New, bold fuel-efficiency and greenhouse gas standards for heavy-duty trucks could end up reducing the cost of moving freight by 7% and owners of tractor-trailer units could save $0.21/mile. These are among the key findings of a new report from EDF and Ceres.
The report, which is based on analysis by MJ Bradley and Associates, examines one potential technology pathway to achieve the stringency target of 40% over 2010 set forth by our groups and other advocates.
Fuel is the single largest cost of owning and operating a heavy-truck, accounts for 39% of total costs. Strong fuel efficiency standards will target these costs largely by requiring the use of cost-effective, fuel saving technologies. As the new analysis demonstrates, fuel savings will be significantly greater than increases in equipment costs.
A $0.21 per mile savings, for example, has an annual savings potential in excess of $25 billion given that class 8 trucks in the US logged 120 billion miles in 2013.
Our finding of significant financial benefits of strong fuel efficiency and GHG standards is consistent in magnitude with previous analysis. A recent report by the Consumer Federation of America looked at similar Phase 2 standards and found net savings of $250 to consumers, rising to $400 per household in 2035 as fuel prices and transportation services increase.
Retailers, manufacturers and other suppliers should take particular note of these results. Some of the cost-per-mile savings of strong standards would likely be passed along to them as major consumers of trucking services. Thus, the total cost of moving freight (including fuel-surcharges) could be reduced significantly over the coming years.
In order to realize gains of this magnitude, large corporate consumers of trucking services need to join the call for bold, truck efficiency and greenhouse gas standards. Companies can do this is by issuing public statements of support for a truck efficiency stringency target of 40% over 2010 by 2025.
Detailed information about the 40% stringency target is available in a fact-sheet issued by EDF and other advocates.
To learn more about how your company can support a strong truck rule and/or request a briefing about the cost-per mile implications of a bold standard and the technology pathways available to achieve the bold target, please contact me.
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