The Cooperative Agreement between the South Coast Air Quality
Management District (AQMD), Port of Los Angeles, and Port of Long Beach was signed and executed by the parties in December
2025 and is effective through December 31, 2030. The Cooperative Agreement sets forth the requirements for implementation
of Clean Air Action Plan (CAAP) Plus Measures through a three-phase process and schedule for the preparation and completion
of zero-emission infrastructure plans for cargo-handling equipment, switcher locomotives, drayage trucks, and ocean-going
vessels, with provisions for transparency and accountability with enforcement penalties if the ports do not adhere to the
identified schedules and requirements. The Cooperative Agreement Addendum adds new CAAP Plus measures to provide
incentives for the use of cleaner ocean-going vessels and drayage trucks and a mechanism to fund regional off-port truck
charging and fueling infrastructure. Development of the Enhanced Clean Ship Incentive Program would enhance the existing
Green Ship Incentive Program to increase program participation with potential CAAP plus-up incentives for the cleanest
vessels, involving collection of information regarding the description of ocean-going vessels that typically call at the port,
annual visits by vessel type, engine tier level and fuel type, current participation levels, and a comparison of vessels that
participate in the current Green Ship Incentive Program, and those that do not participate by vessel type, engine tier, and fuel
type, as well as the participation goals anticipated for the Enhanced Clean Ship Incentive Program based on available
information known at the time of the programs development. The program is to be approved no later than 12 months after
approval of the update to the International Association of Ports and Harbors Environmental Ship Index Program. Each port
would evaluate and develop a Zero-Emission Truck Utilization Incentive Program to be funded by the Ports established Clean
Truck Fund Rate to encourage the use of zero-emission trucks serving the ports involving development of the general
guidelines, incentive amounts, and mechanism of providing the incentive to participating truck fleets, with justification for the
incentive approach describing the consideration and factors taken into account to develop the program concept, which may
include port policies and goals, findings from technical studies, stakeholder outreach, software and hardware requirements,
and operational and financial considerations. The program shall also include anticipated participation goals, based on the
available information known at the time of concept development; justification for the participation goals (with understanding
that the participation goals are outside the control of the ports); anticipated program benefits; and metrics for tracking and
reporting of clean air benefits. The Zero-Emission Truck Utilization Incentive Program is to be approved no later than February
28, 2027. The details and anticipated cost for the Enhanced Clean Ships Incentive Program and Zero-Emission Truck Utilization Incentive will be defined through a public process and considered for approval by the Board of Harbor Commissioners. The Regional Off-Port Truck Charging and Fueling Infrastructure CAAP Plus Measure would allocate $20 million to the South Coast
AQMD to fund development of zero-emission infrastructure for drayage trucks outside of the ports. A memorandum of
understanding to transfer the funds is required to be approved and entered into no later than February 28, 2027. The
Cooperative Agreement Addendum also defines the South Coast AQMDs role, the ports commitment to a public process,
involving release of draft materials for a period of at least 45 days for review and comment by the South Coast AQMD, one
public meeting to highlight key elements of the draft, and preparation of written responses to all comments received. If a port
defaults on the terms of the Cooperative Agreement Addendum by missing a deadline or failing to adhere to the public process,
the port will be subject to payment into a Clean Air Mitigation Fund in the amount of $50,000 and up to $100,000, depending
on the nature of the default. The Clean Air Mitigation Fund will be managed by the South Coast AQMD for disbursement to
projects within the Tidelands Trust area. The Cooperative Agreement Addendum also requires annual reporting by the ports
on progress of the incentive and funding programs during the 5-year term of the agreement. To support emissions reductions
from port operations, the preamble to the Cooperative Agreement Addendum identifies the concurrent activities that the
ports will conduct through a public process through the term of the original Cooperative Agreement. These activities would
consist of the development and implementation of a clean marine fuel assessment, a solicitation for a clean marine fuel pilot
project, a technical study on vessel emissions at low-speed operations, preparation of a clean truck rate spending plan, and
projection for zero-emission cargo-handling equipment deployments.
