Governor Brown Signs Bill Banning Coal-Export Funding

SACRAMENTO, Calif. (AP) — California Gov. Jerry Brown is signing legislation to ban state transportation funding for new coal export terminals.

The Democratic governor's decision on Friday comes as environmental groups wage an aggressive campaign to block the export of coal from West Coast ports to satisfy Asia's rapidly growing demand for energy.

Democratic Sen. Loni Hancock of Oakland introduced the legislation in response to a developer's proposal to build a coal terminal in Oakland with the help of funding from the state of Utah. The developer, Phil Tagami, is a friend of Brown.

The Oakland city council effectively killed that project in June, but the legislation would make it more difficult for developers to build elsewhere.

Critics of the legislation say it may violate federal law and treaties.