Harbor Commission

Long Beach Board of Harbor Commissioners
President Bonnie Lowenthal
Vice President Frank Colonna
Secretary Lou Anne Bynum
Commissioner Tracy J. Egoscue
Commissioner ​Steven Neal

 

Los Angeles Board of Harbor Commissioners
President Jaime L. Lee
Vice President Edward R. Renwick
Commissioner Diane L. Middleton
Commissioner Lucia Moreno-Linares
Commissioner Anthony Pirozzi, Jr.​

Summary: Staff requests that the Board of Harbor Commissioners (Board) approve a 2020 Clean Truck Fund (CTF) Rate amount to be set at $10 per Twenty-Foot Equivalent Unit (TEU). The CTF Rate will be charged to the Beneficial Cargo Owners (BCOs) that utilize trucks hauling loaded containers in and out of the marine terminals at the ports of Los Angeles and Long Beach (Ports), with a permanent full exemption for California Air Resources Board (CARB) certified zero emission (ZE) trucks, and a temporary full exemption for CARB certified heavy-duty low nitrogen oxides (NOx) trucks through December 31, 2031. After this date, only ZE trucks will be exempt from the CTF Rate.  Though details of how money collected from the fee is to be administered and disbursed will be developed through stakeholder engagement in the next few months, the Ports plan to use the money collected from the CTF Rate to provide incentive funding toward the purchase of low NOx and ZE trucks including supportive infrastructure, and to pay consultant fees to collect the CTF Rate at their container terminals. The Port of Long Beach (POLB) is requesting the same action from its Board.  Staff also requests that the Board adopt the Joint 2020 Clean Truck Program Rate Resolution. The City of Los Angeles Harbor Department (Harbor Department) is setting the amount of the CTF Rate in advance of tariff approval to allow for stakeholder planning. This additional time will allow various stakeholders, including the BCOs, shipping lines and trucking companies, to incorporate this information into their annual contract negotiations for 2020 pricing. The CTF Rate amount will not be collected until the following actions take place: (1) CARB adoption of a heavy-duty low NOx engine manufacturing standard; (2) Board approval of a CTF Rate collection mechanism; and (3) adoption of a Port of Los Angeles (POLA) Tariff Amendment by the Board and the Los Angeles City Council that authorizes the details of the CTF Rate collection. Staff plans to return to the Board and City Council later in 2020 with a request to adopt and begin collecting the CTF Rate through a POLA Tariff Amendment including this 2020 CTF Rate and other details.  Setting the CTF Rate amount has no financial effect on the Harbor Department or others, unless and until CTF Rate collection commences pursuant to Board and City Council adoption of a POLA Tariff Amendment as described.
 
 Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is generally and statutorily exempt from the California Environmental Quality Act (CEQA) under Sections 15061(b)(3), 15262, and 15273 of the State CEQA Guidelines; (2) approve, for planning purposes, the 2020 Clean Truck Fund (CTF) Rate amount at $10 per Twenty-Foot Equivalent Unit (TEU) with the following exemptions: full exemption of the CTF Rate for the pick up or drop off of a loaded container hauled by a California Air Resources Board (CARB) certified zero emission (ZE) truck throughout all collection periods; full exemption of the CTF Rate for the pick up or drop off of a loaded container hauled by a CARB certified low nitrogen oxides (NOx) truck between the start of the CTF Rate collection from commencement in 2020 through December 31, 2031; and starting January 1, 2032, low NOx trucks are proposed to pay the full CTF Rate amount to encourage transition to ZE trucks; (3) adopt the Joint 2020 Clean Truck Program Rate Resolution No.____________ and adopt Resolution No.___________.