California Construction Trucking Association (CCTA)

There is a shared responsibility throughout the supply chain

CDTOA member truck owners and brokers alike must be aware of CARB requirements relating to reporting and complying with the CARB Truck & Bus Rule. Similar to the federal Superfund legislation that created “potentially responsible parties,” non-compliance with CARB requirements can lead to fines and penalties throughout the supply chain. Brokers, licensed motor carriers (LMCs), shippers, and those that regularly dispatch trucks (including contractors and material producers) may find themselves at odds with CARB enforcement if they are not careful to make sure the trucks they utilize are in compliance with environmental regulations. The language is very broad; it specifies that any California resident who operates or directs the operation of any vehicle subject to this regulation shall verify…“compliance”… with this and all other related regulations. Also see Section (x)(2) below.

I attended the September 8th Truck Regulations Advisory Committee (TRAC) meeting to work on the implementation issues for the Truck and Bus Rule.  Several items were clarified, including the following:

• All fleet sizes must report by 1/31/2012 in order to obtain a compliance certificate or claim any credits or extensions under the rule,
• CARB has teamed up with the CHP and DMV to perform “holds” or impounds on hundreds of trucks this year,
• CARB will require “diligence” from shippers and dispatchers to obtain compliance certificates from truck owners and shippers, motor carriers and truck owners can be cited for noncompliance with the Rule, and
• The CARB 1-866-6DIESEL hotline has taken over 17,000 calls from affected truck owners.

Definitions and Rule References

The following reference relating to truck owners, brokers, shippers, even dispatchers and customers is from the 85-page rule text. CARB staff informed us that they are beginning to take enforcement action against brokers operating under older rules such as the drayage truck rule.

Section (x): Compliance Requirement

(1) The vehicle owner shall comply with all applicable requirements and compliance schedules set forth in this regulation.
(2) Any in-state or out-of-state motor carrier, California broker, or any California resident who operates or directs the operation of any vehicle subject to this regulation shall verify that each hired or dispatched vehicle is in compliance with the regulation and comply with the record keeping requirements of section 2025(s)(4).
(3) Compliance may be accomplished by keeping at the business location or in the vehicle a copy of the Certificate of Reported Compliance with the In-Use On-Road Diesel Vehicle Regulation for each fleet.
(4) Any contract that a lessor and lessee enter into that has an effective date of January 1, 2010 or later shall clearly specify whether or not the leased vehicle is to be excluded from the lessor’s fleet for the duration of the lease, or the responsibility will be that of the lessee.”

The referenced section 2025(s)(4) from above states,“ Bills of lading and other documentation identifying the motor carrier or broker who hired or dispatched the vehicle and the vehicle dispatched.” So, this is what they will use to identify your broker business.

Also note that, “Except personal, non-commercial, unregistered motor vehicles, or vehicles otherwise not required to obtain authority to operate, the following is required for all fleet owners who elect to utilize the…exemptions, delays, and extensions provisions of sections 2025(p) [i.e. the “low mileage construction truck” time extension]:

(A) A valid California motor carrier of property number;
(B) A valid identification number assigned by the United States Secretary of the Department of Transportation;
(C) A valid operating authority number issued by the Public Utilities Commission; or
(D) Other applicable valid operating authority number approved by the Executive Officer.

Reporting for Small Fleets

For fleets complying using the phase-in option for small fleets of section 2025(h), the fleet owner must provide the following information about all vehicles in the fleet:

(A) Owner information listed in sections 2025(r)(5) through (7), and
(B) Until January 31, 2014, the vehicle information listed in sections 2025(r)(8) items (A) through (J), and starting January 31, 2014, all the information listed in sections 2025(r)(8) through 2025(r)(10).

Section (z) Non-Compliance

Any person who fails to comply with the general requirements of this regulation, who fails to submit any information, report, or statement required by this regulation, or who knowingly submits any false statement or representation in any application, report, statement, or other document filed, maintained, or used for the purposes of compliance with this regulation may be subject to civil or criminal penalties under sections 39674, 39675, 42400, 42400.1, 42400.2, 42402.2, and 43016, of the Health and Safety Code.”
Source: The Health and Safety Code sections referenced allow penalties from $500 to $100,000 depending on the nature and severity of the offense (see www.leginfo.ca.gov/cgi-bin/displaycode?section=hsc&group=42001-43000&file=42400-42410) and the CARB website at: www.arb.ca.gov/msprog/onrdiesel/regulation.htm

Analysis

The following are takeaways from the rule references:

1. Truck owners must report as required within the regulation.
2. Truck owners with current leases or who are considering leasing should know that if there is no provision in the lease agreement requiring the lessor to make the truck compliant, then the responsibility is on the lessee.
3. All licensed motor carriers (LMCs), California brokers and dispatchers, and California customers need to obtain the Certificate of Reported Compliance.
4. Truck owners that cannot produce a Certificate of Reported Compliance will be prohibited from working legally after January 31, 2012 (the reporting deadline).
5. “Low-mileage construction trucks” must document the January 1, 2012 odometer/hubodometer reading and stay below the applicable mileage.

Conclusion

The CARB Truck & Bus Rule will require compliance steps throughout the construction materials supply chain. The rule assumes that the supply chain will pass through to the consumer the increased cost of compliance from retrofitting to replacement and even the recordkeeping burden.

As noted above, all aspects of the supply chain have some responsibility to comply.