Clean Truck Fee - Updated September 15, 2009

What's New (September 15, 2009)
Staff for both the ports of L.A and Long Beach and PortCheck announced that, beginning November 1, 2009, beneficial cargo owners moving freight by way of on-dock rail and compliant clean trucks will no longer need to claim cargo through PortCheck and pay the $70/FEU Clean Truck Fee. Port officials stated that the overwhelming success of the Clean Trucks Program in both ports necessitated the changes to ease compliance for shippers. In a statement by both ports, over 60% of cargo transiting L.A. and Long Beach marine terminals moved by way of a clean compliant truck while over 80% of cargo moved by way of either clean truck or on-dock rail.

Click here to read more about the planned changes to the PortCheck program

Background
Both the Long Beach and L.A. Harbor Commissions approved amendments to their tariff imposing a $70 container (FEU) fee on all loaded containers moving through San Pedro bay container terminals. Fee revenue will be deposited into a special account to pay for a fleet of new clean burning harbor trucks. Along with the fee, both harbor commissions approved amendments to their tariffs creating concession programs requiring all harbor truckers to apply for a permit to operate in the port complex.

While the L.A. and Long Beach plans are similar, they are not identical. Below you will find a brief summary of the fee

Digest of the Fee
Beginning February 18, 2009 all beneficial cargo owners (BCOs) moving containerized freight through L.A. and Long Beach marine terminals will be assessed $70 per FEU. Marine Terminal Operators are to collect the fee and deposit revenue into a special account used to pay for a fleet of clean burning harbor trucks. The fee will sunset when 100% of the estimated 16,000 harbor trucks calling the port meet 2007 US EPA emissions standards. This includes clean burning model year 2007 diesel engines or approved alternative fuel engines. Both ports and PortCheck recently announced that, as of November 1, 2009, beneficial cargo owners will no longer need to claim cargo scheduled to move by clean compliant truck or by on-dock rail.

Additionally, the fee will not be levied on empty containers. Bulk, project and other non-containerized cargoes moving by truck through the ports will not be assessed the fee.

Additionally, as of October 1, 2008, all model year 1998 and older trucks will be banned from entering marine terminals.

Exemptions
Both ports have agreed to certain exemptions on the type of new truck purchased and the mix of financing.

Los Angeles: All privately funded model year 2007 diesel and alternative fuel (such as LNG) trucks are exempt from the fee. New alternative fuel trucks funded with a mix of public and private funds will be exempt from the fee. The exemption DOES NOT apply to 2007 model year diesel trucks funded in any part with public funds.

Long Beach: All privately funded model year 2007 diesel and alternative fuel (such as LNG) trucks are exempt from the fee. New alternative fuel trucks funded with a mix of public and private funds will be exempt from the fee. BCOs moving cargo using 100% privately funded 2007 model year diesel trucks will be assessed one-half of the fee ($35 per FEU). Additionally, any diesel or LNG truck funded with any mix of private and public funds that was brought into service before October 1, 2008 will be "grandfathered in" and will not be assessed the full fee.

Collection of the Fee - Port Check, Llc

Marine terminal operators created a not-for-profit entity called Port Check to manage the payment process for the Clean Truck Fee. First, Port Check will receive data on the age of each truck entering marine terminals. The truck registry would be able to ascertain if the truck is either banned, subject to the Clean Truck Fee, or exempt. The data would be transmitted at the terminal gate by RFID tags currently issued to all truckers.

Beneficial cargo owners, or intermediaries operating on their behalf, would need to register with Port Check and establish credit terms much like the process that exists for PierPass. Those already registered with PierPass would not need to register again with Port Check. PierPass will hand over this information to Port Check. Despite language in both ports' tariff amendments regarding payment of the Clean Truck Fee, shippers and intermediaries may pay the fee on behalf of a beneficial cargo owner.

Also, those cargo owners that do not need to register with PierPass will need to register with Port Check. This includes intermodal shippers that may have containers drayed to near dock rail yards. Representatives of PortCheck urge all BCOs and shippers to register today for Port Check through PierPass. You may register on-line at www.http://pierpass.org/

Stay tuned for further notices by checking this page

More Information

Click here to get the details form the Port of Los Angeles' Clean Truck Center
Click here to get the detail from the Port of Long Beach's Clean Truck Center
Click here to visit PortCheck

Click here to read the Waterfront Coalition's Letter on the Clean Truck Fee
Click here to download the tariff amendment
Click here for the Port of Long Beach Staff Report on the Clean Truck Fee
Click here for the Fact Sheet from the Port of Long Beach

Click here to read more about the Clean Air Action Plan for trucking
Click here to find out how you can participate in the Coalition for Respsonsible Transportation