Workshop Highlights Cost of Truck/Bus Retrofit Rule

 

Mandate Will Force Replacement of Truck Fleets

(July 14, 2008) The California Chamber of Commerce held a workshop this week to educate the public and business community about the negative impacts of the upcoming California Air Resources Board (ARB) truck and bus replacement rule.

Jeanne Cain, CalChamber executive vice president, policy, kicks off a workshop in Sacramento outlining for more than 100 attendees the wide-ranging impacts of the truck/bus replacement rule being developed by the California Air Resources Board for implementation starting December 31, 2010.

The ARB is working on the regulation, which could affect more than 1.5 million diesel trucks and buses in California by requiring major engine replacements/retrofitting.

The proposed regulation would apply to on-road diesel vehicles greater than 14,000 pounds Gross Vehicle Weight Rating (GVWR) that operate in California, regardless of where they are registered.

Compliance Date Looming

The ARB’s goal is to have the entire model year 2006 and older heavy-duty truck fleet meet model year 2007 emission levels by 2014. Compliance options begin phasing in starting December 31, 2010.

The CalChamber is warning that this could result in significant financial burdens to California businesses that will, in effect, be forced to prematurely replace their truck fleets and buy new equipment before it would otherwise be acquired.

“There is currently no device that will get you 70 percent reduction on a ’07 engine, so the catch is what you need is a 2010 model year engine,” said Matt Schrap of the California Trucking Association at the workshop, attended by more than 100 interested businesspeople.

If the rule goes into effect, the market will be flooded with “outdated” trucks, greatly diminishing the ability of businesses to sell used equipment or recoup any resale value, Schrap said.

New Coalition

The CalChamber, along with truck owners, farmers, construction contractors and other business and community leaders, has formed a coalition focusing on the pending rule.

The coalition, Driving Toward a Cleaner California (DTCC), is committed to working with the ARB to craft a sensible truck and bus replacement rule that both cleans the air and keeps California’s economy moving forward.

Given the multibillion-dollar cost of this regulation — and the current volatile economic environment — the DTCC coalition is advocating that the affected industries and other sectors be given the opportunity to comply in the most reasonable timeframe and flexible manner possible.

According to the ARB, 55 percent of truck owners are small firms with five trucks or fewer. Nearly one-third of truck owners-operators — 32 percent — own just one vehicle.

Learn More

Business owners are invited to join DTCC to learn more about the proposed regulation and the coalition’s effort to craft an alternative that cleans the air while keeping the maximum number of companies in business and workers employed; ensuring the business environment stays competitive; and holding increased costs to other businesses and consumers to a minimum.

The ARB is holding workshops around the state through early August to explain the proposal. The ARB will consider adoption of the regulation at its October 23–24 meeting.

More information is available at the DTCC website, www.drivecleanca.org.

A link to the coalition website is available on the CalChamber home page at www.calchamber.com.

Staff Contact: Jeanne Cain

Additional Materials

Environmental Regulation 


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