Carriers concerned over passing of cap 'n trade bill
WASHINGTON -- The U.S. House has passed a energy bill that includes a “cap and trade” provision and trucking fleets aren't happy.
The American Clean Energy and Security Act was passed on Friday by a 219-212 vote over the objections of the trucking industry and other business groups.
While the American Trucking Associations says it supports efforts to reduce greenhouse gas emissions and promote energy independence, it continues to have "strong reservations" about the legislation, which is strongly backed by the Obama white House.
However, Obama himself acknowledges that the legislation faces a tougher resistance in the Senate and would probably require more compromises to become law.
ATA insists that a carbon cap and trade system places disproportionate burdens on mobile sources like trucking companies, which should be addressed differently than traditional stationary under any carbon reduction regulation.
Truckers, ATA argues, has few available alternatives to diesel fuel and the bill does not provide for the incentives to develop alternative fuels or technology.
Other concerns ATA identified:
The legislation will significantly increase the price of diesel fuel, which in turn would raise the costs of goods on the shelf for consumers.
Also, while America faces an infrastructure crisis, none of the carbon auction revenues would go toward highway infrastructure improvements.
Meanwhile, ATA and other business groups have called for more oversight of fuel speculation marketers and the association believes reforms should be passed before the creation of new carbon commodity trading markets, which would be susceptible to the same market conditions that make fuel prices so volatile.