Effective 1 April 2022, the Port of Los Angeles will begin collecting its Clean Truck Fund (CTF) Rate to help speed the transition to zero-emissions trucks serving the San Pedro Bay port complex. The action was unanimously approved by the Los Angeles Board of Harbor Commissioners.
Revenues will exclusively fund zero-emissions trucks and associated infrastructure to further the Port’s goal of eliminating emissions from all trucks calling at the Port by 2035. The approved CTF Rate of $10 per twenty-foot equivalent unit (TEU) hauled by non-exempt trucks was jointly set by the ports of Los Angeles and Long Beach in March 2020.
Additionally, to get a head start on funding the deployment of zero emissions trucks, the Port will soon seek proposals from local drayage companies partnering with truck manufacturers to deploy 10 zero-emissions short-haul drayage trucks that call at marine terminals and operate within a short distance (e.g., trucks operating in an approximate 25-miles radius) of the ports. A competitive process will be used to select one team for a $3-million grant toward the grantee’s truck and infrastructure costs.
The Los Angeles Harbor Commission approved the Port tariff’s terms and date for implementing the CTF Rate, and the resolution’s CTF Spending Plan priorities of exclusively zero-emission trucks incentives. The Port tariff sets forth the rates, charges, rules and regulations for doing business at the Port. With a short list of exemptions including cargo transported by zero-emission and low-NOx trucks, the CTF Rate will be charged to cargo owners whose containerized cargo is trucked in or out of Port terminals. The rate will sunset 31 December 2034.
The Port of Los Angeles first set the CTF Rate for planning purposes jointly with the Port of Long Beach in March 2020. The program was developed with industry and community outreach, including public workshops held in August and September.
The rules permanently exempt zero-emission trucks from the Rate, as well as loaded containers entering or leaving marine terminals by on-dock rail. The Port will also exempt trucks that meet or exceed California’s low NOx standard through 31 December 2027. However, the low NOx trucks must be enrolled in the Port Drayage Truck Registry and in Port service by the end of 2022 to obtain the short-term exemption.
The CTF Rate, also due to be implemented by the Port of Long Beach, is expected to initially raise $45 million per port.
Staff will develop zero emission incentive program details, such as the proposed $3-million 10-unit ZE Program, in a more detailed CTF spending plan for future Board approval. The Port is committed to ensuring small businesses and independent truck owner/operators have equal access to the incentives. A Request for Proposal will soon be posted on the Port of Los Angeles’ website to announce a $3-million competitive grant and application process. All incentive programs and awards are subject to Board approval.