Schwarzenegger vetoes port bill that Palin opposed

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.

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