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One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Sunday, June 28, 2015

How Will Trucking Industry ‘Keep Rolling’ Under New EPA Rules?

Watchdog: New EPA fuel-efficiency standards will drive up
cost for trucking companies, creating fears that
owner-operators will go out of business.
by Marjorie Haun: Thousands of trucking firms may be harmed by new carbon emission regulations recently introduced by the Environmental Protection Agency in cooperation with the federal Department of Transportation’s National Highway Transportation Safety Agency (NHTSA).

Companies that manufacture big rigs and medium to heavy-duty trucks, as well as firms that use them for various purposes, including hauling and construction, will now be forced to increase the fuel efficiency of their vehicles to reduce greenhouse gas emissions, which some blame for global warming. The new regulations are part of President Obama’s “Climate Action Plan,” which aims to reduce overall carbon emissions by 17 percent from 2005 levels by the year 2020.

The EPA website describes the new standards this way:The proposed standards are expected to lower CO2 emissions by approximately 1 billion metric tons, cut fuel costs by about $170 billion, and reduce oil consumption by up to 1.8 billion barrels over the lifetime of the vehicles sold under the program. These reductions are nearly equal to the greenhouse gas (GHG) emissions associated with energy use by all U.S. residences in one year.The “big rig” rules are the latest in a series of EPA “clean air” standards addressing power plants, airplanes, and even methane emissions from oil and natural gas operations. The American trucking industry has been struggling against years of small profit margins, high gas prices, and stagnant wages. What impact will the EPA’s proposed big rig rules have on this critical sector of the economy?

Interstate 70, which runs through my home state of Colorado, is a long-haul trucking artery, ensuring that goods are brought to market by thousands of big rigs each day. For many truckers, the new EPA efficiency requirements bring fear and uncertainty. In a June 23 interview with Watchdog Arena, Greg Fulton, representing the Colorado Motor Carriers Association (CMCA), spoke on a number of issues that have the trucking industry worried.

“The cost per new vehicle,” he said, “will be an additional $10,000 to $14,000 dollars, just to meet the basic fuel efficiency standards.” He indicated that larger companies might be able to absorb those additional costs within the 24-month time frame given by the EPA, but that for owner-operators who own one or two rigs and have profit margins of 3-4 percent, the additional costs could drive them out of business. “Owners with ten or fewer trucks,” said Fulton, “will be the most challenged by the emissions standards.”

Fulton went on to describe how efforts to increase fuel efficiency in the large hauler industry have been underway for several years, and some efficiency-enhancing improvement in things such as aerodynamics and idle reduction have already been proven.

Along with the new standards come questions about what new technological changes may be used by big rig manufacturers to meet increasingly stringent standards, and whether or not such unproven measures will impact the reliability of the trucks so many businesses rely upon. He said, “The number one rule in trucking is to keep rolling, and with unproven technologies the reliability factor becomes an issue.”

The potential economic fallout from President Obama’s proposals are not limited to big rigs. Dump trucks, construction vehicles and other heavy-duty trucks will also be affected. The impact will cut across many sectors from road building, to home construction, to cross-country transportation of goods.

Although most agree that savings in fuel costs will be one benefit of the standards, it may take years for those benefits to be realized. Fulton concluded by saying, “It’s still early in the game. The real fear that happens is that this [the new EPA regulations] comes into play when the economy is in a slump.”

Americans across the country depend on big rigs in one way or another; as a livelihood or simply a means to get food into the grocery stores. But as many economists forecast a stagnant economy, the new fuel efficiency standards imposed by EPA and Department of Transportation may spell doom for America’s big rig owner-operators.
------------------
Marjorie Haun (@Reagan_Girl) blogs at Reagangirl.com is a former public school teacher with a passion for exposing hypocrisy among public officials and political front groups, while bringing the truth about current issues to light. She is the author of a series of children's books, "The Heroes of the Vietnam War: Books for Children," and has written numerous articles, editorials, book reviews and white papers for a number of organizations and news outlets. Article shared on WatchDog.com

Tags: Marjorie Haun, Watchdog, Trucking Industry, EPA, EPA rules, To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 2:01 PM - Post Link

1 Comments:

Anonymous Marjorie Haun said...

Thank you. If those big rigs can't run, we're all in a world of hurt!

6/30/2015  

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