Last Mile Freight Program

Overview

Delivery Trucks

About The Program

Last mile freight activity is a critical component of supply chains for both consumers and intermediary businesses dealing with physical goods. E-commerce has had a profound impact on last mile delivery growth, and in 2020, the COVID-19 pandemic has only exacerbated the frequency of deliveries adding further stress to global supply chains. At the same time, air quality challenges continue to impact the public health of the region. 

As part of SCAG’s Connect SoCal (2020 – 2045 Regional Transportation Plan/Sustainable Communities Strategy), the Accelerated Electrification strategy is a Key Connection of the Plan seeking to de-carbonize or electrify vehicles including those within goods movement. The Last Mile Freight Program (LMFP) serves as an initial step towards implementing freight-related clean vehicles/equipment and infrastructure to support cleaner air goals.

SCAG has partnered with the Mobile Source Air Pollution Reduction Review Committee (MSRC) to establish Program Guidelines and issue a Call-for-Projects for the LMFP. The LMFP is a component of a larger goods movement emission reduction effort established by the MSRC.

SCAG has developed a two-phased approach for the LMFP:

  • Phase 1: Focusing on the commercial deployment of zero-emission or near-zero emission (ZE/NZE) heavy and/or medium duty on road trucks (including ZE/NZE equipment and supporting infrastructure).
  • Phase 2: Further expanding Phase 1 projects through coordination with both public and private sector stakeholders to deploy broader innovative technologies currently being demonstrated by leading last mile delivery companies, particularly in e-commerce use-cases.

A total of $10,000,000 is available for Phase 1 of the LMFP through the Call-for-Projects and selection process.

Program Goals 

The LMFP aims to:

  • Achieve immediate emission reductions for NOx and PM2.5 from commercially deployed vehicles/equipment and facilitate supporting infrastructure;
  • Inform both industry and the public regarding ZE/NZE vehicle/equipment and supporting infrastructure performance, and how this information can be used to scale emission reductions to contribute to regional air quality goals;
  • Provide private operators and the public with information on return on investment (ROI) and cost-effectiveness insights into ZE/NZE vehicle/equipment and infrastructure operations, maintenance, and reliability;
  • Create greater transparency regarding the need for public versus private ZE/NZE supporting infrastructure; and
  • Inform the needs and/or help address the challenges to significantly scale ZE/NZE vehicles/ equipment and infrastructure in the region.
  • Achieve geographic funding diversity and ensure that the LFMP provides economic and environmental benefits across the entire region.

Additionally, the LMFP is guided by a set of core principles as follows:

  • Creating transparency as to critical barriers impeding the transformation of the last mile freight market;
  • Measuring success for both public and private entities;
  • Optimizing where investments can generate the strongest benefits for further growth; and
  • Achieving air quality reduction targets.

Call For Applications

The Phase 1 Call for Applications will be released on February 22, 2021 with a focus on commercial deployment of ZE/NZE heavy- and/or medium-duty on-road trucks (including ZE/NZE equipment and supporting infrastructure). Please find more information on the program background and goals in the Last Mile Freight Program Guidelines.

Applications submitted for this project type should support the LMFP goals that are aligned with SCAG’s Accelerated Electrification strategy, which is a Key Connection outlined in Connect SoCal. All planning applications must meet the eligibility requirements as described in the LMFP Guidelines. The final deliverable for all projects must include the significant components mentioned in the application, including project summary, readiness and implementation, and cost effectiveness, among others.

Examples of eligible projects include but are not limited to the following:

  • ZE/NZE heavy/medium duty vehicles: (1) last mile delivery vehicles supporting e-commerce industries such as package/parcel deliveries to residents and businesses; (2) last mile delivery vehicles supporting retail/wholesale trade, manufacturing, construction, and other transportation and logistics services from business to business; (3) last mile delivery vehicles supporting major freight facilities.
  • ZE/NZE heavy/medium duty equipment: (1) trailer equipment supporting e-commerce industries, retail/wholesale trade, manufacturing, construction, and other transportation logistics services from business to business; (2) Last mile operating equipment for local delivery station, sortation, and other local facilities serving residents and businesses.
  • ZE/NZE heavy/medium duty supporting infrastructure: (1) on- or off-site fueling charging hubs or depots.

LMFP Phase 1 Schedule

Milestone 

Date 

LMFP Call-for-Projects Opens 

February 2021

LMFP Application Workshops 

March 2021 

LMFP Deadline for Questions 

LMFP Questions Responses Posted 

LMFP Call for Projects Submittal Deadline 

April 2021 

SCAG/MSRC Approval of Selected Projects 

June 2021 

LMFP Selected Projects Posting 

Contact

For questions regarding the Last Mile Freight Program, please contact Scott Strelecki at (213) 236-1893 or strelecki@scag.ca.gov