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Saturday, February 04, 2012
Regional Focus: July 2009
Reefer Exhaust
Truckers brace for a wave of regulations
Story by J.T. Long
New environmental requirements for refrigerated trucks, also known as reefers, could put the brakes on an already-strained business climate for the California trucking industry. It’s really hitting home in West Sacramento, where several trucking companies have to pony up to upgrade their equipment by mid-month.
In January, the U.S. Environmental Protection Agency approved a waiver that allowed the long-delayed California Air Resources Board truck refrigeration rules to go into effect. In 2004, the governor signed a requirement that 9- to 36-horsepower refrigeration units, used to keep food cool during shipping, must not be more than seven years old. Since then, the state rule, which is more stringent than the national standard, has been waiting for a federal sign-off. That gave operators six months to either add a diesel particulate filter, a rebuilt engine or a 2008-model refrigeration unit before July 17.
“Trucking companies are scrambling to comply with [transport refrigeration unit] requirements that could cost $2,000 to $4,000 per unit,” says Julie Sauls, spokeswoman for the California Trucking Association.
A CARB staff report estimates 37,000 trucks statewide would be impacted at an annual cost of as much as $14 million. The same report estimates a resulting decrease of .6 tons of particulate matter per day and .9 tons of nitrogen oxide per day.
A number of West Sacramento truckers would be affected, including Nor-Cal Produce Inc., which moves fresh food from processors to grocers on 30 trucks, and Tony’s Fine Foods, which operates 50 tractor-trailers and delivers 6,000 products ranging from prepared salads, sandwiches and pizzas to meats and cheeses. Small generators keep the trailers at 35 Fahrenheit. “The fleet of multi-temperature trucks and trailers is carefully designed for hot valley temperatures,” according to Tony’s website.
“Trucking companies are scrambling to comply
with [transport
refrigeration unit] requirements.”
— Julie Sauls, spokeswoman, California Trucking Associatio
Tim Deary, vice president of Nor-Cal Beverage Co. Inc., which produces and distributes Arizona Iced Tea, Monster Energy and its own Go Girl energy drink, plans to give up the refrigerated transport business rather than retrofit. “We just have one [refrigerated truck], and we will retire it when the deadline hits,” Deary says.
The beer distribution arm of the company ships for Anheuser-Busch, Sierra Nevada and Heineken and is the only one using the chilled vehicle.
“The challenge is that trucking companies are having to deal with a number of these regulations all at once,” Sauls says.
A series of regulations that go into effect between 2010 and 2022 will require diesel exhaust filters on all rigs, fuel-efficient tires and aerodynamic devices to lower greenhouse gas emissions.
Michael Darling, vice president of operations for Western Truck School Inc. in West Sacramento calls the requirements unrealistic. He says it will cost him almost $100,000 to upgrade the 22 trucks in his aging fleet because the $20,000 filter is worth more than the $15,000 trucks he uses to teach student drivers how to safely make a living.
“This is untested, unproven technology,” Darling says. “The timing couldn’t be worse with the state of the economy.”
“When they pass smog laws for cars, they aren’t retroactive. They just make sure all cars moving forward comply. Why couldn’t they do that with trucks?”
— Tim Deary, vice president, Nor-Cal Beverage Co. Inc.
Darling says vocational schools typically do well in a recession, but because of the tight credit markets, students and trucking companies are finding it difficult to qualify for loans.
With the state’s finances in even worse condition, Darling warns CARB may not be able to enforce the regulation or guarantee the grants to qualified operations. “This really hits small, independent operators hard,” Darling says.
Nor-Cal Beverage’s Deary says his company is big enough that he will be able to absorb the cost, but he may have to trim expenses such as benefits and salaries for his 550 employees to afford getting his 60 trucks in compliance. “This will be a serious cost,” he says.
Deary has ordered four new tractors that cost as much as $120,000 each. He took advantage of state incentives to purchase one truck. “I am thankful for that,” Deary says. The rest will have to be retrofitted or phased in.
Deary says he supports clean air measures. “I have to breathe just like everyone else.” But he thinks the state could have taken a more commonsense approach. “When they pass smog laws for cars, they aren’t retroactive. They just make sure all cars moving forward comply. Why couldn’t they do that with trucks?”
