PORT OF LOS ANGELES LAUNCHES FUND TO HELP TRANSITION TO ZERO EMISSIONS
Clean Truck Fund to Incentivize ZE Truck Purchases
SAN PEDRO, Calif. – April 1, 2022 – The Port of Los Angeles and Port of Long Beach today debuted a new Clean Truck Fund, a major initiative designed to help incentivize the development and deployment of zero-emission (ZE) trucks and infrastructure at the ports. Approximately $90 million is expected to be collected the first year, moving the San Pedro Bay port complex toward a goal of being serviced by a 100% zero-emission drayage truck fleet by 2035.
“When it comes to confronting the climate crisis, Los Angeles doesn’t wait for solutions to show up on our doorstep – we forge a path for cities around the world to follow,” said Los Angeles Mayor Eric Garcetti. “As we continue to move record-breaking cargo volumes through our port complex, the need for zero-emissions solutions has never been greater, and I’m proud to see our region leading on this first-of-its-kind step to steer our port toward cleaner air, lower emissions and healthier communities.
“Greenhouse gas emissions from heavy duty trucks are a significant contributor to climate change,” said Los Angeles Harbor Commission President Jaime Lee. “Funds from this program will be used exclusively to incentivize the transition from carbon-based fuels to zero emission technology.”
“The launch of today’s program is an important step forward, yet much more collective work needs to be done,” said Port of Los Angeles Executive Director Gene Seroka. “Transitioning the fleet of trucks that serve this port complex is a $10 billion effort that requires all stakeholders to coordinate on funding, policy, and infrastructure. We need to accelerate the technology and develop investment streams – public and private – to support this effort.”
Phasing out older, more polluting trucks has been key to clean air gains the San Pedro Bay ports have made since the original Clean Truck programs were launched in 2008 as part of the Clean Air Action Plan. Diesel emissions from trucks have been cut by as much as 97% compared to 2005 levels. Trucks remain the ports’ largest source of greenhouse gas emissions and the second highest source of nitrogen oxides, a contributor to regional smog formation.
Under the Clean Truck Fund (CTF) program, the two ports today began collecting a rate of $10 per loaded twenty-foot-equivalent unit on drayage trucks entering or leaving container terminals. Exemptions to the CTF rate will be provided for containers hauled by zero-emission trucks; containers hauled by low-nitrogen oxide-emitting (low-NOx) trucks will receive limited-time exemptions from the CTF rate.
The Los Angeles Harbor Commission last week approved priority targets and pathways that will be used to disseminate the newly collected funds, including:
- Truck Voucher Incentive Program: To incentivize the purchase of ZE trucks that service the San Pedro Bay port complex, the Port of Los Angeles will provide first-come, first-served, point-of-sale ZE truck purchase vouchers for at least $150,000 to licensed motor carriers in the Port Drayage Truck Registry. Each truck funded will be obligated to provide drayage service to the San Pedro Bay Port complex for a period of three years.
- Infrastructure Funding Program: Modeled after existing federal, state and local grant programs and to be managed by a third-party administrator, this program provides funds to help drayage licensed motor carriers to install or obtain ZE charging and/or fueling infrastructure. Funding could also be used to support public charging and fueling infrastructure for zero emission drayage trucks.
More information about the Clean Truck Fund rate, including a fact sheet and frequently asked questions, may be found here.
North America’s leading seaport by container volume and cargo value, the Port of Los Angeles facilitated $259 billion in trade during 2020. San Pedro Bay port complex operations and commerce facilitate one in nine jobs across the counties of Los Angeles, Orange, Riverside, San Bernardino and Ventura. The Port of Los Angeles has remained open with all terminals operational throughout the COVID-19 pandemic.