Overview of the Scheduled California Port Container Fees, Etc.
Over the next several months, the Ports of Los Angeles and Long Beach are scheduled to implement: (1) a Clean Trucks fee (CTF) to help fund the retrofitting/replacement of trucks under their Clean Trucks Program, and (2) an Infrastructure Cargo Fee (ICF) to fund certain transportation infrastructure projects.
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There is also a third potential container fee for the Ports of Los Angeles, Long Beach, and Oakland, that has not yet been enacted by the state of California (and is not part of the CTP or ICF).
(See ITT's Online Archives or 09/15/08 news, 08091500 and 08091503, for BP summaries of a new FMC information request on the CTP, and a MTO letter requesting that the LA/LB CTP fee be delayed.)
LA/LB Clean Trucks Fee Scheduled to Begin October 1, 2008
On October 1, 2008, the Ports of Los Angeles and Long Beach are scheduled to implement a CTF of $35 per loaded TEU on containers that move through the terminals (cargo moved via on-dock rail is not included).
Exemptions from CTF. Certain diesel trucks with newer engines, as well as certain alternative fuel trucks may be exempt from the CTF (depending on the port). Details on such exemptions are available in a CTF Exemption Sheet prepared by the Ports' Clean Truck Center.
MTOs developing PortCheck to collect CTF. In order to collect the CTF, Marine Terminal Operators are developing a new organization called PortCheck. PortCheck will develop the system that will be used by MTOs to both collect and remit the CTF to the ports.
The system will automatically ascertain the age of the truck, whether it is operating under a valid concession, and what fee may be owed for the gate move. The system will determine whether the truck can have access to the terminal, and it will bill the CTF to the responsible party. All who claim cargo at the Ports of Los Angeles and Long Beach will be required to register with PortCheck.
See ITT's Online Archives or 09/15/08 news, 08091503, for BP summary of an MTO association letter asking for a delay in the implementation of the CTP.
LA/LB Infrastructure Cargo Fee Scheduled to Begin January 1, 2009
Beginning January 1, 2009 at 8:00 a.m. (local time), the Ports of Long Beach and Los Angeles are scheduled to begin assessing an ICF of $15 per loaded TEU cargo container entering or leaving any terminal by truck or train. Funding from the fee will be used for bridge, railway, and road improvements used in port-related goods movement.
Port of Los Angeles and Long Beach documents have previously stated that (1) the ICF would be imposed on both the import and export of containerized merchandise, excluding empty containers, (2) would be charged to the cargo owners, (3) would only be imposed once on each loaded container, and (4) if a container moves between terminals, the first terminal to handle the container would assess the fee.
According to those documents, the estimated total fee would be $15 per loaded TEU in 2009. Based on the current schedules of the projects, the fee would be $18 in 2010 and 2011. As projects are completed, the fee could be reduced to $14 in 2012 through 2014 and to $10 in 2015. Note that the ports may adjust the ICF rate based on a review of project schedules, public funding availability, anticipated expenditures, and the ICF fund balance.
CA Senate/Assembly-Passed Bill on New Container Fee for LA, LB, Oakland Ports
On July 15, 2008 and August 5, 2008, respectively, the California Assembly and Senate passed SB 974 (commonly referred to as the Lowenthal bill) to assess a new container fee for the Ports of Los Angeles, Long Beach, and Oakland, in order to collect funds and provide certain congestion relief and air pollution mitigation.
(If enacted, SB 974 would require the Ports of Los Angeles, Long Beach, and Oakland to assess a user fee on the owner of container cargo moving through these ports at a rate not to exceed $30 per TEU, beginning July 1, 2009.)
Although passed by both the California Assembly and Senate, SB 974 has not yet been enacted into law. Governor Schwarzenegger has announced that until the California legislature passes a budget that he can sign, he will veto any bill that reaches his desk.
Sources note that once SB 974 is presented to the Governor, a veto is the only way to prevent it from becoming law (i.e., once presented, the bill would become law if the Governor either signs the bill or takes no action by September 30, 2008).
(See ITT's Online Archives or 01/16/08 news, 08011605, for BP summary of the approval of the ICF by the Ports of LA and LB.
See ITT's Online Archives or 08/07/08 news, 08080705, for BP summary of passage of SB 974 by the California Senate.
See ITT's Online Archives or 03/24/08 news, 08032405, for BP summary of LA's approval of the key elements of the CTP.
See ITT's Online Archives or 05/23/08 news, 08052315, for BP summary of LA approving its Clean Truck Accession Agreement.
See ITT's Online Archives or 06/09/08 news, 08060915, for BP summary of LB approving its Clean Truck Concession Agreement.)
Port of Long Beach information on the CTF and ICF available at http://www.polb.com/.
Port of Los Angeles information on the CTF and ICF available at http://www.portoflosangeles.org/environment/caap.asp.
ATA press release on its appeal of the recent denial of a preliminary injunction (dated 09/10/08) available at http://www.truckline.com/NR/exeres/127155D6-18F2-40BB-B1F3-7B673E316089.htm.
Senator Lowenthal's press release on SB 974 (dated 08/05/08) available at http://dist27.casen.govoffice.com/vertical/Sites/%7B1FA4E4FF-6592-4C73-B509-0BBDD48984CA%7D/uploads/%7BD5F0B0CE-6F3B-4AA0-AC07-D40A8A1C5F7A%7D.PDF.