The jurisdiction of the California Air Resources Board (better known as “CARB”) is not to be taken lightly. This agency has extensive and all powerful authority which strikes at the heart of the fundamental and core assets of any trucking company operating to, from or between points in California: the motor vehicle equipment operated by such carriers or used in conjunction with brokered shipments. Accordingly, CARB essentially has nationwide authority to adversely impact the supply chain into and out of the state of California through, as relevant to its Truck & Bus, Opacity Testing and Drayage Truck Regulations, all of which are intended to reduce smog emissions in the state. In fact, CARB is now considering new and more stringent jurisdictional mandates, including the eventual elimination of any commercial motor truck engines that are not 2010 or newer. The failure to comply with the myriad of CARB regulations, particularly those related to comprehensive record-keeping requirements, even if inadvertent, can lead to extensive and costly administrative proceedings, as well as significant fines, penalties, and operating restrictions on a going forward basis. In light of the exposures created by the failure to contemplate and contract with respect to CARB’s extensive jurisdiction, the Panel with highlight the scope of and the pitfalls in failing to meet the operational and record-keeping requirements of CARB’s regulations, including contractual terms and conditions to minimize exposure when dealing with third-party providers who operate or arranges for transportation services within California.