One of the most challenging issues the trucking industry will confront in 2010 is pending climate change legislation that advocates a carbon cap-and-trade (or cap-and-tax) system.
Over the past several years, the trucking industry has taken significant steps toward becoming a more sustainable industry. Our broad environmental initiative resulted in sizeable reductions in greenhouse gas emissions from idling. The vast majority of carriers also have enacted policies and procedures to slow their trucks to no more than 65 mph, improving fuel economy and highway safety. To further secure improvements in this area, we have asked the federal government to mandate speed governors set at 65 mph or below for all trucks and enact a 65 mph national speed limit.
Although we support those and other environmentally friendly proposals, the industry cannot back a cap-and-trade system that will ultimately tax all consumers.
Trucking companies are not discretionary fuel users, meaning we do not choose when or where to travel. The increase in diesel prices that would result from the implementation of cap-and-trade would overwhelm small, family run trucking companies, many of which struggle to pass on rapid increases in diesel fuel prices.
The companies that survive would be challenged to cope with more expensive fuel that constantly fluctuates in price. Ultimately, these increased fuel costs will be borne by consumers. Trucks haul nearly 100 percent of consumer goods at some point in the supply chain and the resulting diesel price increases would affect everyone from families buying a gallon of milk to hospitals purchasing medicines and surgical equipment. The economy-wide cap-and-trade legislation being considered by Congress could result in $1.3 trillion in new diesel fuel costs being passed on to consumers.
The trucking industry’s plans for reducing carbon emissions, including a reduction in highway congestion and increased fuel efficiency standards, would have a more significant impact on greenhouse gas reductions without harming American families already struggling to recover in this economy.