SACRAMENTO - The California Air Resources Board is now offering a lease-to-own financing opportunity that encourages small business owners to replace their older diesel trucks with clean new equipment.
The objective of this program is to encourage early compliance with ARB’s on-road diesel vehicle and tractor-trailer greenhouse gas regulations.
“This is a program that benefits small fleets and owner-operators,” said ARB Chairman Mary D. Nichols. “It provides them with an additional way to pay for a cleaner truck, even if their credit isn’t stellar.”
Leases are widely used in the trucking industry for managing cash flow. They combine the tax advantages of leasing while retaining the option to purchase the leased equipment in the future. This is an attractive alternative for smaller owner-operators who may not meet today’s stringent borrowing standards to comply with diesel truck and bus regulations and help meet California’s clean-air and health goals.
“Making upgrades easier to obtain and more convenient is essential to successfully implementing California’s clean air standards,” said State Treasurer Bill Lockyer, Chair of the California Pollution Control Financing Authority. “This program does that and gives truckers more choice in financing their upgrades.”
Prior to adding this option, there have already been 1079 loans issued to purchase diesel equipment for a total of $66.3 million in financing by participating lenders to get cleaner trucks on the road.
Diesel exhaust contains a variety of harmful gases and over 40 other known cancer-causing compounds. California identified diesel particulate matter as a toxic air contaminant based on its potential to cause cancer, premature death and other health problems. ARB’s truck and bus regulation is designed to substantially reduce these dangerous emissions.
CARB is the lead agency in California for cleaning up the air and fighting climate change to attain and maintain health-based air quality standards. Its mission is to promote and protect public health, welfare, and ecological resources through the effective reduction of air and climate pollutants while recognizing and considering effects on the economy.