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PORT OF LA, LONG BEACH LAUNCH CLEAN TRUCK FUND RATE
April 1, 2022
The Port of Los Angeles and Port of Long Beach has begun a new Clean Truck Fund to help incentivize the development and deployment of zero-emission (ZE) trucks and infrastructure at the ports.
US$90M fund for the first year
The San Pedro Bay area ports said approximately US$90 million is expected to be collected in 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 Eric Garcetti, Los Angeles mayor. "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."
Jaime Lee, Los Angeles Harbor Commission president noted that greenhouse gas emissions from heavy-duty trucks are a "significant contributor" to climate change.
"Funds from this program will be used exclusively to incentivize the transition from carbon-based fuels to zero-emission technology," Lee added.
Gene Seroka, Port of Los Angeles executive director said: "Transitioning the fleet of trucks that serve this port complex is a US$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."
Meanwhile, Port of Long Beach also called on the intermodal shipping industry to follow the program implemented at the two California ports — the busiest ports in North America.
"I'm urging the intermodal shipping industry to follow our lead in San Pedro Bay by decarbonizing trucking and minimizing climate impacts," said Mario Cordero, Port of Long Beach executive director.
"The Clean Truck Program allows us to balance the aggressive pursuit of zero-emissions operations with economic vitality and competitiveness. This rate is a vital component of this program," he added.
Long Beach Harbor Commission President, Steven Neal, for his part, noted the help and willingness of industry partners to make operations at the ports more sustainable.
"[This] is an important step in getting truckers the assistance they need as we collaborate to create a zero-emissions truck fleet," Neal said. "We've shown we can do this, and more importantly, that our industry friends are great partners when it comes to the work of making the goods movement more sustainable."
Clean Truck Fund Rate
As of April 1, cargo owners will pay up to US$20 per loaded container hauled by drayage trucks in and out of the container terminals. Exemptions from the rate are provided for loaded containers hauled by zero-emissions trucks, and under limited circumstances, by low-nitrogen oxide trucks.
The two ports have earlier set an industry-leading goal to achieve zero-emissions drayage trucking by 2035.
The two ports have earlier set an industry-leading goal to achieve zero-emissions drayage trucking by 2035.
Port of Long Beach noted that the Clean Truck Fund rate was created to help support the changeover to cleaner trucks and is expected to generate US$90 million in the first year — or US$45 million per port.
The ports noted that diesel emissions from trucks have been cut by as much as 97% compared to 2005 levels but trucks remain the ports' largest source of greenhouse gas emissions and the second-highest source of nitrogen oxides, a contributor to regional smog formation.
