How will upcoming regulations effect you?  Right in your wallet I suspect.

New Study Finds Huge California-Only Fuel Premium From GHG Programs

The California Trucking Association (CTA) has released a study showing significant job losses and dramatic fuel cost spikes directly attributable to California Air Resources Board’s (CARB) fuel policies. Goods movement and agriculture sectors will be especially hard hit if the policies are allowed to go into effect as currently designed.

The study, titled “The Impact of the Low Carbon Fuel Standard and Cap-and-Trade Programs on California Retail Diesel Prices“, prepared by Stonebridge Associates, Inc. finds that by 2020 CARB’s Low Carbon Fuel Standard (LCFS) in combination with the AB 32 Cap-and-Trade Program could increase the price of diesel fuel by $2.22 per gallon.

That would represent more than a 50 percent increase in the price of diesel fuel and a shocking $6.69 per gallon at the retail pump. The average price difference between California and neighboring states would be $2.33 per gallon when accounting for taxes.

According to the study, between the year 2015 and 2020, these higher “California-only” diesel fuel costs will cause a loss of nearly 617,000 jobs in the containerized import sector, $68.5 billion in lost state domestic product, $21.7 billion in lost income and $5.3 billion in lost state and local taxes.

California’s transportation and logistics industry is responsible for almost 14% of the state’s economy and is an important source of reliable good paying jobs in this state. However the study states that a “California-only” diesel price caused by CARB’s poor program design will put California’s transportation sector at a significant competitive disadvantage.

The report goes on to say that these diesel fuel price increases of this magnitude will cast an even wider net affecting food, fuel, clothing and other essential services transported by trucks.

“It simply makes no sense that here in California where we wake up every day to double-digit unemployment, businesses struggling to keep their doors open or wheels turning that CARB would intentionally impose policies that makes fuel more expensive,” said Michael Campbell, Executive Vice President and CEO of the California Trucking Association. “Higher fuel prices create an incentive for companies to fuel up outside of our state costing us jobs that provide for our families and critical tax dollars that fund our roads and transit programs.”

The report can be downloaded at http://caltrux.org/LCFS.

Bobby Fleet Manager Wall California Fuel, CARB, diesel, fuel price increases

5 Tips to Maintain Diesel Exhaust Fluid Purity

Maintaining Diesel Exhaust Fluid (DEF) purity and concentration is vital to the efficient and long-term operation of the SCR system.

Use the 5 tips below to make sure your DEF is pure.

1. Use API certified Diesel Exhaust Fluid. Using Diesel Exhaust Fluid that meets ISO standards provides the foundation for purity throughout the distribution process.
2. Buy from a supplier that uses a Closed Loop System.
3. Dedicate nozzles, pumps, and tanks that are specifically designed for DEF. Traditional lubricant equipment is not compatible with DEF and cause damage to your SCR equipped trucks.
4. Keep DEF fluid out of direct sunlight and avoid extreme fluctuations in temperatures.
5. Training – Build awareness about the importance of purity with your team.

Following these simple steps should prolong the life of your SCR equipped trucks.

Get DEF at the PUMP!

Our Long Beach fueling location is now offering Diesel Exhaust Fluid at the pump.

Location Address:

6720 N. Paramount Blvd.

Long Beach, CA 90805

310-546-3344

Sincerely,

Bobby Zaragoza

DeWitt Petroleum

via 5 Tips to Maintain DEF Purity & DEF at the Pump – Long Beach!!!.

Bobby Fleet Manager Wall DEF, DeWitt, Diesel Exhaust Fulid, fleet

Bookmark this and look at it a year from now. . .

Automotive Fleet Top News
EIA Short-Term Forecast Projects Lower Gas and Diesel Prices in 2012

November 10, 2011

WASHINGTON – The U.S. Energy Information Administration issued its short-term energy outlook earlier this week, projecting the price of oil, gasoline, and diesel through the end of the year and into next year.

For regular-grade retail gasoline prices, EIA said they have fallen 46 cents per gallon from their peak monthly average of $3.91 in May to $3.45 per gallon in October. EIA said this drop in prices is a result of falling crude oil prices and a normal seasonal consumption decline. The organization projects that average regular-grade retail gasoline price will increase to $3.54 through the end of the year but will drop to an average of $3.46 per gallon in 2012.

In terms of gasoline consumption, EIA said it expects it to shrink by 220,000 barrels per day (bbl/d), or 2.4 percent, through the end of 2011. In 2012, the organization said it is projecting growth of 40,000 bbl/d, or 0.5 percent, as highway travel increases and the U.S. economy grows.

For on-highway diesel prices, EIA projects $3.84 per gallon on average through the end of 2011 and a drop to an average of $3.79 per gallon in 2012.

In terms of the cost of purchasing oil for refiners in the U.S, EIA said it expects it to stay flat, around $100 per barrel through the end of the year and into 2012.

via EIA Short-Term Forecast Projects Lower Gas and Diesel Prices in 2012 – News – Automotive Fleet.

admin Fleet Manager Wall fuel prices 2012

While on a visit to an unnamed trucking company:

Stainless steel and high density polyethylene plastic are DEF compatible materials. For a complete list of DEF compatible materials, see ISO22241

Rag NOT Diesel Exhaust Fluid compatible material

Your main concern should be with maintaining product purity through a “closed” dispensing system consisting of DEF compatible components. The failure to do so will cost you far more in the long run than the immediate benefit you get from saving a few cents per gallon buying DEF from this week’s “cheapest” vendor.

Bobby Fleet Manager Wall

I recently received an email about a bill, (AB 1332), introduced to abolish CARB.  Assemblyman Tim Donnelly of the 59th District is the author. The bill is pretty simple, give the California EPA all the powers currently held by CARB and shut down that agency.

From a non emotional, non punitive, purely business side- hey it makes sense. Tough times, call for tough decisions. There are a lot of people still on the unemployment line.  Many of the layoffs focused on reducing redundancy and streamlining operations.  Sounds like a match to me.

Monday, April 25^th at 1:30 the Committee on Natural Resources will hear testimony on this bill.  If I was a betting man, I would not bet on its success to get out of committee.  Not because of the merit of the idea, but more because I have lost faith that our elective officials know how to be leaders. I don’t believe any of them will have the balls to open this line of discussion up for debate.  While this bill is about CARB, a subject close to my business, make it about education a subject close to my heart- we still need to have the debate, because we are going broke. Painful, some not so painful- AB 1332- but painful cuts are going to have to be made and we have created a governing body where no one is willing to sacrifice their lamb because they KNOW others won’t do the same. Instead of doing what is right for this state over the long run, they are worried about the here and now, and their own hide.  To make it worse, the average citizen has already given up and is going to let them get away with it.  

I am sending emails to the committee members anyway.  I believe our elected officials must know we expect results. Results that fix this budget mess and ones that make California the place to do business and a better place to live. Join me.

My Best, Mary

Mary Fleet Manager Wall AB 1332, budget, California Fuel, CARB, economic recovery, Tim Donnelly