Trucking Groups, CTA and ATA, Urge Government Support for Fuel-Saving APUs

(July 17, 2007) — The American Trucking Associations (ATA) and the Canadian Trucking Alliance (CTA) urged state governments in the United States and provincial governments in Canada to revise their fuel tax systems to encourage truckers to use environmentally friendly idling reduction technology.

In a joint statement, CTA CEO David Bradley and ATA CEO and President Bill Graves asked International Fuel Tax Association Inc. (IFTA) member jurisdictions to stop taxing fuel used to operate idling reduction technology, mainly the auxiliary power unit (APU) that reduces fuel use and greenhouse gas emissions by large truck engines. The International Fuel Tax Agreement is the organization of states and provinces through which motor carriers’ fuel use tax obligations are administered uniformly throughout North America.

The primary reason for large truck engine idling is to heat or cool the cab for long-haul drivers during periods of rest. However, several studies have clearly shown that using a heavy-duty truck engine to power the heating and cooling of a truck cab is inefficient and environmentally unsound.

“The use of idling reduction technology could reduce the fuel consumption of a long-haul tractor by some 1,900 gallons or 7,200 liters per year—which equates to an emissions reduction of greenhouse gases of some 42,000 pounds or 19 metric tons. The tax system has a role to play in accelerating the use of this emission saving technology,” said CTA CEO David Bradley.

The cost of an APU varies with the type of device, anywhere from US$6,000 to a top price of perhaps US$10,000, with an average of about US$7,750. Likewise, the fuel consumption of an APU will vary, but may be estimated for an over-the-road operation at 500 gallons or 1,900 liters a year. At the average state fuel tax rate of about 22 cents per gallon and provincial rate of 15 cents a liter, an exemption would represent a tax savings of more than US$100 US a year or C$280.

“Coupled with operational savings, this is a significant incentive for installing an APU,” said Graves of ATA. “Governments have a role in regulating emission reductions from the trucking community but the public sector must also recognize its role in providing the business community with incentives to further reduce these emissions.”

ATA and CTA have invited the states and provinces to meet with national staff of the trucking associations or with local associations to provide more insight into the environmental benefits associated with this proposed tax change.

The ATA, the national trade association of the American trucking industry, is a federation of motor carriers, state trucking associations and national conferences and councils with some 37,000 members. The CTA is a federation of provincial trucking associations representing some 4,500 carriers, owner-operators and industry suppliers.

About CTA

The Canadian Trucking Alliance is a federation of the seven Canadian provincial trucking associations representing approximately 4,500 motor carriers and is dedicated to serving the national and international interests of Canadian motor carriers. More at http://www.cantruck.com/