California ports land ‘unprecedented’ federal grants for zero-emission projects

Two California ports have bagged critical federal grants from the U.S. Environmental Protection Agency (EPA), allowing them to ‘further accelerate’ their zero-emission initiatives and take one step closer to the global climate neutrality targets.

As disclosed, the Port of Los Angeles has secured “unparalleled” funding amounting to $412 million from the EPA’s Clean Ports Program, while the Port of San Diego received nearly $59 million for its San Diego Clean Cargo project aimed at further electrifying operations at the port’s two maritime cargo terminals and supporting zero-emissions freight movement.

In order to achieve 100% zero-emission (ZE) terminal operations by 2030, the Port of Los Angeles, with assistance from the International Longshore and Warehouse Union (ILWU) and several of its private sector tenant partners filed for the EPA grant this past May.

As understood, the port partnered with Yusen Terminals LLC, Everport Terminal Services, TraPac, Fenix Marine Services, APM Terminals, and the Harbor Community Benefit Foundation on the application, with additional support from a coalition of over 100 elected officials, public agencies, business groups, environmental justice, community and labor organizations.

With the grant approved, the port confirmed that, alongside its private sector partners, it planned to match the EPA grant with an additional $236 million—bringing the total new investment in zero-emission programs to $644 million.

As disclosed, the money is set to go toward buying nearly 425 pieces of battery electric, human-operated zero-emission cargo-handling equipment, installing an auto terminal vessel shore power AMP connection, 300 new charging ports and related infrastructure, and deploying 250 ZE drayage trucks.

The total funding is anticipated to ‘substantially’ cut down on port operation emissions, decreasing annual emissions of nitrogen oxides (NOx) by what is estimated to be 55 tons. Moreover, PM2.5 is projected to be reduced by 1.5 tons, and greenhouse gases (GHG) by 41,500 tons, while 3.5 million gallons of annual diesel fuel usage is likely to be eliminated.

“The San Pedro Bay ports move the goods that power our economy. This historic investment of over $400 million in the Port of Los Angeles is a monumental step forward in accelerating the zero-emission infrastructure transition,” said California U.S. Senator Alex Padilla.

“Thanks to the Inflation Reduction Act, we’re decarbonizing our supply chain to produce cleaner air and protect public health in Southern California communities while building toward our essential zero-emission goals,” he added.

“Today’s funding announcement is the direct result of a five-year effort by my office to work with labor, environmental justice groups, industry, and ports, to secure billions of dollars to clean up ports across the country. This investment will significantly reduce pollution from ports and help our nearby port communities breathe cleaner air,” Congresswoman Nanette Barragán, remarked.

Mike Jacob, President of the Pacific Merchant Shipping Association, further emphasized that the EPA grant and the matching funds could prove ‘pivotal’ in fully decarbonizing the port’s operations.

“These important funds put an exclamation mark on the progress that has already been made by the maritime industry in our long-term partnership with the Port of Los Angeles, resulting in diesel particulate matter reductions of -91% and sulfur oxides by -98% since 2005 in Southern California,” he stated.

To remind, this October, the Port of Los Angeles shook hands with a number of international stakeholders at the Hamburg Sustainability Conference (HSC), which took place in Hamburg on October 7-8, 2024, by signing a declaration to decarbonize shipping. In the declaration, the signatories recognized the need for ‘more urgent action’ to support the industry’s net zero ambitions.

In addition to the grant the Port of San Diego bagged from the EPA, an additional $28 million dollars, collected by the port, the San Diego Air Pollution Control District (APCD), Dole, PASHA, Skycharger, and SSA Marine, will total the Clean Cargo project cost to $86 million.

As understood, this project could ‘significantly’ cut down emissions by implementing several ‘key’ components, namely:

• the construction of all remaining improvements to the Tenth Avenue Marine Terminals’ (TAMT) legacy 12-kilovolt electrical distribution system (12-kV loop) as a way to support zero-emission electric equipment and shore power systems;
• the installation of two shore power systems for the commercial harbor craft at TAMT, deployed throughout San Diego Bay and a shore power system for ocean-going ships calling at TAMT that can connect to the system;
• the introduction of a proposed zero emissions truck stop, which could serve the Port of San Diego’s two maritime cargo terminals, the arterial corridor Harbor Drive, and the region’s freeway network.
• the purchase and deployment of battery-electric zero-emissions equipment, vehicles, and charging infrastructure, including 32 pieces of cargo handling equipment, 20 medium-duty stevedore shuttle vans, and 25 heavy-duty trucks.

“The Port of San Diego long worked to advance clean air initiatives and electrification at its maritime terminals, something I pushed for enthusiastically when I served on the Port Commission years ago,” said Congressman Scott Peters.

“This year, I was very pleased to support San Diego in the Clean Ports Program: Zero-Emission Technology Deployment Competition. This award ensures that San Diego continues to be at the forefront of sustainable, efficient goods movement while improving air quality and supporting the health of our portside communities.”

Serving as the ‘foundation’ of the port’s cargo project are several initiatives that were adopted over the past decade:

• the Maritime Clean Air Strategy (MCAS) adopted in October 2021, which comprises 34 clean air initiatives within the port’s “Health Equity for All” vision;
• the Climate Action Plan (CAP) adopted back in 2013 to serve as an action guide for greenhouse gas reduction policies and measures;
• the TAMT Redevelopment Plan the phase 1 of which reportedly resulted in the removal of two obsolete warehouses.

Furthermore, as per the Port of San Diego, a stormwater treatment system was also developed to ‘improve’ stormwater capture on the terminal.

As informed, the process of finalizing the grant agreement has already started, with the aim of commencing the project in early 2025. The timeline for project completion is projected for 2028.

The EPA announced two separate funding opportunities for U.S. ports in February this year. The first was the Zero-Emission Technology Deployment Competition which directly funds ZE equipment and infrastructure to reduce mobile source pollution, while the second was the Climate and Air Quality Planning Competition.

The grants—comprising a total of $3 billion awarded to 55 applicants across 27 U.S. states—were funded by the Inflation Reduction Act, and are expected to help eliminate more than 3 million metric tons of carbon pollution, equivalent to 391,220 homes’ energy use for one year, the EPA highlighted in an earlier statement.