Sunday, October 11, 2015

Estes is Fined by EPA for Air Violations - Another Volkswagen?

I just saw an interesting news article stating the EPA has fined Estes $100K (Plus Estes has to pay another $285K in projects) because they violated the California Truck and Bus Regulations.  From the news article:
"EPA Regional Administrator Jared Blumenfeld said Estes violated the California Truck and Bus Regulation dozens of times between 2012 and 2014.
The regulation, adopted in 2009, requires that all commercial heavy diesel trucks and buses operating in the state be equipped with diesel particulate filters (DPFs), which limit toxic emissions."
In light of the Volkswagen issues where the car company clearly violated environmental laws on purpose, I think we are going to see a lot more of this.  As we all know, with regulations companies take "calculated risks" and one of them appears to be around meeting environmental regulations.  My advice to compliance departments is they may want to tighten up what they are doing.

There were also two very important items embedded in the article and the first one has to do with sub-contractors to Estes:
"In reaching the settlement, Estes cooperated with federal investigators, admitting that the company or its subcontractors in California operated more than 80 trucks between 2012 and 2014 that were not equipped with diesel particulate filters"
What is fascinating in that statement is they are taking direct responsibility for their sub contractors. So, one way "around" the laws is not to just broker freight and say it is their fault.  Looks like Estes will own that liability too.

Finally, the article states:
"Sax said this was “the first of many cases” the EPA and CARB will bring against trucking companies in order to enforce the California Truck and Bus Regulation.
Blumenfeld confirmed the EPA has been investigating out-of-state trucking companies operating in California since the spring of 2014."
If that is not a direct statement of intent, I do not know what is.  Clearly, companies had better be careful with what they are doing in California and I would suspect you will see a lot of new trucks headed West soon.

I think the regulators are getting emboldened as they are finding more and more of this abuse. There also was a case against Samsung where they had defeated the Energy Star ratings in refrigerators and in that case had to compensate every consumer. We all know of the troubles International / Navistar has had.

If I were at a trucking company I would be less concerned about "more regulation" and far more concerned about whether my company was meeting requirements in the first place.  

Companies Mentioned in This Article:

  1. Estes Express Lines
  2. Volkswagen
  3. Samsung
  4. CARB - California Air Resources Board
  5. EPA - Environmental Protection Agency

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