Trucking industry's survival is dependent on pending terms of emission legislation warns the American Trucking Association (ATA) in response to the government's five bills on global warming, reports American Shipper.
Randy Mullett, Con-Way Inc CEO raised concerns to the House Committee on Energy and Commerce on behalf of the ATA, and his firm, that cap-and-trade legislation would bring about a patchwork of local, state and regional regulations and result in a further hike in diesel prices.
Emissions trading, or cap-and-trade, will set limits by permit allocation per ton of pollutant emitted. Excess or deficit emissions can be bought and sold by firms themselves.
Fuel consumption has more than doubled in the last four years for trucking with a current yearly bill at $170 billion, an increase of $56 billion from last year, and a net result of job losses for 10,400 independent operators, drivers and employees.
"Our industry can not absorb rapid increases in fuel costs," he told the panel. "A one per cent increase in the average price of diesel costs the trucking industry an additional $391 million in fuel expenses."
Mr Mullett urged the subcommittee to consider federal policy that pre-empts local, state, and regional legislation and to consider an alternative blanket exemption applicable to business activities involving interstate transport of goods, namely long-haul truck drivers.
"While a cap-and-trade programme continues to be the primary mechanism being discussed to promote carbon reductions, such an approach is more effectively applied to stationary sources and not extremely diversified mobile sources such as trucking," he said.
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