Legislative Bulletin - October 5, 2009

TRALA Argues Against Lessor Liability for CA SmartWay Compliance

Lessors should not by default be considered the owners of leased vehicles operating in California for purposes of complying with the California Air Resources Board (CARB) SmartWay rule to reduce greenhouse gas emissions. In written comments submitted to CARB on Friday, October 2nd, TRALA makes the point that owners of rented and leased vehicles have little control over where their customers operate their tractors and trailers. Given the fact that motor carriers rent or lease trucks in other states and then operate them in California, sometimes without the knowledge of the rental or leasing company, TRALA suggests that the responsibility for compliance should be placed on the registered operator of the vehicle rather than on the lessor.

TRALA submitted comments to the California Air Resources Board (CARB) in response to the board’s proposed modifications to the heavy-duty vehicle greenhouse gas (GHG) emission reduction measure. The CARB published the proposed modifications on September 17, 2009 and allowed a 15 day period for public comments. The changes proposed on September 17 would change the definition of “owner” regarding leased and rented truck tractors or trailers operating in California. The proposed changes would render lessors responsible for compliance with SmartWay mandates unless specific language dictated by CARB was included in rental and lease contracts. TRALA argues that it should be up to lessors and lessees to determine the most efficient and effective allocation of compliance responsibilities through contractual language tailored to fit each specific situation. To see the CARB-proposed changes in the definition of owner and the required contractual language for rental and lease contracts, please click here.

TRALA is supportive of reasonable efforts to limit GHG emissions, as is stated in the comment letter to CARB. However, CARB regulations that enforce heavy duty vehicle GHG emissions requirements must account for the realities of truck tractor and trailer renting and leasing, the operation of those vehicles in interstate commerce, and the ability for lessors to contractually define responsibilities for compliance with their customers. To see a copy of the letter submitted by TRALA to the CARB, please click here.

For more information about the CARB’s heavy duty vehicle GHG emissions regulations, please contact TRALA’s Tom James at tjames@trala.org of (703) 299-9120.