GAO Urges EPA to Weigh Engine Incentives

Agency Proposes Independent Review Panel, Warns of Large 2007 Pre-Buy
Click here to write a Letter to the Editor.

he General Accounting Office recommended last week that the Environmental Protection Agency explore government financial incentives for diesel engine makers and trucking firms to help fleets buy the new models required to meet tougher air quality rules in 2007.

GAO also warned, in a report to lawmakers, that the industry could face an even greater “pre-buy” of older models by fleets than took place ahead of the 2002-04 EPA rules that roiled the truck equipment market over the past two years.

GAO is the investigative arm of Congress.



That last round of toughened EPA standards on truck diesel emissions severely disrupted both the truck manufacturing and trucking businesses, and stricter rules scheduled for 2007 could cause even more problems, GAO said.

The report said it was in the nation’s interest to be sure motor carriers buy lower-emission engines in 2007, but that financial incentives might be needed and EPA should “play a role.”

While GAO said “Congress must provide the agency direction and funding,” it urged EPA to drive the issue by “making the initial proposal for incentives or helping to determine their merits and costs.”

Because motor carriers wanted to avoid buying new and largely untested diesel engines in 2003, they made their truck purchases early, disrupting normal manufacturing schedules and adding to carriers’ costs, the report said.

For the full story, see the March 15 print edition of Transport Topics. Subscribe today.