San Pedro Bay ports to use CTF revenue exclusively to incentivize zero-emission trucks and infrastructure
The Harbor Commissions of the ports of Los Angeles and Long Beach have each adopted spending plans for the Clean Truck Fund (CTF) rate program, a key component of the ports’ Clean Air Action Plan (CAAP). The plans, approved separately by each port, target the development and deployment of zero-emission (ZE) trucks and infrastructure, and move the two ports closer to their CAAP goal of being serviced by a 100% zero-emission drayage truck fleet by 2035.
Under the CTF program, starting April 1 the Port of Long Beach and the Port of Los Angeles will begin collecting a rate of $10 per twenty-foot equivalent unit on loaded drayage trucks entering or leaving their container terminals. The program is expected to generate up to $90 million from the San Pedro Bay ports in its first year. 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 CTF spending plans approved by the ports’ respective harbor commissions outline 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 two ports 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 could provide 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.
The ports will host stakeholder engagement activities in the coming months to answer questions and help truckers gain access to these programs.
Comments on the CTF Spending Plan:
Long Beach Mayor Robert Garcia:
“It’s critical that we transition to a zero-emissions fleet. The Clean Truck Fund provides significant incentives for the trucking industry to phase out older, polluting trucks, for zero emissions technology. This is a monumental effort and helps the two largest cities in Los Angeles County to fulfill a shared commitment we’ve made to combat climate change.”
Los Angeles Mayor Eric Garcetti:
“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. 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.”
Long Beach Harbor Commission President Steven Neal:
“California has some of the worst air pollution in the country, and government agencies have a responsibility to find solutions to protect health in vulnerable communities. This is an important step and provides financial assistance to the trucking industry to buy new vehicles as we collaborate to deliver our goal of a zero-emissions truck fleet.”
Los Angeles Harbor Commission President Jaime Lee:
“Our two ports have set a high bar for getting clean trucks on our streets, and this spending plan and its incentives will help accelerate that transition. We are the only port complex in the nation that is driving a changeover to cleaner trucks and broader zero-emission drayage truck technology commercialization to this magnitude. It’s truly a groundbreaking effort.”
Port of Los Angeles Executive Director Gene Seroka:
“A transition to a zero-emission truck fleet will require extensive cooperation from the public and private sector, with multiple funding streams beyond what this new Clean Truck Fund can provide. We urgently need our partners to accelerate technology advancement and step up their commitment, investment and support to make this large-scale changeover to zero-emission trucks a success and a model for others to follow.”
Port of Long Beach Executive Director Mario Cordero:
“The Clean Truck Program allows us to aggressively balance pursuing zero-emissions operations with economic vitality and competitiveness. The Clean Truck Fund spending plan is a vital part of this. It is our hope the incentives and infrastructure program will lead to other public and private investments as we work together with our many partners to transition our operations to a greener future.”