Opinion: California’s Zero-Emissions Plan on the Horizon

This Opinion piece appears in the Aug. 3 print edition of Transport Topics. Click here to subscribe today. 

By Shawn Yadon

CEO

California Trucking Association

This year, the freight movement sector will be facing the development of new emissions rules affecting trucking, warehousing and distribution centers in California. Through legislative approaches, executive orders and other regulatory measures currently in development, a slew of new compliance concerns are just around the corner.

Since the early years of the 21st century, California has greatly reduced community health risks from freight emissions. As a result, the trucking industry — three-fourths of which is made up of small family-owned businesses — has cut particulate matter emissions by 99% by investing more than $7 billion in clean truck technologies. This number alone is equivalent to taking 1.4 million cars off the road.

However, on July 17, California Gov. Jerry Brown issued a proclamation calling for a new wave of regulations on the freight movement industry, which accounts for one-third of the state’s economy and jobs.

Through an executive order, Brown has directed California’s environmental, energy, business development and transportation agencies to deliver an integrated freight plan by July 2016. The goal of the proposal is to create clear targets for freight efficiency, economic competitiveness and a transition to zero emissions for all vehicles, including trucks.

The announcement of the executive order solidifies the proposals presented through a document released by the California Air Resources Board earlier this year, called the Sustainable Freight Strategy.

In the document, CARB presented aggressive strategies that will lead to new zero-emissions regulatory approaches for parcel trucks, refrigerated trailers and forklifts while capping emissions at freight hubs such as seaports, airports, rail yards, warehouses and distribution centers.

To complicate matters, these actions coincide with two major pieces of California state legislation currently making their way through the Legislature that, simply put, will have significant effects on the way all Californians live their everyday lives.

The first, Senate Bill 32, sets an ambitious goal of reducing carbon emissions by 40% below 1990 levels by 2030. The second, Senate Bill 350, would cut petroleum use in the transportation sector by 50% in the same timeframe.

These advancing targets are why the state is “all in” on zero-emissions trucks, investing nearly $100 million a year of cap-and-trade money into pilot and demonstration projects. The results of these projects to date have found that zero-emissions commercial vehicles and other freight equipment desired by California regulators are nowhere close to widespread commercialization — trailing behind passenger cars by decades. These vehicles are expected to cost up to three to four times as much as their diesel counterparts but will weigh more and have significantly compromised range. At this point, these early returns on the performance of these trucks clearly do not measure up to the demands of our customers.

Today, every Californian depends on truckers to move the goods that are required for society to function successfully. Every day, a truck brings the food, clothing, medicine, fuel and all other consumer goods that communities depend on. While the state’s population and freight activity levels are expected to increase substantially in the coming years, the significance of trucking probably will increase.

Hauling nearly 90% of manufactured tonnage in the state with 80% of California communities depending exclusively on trucks, the costs to continue such significant policy changes aimed at this industry undoubtedly will be borne not only by the trucking industry but by every consumer in California.

As the California Trucking Association works tirelessly to be in the forefront of this conversation, our objective is to ensure carriers that operate in and out of California have a voice during these critical times. Accounting for more than $700 billion in revenue and more than 5 million jobs in the state, the trucking industry is vital to moving our economy and connecting our communities.

However, we cannot do it alone. To successfully work hand in hand with Brown and legislative leaders, it is vital that the trucking industry nationwide becomes directly engaged in our efforts. Attend any meeting at American Trucking Associations, and when the conversation shifts to state issues, California, unfortunately, is at the top of the list every time. And as all of us know, what is proposed and ultimately approved in California will have a sweeping influence on several other states in the short term and on the entire country over time.

Now is not the time to sit on the sidelines from afar. If you operate in California, we are asking you to get engaged, because there is too much at stake.

The California Trucking Association is the largest statewide trucking organization in the country and a member of American Trucking Associations. Yadon can be reached at syadon@caltrux.org.