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HomeMy WebLinkAbout03-Presentation t INLAND EMP~IRE ... t- ransp . ti1'< a Ion " COALITION , ,. Less traffic. More jobs. Cleaner air. Officers Bob Wolf, President President. Germania Corporation Larry Sharp, V ice President President and CEO. Arrowhead Credit Union Martin Matich, Treasurer Chairman, Matich Corporation Peter Barmack, Secretary Partner. Best Best and Kriegel' LLP Members Bill Johnson Owner, Johnson Machinery Dennis Troesh President and CEO, Robertson's Ready Mix Randall Lewis Vice President, Lewis Operating Companies Steve Ponte II Founder, De 01'0 Group Tom Mullen Former Supervisor, County of Riverside John lIusing President, Economics and Politics Inc. Phillip Eckert Business Manager, Riverside and San Bel'llardino Counties Building and Comtruction Trades Council, AFL-C/O Ex-Officio Members Paul Hiller President and CEO, Inland Empire Economic Partnership Eric Haley Executive Director, RCTC Norm King Executive Director, SANBAG (retired) -#3 ::J.!;)I/Ob t raAns if" En1", ation " COALITION , L Less traffic. More jobs. Cleaner air. Fact Sheet BACKGROUND: The Inland Empire Transportation Coalition (IETC) is dedicated to helping solve transportation and mobility issues by promoting private sector investment in transportation infrastructure, securing equitable federal funding for Southern California and working cooperatively with regional agencies and elected officials. MEMBERSHIP: fETC is a non-profit group made up of noted transportation, business and economic leaders. CHALLENGES: ~ The volume of goods moving through Southern California ports, already the third busiest in the world, is expected to triple in the next 25 years. ~ 70 percent of trade coming through the ports leaves the region on trucks or trains. ~ 1-10 and 1-15 - major trucking routes - bisect the Inland Empire. Increased traffic is turning the freeways into chokepoints that stymie the flow of trade. ~ Southern California must spend $26 billion to improve rail yards, railroads and highways to keep up with foreign trade. Not doing so could cost the region $1 billion in annual tax revenue and 500,000 jobs, according to the LA County Economic Development Corp. GOAL: Work cooperatively with federal and state elected officials, regional agencies and other groups to ensure that Southern California has the infrastructure needed to relieve congestion and enhance the regional economy. SOLUTIONS: ~ Greater private sector involvement in funding transportation improvements / less reliance on state funding. ~ Clear communication with policy makers about the transportation infrastructure priorities of the Inland Empire and Southern California. ~ Amend State transportation project planning and design guidelines: Implement design-build and design-sequencing on roads projects to save time and money by fast-tracking construction. ~ Equitable distribution of federal transportation funding for Southern California to address impacts of port activity on infrastructure. REQUEST: Support upcoming legislative proposals that will allow private sector investment in transportation infrastructure. tranDspo~E~~~ation " COALITION , , Less traffic. More jobs. Cleaner air. Transportation Solutions Plan While the Inland Empire Transportation Coalition continues to work with our regional and national partners to explore innovative transportation funding solutions, the following is our organization's four-point plan to reduce traffic congestion, clean the air, and create up to a million new jobs in the logistics and goods movement industry in Southern California. 1, Private Sector Investment: Encourage private sector investment in new transportation infrastructure by allowing companies to receive tax credits and / or issue tax-exempt bonds in exchange for financing the construction of new transportation projects. 2. Federal Customs Revenue Utilization: Work with federal legislators to designate incremental growth in U.S. customs revenues for regional transportation improvements. 3. Voluntarv Container Fee: Work with federal and state legislators to enable shipping and transportation companies that use the nation's seaports to pay voluntary container fees to help fund regional infrastructure improvements. 4. Universal Project List: Create a vetted transportation project list that is universally supported by regional stakeholders, allowing for maximum relevance and support among federal and state decision-makers. For more information visit www.ietranscoalition.orq. :::J ~ I 51 ~ ~ r :=J ! Ii Ii ; J . I" : II II:! ! I: _"II J. '" 0- w '-' cZ W We ~ O-~ c e", '" !::!u a.. c=> >- w'" W co- '" ~"'.II W ~ ,. >- t;; ; oC ffi :z: ~ ~ ~ ~ I I :I ~ ..~. ~"I CI)~ ........a: '"c ~... It.... w c en a:: w ::: a:: trirnDspoE~,.. alion \\ COALITION i' Lt!!>s rr<Jffic. Mon:,job.<;. CI/:'1Jnf:'r<Jir. Priority Projects P N P o Good M IB fit Inland Empire Regional Prlontles Construct rail-to-rail grade separation lor the at grade crossing which is the cause of the msol ColtOll Crossing Grade serious bottleneck between the LNLB ports Increases track. capacity and elirninates an existing rail Separation and the resl ot the U_S. $150 Baca& Lewis bottleneck, increases safety and security, irl1'roves air quality Baca, Dreier, Relieves congestion and ifTllroves safety. This interchange in 1-1511.215 Interchange Reconstructiono! 1.151215 Interchange $100 & Lewis Devore is a major gateway 10 the High Desert Baca& Eliminates bottlenecks, improves salely, this section 011-15 has 1-15- Rt. 6010 1-10 Widen Freeway $100 Calvert fewer lanes thant he sections irrmediately north and south of it. 6.5 rrile project eKlending frornOrange Show Eliminates bo"lenecks, improves safety, represents the major 1-215~-County Road in San Bernardino to the 601911215 Baca, Calvert connecting route between San Bernardino and Riverside Improvement Project Interchange in Riverside $500 & Lewis Counties, the accident rate is 2.5 times the avg. rate Elminates bo"lenecks and is the major freeway link near March 1-215 EucalytpustoEast Bono & Air Reserve Base; Improves safety (the accident rate is 34% Junction Widening from Eucalyptus to East Junction $75 Calvert above the avg. rate) Eliminates bottlenecks and is the most irTl'ortant trucking link Reconstruct Interchange and convert SR 60 to between the Coachella Calley and the Inland ErTl'ire: Improves 1-101SR79 Interchange freeway $250 Lewis safety (the accident rate is 46% above the avg. rate) SR-60 Truck Climbing Elrrinates bo"lenecks, improves salley (the accident rate is 46 Lane through the Badlands Bono & above the avg. rate) and is an important trucking link between to 1.10 Construct truck climbing lane $26 Calvert Western Riverside County and the Coachella Valley RlversldeCountyPnonlles Elirrinates bottlenecks and improves highway connection between the Banning Pass, Coachella Valley and San 1.101SR79 Interchange Reconstruct Interchange $132 Lewis Jacinto/Hemet area: Improves safety 1-21SNanBuren Calvert&. Needed interchange to serve base re-use efforts and business Interchange Reconstruct Interchange $65 8000 development at March Alameda Corridor East Priority grade crossing identified !or Eliminates: 5 hrs of gate downtime/day, 192 vehicle hrs of daily (ACE): Magnolia improvement as a component 01 $2.4 B driver delay, 6-auto-.-train accidents & whistle noise for 26,447 AvetBNSF Alameda Corridor East $16 Calvert residents Priority grade crossing identified for Eliminafes: 8 hrs of gate downtime/day, 155 vehicle hrs of daily Alameda Corridor East improvement as a component 01 $2.4 B driver delay, 1-auto-.-train accident & whistle noise for 27,826 (ACE): Chicago AveIBNS Alameda Corridor East $26 Calvert residents Alameda Corridor East Priority grade crossing identified for Eliminates. 8 hrs of gate downtimefday, 152 vehicle hrs of daily (ACE): Columbia improvement as a component of $2.4 B driver delay, 1.auto.train accident & whistle noise lor 14,019 AvefBNSF & UP Alameda Corridor East $18 Calvert residents Alameda Corridor East Priority grade crossing identified for Elimnates: 5 hrs of gate downtime/day, 517 vehicle hrs of daily (ACE): McKinley St./BNSF improvement as a component of $2.4 B driver delay, 3-auto-train accidents & whistle noise for 23,053 'UP Alameda Corridor East $17 Calvert residents Alameda Corridor East Priority grade crossing identified for Eliminates: 8 hrs of gale downtime/day, 267 vehicle hrs of daily (ACE): Iowa Ave.lBNSF & improvement as a cOrTl'Onent of $2.4 B driver delay, 1-auto-train accident &. whistle noise for 9,849 UP Alameda Corridor East $19 Calvert residents Priority grade crossing identified for Eliminates: 5 hrs 01 gate downtime/day, 213 vehicle hrs of daily Alameda Corridor East improvement as a cOrTl'Onent of 52.4 B driver delay, 6-auto-train accidents &. whistle noise for 27,036 (ACE): Adams Sl./BNSF Nameda Corridor East $15 Calvert residents tranDspoE~~O~~_~!! LeH rr.,(fie. More jobs Clt'iJner Ilir Priority Projects San Bernardino County Pnonlies 1.101Tippecanoe Key SBlA access 10f base development, 575 daily veh, Hrs_or Interchange Reconstruct Tippecanoe Avenue Interchange $40 Lewis delay reduced by 2020, irTllrovedsatety High truck volume interchange, 1,333 daily veh. hrs. of delay 1-101Cherrylnlerchange Reconstruct Cherry Interchange $35 Baea reduced by 2020, improved safely. 1-10/Citrus Ie & Cypress Reconstruct Citrus Interchange & construct High truck volume interchange, 670 daily veh. Hrs.o1delay DC Cypress Overcrossing $38 Baca reduced by 2020, improved salety l.l0fRiversideRailroad Reconslruct Riverside Avenue grade Congestion relief, doubles arterial capacity to relieve Bridge separatiOll soulh 01 1.10 $40 Baca bottleneck High volume interchange, 401 daily veh hrs. of delay reduced 1-10 Cedar Interchange Reconstruct Cedar interchange $27 Baca by 2020, improved safety Alameda Corrior East Priority grade crossing identified for {ACE):Monle improvements w;thin county as COfll)Onent of Eliminates 164 daily vehicle hours 01 delay by 2030, reduces Vista/Alhambra & LA lines $2.4 billion Alameda Corrior East $1. Dreier noise and pollution, improves safety Alameda Corrior East Priority grade crossing identified tor (ACE): MilikenlAlhambra improvements w;thin county as co~nent of Eliminates 239 daily vehicle hours 01 delay by 2030, reduces Line $2.4 billion Alameda Corrior East $3. Saoa noise andpoilution, improves safety Alameda Corrior East Priority grade crossing identified for Eliminates 100 daily vehicle hours of delay by 2030 mainline + (ACE): Hunts LanelYuma improvements w;thin county as COrll>Onent of delay from siding traffic, reduces noise and pollution, improves Line $2.4 billion Alameda Corrior East $14 Lewis safety Alameda Corrior East Priority grade crossing identified for (ACE): State StreeVCaion improvements wthin county as cOfll)Onent of Eliminates 625 daily vehicle hours of delay by 2030, reduces Line $2.4 billion Alameda Corrior East $17 Saoa noise and pollution, improves safety Alameda Corrior East Priority grade crossing identified tor (ACE): Valley Blvd.lSan improvements within county as corrponent of Eliminates 155 daily vehicle hours of delay by 2030, reduces Bdno. Line $2.4 billion Alameda Corrior East $19 Saoa noise and pollution, improves safety Priorily grade crossing identified for Alameda Corrior East improvements within county as corrponent 01 Eliminates 715 daily vehicle hours of delay by 2030, reduces (ACE): lenwood Avenue $2.4 billion Alameda Corrior East $15 McKeon noise and pollution, improves safety Alameda Corrior East Priority grade crossing identified for ACE: Glen Helen/Cajon improvements wthin county as component of Eliminates 314 daily vehicle hours of delay by 2030, reduces Southern California Regional Pnonlles San Bernardino County portion of east-west Baca, Dreier Dedicated Truck lanes connection between 1.710& 1-15. $1,500 & Miller Relieves congestion and improves safety Baca, Calvert, 1-15 from Riverside County to Mojave River in Dreier, Lews Dedicated Truck lanes San Bernardino County $3,500 & McKeon Relieves congestion and improves safety Route 58 Freight Corridor Widen from 2 to 4 lanes, Kern County to 395 widening and safety and at Hinkley. $182 McKeon Relieves congestion, improves safety on major truck corridor 6-lane expressway on new alignment from 1-15 U.S, 395 realignment and to north of Adelanto, on or near existing McKeon, Relieves congestion, improves safety on major truck corridor. widening to expressway alignment to Kramer $1,000 Lewis Private/user financing potential New corridor 'rom LA County to 395, 1-15, and McKeon, ImprOVed access, cOIlgestion relief, safety. Private/user E-220 High Desert Corridor Apple Valley $1.514 Lewis tinancingpotential SOUTH(R:>,i(AU'ORNIA ~ Goods Movement in Southern California: Challenge, Opportunity, Solution ASSOCIATION of GOYERNMENTS Summarized by John Husing, Ph.D. Southern California faces an extraordinary economic opportunity and a frustrating policy dilernma. The rise of Asian trade through Los Angeles and Long Beach harbors to the nation has given the area its first true competitive advantage for creating good-paying blue collar jobs since the rise of aerospace after World War II. A I,OOO,OOO-job economic strategy aimed at providing entry into the middle class for some of the 44% oflocal adults with no college experience is now possible. But with San Pedro Bay ports handling 43% of the containers entering the U.S., the region's communities tind themselves drowning in a sea of trucks and trains and choking on their exhaust. Can we identity and implement the infrastructure projects, environmental policies and funding mechanisms to harness this opportunity or must California lose a chance to raise the prosperity of thousands of its families and improve public health? That is the dilemma facing today's generation of analysts, activists and leaders. Exhibit 1.-Port Container Traffic Ports of Los Angeles & Long Beach, 1990-2030 (millions of TEUs) 2004 43% U.s. Imported Containers 23% U.S. Exported Containers -Port Import!Export Reporting Senices- pI' ",' ",'\0 ","> ,,~ "," "," "'~ ",'" "," "," ",' ",'\0 ","> ,,<>' ," r6' "," ,OJ ,OJ ,OJ ,OJ , ,OJ ,OJ ,OJ ,OJ ,OJ <t' <t' <t' '\0" '); '\0" '\0" <t' TEU'=20 foot equivalent container units Source: Ports of Los Angeles & Long Beach, SCAG The Opportunity. Southern California's new competitive advantage starts with the fact that countless manufacturers now find that Asia's labor costs are a fraction of those in the U.S. Price competition among retailers like Wal-Mart, Costco and Home Depot has forced them to increasingly rely on Asian producers to stock their shelves. In Southern California, this has caused soaring container volume at Los Angeles and Long Beach harbors. In 2000, 9.5 million total TEV's (20-fi)()t equivalent container units) were processed (imports, exports, empties). In 2004, it was 13.1 million, up 37.9% (Exhibit I). By 2030, the ports forecast that volurne could reach 44.7 million, triple today's figure. Meanwhile, the 2004 total volume figure included 6.8 million TEU's of the 15.8 million imported containers entering the U.S., a 43.0% share. It also included \.8 million exported containers or 22.9% of the nation's total. On the import side, several relatively obvious factors have created competitive advantages for retailers to move goods through Southern California (Imperial, Kern. Los Angeles, Orange. Riverside, San Bernardino, San Diego. Ventura counties): . Its ports are on the West Coast nearer to Asia. . Its January 2005 population of2\.9 million constitutes a huge internal market. . Its huge port operations handle triple the volume of Oakland-SF, Seattle-Tacoma, Portland & Vancouver combined (5.1 million rEU's). A Mexican port is still theoretical. 1 . As giant post-Panamax ships (8,200-TEU ships & up) come on-line, Oakland cannot accommodate them as San Francisco Bay is too shallow. . The landside rail and freeway connections to U.S. markets from Seattle-Tacoma and Vancouver are limited cornpared to Southern California as is their internlOdal capability and access to goods trans loading, consolidation and storage facilities. . Ocean carriers like to drop cargo going to Southern California's huge internal market and off-load containers headed throughout the U.S. before they visit other West Coast ports. Less obvious is why large high value retailers with multiple U.S. markets prefer to ship to Southern California's ports and use local warehouses to consolidate and transload goods on to relatively expensive trucks or trains for nationwide delivery. Their option: Use inexpensive ships to take their goods to multiple U.S. ports nearer those hubs. While the alternative would save on transportation costs, the Leachman Port & Modal Elasticitv Studv commissioned by SCAG' showed that retailers save 18% to 20% by operating from the Southland for 3 reasons: . . For national retailers, the wider the gap between when sales forecasts are made at their hubs and the arrival of goods, the larger the inventories they must order to cover forecasting errors. If they ship directly to each hub via multiple ports, inventory decisions must be made while the goods are in Asia, 4-7 weeks before delivery. If they ship to Southern California and manage their inventories from here, those decisions are made 1-2 weeks before delivery, cutting the risk of error and reducing the size and cost of inventories. . If a national retailer sends goods directly to multiple hubs from Asia and a container misses a ship, one destination hub will get no goods while the retailer's other hubs will be fully stocked. By shipping to Southern California and using local consolidation facilities, the firm can elect to reduce each hub's supplies by the amount of any missing cargo. This spreads the risk and reduces the "safety" inventory that it rnust buy. . High value retailers are the most likely to ship to Southern California and create jobs by managing their inventories via local trans loading, warehousing and consolidation because inventory eosts are magnified for expensive goods. It thus costs more for these retailers to buy extra inventory to both guard against sales forecasting errors if they ship directly from Asia and guard against supply chain disruptions. Speed and reliability are crucial to Southern California's competitive edge. This was nearly lost in 2004 when 93 ships were tied up in San Pedro Bay because the ports could not unload them or efficiently move freight out their gates. It happened in 1996, when Union Pacific's purchase of Southern Pacific slowed freight movements, and again in 2005 when heavy rains and landslides disrupted rail traffic. Freeway congestion is an issue, slowing interstate trucks that go from the ports through Cajon (/-15) and San Gorgonio (/-10) passes. Meanwhile, growing neighborhood opposition to port, rail and freeway expansion due to diesel fumes, noise and lack of grade separations threatens to prevent needed infrastructure expansion to combat these delays. As a result, some retailers have built facilities elsewhere to guard against this region's emerging difficulties. The Potential Benefits. If Southern California can maintain its competitive advantage for handling the growing volume of goods movement and solve the issues of congestion, diesel emissions and community impacts, significant benefits will flow to its labor force as well as the firms invofved in goods movement and the people living near transportation facilities. I Port & Modal Elasticity Studv, Dr. Rob Leachman, Leachman & Associates LLC, September 2005. 2 Labor Force Benefits. The SCAG funded Husing labor force stud/ showed that in 2003 some 44.6% of Southern California's adults had stopped their formal educations with a high school diploma or less (Exhibit 2). It was half or nearly half the population of Kern, San Bernardino, Riverside and Los Angeles counties.3 It was over one-third of the population in San Diego, Orange and Ventura counties. Historically, manufacturing allowed this population to achieve upward economic mobility via high entry-levcl pay and on-thc-job learning. However, the sector lost 324,800 jobs in California frorn 2000-2004 (17.5%) rnostly due to rising Asian competition. Exhibit 2.-Share of Adults With High School or Less Education Population 25 & Over, 2003 45% K'rn San Bernardino Riverside Los Angeles So. Calir. San Diego Source: American Community SurvCl)' by U.S. Census. 2005 Orange Ventura Today, the logistics industry offers the possibility of replacing manufacturing as a source of rising incomes for workers with these educational levels. These sectors are involved in receiving, processing, storing and moving goods. In 2003, this included 38,706 firms with 548,278 workers (Exhibit 3). Importantly, the median and average pay levels in logistics are a little over $2,000 above manufacturing and $4,000 above construction, the other major blue collar sectors. Exhibit 3.-Wage & Salary Employment, Logistics Group By Sector, SCAG Region, 2003 Wholesale trade (naics 42) 352,373 Truck transportation (naics 484) 54,504 52,662 Support activities for transportation (naics 488) Non-Local Couriers (oaics 492110) General warehousing & storage (naics 493) Air transportation (oaics 481) Rail Transportation (naics 482) 2,952 Water transportation (naics 483) 1,789 Logistics Group ,278 Source: Quarterly Census of Employment Wages, CA Employment Development Department. 2004 Research by SCAG's staff found that by building the infrastructure to accommodate the growth of trade and cleaning up its worst environmental side-effects, 1,381,000 Southern California jobs can be created. Of these, 325,000 would be in logistics as the sector follows its normal growth path, plus another 95,000 due to the transportation system's added efficiency. Building and maintaining the new infrastructure would add 277,000 construction jobs, while phase I of the 2 Logistics and Distribution: An Answer to Uoward Social MobiIitv, Dr. John Husing, Economics & Politics. Inc. June 2004 hlto:/ /www.scag.ca. gov/ goodsmove/od f/H usingLogisticsReoort. od f 3 Note: Imperial County data unavailable for 2003. The figure was 62.9% in 2000. 3 Maglev system from LAX to Ontario International Airport would add another 91,000. Expanded transportation efficiency would cause the general economy to expand, adding 83,000 jobs. The multiplier impacts of all this investment spending would provide the other 5 I 0,000 (Exhibit 4). - Exhibit 4.-Logistics Investment, Job Creation, 2005-2030 Activity Job Creation Logistics Natural Growth 325,000 Logistics: Additional Gro\\1h Due To System Efficiency 95,000 Rail Capacity, Grade Separation. Truckway 277,000 Rest of Economy Growth: System Efficiency 83,000 Maglev LAX-ONT 91,000 Multiplier Impacts 510,000 TOTAL 1,381,000 Transportation Sector Benefits. The infrastructure to allow the expansion of Southern California's logistics sector will not be built unless the region's goods movement companies find it will increase the speed and reliability of their operations in substantial and measurable ways. That is the message that emerged from extensive roundtable discussions between the shippers and the agencies concerned with improving the system.4 To calculate this, SCAG's staff created metrics to measure potential improvements via a Speed & Reliabilitv Studv. It assumed a conservative $73 per hour cost for moving cargo by freeway and modeled anticipated delays from congestion and accidents at various times of the day. The study found that if dedicated truck ways and expanded railroad infrastructure were built, and tolls and fees later charged to use them, shipping would cost less than without such a system. These results are being presented to industry for peer review. One example, in moving containers to Ontario from the ports: . Shippers would have a time-cost savings of $76 per load without allowing for unexpected congestion delays. . Shippers would have a time-cost savmgs of $233 per load if they do allow for unexpected congestion delays. Environmental Benefits. In California, it is axiomatic that major infrastructure projects will not be built unless the environmental community is satisfied that they will, at worst, do no harm, and at best, decrease health risks. For the logistics infrastructure needed to energize Southern California's blue collar job growth, the key will be the strategy's ability to seriously reduce NOx (nitrogen oxides) and fine particulate matter from diesel fumes at the ports and intermodal yards as well as along freeways and rail lines. Also, rail grade separations will be necessary so trains do not divide cities, slow emergency vehicles, tie up traffic and increase noise pollution. One strategy is to speed up investment in Tier III lower diesef-ernitting railroad engines and similar engines for trucks, to reduce port and intermodal rail yard ernissions. Also, the oldest and dirtiest trucks could be bought and retired, and newer trucks retrofitted. In harbor areas, several strategies could reduce emissions from ships burning low-grade bunker fuel. "Cold ironing" could be applied at the docks so ships are powered off the electrical grid not their diesel engines. Ships entering port areas could be required to move at slower speeds to bum less fuel. The U.S. Senate could ratify the MARPOL Annex VI (marine pollution treaty) and support formation of a North American Sulfur Emission Control Area requiring ships entering the ports to use lower- sulfur fuel. 4 Roundtable meetings were convened by SCAG in February. May, and August 2005. 4 To reduce freeway congestion and emissions, PierPASS has instituted its OffPeak program with an $80 container fee waived for trucks moving in evening and weekend hours. Some 30% are doing so, reducing the big rig impact on peak-time congestion and idling. To help this effort, an Inland Empire truck port is under diseussion. At it, loads would be left at night and distributed the next day. Also being implemented is computerized matching of in and outbound container loads to stop empties from returning to the ports after an import delivery, only to return as empties to the same area for an export load. And, the Alameda Corridor Transportation Authority is studying the economics of using short haul rail for sorne of the 1.24 million containers going to the Inland Empire each year.5 Local trucks will haul them to warehouses from an inland rail port. Meanwhile, given rail's key roles to any emissions solution, the Alameda Corridor East projects are essential to eliminate the many at-grade rail crossings from the Alameda Corridor's terminus to the descrts. The Solution. Fortunately, a path to solving the issues described here is becoming evident. Projects. It begins by dctailing thc projects needed if the transportation system is to have the efficiency and reliability that shippers need to continue expanding and crcating local jobs. SCAG region stakeholders have helped develop an unprioritized $26.2 billion goods movernent project list.6 To develop further detail and priorities, the Multi-Countv Goods Movement Action Plan is underway. It is being funded by county transportation commissions, Caltrans and SCAG. Environmental. fn addition, it is essential that the region set aside funds and develop the environmental strategy to accornpany them. Cost estimates to mitigate the impacts of freight- related diesel usage on public health and the environment vary widely. No rnatter what, the region must come into attainment of health-based air quality standards and address other environmental impacts of goods movement. Investments in environmental mitigation strategies can and should be financed side by side with infrastructure investments. Elasticity Study. As stated, the Leachman Port & Modal Elasticitv Study showed that national retailers save 18%-20% on their inventory costs by shipping their high-value products to Southern California and using local warehouses to manage, consolidate and transload cargo before rail or truck delivery to various U.S. hubs. This process cuts weeks off the lag between hub level sales predictions and the arrival of the goods, lowering the inventories nceded to cover forecasting errors. Centralized warehousing also reduces the inventory needed to cover the risk that some cargo deliveries will be interrupted along the supply chain. Using data on the economics of shipping decisions provided by national retailers, the Elasticitv Studv also looked at the impact on container volumes at Southern California's ports if an expanded goods movement nctwork was built and, afterwards, shippers amortized their investments through a schedulc of fees and tolls to use the system and retire its construction debt. The conclusion was that under such an arrangement, the system's added speed and reliability would lure 12.5% more high-value cargo that creates jobs as it is handled by Southern California's logistics operations. It would also chase away low-value cargo that just passes through the region without creating jobs, freeing rail and frecway capacity for high-value shippers. Return On Private Sector Investment. Combining the results of the Speed & Reliabilitv Studv to thosc of the Elasticitv Study yields scrious lessons for strategies to finance Southern California's logistics system. Earlier, it was indicated that the Speed & Reliabilitv Studv found significant cost savings to shippers of having access to a dedicated truckway. If a small portion , Alameda Corridor Transportation Authority, Consolidation Activitv ill SOl/them Califomia Area, BST Associates 6 Southern California Regional Strategv for Goods Movement: A Plan for Action, February 2005, Table 2, SCAG, hUo:llwww.scog.ca. gov/goodsmovc/od f/Goodsmovc Pooer0305 .od f 5 of those savings were paid as a toll to help retire the $16.5 billion debt from building the truckway, shippers would pro tit frorn the system. For example, towing a container via truckway from the ports to Ontario: . Shippers would have a $76 time-cost saving with no allowance for unexpected delays. Using a truckway toll of 86~ per mile, the trip cost would be $32. The truck tollway would cause bottom-line profits to increase by $44 per trip. . Shippers would save $233 in time-cost saving when allowances for unexpected delays are included. At a truck way toll of 86~ per mile, the trip cost would be $32. The truck tollway would cause bottom-line profits to increase $201 per trip. The study found that the time-cost savings from expanding the region's rail system to be even more dramatic. Again, this research is being presented to the shipping industry for peer review. Financial Feasibility. Southern California faces difficult infrastructure financing questions. Can it pay for the $26.2 billion in highway and rail improvements that will generate over I million logistics related jobs? Can it also finance the billions needed for environmental projects? After the system is finished, can it institute a fee schedule to repay the construction financing and stay within the limit where the Elasticitv Study finds the maximum trade bene tit? In each case, the answer is YES. The funding strategies in Exhibit 5 row 5 use an 86~ per mile truckway toll with a $160-$170 container fee. Together, they are generally below or about equal to the threshold from the Elasticitv Study and raise the needed $36.2 billion. Exhibit 5.-Potential Goods Movement System Financing Options ~----- --- Project Capital Cost Fee Structure Fee Ranges & Assumptions 1 No Proiect $0 None None Container Fees & $60 to $70 Contaioer Fee 2 Truckway Onlv $16.5 Billion Truch\lay Toll 86~ per Mile Truckway Toll (f.evel debt lii15%. 30-35 }'ears) $15 to $30 Container Fee 3 Rail Improvements On Iv $3.5 Billion Container Fees (Low Fee: lax credit instnmzent) (lIiflh Fee: 5%, ascendinf! debt: 20 Years) $120 to $130 Container Fee 4 Totalllighway & $26.2 Billion Container Fees & 86~ per Mile Truckway Toll Rail Improvements Onlv Truck\,,'ay Toll (Roads: level debt@5%. 30}'r, 35}'r. -IO}'r) (Rail: tax credit & ascendinr! debt for rail) Total Highway & $160 to $170 Container Fee Rail Improvements & Container Fees & 86t per Mile Trackway Toll 5 SlOB Environmental S36.2 Billion Truckway Toll (Highway/Environmental: Level debt@5%, 30Yr, 35Yr & 40Yr) Mitigation (Rail: tax credit instrument & ascending debt) The Next Steps. Southern California has cornpetitive advantages that will allow it to create over 1,000,000 in middle-class jobs related to the logistics sector if it undertakes the infrastructure and environmental projects necessary to allow those jobs to be created. The jobs are needed, given that 44.6% of the region's adults have no college experience. Shippers will find that their financial benefits from an expanded goods movement system's increased speed and reliability will more than offset their costs to use it. The tolls and user fees needed to re-pay the strategy's $36.2 billion price tag will generally be below or at the $100 per TEU (2005 prices) that could hurt the region's trade. What remains? To undertake the measures to move this strategy forward: . Creation of a Southern California Institution to Execute Infrastructure Construction. No existing institution, under its current authorities, can manage the building of the wide range of infrastructure and environmental projects needed to implement the logistics-based 6 economic strategy region-wide. Such an institution must be able to pnontlze projects, undertake bidding, establish budgets, raise and repay funds and manage construction in all counties. The creation of such a Southern California-based institution may require legislation. . Peer Review. The research conducted on this issue needs to undergo peer review by the retailers, shipping companies and others with a financial stake in the system. If their analysts find that the system will serve their corporate interests, they will become the crucial link in convincing government entities to move forward with funding and implementation strategies. If they do not support it, thc system will likcly nevcr bc built. . Federal and State Legislation For Infrastructure Financing Tools. In column 5 of Exhibit 5, there is a list of the credit instruments that could be used to lower the cost of funding the highway, rail and environmental measures needed for a logistics-based Southern California economic strategy. These include federal tax credit equity financing and state authorization of public/private infrastructure financing. To speed project processing and lowcr costs, state approval of dcsign-build construction project processing is needed. . Private Sector Leadership. Ultimately, the devclopmcnt of the wide-ranging political and economic agenda required to move the strategy forward will requirc the leadership of private sector individuals with a vision for Southern California's future. Their foresight and energy will be needed in encouraging federal, state, and local institutions and political leaders to make the decisions that can make a program of this irnportance a reality. . Environmental Cooperation. To begin improving public hcalth, the rnost cost-effective environmental improvement strategies need to be identified, prioritized, and funded promptly. Numerous local, state and federal environmental agencies have begun to realize the extraordinary challenges posed by the aceclcrating flow of international goods through Southern California and the lack of infrastructure, financing and environmental measures to handle it. They need to follow through on their expressed interest in cooperating on this issue. A memorandum of understanding that pledges cooperation and outlines how each can help bring an infrastructure and environrnental strategy to fruition would be a helpful first step. . Establishment of Federal Infrastructure Financing Related to International Trade. A crucial player in the long-term funding of the infrastructure and environmental projects needed for this Southern California economic strategy must be the federal government. Federal economic and trade policies are a major reason for the flood of goods now entering the U.S. Yet there is no federal financing structure tied to the landside issues of the port, rail and truck infrastructure needed to handle the movement of this trade. Whether it is port- related container fees, the dedication of a portion of tariffs to the goods movement infrastructure or sorne other mechanism, the federal government needs to begin playing a significant role in infrastructure financing. . Political Leadership. Southern California's state and federal delegations include several crucial committee chairpersons. They should be able to bring considerable influence to bear on acquiring financing, developing financial tools, and undertaking legislative initiatives that can move the stratcgy forward. Given the wide range of pressures on these officials, the region's private sector leaders and its agencies must ensure that its legislative delegations are aware of the issue, the emerging lines of strategies, and how they can use their influence to help craft solutions. Summary. The goods movement issue presents Southern California with its greatest economic opportunity in decades to create upward economic mobility for its workforce. This report has 7 outlined the challenges, explained the opportunities and underscored the potential benefits of a logistics-based economic and environmental strategy. It has also laid out a route to implementing such a strategy and ended by explaining the steps that now need to be taken to move ahead. In many respects, the future outlined by this research is ours to grasp or let slip away. Dr. John Husing is the Vice President of Economics and Politics, Inc. This essay is a condensed version of a longer paper prepared by Dr. Husing for SCAG that could be accessed at htto:llscaa. ca. aovlaoodsmovelodflGoodsmovePaoer0905. odf 8 :./~......... TlrB-'p'RE SS- ENTE RPRlS E) FRIDAY ,{ OCTOBER 21, 2005 Private bucks must move traills, trucks ANALYSIS: A former state transportation official; says government alone cannot pay for roads. UY MARK KAWAU THEPRESs-ENTERPRlSE The California Department of Transportation has predicted that the state's truck traffic will double In the next 20 years. The San. Bernardino Associated Governments predicts a dou- bling of Inland-area train traffic dUling.the same period. But local infrastructure will not be able to handle the growth without help from the private sector, a former state trans- portation official said. Robert Wolf, undersecretary of the California' Business, Transportation and Housing Agency under Gov. Pete Wil- son, told an audience at UC Riverside on Thursday that gov- ernment is .not up to the task of providing needed roads, rail and other transportation infra- structure by itself. "Somebody needs to bring new money to the table," said Wolf, now a developer based in Moreno Valley, "I submit to y.ou that it should be the private sector." He suggested that trucking companies and the businesses they supply lose so much money from California's traffic con- gestion that it is in their best interests to help fund construc- tion of roads, grade crossings and other transportation projects, such as trucl,-only roads. Companies could recoup their investments through tolls .on the new roads, from a por- tion of government-collected 'container fees or from the effi- ciencies that they realize ITom more-reliable goods movement, he said. He also recommended that the federal government provide' tax credits to private companies tliat invest in infrastructure. Marlon Boarnet, chair of the Department of Policy, Planning and Design at DC Irvine, cri- tiqued Wolfs ideas after he presented -them at the Randall Lewis Seminar Series. "Our transportation agencies would have to evolve," said Boarnet, "from construction agencies, to regulatory bodies" if the private sector were to tal,e the lead in building infrastruc- ture. But, he added, "we need to unlearn the notion that all transportation infrastructure should be financed through public funds." California has had a love-hate relationship with the type of public-private transportation projects Wolf suggested. Private investors built and operated toll lanes on the 91 freeway in 1995, but the state took the road in 2003 because it wanted more control over fu- ture improvements. In Southern California, there. are tolls for the 73, 133, 241 and 261 freeways - far fewer toll roads than in Northeastern states. That may be changing. In' July, Congress passed a bill designed to stimulate the con- struction of toll roads by ex- empting bonds issued by pri- vate .companies to pay for toll . roads from federal taxes. "The bottom line is, you can build (infrastructure) and they will come," said Wolf. "Or you cim not build it, and they'll come anyway. .. Reach Mark Kawar at (909) 806-3052 or mkawar@pe.com .., ( :'1 . . eIJ = .,.,..,. ~~ ~~ .~ ~ ~~ rJ:J. lJ'\ o o N . ~ . ~ ~ CJ ,~ = .,.,..,. ~ .... r- = o ~ VJ. CJ CJ ~ \0 p; ~ i:Q o . t-<. U o ~ <G o C/) p; ::> ::r: t-< .. >. ~ ~ TJJ. ,;~ ,,.] \.'. ~.8 bLJ..... 8.. <1).50 :; E f:i;g ~ ..8 ._ :;. (<:l CU tU ... c..u ~ .9~~e :a ~ ~Cl""" c... a (;j.= 0 QJ .J:: Cl-Z tl-5 e 0. 0 (;j ~ l-< e-c.;;-. 0 0.. ~ E'Q) . 0.. ..., (;j'''' E t).~ <<J cu ttl"':':: E 8~.sc::~o o'u aJ: E~ ......bjUl.50CV O ol:l::::::.... U o " ~ s::l:;oEuE - 1l.l.c......~::lG..l UJ ~ ~ .,>.....'0-6 ~ Ill. 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'-/ "J;.' , -'--- 1 1 v-. 0 0 N '0 p::: J:;::<. i=Cl 0 t-< u 0 , ;>-< <G Q (/) p::: ~ ::r: t-< :, "I':: J' r", Trucks continued from page A 1 60 percent of'imports from Asia, and most of those products pass through the Inland Empire on their way to stores and businesses through- out the country, said Ty Schuiling, director of planning"nd programming for San Bernardi- no Associated Governments, or Sanbag, the county's transportation agency: Schuiling made the presentntion to.the full Sanbag board of directors Wednesday. . As the area positions itself to be the na-j.:t;.r::' tion's major shipping hub and create well~ paying blue collar jobs, the region will bene- fit, .';". . as long as we can mitigate the im. pacts," Schuiling said.. Norm King, executive director of Sanb,ag, has long argued that goods movement is the biggest challenge fncing the region, and find- ing a way to help trucks .and trains. move more efficiently is critical. . "1 think this issue has the most positive or negative impact on our economy.' and our quality oflife," he said. . Some have been concerned that imposing a fee on the big boxes used to move goods by truck and train would send them to other ports. The study, done for the Southern California Association of Governments, a regional plan- ning agency, indicates that worsening conges- tion is just 'as likely to divert traffic away from the Los Angeles ports. . Over the next 25 years, train traffic through- the Inland Empire is expected to nearly dou- ble from fewer than 200 trains per day. to about 390, which will dramatically slow rail traffic, and lead to long waits for motorists at rail crossings where there are no underpasses or overpasses. . The number of cuntainers will more than triple, from the equivalent of 13.2 million 20-foot containers to 44.7 million by 2030. Mee of up to $200 per 40-foot container if used for improvements to help the traffic fiow, would .actually allow for an increase in the number of containers shipped, according to the study, Schuiling said. Shippers would .have to be convinced any such fee would provide a tangible benefit in efficiency and cost, Jeff Lustaarten a k 0 , spa esman for Southern California Associat- ed Government, said. by telephone after the meeting. Solutions such as expanded rai1lines, and separate truck lanes.on majorroules including , HIghway 60 and Interstate 15 to Barstow..", would cost hillions of dollars. ~ i : Fontm;a ~ayor Mark Nuaimi asked duri~g' . ~e.meeting.if the federal government is I'r~ vl!ling help to local governments in dealing WIth tbe effects of increasing trade. Schuiling said federal officials have been made. aware of.the problem and seem interest- ed in helping. He expects formal agreements down the road between local, state and feder- al officials to cooperate on solutions. But (Vowth is quickly outpacing solutions, and a~tion needs to be taken quickly, Schuil- mg Send. "This needs to be done in a decade, not two or three decades as is typical/' he said. . Contact writer Andrew Silva at 19091 386-3879 or via e-mail atandrew.silva@sbsun.com. TttE""'P'RE sS- ENTE RPRI S E! SUNDAY OCTOBER 16,2005 Pull your own freight Southern California's ports hum with foreign trade, but I?ost ofthose imports trav~l.through . Wand reglOns to other places, strammg local freeways arid railroads in the process: . . \ . Moving freight smoothly business will go elsewhere.. furough Southern Californiare. But doing nothing about quires billions of dollars opocal. freight traffic tie.ups will transportation improvements, chase shipping away even and cargo interests should pay wifuout a fee on cargo.' fueir share of fuat cost. Consider: About 43 percent A study dated last month of the nation's cargo container and prepared for fue Soufuern trade flows through Los Ange- . California Association of Gov- les and Long Beach ports. But ernnients has found it practical 75 percent of that freight moves to bill cargo for its effects on on outside the region, usually area transportation networks. on Inland roads or rails. And The study, by a DC Berkeley the port activity is projected to \ professor; says a $200 fee per triple within 25 years. . 40'foot container' shipped, Southern California trans- through the ports of Los Ange- portation planners already pro- I les and Long Beach would ease pose $26 billion of projects to congestion without driving ease that flow of cargo. Because commerce to other ports. SCAG. most of those goods go els'e- estimates .such a fee could en- where, residents here should able as much as $36 billion in not be stuck with fuat bill. . Southern California transpor- Without a freightfee to ease tation and air quality projects. the shipping congestion, South- The tradeoff only works if ern California's import trade the m9ney actually cuts con- will slump, while area residents gestion; otherwise shipping wait endlessly in traffic. .~' , October 1. 7 ~ 2005 r The Business Press Who will pay to build bigger highways? VOL: 11 NO.5 CAROL PARK I Federal dollars are limited, too, CPARJ(@1HEBlZPRESS.COM according to speakers at a Sept. California highways need up to i 23 transportation. summIt. Feder. $30 billion over the neX120 years al dollars are bemg dIverted to to maintain and handle the in. disaster relief efforts and the war flux of cargo from the ports of in Iraq, so fun,ds are li,:,ited and Long Beach}and Los Angeles. probably w?n t be avaIlable for More than 30 million contain- transportation costs. ers will pass t1irough the ports of The logistics industry could Long Beach and Los Angeles by employ more than 1 million 2025, according to a report by workers in the region by 2020 regional economistJohn-Husing. because of the influx of cargo. Container imports flood local But that potential is endangered highways with trucks carrying i by the lack of adequate trans- cargo bound for distribution cen- : portalion infrastructure, accord- ters and rail yards. Those trucks ing to Husing's report dog freeways and tear up roads. - Federal and state taxes are sup- posed to maintain and construct new highways to acco=odate growth. "But those taxes are being used to only maintain the roads and not fur new construction, where years ago that was not the case," said Norm King. San Bernardino Associated Governments execu- tive director. The San Bernardino Associated Governments is the transporta- tion planning agency fur San Bernardino County. The Califurnia Department of Transportation will spend $79.3 million to fix and maintain high. ways in Riverside and San Bernar- dino counties by the end of June 2006. The department has an additional $91 million fur emer. gency repairs and projects in the Inland Empire. Statewide, $1.8 billion is avail. able in transportation funds. Cal- trans has the funding it needs to maintain highways in San Ber~ nardino and Riverside counties for the rest of fiscal 2005-2006. But the rising cost of construc- tion materials is hampering ef- forts to accurately identify future costs. A month ago Caltrans paid $60 ~ ton for asphalt:_ ~ month , Who will foot the bill? Local truckers believe federal and state government should cough up the money and use gas taxes to fuot the cost of maintain. ing and building new highways. "We are taxed on everything," said John Vlasic .n, Best Delivery Il.C president. 'We pay a tax on diesel fue!, a revenue tax, and licensing fees when we register a truck," Located in Rancho Cuca- monga, Best Delivery operates 12 tiudcs and has 41 employees. Vlasic pays up to $1,800 per truck in licensing fees and spends about $6,500 a week to fuel his trudcs. Taxes should be levied on freight importers and not on the truckers. Vlasic said. "Why tax the truckers?" For trude companies in Califor- nia, turning more than a 3% profit is difficult, so taxing truck- ers more would lead to higher prices for customers, Valerie Liese, Jade Jones Trucking Inc. president, said. Jack Jones Truck- ing is located in Chino and employs more than 100 workers. "The state is stealing trans- portation funds and putting it into the general fund," liese said. "They'll try and tax us more but taxing {truckers] is not the way. The state needs to look at toll roads and truck-only lanes and widen the roads," The Southern California Assc>- ciation of Governments, a met- ropolitan planning organization, believes that public and private cooperation is needed to fund. highway improvements and re- lieve traffic congestion fur goods movement. spokesman Jeff Lust. garten said. Pl.BASE SEE ROADS, PAGE 31 October 17. 2005 ...;-,.. The Business l'ress VOL. 11 NO. 5 CARINO CASAS ITHE BUSINESS PRESS volume of trucks on Interstate 10 in Fontana will only inCl'ease as -egion IS logistics industry grows. Roads CONTINUED FROM PAGE 18 Temporary programs such as Pier Pass, which allows for the movement of cargo at the ports during off-peak hours, will help relieve highway congestion and save the roads. But long-term public and private partnerships must be established to fund railroad grade separations. highway lane widening and improvements in order to accommodate growth. Lustgarten said. "Knowing the need is there, we are worldng to capture every buck we can to meet the Itransportation] need," Angstrom . said. "We are looking to work with anybody, local or private, that will help us improve the highway transportation system in the inland Empire: The Federal government provided a $400 million loan fur the Alameda Corridor project on the condition that the loan was paid back with user fees. The corridor consolidated 90 miles of branch line tracks into one 'We are looking to work with anybody that will help us improve hig1:r-way transportation. " Jeff Lustgarten Southern California Association of Governments . ZD-mile corridor and eliminated I traffic conflicts at nearly 200 at-grade highway crossings ofrail tracks in Los Angeles County. Although the Alameda Corridor has been successful, it still needs to be expanded east and funding fur that project needs to be raised. "That 1$400 million] loan lfur the Alameda Corridor] has been . paid back 28 years in advance," Lustgarten said. "We need to do similar private and public cooperation projects in the Inland Empire and the San Gabriel Valley. That's .the next step that will help solve the goods movement problem." - Friday, .Jan. 6"', 2006 The 8B 81m ~ '"'l 0...:. _. :r iii' N <: t>> l>>< 0>-00 :r. ~::l =. g. CP ':7 ::l ~ 00- '<~~ .... ;::;"'_0I.;:l =t';;: 0 ~ ct.9-:e: ::;-0.3 l-..J o <" ~ tll _",0 ?> ~ ... s' g 3~~-U1~'"tlQl::r-+o. ~ g- ~f g wQ ~. g. ~ ~ ug. go' ;;o.UI::3;:l on ~ ::I In g,. ~uo E.. a 2 (; g ] ~... ~ en ~ 5' ::IlJ.9. 0>::::: o cr() o 0::: So =. 5' ~"9::l ~ @ c; 0 g g UQ n. 0 ;; C) ~ v.. :;.- v. ::::.1,.;..,. no' ::l t:) 003 o.Q>< ooci o n ::l..,..... CT::l >ool, Dl .... n (JQ no D> !'C, ~~ 0 o.::!.:::: [11 (IQ (fQ --. 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'" -. ~ 3, ~g? -0> 0_. - :J c- O> ~ (Q in ~. it ." is "CIOS- " .. " ~ 'E..... OJ ;- 0 a Ott' . :ro. g'" 3 _. ..o.g .., ..0 0.< 0." 5' A- OQ S' ~.., ern o ~ ,,- -"" ""~ == e cr -. CII .... Dl .... III Q ... .... ::r III a: -. = .. III lQ O' ~ fA e n I>> ~ .... en I>> cr -. -. = rtQ rtQ IIIIIIf . I>> ~ ..' . :.(... ~'. . . Friday, Jail. 20"',2006 The SB Sml' I.E. . breathers worst off! Analysis: Area's pollution most dangerous in nation By Andrew Sliva Staff Writer The most dangerous form of air pollution is thicker in the In- land Empire than any place in the country, according to an . analysiS by an cnviromncntal group released Thursday. That carne at the same time officials from the governor's of- .fice were in Riverside to talk about the air pollution compo- nent of the ambitious $222 bil- lion plan to improve California's roads, ports, rail lines and schools. .The governor's plan includes $2 billion just for reducing air pollution from the continuing growth in traffic, especially truck and train traffic. There are no specifics yet on how that money will be spent, but it does reflect Gov. Arnold Schwarzenegger's commitment to reduce-smog even as the plan seeks to ease congestion, said Cindy Tuck, assistant secretary of the California Environmental Protection Agency. All the hub for all products moving east from the Pacific Rim through the ports of Los . Angeles and Long Beach, the In- land Empire is enduring explo- sive growth in the number of trains and tractor-trailers passing through, and in the toxic pollu- . !ants those vehicles pump out. " Trucks and trains are the big- gest . uSers of diese~ which creates' dangerous particulate pollution, tiny specks of dust See POLLUTION I Page 82 - Plagued by pollution . .. 1 . A look at the average annual fine particle pollution villues for large metropolttan areas in 2004. The annual federal Standard' is 15 micrograms per cu!:.ic meter of air.. \. Rank Metropolitan area Average annual fine particle value (mk:tograms per cubic meter of air) 1 Sen Bernardlno-OntBrio-Rlverslde, CA 22.09 -- 5 Cleveland-Elyrla-Mentor,OH . - 17.53 , I Source: Environment Call1ornla Research & Policy Center Staff graphIc. '.'" .. ;;: ,., ~Fl'iday, Jail. 20"',2006 The SB Sun .';.-." "..' Pollution continued from page B 1 and chemicals that have been linked to lung problems. asth- ma attacks, heart problems and thousands of premature deaths. The San Bernardino- Riverside county .area has the worst particulate pollution in the nation, the analysis of pol- lution monitors in all 50 states and Washington, D.C.,.found. . The more scientists. study the health effects of partic- ulates; the more. they see the tiny particles as the most dan- gerous component of smog. The report was released just ~ scientists and activists are pressuring. the Bush ad- ministration to toughen stan- danls for particulate pollution. The U.S. Environmental Protection Agericy recently' 'disregarded its' own scientific , experts and proposed tlghten-' ing rules for particulates, but not enough for many experts. "The Bush administration is shirking its responsibility and walking away from it . . . This is the mostimportant de~ . cision affecting.' public . health." said Moira Chapin, a field organizer with .Environ- ment California,. which pre- pared the report called "Plagued by Pollution: Unsafe . Levels of Soot Pollution' in 2004." Tougher regulations would save thousands of ' lives per year, many experts agree. A monitoring site in Rubi~ doux in Riverside County. re~ f. . ~' ~ The Bush administration is shirking its responsibility and walking away from it . . , This is the most important decision affecting public health.' MOIRA CHAPIN Reid organizer with En~ronrnent California corded the nation's highest annual average reading, with a site in San Bernardino close behind. Those average readings are roughly. '50 percent higher than the cuttent federal stan- dard. The Rubidoux and San Bernardino sites had readings of about 22 micrograms' per cubic meter 'of air, compared to the federal standard of IS. That's.for the smallest and most dang~rous particles., cal1~ ed PM2.5. or only 2.5 microns in diameter. roughly one- thirtieth the thickness of a hu~ man hair. A micron is one~. millionth of a .meter, or about one-thousandth the. thickness ofa dime. ... The highest one-day read- . ing in Southern California came at the San Bernardino site with 93.~ micrograms. Those particles can pene" trate deep into human lungs, bypassing the usual defenses of fine hairs and mucus. -Such particles can even get into the blood and travel to other or- 'gans, researchers have found. The Bush administrati~n has proposed leaving the an- nual average standard of IS ONUNE IEXTRA SBSUN.COM >' Read,the report on area soot pollUtion, . micrograms per cubic meter of air untouched, but has also proposed cutting the cmrent one-day. limit of ,65 micro- grams to.35. Cutting' the maximum al- lowed in any. 24-bour period sbould bring down the aver- age anyway, said John Millett, a spokesinan for the U.S. En- vironmental Protection Agen- cy in Washington, D.C. A letter sent last month to the . EP A director calls for, even tougher standards and was signed by 1.00 sCientists, doctors and health profession- als. . . Local smo.g regulators re- main frustrated that the big- gest sources :of pollution, namely trucks, trains and ships. are ui,der federal juris- diction. "We really need a bigger role from the feds in reducing emissions from federally con- trolled sources," Tuck said. Contact writer Andrew Sliva at (909) 386.3856 or via ..mall at andrew.sllva@sbsun.com.