The Attorney General's Office filed a lawsuit in June alleging the terminals were violating a state law that requires businesses to notify the public of significant levels of cancerous chemicals that are released into the environment, including diesel engine exhaust.
The settlement, which was approved today by a Los Angeles Superior Court judge, requires the terminal operators to better warn the public about diesel emissions -- including placing ads in newspapers, putting up signs on bus shelters and communicating online.
The warnings will be required until "diesel emissions no longer pose a significant risk to the community," according to a statement from Harris' office.
Operators will also be required to spend at least $1 million per terminal on projects that will reduce diesel fumes.
The projects could include solar power systems that are tolerant of the salty coastal environment and crane systems that capture emissions from idling vessels, according to the Attorney General's Office.
In addition, the terminal operators agreed to pay $756,000 to the Port of Los Angeles for grants that will allow small trucking firms to purchase low-emission trucks and $324,000 to the Port of Long Beach for clean trucks and trains.
The shipping firms will also owe $540,000 each in civil penalties.
"This settlement will speed the requirements for port terminals to reduce diesel emissions," Harris said. "This is vitally important because expanding port traffic leads nearby residents to be exposed to polluted air and increased risk of cancer and other diseases."