Cost Recovery Provision in the Proposed Addendum to the Cooperative Agreement Between the South Coast AQMD and the Ports of Long Beach and Los Angeles

The South Coast Air Quality Management District (SCAQMD) will manage a $40 million funding commitment from the Ports of Long Beach and Los Angeles to develop regional off-port zero-emission truck charging and fueling infrastructure supporting drayage trucks registered in the Ports Drayage Truck Registry. Each port is required to contribute $20 million, with SCAQMD responsible for administering, distributing, and monitoring the use of these funds to ensure alignment with regional air quality goals. A Memorandum of Understanding (MOU) between SCAQMD and each port must be executed, containing defined elements including recitals, transparent project selection criteria, procedures for handling uncommitted funds, mandatory reporting, public engagement processes, and a specified term for the agreement. SCAQMD is permitted to recover up to 10 percent of the total project cost as an administrative fee to cover fund management and oversight expenses, ensuring operational sustainability without exceeding this cap. The infrastructure projects must be located within the South Coast Air Basin, encompassing Los Angeles, Orange, Riverside, and San Bernardino counties, with SCAQMD based in Diamond Bar, California, serving as the central administrative entity. There is no formal solicitation number or standard federal contract type; the arrangement is structured as a cooperative agreement addendum with no referenced FAR clauses, procurement evaluation factors, or traditional contracting elements such as CLINs, delivery schedules, or inspection protocols. The initiative is grounded in environmental compliance under CEQA Guidelines Section 15273 and aims to accelerate the deployment of zero-emission logistics infrastructure in support of regional air quality improvement objectives.