Market Overview

California Freight Industry Braces For New Emissions Rules

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California Freight Industry Braces For New Emissions Rules

Amid a push from the Obama administration to significantly reduce the nation's carbon footprint, California Governor Jerry Brown announced his plans to aggressively reduce the state's pollution by enacting emission controls and halving petroleum use in automobiles by 2030. Brown called on several state agencies to create a comprehensive plan to achieve his lofty targets by July 2016.

A Big Change For Freight

California represents one of the U.S.' largest freight transport hubs and already boasts some of the strictest environmental restrictions in the nation. Every industry from trains to trucks to maritime ports will have to cope with the new standards, which may require costly new investments.

Related Link: Are Data Centers Worsening California's Drought?

Trucking Worries About Change

The California Trucking Association has expressed some concern over Brown's emission targets, saying that it could have a detrimental impact on the industry. In an effort to keep up with the growing push toward greener shipping methods, the Association said it has already invested around $7 billion on clean technology and shells out $1 billion annually to help reduce the industry's emissions.

Economic Impact

Some worry that strict restrictions regarding trucking emissions could be detrimental to the U.S.' economic recovery. Glen Kedzie of the American Truck Association cautioned that wide-scale restrictions on the industry will be more far reaching than those placed on passenger vehicles. He likened freight trucks to "mobile offices", saying that they are a vital part of a well-functioning economy.

Image credit: Randy Heinitz, Flickr

 

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