Politics

SACRAMENTO (AP) ― Gov. Arnold Schwarzenegger on Tuesday vetoed legislation that would have imposed a pollution fee on cargo ships at California's ports, siding with Alaska Gov. Sarah Palin.

The fee would have paid for clean-air programs but was opposed by the Republican vice presidential nominee, who wrote to Schwarzenegger saying it would lead to higher costs on goods shipped to her state. She asked Schwarzenegger to reject the bill in a letter dated the day before she was named Sen. John McCain's running mate.

Schwarzenegger has endorsed McCain's presidential bid.

The bill by Democratic Sen. Alan Lowenthal would have imposed a fee of up to $60 for each 40-foot cargo container moving through the ports of Los Angeles, Long Beach and Oakland. The Southern California port complex is the nation's largest and handles more than 40 percent of the nation's goods; Oakland is the fourth busiest.

In a veto message issued late Tuesday night, the governor said he rejected the bill in part because it lacked accountability. He also said it failed to direct money to the Central Valley, which has some of the nation's dirtiest air and gets much of the truck traffic going to and from the ports.

"Given the current economic downturn, it is vitally important that the state does not worsen the situation by mandating added costs on business that do not provide any public benefit," Schwarzenegger said.

Schwarzenegger vetoed similar legislation two years ago over concerns a port fee would drive cargo ships to other states.

Lowenthal, of Long Beach, had modified his bill in hopes of winning Schwarzenegger's signature. Environmentalists had urged the governor to make good on his campaign promise to clean up the state's air.

It was among the last set of bills the governor acted on before a midnight constitutional deadline.

Supporters of the bill estimated the fee would bring in at least $300 million a year to fund programs that clean up the lingering smog at port communities. State air regulators say 3,700 premature deaths each year can be attributed to pollution at California's ports.

Alaska and Hawaii and a host of major retailers that import goods from Asia objected, arguing that the pollution charge would have raised consumer prices.

"Shipping costs have increased significantly with the rising price of fuel, and these higher costs are quickly passed onto Alaskans," Palin wrote in her Aug. 28 letter to Schwarzenegger. "This tax makes the situation worse."

Messages left during business hours with the governor's office in Alaska and the McCain campaign were not returned.

Hawaii Gov. Linda Lingle and the congressional delegations from Alaska and Hawaii also urged Schwarzenegger to oppose the fee because of the costs. Instead, they asked Schwarzenegger to modify the bill and exclude domestic commerce between U.S. ports.

Supporters say the fee could have been used to develop cleaner truck and train engines, build railroad overpasses to avoid traffic idling for long periods as trains pass and implement other programs that reduce diesel pollution.

"There's a lot of things that take money to be realized," said Martin Schlageter, campaign director at the Coalition for Clean Air.

Schwarzenegger said the bill would have allowed ports to spend money with little state oversight.

"This bill does not provide necessary assurances that projects will achieve the greatest cost-effectiveness, emission reductions, and public health protection," Schwarzenegger said.

He also pointed to bonds approved by voters in 2006 that set aside $1 billion to improve air quality, $2.1 billion for infrastructure improvements to trade routes and $100 million for port security.

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