THE PACIFIC GATEWAY SHIPBUILDING AND TRANSIT CORRIDOR Act @2026-10-06 18:32:22 - Calle 15 de Febrero

THE PACIFIC GATEWAY SHIPBUILDING AND TRANSIT CORRIDOR ACT Proposed Assembly Bill 2027–2028 Regular Session Proposed by: Assembly District 69 Program Sponsor / Proponent: Fiveo1 Primary Geographic Area: Long Beach, Avalon, Santa Catalina Island, Signal Hill and connected Southern California transportation and maritime facilities SECTION 1. SHORT TITLE This act shall be known and may be cited as the Pacific Gateway Shipbuilding and Transit Corridor Act. SECTION 2. LEGISLATIVE FINDINGS AND DECLARATIONS The Legislature finds and declares all of the following: (a) The United States has identified restoration of domestic shipbuilding, maritime transportation capacity, maritime workforce development, port infrastructure and national maritime capability as matters of economic and national security importance. (b) Federal policy has established a national objective of substantially expanding United States commercial maritime capacity. Federal legislation introduced as the SHIPS for America Act proposed a strategic commercial fleet of 250 additional U.S.-flagged ships over a 10-year period. (c) The President of the United States has separately directed federal action intended to strengthen American shipbuilding, maritime infrastructure, maritime workforce capacity and the domestic industrial base. (d) California contains major commercial ports, transportation infrastructure, manufacturing capacity, engineering resources, financial institutions, universities and labor markets capable of supporting expansion of the United States maritime industrial base. (e) The greater Long Beach–Los Angeles port complex is one of the principal maritime gateways of the United States and provides an existing foundation for expanded shipbuilding, ship repair, cargo movement, logistics, manufacturing and maritime transportation. (f) Assembly District 69 includes Avalon and Santa Catalina Island, Signal Hill, and portions of Long Beach and Carson. These locations provide a geographically connected policy area involving maritime transportation, port activity, logistics, tourism, transportation infrastructure and economic development. (g) The State of California has an interest in evaluating whether additional shipbuilding, fabrication, transportation and goods-movement infrastructure can be developed without impairing existing maritime, environmental, residential, commercial, military or conservation uses. (h) International cooperation with qualified allied and partner-country shipbuilding companies may provide access to established shipbuilding technology, production methods, workforce training, engineering capability and capital. (i) South Korean shipbuilding companies, including companies affiliated with Hanwha, have established U.S. shipbuilding operations and demonstrated experience in the construction of vessels serving the U.S. commercial maritime market. (j) The acquisition of Philly Shipyard by Hanwha Systems and Hanwha Ocean demonstrates an existing model in which a foreign strategic investor operates through a U.S. shipbuilding enterprise. The Legislature recognizes that any future California project must independently comply with all applicable federal ownership, national-security, export-control, maritime, procurement and foreign-investment requirements. (k) California also has an interest in developing resilient supply chains involving Central America, Colombia and other qualified international suppliers where such trade is lawful and economically advantageous. (l) Any proposed Venezuelan-origin material, mineral, petroleum-derived product or other commodity must remain subject to all applicable federal sanctions, export controls, import restrictions, customs requirements, national-security requirements and licenses. (m) Nothing in this act is intended to authorize a transaction prohibited by federal law. (n) The Legislature further finds that a long-term transportation system connecting maritime facilities, industrial areas, manufacturing facilities and existing transportation networks should be studied before construction is authorized. SECTION 3. PURPOSE The purposes of this act are to: 1. Establish a California Pacific Gateway Shipbuilding and Maritime Industrial Development Program. 2. Establish Long Beach and connected Southern California facilities as a potential U.S. West Coast center for commercial shipbuilding, ship repair, fabrication, maritime logistics and related manufacturing. 3. Evaluate the development of new or expanded shipbuilding facilities. 4. Encourage qualified U.S. companies and qualified allied or partner-country companies to establish manufacturing and shipbuilding operations in California. 5. Develop a California-controlled organizational structure capable of entering lawful public-private partnerships. 6. Develop a resilient international maritime supply chain. 7. Evaluate a high-capacity subterranean or otherwise grade-separated transportation system connecting maritime and industrial facilities. 8. Develop workforce-training programs for shipbuilding, steel fabrication, welding, engineering, electrical systems, maritime operations, logistics and transportation. 9. Attract private capital without making the State of California responsible for private commercial losses. 10. Coordinate California activities with applicable federal maritime and industrial policy. SECTION 4. DEFINITIONS For purposes of this act: (a) "Act" means the Pacific Gateway Shipbuilding and Transit Corridor Act. (b) "Authority" means the Pacific Gateway Development Authority established pursuant to this act or another legally authorized public entity designated by the Governor or Legislature to administer the program. (c) "Corridor" means the geographic and logistical network connecting ports, shipyards, fabrication facilities, warehouses, rail facilities, highways, airports, manufacturing facilities and related transportation infrastructure. (d) "Qualified foreign partner" means a company organized outside the United States that: 1. Is not subject to applicable U.S. sanctions prohibiting participation; 2. Is not owned or controlled by a prohibited person or prohibited government; 3. Can satisfy applicable U.S. national-security requirements; 4. Can satisfy applicable export-control requirements; 5. Can satisfy applicable foreign-investment requirements; 6. Can demonstrate substantial shipbuilding, manufacturing, engineering or maritime experience; and 7. Executes all required agreements concerning technology, intellectual property, security, ownership, labor and compliance. (e) "Qualified U.S. operating company" means a corporation, limited liability company, partnership or other lawful business entity organized under the laws of the United States and capable of conducting the proposed activities in compliance with applicable federal and California law. (f) "Shipbuilding facility" means a facility used for construction, assembly, conversion, repair, modernization, maintenance or fabrication of vessels. (g) "Maritime industrial facility" means a facility supporting shipbuilding, marine engineering, steel fabrication, component manufacturing, logistics, vessel repair or related industrial activity. (h) "Subterranean transit line" means a grade-separated transportation system constructed below ground, including a tunnel, rail system, automated transit system, high-speed passenger system or freight-capable transportation system, subject to applicable engineering, safety and environmental requirements. (i) "Pacific Gateway" means the network of California maritime, industrial, manufacturing and transportation facilities developed pursuant to this act. SECTION 5. PACIFIC GATEWAY DEVELOPMENT PROGRAM The state shall establish a Pacific Gateway Development Program for the purpose of evaluating and facilitating: 1. Shipbuilding. 2. Ship repair. 3. Vessel modernization. 4. Steel fabrication. 5. Marine component manufacturing. 6. Maritime engineering. 7. Port infrastructure. 8. Rail and goods movement. 9. Workforce development. 10. Maritime technology. 11. Logistics. 12. International supply-chain development. 13. Transportation infrastructure. 14. Research and development. The program shall prioritize projects capable of increasing California's contribution to the national maritime industrial base. SECTION 6. DEVELOPMENT AUTHORITY (a) The Legislature authorizes the establishment of a public development authority, joint powers authority, public benefit corporation or other legally appropriate public entity for implementation of the program. (b) The Authority shall not be an operating shipbuilding company. (c) The Authority's principal function shall be to coordinate public infrastructure, financing, permitting, property development, workforce programs and public-private partnerships. (d) The Authority may: 1. Conduct feasibility studies. 2. Acquire or lease property where legally authorized. 3. Enter into development agreements. 4. Enter into public-private partnerships. 5. Apply for federal grants. 6. Apply for state grants and loans. 7. Coordinate with ports and local governments. 8. Issue or facilitate authorized revenue-backed financing. 9. Contract for engineering and feasibility studies. 10. Establish competitive procurement procedures. 11. Negotiate development agreements with qualified companies. 12. Establish performance requirements. 13. Require financial guarantees where appropriate. 14. Require reporting by participating private entities. SECTION 7. PRIVATE OPERATING STRUCTURE The Legislature recognizes the following potential organizational model: Fiveo1 ↓ U.S. Operating Company ↓ California Pacific Gateway Shipbuilding Joint Venture ↓ Separate operating subsidiaries for: Shipyard operations Steel fabrication Marine fabrication Vessel repair Component manufacturing Logistics Transportation Transit infrastructure The above structure is a conceptual commercial structure and does not constitute a statutory ownership requirement. A public entity shall not transfer governmental authority to a private company. Any private company participating in the program shall remain subject to all applicable procurement, labor, environmental, tax, securities, corporate, maritime and regulatory requirements. SECTION 8. UNITED STATES OWNERSHIP AND CONTROL Any project receiving state financial assistance or public property under this act shall establish ownership and control requirements appropriate to the project. For projects involving national-security-sensitive facilities, the project shall comply with applicable federal requirements concerning national security, foreign ownership, foreign control, foreign influence, classified information, export controls, defense production, maritime security, port security, customs, sanctions and transportation security. Nothing in this section shall be interpreted to establish a state standard that conflicts with federal law. SECTION 9. QUALIFIED INTERNATIONAL SHIPBUILDING PARTNERS The Authority may solicit participation from qualified shipbuilding companies located in allied or partner nations. Potential partners may include companies headquartered in South Korea, Japan, Finland, Canada, the United Kingdom, Australia, or other nations determined by the appropriate federal authorities and the Authority to be appropriate partners. A proposed partnership with a foreign company shall be evaluated according to technical capability, financial capacity, shipbuilding experience, U.S. operations, workforce development, technology-transfer terms, security requirements, intellectual-property rights, supply-chain resilience and federal approval requirements. SECTION 10. HANWHA AND OTHER STRATEGIC PARTNERS The State may evaluate proposals involving Hanwha or another qualified international shipbuilding enterprise. No company shall receive an exclusive right under this act. Any project shall be awarded through a transparent competitive or otherwise legally authorized process. The State may negotiate directly with a qualified partner only where permitted by applicable procurement law and where a direct negotiation is independently justified. SECTION 11. SHIPYARD DEVELOPMENT The Authority shall evaluate potential sites for a California shipbuilding complex. The evaluation shall include water depth, existing marine infrastructure, dry-dock potential, heavy-lift capability, rail access, highway access, workforce availability, electrical power, water availability, environmental constraints, seismic conditions, flood and sea-level-rise risk, port security, existing land uses, adjacent communities, construction cost, federal ownership and jurisdiction, and long-term expansion capability. The primary industrial development area shall be evaluated in the greater Long Beach–Los Angeles maritime region. Avalon and Santa Catalina Island shall be treated separately as a geographically sensitive maritime, transportation and research location rather than presumed to be the primary location for heavy industrial shipbuilding. SECTION 12. CATALINA ISLAND Nothing in this act shall require construction of a heavy industrial shipyard on Santa Catalina Island. Any proposed project on Catalina Island shall account for environmental protection, island water and power limitations, transportation limitations, conservation, existing communities, tourism, marine habitat, emergency services, historic resources, land ownership and coastal requirements. Avalon may instead serve as a location for maritime research, passenger transportation, emergency logistics, maritime communications, tourism-related transportation, research and testing, limited support facilities and environmental monitoring. SECTION 13. STEEL AND FABRICATION SUPPLY CHAIN The Authority shall conduct a supply-chain study covering California steel, U.S. steel, Canadian steel, Mexican steel, Central American materials, Colombian materials and other qualified international sources. The study shall evaluate price, availability, quality, transportation cost, tariff exposure, customs, sanctions, political risk, supply continuity, environmental requirements, domestic-content requirements and federal procurement requirements. The objective shall be to establish a diversified supply chain rather than dependence upon one country or supplier. SECTION 14. VENEZUELAN MATERIALS No provision of this act shall authorize the importation, purchase, financing, transportation, processing or use of Venezuelan-origin commodities where the transaction is prohibited by federal law. A Venezuelan supply arrangement may be considered only if the transaction is lawful under federal law, all applicable OFAC requirements are satisfied, all required licenses or authorizations have been obtained, the parties have completed sanctions screening, the transaction complies with applicable customs requirements, the transaction complies with applicable export controls, the transaction complies with applicable anti-money-laundering requirements, the transaction does not involve a prohibited person, and federal agencies with jurisdiction have not prohibited the transaction. The Authority shall not represent that state legislation itself authorizes a Venezuelan transaction. SECTION 15. INTERNATIONAL MARITIME CORRIDOR The Authority shall study an international maritime supply corridor connecting California with qualified suppliers and industrial partners in Mexico, Central America, Colombia, South America, the Caribbean, Asia, Europe and other qualified markets. The corridor may include ocean shipping, containerized cargo, bulk cargo, breakbulk cargo, rail, truck, warehousing, transloading and customs facilities. All transportation shall remain subject to federal maritime law. SECTION 16. JONES ACT AND FEDERAL MARITIME LAW Nothing in this act shall amend the Merchant Marine Act of 1920, waive the Jones Act, establish a state exemption from federal maritime law, authorize a foreign-built vessel to engage in domestic coastwise trade where federal law prohibits it, establish federal vessel documentation, establish federal vessel citizenship, or modify federal customs requirements. Projects shall be designed so that domestic transportation requirements can be satisfied independently from international transportation requirements. SECTION 17. SUBTERRANEAN PACIFIC GATEWAY TRANSIT SYSTEM The Authority shall conduct a feasibility study for a high-capacity grade-separated transportation system. The study shall evaluate possible connections between the Port of Long Beach, Port of Los Angeles, Long Beach industrial areas, Signal Hill, Carson, rail facilities, manufacturing facilities, logistics facilities, airport connections and other major transportation nodes. The study shall determine whether an underground transportation system is technically and economically preferable to surface rail, elevated rail, conventional freight rail, automated transit or other alternatives. No construction shall begin solely on the basis of this act. SECTION 18. TRANSIT FEASIBILITY STUDY The feasibility study shall evaluate geological conditions, seismic risk, tunnel depth, tunnel diameter, construction method, passenger capacity, freight capacity, emergency evacuation, ventilation, fire protection, security, power requirements, station locations, property acquisition, construction staging, operating costs, maintenance costs, ridership, freight demand, revenue, environmental impacts, community impacts and alternative transportation systems. The study shall include a preliminary capital-cost range and lifecycle-cost analysis. SECTION 19. ENVIRONMENTAL REVIEW All projects authorized or assisted pursuant to this act shall comply with applicable environmental laws, including the California Environmental Quality Act, National Environmental Policy Act, California Coastal Act, federal Clean Water Act, federal Clean Air Act, Endangered Species Act, Marine Mammal Protection Act, and applicable port, state and local environmental requirements. Nothing in this act shall exempt a project from environmental review unless a future statute expressly and lawfully provides an exemption. SECTION 20. WORKFORCE DEVELOPMENT The Authority shall coordinate with community colleges, vocational schools, trade unions, apprenticeship programs, universities, maritime academies, private employers and workforce-development agencies. Training priorities shall include welding, pipefitting, electrical systems, marine engineering, naval architecture, heavy fabrication, crane operation, robotics, industrial automation, ship repair, quality control, nondestructive testing, logistics, port operations and safety. The program shall establish measurable employment and training targets. SECTION 21. LABOR STANDARDS Any project receiving state financial assistance shall comply with all applicable California labor laws. Contracts shall establish requirements concerning prevailing wage, workplace safety, apprenticeship utilization where applicable, worker classification, wage reporting, workers' compensation, nondiscrimination and lawful employment practices. The Authority may establish additional labor requirements consistent with state and federal law. SECTION 22. FINANCING Financing may include private equity, private debt, revenue bonds, federal grants, federal loans, state loans, local government financing, port financing, infrastructure financing, qualified tax-exempt financing, industrial development bonds where legally available, public-private partnerships and other lawful financing. The State shall not guarantee the profitability of a private shipbuilding enterprise. SECTION 23. CALIFORNIA INFRASTRUCTURE FINANCING The Authority shall evaluate eligibility for financing through the California Infrastructure and Economic Development Bank and other state financing programs. Eligible public infrastructure may include, where authorized, port facilities, public transit, goods-movement infrastructure, transportation, power infrastructure, communications, economic-development facilities, environmental mitigation and related public infrastructure. SECTION 24. FEDERAL MATCHING FUNDS The Authority shall seek federal participation in projects consistent with applicable federal programs. Federal applications shall identify the project as supporting American shipbuilding, maritime industrial capacity, supply-chain resilience, port infrastructure, transportation infrastructure, workforce development, national economic security and national maritime security. The Authority shall coordinate applications with appropriate federal agencies. SECTION 25. PORT COORDINATION The Authority shall coordinate, where appropriate, with the Port of Long Beach, Port of Los Angeles, local governments, transportation agencies, rail operators, federal maritime agencies, Coast Guard, Maritime Administration, Department of Transportation, Department of Commerce and other agencies with jurisdiction. No provision of this act shall transfer powers belonging to an existing port authority or local government. SECTION 26. FEDERAL MARITIME POLICY The Legislature encourages the federal government to continue rebuilding the U.S. commercial shipbuilding industry, expand the U.S.-flagged commercial fleet, increase federal shipbuilding financing, expand maritime workforce programs, support allied shipbuilding partnerships, support domestic steel and marine fabrication, improve port infrastructure, establish predictable maritime industrial policy, support California maritime infrastructure projects and consider California projects for federal maritime funding. The Legislature requests that Congress and the President evaluate the Pacific Gateway as a potential West Coast component of national maritime industrial policy. SECTION 27. FEDERAL LEGISLATIVE REQUEST The Legislature may transmit a resolution or formal communication to California's congressional delegation requesting federal legislation or administrative action to support commercial shipbuilding in California, a strategic U.S.-flagged commercial fleet, U.S. shipyard financing, qualified allied shipbuilding partnerships, maritime workforce development, port infrastructure, domestic steel and fabrication, and appropriate federal treatment for qualifying Pacific Gateway projects. This section does not itself enact federal law. SECTION 28. INTERNATIONAL PARTNERSHIP PRINCIPLES International participation shall be based upon reciprocal commercial benefit, lawful trade, national-security compatibility, transparency, financial accountability, intellectual-property protection, workforce development, supply-chain resilience, technological cooperation and long-term economic benefit. No foreign partner shall receive governmental authority merely because it participates in the program. SECTION 29. SECURITY The Authority shall establish a security program addressing physical security, cybersecurity, port security, supply-chain security, foreign ownership, foreign influence, export controls, sensitive technology, critical infrastructure and protection of government information. Federal security requirements shall control where federal jurisdiction applies. SECTION 30. PROCUREMENT Public procurement under this act shall comply with applicable California procurement law, federal procurement requirements, competitive bidding requirements, conflict-of-interest requirements, public-record requirements, prevailing-wage requirements and environmental requirements. The State shall not select a foreign company solely because of its nationality. SECTION 31. CONFLICTS OF INTEREST Any person participating in the administration of this program shall comply with applicable California conflict-of-interest laws. A private sponsor or proponent may submit proposals but shall not exercise governmental authority. Private participants shall disclose material financial interests as required by law. SECTION 32. REPORTING Beginning one year after establishment of the program, the Authority shall provide an annual report to the Legislature containing projects under evaluation, projects approved, projects under construction, private investment committed, public financing committed, federal funding requested, federal funding received, jobs created, apprentices trained, ships constructed or repaired, manufacturing capacity added, supply-chain investments, environmental review status, transit feasibility findings, security findings, foreign-partner participation and projected economic impact. SECTION 33. PERFORMANCE REQUIREMENTS Any public-private development agreement shall establish measurable performance requirements, which may include construction milestones, investment milestones, employment targets, workforce-training targets, production targets, environmental requirements, security requirements, reporting requirements, financial guarantees and termination provisions. Failure to meet material contractual requirements may result in termination, repayment, loss of incentives or other lawful remedies. SECTION 34. PROPERTY The Authority may evaluate acquisition, leasing or use of property necessary for public infrastructure. No private property shall be acquired except pursuant to applicable California law. The Authority shall prioritize existing industrial land, existing port property, brownfield or redevelopment opportunities, underutilized industrial property and existing transportation corridors. SECTION 35. TECHNOLOGY AND INTELLECTUAL PROPERTY Public-private agreements shall specify ownership and licensing rights concerning ship designs, engineering, software, manufacturing processes, robotics, automation, proprietary technology, patents and technical data. Government funding shall not automatically transfer private intellectual property to the State unless expressly provided by contract or law. SECTION 36. NO FEDERAL PREEMPTION Nothing in this act shall be interpreted to regulate foreign commerce in a manner preempted by federal law, regulate interstate commerce in a manner prohibited by the Constitution, modify federal maritime law, modify federal sanctions, modify federal immigration law, modify federal customs law, modify federal defense procurement, modify federal export controls, or modify federal vessel documentation requirements. SECTION 37. NO SANCTIONS AUTHORIZATION No state permit, contract, grant, bond, loan or development agreement issued under this act shall constitute authorization by the State of California to conduct a transaction prohibited under federal sanctions law. All participants shall independently determine and document their federal compliance obligations. SECTION 38. ECONOMIC DEVELOPMENT The Authority shall evaluate the potential economic effects of the program, including direct employment, indirect employment, induced employment, tax revenues, port activity, manufacturing, logistics, exports, imports, construction, engineering, workforce development and regional economic development. The Authority shall distinguish projected benefits from verified results. SECTION 39. PRODUCTION PLANNING BASIS The Legislature adopts, for planning purposes only, a production basis of approximately 200 vessel deliveries annually at full production from a highly automated commercial shipbuilding complex using automated cutting, automated welding, automated material movement, modular assembly, robotic inspection and computerized production management. This production basis is a planning objective and not a mandatory production quota. At 250 operating days per year, 200 vessels annually equals 0.8 vessels per operating day, or approximately one completed vessel every 1.25 operating days. Production at this scale would require multiple parallel production lines and modular production rather than a single conventional keel-to-delivery shipyard. Production lines may include hull modules, engine and propulsion modules, electrical systems, interior modules, pipe and mechanical systems, automated hull assembly, painting and coating, and final integration and testing. Automation shifts employment away from repetitive fabrication and toward engineering, robotics, maintenance, software, quality control, logistics, supply-chain manufacturing and system supervision. Before any employment or economic figure is adopted as a program target, the Authority shall establish a standard vessel class and an estimated average vessel value. For illustration, annual production value at 200 vessels would be approximately $20 billion at an average of $100 million per vessel, $40 billion at $200 million per vessel and $60 billion at $300 million per vessel. National employment data published by the Maritime Administration for 2019 reported approximately 107,000 people directly employed by U.S. private shipyards and approximately 393,390 total direct, indirect and induced jobs supported, a ratio of approximately 3.7 total jobs per direct shipyard job. That data describes the existing U.S. shipbuilding and repair industry and not a highly automated complex producing 200 vessels annually. SECTION 40. PERMANENT EMPLOYMENT PLANNING ESTIMATE At full production, a Pacific Gateway shipbuilding and maritime-industrial complex designed for approximately 200 vessel deliveries annually could support an estimated 25,000 to 30,000 permanent direct, supplier, logistics and induced jobs, with a central planning estimate of 27,000 permanent jobs, subject to vessel type, production value, automation level, domestic-content requirements, capital investment and final facility design. The estimate consists of approximately 15,000 to 17,000 direct and integrated Pacific Gateway jobs plus approximately 10,000 to 13,000 additional supplier, logistics and induced jobs. The shipyard workforce itself is estimated at approximately 7,000 to 10,000 people. At the central estimate, 27,000 supported jobs divided by 200 vessels equals 135 supported jobs per annual vessel of production. This figure measures supported employment across the entire industrial ecosystem and does not represent the number of people permanently employed per vessel. Supported employment includes shipyard employees, engineers, automation specialists, maintenance personnel, steel and fabrication workers, component suppliers, logistics and transportation workers, port operations, administrative services and local induced employment. Because the facility would carry its automated infrastructure at lower production levels, additional output would require proportionally smaller increases in permanent labor. Estimated total supported permanent jobs by annual production level are: 50 vessels per year: 10,000 to 15,000 jobs 100 vessels per year: 17,000 to 22,000 jobs 150 vessels per year: 21,000 to 27,000 jobs 200 vessels per year: 25,000 to 30,000 jobs 250 vessels per year: 28,000 to 34,000 jobs These figures are planning estimates and not employment forecasts supported by an engineering production model. SECTION 41. CONSTRUCTION-PHASE EMPLOYMENT PLANNING ESTIMATE Construction of the shipyard, maritime infrastructure, fabrication facilities, warehouses, power systems, docks, cranes, automated production equipment, transportation infrastructure and associated public infrastructure could generate approximately 15,000 to 30,000 temporary direct construction jobs plus approximately 10,000 to 20,000 indirect and induced jobs, for an estimated 25,000 to 50,000 total construction-related jobs during peak development. These jobs would not all exist simultaneously for the entire construction period. SECTION 42. TEN-YEAR EMPLOYMENT TRAJECTORY For planning purposes, the program may use the following development trajectory: Year 1: 0 vessels per year; 2,000 to 4,000 direct and integrated jobs; 4,000 to 7,000 total supported jobs. Year 2: 10 to 25 vessels per year; 4,000 to 6,000 direct and integrated jobs; 7,000 to 11,000 total supported jobs. Year 3: 30 to 50 vessels per year; 6,000 to 8,000 direct and integrated jobs; 10,000 to 15,000 total supported jobs. Year 4: 60 to 80 vessels per year; 8,000 to 10,000 direct and integrated jobs; 14,000 to 19,000 total supported jobs. Year 5: 90 to 110 vessels per year; 10,000 to 12,000 direct and integrated jobs; 17,000 to 22,000 total supported jobs. Year 6: 120 to 140 vessels per year; 11,000 to 14,000 direct and integrated jobs; 19,000 to 25,000 total supported jobs. Year 7: 150 to 165 vessels per year; 12,000 to 15,000 direct and integrated jobs; 21,000 to 27,000 total supported jobs. Year 8: 170 to 180 vessels per year; 13,000 to 16,000 direct and integrated jobs; 23,000 to 29,000 total supported jobs. Year 9: 190 to 195 vessels per year; 14,000 to 17,000 direct and integrated jobs; 25,000 to 30,000 total supported jobs. Year 10: 200 vessels per year; 15,000 to 17,000 direct and integrated jobs; 25,000 to 30,000 total supported jobs. The Authority shall distinguish these projections from verified employment results as required by Section 38. SECTION 43. RESILIENCE Projects shall be evaluated for resilience against earthquakes, tsunamis, sea-level rise, flooding, wildfire, power interruption, cyberattack, supply-chain disruption, port closure, international conflict and transportation interruption. Critical infrastructure shall incorporate redundancy where economically and technically justified. SECTION 44. PHASED IMPLEMENTATION The program shall be implemented in phases: Phase I — Feasibility: site analysis, supply-chain analysis, transit study, environmental screening, workforce study, financial analysis, federal jurisdiction analysis. Phase II — Development: property assembly, infrastructure planning, partner selection, federal coordination, financing, environmental review, engineering. Phase III — Construction: port improvements, shipyard construction, fabrication facilities, transportation infrastructure, workforce facilities. Phase IV — Operations: vessel construction, vessel repair, manufacturing, logistics, workforce training, international trade. Phase V — Expansion: additional shipyard capacity, additional manufacturing, expanded maritime fleet support, additional transportation connections. SECTION 45. INITIAL TARGETS The program shall use the following as planning objectives rather than mandatory production quotas: 1. Establish at least one major California shipbuilding development site. 2. Establish a U.S.-controlled operating structure. 3. Establish at least one qualified allied international shipbuilding partnership. 4. Establish a domestic and international steel/fabrication supply study. 5. Establish a maritime workforce program. 6. Complete a Pacific Gateway transportation feasibility study. 7. Complete a subterranean transit feasibility study. 8. Pursue federal funding. 9. Pursue private capital. 10. Evaluate capacity sufficient to contribute materially to the national objective of expanding the U.S. commercial fleet. These objectives do not constitute a federal mandate to build a specified number of vessels. SECTION 46. FIVE-YEAR REVIEW Five years after implementation, the Legislature shall review economic performance, construction progress, employment, shipbuilding output, private investment, public expenditure, federal participation, environmental compliance, transit feasibility, international partnerships and supply-chain security. The Legislature may modify, expand or terminate portions of the program following the review. SECTION 47. SUNSET Unless extended by statute, the authority to enter into new development agreements under this act shall expire ten years after the effective date. Existing contracts, bonds, loans, leases and development agreements shall remain in effect according to their terms. SECTION 48. SEVERABILITY If any provision of this act or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SECTION 49. APPROPRIATIONS The Legislature may appropriate funds for implementation of this act. No appropriation shall be implied solely by enactment of this act. The Authority shall identify the source of funding for each project before entering into a financial commitment. SECTION 50. EFFECTIVE DATE This act shall become operative on January 1 following enactment unless otherwise provided by law. SECTION 51. LEGISLATIVE COUNSEL AND BILL DRAFTING The Legislature's Legislative Counsel shall convert this proposal into the technical form required for introduction as a California Assembly bill and shall determine appropriate Government Code, Public Resources Code, transportation and financing statutes, definitions, cross-references, constitutional limitations, appropriation requirements, bond authorization requirements and necessary conforming amendments. SECTION 52. FEDERAL COMPANION REQUEST Because California cannot establish federal maritime policy by state statute, the Legislature should transmit a companion request to Congress seeking federal legislation supporting the Pacific Gateway, including authority and funding for U.S. commercial shipbuilding, U.S.-flagged vessels, shipyard modernization, maritime workforce development, allied shipbuilding partnerships, port infrastructure, strategic materials, domestic steel production, maritime transportation, federal ship financing and national supply-chain resilience, while expressly preserving federal control over sanctions, foreign commerce, customs, maritime law, national defense and vessel documentation. SECTION 53. POLICY STATEMENT California should seek to become a major Pacific maritime industrial center without attempting to replace federal maritime authority. The Pacific Gateway model shall therefore be based upon California infrastructure + U.S. ownership and control + allied industrial expertise + diversified international supply chains + private capital + federal maritime coordination. The program shall distinguish public infrastructure from private commercial operations. Public funds shall be directed primarily toward infrastructure, workforce development, feasibility, environmental review and other legitimate public purposes. Private companies shall bear appropriate commercial risk for private shipbuilding and manufacturing operations. SECTION 54. IMPLEMENTATION MODEL The recommended implementation structure is: STATE OF CALIFORNIA ↓ PACIFIC GATEWAY DEVELOPMENT AUTHORITY ↓ PORT / LOCAL GOVERNMENT / TRANSPORTATION AGENCIES ↓ U.S.-CONTROLLED OPERATING COMPANY ↓ SHIPBUILDING JOINT VENTURE ↓ QUALIFIED U.S. + ALLIED SHIPBUILDING PARTNER ↓ Separate operating entities: Pacific Gateway Shipyard Pacific Gateway Steel & Fabrication Pacific Gateway Marine Manufacturing Pacific Gateway Logistics Pacific Gateway Transit Pacific Gateway Research & Workforce The entities shall remain legally separate where appropriate for financing, liability, accounting, procurement and regulatory purposes. SECTION 55. FINAL LEGISLATIVE OBJECTIVE It is the intent of the Legislature that California establish the legal, financial, transportation, workforce and infrastructure framework necessary to determine whether Southern California can support a large-scale expansion of the United States maritime industrial base. The project shall begin with documented feasibility and lawful financing rather than an assumption that construction is commercially or technically justified. The ultimate objective is a functioning Pacific maritime industrial corridor capable of supporting American shipbuilding, American maritime employment, U.S. commercial shipping, port infrastructure, vessel repair, steel and marine fabrication, international trade, allied industrial cooperation, transportation efficiency, supply-chain resilience and national economic security. SPONSORING / PRESENTATION INFORMATION Proposed Legislative Vehicle: California Assembly Bill District: California Assembly District 69 Current Assemblymember: Josh Lowenthal Primary Geographic Focus: Long Beach / Carson / Signal Hill / Avalon / Santa Catalina Island Proponent: Fiveo1 Mailing Address: Fiveo1 P.O. Box 312786 Avalon, California 90704 United States of America Proposal Contact: Evan Winter PRIMARY LEGISLATIVE AND CONGRESSIONAL CONTACTS California State Assembly – District 69 Assemblymember Josh Lowenthal Capitol Office: 1021 O Street, Suite 8320, Sacramento, CA 95814 Phone: (916) 319-2069 District Office: 3777 Long Beach Boulevard, Suite 260, Long Beach, CA 90807 Phone: (562) 366-2769 Email: assemblymember.lowenthal@assembly.ca.gov California State Senate – District 33 Senator Lena A. Gonzalez Capitol Office: 1021 O Street, Suite 7510, Sacramento, CA 95814 Phone: (916) 651-4033 District Office: 3939 Atlantic Avenue, Suite 107, Long Beach, CA 90807 Phone: (562) 256-7921 Email: senator.gonzalez@senate.ca.gov United States House of Representatives – California 42nd District Congressman Robert Garcia Washington, D.C. Office: 109 Cannon House Office Building, Washington, DC 20515 Phone: (202) 225-7924 District Office: 415 West Ocean Boulevard, Suite 2803, Long Beach, CA 90802 United States Senate – California Senator Alex Padilla 331 Hart Senate Office Building, Washington, DC 20510 Phone: (202) 224-3553