More accurately, the freq they will be using needs to contain its signal in a 12.5 wide space, vs 25 space. It will still be 154.31, but ths signal will not be as wide.
A crude representation:
On January 1, 2011 (Interim Deadlines)
FCC will no longer accept applications for new Part 90 VHF (150-174 MHz) or UHF (421-512 MHz) systems using 25 kHz channels or, applications that seek to modify or expand the authorized contour of an existing VHF or UHF 25 kHz system
Translation: No new Part 90 VHF or UHF wideband radio system licenses will be issued; existing Part 90
VHF or UHF wideband system coverage areas may not be expanded - i.e. cannot add new wideband base
stations or repeater sites that will increase the operational footprint of the system
UPDATE 06/30/10 - FCC re-affirmed the January 1, 2011 date but will consider case-by-case waivers
FCC will prohibit the manufacture, importation, or certification of new Part 90 VHF and UHF dual mode equipment that does not include a method of disabling 25 kHz mode operation
Translation: As of 01/01/2011, production of previously certified Part 90 dual mode (25/12.5 KHz)
equipment will be allowed as long as such equipment includes a method of disabling 25 KHz mode of
operation via restricted-use software
UPDATE 06/30/10 - The 2011 date was extended by temporary waiver to January 1, 2013
No new types (i.e makes, models, etc) of Part 90 VHF or UHF 25 KHz capable equipment will be certified
Existing Part 90 certified dual mode (25/12.5 KHz) equipment may continue to be operated in the 25 KHz
mode until 12/31/2012. After that date, the equipment may only be operated in the 12.5 KHz mode
Applications from manufacturers for new Part 90 VHF or UHF transmitter certification must also certify that the equipment meets a spectrum efficiency standard of one voice channel per 6.25 kHz of channel bandwidth
Translation: All new Part 90 VHF and UHF radio equipment must include 6.25 KHz digital capabilities -
even though the Commission has yet to set a date-certain for 6.25 KHz system conversion
UPDATE 06/30/10 - The 2011 date was extended by temporary waiver until January 1, 2013
Full text of the FCC's June 30, 2010 Order is available here:
http://www.fcc.gov/Daily_Releases/Daily_Business/2010/db0630/FCC-10-119A1.pdf
On January 1, 2013
All Business/Industrial and Public Safety licensees in the 150-174 MHz (VHF) and 421-512 MHz (UHF) bands must have completed their migration to 12.5 kHz technology or be utilizing a technology that achieves equivalent efficiency
Failure by licensees to comply may mean license revocation and/or monetary fines
NOTE: Part 90 Low-Band VHF (30-50 MHz), 220, 700, 800, and 900 MHz radio systems are EXEMPT from the above