12/10/09

Yesterday Dec. 9, the Air Resources Board (ARB) met and discussed a potential postponement of the controversial “on-road diesel engine rule.”  The “on-road rule” is set to go into effect Jan. 1, 2011.  There has been some confusion via press reports as to whether the ARB has postponed implementation of the rule.  To be clear, what the board did yesterday, was to postpone a decision on whether to go forward with the rule until April of 2010.  No final decision was made at yesterday’s hearing for a postponement.

The rule has been highly controversial from the start as it will be the most expensive regulation ever enacted in California.  The rule will require the replacement of all on-road diesel engines over the next few years.  Agricultural trucks are also included in this rule.  WPHA, working with other agricultural associations was able to get a partial postponement for the replacement of placarded fertilizer and crop protection material trucks owned by agricultural retailers.

The “on-road rule” became even more controversial when it was revealed after passage of the rule last December that the statistician who wrote much of the report establishing the health risks of diesel engine exhaust and thereby drove the need for the rule had falsified his credentials.  It was also revealed that the ARB Chair and ARB staff were aware of the falsification before the hearing but choose to withhold this information from the full board at the hearing last December.  To date, no public hearing has yet taken place to require those involved to explain why this information was withheld.  The scandal that resulted became a rallying point for critics of the rule, and resulted in at least two ARB members asking that the entire rule be suspended because of how this has compromised the credibility of the ARB.

The board heard from businesses, environmental interests, and ARB staff on the current collapse of the economy in California, health risks by postponing the rule, options to postpone the rule, and potential state fiscal impacts that may result by not meeting federal clean air standards if the rule is postponed.  The primary options discussed focused on a one-year postponement for all trucks, a two-year postponement for small and mid-size fleets, and bonus credits to businesses that have all ready invested or are willing to change over their trucks by the current deadlines.  This morning, Gov. Schwarzenegger released a statement supporting a rule that would provide relief to small and mid-sized fleets, so that may be an indicator that two-year postponement may be his preference.

Of importance to WPHA retail members is that all reporting requirements for the truck rule and in particular the Ag Rule are still in effect. Retailers who wish to register trucks under the “Agricultural Truck Rule” must still have their inventories reported to ARB by March 31, 2010.  Actually enforcement or turnover of those trucks may be delayed as a result of any postponement to the overall on-road diesel rule.

WPHA believes that the rule will be postponed at the April 2010 ARB meeting.  However, that was not voted on yesterday and while we believe it is highly likely, there is no guarantee in place that a postponement will be approved.  Additionally, the board will not make a decision on how long any postponement will be until April, 2010.  WPHA will keep members up to date as we receive more information from ARB staff on how a postponement will impact Ag trucks and the direction of any rule postponement.

Renee Pinel
President/CEO