GAO wants incentives, review board for ’07 EPA regs

WASHINGTON, (March 19, 2004) — The U.S. General Accounting Office — an investigative watchdog to Congress — recently released details of its long-awaited review of the Environmental Protection Agency’s implementation of 2002 diesel engine emission standards and an impact analysis of an even tougher round of regs in 2007.

The report — titled “EPA Could Take Additional Steps to Help Maximize the Benefits from the 2007 Diesel Emissions Standards” — made several proposals that it hopes will help avoid some of the pitfalls the trucking industry experienced in 2002.

The GAO stated that — although the consent degree bestowed on engine manufactures accelerated cleaner diesel to reduce emission levels earlier than originally planned — the standards also had a disruptive effect on most of the trucking companies and engine
Manufacturers.

The GAO’s main concern is another pre-buy phenomenon similar to the one the industry experienced the year leading up to the October 2002 regulations. During that time, many carriers inflated the market by purchasing existing models not affected by the rules before the October deadline. The report also stated the GAO would like to see the EPA take steps to ensure carriers have ample time to test the ’07 engines before the next round of regs take effect.

A major GAO recommendation to the EPA asked the agency to consider creating an independent review panel that would explore, among other things, the possibility of financial incentives for truckers to offset the high compliance costs of the stringent ’07 emission rules. Financial aid could come in the form of tax credits or tax benefits gained through accelerated depreciation of new engines.

The report stated the review panel would analyze “the data EPA has already collected or new data from the engine and fuel industries to measure the progress of technology development, communicate this to all stakeholders, and determine what, if any, additional actions, such as incentives, are needed to ensure that standards are met.”

In response, the EPA did not warm to the proposal. Although it supports financial incentives, the EPA said such an initiative is not the agency’s responsibility, and that it does not see a need to convene an independent technology review board.

The entire report can be downloaded at www.gao.gov