John Gallagher | Jun 10, 2009 9:09AM EDT
A cap-and-trade energy program would mean huge costs for the trucking industry and American consumers, the American Trucking Associations told Congress.
Testifying at an Energy and Commerce Committee meeting in the U.S. House of Representatives June 9, ATA First Vice Chairman Tommy Hodges said provisions within the American Clean Energy and Security Act that mitigate pollution from oil refineries don’t go far enough.
“The two percent allotment to refineries over a two-year period covers the refineries’ facility emissions, but totally ignores carbon emissions from the combustion of petroleum products, leaving downstream users, such as trucking companies, exposed to dramatic and sudden fuel price spikes,” Hodges said. “This amount is inadequate and will result in significant price increases for refined products.”
The legislation requires major sources of greenhouse gas emissions to obtain an allowance for each ton of pollution emitted.
EPA estimates allowances will cost $11 to $15 in 2012 and increase to $22 to $28 by 2025. At these prices, according to the Energy committee, the value of allowances created under the legislation ranges from $50 to $70 billion in 2012 and from $90 to $120 billion in 2025.
ATA says mobile sources such as commercial trucks should be addressed differently from traditional stationary sources under any proposed carbon reduction program.
ATA maintains fuel consumption can be cut by 86 billion gallons and CO2 emissions by 900 million tons for all vehicles over the next 10 years through several methods, including limiting speeds to no more than 65 mph, reducing engine idling and reducing congestion by improving highways and raising truck sizes and weights.
Contact John Gallagher at jgallagher@joc.com.
