Port of Los Angeles Recommits to $240M Zero Emissions Truck Funding Plan

June 3, 2025
The fund is generated by charging $10 for every loaded 20-foot equivalent loaded unit (TEU) hauled through the port by conventional or fossil-fueled drayage trucks, which mostly run on diesel. The CTF has raised more than $120 million in last three years and expects to match that pace.

Developers of clean energy projects across the U.S. which utilize government funding and incentives are feeling imperiled by the cuts announced by the Trump White House and Department of Energy in the past few months.

However, one large, local and yet globally connected decarbonization project in southern California is standing behind its on-site tax and incentive structure to raise about $240 million for incentivizing fleet electrification and cleaner transportation emissions for the long term.

The Port of Los Angeles, one of the busiest import-export posts in the world, is reaffirming its near-term clean truck spending plan designed to transition its drayage fleet to zero-emissions (ZE) models by 2035. Port Funding for cleaner emission vehicles will derive from the Clean Truck Fund (CTF).

"The Clean Truck Fund is a short-term strategy to maximize results," said Port Executive Director Gene Seroka in a statement. "This money puts more ZE trucks in Port service faster by lowering the cost of purchasing them while ensuring the charging and fueling infrastructure is there to keep them moving."

The fund is generated by charging $10 for every loaded 20-foot equivalent loaded unit (TEU) hauled through the port by conventional or fossil-fueled drayage trucks. Most are diesel, but cargo owners who use ZE trucks are permanently exempt from the CTF rate.

"Our Clean Truck Program is essential to our larger efforts to eliminate pollution from all sources involved in our operations," said Harbor Commission President Lucille Roybal-Allard. "Current and future generations deserve nothing less."

The Port of Los Angeles, which has undertaken a long-term decarbonization plan including microgrids, energy efficiency and fleet electrification, has collected close to $123 million in CTF revenues since April 2022, and used the fund to help operators purchase ZE trucks as well as supporting infrastructure such as charging stations. It expects to raise another $120 million from CTF charges over the next three years.

Currently, a Class 8 long-haul battery-electric truck can cost about $420,000, while hydrogen fuel cell vehicles average $750,000, according to the port statement. The CTF incentives coupled with other funding such as the California Air Resources Board can help cover as much as 90% of the cost of a ZE truck, according to the report.

Neary 550 ZE trucks are now in service at the Ports of Los Angeles and Long Beach. A majority of those ZEs were purchased with help of CTF vouchers and other incentives, the port says.

The ports of Los Angeles and Long Beach also have explored on-site power and microgrid projects to decarbonize operations.

The Port of Los Angeles moves more than 180 million metric tons of cargo annually across its 25 terminals at San Pedro Bay. In April, the port handled more than 842,000 20-foot equivalent units, nearly 10% higher than the same month in 2024.

“We’ve had nearly two years of robust volume, including 10 straight months of year-over-year growth,” Seroka said in a media briefing announcing the expanding cargo volumes. “A strong economy and high consumer confidence propelled that growth early on, while more recently it’s been the push by importers to bring cargo in ahead of today’s tariffs.

The Global Battery Storage Race is On

Read more with this free EnergyTech E-Book