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

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

Dear Customers, Coworkers, Vendors, Family and Friends,

As you prepare to vote next week, please remember our battle in California is to stay financially upright and competitive.  Do not forget that if we don’t hold the legislature accountable, we will have ourselves to blame.  We must fight this battle on all fronts, let’s start with these two:

CARB’s Science is Wrong- Again!

CARB, by their own admission, significantly over-estimated diesel emissions. The recession has created additional reductions with the change in economic conditions since 2008.

• CARB used poor data and inappropriate assumptions in reaching their 2008 emission estimates.
• CARB over-estimated off-road emissions by 340%.
• CARB admits it over-estimated on-road emissions by about 30% and Sierra Research believes another 25% reduction is needed.

After questions arose about the internet “credentials” of CARB’s experts, CARB promised to do an independent report. Instead they relied on a previously prepared EPA document.  With that:

• Premature deaths went from 19,000/year (CARB study) to 9,200/year (EPA study), for ALL PM 2.5 emissions. Diesel makes up about 25% of PM 2.5 emissions.
• Margin of error in EPA study is 2,000 deaths.
• 25% of 9,200 are about 2,300 deaths, so the diesel-attributable deaths are close to the margin of error.

Should we have to retire vehicles before the end of their useful life at half their value? Based on faulty and misleading data? Can the businesses and people of California afford it? Communicate with CARB and your elected officials- the diesel truck rule must be reevaluated NOW.

YES on Prop 23, Saves Jobs

The passage of Prop. 23 will allow California to focus on job creation and economic recovery. It will do so without jeopardizing environmental quality because the state’s strict air, water quality and environmental protection laws will remain in place. It is vital to our employees, our company, and our industry that voters say Yes to Prop. 23 in the November Election. I encourage you to visit www.yeson23.com to learn more about why Prop. 23 is crucial to our business, the state of California and you.

With a persistently high unemployment rate (currently 12.3%) and a $20 billion budget deficit, California can’t afford AB 32’s costly regulations that will lead to even more job losses. As an employer in California, it would be irresponsible to sit back as a passive observer when a better alternative is available. Prop. 23 will save approximately 1.1 million California jobs jeopardized over the AB 32 implementation period (2012-2020) and prevent higher energy costs. Studies show that Prop. 23 will stop the following:

• Up to 60% higher electricity rates
• Up to a 57% increase in natural gas costs
• $3.7 billion a year in higher gasoline and diesel costs
• $143 billion cap-and-trade tax

Remind your coworkers, competitors, family, and friends:  our elected officials allowed this to happen, so let’s hold them accountable.

Thanks again each of you for working hard on this crazy situation.

Now VOTE!!!!

John DeWitt

admin Fleet Manager Wall AB32, CARB, PROP 23

Does anyone have a bugle?  I need to borrow a bugle, take some lessons, grab the music for Taps and then off to our cardlocks where today we laid the hold open latches on our gasoline nozzles to rest.  As you stand, next to your car filling it up with the world’s cleanest gasoline, you can thank VST out of Springboro, Ohio and the California Air Resources Board.  Hold tightly, don’t let go of the handle, don’t walk away, because that clean gasoline will stop flowing into your car.  Just stand there, squeeze with all your might and watch the gallons click by, watch the dollars click higher, and thank CARB and VST when you notice one of them keeps right on clicking even higher tomorrow, next week and next year. 

Until regulators are held accountable for their mistakes. Until they must actually PAY for these mistakes,  (oddly they have not offered to reimburse us for the nozzles they said we must use and no longer can use)  we will continue to have bureaucrats create rules to maintain their jobs. Rules that have very little added benefit to us the citizens, AKA their bosses, and often times rules that do more harm than good.

Come with me little one. Grab some hot coco on this cold Southern California day, snuggle up to some global warming and stay awhile. I will tell you the story of our dearly departed MTBE, mandated not too long ago…

My Best, M

Mary Fleet Manager Wall CARB, DeWitt, diesel, EVR, MTBE, Nozzle, VST

Ok, hang on a second…I will be right with you…one more second…whew, who knew wrestling the soap box away from my dad would be such hard work.  Here it is and here I stand.  It has been some time since we have had much of interest to rant, I mean talk, about, but leave it to the California Air Resource Board , to strike again.

Many of you will remember that gas stations around the state had to “upgrade” their vapor recovery system by April of 2009 in order to catch a minute amount of additional vapors at the pump.  As part of this upgrade we were required to install CARB “certified” nozzles. Not to bore you but, there were two possible systems certified to meet the requirement, the balance system was installed in 30% of the stations and the only nozzle certified for use with that system was made by a company named VST. 

So when a mandated, certified, “commercially available”, more expensive, lesser warranted nozzle does not work….Well, you go to the other certified nozzles, right?

Ahhh, my mistake there is no other certified nozzle that works with the balance system….So now what do gas station operators have to do with the 35,000 nozzles in CA?  Well according to CARB and the State Fire Marshall, we have to remove the hold open latches on our existing $300 nozzles. We can then get in line to turn those nozzles in for $100 credit towards a $300 newly “certified” nozzle.

In the mean time, as of October 15^th, 2010,  every one of us trying to fuel at an affected station will have to stand by the tank and hold the nozzle open…

As if we didn’t hate to get gas enough…

My Best, Mary

Mary Fleet Manager Wall California Fuel, CARB, fuel price increases, fuel purchases, Gas Stations, Vapor recovery, VST