LABC Study: Urgent Government, Industry Coordination Needed to Meet 2035 Deadline for Transition to Zero-Emission Drayage Trucks at San Pedro Bay Ports
USC researchers quantify the future fleet size and timeline to comply with state regulations; identify opportunities to create leading green transport market in SoCal
LOS ANGELES–(BUSINESS WIRE)–Trucking companies serving the Ports of Los Angeles and Long Beach face significant challenges achieving zero-emission drayage fleets by 2035 in compliance with California’s Advanced Clean Fleets (ACF) regulation, according to a new study commissioned by the Los Angeles Business Council. The study recommends steps to facilitate the transition to safeguard the economic vitality of the country’s largest port complex and establish Southern California as a leader in the emerging multibillion-dollar green commercial transportation industry.
The report from USC researchers at the METRANS Transportation Consortium will be discussed at the 18th Annual LABC Sustainability Summit, attended by top business, government, and nonprofit leaders. The researchers found several hurdles to replacing the current fleet of nearly 24,000 diesel powered drayage trucks – which carry cargo on short-haul trips between ports and distribution hubs – within 10 years. These include the high cost of zero-emission vehicles, the lack of electric charging and hydrogen fueling stations, and the prevalence of small trucking companies without the financial means to make the conversion.
“There remains a significant gap between the current market and the infrastructure needed to comply with the ACF timeline,” said the study, Navigating California’s Transition to Zero-Emission Drayage Trucks. “However, if the transition is successfully implemented, the state can become the model for how to navigate a critical economic and environmental challenge, asserting its leadership in creating new green markets.”
The researchers modeled the transition to a 100% zero-emission fleet by analyzing data from the San Pedro Bay Ports truck registry, accounting for cargo growth and differences between battery-electric and diesel trucks in range, fueling time and weight. The model assumed a transition to all battery-electric trucks, due to insufficient data on the hydrogen fuel cell market. The researchers also interviewed a range of stakeholders.
Underscoring the urgency of the challenge, the analysis indicated that 854 trucks – over 3% of the drayage fleet – would have to be retired in 2025, based on mileage and age limits set by ACF regulations. Those numbers then rise quickly, adding pressure to phase in zero-emission trucks to keep pace with cargo volumes. Only 345 zero-emission trucks were in service at the Ports of Los Angeles and Long Beach in June 2024. The study’s mid-range estimate shows the ports would need 31,684 battery-electric trucks by 2035 to be compliant.
“This study quantifies just how new the zero-emission drayage market is, and how much work will need to be done in order to bring this important economic sector into compliance with state guidelines,” said Marlon Boarnet, Director of METRANS and one of the report’s authors.
The San Pedro Bay port complex is a vital economic engine in the region, supporting over 165,000 jobs and generating $21.8 billion of direct business revenue to local service providers. Drayage is an essential link in the supply chain but also a major source of pollution.
“The stakes couldn’t be higher for the health of our economy and the health of communities near the ports and along transit corridors,” said Mary Leslie, President of the Los Angeles Business Council. “However, California has an extensive history of pioneering ambitious sustainability initiatives, and we see an immense opportunity for California to become a global leader in the sustainable supply chain.”
The report outlines several recommendations to support the timely transition to zero-emission trucks. Among them:
- Accelerate the development of electric charging infrastructure. Streamlining the permitting process will be necessary to boost electrical power generation and distribution. Interviewees said it currently can take five years or longer for substation upgrades and two years for municipal permits to install electric charging depots. The report recommends creating a state coordinating body to track projects and permits and advise on infrastructure gaps, creating model municipal permits, and considering exempting zero-emission transport infrastructure projects from CEQA to support the rapid buildout of infrastructure required.
- Expand subsidies to cover steep truck prices. New battery-electric or hydrogen-fuel-cell trucks can cost between $400,000 – $600,000, up to four times the price of new diesel trucks and five times that of used diesel trucks – which are typically used by small drayage firms. Current federal and state subsidies reduce the cost only by half. The report recommends increasing government subsidies to support firms until technological advances and market growth help drive down prices.
- Support the development of a secondhand zero-emission truck market. Small operators with up to 20 trucks account for 72% of local drayage businesses. Those firms typically purchase and operate used (secondhand) trucks. The report recommends that California prime the development of a secondhand market through various time-limited incentives, such as purchase guarantees, subsidies or even a waiver of restrictions to allow small firms to buy existing diesel trucks that haven’t reached their age and mileage limits.
- Increase investment in hydrogen-powered truck technology and fueling infrastructure. Hydrogen trucks do not have many of the operational constraints of their battery-electric counterparts, due to faster fueling and longer range. The report recommends building on recent federal investments to catalyze the growth of hydrogen technology, which is preferable for many trucking firms if properly supported yet several years behind the battery electric market. In the past two months alone, California was awarded $102.4 million for its plan to deploy charging and hydrogen fueling stations for trucks along key freight corridors and nearly $500 million to provide incentives to Southern California businesses purchasing battery-electric cargo trucks, among other commercial vehicles.
“The San Pedro Bay ports have been on the leading edge of investing in the transition to zero-emission operations, a role that strengthens our resolve to accomplish the tallest task we’ve ever faced: Overhauling the drayage fleet,” said Gene Seroka, Executive Director of the Port of Los Angeles. “It’s all about bringing people to the table, making sure the private and public sectors have a voice and work together. I’m very encouraged by the folks who have been participating thus far.”
Businesses like Forum Mobility have begun building charging depots near ports and along major drayage routes while also arranging financing to enable truck operators, especially small companies, to buy or lease new electric trucks. “Forum Mobility is building a network of safe and secure truck charging depots, from ports to freight destinations. We make it easy for fleets large and small to make the transition to zero emission,” said Neil Brennan, the company’s operations director.
To read the full report, visit labusinesscouncil.org.
About the Los Angeles Business Council Institute
The LABC Institute is a forward-thinking research and education organization dedicated to strengthening the sustainable economy of California. Founded in 2010, the Institute provides a bridge between the business, government, environmental, labor and nonprofit communities of Southern California to develop policies and programs that promote investment, jobs and business development. The Institute is the research and education arm of the Los Angeles Business Council, one of the most respected business advocacy organizations in the region. Founded in 1936, the LABC is known as an innovator and catalyst for policy development on a wide range of issues, including education, housing, green building, energy efficiency, transportation and solar development. For more information, please visit labusinesscouncil.org.
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