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May 10, 2000 11:00 AM, EDT

A settlement over diesel emissions reached between three of the nation’s largest grocery chains, the state of California and environmental groups could set an expensive precedent for air-quality lawsuits against trucking in California and beyond.

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The supermarkets — Albertson’s Inc.-Lucky Stores, Kroger Co.’s-Ralph’s Grocery Co. and Safeway Inc.-Vons Grocery Co. — agreed to send out an estimated 25,000 notices to residents around five California distribution centers warning them of the cancer risk posed by diesel exhaust. The companies also consented to reduce truck idling time and switch a portion of their fleets to natural-gas-powered vehicles.

But the settlement may have a more limited impact than it might seem at first glance.

The purchases of the natural-gas trucks are contingent on the grocery stores getting funding from local and state air-quality agencies, which for the past several years have offered subsidies that make up the difference between the cost of the new technology and normal diesel engines.

For the full story, see the May 8 print edition of Transport Topics. .