Trucking companies serving the Ports of Los Angeles and Long Beach are facing significant challenges in transitioning to zero-emission drayage fleets by 2035, as required by California’s Advanced Clean Fleets (ACF) regulation, according to a new study commissioned by the Los Angeles Business Council. The report outlines steps to facilitate the shift while protecting the economic vitality of the nation’s largest port complex and positioning Southern California as a leader in the growing green commercial transportation industry.
The study, conducted by USC researchers at the METRANS Transportation Consortium, will be discussed at the 18th Annual LABC Sustainability Summit. The researchers identified several obstacles to replacing the nearly 24,000 diesel-powered drayage trucks – used for short-haul cargo trips between ports and distribution centers – over the next decade. These challenges include the high cost of zero-emission vehicles, insufficient electric charging and hydrogen fueling infrastructure, and the financial limitations of small trucking companies.
“There’s a significant gap between the current market and the infrastructure needed to meet the ACF timeline,” the study, titled Navigating California’s Transition to Zero-Emission Drayage Trucks, states. However, if the transition succeeds, California could become a model for addressing both economic and environmental challenges, establishing leadership in emerging green markets.
Researchers analyzed data from the San Pedro Bay Ports truck registry, factoring in cargo growth and differences between battery-electric and diesel trucks. Due to limited data on hydrogen fuel cell trucks, the study focused on a battery-electric transition. The analysis highlighted the urgency of the situation, with 854 trucks needing retirement by 2025 to comply with ACF regulations, a number that will grow quickly. By 2035, the ports will need approximately 31,684 battery-electric trucks to meet compliance, far surpassing the 345 zero-emission trucks currently in operation.
“This study highlights how new the zero-emission drayage market is and the significant work required to meet state guidelines,” said Marlon Boarnet, Director of METRANS and one of the report’s authors.
The San Pedro Bay port complex, a crucial economic hub, supports over 165,000 jobs and generates $21.8 billion in direct business revenue. Drayage, while essential to the supply chain, is also a major source of pollution, making the transition to zero-emission trucks critical for both the economy and public health.
“The stakes are high for both the economy and the health of communities near the ports,” said Mary Leslie, President of the Los Angeles Business Council. “But California has a track record of pioneering sustainability, and this is an opportunity to lead the world in sustainable supply chains.”
The study offers several recommendations to support a timely transition to zero-emission trucks:
- Accelerate electric charging infrastructure development: Streamlining the permitting process is necessary to boost power generation and distribution. The report suggests forming a state coordinating body to monitor infrastructure projects, creating model permits, and possibly exempting zero-emission infrastructure projects from CEQA requirements.
- Expand subsidies for truck purchases: Battery-electric and hydrogen trucks can cost between $400,000 and $600,000, significantly more than diesel trucks. Current subsidies only cover about half the cost, and the report calls for increasing government support to make the transition financially feasible.
- Develop a secondhand zero-emission truck market: Small operators, which account for 72% of local drayage businesses, typically rely on used trucks. The report recommends time-limited incentives and purchase guarantees to help create a secondhand market for zero-emission trucks.
- Invest in hydrogen-powered truck technology: Hydrogen trucks, which have faster refueling times and longer ranges than battery-electric trucks, are still in the early stages of development. The report advocates for increased investment in hydrogen technology and infrastructure to close the gap with battery-electric alternatives.
“The San Pedro Bay ports have led the charge in zero-emission investments, and we’re committed to overhauling the drayage fleet,” said Gene Seroka, Executive Director of the Port of Los Angeles. “Collaboration between the private and public sectors is essential, and I’m encouraged by the progress so far.”
Companies like Forum Mobility are already taking steps to support the transition, building charging depots near ports and along major drayage routes while providing financing options for truck operators to buy or lease new electric trucks. “We’re building a network of safe and secure truck charging depots to make the transition to zero emission easy for fleets of all sizes,” said Neil Brennan, Operations Director at Forum Mobility.