ARB plan could hurt sales of used forklifts

News Story
- 28 Oct 2010 ( #485 ) - Sacramento, CA, United States
2 min read
The California Air Resources Board (ARB) aims to complete work on another enforcement extension for diesel emissions during a 16-17 December meeting, and the agency hopes the changes will help the forklift and other off-highway-vehicle industries in working toward compliance. A concern within the forklift industry involves the ability to sell used equipment.

Sacramento-based ARB and the trade organisation Associated General Contractors of America (AGC) reached an agreement on 7 October on several changes (Forkliftaction.com News #483).

Diesel forklifts account for about 15%, or roughly 22,500, of the reported diesel off-road vehicles in California, according to Karen Caesar, ARB information officer.

With regards to diesel forklifts and future sales of used ones, ARB says it expects to propose a ban on adding Tier 1 diesel forklifts that would start in 2012 for medium and large fleets and in 2016 for small fleets, according to Caesar. That equipment would only be saleable in a limited market for private or agricultural use. The agricultural industry is not subject to this regulation.

AGC sees a tighter market for used equipment. "The rule will have restrictions on vehicles that can be added to a California fleet," says Mike Kennedy, general counsel of Arlington, Virginia-based AGC. "There will be no restrictions on equipment outside California, but there will be limitations on equipment within the state. . . . Owners of such equipment would be forced to sell it outside California."

ARB and AGC representatives have worked toward reaching reasonable and economically viable solutions since the emissions rule's 2007 passage. Those efforts would include delaying implementation of fleet average requirements until 1 January 2014.

In a miscue, ARB's staff overestimated the pollution that forklifts, construction equipment, buses and trucks produce. The agency's miscalculations led to proposed changes with new estimates being presented in workshops in late August and early September prior to setting up the current agreement with AGC.

The process continues. "ARB staff will release its recommendations for further amendments to the rule, and those will be out in public domain for comment for a period of at least 45 days," Kennedy informs Forkliftaction.com News. "The board will convene in December for an up or down vote."

Kennedy notes the difficulties. "There is a great deal of misunderstanding that has plagued this entire process," he says. Within the business community, "AGC is alone in taking the lead on this issue."

Kennedy is taking a positive approach. "We are optimistic the proposal will be something the industry can live with. We hope to get it as close to normal (equipment replacement) cycle as we can."
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