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Thousands of fleets denied registration in California

Thousands of fleets denied registration in California - VTC News

In 2020, a formal standard will be enforced by the DMV where any 2004  model year or older model year diesel vehicle with a GVWR of 26,000  pounds or less will be denied registration as of January 1. Heavier  diesel vehicles with a 2000 model year engine or older will also be  denied.

“It is a perfect storm” according to Matt Schrap, VP of Government  Programs for Crossroads Equipment Lease and Finance. “Hundreds of fleets  have received letters in the mail telling them they can’t register  their truck, the main thing I hear from these folks is, ‘I had no  idea.’”

Currently, fleets are being prevented from registering vehicles that  have been tagged by CARB for non-compliance. This is any heavy-duty  diesel truck over 26,000 pounds GVWR that is not equipped with a diesel  particulate matter (PM) control device from either Original Equipment  Manufacturer (OEM) or an aftermarket provider.

2008 through 2010 trucks equipped with 2007-2009 engines have factory  installed PM Devices, these OEM equipped trucks are legal to operate in  California until January 1, 2023 when the final standards kick in for  the CARB On-Road Rule.

In the interim, vehicles older than 2008 will have had to install an  aftermarket PM device on any 1996-2006 engines to comply starting in  2012. Vehicles with a GVWR of 26,000 pounds or less have had to turn  over directly to 2010 model year engine standards which became available  for purchase in the 2011 truck model year. (See Tables Below).

Compliance Schedule

Truck & Bus Regulation Engine Requirements Timeline

For fleets that did not install the aftermarket devices for  compliance are now having their registrations denied and are facing  increased liability from audits performed by CARB for compliance.

According to the CARB enforcement settlement website it is not  uncommon to see hundreds of thousands of dollars in fines tagged on a  single fleet. Thousands of dollars in fines can be levied against a  single vehicle for several separate rule violations. When fleets have  multiple units that have been out of compliance for several years it can  be devastating.

“We have seen good companies left with very few options when it comes  to CARB compliance. With the upcoming Registration ban, it is going to  get ugly.” Added Schrap who has been working with fleets on CARB  compliance and rule development for close to 15 years. “We here at  Crossroads and our Velocity Truck Center partners have done all we can  to promote the varying opportunities for truck turnover incentives and  government guaranteed financing, It’s not all bad when it comes to the  in-use rules.”

For those fleets who met the schedule for compliance through  retrofitting or the purchase later model year trucks, grants and  incentives have helped propel many companies well past the compliance  dates. Program such as Proposition 1B and the Carl Moyer Program have  replaced thousands of older diesel vehicles with new, clean diesel and  alternative fuel platforms.

With the final set of standards drawing closer, fleets have been  searching for specific direction in how to navigate the CARB  requirements. Companies like Crossroads Equipment Lease and Finance, the  top lender in the On-Road Heavy Duty Vehicle Loan program administered  by the state treasurer’s office, have invested in resources to help  fleets achieve compliance or interface with CARB though any pending  enforcement actions.

A list of participating on-road loan program lenders is available  from CARB, but the agency does not provide any endorsements or  recommended pathways for compliance assistance. According to Schrap,  “The state can’t give a gold star to their lending partners or the  “consultants” who claim CARB expertise. However, our record speaks for  itself, with close to a quarter of all enrolled loans having been  originated and enrolled by Crossroads since the program’s inception,  along with the millions in incentive funds we have secured, I’d say the  choice is obvious, and when you speak to one of our team members, you  will know why.”

When asked for any final thoughts on the upcoming standards, Schrap  simply added, “All of the standards and programs and acronyms can be  very confusing, Crossroads is here to help”.

For more information on the on-road loan program, or upcoming CARB standards, visit www.cafleets.com.  To learn more about Crossroads Equipment Lease and Finance, or to speak to Mr. Schrap or one of the team members about your fleet, visit www.crlease.com or call 877-594-2880.

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