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October 15, 2008

Trucking Industry Fights Back in CA

Analysis of: ATA Renews Attack on Port Trucking Plan | fleetowner.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Jeff Moser
President, West Branch LLC
Implications: Environmental legislation requires an economic impact analysis to ensure continued viability of commerce.   California's Clean Truck Program for port operations has withstood such challenges but is now faced with litigation claiming it unlawfully regulates the trucking industry.

Analysis: The American Trucking Association [ATA] is going ahead with additional litigation to try and pre-empt California's Clean Truck Program in port operations.  The CTP is designed to phase out older diesel engines in favor of newer models equipped with advanced emission control systems.

Ports are granting five-year contracts to carriers that comply with the CTP guidelines and pay an up front fee of $2,500 and $100 per truck per year.  The CTP requirements include using employee drivers only, using trucks that meet EPA 2007 standards, driver training, vehicle maintenance, inspections, and several other compliance standards.  A $35 “clean truck fee” per container is imposed on any truck entering the ports with an engine model year between 1989 and 2006.   Trucks built before 1989 won’t be allowed in the ports.

The courts have already ruled that the economic impact on truckers is outweighed by the public health benefits; estimates are that pollution from ports causes $100 - $600 Million in health care costs annually.  

The ATA's new argument in Federal Court ignore's the economic issues and simply claims that the collective CTP guidelines are in fact unlawful regulation of the industry.  This is a somewhat novel approach to fighting emissions regulations; California enjoys special authority to set its own tailpipe standards under the Clean Air Act so challenges must show that California is regulating areas where it lacks authority to do so.

Success in fighting the CTP may encourage similar oppostion to diesel retrofit regulations in the Golden State and elsewhere.


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