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Looking at Both Sides of the Ultra-Low-Sulfur Diesel Debate

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Our industry is on the frontlines of a "green" awakening. Even as American consumers continue to demand the products and services that the trucking and transit industries provide—from household goods to office supplies to mass transportation—there is also a push for these industries to reduce their environmental footprint. Subsequently, on the first of this year, regulations went into effect requiring that newly built engines use ultra-low-sulfur diesel (ULSD) fuel.

ULSD, which hit the markets in October of 2006, is estimated to reduce particulate emissions by up to 98%. But for those in the trucking industry, the reduced environmental impact comes with a steep price tag: new engines could add as much as $12,000 to the price of new over-the-road trucks, which can already cost as much as $100,000. Such a dramatic price increase will no doubt be leveled by increased prices for goods, services, and transportation.

As USA Today reported in December ("Cleaner diesel engine rules take effect," December 29, 2006), many trucking and transportation operators and owners responded by either rushing to purchase new trucks before the new regulations were enacted or postponing their purchases altogether.



An argument could be made that such a business decision flies in the face of our responsibility to be good corporate citizens, good stewards of our communities' air quality, but I'd like to inject a different perspective into the discussion.

We believe that keeping pre-2007 trucks in operation is not only a smart business decision but also a good environmental one. It's an adage in the environmental community that having a car is the single worst thing an individual can do for the environment. The manufacture and subsequent disposal of the vehicle causes many times over the amount of pollution that the operation of the vehicle does.

Those who choose to stick with their older trucks for business reasons are also reducing pollution of all types, even if the older trucks do emit more of a particular type of air pollutant than the post-2007 trucks do. And if "green" technologies are applied, the impact is even more dramatic. For example, a truck with a Cleantechnics International bypass filter can gain as much as 5% in fuel efficiency; extend engine life by more than 20%; and multiply the distance between oil changes by a factor of more than 20, while reducing associated waste oil by the same amount. For a fleet owner of 50 trucks, this could mean an oil savings of as much as 100 barrels a year.

In addition, the CTI filter system is transferable from one truck to another so that, as owners eventually dispose of their pre-2007 trucks, they can continue their oil savings and enhance pollution reduction with their new vehicles.

In addition to being great for the environment, these impacts are also great for the truck or fleet operator's bottom line. While the ULSD regulations tack additional costs onto already-slim profit margins, "green" technologies such as ours can actually save money for trucking and transit companies. For the same 50-vehicle-fleet owner, the installation of CTI filters can lead to savings of more than $30,000 per year, thanks to reduced oil and filter costs, driver and equipment downtime, and expenses in service labor.

Ultimately, we believe that the ultra-low-sulfur diesel regulations create an either/or dilemma: either we address important environmental concerns, or we pay more to transport essential consumer goods and provide quality mass transportation. But we also believe that "green" approaches and sound business decisions need not be mutually exclusive. By delaying purchase of 2007 trucks and utilizing environmentally sound after-factory technology, those in the trucking and transit industries can not only serve our business needs but also fulfill the intent of these and other upcoming environmental regulations.

Corporate responsibility has, for too long, been considered little more than a strain to the bottom line. But by keeping an open mind to available technologies and an eye on the overarching goals of environmental regulations, corporate responsibility and smart business practices can work together to build stronger businesses and thereby continue to provide the American public with the goods and services they have come to expect from our industry.

About the Author

Ritchie C. Russell is a founder and CFO of Cleantechnics International, a company which offers a revolutionary oil and hydraulic fluid filter system. Russell has spent much of his professional life in marketing and product development for high-grossing companies such as Lee Apparel Co., Kayser-Roth, and Haggar Apparel Co. While working with these companies, Russell was instrumental in dramatically increasing sales while decreasing costs through supplier negotiations and reevaluating essential processes for improved efficiency.

Since joining the founding partners of CTI, Russell has helped raise more than $3 million in start-up investments, secured the patent and trademark for the company and its technology, and developed and implemented the advertising and marketing plan.

Russell earned his bachelor's degree in marketing from the University of North Carolina at Chapel Hill, having paid his tuition by managing the campus bowling alley and starting a series of innovative businesses, including a dorm-furniture resale business and a catering business for student candlelight dinners. He currently lives in Greensboro, NC, with his two children and his dog, Sunshine.
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