Legislation introduced into the California State Senate by Sen. Ricardo Lara would provide an exemption from sales and use tax for terminal operators purchasing zero or “near zero-emission” equipment.
California Senator Ricardo Lara, whose district includes the Port of Long Beach, has introduced a bill into the California State Senate that aims to provide incentives to terminal operators to use zero or “near zero-emission” equipment in their marine terminals.
The bill, SB1338, will provide an exemption to the 3.9375 percent general fund sales and use tax for equipment used at terminals such as trucks, straddle carriers and cranes, as well as parts for repair and replacement and buildings that are an “integral part” of such equipment. Drayage trucks would not be included.
Lara said in a statement that while the California economy is largely dependent on international trade and commerce, pollution and greenhouse gas emissions “continue to impact public health throughout the state.”
The exemption would apply to equipment powered by electricity and natural gas acquired through 2030 and is expected to cost the state about $4.6 million per year. But Lara said because of greenhouse gas reductions, health benefits, and increased efficiency the exemption is expected to be a net gain for the state.
“Replacing current equipment at the ports of Los Angeles, Long Beach, and Oakland is estimated to cost $23 billion. Smart investments to offset and eliminate negative environmental impacts from freight transport positions the state to work towards achieving clean energy and climate goals,” he said.
“The state has a critical role in assisting California ports transition from the more conventional to next generation infrastructure to improve the public health of communities in and around our goods movement sector.”
California bill aims to help marine terminal operators reduce emissions
