The American Trucking Assns. on Monday said the just-passed energy bill will ease the industry’s financial burden of buying and modernizing equipment to reduce emissions.

At the same time, the push for renewable fuels and increased oil refining capacity will help to keep fuel supplies more in-line with demand.
“We are seeing the future with today’s energy prices and now it’s more important than ever that we have a forward-looking energy strategy that will help keep America moving,” said ATA President Bill Graves. “The push toward renewable fuels and investments in new refining capacity serve to prevent high fuel prices from limiting the long-term potential of the economy while also easing the fuel needs of our industry.”
The energy bill mandates that refiners begin incorporating 7.5 billion gallons of renewable fuels into the on-road gas and diesel supply over several years. Financial incentives encourage the expanded use of biodiesel, ethanol and hybrid vehicles. The bill makes it easier for the refining industry to expand capacity, a measure that ATA supported in efforts to increase the diesel fuel supply.
The energy bill establishes a Diesel Truck Retrofit and Fleet Modernization Program under which public agencies can compete for $100 million in grants across three years to modernize and retrofit equipment to reduce engine emissions. This measure, originally offered by Congresswoman Juanita Millender-McDonald, D-Calif., authorizes $20 million in 2006, $35 million in 2007 and $45 million in 2008. Additional money will be made available as necessary in 2009 and 2010. Preference will be given to ports and other hauling operations, and participants must match funds by at least 50%.
The bill allocates $94.5 million across three years in grants to deploy idle reduction and energy conservation technologies under EPA’s voluntary SmartWay Transport Partnership. About $19.5 million will be granted in 2006, with 2007 and 2008 funding levels set at $30 million and $45 million, respectively. Grant recipients must match granted funds by at least 50%. ATA is an active participant in this voluntary program.
Between 2007 and 2011, motor carriers will be eligible for retrofit grant money under the Diesel Emissions Reduction provision introduced by Sen. George Voinovich, R-Ohio. EPA will allocate $200 million annually across the 50 states, which in turn will distribute the funds based on a set formula.
The energy bill clarifies the tire excise tax and requires the Treasury Department to study the amount of tire excise taxes collected annually. That report is due to Congress by July 1, 2007.
The bill will do little to curb the effects rising fuel costs have on the motor carrier industry. In recent months, fleets have, like many businesses, reported that rising fuel costs hit their bottom line, crimping quarterly profits. The trucking industry will spend at least $72 billion on fuel in 2005 – a $10 billion increase over 2004 figures. That follows a $10 billion increase over 2003.
Graves said the U.S. – and the trucking industry – need a steady supply of oil and refined products. As part of a long-term effort to help reduce America’s dependence on foreign oil, ATA supports environmentally sound exploration of Alaska’s Arctic National Wildlife Refuge.