Case study: Freight & logistics decarbonization — a city or utility pilot and the results so far

The Port of Los Angeles and Port of Long Beach, together handling roughly 40% of all US containerized imports, launched the Clean Truck Fund and subsequent Clean Air Action Plan updates that have reduced diesel particulate matter from port-related freight operations by 87% since 2005, while simultaneously cutting nitrogen oxide emissions by 56% (Port of Los Angeles, 2025). As of early 2026, the twin ports have deployed over 120 zero-emission drayage trucks, installed 58 truck charging stations across terminal areas, and committed $1.6 billion in combined public and private investment toward a fully zero-emission freight corridor by 2035. This case study examines how the San Pedro Bay ports evolved from a localized air quality initiative into one of the most closely watched urban freight decarbonization pilots in the world.

Why It Matters

Freight transportation accounts for approximately 29% of US transportation-sector greenhouse gas emissions, despite representing only 10% of the vehicle fleet. The EPA's 2024 Greenhouse Gas Inventory attributes 475 million metric tons of CO2 equivalent annually to medium- and heavy-duty trucks, rail, and marine freight combined (EPA, 2024). Urban freight, the last-mile and drayage segments operating in densely populated areas, carries disproportionate health consequences: communities within one mile of major freight corridors experience asthma hospitalization rates 2 to 3 times the regional average.

The regulatory landscape has shifted dramatically. California's Advanced Clean Fleets regulation, effective January 2024, requires large fleet operators to begin transitioning to zero-emission vehicles (ZEVs) with full compliance by 2042. The EPA's Phase 3 greenhouse gas standards for heavy-duty vehicles, finalized in March 2024, set emissions limits that effectively require 25% of new long-haul tractor sales to be zero-emission by 2032. Federal incentives under the Inflation Reduction Act provide up to $40,000 per qualifying commercial clean vehicle through the 45W tax credit. For procurement officers and fleet managers, the question is no longer whether to decarbonize freight operations but how to sequence investments effectively.

Key Concepts

Understanding the San Pedro Bay pilot requires familiarity with several technical and regulatory concepts that shape freight decarbonization programs.

Drayage trucking refers to short-haul freight movement, typically within a 50-mile radius, connecting ports, rail terminals, and distribution centers. Drayage trucks make 30,000 to 40,000 daily trips at the LA/Long Beach port complex, and their short, predictable routes make them strong candidates for battery-electric conversion.

Clean Truck Fund mechanism: The original 2008 program imposed a $35-per-TEU (twenty-foot equivalent unit) fee on cargo containers, generating approximately $90 million annually. This revenue funded a truck replacement incentive program that retired pre-2007 diesel trucks and subsidized purchases of newer, cleaner vehicles. The fee structure was later restructured after legal challenges, but the funding model established a precedent for cargo-based sustainability levies.

Zero-emission infrastructure zones: The ports designated specific terminal areas where only zero-emission equipment can operate, creating geographic forcing functions for technology adoption. This zone-based approach allows incremental expansion as charging infrastructure scales.

Vehicle-to-grid integration: Several pilot trucks are equipped with bidirectional charging capability, enabling parked drayage trucks to return stored energy to the port's microgrid during peak demand periods, creating a secondary revenue stream for fleet operators.

What's Working

The San Pedro Bay ports pilot has produced measurable results across several dimensions that other jurisdictions are studying carefully.

Emissions Reductions Exceed Projections

The initial Clean Air Action Plan projected a 50% reduction in port-related diesel particulate matter by 2020. Actual performance exceeded that target by 37 percentage points, reaching the 87% reduction noted above. NOx reductions of 56% similarly outperformed the 45% target. The current zero-emission vehicle deployment phase, which began in earnest in 2021 with 10 battery-electric Class 8 trucks, has expanded to 120 trucks operating regular drayage routes as of Q4 2025. These ZEV drayage trucks have collectively logged over 4.2 million miles, displacing an estimated 8,400 metric tons of CO2 and eliminating 12 tons of PM2.5 emissions (Port of Long Beach, 2025).

Total Cost of Ownership Is Approaching Parity

Early battery-electric drayage trucks carried purchase prices of $400,000 to $500,000, roughly 2.5 times the cost of a comparable diesel tractor. With California's HVIP (Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project) subsidies of up to $120,000 per truck and federal 45W credits of $40,000, the effective acquisition cost has dropped to $240,000 to $340,000. More critically, operating cost data from the first 18 months of the electric drayage fleet shows fuel-equivalent costs of $0.42 per mile versus $0.78 per mile for diesel, and maintenance costs of $0.08 per mile versus $0.22 per mile for diesel trucks. NFI Industries, one of the largest third-party logistics providers participating in the pilot, reported that its electric drayage fleet achieved total cost of ownership parity with diesel at approximately 85,000 annual miles per truck, a threshold that 70% of its drayage fleet exceeds (NFI Industries, 2025).

Workforce Development Is Integrated

The ports partnered with Los Angeles Trade-Technical College and the International Brotherhood of Electrical Workers (IBEW) Local 11 to create a ZEV maintenance technician certification program. As of 2025, 340 technicians have completed the 16-week program, which covers high-voltage battery systems, electric drivetrain diagnostics, and charging infrastructure maintenance. The program was funded through a $14 million grant from the California Workforce Development Board, and graduates command starting wages of $32 to $38 per hour, roughly 15% above comparable diesel mechanic positions.

Community Health Improvements Are Measurable

The South Coast Air Quality Management District's monitoring stations in Wilmington and West Long Beach, communities adjacent to the port complex, recorded a 34% decline in ultrafine particle concentrations between 2019 and 2025. The Long Beach Department of Health and Human Services documented a 22% reduction in pediatric asthma emergency room visits in the 90810 ZIP code over the same period. While multiple factors contribute to these improvements, epidemiological modeling attributes approximately 40% of the reduction to decreased freight-related diesel emissions (South Coast AQMD, 2025).

What's Not Working

Despite significant progress, the pilot has encountered persistent obstacles that constrain scaling and replication.

Charging Infrastructure Lags Deployment

The 58 installed truck charging stations support the current fleet of 120 ZEV drayage trucks, but the port complex needs an estimated 350 to 400 charging points to support the planned 2028 fleet of 800 ZEV trucks. Utility interconnection timelines remain the primary bottleneck: Southern California Edison reports average lead times of 18 to 24 months for the distribution-level upgrades required to deliver 5 to 10 MW of new load to terminal charging sites. Grid capacity constraints at several terminals mean that planned depot charging facilities cannot be energized until substation upgrades are completed, pushing some deployments to 2028 or beyond.

Duty Cycle Limitations Persist

Battery-electric trucks in the pilot fleet carry 250 to 350 kWh battery packs providing 150 to 200 miles of range under loaded conditions. While this range covers 85 to 90% of drayage routes, approximately 10 to 15% of daily assignments require round trips exceeding 180 miles, creating operational gaps that force dispatchers to maintain parallel diesel capacity. Opportunity charging during loading and unloading partially addresses this issue, but terminal operators have been slow to install charging equipment at container yard positions, citing space constraints and capital prioritization conflicts.

Small Fleet Operators Face Disproportionate Barriers

The drayage trucking sector serving the San Pedro Bay ports includes approximately 900 trucking companies, of which 70% operate 10 or fewer trucks. These small operators, often owner-operators or family-owned businesses, lack the credit profiles to finance electric truck purchases even with available subsidies. The Clean Truck Fund's incentive structure favors larger fleets that can aggregate orders and negotiate volume pricing with manufacturers. As of 2025, 85% of ZEV drayage truck deployments have been concentrated among the 15 largest fleet operators, raising equity concerns about whether smaller operators will be displaced rather than transitioned.

Resale Value Uncertainty Depresses Financing

The used truck market for battery-electric Class 8 vehicles remains thin, making residual value estimation difficult. Lenders typically require 20 to 30% down payments on electric truck loans, compared to 10 to 15% for diesel equivalents, because the absence of resale value data increases perceived credit risk. Several pilot participants have reported that financing terms, not purchase price, are the binding constraint on fleet expansion.

Key Players

Established Companies

• Daimler Truck North America (DTNA): Supplies the Freightliner eCascadia, the most widely deployed battery-electric Class 8 truck in the pilot, with 68 units operating as of Q4 2025.
• Southern California Edison (SCE): The primary electric utility serving the port complex, responsible for grid upgrades and rate design for commercial EV charging.
• NFI Industries: The largest third-party logistics provider participating in the pilot, operating 35 electric drayage trucks with plans to reach 100 by 2027.
• Schneider National: Deployed 20 eCascadia trucks at its Southern California terminal, contributing operational data on long-distance drayage use cases.
• PACCAR: Supplies Peterbilt 579EV tractors to multiple pilot participants, with 32 units in active drayage service.

Startups

• WattEV: Operates a truck-as-a-service model at the Port of Long Beach, providing electric trucks to independent owner-operators on per-mile pricing rather than requiring capital purchases. WattEV's Solar-Powered Truck Stop in Bakersfield provides megawatt-scale charging along the I-5 corridor.
• Forum Mobility: Developing a network of electric truck charging depots adjacent to port terminals, with 3 facilities operational as of early 2026 and 8 more in permitting.
• Harbinger Motors: Building a medium-duty electric chassis platform targeting the last-mile delivery segment that feeds into the broader port logistics ecosystem.

Investors and Funders

• California Air Resources Board (CARB): Provides HVIP voucher funding and regulatory framework through the Advanced Clean Fleets rule.
• US Department of Energy: Awarded $200 million through the Clean Ports Program to the San Pedro Bay ports for infrastructure and vehicle deployment.
• Breakthrough Energy Ventures: Invested in several electric truck and charging infrastructure startups serving the port freight corridor.

KPI Summary

KPI	Baseline (2019)	Current (2025)	Target (2028)
ZEV drayage trucks deployed	0	120	800
Charging stations installed	0	58	400
Annual CO2 displaced (metric tons)	0	8,400	55,000
PM2.5 reduction from baseline	0%	87%	95%
TCO parity threshold (annual miles)	N/A	85,000	60,000
Technicians certified (ZEV maintenance)	0	340	800
Small fleet operator participation rate	0%	15%	45%

Action Checklist

• Assess current drayage fleet duty cycles to identify routes suitable for battery-electric conversion based on daily mileage, dwell time at terminals, and load profiles
• Engage with utility providers at least 24 months ahead of planned charging infrastructure deployment to initiate interconnection studies and distribution upgrades
• Evaluate truck-as-a-service and leasing models from providers like WattEV and Forum Mobility to reduce capital barriers for small and mid-size fleet operators
• Apply for available federal and state incentives including HVIP vouchers, IRA Section 45W credits, and EPA Clean Ports Program grants before funding windows close
• Establish baseline emissions monitoring at community-level air quality stations to document health co-benefits and support continued regulatory and funding justification
• Develop workforce transition plans that include ZEV technician certification pathways for existing diesel mechanics
• Negotiate master charging agreements with terminal operators that secure access to on-site charging during loading and unloading dwell times

FAQ

Q: What is the realistic range of a battery-electric drayage truck under loaded conditions? A: Current Class 8 battery-electric trucks operating in the San Pedro Bay pilot achieve 150 to 200 miles of range when carrying typical container loads of 40,000 to 60,000 pounds gross combination weight. The Freightliner eCascadia with a 438 kWh battery pack delivers approximately 155 miles under maximum load in hilly terrain and up to 210 miles on flat routes with lighter loads. Range performance degrades 10 to 15% at ambient temperatures above 100 degrees Fahrenheit due to battery thermal management demands, which is relevant for summer operations in inland logistics corridors.

Q: How long does it take to charge a Class 8 electric truck, and does it disrupt operations? A: Using 350 kW DC fast chargers, a full charge from 10% to 80% state of charge takes approximately 60 to 90 minutes for trucks with 300 to 440 kWh battery packs. The operational impact depends on fleet scheduling: drayage trucks typically experience 45 to 90 minutes of dwell time at port terminals during container loading and unloading, creating a natural charging window. Fleets that align charging with existing dwell time report minimal productivity loss. Overnight depot charging at 50 to 150 kW is more common and costs 30 to 40% less per kWh due to off-peak electricity rates, making it the preferred strategy for trucks that return to a home base daily.

Q: Can this pilot model be replicated at other US ports? A: Several elements are directly transferable: the cargo-based fee mechanism to generate dedicated funding, the zone-based approach to phasing zero-emission requirements, and the workforce development partnership model. However, three factors make direct replication complex. First, the San Pedro Bay ports benefit from California's uniquely aggressive regulatory framework and incentive stack, which reduces the net cost of electric trucks by $160,000 per vehicle. Ports in states without comparable incentives face higher economic hurdles. Second, Southern California's mild climate extends battery range relative to ports in cold-weather regions where heating loads reduce effective range by 20 to 30%. Third, the scale of the LA/Long Beach complex creates purchasing power and infrastructure investment efficiencies that smaller ports cannot easily match. The Port of Savannah, Port Houston, and Port of New York/New Jersey have all launched pilot programs modeled partly on the San Pedro Bay approach, with adaptations for local regulatory and climate conditions.

Q: What happens to displaced diesel trucks and the workers who maintain them? A: The Clean Truck Fund program requires that retired diesel trucks be scrapped rather than resold into secondary markets, preventing emissions leakage to other regions. As of 2025, over 18,000 pre-2010 diesel trucks have been permanently retired through the program. On the workforce side, the ports' technician retraining program offers incumbent diesel mechanics priority enrollment and wage support during the 16-week certification period. DTNA and PACCAR have also launched dealer-level training programs for their electric platforms. However, the transition timeline is uneven: while large fleet operators have begun systematic retraining, many small operators lack the resources to invest in workforce development, reinforcing the equity gaps described above.

Sources

• Port of Los Angeles. (2025). Clean Air Action Plan: 2024 Annual Emissions Inventory and Progress Report. San Pedro, CA: POLA.
• Port of Long Beach. (2025). Zero-Emission Freight Infrastructure: Deployment Status and Performance Data. Long Beach, CA: POLB.
• US Environmental Protection Agency. (2024). Inventory of US Greenhouse Gas Emissions and Sinks: 1990-2023. Washington, DC: EPA.
• NFI Industries. (2025). Electric Fleet Operations Report: Total Cost of Ownership Analysis for Battery-Electric Drayage. Camden, NJ: NFI Industries Inc.
• South Coast Air Quality Management District. (2025). Community Air Monitoring Program: San Pedro Bay Ports Region Annual Report. Diamond Bar, CA: SCAQMD.
• California Air Resources Board. (2025). Advanced Clean Fleets Regulation: Implementation Progress and Compliance Data. Sacramento, CA: CARB.
• US Department of Energy. (2025). Clean Ports Program: Award Summary and Performance Metrics. Washington, DC: DOE.
• California Workforce Development Board. (2025). Clean Transportation Workforce Initiative: Program Outcomes Report. Sacramento, CA: CWDB.