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Truck Groups take Issue with California Sustainable Freight Plan

Image: California State Transportation Agency

The release of the final version of California's Sustainable Freight Action Plan has been met with harsh criticism by two groups representing Golden State's truck-fleet operators.

According to the California Air Resources Board, the revised document is similar to the draft issued back in May. However, CARB claims it “reflects new input provided by industry, labor, regional and local government, and community and environmental group stakeholders.”

The plan is important to trucking as the agency regards it as a “blueprint” for making the state's freight transport system environmentally cleaner, more efficient, and more economically competitive.

However, key trucking stakeholder associations in the Golden State argue that the plan doesn't take into account the realities of the trucking industry, especially the billions truckers already spend to eliminate harmful emissions from the vehicles they operate in California.

“We listened to stakeholders, incorporated changes, and we will continue to consult with them as we put the Plan into action,” said California Air Resources Board Chair Mary D. Nichols. “This dialogue -- and a commitment to shared responsibility for and ownership of this plan-- is the underpinning for the successful transformation of our freight transport system and the multiple benefits it will bring to our environment, communities and our economy.”

Developed in response to an executive order issued by Governor Jerry Brown, the plan was prepared by no fewer than seven state agencies. Governor Brown's senior jobs adviser Mike Rossi noted that the plan “builds upon ongoing efforts to modernize the freight industry while reducing emissions and keeping it competitive through commercially viable and affordable technologies."

The ambitious plan includes “a long term-2050 vision and guiding principles for California's future freight transport system” along with these slightly more near-term, albeit arguably vague targets: I

• Improve freight system efficiency 25 percent by 2030
• Deploy over 100,000 zero-emission vehicles/equipment and “maximize near-zero” by 2020
• Foster future economic growth within the freight and goods movement industry

Per CARB, the plan also identifies opportunities to leverage freight transport system investments made by the State of California; “pinpoints actions to initiate over the next five years to meet goals and lists possible pilot projects to achieve concrete progress in the near term.”

The agency said the final plan also puts more focus on partnerships and includes a discussion of “toxic hot spots.”

Changes have also been made “to clarify and emphasize” collaboration between the responsible agencies and other regional planning efforts, including funding.

CARB said that, going forward, state agencies will continue working with federal, state, industry, labor, regional, local and environmental and community-based partners “to refine and prioritize the strategies and actions” outlined in the plan.

State agencies have also been charged with creating “collaborative stakeholder working groups on competitiveness, system efficiency, workforce developments, and regulatory and permitting process improvements.” All these efforts will lead to state agencies establishing work plans for “chosen pilot projects” by next July, CARB stated.

In statement on the finalized action plan, Shawn Yadon, CEO of the California Trucking Association, said that for California to “spur innovation” in zero and near-zero emission technologies, the state “must make a business case for new investment from the trucking industry, which is already spending $1 billion a year to bring about a more sustainable freight system. Broad expansion of regulations targeting freight facilities will impede this progress by discouraging the investment needed to achieve California's environmental and economic goals.”

Yadon told HDT that CARB and other air-quality agencies in the state “continue to signal that they intend to expand regulation to cap emissions at freight hubs, which they contend are [toxic] ‘hot spots' despite the billions the trucking industry is spending to eliminate emissions throughout the state

“If the true intent of this program is to advance zero and near-zero emission technology, then California must make the case for billions of dollars of new private investment in the state,” he added. “Continuing to signal that draconian new rules are on the horizon will only hurt this effort.”

Joe Rajkovacz, director of governmental affairs and communications for the Western States Trucking Association, reacted even more vehemently to the final plan. “Despite what the news release from CARB states about the ‘inclusive' nature of the process, as usual it is nothing but gross hyperbole,” he told HDT. “The whole document is really a manifesto outlining future interference in the goods-movement marketplace by bureaucrats intent on maintaining their command and control over a sector of the economy. It's newsworthy to the point that it telegraphs the direction of future policy decisions by CARB.”

Rajkovacz also said that WSTA has known for “quite some time” that California move forward with “inducements” towards the adoption of zero-emissions technology in heavy duty trucks. “I have been told by CARB bureaucrats they never wanted a repeat of ‘forced' mandates similar to what occurred with the Statewide Truck and Bus rule. The roadmap here will be financial inducements to adopt zero- emissions trucks in specific market segments.”

That being said, he added that “all the news of Class 8 electric trucks ‘possibly' entering the marketplace in some commercially viable way is going to be interesting if it really happens. Those as yet ‘fantasy trucks—I haven't seen any being beta-tested on highway yet, just concepts-- will be exactly what CARB wants in the California marketplace. At least until some public researcher comes up with a theory that even those trucks somehow are contaminating the environment.”

Related: California Aims to Regulate Sustainability into Freight System

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Average Diesel Prices Slide, Crude Oil Gains

Source: EIA

The average price of diesel fuel in the United States fell again last week, dropping to levels last seen in mid-May, according to the latest numbers from the Energy Department.

The price of a gallon of on-highway diesel fuel fell 3.2 cents from the previous week's price, settling at $2.316. Compared to the same week in 2015, the price is 30.1 cents cheaper.

Diesel prices were down in all regions of the U.S. with the largest decrease occurring in the Gulf Coast region, falling by 4 cents. The smallest change in prices was in the New England region where diesel fell by 1.8 cents.

The average price of regular gasoline was mostly flat last week, dropping only 0.9-cents to $2.15 per gallon. The price is 47.9 cents cheaper than it was a year ago.

Prices fluctuated depending on the region with the largest decrease occurring in New England with a drop of 4.3 cents per gallon. Prices were actually up in the Midwest where there was a 4-cent increase.

Crude oil prices have been falling in the past few months but were up around as of Aug. 8 due to renewed speculation that oil production may decrease to offset the lack of demand, according to MarketWatch.

Member countries of OPEC like Venezuela and Kuwait have indicated recently that they would like to reduce production to offset the lower global demand that has plagued the oil market since 2015. However, earlier this year OPEC countries failed to come to an agreement after similar speculation.

Related: A Different Approach to Fuel Efficiency Coaching

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Virtual corporations, actual reality

ATA Report Breaks Down Trucking’s Big 2015

The American Trucking Associations has released the latest edition of its almanac of trucking, ATA American Trucking Trends 2016, which showcases industry trends over the last decade.

The new report reveals that trucking last year posted gains in employment, number of truck drivers, and truck sales. Trucking revenues in 2015 also set a new record high for the industry.

“In many ways, 2015 was a good year for our industry, and Trends clearly demonstrates that,” said Chris Spear, ATA president and CEO. “Trends provides indispensable information to trucking companies, industry suppliers, logistics providers, analysts, public policy decision makers, investors and many others. Information that is crucial to making sound decisions about the future.”

In the new edition of Trucking Trends, ATA found that trucking collected a record $726.4 billion in gross freight revenues, or 81.5% of the nation's freight bill in 2015. Trucks carried 10.49 tons of freight in 2015, accounting for 70.1% of domestic freight tonnage. The report also found that 3.63 million Class 8 trucks are in operation.

“According to our data, trucking revenues topped $700 billion for a second straight year, setting an all-time record of $726.4 billion in 2015, while trucks moved more than 10 billion tons of freight,” said Bob Costello, ATA chief economist.

“While the first half of 2016 has been challenging for the industry, trucking is coming off two very strong years and we are optimistic about the future," he added.

The American Trucking Trends 2016 report also includes data on key points like the amount of taxes the industry paid, the number of miles combination trucks traveled and what fuel they consumed, key employment data, and the number of trucking companies by company size.

The report is available for purchase here. For more on the American Trucking Trends, watch ATA chief economist Costello discuss the report here.

Related: Trucking Tops $700 Billion for First Time

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