LOS ANGELES — Mayor Eric Garcetti today announced that the ports of Los Angeles and Long Beach have begun implementing the Clean Truck Fund (CTF) rate program, a fee imposed on loaded trucks entering or leaving container terminals that is expected to generate approximately $90 million in its first year for the development and deployment of zero-emission trucks and infrastructure.
“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 Mayor Eric Garcetti. “As we continue to move record-breaking cargo volumes through our port complex, the need for zero-emission 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.”
Under the CTF program starting today, the ports will begin collecting a rate of $10 per loaded 20-foot equivalent unit on drayage trucks entering or leaving the terminals. Exemptions to the CTF rate will be provided for containers hauled by zero-emission trucks, and a temporary exemption for containers hauled by low-nitrogen oxide-emitting trucks.
The CTF spending plans, approved separately by each port, will move the region closer to meeting the goals of the Clean Air Action Plan (CAAP), an agreement championed by Mayor Garcetti that directs the nation’s largest port complex to reduce air pollution. The CTF will specifically help meet the ambitious goal to be 100% serviced by zero-emission drayage trucks by 2035.
The spending plans approved by the ports’ respective harbor commissions outline priority targets and pathways that will be used to disseminate the collected funds, including a truck voucher incentive program, which will provide a first-come, first-serve, point-of-sale for zero-emission truck vouchers for at least $150,000 to licensed motor carriers in the Port Drayage Truck Registry, which will be obligated to provide service to the San Pedro Bay Port complex for at least three years; and an infrastructure funding program, which will provide funds to help licensed motor carriers install or obtain zero-emission charging and fueling infrastructure.
“Greenhouse gas emissions from transportation sources like heavy-duty trucks is a significant contributor to climate change,” said Los Angeles Harbor Commission President Jaime Lee. “Funds from this program will be used exclusively to help 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.”
The shift to zero-emission technologies at the Port also includes a pledge to obtain 100% zero-emission cargo handling equipment by 2030. The Port is currently North America’s leading seaport by container volume and cargo value, processing a record-breaking 10.7 million twenty-foot equivalent (TEUs) in 2021, a Western Hemisphere record – compared to 7.9 million TEUs in 2013. The Port of Los Angeles supports approximately 133,000 jobs in Los Angeles and 1 in 90 jobs throughout the United States.