L.A. Long Beach ports collecting new fee

Published March 2, 2009

ATA, FMC still fight aspects of ports’ arrangements

The Port of Los Angeles and Port of Long Beach on Feb. 18 began collecting the Clean Truck Fee at its marine container terminals. The ports established the CTF to help fund the implementation of the Clean Trucks Program, which aims to remove thousands of older diesel trucks from the fleet serving the ports. Cargo owners must pay a CTF for cargo moved by trucks that do not meet the requirements of the CTP. Cargo contained in a 20-foot container will be subject to a $35 CTF, while cargo moved in containers larger than 20 feet will be required to pay a $70 CTF. Trucks equipped with 2007 and newer diesel engines are exempt from the fees.

Last year, the West Coast Marine Terminal Operator Agreement created a not-for-profit company, PortCheck, to collect the fees for the ports. The money collected will be transferred to the ports to provide financial assistance for the replacement of thousands of trucks during the next several years. Under the CTP, the cargo owner is responsible for paying the fee, which must be paid before a container can enter or leave a terminal.

Beginning Oct. 1, 2008, the ports banned the most polluting trucks – 1988 and older rigs – in the first phase of the CTP. On Jan. 1, 2010, the ports will ban 1993 and older trucks, as well as unretrofitted model year 1994 to 2003 trucks. By January 2012, all 2006-model year and older trucks will be banned from entering port container terminals.

In addition, the Port of Los Angeles already had proceeded with efforts to encourage truck operators to purchase new current-emissions trucks. More than 100 companies have applied to receive $20,000 for each qualifying truck they had put into service at the port by Jan. 15. As a result of initial funding, the Port of Los Angeles says it now has about 3,000 clean trucks in service.

The Federal Maritime Commission currently is pursuing an injunction under section 6 of the Shipping Act against certain aspects of the CTP in the U.S. District Court for the District of Columbia. FMC has determined the CTP is likely, by a reduction in competition, to result in an unreasonable reduction in transportation services and an unreasonable increase in transportation cost. But last month, FMC determined that it was unnecessary to also try to block the PortCheck operation, clearing the way for the ports to begin collecting fees.

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Meanwhile, the American Trucking Associations continues to challenge before the U.S. Court of Appeals for the Ninth Circuit the ports’ requirement that motor carriers sign concessionaire agreements. ATA argues that the concessions would impose a broad range of operational requirements that recreate a regulatory environment comparable to state intrastate economic regulation, which is federally preempted. The association says it is especially troubled by the Port of Los Angeles’ plan to ban independent contractors within five years.

Stimulus act offers retrofit funds, tax breaks
In addition to $27.5 billion in funding for highway construction, the new $787 billion economic stimulus act includes some measures that motor carriers may find useful. The act, signed into law by President Obama on Feb. 17, provides $300 million for diesel emissions reduction grants. The grants would be awarded under a program established by the Energy Policy Act of 2005 with the principal goal of reducing diesel emissions exposure from fleets operating in areas designated by the U.S. Environmental Protection Agency as poor air quality areas.

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