDUCE THEIR
GREENHOUSE GAS EMISSIONS BY 23.9
MILLION METRIC TONS, SO THAT'S
THE EQUIVALENT OF ABOUT FIVE THE
EMISSIONS FROM ABOUT 5.2 MILLION
VEHICLES. SO THE MORE YOU MOVE
FREIGHT BY RAIL, THE BETTER OFF
. YOU ARE IN TERMS OF GREENHOUSE
GAS EMISSIONS. BUT HERE'S THE
DOWNSIDE OF THAT 80% OF OUR
INDUSTRIES. GREENHOUSE GAS
EMISSIONS ARE FROM CONSUMPTION
OF LOCOMOTIVE FUELS SPECIFICALLY
DIESEL. SO WHAT DO WE DO ABOUT
THAT? SO WE FIRST TRY TO BE MORE
EFFICIENT IN OUR USE AND MORE
FRUGAL IN OUR USE OF FUEL, AND
WE START WITH ENERGY MANAGEMENT
SYSTEMS. IT'S ESSENTIALLY
SOFTWARE. IT'S LIKE A CRUISE
CONTROL CONCEPT IN THE VEHICLE,
UH, REGULATES THE THROTTLE AND
BRAKES AND SORT OF WITH KEEPING
IN MIND THE TERRAIN, THE
GEOGRAPHY THAT THE TRAIN
CONCEPTS, A NUMBER OF OTHER
FACTORS AND MAINTAINING SAFE
OPERATION OF THAT RAIL BUT BUT
REDUCING THE CONSUMPTION OF
FUEL. WE HAVE AUTOMATIC ENGINE
STOP START DEVICES. 99% OF ALL
OUR LOCOMOTIVES IN THE INDUSTRY.
HAVE THESE DEVICES UM SHUT THE
ENGINE OFF AFTER 30 MINUTES TO
AVOID EXCESSIVE VITAL NG COMES
BACK ON ONLY TO KEEP ON VITAL
COMPONENTS OF THE LOCOMOTIVE AND
THE TRAIN LIKE THE AIR BRAKE
SYSTEM. UM WE ALSO ARE FOCUSED
ON NEW TECHNOLOGY. SO HERE'S THE
REALLY COOL STUFF. OKAY BATTERY
ELECTRIC LOCOMOTIVES. WE TESTED
A 2.4 MEGAWATT BATTERY ELECTRIC
LOCOMOTIVE AND A CONSCIOUS WITH
TWO OTHER DIESELS IN COMMERCIAL
SERVICE BETWEEN STOCKTON AND
BARSTOW LAST YEAR. GOOD PILOT.
GOOD TEST WAS INTERESTING. WE
LEARNED A LOT NEXT YEAR. WE HOPE
TO HAVE DELIVERY OF EIGHT
LOCOMOTIVES BUT BUT WITH BIGGER
BATTERIES, BIGGER CAPACITY EIGHT
MEGAWATTS THAT WILL ALLOW US TO
GET FROM THE PORTS OF L A UP TO
BARSTOW. AND THAT'S CRITICAL
HERE FOR WHAT'S GONNA COME NEXT.
UM WE'RE WORKING WITH OTHERS IN
THE INDUSTRY TO DEVELOP CHARGING
STATIONS IN SOUTHERN CALIFORNIA
. UM WE HAVE CARGO HANDLING
EQUIPMENT, ALL ELECTRIC FACT.
STOCKMAN OUR INTERMODAL
FACILITY. THERE WAS THE FIRST
ALL ELECTRIC UM, UH, FACILITY IN
IN IN THE NATION IN TERMS OF
YARD TRUCKS AND CARGO HANDLING
EQUIPMENT, UM, WITH 21 ELECTRIC
YARD TRUCKS THERE. AND HYBRID
ELECTRIC CRANE THAT OPERATES
WITH A 90% EMISSION REDUCTION
LEVEL. UM. WE ALSO HAVE SOLAR
PANELS. THERE WE HAD WE GENERATE
OUR OWN ELECTRICITY FOR THE
FACILITY AS WELL. UM THE LAST
THING I MENTIONED TO MORE THINGS
ON ON ON THE TECHNOLOGY SIDE,
RENEWABLES ARE CRITICAL TO
REDUCING GREENHOUSE GAS EMISSION
RENEWABLE DIESEL FUEL. IT HAS A
LOWER CARBON CONTENT, AND THE
MORE WE CAN USE IT THE BETTER
OFF WE ARE IN TERMS OF REDUCING
GREENHOUSE GAS EMISSIONS. OUR
TARGET. BNSF IS BY 2030 TO USE
20% RENEWABLE DIESEL AND REDUCE
OUR EMISSIONS BY COMMENSURATE
AMOUNT. UM AND LASTLY, WE WERE
ONCE AGAIN, UM TESTING OR
DEVELOPING HYDROGEN FUEL CELL
LOCOMOTIVES. WE DID 20 YEARS AGO
. I WAS INTERESTING. WE LEARNED
SOME THINGS. UM, WHAT'S OLD IS
NEW AGAIN AND IF YOU HAVE TIME
AND OVER A BEER OR AN ADULT
BEVERAGE, I'LL TELL YOU A GREAT
STORY ABOUT ARNOLD
SCHWARZENEGGER AND HYDROGEN FUEL
CELL LOCOMOTIVES. UM MEANWHILE,
LET ME JUST SAY THIS HISTORY
TEACHES US ONE THING HAS TAUGHT
THE RAIL INDUSTRY ONE THING THAT
THE BEST RESULTS IN CALIFORNIA
IN TERMS OF REDUCING EMISSIONS
HAVE COME FROM ALLOWING THE
INDUSTRY TO LEAD ON REDUCTIONS
AND TO COLLABORATE WITH THE AIR
REGULATORS TO FASHION AGREEMENTS
THAT INCORPORATE THAT LEADERSHIP
THAT EMBRACES THAT LEADERSHIP.
UM SOMEONE MIGHT HAVE MENTIONED
I THINK MAYBE IT WAS A OR I
DON'T KNOW IF SOMEONE MENTIONED
THE 1998 AND 2005 MOU S. MAYBE
THAT WAS MIKE JACOB. THOSE WERE
HISTORICAL AGREEMENTS. THEY
BROUGHT EMISSION REDUCTIONS TO
CALIFORNIA. 20 YEARS AHEAD OF
THE REST OF THE COUNTRY. THE
CLINTON ADMINISTRATION E P. A
ADMINISTRATOR CALLED THEM
UNPRECEDENTED, AND THAT'S THE
KIND OF LEADERSHIP THAT LEADS TO
POSITIVE RESULTS. BY CONTRAST, I
WILL TELL YOU THAT MANDATORY
MANDATING TECHNOLOGY. UM DOESN'T
WORK, AT LEAST NOT AS WELL AS
LEADERSHIP. GOT YOU AND UM
BECAUSE ZERO EMISSION VEHICLES,
LOCOMOTIVES DON'T DON'T EXIST
YET. COMMERCIALLY TAKES 30 TO 50
YEARS OF TESTING. WE CAN
ACCELERATE THAT BY BRINGING ON
MORE OF THOSE, UH, BATTERY
ELECTRIC LOCOMOTIVES. BUT, UM,
THAT'S SOMETHING THAT WE NEED TO
DO AND FOCUS ON IN A METHODICAL
WAY. AND LASTLY, MR BRADLEY FROM
THE GOVERNOR'S OFFICE MENTIONED
, UM THE BIG PROJECT BAR STILL
INTERNATIONAL GATEWAY. I WOULD
JUST SAY THAT THAT IS THE LAST
BEST HOPE IN THE STATE, IN MY
OPINION, HAVE AFTER 25 YEARS OF
WORKING ON THESE ISSUES,
CALIFORNIA TO SEE UM AND
ADVANCING SUSTAINABILITY, BUT AT
THE SAME TIME ENHANCING
CALIFORNIA'S POSITION IN GLOBAL
TRADE, THE IDEA THERE IS TO MOVE
SMALL AND LARGE, UM. GROUPS OF
CONTAINERS, UM OUT OF THE PORCH
AS SOON AS POSSIBLE. GET THEM UP
TO BARSTOW BY TRAIN. UM AT BAR
SO YOU CAN SORT THEM YOU CAN
TRANSFORM. YOU CAN TAKE FREIGHT
MOVING FROM INTERNATIONAL
CONTAINERS TO DOMESTIC
CONTAINERS. YOU MOVE ALL THOSE
CONTAINERS AROUND USING ELECTRIC
TRUCKS. UM YOU PUT HIM BACK ON
THE TRAIN FOR A MOVE ACROSS
COUNTRY. WE'LL HAVE OUR OWN
WAREHOUSES, SELF CONTAINED 4500
ACRES. IT'S A BILLION AND A HALF
DOLLARS INVESTMENT, PRIVATE
CAPITAL. UM WHAT IT DOES IS IT
TAKES TRUCKS OFF THE ROAD. SO
YOU'RE SAVING WEAR AND TEAR ON
THE HIGHWAYS, REDUCING
EMISSIONS, CREATING 20,000 JOBS
. YOU ARE AVOIDING THAT DISASTER
THAT PEOPLE SPOKE ABOUT AT THE
PORTS WHEN CONTAINERS WERE PILED
UP AND SHIPS WERE AT SEA. SO
THIS AND YOU ENHANCE THE USE OF
THE ALAMEDA CORRIDOR, SO YOU
HELP SHORE UP ACTORS FINANCES.
SO THIS THIS REALLY IS A
GROUNDBREAKING GAME CHANGING
PROJECT AND WE HOPE IT'S ONE
THAT MANY IN THE LEGISLATURE CAN
SUPPORT THAT. EVERYBODY IN THE
LEGISLATURE THANK YOU. THANK
YOU, SIR. THANK YOU VERY MUCH
FOR YOUR TESTIMONY. WE REALLY
APPRECIATE IT. UM NEXT UP ONE
INVITE MR CHRIS SHOWING MOTOR OF
THE SENIOR VICE PRESIDENT OF
CALIFORNIA TRUCKING ASSOCIATION
. THANK YOU SO VERY MUCH FOR
BEING HERE AND WE HAVE 6 TO 8
MINUTES AND PLEASE PROCEED WHEN
READY, MR CHAIR, AND, UH, GOOD
AFTERNOON. UH, SOMEONE MEMBER
FONG AS WELL. MY NAME IS
CHRISTIAN MOTO, SENIOR VICE
PRESIDENT GOVERNMENT AFFAIRS FOR
THE CALIFORNIA TRUCKING
ASSOCIATION. CALIFORNIA TRUCKING
ASSOCIATION WAS FOUNDED IN 1934
AND IS THE NATION'S LARGEST
STATEWIDE TRADE ASSOCIATION
REPRESENTING THE TRUCKING
INDUSTRY. OUR MEMBERS RUN THE
GAMUT FROM FORTUNE 500 COMPANIES
TO SINGLE TRUCK OPERATORS WITH
OUR AVERAGE MEMBER BEING A MULTI
GENERATION FAMILY OWNED AND
OPERATED CALIFORNIA COMPANY
OPERATING ABOUT 20 TRUCKS. THANK
YOU FOR THE OPPORTUNITY TO
APPEAR AT TODAY'S HEARING. AS
DISCUSSED BY MY SUPPLY CHAIN
COLLEAGUES. TRUCKS ARE AN
INTEGRAL PART OF A SYSTEM OF
SYSTEMS CONSTITUTE CALIFORNIA'S
SUPPLY CHAIN. TRUCKS SHIPS,
LOCOMOTIVES, WAREHOUSES AND THE
WORKING MEN AND WOMEN ARE THE
GOODS MOVEMENT INDUSTRY WORK
COLLECTIVELY TO ENSURE VITAL
GOODS AND SERVICES ARE
DELIVERED. THE CONSTITUENTS AND
ALL 100 AND 20 ASSEMBLY AND
SENATE DISTRICTS SAFE, TIMELY
AND COST EFFECTIVE MANNER.
ACCORDING TO THE ADMINISTRATION
GOODS MOVEMENT DEPENDENT
INDUSTRIES MAKE UP ONE THIRD OF
THE STATE'S ECONOMY AND JOBS.
THE SAN PEDRO REPORT COMPLEX
ALONE IS ESTIMATED TO SUPPORT
ONE IN NINE JOBS IN THE L A
BASIN. TRUCKS ARE A KEY PART OF
THE SYSTEM WITH 65% OF
CONTAINERS, UH IN THE PORTA LOS
ANGELES, MOVING BY TRUCK AND 80%
OF ALL GOODS MOVING EXCLUSIVELY
EXCLUSIVELY BY TRUCK STATEWIDE.
NEARLY EVERY FACET OF MODERN
LIFE AND CALIFORNIA'S ECONOMY
HAS TOUCHED BY TRUCKS INDUSTRIES
AS DIVERSE AS MANUFACTURING
HEALTHCARE, AGRICULTURE,
ENTERTAINMENT AND CONSTRUCTION
ALL RELY ON TRUCKING SERVICES.
OUR WORKFORCE IS MAJORITY
MINORITY IN THE INDUSTRY IS
ALMOST ENTIRELY DOMINATED BY
SMALL AND MEDIUM SIZED
BUSINESSES. WITH NEARLY THREE
QUARTERS OF THE PORTA LOS
ANGELES IS CONTAINERS BEING
HAULED BY COMPANIES WITH FEWER
THAN 100 TRUCKS. FLEETS
OPERATING IN CALIFORNIA'S PORTS,
SOMETIMES REFERRED TO AS
DRAINAGE FLEETS HAVE ENDURED A
CHALLENGING AND EVER CHANGING
ENVIRONMENT OVER THE PAST
SEVERAL YEARS. THE PANDEMIC
HEIRESS SUPPLY CHAIN CRISIS
CREATED A CRUSH OF ACTIVITY THAT
CREATED SEVERAL ISSUES FOR
DRAINAGE FLEETS. FIRST THE RUSH
TO SHIP LUCRATIVE IMPORT
CONTAINERS TO THE U. S WEST
COAST STRANDED AND EXTRAORDINARY
AMOUNT OF EMPTY CONTAINERS IN
AND AROUND THE PORTS. TRUCKERS
WERE OFTEN FORCED TO STORE EMPTY
CONTAINERS IN THEIR YARDS, WHICH
WOULD TIE UP CRITICALLY NEEDED
PIECES OF EQUIPMENT KNOWN AS
CHASSIS, EASE CHASSIS ARE
REQUIRED TO MOVE OCEAN
CONTAINERS BY ROAD IN THE
SHORTAGES CAUSED BY LACK OF
EMPTY CONTAINER STORAGE OR
REMOVAL OF EMPTY CONTAINERS
EXACERBATED INEFFICIENCIES,
DELAYS, COSTS AND UNFAIR FEES
FOR TRUCKERS. THE AMERICAN
SHEPHERD AND ULTIMATELY
CALIFORNIA CONSUMERS. THESE AND
NUMEROUS OTHER PANDEMIC ERA
BUSINESS PRACTICES HAVE RESULTED
IN BOTH STATE AND FEDERAL
LEGISLATION. AN ACTION BY THE
FEDERAL MARITIME COMMISSION
DESIGNED TO BETTER PROTECT
AMERICA'S SUPPLY CHAIN. THEN
OVER THE PAST YEARS, THINGS
COMPLETELY SHIFT IN THE OTHER
DIRECTION. CONCERNS OVER ONGOING
CONTRACT NEGOTIATIONS IN A
SLOWING ECONOMY. CARGO VOLUMES
ARE 20 TO 25% LOWER THIS YEAR IN
SAN PEDRO REPORTS THAN OVER THE
PREVIOUS NOW, THANKFULLY,
CONTRACT NEGOTIATIONS HAVE
CONCLUDED. UM THOSE ISSUES HAVE
RESOLVED IN CALIFORNIA, SEEKING
TO CONVINCE CARGO INTERESTS OR
SHIPPERS FROM THE RETAIL
INDUSTRY TO RESUME THEIR
BUSINESS AT THE WEST COAST PORTS
, BUT TRUCKERS ARE NOW FACING
SIGNIFICANT NEW CHALLENGES. THE
CALIFORNIA AIR RESOURCES BOARD'S
UPCOMING ADVANCED CLEAN FLEETS.
REGULATION WILL REQUIRE ALL
TRUCKS ENTERING SEA PORTS AND
RAIL YARDS FOR THE FIRST TIME TO
BE ZERO MISSIONS STARTING JUST A
FEW MONTHS FROM NOW. JANUARY OF
2024. TRUCKS ALREADY SERVICING
PORTS AND RAIL RAIL YARDS WILL
BE GRANDFATHERED IN UNTIL THEIR
13TH YEAR. BUT ALL TRUCKS MUST
BE ZERO EMISSIONS OF PORTS AND
RAIL YARDS BY 2035 PER THIS
REGULATION. GIVEN THE STATE OF
TODAY, ZERO MISSION TRUCKS AND
INFRASTRUCTURE VERY SIMILAR TO
MR JACOBS MESSAGE. THIS IS GOING
TO POSE A SERIOUS CHALLENGE. AS
OF JUNE OF THIS YEAR OF THE
NEARLY 21,000 TRUCKS AUTHORIZED
TO ACCESS THE SAN PEDRO REPORTS
, ONLY 105 OF THOSE TRUCKS WERE
ZERO EMISSIONS. ZERO MISSION
TRUCKS HAULED IN JUNE OF THIS
YEAR. JUST 0.76 OF THE
CONTAINERS IN THE PORT COMPLEX.
BY 2025. WE ESTIMATE THAT NEARLY
2000 TRUCKS WILL BE REQUIRED TO
BE REPLACED. FROM DIESEL TO ZERO
EMISSIONS BY 2028. THAT NUMBER
WILL GROW UP TO 8000 TRUCKS,
WHICH WILL NEED TO BE REPLACED.
CHARGING NEEDS FOR THIS FLEET
WILL GROW FROM IN EXCESS OF 100
MEGAWATTS. IN 2025, WHICH IS
ENOUGH BASICALLY TO POWER A
SMALL CITY. UM UP TO, UH. 4 TO
500 MEGAWATTS BY 2028 ENOUGH TO
POWER A LARGE CITY. UM AS MUCH
AS TWO THIRDS OF THIS CHARGING
JUST GIVEN THE NATURE OF THE
DRAINAGE FLEET. MAY NEED TO BE
PUBLICLY ACCESSIBLE RETAIL
CHARGING THESE TRUCKS WILL ALSO
BE £68,000 HEAVIER COST 2 TO 3
TIMES MORE THAN AN EQUIVALENT
DIESEL HAVE GREATLY REDUCED
RANGE AND WE'LL TAKE IN SOME
CASES HOURS ON A DAILY BASIS TO
CHARGE. I DO WANT TO CLEAR UP A
MISNOMER THAT I HEAR CONSTANTLY
ABOUT THE DRAINAGE FLEET THAT IT
IS ENTIRELY A SHORT HAUL
BUSINESS. WE DO A LOT OF SHORT
HAUL AND REGIONAL BUSINESS SOME
EXTREMELY SHORT HOLDING NEAR DOC
RAIL. UM HOWEVER, IN THE STATE
OF CALIFORNIA, UM, CONTAINERS
ROUTINELY TRAVEL 200 PLUS MILES
, UM, YOU KNOW, FOR INSTANCE,
FROM RENO AND THE SOUTHERN
CENTRAL VALLEY TO THE PORTS OF
OAKLAND VERY, VERY, UH, FREQUENT
OCCURRENCE. CALIFORNIA TRUCKERS,
ESPECIALLY THOSE IN DRAINAGE,
ARE NO STRANGER TO ENVIRONMENTAL
REGULATION. SINCE 2008 FLEETS
HAVE INVESTED ABOUT A BILLION
DOLLARS A YEAR IN CALIFORNIA TO
UPGRADE THE CLEANER TRUCKS,
REDUCING PARTICULATE EMISSIONS
AT THE PORTS. THIS IS VERIFIED
BY THE PORTS EMISSIONS
INVENTORIES. UH PARTICULAR
EMISSIONS ARE DOWN BY OVER 98%
AND SMOG FORMING EMISSIONS DOWN
BY 83% AND THOSE NUMBERS WILL
IMPROVE. UM EVEN JUST GIVEN THE
EXISTING TECHNOLOGY AND
REGULATIONS TIME TALKING TO
ABOUT THESE REGULATIONS ARE NOT
OPPOSED TO ZERO EMISSIONS.
THEY'RE ASKING. HOW AM I
SUPPOSED TO GET THERE? THE
DISAGREEMENTS ARE PURELY ABOUT
TIMELINE. FEASIBILITY COST NOT
ABOUT BEING OPPOSED TO THE
TRANSITION. AS YOU HAVE HEARD
FROM MY FELLOW PANELISTS, EACH
PART OF THE SYSTEM OF SYSTEMS IS
FACING SERIOUS POLICY AND
REGULATORY CHALLENGES. THE FEAR
AS WE EXIT A PANDEMIC INDUCED
SUPPLY CHAIN CRISIS IS THAT
CALIFORNIA IS CREATING A NEW
CRISIS OF OUR OWN MAKING. TO
CLOSING THOUGHTS, UH, FOR THE
SELECT COMMITTEE. FIRST
CALIFORNIA I'M GONNA SING THE
SAME SONG AS OUR FELLOW
PANELISTS MUST CONTINUE TO
INVEST IN ITS SUPPLY CHAIN. ONE
TIME INVESTMENTS ARE ARE GREAT.
HOWEVER ONGOING INVESTMENT IS
KEY SO THAT WE ARE BETTER
PREPARED FOR THE NEXT SURGEON
VOLUME, WHICH WILL COME
INCLUDING AN EMPHASIS ON
IMPROVING LANDSIDE EFFICIENCY,
BOTH FOR TRUCKING, RAIL AND
WAREHOUSING IN OPERATIONS FOR
CALIFORNIA TRUCKERS AND
SHIPPERS. SECOND. CALIFORNIA HAS
POSITIONED ITSELF AS A GLOBAL
LEADER IN THE DRIVE TO ZERO
EMISSIONS, BUT YOU CANNOT LEAD
IF NOBODY FOLLOWS. IT IS OF THE
GREATEST IMPORTANCE THAT WE GET
THIS TRANSITION RIGHT BECAUSE
THE WORLD IS WATCHING WHAT WE
ARE DOING. AND FAILURE IN THE
FORM OF A BROKEN SUPPLY CHAIN
WILL IMPACT CONSTITUENTS WHETHER
OR NOT THEY ARE LOCATED NEAR
PORTS THROUGHOUT THE STATE. MR.
CHAIR THANK YOU AGAIN FOR THE
INVITATION TO PARTICIPATE TODAY
, YOUR LEADERSHIP AS WELL AS THE
SELECT COMMITTEE MEMBERS IN
ELEVATING THE SUPPLY CHAIN
ISSUES HAPPY TO ANSWER ANY
QUESTIONS AND LOOK FORWARD TO
FURTHER DISCUSSION. THANK YOU.
THANK YOU VERY MUCH FOR
ENLIGHTENING US WITH YOUR
PRESENTATION, AND I'M SURE WE
WILL HAVE SOME QUESTIONS. I WANT
TO MOVE TO RACHEL MCKELLEN AND
THE PRESIDENT OF THE CALIFORNIA
AH RETAIL ASSOCIATION. THANK YOU
VERY MUCH FOR BEING WITH US.
TODAY WE HAVE 6 TO 8 MINUTES TO
PROVIDE US OR YOUR TESTIMONY.
YOUR PRESENTATION AND THE FLOOR
IS YOURS. SO THANK YOU VERY MUCH
SO MUCH. THANK YOU, CHAIRMAN
GIBSON ASSEMBLYMEMBER'S FONG. I
FEEL LIKE I'M PLAYING CLEANUP
BECAUSE ALL OF THESE GUYS END UP
WITH THE RETAIL BECAUSE WE'RE
THE ONES THAT ARE EVERY PART OF
THE SUPPLY CHAIN AND THEN
ULTIMATELY HAVE TO INTERFACE
WITH OUR CONSUMERS. SO
APPRECIATE THE OPPORTUNITY TO BE
HERE. MY NAME IS RACHEL,
MICHELIN PRESIDENT AND CEO FOR
THE CALIFORNIA RETAILERS
ASSOCIATION. WE REPRESENT WE
TAYLOR'S LARGE AND SMALL
THROUGHOUT THE STATE FROM
INDEPENDENT RETAILERS TO
NATIONAL BRANDS TO OUR
PHARMACIES ARE GROCERY STORES
AND OUR SPECIALTY AND RETAILERS
. I'M HONORED HERE TODAY TO
PROVIDE TESTIMONY ON BEHALF OF
RETAILERS OPERATING WITHIN THE
STATE OF CALIFORNIA. THE TOPIC
OF SUPPLY CHAIN CHALLENGES IS OF
PARAMOUNT IMPORTANCE, ESPECIALLY
AS IT PERTAINS TO CALIFORNIA'S
PORTS, WAREHOUSES, THE
REGULATORY LANDSCAPE, CARGO
SECURITY, THE IMPACT OF TRUCKING
ON ON THE GOODS MOVEMENT, THE IN
FACT THE EFFECT ON CONSUMERS THE
INFLUENCE ON CALIFORNIA'S
ECONOMY AND THE BROADER,
SYSTEMATIC ISSUES THAT IMPACT
OUR OPERATIONS. FIRST AND
FOREMOST, THE STATE SPORTS PLAY
A PIVOTAL ROLE IN FACILITATING
THE FLOW OF GOODS INTO AND OUT
OF OUR RETAIL BUSINESSES.
HOWEVER IT'S IMPERATIVE TO
ADDRESS THE CHALLENGES THAT HAVE
ARISEN WITHIN THIS CRITICAL
COMPONENT OF THE SUPPLY CHAIN.
OVER THE PAST SEVERAL YEARS, WE
HAVE WITNESSED AN ALARMING
INCREASE IN CONDUCT AND
CONGESTION AND DELAYS AT
CALIFORNIA'S MAJOR PORTS. THIS
CONGESTION HAS RESULTED IN
SIGNIFICANT DISRUPTIONS TO THE
TIMELY MOVEMENT OF GOODS LEADING
TO INVENTORY INVENTORY SHORTAGES
, INCREASED COSTS AND ULTIMATELY
DISSATISFIED CUSTOMERS. THE
SURGEON CONTAINER TRAFFIC,
COUPLED WITH LABOR SHORTAGES,
HAS OVERWHELMED PORTS OPERATIONS
. RETAILERS HAVE FACED EXTENSIVE
WAITING TIMES FOR UNLOADING
CARGO, LEADING TO INCREASE FEES
AND STORAGE COSTS. THESE DELAYS
NOT ONLY AFFECT OUR ABILITY TO
RESTOCK SHELVES, BUT ALSO
IMPACTS THE OVERALL HEALTH OF
OUR BUSINESSES. WAREHOUSING THE
WAREHOUSE SECTOR IS EQUALLY
CRUCIAL TO ENSURING THAT
PRODUCTS TRANSITION SMOOTHLY
FROM PORTS TO RETAILER SHELVES.
HOWEVER, IN CALIFORNIA, WHERE
HOUSING CHALLENGES FURTHER
INCREASE OUR SUPPLY CHAIN ISSUES
ESCALATING LAND COSTS HAVE
LIMITED AVAILABLE SPACE FOR
WAREHOUSING FACILITIES, LEADING
TO INCREASED COMPETITION AND
HIGHER RENTAL PRICES. THIS IN
TURN HAS CONTRIBUTED TO A
SITUATION WHERE RETAILERS OFTEN
STRUGGLE TO SECURE ADEQUATE
STORAGE FOR OUR PRODUCTS.
MOREOVER THE LABOR SHORTAGE
EXTENDS TO THE WAREHOUSING
SECTOR, RESULTING IN REDUCED
STAFFING LEVELS AND DIMINISH
OPERATION EFFICIENCY. AS A
CONSEQUENCE, RETAILERS HAVE
ENCOUNTERED DELAYS IN RECEIVING
PRODUCTS FROM WAREHOUSES,
CAUSING ADDITIONAL DISRUPTIONS
TO INVENTORY MANAGEMENT AND
DISTRIBUTION. SO IMPORTANT TO
YOU. ASSEMBLYMEMBER'S CARGO
THEFT AND RETAIL THEFT WOULD BE
REMISS IF I DIDN'T MENTION THE
IMPACT THAT THAT HAS, IN
ADDITION TO ALL THE CONGESTION
AND DELAYS, CALIFORNIA RETAILERS
ARE FACING SIGNIFICANT CONCERNS
REGARDING CARGO SECURITY AND
RETAIL THEFT. THE INCREASED
COMPLEXITIES OF THE SUPPLY CHAIN
HAVE UNFORTUNATELY CREATED
OPPORTUNITIES FOR CRIMINAL
ACTIVITY. CARGO THEFT, IN
PARTICULAR HAS BECOME A MAJOR
ISSUE, AND IT'S LEADING TO
SUBSTANTIAL FINANCIAL LOSSES FOR
RETAILERS AND THE BROADER
ECONOMY, CALIFORNIA'S VAST
NETWORK OF HIGHWAYS, RAILWAYS
AND PORTS. SERVE BOTH AS AN
ASSET AND A VULNERABILITY.
CRIMINAL ORGANIZATIONS EXPLOIT
THESE TRANSPORT ROUTES TARGETING
CARGO SHIPMENTS AND STORAGE
FACILITIES. THESE STUFFS NOT
ONLY RESULTED IN FINANCIAL
LOSSES FOR RETAILERS, BUT THEY
DISRUPT THE SUPPLY CHAIN CALLED
CAUSING FURTHER DELAYS AND
COMPLICATIONS. RETAIL THEFT BOTH
IN PHYSICAL STORES AND DURING
TRANSPORTATION COMPOUNDS. THE
CHALLENGES WE FACE IS NOT ONLY
AFFECTS OUR BOTTOM LINE, BUT
ALSO POSES SAFETY RISK TO
EMPLOYEES AND CUSTOMERS. THE
SYSTEMATIC IMPACT OF CARGO AND
RETAIL THAT FURTHER HIGHLIGHTS
THE INTERCONNECTED NATURE OF THE
SUPPLY CHAIN CHALLENGES WE
ADDRESSED TODAY. TRUCKING IS
ALSO A LIFEBLOOD OF THE GOODS
MOVEMENT WITHIN THE RETAIL
SUPPLY CHAIN EFFICIENT AND
TIMELY TREKKING OPERATIONS ARE
ESSENTIAL FOR THE DISTRIBUTION
OF GOODS FROM PORTS AND
WAREHOUSES TO OUR STORES.
UNFORTUNATELY THE TRUCKING
SECTOR FACES ITS OWN SET OF
CHALLENGES IN CALIFORNIA. THE
SHORTAGE OF QUALIFIED TRUCK
DRIVERS HAS LED TO INCREASED
TRANSPORTATION COSTS AND DELAYS
. THE STATE REGULATIONS,
INCLUDING THOSE RELATED TO
EMISSIONS AND REST PERIODS, CAN
SOMETIMES UNINTENTIONALLY HINDER
THE TIMELY MOVEMENT OF GOODS
LONG WAIT TIMES AT PORTS AND
WAREHOUSES ALSO IMPACT TRUCKERS
SCHEDULES, LEADING TO REDUCE
PRODUCTIVITY AND INCREASED
COSTS. BUT AT THE END OF THE
DAY, IT'S IMPORTANT TO RECOGNIZE
THAT THE CHALLENGES OUTLINED
HAVE A DIRECT IMPACT ON
CONSUMERS. THE DISRUPTIONS IN
THE SUPPLY CHAIN LEAD TO PRODUCT
SHORTAGES ON STORE SHELVES. IT
LIMITED IT LIMITS CONSUMER'S
CHOICES. AND IT'S DRIVING UP
COSTS. THESE CHALLENGES NOT ONLY
IMPACT OUR BUSINESSES, BUT
IMPACT THE EVERYDAY LIVES OF
CALIFORNIANS. CONSUMERS RELY ON
THE AVAILABILITY OF GOODS TO
MEET THEIR NEEDS AND PREFERENCES
. ELISA DELAYS IN THE SUPPLY
CHAIN CAN LEAD TO FRUSTRATION
AND INCONVENIENCE. MOREOVER THE
INCREASED COSTS OCCURRED DUE TO
SUPPLY CHAIN CHALLENGES CAN
RESULT IN HIGHER PRICES FOR
PRODUCTS AFFECTING CONSUMERS,
PURCHASING POWER AND OVERALL
ECONOMIC WELL BEING. WE ALSO
HAVE TO LOOK AT THE IMPACT ON
CALIFORNIA'S ECONOMY. BEYOND THE
DIRECT IMPACT ON RETAILERS AND
CONSUMERS. THE CHALLENGES IN
CALIFORNIA SUPPLY CHAINS
REVERBERATE THROUGH THE STATE'S
ECONOMY. AS RETAILERS, FACE
DISRUPTIONS AND INCREASED COSTS
THEIR ABILITY TO CONTRIBUTE TO
CALIFORNIA'S ECONOMIC GROWTH
DIMINISHES. RETAILERS ARE MAJOR
CONTRIBUTORS TO THE STATE'S TAX
REVENUE, EMPLOYMENT
OPPORTUNITIES AND OVERALL
ECONOMIC VITALITY. THE STATE'S
ECONOMIC SECTORS ARE
INTERCONNECTED AND DISRUPTIONS
IN THE SUPPLY CHAIN CAN HAVE
CASCADING EFFECTS WHEN THE
RETAIL SECTOR STRUGGLES IT
EXPECTS IT AFFECTS OTHER
INDUSTRIES, INCLUDING
TRANSPORTATION, MANUFACTURING
AND SERVICES. THE CUMULATIVE
IMPACT AND ULTIMATELY SLOW
ECONOMIC GROWTH AND HINDER THE
STATE'S ABILITY TO THRIVE. WHILE
WE RECOGNIZE THE IMPORTANCE OF
REGULATIONS AND MAINTAINING A
FAIR AND EQUITABLE BUSINESS
ENVIRONMENT, IT'S IMPERATIVE
THAT WE STRIKE A BALANCE BETWEEN
CONSUMER PROTECTION AND THE
SMOOTH FUNCTIONING OF THE RETAIL
SECTOR. CALIFORNIA'S STRINGENT
REGULATIONS, WHILE WELL
INTENTIONED, CAN SOMETIMES
INADVERTENTLY HAMPER RETAILS
ABILITY TO NAVIGATE THE SUPPLY
CHAIN EFFECTIVELY. IN THIS
CONTEXT, IT'S VITAL TO
ACKNOWLEDGE THAT THE SUPPLY
CHAIN IS A COMPLEX SYSTEM OF
SYSTEMS, EACH COMPONENT FROM
PORTS TO WAREHOUSES TO
REGULATORY BOARDS. CARGO
SECURITY TREKKING OPERATIONS,
CONSUMER IMPACT, ECONOMIC
IMPLICATIONS AND RETAIL
OPERATIONS ARE ALL
INTERCONNECTED AND
INTERDEPENDENT. CHANGES ARE
DISRUPTIONS IN ONE AREA WILL
HAVE A RIPPLE EFFECT THROUGHOUT
THE ENTIRE SYSTEM, IMPACTING
EFFICIENCY AND PERFORMANCE.
COMPLEX COMPLEX LABOR LAWS AND
COMPLIANCE REQUIREMENTS. GREAT
ADDITION, ADMINISTRATIVE BURDENS
FOR RETAILERS DIVERTING VALUABLE
RESOURCES AWAY FROM CORE
OPERATIONS. THE OVERSIGHT
PROVIDED BY REGULATORY BOARDS IS
ESSENTIAL. BUT THERE IS ROOM FOR
IMPROVEMENT IN TERMS OF
FOSTERING COLLABORATION BETWEEN
RETAILERS AND THESE BOARDS, A
MORE TRANSPARENT AND
CONSULTATIVE APPROACH COULD HELP
ENSURE THAT REGULATIONS ARE
PRACTICAL AND WORKABLE WITHIN
THE CONTEXT OF THE RETAIL SUPPLY
CHAIN OPERATIONS. IN CONCLUSION.
RETAILERS IN CALIFORNIA'S ARE
GRAPPLING WITH A COMPLEX WEB OF
CHALLENGES WITHIN THE BROADER
SYSTEM SYSTEM OF SYSTEMS
INJECTION AT THE PORTS,
WAREHOUSING, LIMITATIONS, CARGO
AND RETAIL THEFT. TRUCKING
RELATED DELAYS, CONSUMER IMPACT
AND ECONOMIC CONSEQUENCES, ALONG
WITH THE ENTRANCES OF REGULATORY
LANDSCAPE HAVE COMBINED TO
CREATE AN ENVIRONMENT THAT
HAMPERS EFFICIENCY AND
PROFITABILITY. IT'S MY HOPE THAT
THROUGH CONTINUED DIALOGUE AND
COLLABORATION, WE CAN WORK
TOWARDS SOLUTIONS THAT NOT ONLY
ADDRESS THESE CHALLENGES BUT
ALSO RECOGNIZE AND NAVIGATE THE
INTERCONNECTEDNESS OF THE
VARIOUS COMPONENTS THAT MAKE UP
THE RETAIL SUPPLY CHAIN. THANK
YOU FOR YOUR TIME AND ATTENTION
, AND I'M OPEN TO ANY QUESTIONS.
THANK YOU VERY MUCH, MISS
MICHELIN. THANK YOU VERY MUCH
FOR YOUR TESTIMONY. AND AGAIN TO
ARM OUT TO THE PANEL. THANK YOU
VERY MUCH FOR BEING HERE AND
ENLIGHTENING US AND EDUCATING US
IN THIS SPACE. AND SO AT THIS
POINT, I WANT TO ASK A QUESTION,
THEN CERTAINLY INVITE MY VICE
CHAIR TO ASK QUESTIONS AS WELL.
DO ANY OF YOU AND ANY ONE OF YOU
CAN ANSWER. ASK THIS QUESTION OR
ANSWER HIS QUESTION? UM DO ANY
OF THE PANELISTS THINK THERE ARE
SOLUTIONS THAT THE LEGISLATURE
AH SHOULD OR COULD TAKE, UM, TO
BOLSTER YOUR PERSPECTIVE
INDUSTRY. UM AND WHAT DOES THAT
LOOK LIKE FROM YOUR LENS? CHRIS
. THERE WE GO. NO THANK YOU FOR
THE QUESTION, MR CHAIR, AND, UM
YOU KNOW, I I'LL STICK WITH THE
THEME OF MY REMARKS AND SPECIFIC
TO THIS TRANSITION. UM AWAY FROM
INTERNAL COMBUSTION 20. I PUT IT
INTO TWO BUCKETS REALLY IS WHEN
YOU TALK ABOUT THE TRANSITION OF
ZERO EMISSIONS. UM, THERE IS NOT
A 1 TO 1 REPLACEMENT.
UNFORTUNATELY FOR THE
TECHNOLOGIES THAT WE HAVE TODAY,
THERE IS NO EITHER BATTERY
ELECTRIC OR HYDROGEN FUEL CELL
TRUCK. PLUS THE INFRASTRUCTURE
THAT IS GOING TO DO EXACTLY WHAT
A DIESEL TRUCK DOES AT THE SAME
COST AT THE SAME EFFICIENCY, AND
SO, UM, THERE ARE SPECIFIC USE
CASES THAT ARE UM, I'D SAY
PREFERENTIAL FOR SPECIFICALLY
BATTERY ELECTRIC TECHNOLOGY,
WHICH IS MORE HIGHLY DEVELOPED
RIGHT NOW. AND POLICIES OF THE
STATE OF CALIFORNIA REALLY
SHOULD BE GEARED TOWARDS MAKING
SURE THAT THOSE SPECIFIC USE
CASES ARE SUPPORTED TO THE
MAXIMUM EXTENT POSSIBLE BY WAY
OF INCENTIVES BY WAY OF SMART
POLICY. UM WE ALSO HAVE A MAJOR
ISSUE WHERE, UM, PREVIOUS
GENERATIONS OF TECHNOLOGIES THAT
THAT BOTH OURSELVES AND
RAILROADS OF IMPLEMENTED UM, DID
NOT REQUIRE ANYTHING OTHER THAN
FOR US TO GO TO A TRUCK
DEALERSHIP PURCHASED THE TRUCK.
FILL IT UP WITH DIESEL AND YOU
GO OPERATE. ZERO MISSION TRUCK,
SPECIFICALLY, A BATTERY ELECTRIC
TRUCK REQUIRES YOU TO ACTUALLY
INTERFACE WITH YOUR LOCAL
UTILITY. UM TO GET
INTERCONNECTED YOU'RE CHARGING
FOR, UM, CLASS EIGHT DRAINAGE
TRUCKS SPECIFICALLY IS GOING TO
IMPOSE A HUGE BURDEN ON A
ADDRESS IN CIRCUIT SPECIFIC
BASIS FOR THOSE UTILITIES, AND I
KNOW THAT OTHER, UM, COMMITTEES
AND OTHER AUTHORS HAVE BEEN
ACTUALLY TACKLING THIS ISSUE
WITH RESPECT TO INTERCONNECTION
DELAYS, JUST WITH OUR EXISTING
DEMANDS FOR THE STATE'S INVESTOR
OWNED UTILITIES, AND SO I
FORESEE. A LOT OF ISSUES THERE
THAT WE ARE GOING TO NEED TO BE,
I THINK MORE NIMBLE AND SMARTER
THAN JUST WHAT WE'VE IMPOSED
TODAY, WHICH IS A BLUNT FORCE
REGULATION, WHICH BASICALLY SAYS
IT DOESN'T REALLY MATTER IF
YOU'RE, UM PARTICULAR DUTY CYCLE
OR MODEL IS GOING TO WORK. WITH
ZERO EMISSION TECHNOLOGY MUST DO
IT. I THINK WE NEED TO PULL BACK
AND BE A LITTLE BIT SMARTER
ABOUT HOW WE IMPLEMENT AND THE
STATE'S POSITION RIGHT NOW
BECAUSE OF HOW EARLY WE ARE IN
THIS TRANSITION TO BE. WE WANT
TO SUPPORT THE SUCCESS OF
ANYBODY. MAKING THE TRANSITION
IS ARE EMISSION TECHNOLOGIES,
AND THAT'S QUITE FRANKLY, NOT
WHERE WE ARE RIGHT NOW. THANK
YOU VERY MUCH, RACHEL BUILDING A
LITTLE BIT ON THAT, BUT I THINK
FROM A BROADER PERSPECTIVE, WHAT
I SEE HAPPENING IS THAT YOU HAVE
TOO MANY COOKS IN THE KITCHEN.
AND WE DON'T HAVE A BROAD BASE
AND I WOULD HOPE. I THINK
THERE'S SOMETHING WE'VE TALKED
ABOUT WITH THE GOODS MOVEMENT.
SELECT YOU KNOW IS BRING
EVERYONE TOGETHER. I THINK THAT
WE NEED TO HAVE A PLACE WHERE WE
CAN HAVE CONVERSATIONS. I THINK
YOU KNOW, CHRIS BRINGS A CERTAIN
PERSPECTIVE FROM TRUCKING THAT
IMPACTS MY INDUSTRY AND MY
MEMBERS. AND I WOULD SAY THAT WE
? WE'VE ALWAYS SAID WE'RE NOT
OPPOSED TO SUSTAINABILITY OR ANY
OF THAT. BUT THE REGULATIONS
HAVE TO WORK AND I THINK IT'S
DONE IN A VACUUM. YOU HAVE ONE
REGULATORY BOARD DOING ONE
THING. YOU HAVE ANOTHER
REGULATORY BOARD DOING AN
INDIRECT SOURCE RULE. YOU HAVE
THE LEGISLATURE DOING SOMETHING
THERE, AND NO ONE'S LOOKING AT
IT FROM A BROAD PERSPECTIVE AND
TO SAY OKAY, WELL, IF YOU DO
THIS, WHAT IMPACT IS THAT GOING
TO HAVE ON THIS? AND I THINK
THAT'S WHAT WE'RE MISSING. YOU
KNOW, I THINK DURING THE CRISIS
ALL OF US WERE ADVOCATING FOR
KIND OF A PORT CZAR, RIGHT?
SOMEONE WHO COULD REALLY OVERSEE
OR GOODS MOVEMENTS ARE AND
OVERSEE WHAT'S GOING ON. THAT
NEVER REALLY HAPPENED. I THINK
WE'RE ALL HOPEFUL THAT YOU CAN
YOU KNOW, GO INTO THAT WORLD. IT
REALLY HELP US UNDERSTAND? BUT
YOU HAVE TO BRING EVERYONE
TOGETHER. SIT AROUND A TABLE.
LET'S ROLL UP OUR SLEEVES. LET'S
FIGURE OUT HOW TO MAKE IT WORK.
BECAUSE I THINK WE HAVE MORE IN
COMMON. THEN WE DO IN AN ISSUES
THAT WE DON'T AGREE WITH. BUT
BECAUSE WE HAVE SO MANY I ALWAYS
SAY WHAT FIREHOSE AM I LOOKING
AT THIS DAY BECAUSE IT'S ALWAYS
COMING AT YOU, AND I THINK WE
NEED AN OVERREACHING OPPORTUNITY
TO HAVE THESE CONVERSATIONS AND
REALLY TALK ABOUT SOLUTIONS.
THANK YOU VERY MUCH, AND I WILL
BE BRIEF. OKAY. THIS CHERRY, UM
FIRST OF ALL, KEEP DOING WHAT
YOU'RE DOING WITH THIS COMMITTEE
, UM, UNDERSTAND THE MARKETPLACE
, UNDERSTAND THE SUPPLY CHAIN
STAKEHOLDERS AND THE WAY WE DO
BUSINESS AND WHAT WE'RE DOING,
JUST KEEP DOING. WHAT YOU'RE
DOING WITH THIS COMMITTEE IS
NUMBER ONE. NUMBER TWO IS FAR AS
THE LEGISLATURE IS A BODY AS A
WHOLE DO NO DO NO HARM. THERE
ARE A LOT OF BAD BILLS. THERE
ARE FEW REFERENCE TODAY. MR
HARGROVE MENTIONED ONE ON 1000
FT BUFFER ZONES AND JUST CREATE
MORE PROBLEMS THAN THEY SOLVE.
THE I S R CONCEPT IS A MISGUIDED
CONCEPT. IT'S LIKE RENT CONTROL.
IT'S NOT GOING TO HELP. MOVE
FREIGHT ANY CLEANER. UM, AND
IT'S GONNA MOVE LESS OF IT. UM
AND THEN, THIRDLY, BE CAREFUL
NOT TO PAPER OVER BAD POLICY
WITH SUBSIDIES, YOU PASS A OR AN
ACT OR PROMULGATE A BAD
REGULATION OR BAD PIECE OF
POLICY. AND THEN YOU KNOW,
THERE'S A COST TO THAT. COMPLETE
COMPLIANCE WITH THAT REGULATION.
FOR YOU TO STEP IN AND PROVIDE
SUBSIDY IS LIKE A PARENT GIVING
THEIR KID A CREDIT CARD. IT
DOESN'T REALLY SOLVE THE
SPENDING PROBLEM OR THE
UNDERLYING PROBLEM. THE BAD
POLICY ISSUE. IT JUST RUNS UP. A
TAB, AND THE POLICY IS STILL
BAD. SO THOSE ARE MY THREE
SUGGESTS. THANK YOU VERY MUCH.
UM, BUT I DO, UM REGARDING
RACHEL'S QUESTION. I THINK THAT,
UM MY I JUST REFER TO MY TEAM.
UM, THERE. I THINK THERE'S A
PIECE OF LEGISLATION IS MOVING
THROUGH THE PROCESS. MAYBE IT'S
IN THE SENATE THAT WILL CREATE A
CZAR. UM TOO, BECAUSE I THINK
THAT WE NEED TO BE HAVING
CONVERSATIONS SO EVERYONE KNOWS
EXACTLY WHAT'S BEING SAID, AND
WE DON'T HAVE THE UNINTENDED
CONSEQUENCES THAT WE SEE TODAY.
RIGHT SO IT'S IMPORTANT THAT WE
ELEVATE UH, YOU KNOW THAT
INTENTION OF THAT PIECE OF
LEGISLATION, UM, AND THE WISDOM
THAT GOES INTO THAT TO MAKING
SURE THAT YOU KNOW ALL ENTITIES
, ALL STAKEHOLDERS ARE HAVING
THAT ROBUST CONVERSATION TO
MAKING SURE THAT WE MINIMIZE THE
UNINTENDED CONSEQUENCES THAT WE
CAN HAVE ON CALIFORNIA'S ECONOMY
. AND SO WE LOOK FORWARD TO
SEEING WHERE THAT BILL LANDS
MOVING FORWARD. SO I WANT TO SEE
IF MY COLLEAGUE MR FONG HAS, UM
SOME QUESTIONS FOR YOU. THANK
YOU. MR CHAIR, CERTAINLY SUPPORT
THE IDEA OF A SUPPLY CHAIN
COORDINATOR. CARRY THAT BILL.
SENATOR GONZALEZ CARRIED SIMILAR
BILL. IT WAS IT STALLED OUT, BUT
, UH CERTAINLY I THINK YOU'RE
ABSOLUTELY RIGHT THAT I'M NOT
BIASED THERE, BUT YOU'RE
ABSOLUTELY RIGHT WHEN IT COMES
TO HAVING SOMEONE OVERSEEING THE
SUPPLY CHAIN, UM APPRECIATE
EVERYONE'S COMMENTS AND
TESTIMONY. YOU GUYS SHED THE
LIGHT. ON THE REAL WORLD
CONSEQUENCES OF THE POLICIES
THAT COME AT THE LEGISLATURE,
ESPECIALLY WHEN IT AFFECTS THE
SUPPLY CHAIN. I ALWAYS I LIKE
THAT THE REFERENCE OF SYSTEM OF
SYSTEMS PEOPLE VIEW THE SUPPLY
CHAIN AND WITHIN THEIR OWN SILO,
AND HOW THEY ALL INTERACT WITH
EACH OTHER IS CRITICALLY
IMPORTANT. I DID WANT TO ASK,
UM, AT LEAST FROM THE RAIL AND
TRUCKING SIDE. THERE'S BEEN, UM
SOME INVESTMENT AND THE PUSH TO
DO SOME MORE DATA MANAGEMENT AND
IN KIND OF FACILITATE, UM, UH,
COMMUNICATION. HOW IS THAT GOING
? FROM YOUR STANDPOINT, I KNOW
IT'S THE MOU AND IT'S EVERYTHING
IS REALLY AN INITIAL, BUT YOU
HAVING CONVERSATIONS, IS IT
GOING TO WORK WITHIN YOUR YOUR
MEMBERS IN TERMS OF SMOOTHING
OUT BUILDING MORE EFFICIENCIES
WITH WITH WITH WITH WITH, UM
WITH YOUR TRUCK DRIVERS OR WITH
WITH YOUR RAIL OPERATIONS. WHAT
I'M HEARING FROM OUR MEMBERS IS
, UM YOU KNOW, YOU'VE GOT
MULTIPLE MARINE TERMINAL
OPERATORS WITH THEIR OWN
PROPRIETARY SOFTWARE. UM
TRUCKERS HAVE THEIR OWN TRUCK
MANAGEMENT SYSTEMS, AND I THINK
THAT THERE IS A RECOGNITION
AMONGST EVERYBODY THAT THAT TO
TRULY GET A COORDINATED SUPPLY
CHAIN, THE SYSTEMS NEED TO TALK.
UM AS FAR AS WHETHER OR NOT THE
EFFORTS WITH THE MOU ARE GOING
TO TRULY FIX THAT. I MEAN, I'VE
BEEN INVOLVED IN THESE
DISCUSSIONS LONG ENOUGH TO HAVE
GONE THROUGH A FEW ITERATIONS OF
THIS, BUT I THINK THAT THAT IS
THE RECOGNITION AND HOPE. THAT
DATA NEEDS TO TALK TO EACH OTHER
FOR EVERY NOTE IN THE SUPPLY
CHAIN TO REALLY BE COORDINATED.
UM AND SO I WOULD JUST
ENCOURAGE, YOU KNOW, STATE
SUPPORT FOR THOSE EFFORTS MOVING
FORWARD. I KNOW THAT. UM
DIRECTOR SOROKA AND OTHERS ARE
REALLY, YOU KNOW, FLYING THAT
FLAG FOR MORE DATA INTEGRATION.
SO, UM ASSEMBLYMEMBER'S PHªN.
WE'VE DEVELOPED A NUMBER OF
APPLICATIONS TECHNOLOGY, UM,
THAT WILL ALLOW OUR CUSTOMERS TO
HAVE TRANSPARENCY INTO WHERE
THEY'RE AFRAID IT IS AT ANY TIME
ON OUR RAILROAD AND SO THEY CAN
SCHEDULE PICKUPS DELIVERIES THEY
CAN COORDINATE BETTER WITH, UH,
CONTAINER MOVEMENTS OR ANOTHER
AFRAID AS WELL. UM SO I THINK
THAT'S PROGRESS. AS FAR AS THE
RAILROADS, CONCERN AND OUR
RELATIONSHIP WITH WITH THE
BENEFICIAL CARGO OWNERS. UM, I
THINK WHEN A BROADER TECHNOLOGY
BASIS BLOCKCHAIN TECHNOLOGY IS.
STILL HOLDS. PROMISE IT'S YET TO
BE FULFILLED, BUT THAT WOULD
BEGIN TO ADDRESS SORT OF THE
INDUSTRY SEGMENTATION SO BETWEEN
US AND OUR CUSTOMERS. WE CAN
DEVELOP THAT THAT TECHNOLOGY AND
THAT ACCESS AND THAT
TRANSPARENCY BUT BETWEEN
DIFFERENT INDUSTRIES AND
DIFFERENT STAKEHOLDERS, WHETHER
IT'S SUPPORT AND THE TRUCKER AND
THE RAILROAD AND THE BENEFICIAL
CARGO OWNER AND THE STEAMSHIP
LINE THAT THAT THAT HAS YET TO
HAPPEN, I THINK, UM AND THEN
LASTLY, I WOULD SAY YOU KNOW
WHEN, WHEN WE CALIFORNIA? NO
ILLINOIS HAS DONE SOMETHING
SIMILAR PASS LAWS OR ENACT LAWS
THAT ARE MEANT TO ADDRESS DATA
PRIVACY, BUT THEN ARE ABUSED OR
MISUSED. I THINK OF A CASE IN
ILLINOIS WHERE WE HAVE KIOSKS IN
OUR IN OUR INTERMODAL FACILITIES
THERE IN ILLINOIS AND CALIFORNIA
. OTHER PLACES THAT ALLOW FOR A
TRUCKER TO COME IN, AND YOU KNOW
WITH AN OPTICAL SCANNER. MOVE IN
AND OUT. IT CUTS THE TIME DOWN
AND ELIMINATES CUES AND YOU KNOW
EXCESS EMISSIONS AND SPEEDS, THE
TRUCKERS TRIP AND THE AND THEIR
AND THEIR CUSTOMERS TRIP AS WELL
IN THE DELIVERY OF THEIR GOODS,
BUT, UM LEVER TRIAL LAWYERS HAVE
BEEN ABLE TO TAKE THAT LAW AND
INTERPRET AND GET THE COURTS TO
AGREE WITH THAT INTERPRETATION
AND THAT THAT WITHOUT PROPER
CONSENT FROM A THIRD PARTY
VENDOR THAT OWNS AND OPERATES
THOSE OPTICAL SCANNERS. THAT
SOFTWARE. UM THE RAILROAD FACES
HUGE LIABILITY FOR EACH AND
EVERY EXIT AND ENTRY INTO THAT
FACILITY BY EACH AND EVERY
TRUCKER AND THAT'S THOSE. THOSE
NUMBERS ADD UP VERY QUICKLY, SO
WE GOTTA BE CAREFUL WITH WITH
THAT APPLICATION. ABSOLUTELY.
THAT IT'S SPEAKING TO ME. IT'S
PREACHING TO THE CHOIR, SAYING
THE OBVIOUS, BUT THERE'S A
CALIFORNIA DOESN'T HAVE A GOOD
TRACK RECORD WHEN IT COMES I T
SYSTEMS AND SO I JUST WANT TO
MAKE SURE YOU GUYS ARE THE TIP
OF THE SPEAR. YOU KNOW, MAKING
SURE THAT EVERYTHING IS
COORDINATING BUILDING
EFFICIENCIES MOVING, YOU KNOW,
POTENTIALLY A LARGER VOLUMES AS
AS TIME GOES ON, AND SO WE WANT
TO MAKE SURE ESPECIALLY AS WE'RE
INVESTING AS A STATE THAT
EVERYTHING IS COMMUNICATING WITH
EACH OTHER. THAT ACTUALLY HELPS
YOU. IT'S VALUE ADDED TO WHAT
YOU'RE DOING AND NOT, UH, AN
OBSTACLE OR BARRIER. AND I THINK
THAT'S A FEAR THAT THAT I HAVE
THAT I THINK OTHERS, UH, SHARE
AS WELL. UH WANTED TO GO TO THE
RETAILERS. YOU DID BRING UP THE
ISSUE THAT'S VERY IMPORTANT TO
MY TO ME, WHICH IS THE CARGO
THEFT AND RETAIL THAT THE
GOVERNOR JUST ISSUED JUST
ANNOUNCED. I THINK IT MOMENTS
AGO. THESE TRIPLING THE CHP
PRESIDENTS IN L. A RECOGNIZING,
UM WHAT'S GOING ON IN THE RETAIL
THEFT SIDE? AND THEN OF COURSE
WE SAW WHAT HAPPENED, I THINK,
UM, ON THE ON THAT THE CARGO
THEFT SIDE WITH WHAT WAS GOING
ON WITH RAIL. I WAS WONDERING IF
YOU COULD PROVIDE SOME SOME
INITIAL DATA OR SOME TRENDS. I
KNOW IT'S ALL I MEAN, I GUESS
IT'S GONNA BE ALL KNOW WHAT'S
GOING UP AND I THINK IT'S GOING
UP EXPONENTIALLY, BUT I THINK IN
IN IN TERMS OF IT FOR US, LIKE
CONCEPTUALLY TRYING TO WRAP AH,
OUR HANDS AROUND THE EXTENT OF
THE PROBLEM AND HOW PERVASIVE IT
IS. I DON'T KNOW IF YOU HAVE
SOME SOME DATA THAT INITIAL DATA
THAT YOU'VE COLLECTED FROM YOUR
MEMBERS OR OR FROM WHAT YOU'VE
SEEN FROM YOUR SECURITY TEAMS.
I'LL CLEAN OUT THE ANSWER AFTER
GO AHEAD BECAUSE YOU YOU MAY YOU
PROBABLY KNOW MORE ABOUT IT THAN
I DO. SO IT'S GOOD THAT YOU'RE
BACK STOPPING WHATEVER I HAVE TO
SAY AND CLEAN THAT UP. UM I
DON'T HAVE DATA FOR YOU.
ASSEMBLYMEMBER'S SOMETHING I CAN
I CAN GET TO YOU. WE TO THE
EXTENT THAT WE HAVE DATA, WE
TEND TO KEEP IT CLOSE TO THE
VEST FOR A NUMBER OF REASONS. UM
BUT I WILL SAY THAT YOU KNOW,
THESE ARE, UM THIS IS ORGANIZED
CRIME. THIS IS ARE THESE AREN'T
ONE OFFICES ARE VERY
SOPHISTICATED ORGANIZATIONS THAT
HAVE UM, YOU KNOW, THEY'VE GOT
AN INTELLIGENCE GATHERING
COMPONENT. THEY'VE GOT A
TRANSPORTATION TEAM. UM, THEY'VE
GOT AN OPERATIONS TEAM THAT YOU
KNOW, ACTUALLY BREAKS INTO THE
CONTAINER AND THEY EXPLOIT
OPPORTUNITIES. UM AS AS WE MOVE
FREIGHT FASTER AND GET OUT OF
SORT OF THE CAPACITY AND
CONGESTION ISSUES THAT WE HAD
THAT WERE PARTICULARLY ACUTE
DURING THE LAST STAGES OF THE
PANDEMIC, UM, THAT THAT
MINIMIZES THE EXPOSURE, BUT BUT
THERE ARE SOPHISTICATED RINGS
NOT JUST IN CALIFORNIA. BUT YOU
KNOW, THROUGHOUT OUR SOUTHERN
TRANSCONTINENTAL ROUTE, WHERE
THERE ARE TEAMS OF ORGANIZED
CRIME TEAMS THAT WILL WILL BREAK
INTO AUTO RACKS AS THEY'RE
MOVING, YOU KNOW, AS A MOVING
DOWN THE RIGHT AWAY, UM, SO IT'S
IT IS, IT IS, IT IS VERY
CHALLENGING, AND, UM, BUT I
WOULD BE HAPPY TO SHARE THAT.
AND IN A MAYBE A ABSOLUTELY
RUSSIAN SIDEBAR WITH YOU. BUT
IT'S A PROBLEM. I GUESS IT'S THE
CONCLUSION. IT'S A PROBLEM. I
THINK THAT ON ON THE RETAIL AND
IT'S NOT JUST, YOU KNOW. WELL I
MEAN, TRUCKS ARE GETTING HIT.
THEY'RE GOING TO DISTRIBUTION
CENTERS AND HITTING THEM. THEY
ARE VERY THEY ARE VERY
SOPHISTICATED. BUT I THINK THE
OTHER PIECE OF IT IS THAT
THEY'RE ALSO RECRUITING PEOPLE
THAT YOU KNOW, MAYBE PEOPLE WHO
AND HOUSED PEOPLE WITH MENTAL
HEALTH ISSUES PEOPLE WHO ARE
DRUG ADDICTED, SO IT'S A MAJOR
PROBLEM. IT'S THIS IS THE NUMBER
ONE ISSUE RIGHT NOW FACING THE
INDUSTRY. IS ORGANIZED RETAIL
CRIME AND RETAIL THEFT. I MEAN,
A LOT OF RETAILERS ARE DOING
THEIR THEIR CALLS THIS WEEK.
THEIR EARNINGS CALLS. IT'S THE
NUMBER ONE THING I DO WANT TO
SAY THAT THAT WE WERE ABLE TO
GET MOVEMENT WITH THE ORGANIZED
RETAIL CRIME TASK FORCES. WE
WERE ABLE TO GET THE FUNDING.
YOU KNOW, THE GOVERNOR STEPPED
UP ABOUT TWO YEARS AGO WITH
FUNDING. WE JUST FINISHED THE
ROUND OF GETTING OUT THE LOCAL
LAW ENFORCEMENT GRANTS. SO I
THINK THAT'LL HELP. UM, AND SOME
OF THIS, BUT THAT'S ANOTHER
PIECE OF THIS CONVERSATION IS
THAT WE HAVE TO HAVE A
CONVERSATION ABOUT HOW DO WE
PROTECT? YOU KNOW THE EMPLOYEES
AND IN THE IN THE PORTS AND
TRUCKING AND RAIL AND RETAIL?
AND HOW DO WE GET A HANDLE ON
THIS? BECAUSE IT IS GETTING
WORSE. I MEAN, YOU OBVIOUSLY I
KNOW, YOU KNOW, ASSEMBLYMEMBER'S
GIBSON THAT'S DOWN IN YOUR AREA.
I MEAN, IT'S YOU KNOW, EVERY DAY
I'M GETTING EMAILS FROM THESE
TYPES OF ORGANIZED CRIME
ACTIVITY AND YOU KNOW WE'RE
WILLING TO STEP UP. I MEAN, YOU
AND I HAVE HAD CONVERSATIONS
WERE WILLING TO DO AND WORK WITH
ANYONE WE CAN. BUT IF WE CAN'T
GET A HANDLE ON IT, IT'S GOING
TO HAVE A HUGE IMPACT JUST TO
NOT ONLY TO OUR PARTNERS BUT TO
THE CONSUMERS WHO ULTIMATELY
WON'T BE GETTING THE PRODUCTS.
ALSO IMPACTED, TOO. I DON'T KNOW
IF YOU WANTED TO ADD ANYTHING IN
TERMS OF THE CARGO YOU CARRY AND
JUST WHAT YOU'RE EXPERIENCING AS
WELL. JUST SAD THAT THESE, UM
WHOEVER IS ACTUALLY, YOU KNOW,
PERFORMING THESE ACTIVITIES ARE
VERY SOPHISTICATED. ONE OF OUR
BOARD MEMBERS, ACTUALLY, UM,
THEIR AUTHORITY WITH OUR FEDERAL
SAFETY REGULATOR WHO WE OBTAINED
AUTHORITY THROUGH UM, WAS
ACTUALLY TAKEN FRAUDULENTLY BY
SOMEBODY WHO I'M ASSUMING WAS
ACCEPTING LOADS, POTENTIALLY
ENTERING INTO SECURE FACILITIES
USING THEIR CREDENTIALS, AND
THIS IS SOMETHING THAT WE'RE
REPORTING DIRECTLY TO THE FMCSA
, A THE SAFETY REGULATOR WHO HAS
JURISDICTION BUT JUST TO ADD ON
THIS ISN'T JUST, YOU KNOW, SMASH
AND GRAB SORT OF THINGS. THERE'S
CLEARLY VERY SOPHISTICATED
CRIMINAL RINGS INVOLVED IN THIS
ACTIVITY. AND I THINK THAT'S I
GUESS WHAT? THE EMPHASIS HERE
FOR THIS FOR THIS COMMITTEE AND
INTO AS WE COMMUNICATE WITH THE
PUBLIC IS THAT THE SUPPLY CHAIN
IS TRYING TO GET PRODUCTS TO
EITHER THE STORE THE HOME AND IF
IT DOESN'T GET THERE AND THE
SUPPLYING CHAIN HAS HAS BROKEN
DOWN. PARTLY BUT SOMETIMES IT'S
A CHUCK POINTS AT AT THE PORTS.
SOMETIMES IT'S THE LACK OF
WORKFORCE AND THE NEED FOR MORE
WAREHOUSES AND INFRASTRUCTURE,
BUT THE OTHER PIECES IF IT GETS
STOLEN OR TARGETED ALONG THESE
ROUTES, UM, THAT IS ALSO
IMPACTING THE SUPPLY CHAIN. AS
AS AS YOU CORRECTLY POINTED OUT,
AND SO WE HAVE TO GET BEYOND THE
SILENCE OF SUPPLY CHAIN IS JUST
YOU KNOW, MOVING THINGS AROUND
WELL, THE SUPPLY CHAIN IS ALSO
VULNERABLE TO CRIMINAL ACTIVITY
, AND WE HAVE TO NOT ONLY
SUPPORT OUR LAW ENFORCEMENT AND
WHAT THEY'RE DOING IN OUR
COMMUNITIES, BUT WE ALSO HAVE TO
CHANGE THE LAWS TO ACTUALLY PUT
MORE CONSEQUENCES IN
ACCOUNTABILITY SO THAT WE CAN
ACTUALLY PROTECT THE CARGO. THE
PRECIOUS CARGO THAT SPEED
THEY'RE SUPPOSED TO GO TO THE
STORES OR COME TO OUR HOMES.
THANK YOU, MR CHAIRMAN. THANK
YOU VERY MUCH. LET ME SIMPLY SAY
THANK YOU VERY MUCH FOR OUR
PANEL BOTH HERE AND THE OTHER
TWO. THAT WAS THAT PRESENTED
BEFORE US. I THINK THE
CONVERSATION THAT WE'RE HAVING
IS ABSOLUTELY NECESSARY.
ESPECIALLY IN THIS TIME. RIGHT
NOW. WE WANT TO MAKE SURE THAT
WE PROTECT, UM, THE ECONOMY OF
CALIFORNIA MOVING FORWARD, AND I
THINK THAT YOUR VOICES TODAY UM,
HELPS US GET TO THAT. GET A GET
A PLAN CLOSER TOWARDS REACHING
THAT PARTICULAR IN. I WANT TO
THANK MY COLLEAGUES, UM, FOR
BEING WITH US TODAY. UM AND
BEING PART OF THIS HEARING AT
THIS POINT IN TIME, AS I
INDICATED PREVIOUSLY WHEN I
OPENED UP GIVES AN OPPORTUNITY
FOR THE PUBLIC TO WEIGH IN, WE
WOULD INVITE YOU TO GO TO THAT
MICROPHONE. UM TO MY LEFT YOUR
RIGHT. YOU HAVE TWO MINUTES TO
PROVIDE, UM PUBLIC COMMENT. UM
TO, UH, THIS BODY. UM AND, UM,
WE OPEN IT UP. I'M AT THIS POINT
IN TIME FOR ANYONE THAT WANTS TO
I HAVE COMMENTS THAT DIDN'T GET
A CHANCE TO SPEAK. GOING ONCE.
WE DON'T WANT TO BREAK ANYONE'S
NECK TO COME HERE GOING TWICE.
THANK YOU. THANK YOU VERY MUCH
AGAIN. I WANT TO THANK MY MOM.
ALL OF YOU, UM ALL OF OUR
SPEAKERS WERE PROVIDING THE
INSIGHTS REGARDING THIS
IMPORTANT ISSUE. THIS TYPE OF
CONVERSATION THAT ISN'T THAT IS
INCLUSIVE OF MANY DIVERSE
PERSPECTIVES IS THE WAY WE NEED
TO EXPAND OUR UNDERSTANDING OF
HOW WE MOVE FORWARD ON COMMON
GROUND. AGAIN I WANT TO THANK
YOU ALL FOR JOINING US FOR THIS
HEARING TODAY. UM, I WANT TO
ALSO LIFT UP AND THANK OUR
SELECT COMMITTEE MEMBERS, AS
WELL AS OUR SPEAKER, ROBERT
REVIS FOR APPROVING THIS HEARING
FROM MOVING TO MOVE FORWARD
TODAY AND HIS TEAM FOR WORKING
WITH OUR TEAM. I ALSO WANT TO
LIFT UP AND ELEVATE. UM WHAT I
SAID EARLIER. WE WILL BE HAVING
UM, OUR SELECT COMMITTEE HEARING
THAT WILL BE IN THE PORTS OF LOS
ANGELES ON SEPTEMBER THE 26 FROM
10 A.M. UNTIL 2 P.M. AND WE
THANK THE COURT OF LOS ANGELES
FOR HOSTING US THAT DAY. WE HAVE
A FLYER WILL BE POSTING IT ON
OUR WEBSITE. ONCE WE COMPLETE
IT'S IT WILL BE UP IN TIME
ENOUGH FOR PEOPLE TO SEE AGAIN.
SEPTEMBER 26 2023 AT 10 A.M. AT
THE PORTS OF LOS ANGELES PORTS
HEARING ROOM THERE IN SAN PEDRO
FOR 25 SOUTH STREET IN SAN PEDRO
. WE ALSO WILL HAVE ANOTHER
HEARING. THIS WILL BE HOSTED BY
THE PORTS OF OAKLAND AND THAT
WILL TAKE PLACE ON NOVEMBER. THE
2ND 2023 FROM 10 AM UNTIL 2 P.M.
IN ADDITION TO ALL OF THOSE WILL
BE HAVING, UM, TOURS, UM, FOR
ALL 12 PORTS IN THE STATE OF
CALIFORNIA WITH MY SELECT
COLLEAGUES, AND WE WILL BE
PROVIDING INFORMATION AND WE
INVITE PEOPLE TO BE PART OF THAT
, UM, THAT SELECT COMMITTEE
HEARING TOUR. UM HERE IN THE
STATE OF CALIFORNIA, TOURING ALL
12 PORTS. THERE'S ONE PORTER'S A
PRIVATE, PORTLY WANT TO. WE WANT
TO ALSO, UM, VIEW THAT PORTS AS
WELL. A LOT HAS COME OUT OF THIS
HEARING AND AGAIN. I WANT TO
THANK MY TEAM AND THE SELECT
COMMITTEE MEMBERS, TEAM MEMBERS
FOR BEING WITH US. WE'RE TAKING
COPIOUS NOTES WILL ASK, UM, TO
YOU TO PROVIDE THOSE NOTES. UM,
AND THOSE HIGHLIGHTS SO THAT WE
CAN ADD TO OUR WHITE PAPER AT
THE CONCLUSION OF ALL OF OUR
HEARINGS WITH NOTHING ELSE.
ANYTHING ELSE? THIS SELECT
COMMITTEE STANDS ADJOURNED.
THANK YOU VERY MUCH.