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

The cost recovery provisions in the proposed Cooperative Agreement between the South Coast Air Quality Management District (AQMD) and the Ports of Long Beach and Los Angeles establish a framework for the AQMD to recover reasonable expenses incurred during the oversight of port infrastructure initiatives. Specifically, the Ports will provide payments to cover the costs associated with the review and verification of revised draft Port Zero-Emissions Infrastructure Plans, draft modified plans, time extension requests, and annual reports. These provisions are designed to enable the South Coast AQMD to meet its operating expenses and financial reserve needs while executing the requirements and terms of the Cooperative Agreement. The payment structure is based on hourly rates for the review and verification of each specified document or request, with a strict payment cap of $100,000 per review. This agreement was approved during a South Coast AQMD Governing Board Public Hearing on November 7, 2025. Additionally, the provisions have been determined to be statutorily exempt from the California Environmental Quality Act (CEQA) under Section 15273, which pertains to rates, tolls, fares, and charges. The performance of these activities is centered within the jurisdiction of the South Coast AQMD, specifically involving the Ports of Long Beach and Los Angeles located in Los Angeles County.