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

The South Coast Air Quality Management District (AQMD) has established cost recovery provisions under a proposed cooperative agreement with the Ports of Long Beach and Los Angeles to recoup reasonable expenses incurred in reviewing and verifying revised draft Port Zero-Emissions Infrastructure Plans, modified versions of those plans, time extension requests, and annual reports. These provisions mandate that the Ports pay AQMD at predetermined hourly rates for these services, with a strict cap of $100,000 per review, ensuring predictable and bounded financial obligations regardless of the actual time spent. The agreement is designed to enable AQMD to offset operational costs associated with fulfilling its regulatory responsibilities under the California Environmental Quality Act (CEQA), specifically leveraging an exemption under Section 15273, which classifies the cost recovery as a permissible charge for rates and fees. The scope of work centers entirely on administrative and technical evaluations at the Ports’ facilities in Los Angeles County, with no external technical standards or performance metrics beyond compliance with the cooperative agreement’s terms. The arrangement is structured as a cooperative agreement rather than a procurement contract, indicating a partnership focused on shared environmental goals rather than traditional acquisition. There is no formal solicitation number or competitive bidding process documented, and the agreement’s effective timeline remains undefined beyond a public notice dated November 7, 2025, which may reflect the approval or filing date rather than a binding performance period. Payment mechanisms, invoicing systems, accounting codes, and delivery logistics are not specified, and no formal contracting officer or technical representative designations are provided, though administrative contacts are listed for program coordination. The financial terms are the central and only contractual obligation, with no additional special requirements such as security clearances, conflict of interest provisions, or option clauses. The Ports are responsible for submitting deliverables, and AQMD conducts all reviews, but formal inspection and acceptance procedures are not delineated. No socioeconomic status, entity identifiers, or certification data are included, and the agreement operates within the state regulatory framework without federal acquisition regulation clauses or standardized formatting requirements.