Energy Bill Commentary: Oil and Gas
Description of Provision | Discussion/Likely Impact | Beneficiary | Estimated Costs | Impact Category |
Title VII - Vehicles and Fuels | Discussion Draft Version Sept. 29, 2003 | |||
Sec. 703: Credits for Medium and Heavy Duty Dedicated Vehicles. Provides extra credits to purchasers of heavier alternative fueled trucks. Vehicles between 8,500 and 14,000 pounds receive two credits instead of one; those in excess of 14,000 pounds get 3. -Credits can offset other fleet purchase requirements. -They are good for one year, so ostensibly, depending on when purchased, can offset requirements in the following vehicle procurement year. -Credits can be sold to other firms. | This provision seems to be predicated on the idea that heavier alternative fueled vehicles provide tremendous environmental or energy displacement benefits that should be supported at triple the normal rate. 1) The provision subsidizes heavy trucks in general. According to Federal Highway Administration, however, many of the heavy truck vehicle classes already pay too little in road fees to cover the disproportionate damage they cause to the nation's roadways. (See Table 7). 2) Heavier trucks are already significantly more fuel-efficient per freight mile traveled than are lighter trucks (see Figure 9, page 9), even when they use petroleum. Shifting to alternative fuel sources might therefore actually be more important in the less efficient transport modes. | Trucking industry and vehicle manufacturers. | ||
