The Transportation Industry Efficiency Act
From dKosopedia
Categories: Energy | Global warming
Act II of Energize America
Contents |
Objective
To at least double the fuel efficiency of America’s commercial transportation sector, including heavy truck, rail and airplane fleets by 2020.
Description
In the United States, about 2/3 of all oil use is for transportation. Gasoline, in turn, accounts for about 2/3 of the total oil used for transportation in the United States. Based on current GHG emission reporting guidelines, the transportation sector directly accounted for approximately 27 percent of total U.S. GHG emissions in 2003. Transportation is also the fastest-growing source of U.S. GHGs and the largest end-use source of CO2, which is the most prevalent greenhouse gas.
The Transportation Industry Efficiency Act will allow businesses and manufacturers to accelerate depreciation for the development or purchase of heavy trucks whose fuel efficiency and pollution metrics are at least 50% better than the US fleet average (adjusted annually), and will include R&D tax credits to help spur innovative solutions in the long-haul, rail and airplane markets. In addition, the Transportation Industry Efficiency Act will: a) increase the maximum allowable truck load to 110,000 pounds, b) increase maximum trailer length from 53 feet to 59 feet, and c) increase maximum truck height to 14 feet for all federal highways.
The Transportation Industry Efficiency Act will allow airlines to accelerate depreciation for the purchase of new aircraft whose fuel efficiency and pollution metrics are at least 25% better than the fleet average (adjusted annually) or at least 50% better than aircraft they are replacing (as long as these aircraft are removed from flyable inventory). In addition, this act will direct NASA to work with the Department of Defense to develop fuel efficient technologies and approaches that will be provided to US airlines and airplane manufacturers with US presence for improving the fuel efficiency of aircraft.
Benefits
The Transportation Industry Efficiency Act will increase heavy truck fleet fuel efficiency from 6.2 mpg today to 14 mpg or more by 2020, allowing commercial transport-related oil consumption to drop from 4 million barrels per day to 2 million barrels per day. In total, this act will save Americans $20 billion per year on average (at today’s prices), or over $300 billion in energy costs through 2020. In addition, this act will cut commercial vehicle-related carbon emissions by nearly 75%, or 30 million tons per year by 2020, worth nearly $600 million per year in carbon credits at current market prices.
Investment
The Transportation Industry Efficiency Act will cost an estimated $3 billion.
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