The California Energy Commission (CEC) is moving forward with its tire rolling resistance mandate, sparking widespread concern across the tire industry. Slated to go into effect on January 1, 2028, this regulation aims to establish a minimum rolling resistance coefficient standard for replacement tires sold in the state. While this might sound like a step toward sustainability, it comes with a myriad of implications for tire dealers, manufacturers, and consumers.
Let’s explore what this means for the tire industry, the challenges it poses, and what you need to know to prepare.
What is the Tire Rolling Resistance Mandate?
The rolling resistance mandate is designed to improve fuel efficiency by requiring replacement tires sold in California to meet a specific rolling resistance threshold. The CEC plans to create an online database of compliant tires that manufacturers will self-certify.
Although the regulation intends to reduce carbon emissions and promote energy efficiency, it raises critical questions about the practical implementation and its impact on the tire market.
How Will This Affect Tire Dealers?
One of the biggest challenges lies in how the mandate will restrict what dealers can sell. According to Roy Littlefield IV, Vice President of Government Affairs for the Tire Industry Association (TIA):
“Not every tire is going to be on the CEC’s approved list. Dealers are going to be limited in what they can sell.”
This limitation will have ripple effects:
- Existing Inventory Issues: Tires manufactured before 2028 will still be legal to sell, but dealers must manage stock carefully.
- Informing Consumers: Dealers will be required to display signage and educate customers about the new standards, which could increase operational complexity.
- Non-Compliant Tires: It’s still unclear if installing non-compliant tires will be illegal, creating uncertainty for retailers.
Consumer Impacts: A Shift Toward Used Tires?
The mandate could inadvertently drive cost-conscious consumers toward the used tire market, raising safety concerns. High-efficiency tires typically come at a premium, making them inaccessible to some buyers.
Littlefield adds:
“A lot of consumers who can’t afford a new, lower-rolling resistance tire will just go to the used tire market, which is concerning in terms of safety.”
This highlights the need for more clarity from the CEC on how these standards will be enforced and their broader implications.
Challenges for Tire Manufacturers
Not all manufacturers are equipped to meet the CEC’s standards. The regulation could mirror the early days of the SmartWay program, where only a few manufacturers had the resources to design compliant tires.
The self-certification process also raises questions:
- How will the CEC verify manufacturer claims?
- Will non-compliant tires still enter the market, undermining the program’s goals?
Manufacturers without the capacity to produce low rolling resistance tires may face significant hurdles, potentially reducing product diversity and increasing costs for consumers.
Will Other States Follow Suit?
California’s environmental policies often set a precedent for the rest of the United States. While similar legislation in Washington State failed earlier this year, the adoption of the mandate in California could inspire other states to enact similar measures.
As history shows, “what happens in California rarely stays in California.” Tire dealers across the country should monitor these developments closely.
What Can the Industry Do?
With the mandate still in its developmental stages, there’s time for the tire industry to provide feedback. The TIA is actively engaging with the CEC to address these concerns, but collective action is crucial.
- Contact the CEC: Share your concerns and suggestions to help shape the regulation.
- Prepare Your Business: Begin planning for inventory changes and consumer education strategies.
- Stay Informed: Monitor updates from industry associations like the TIA.
Final Thoughts
The California tire rolling resistance mandate represents a significant shift for the industry. While it aims to promote sustainability, it brings challenges for dealers, manufacturers, and consumers alike.
By staying informed and proactive, the tire industry can navigate these changes and continue to meet the needs of its customers while complying with new regulations.
Source: MTD, Published: Nov. 12