mikelnoppo03

mikelnoppo03

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Michael Manoppo

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California looks to ban all gas and diesel truck fleets

 

A controversial new proposal to ban diesel-powered trucks in California has sparked a divisive debate among the trucking industry, the state and environmentalists.

 

The California Air Resources Board has laid out an ambitious plan to eventually force all diesel truck fleets off the road, with varying timelines. This includes mandating that all new trucks operating around busy railways and ports be zero-emission vehicles by 2024; phasing out all diesel trucks from those areas by 2035; and eventually taking every diesel truck and bus fleet off California roads by 2045, where feasible.

 

The proposed Advance Clean Fleets regulation first targets the busiest trucking areas in the state-

 

around warehouses, sea ports and railways. The board says the pollution in these areas affects

 

communities disproportionately.

 

"Many California neighborhoods, especially Black and Brown, low-income and vulnerable communities, live, work, play and attend schools adjacent to the ports, railyards, distribution centers, and freight corridors and experience the heaviest truck traffic," the board wrote, adding that this pollution causes health risks to those communities.

 

At a recent hearing on the issue in Sacramento, over 150 public commenters voiced divisive opinions on the proposal.

 

Many representing the trucking and construction industries said that there simply isn't enough charging capability or grid capacity in the state to move fleets over to zero-emission vehicles so quickly. (The shift away from internal combustion engines in big rigs has largely moved to battery-powered vehicles, though hydrogen fuel cell technology is also being developed.)

 

"The infrastructure cannot be established in the timeframe given," said Mike Tunnell of the American Trucking Association. "Fleets will have to deploy trucks that cannot do the same job as their current trucks."

 

Others pointed to logistical problems in charging electric vehicles. "This will do damage to us. We don't really understand how to charge these vehicles," said construction company CEO Jaimie Angus. "Those pieces of equipment go home with those men every day, so they'll need to be charged from home? How do you compensate that person for that?"

 

Meanwhile, environmentalists, including a representative from the Sierra Club, urged that the timeline

 

be expedited to rid the roads of internal combustion engines sooner rather than later.

 

Currently, fewer than 2,000 medium- and heavy-duty vehicles in California are zero-emission, and the vast majority of them are buses, reports Cal Matters.

 

California is at the forefront of the shift away from fossil fuels to reduce the devastating effects of climate change. In August, the state made the historic decision to ban the sale of new gasoline-powered cars by 2035, a move that is expected to lead to a 50% reduction in pollution from cars by 2040. Meanwhile, many cities in wildfire-threatened wine country have banned the construction of new gas stations.

 

In your opinion, in a free society does a state have the authority to mandate what type of vehicle you're allowed to drive? Justify your opinion.

 

a.

b.

 

Do you think the timeline is achievable as given? Explain why or why not.

 

a.

b.

 

Do you think that the request from the Sierra Club to expedite the ban is realistic? Explain.

 

a.

b.

 

Is the electrical grid currently capable of supporting that much electric energy? What will have to happen to make it so?

 

a.

b.

 

Do you think this, if carried out, will have a significant impact on climate change? Briefly explain your position.

 

a.

b.

 

According to the article, what problem is there with truck drivers charging their trucks?

 

a.

 

Politicians often enact such mandates, getting credit for "caring about the environment," yet bear little responsibility for the technological progress necessary to make them happen. Essentially, they have no "skin in the game." Should they get credit without taking any risk? Explain why or why not.

 

A.

B.

 

Some politicians argue that the mandates that they pass moves society forward, leaving the creativity of the free market to figure out how to meet such mandates. Is this a fair process in your opinion? Explain why or why not.

 

a.

b.

 

Should progress come primarily from politicians or primarily from innovations in technology and entrepreneurs? Explain your position.

 

a.

b.

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Roy Bemmer, 54, has lots of concerns about his finances such as "should I chance taking

$5,000 and investing it aggressively?" and "How well am I able to retire at age 60 or 62?" Bemmer is also very concerned about unemployment. His income last year was $83,866, but he expects to earn only $27,000 this year. Earlier this year, he was downsized and

took early retirement in order to keep his medical benefits. He was also laid off previously in the late 1990s. Right now, he is living "paycheck to paycheck."

 

Bemmer is currently working in a series of temporary jobs with variable hours, so his monthly income is unpredictable. His financial goal for the near term is to save as much as possible for retirement and accumulate liquid assets in case he becomes unemployed again. Within ten years, he wants to purchase a new $25,000 vehicle and take vacations costing $3,000 to $5,000 per year. After that, retirement is on the horizon. Bemmer would like to live off his investments and Social Security.

 

Fortunately, Bemmer has accumulated significant assets to help achieve his goals. His net worth is $700,200. This includes $406,172 in a former employer's 401(k), $102, 413 in seven different mutual funds, $5,750 in savings and checking accounts, and $25,865 in

14 certificates of deposit. Approximately 90% of Bemmer's portfolio is invested in growth or growth and incomemutual funds, including five different Vanguard funds and five different Fidelity funds. Bemmer's $110,000 house is owned free and clear, along with $30,000 of property and a $20,000 car, and he has no other debts.

 

Bemmer's monthly expenses were not listed. He did note, however, that he put 15% of his salary, when he was working, into a 401(k). Currently, he invests all surplus funds in two Vanguard index funds. Bemmer's financial data is meticulously kept in a series of computer-generated tables. He is single, lives alone, and has no financial dependents.

 

As for insurance, Bemmer has $14,000 of life insurance. His former employer pays all but $24 a month toward the cost of major medical health coverage and he has $500,000 of auto and homeowner's liability. He has never had disability coverage and wonders if he should buy a long-term care insurance policy since he will have nobody to care for him when he gets older. Bemmer has a will that was last reviewed in 1994.

 

Give 5 financial recommendations

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