SECTION 1.
The Legislature finds and declares all of the following:(a) In 2020, the State Air Resources Board adopted regulations to reduce emissions of greenhouse gases from heavy-duty trucks and drayage trucks. These regulations include a first-in-the-world rule requiring truck manufacturers to transition from diesel trucks and vans to zero-emission trucks beginning in 2024 and requiring every new truck sold in California to be zero emission by 2045. The State Air Resources Board approved the “Heavy-Duty Low NOx Omnibus Regulation,” which requires manufacturers of heavy-duty diesel trucks to comply with tougher emission standards, overhaul engine testing procedures, and further extend engine warranties to ensure that emissions of oxides of nitrogen are reduced to help California meet federal air quality standards and critical public health goals.
(b) Also in 2020, Governor Gavin Newsom issued Executive Order No. N-79-20, which, among other things, sets a goal of all drayage trucks in the state to be zero emission by 2035 and sets a number of vehicle emissions goals for the state, including having 100 percent of heavy-duty vehicles in the state be zero emission by 2045.
(c) In 2017, the Ports of Los Angeles and Long Beach set the shared goal of achieving zero-emission drayage operations by 2035, which aligns with the goal set by Governor Newsom in Executive Order No. N-79-20.
(d) In 2021, the State Air Resources Board created Project 800, which provided state funding to help offset the cost of 800 new zero-emission drayage trucks.
(e) In January of 2022, Governor Newsom proposed hundreds of millions of dollars in the budget to purchase an additional 1,000 zero-emission drayage trucks in California.
(f) In April of 2022, the Port of Los Angeles will commence collection of a clean truck incentive rate that is expected to generate approximately $45,000,000 annually to help offset the cost of zero-emission drayage trucks that service the port.
(g) There are over 30,000 drayage trucks that regularly service California ports each year. Most of these are used trucks. Used drayage trucks cost around $50,000. New zero-emission drayage trucks currently cost over $350,000. Unless funding is provided to offset the initial cost of new zero-emission drayage trucks, it will be difficult for individuals and businesses to purchase new more expensive zero-emission drayage trucks.
(h) It will take a combination of state and local incentive funding to close the gap between a used $50,000 diesel drayage truck and a new $350,000 zero-emission drayage truck.