California Chamber of Commerce Says Diesel Should Remain Viable Fuel Alternative.

Business &News Editors

LOS ANGELES--(BUSINESS WIRE)--Jan. 27, 2000

California Chamber Vice President, Government Relations Jeanne Cain today testified before the California Air Resources Board (CARB) on its proposed rule to require public bus fleets to use cleaner burning diesel and alternative fuels.

Cain told the board that although the rule they were discussing specifically applied to operators of transit and urban buses, &uot;the proposal did have universal impact since every aspect of California's economy relies on some use of diesel.&uot; If adopted, CARB's proposed rule would allow local transit agencies to choose between clean diesel and alternative fuels to power public buses.

&uot;We agree with CARB's 'dual pathway' approach and believe clean diesel can contribute to a reduction in fuel emissions,&uot; said Cain. &uot;We believe today's action not only addresses urban buses, but it also sets the tone for how the state plans to regulate diesel emissions statewide. It is important to make sure that any policy mandating a switch from diesel to alternative fuels looks at the larger picture and the economic implications.

&uot;Ultimately, we believe reductions in diesel emissions are important to achieve clean air, but should be done in a way that does not jeopardize the state's economic base or place us at a competitive disadvantage with other states. We believe standards should provide flexibility while getting the most 'bang- for-the buck,'&uot; Cain said to the board.

Cain stressed that CARB should continue to study the economic impacts, including infrastructure and consumer costs, of using both clean diesel and alternatives fuels.

Cain also urged CARB to set an overall state policy as it relates to meeting diesel fuel and alternative fuel standards. Attempts by local agencies to develop separate standards ignores the public policy imperative that agencies not pick a particular technology winner, but rather set the goal and let all technology compete to meet it.

Ignoring a dual path approach defeats the objective of reducing fuel emissions if an operator forgoes purchasing any type of clean fuel vehicle due to cost considerations. Cain noted the incremental cost of converting buses to natural gas range from $35,000 to $70,000.

Cain cautioned CARB not to get too far ahead of what is happening at the federal level where there continues to be debate about sulfur levels in diesel fuel. The business community supports the use of clean fuels but is concerned that a separate California standard on low sulfur may be premature.

Flexibility is also needed, Cain argued, so that future rules applying to other diesel uses in trucks, cars, etc., allow the sulfur levels to be adjusted to conform to national standards. Setting a separate state standard would isolate California from the rest of the nation and put it at a competitive disadvantage.

Finally, Cain reiterated the business community's support for the Carl Moyer program and similar programs that provide grants to businesses to replace or retrofit old diesel trucks.

The California Chamber leads Californians for a Sound Fuel Strategy, a coalition of businesses, trade associations and labor groups working to help develop a reasonable and cost-effective approach for regulating diesel exhaust emissions from stationary, portable and mobile source diesel fueled engines.

The California Chamber is the largest broad-based employer representative in California. Membership is nearly 12,000 and includes firms of all sizes and companies from every industry throughout the state. The California Chamber also offers publications and services to help California businesses comply with both state and federal employment law. The California Chamber also promotes international trade and investment in order to stimulate California's economy and create new jobs.