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The Road to Shared Prosperity
The Regional Economic Benefits of the San Pedro Bay Ports’ Clean Trucks Program
This 2007 LAANE report estimates that the San Pedro Ports’ proposed Clean Trucks Program would generate $4.2 billion in benefits to the harbor-region economy over the next five years. The report was written in anticipation of a vote by the Ports of Los Angeles and Long Beach on a landmark emissions-reduction program, which would overhaul the region’s port trucking system to meet new clean air requirements.
Key Findings
The report finds that over the first five years of the program, the community will see direct and indirect financial benefits of over $4.2 billion from several sources:
- There is a large pay differential between employees and those working as independent contractors. Recognizing employee status for all drivers is projected to return over $174 million annually to the communities in which they live. Removing the misplaced tax burden associated with the independent contractor classification will free up an additional $14.5 million. This yields over $360 million annually, in addition to new tax revenue and new jobs created, once the multiplier effect is calculated.
- The overwhelming majority of drivers currently lack health care and rely on various forms of public (taxpayer-financed) care. We project that by shifting the health care responsibility for these drivers from the public to an employer-based system, taxpayers will save between $29.6 million and $67.9 million annually.
- Port trucks are responsible for a disproportionate amount of health impacts. By ensuring a sustainable system for implementing and maintaining clean trucks, the region will save over $2.2 billion in terms of these health impacts over just the initial five year period. Were diesel emissions from port trucks to be reduced according to CTP projections, the region would see fewer deaths, fewer hospitalizations, and fewer days of missed work and school.
Who Benefits Under the Clean Trucks Program
Benefit |
Amount (millions)
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Beneficiary |
Increased Employee Income, Shifted Tax Burden, and Indirect Financial Effect |
$1,805 |
Port drivers, their families, and the communities in which they live and work. |
Health Care Savings |
$225 |
Southern California taxpayers currently financing health care for the uninsured. |
Reduced Health Impacts |
$2,204 |
Port drivers; residents and businesses located in Port-adjacent areas and along associated goods movement corridors. |
Total |
$4,234 |
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