Comment Log Display

Date 12/10/08

Governor Arnold Schwarzenegger
Members, California Legislature 
California Air Resources Board
(Address)
(Address)

Dear Governor Schwarzenegger or
Members of the California State Legislature or CARB:

The California Air Resources Board (CARB) is currently considering
the adoption of an on-road diesel truck and bus regulation that, if
implemented as presently drafted would have a profound, negative
impact on California’s economy. 

I want to be clear: GSC Logistics, Inc. is very supportive of
reducing particulate matter (PM) and NOx emissions from diesel
engines.  There is no disagreement that we need to work
collectively to improve the state’s air quality and all of us want
to provide as healthy an environment as possible for our families,
our employees and all Californians.  However, in its current form,
the Board’s proposed regulation places a significant economic risk
on our business today, jeopardizes our future viability in the Port
Drayage industry, which is already reeling from unprecedented
financial turmoil. 

CARB is proposing this multi-billion dollar regulation during the
worst economic crisis since the Great Depression.  California
truckers, construction companies and bus operators are struggling
to make ends meet in the face of a massive slow down in the
construction sector due to falling home prices and home
foreclosures, declining consumer confidence and spending and a
freeze in the credit markets.  Today there is virtually no access
to capital for businesses, large and small.

Companies like mine are being asked to dispose of equipment and
assets before their useful life has been completed and purchase new
equipment before it would otherwise be acquired. A combination of
this proposed rule and the state of the economy have left the
trade-in or resale value of our equipment worth pennies on the
dollar. My company and others like us simply don’t have the
resources or access to capital to retrofit our engines.  Some of us
may be forced to sell off our trucks at a loss or shutter our
companies’ doors, ultimately costing jobs and revenue to the
state’s economy. 

Many of California’s trucking companies have already begun the
process of retrofitting or replacing their fleets, whether in the
normal course of their business cycle or in anticipation of these
regulations.  However, the smaller owner/operators – those with
fleets of five trucks or less – who make up more than 55 percent of
all trucks registered in the state, will be severely hampered by
the costs of retrofitting or replacing trucks that, in some cases,
are the sole assets of their family-owned businesses.  

Given the multi-billion dollar cost of this regulation – and the
current volatile economic environment  - I urge you to support the
alternative proposal proposed by the Driving Toward a Cleaner
California (DTCC) Coalition that would give companies like mine the
opportunity to comply in the most reasonable timeframe and flexible
manner possible while still attaining aggressive emission
reductions. 

In fact, CARB’s own analysis of our DTCC alternative confirms that
the DTCC alternative proposal achieves roughly similar emissions
benefits to the proposed regulation in the long-term.

We must be careful not to forfeit California’s economy and ability
to move goods across the state, build construction projects and bus
our children to and from school for the sake of protecting our
environment. We look forward to working with you, CARB,
environmental organizations, the Legislature and other stakeholders
to accomplish these goals.

In addition the Private Fleet rules vs the Drayage rules are in
conflict.  Many owners and owner operators purchased 2004 newer
trucks which should qualify up through 2013 based on the Drayage
truck rules.  The differences in the two rules are in conflict. 
The Private Fleet rule decreased the time allowed on a 2004 vehicle
to operate.  This increases the cost to the owner whom purchased
under the Drayage rules.  A 2004 truck costs in the range of $45K,
which many operators have purchased expecting to be compliant up to
2013.  This is now not the case under the Private Fleet rules. 
Consistency in the rules and the agencies is of paramount
importance.  Again we urge the adoption of the proposal of the
DTCC.  

Sincerely, 




John Baudendistel
Controller 
GSC Logistics, Inc.




530 Water St., 5th Floor, Oakland, CA   94607   
Phone:510.844.3717  FAX:510.844.3818