Wednesday, August 10, 2011

New Mileage Standard Storm Coming for Trucking Companies?


New Storm Brewing?

Just what the transportation industry needs, another change in tractor (semi’s) design. This time the president wants tractor mileage to increase by twenty some percent.  Today, the average mileage on a new tractor is somewhere around 5 to 6 miles per gallon of diesel.   The last change to diesel tractor engines actually lowered the mileage from around 8 miles per gallon.  This was because of the addition of new emissions systems mandated by the US government.  And with the reduction of sulfur in diesel fuel, the mileage rate has decreased even more.
       
But now, the feds are out to help the industry recover from poor mileage, which they caused by implementing more regulation.  Do you smell fish here? I do.
       
Let’s look at the president’s rational for the changes.  Here is an excerpt from the article linked above: 

Truckers are projected to haul about 14 billion tons of freight by 2018, compared with nearly 11 billion tons in 2006, industry figures show. Commercial trucks represent about 11 percent of all registered vehicles in the United States.
Companies will get bonuses from the government for emission credits gained from using clean technology.
Administration officials say the costs to the industry are negligible. To upgrade a tractor trailer truck, for example, will cost $6,220 but will save an estimated $73,000 dollars in the lifetime of the truck.


If the capability to save $73,000 per tractor over the life of the tractor at a cost of only $6,220 exists today, why haven’t the folks who build the tractors implemented those changes today?   It would be a windfall profit for a company that could produce such a tractor today.  Why hasn’t that happened? 

I wonder aloud here if the line above that says “companies will get bonuses from the government for emissions credits gained from using clean technology” is the answer to that question.  Is this another subsidy coming down the pike?  Will this program be like the taxpayers subsidizing the electric vehicle industry by having taxpayers pay those who buy a new electric vehicle $8,000?  

And last, where are the responses from those that will be forced to buy these new vehicles?  We do not hear from them in this article.

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