Fleet Management News & Business Info | Commercial Carrier Journal
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10 commercial carrier journal | july 2016 JOURNAL NEWS Senate bill opposes increase to federal excise tax on trucks L egislation currently sitting in the U.S. Senate opposing any increase to the federal excise tax on new heavy-duty trucks drew the applause of American Truck Dealers Chairman Steve Parker last month. Sen. Cory Gardner (R-Colo.) introduced S.Con.Res. 40, putting the Senate on record opposing an increase of the FET, which at 12 percent is already the highest tax by percentage levied by Congress on any product. Companion legislation, H.Con.Res. 33, was introduced in the House by Reps. Reid Ribble (R-Wis.) and Tim Walz (D-Minn.) last year and has 30 bipartisan cosponsors. "The existing 12-percent FET on heavy-duty trucks, which adds nearly $20,000 to the cost of a new truck, is already a severe detriment to businesses looking to replace aging fleets with newer, safer and more fuel-efficient vehicles," said Parker, president of Baltimore Potomac Truck Centers. "An increase in the FET would only further deter these important investments that help keep our roads safer." The FET originally was imposed to help defray the cost of World War I. Since 1955, the excise tax rate on new heavy-duty trucks, tractors and trail- ers has increased by 300 percent, bal- looning from 3 percent to its current rate of 12 percent. All of the heavy-duty trucks sold in the United States in 2015 were manufactured in North America, and Parker said any increase in the FET would depress new sales to the direct detriment of the American trucking industry and their more than 8 million U.S. employees. – Jason Cannon New rule to cut truck emissions, boost fuel economy minimums moves to White House T he National Highway Traffic Safety Administration and the Environmental Protection Agency submitted to the White House Office of Management and Budget the final version of a rule to implement the second phase of the greenhouse gas emissions standards. Last June, the agencies introduced their joint proposal for Phase 2 of the Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles that will begin taking effect in model year 2018 for trailers and 2021 for tractors. The plan goes through 2027 when the entire vehicle – engine, truck and trailer – will be required to meet the standards. When the proposed rule was announced last year, EPA said the standards would "significantly reduce carbon emissions and improve fuel effi- ciency of heavy-duty vehicles, helping to address the challenges of global climate change and energy security." A month later, in July, the full 629-page notice of proposed rulemaking was published in the Federal Register. The trailer standards, which will begin implementation first, proposed aerodynamic and tire improvements by manufacturers to help reduce fuel con- sumption of the entire tractor-trailer by 3 to 8 percent from the model-year 2017 baseline. Examples include low-rolling- resistance tires, automatic tire inflation systems, weight reduction, side and rear fairings, gap-closing devices and under- carriage treatment for box trailers. The tractor standards proposed for model-year 2027 would lower carbon dioxide emissions and fuel consumption by up to 24 percent from a 2017 model Phase 1 tractor. The proposed rule said these standards could be met by improve- ments in the engine's waste heat recovery system, transmission, driveline, aerody- namic design, tire rolling resistance, idle performance and other accessories. The agencies also proposed a 4.2 per- cent reduction in carbon dioxide emis- sions and fuel consumption from 2017 baseline engines. The engine standard requirements will begin in 2021 and become stricter in 2024 before meeting the 4.2 percent goal in 2027. The White House OMB has 90 days to clear the rulemaking for publication in the Federal Register. – Matt Cole The existing 12-percent federal excise tax on heavy-duty trucks adds nearly $20,000 to the cost of a new truck. The plan goes through 2027 when the entire vehicle – engine, truck and trailer – will be required to meet the standards.