New Regulations Affecting Diesel Engines and Diesel Fuels Went Into Effect January 1, 2007

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New Federal regulations mandating cleaner diesel engines that went into effect January 1st are already having a wide ranging impact across the trucking industry. In anticipation of the new regulations requiring the redesign of diesel engines, truck manufacturers produced the largest number of diesel trucks in history during 2006. Cleaner diesel fuels available since October will reduce the pollution emanated from engines, however the full impact of the EPA regulations will not be realized for decades. How the new regulations will affect small businesses associated with the trucking industry and the economic impact on consumers remains to be determined.

New Federal regulations mandating cleaner diesel engines that went into effect January 1st are already having a wide ranging impact across the trucking industry. In anticipation of the new regulations requiring the redesign of diesel engines, truck manufacturers produced the largest number of diesel trucks in history during 2006. Cleaner diesel fuels available since October will reduce the pollution emanated from engines, however the full impact of the EPA regulations will not be realized for decades. How the new regulations will affect small businesses associated with the trucking industry and the economic impact on consumers remains to be determined.

Since the advent of the Environmental Protection Agency (EPA) in 1970, America has been focused on insuring that our environment is being protected from the many pollutants that have been spewed out as a result of our industrialized economy. New regulations affecting diesel engines and diesel fuels went into effect January 1, 2007. Most consumers are unaware of these changes, but they will be affected.

Typical of the many small businesses that will be affected by the new laws is Jim McCormack, owner of the Internet site TruckerToTrucker.com. His business specializes in sales of commercial diesel trucks and the specialized equipment that is required by truckers. Business is brisk now as there are many big rig buyers and sellers. However, there are many questions that need to be answered to assess the full impact on the market for used vehicles. McCormack, like most businessmen, does not like uncertainty, but it seems like he will have to deal with it for at least several years as changes occur in the diesel engine arena.

These regulations are essential for insuring that the air we breathe is not toxic and there are many benefits that will be realized as a result of this legislation. It is a certainty that the economic activity surrounding the trucking industry will be impacted by these changes, yet exactly where those impacts will be felt is ill defined. Fuel costs will rise and initial reports are not encouraging about the fuel efficiency of the newly designed diesel engines. Maintenance costs for the newer diesel engines will certainly increase as will the cost of new vehicles.

McCormack is philosophical in his approach to the new regulations. He states, "I, welcome cleaner air just like every other citizen. The challenge is that I need to be able to anticipate how these new laws will affect my customers and my business so I can insure that TruckertoTrucker.com continues to satisfy the interests of the thousands that rely on our services."

Since virtually 100% of consumer goods are distributed by vehicles that use diesel fuel it is obvious that the costs of these necessary changes will be borne by the consumer. The exact impact can not be fully assessed until the end of 2007 when economists can factor in the many variables that will be used to measure the results.

There will also be an impact on jobs and the sale and resale of commercial trucks. Since sales of new vehicles with the unimproved engines set a record this year, it is guaranteed that these vehicles will continue in service for at least a decade or perhaps more. Everyone is happier with cleaner air standards, the difficulty is attempting to analyze what business decisions must be made to leverage the economic impact of the changes. One can be assured that Jim McCormack and the staff of TruckerToTrucker.com are carefully monitoring developments.

Contact:

Jim McCormack

Trucker To Trucker LLC

800-240-5811

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