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IMPROVING TRUCK FUEL ECONOMY WOULD CREATE TENS OF THOUSANDS OF NEW DOMESTIC JOBS, REPORT FINDS
BETTER FUEL ECONOMY ALSO WOULD CURB U.S. OIL DEPENDENCE, SAVE TRUCKERS THOUSANDS OF DOLLARS AT THE PUMP
WASHINGTON (May 20, 2010) – Boosting the fuel economy of new medium- and heavy-duty vehicles could create more than 120,000 new jobs nationwide by 2030, curb U.S. oil dependence, and save truckers thousands of dollars annually at the gas pump, according to a report released today by the Union of Concerned Scientists (UCS) and CALSTART. Using existing and emerging fuel-saving technology, the United States could save four times more oil on an annual basis by 2030 than the volume expected from expanded offshore drilling in that same year.
“Delivering Jobs: The Economic Costs and Benefits of Improving Heavy Duty Vehicle Fuel Economy
” found that strengthening the fuel economy of medium- and heavy-duty trucks could create as many as 124,000 jobs nationwide by 2030, with all 50 states experiencing net job growth. Efficiency improvements could save class 8 “big rig” fleet truck owners more than $120,000 per tractor-trailer over eight years and owner-operators more than $80,000 per tractor over 10 to 15 years, assuming an average $3.50 per gallon fuel price.
Medium- and heavy-duty trucks represent only 4 percent of all vehicles on U.S. highways, but they consume more than 20 percent of on-road transportation fuels. Improving the average fuel economy of these trucks by 3.7 mpg with current and near-term technologies would reduce U.S. annual oil consumption by 11 billion gallons in 2030, according to UCS.
“Investing in fuel efficiency technologies for heavy-duty trucks would create jobs in the manufacturing sector and throughout the entire economy because fuel savings outweigh the cost of more efficient trucks,” said Don Anair, a UCS senior analyst and co-author of the report. “Our report demonstrates that improving the gas mileage of these vehicles not only would provide opportunity for economic growth and job creation, but would strengthen our energy security and reduce global warming emissions as well.”
UCS found that net cost savings from more efficient trucks would total $24 billion in 2030 at fuel prices of about $3.50 per gallon, after factoring in the cost of efficiency technologies.
CALSTART, a leading advanced transportation technologies consortium, examined the economic impact that advanced truck technologies available between 2020 and 2030 will have on truck owners and found lifecycle cost savings for all trucks, based on the conservative assumption of $3.50 a gallon for gasoline and diesel fuel.
“Truck owners struggle most with fuel price and volatility because fuel is typically the biggest cost of their business. But they are also very sensitive to higher vehicle costs,” said Bill Van Amburg, senior vice president of CALSTART. “That’s why we intentionally used conservative assumptions in our study and still found that new technologies that improve truck fuel economy will not only grow jobs but will save truck owners significant money – particularly if they evaluate the benefits over the vehicle’s life.”
Report findings include:
Jobs and Economic Growth (Source: UCS)
• Net job increases nationwide: 63,000 additional jobs in 2020 and 124,000 in 2030. All states would experience net job growth. California, Texas, Florida, New York, Ohio, Illinois, Pennsylvania, Indiana and Michigan lead the way with more than 4,000 additional jobs apiece by 2030.
• An increase in U.S. annual gross domestic product of $4 billion by 2020 and $10 billion by 2030.
Costs and Savings for Truck Owners by 2020 (Source: CALSTART)
• Savings of more than $120,000 per truck for fleets operating new advanced-technology heavy-duty tractor-trailers over eight years, after recovering the initial $62,000 investment.
• Per-truck savings of more than $80,000 over 10 years (used truck) and 15 years (new truck) for owners of advanced-technology heavy-duty tractors without trailers.
• Package delivery fleets can expect to save $11,000 to $26,000 over 12 years of ownership for every box truck updated with advanced technologies.
Improvements pay for themselves (Source: UCS)
• Overall investment costs in 2020 total $4.7 billion, with net savings of $10 billion at fuel prices of about $3.50 per gallon.
• Overall investment costs in 2030 total $13.4 billion with net savings of $24 billion at fuel prices of about $3.50 per gallon.
Energy and Climate Security Benefits (Source: UCS)
• Savings of 100 billion gallons of diesel and gasoline between 2010 and 2030.
• Annual fuel savings in 2030 could top 11 billion gallons of diesel and gasoline.
• Global warming emissions reductions of 140 million metric tons of carbon dioxide equivalent in 2030 -- the equivalent of removing 21 million of today’s cars and trucks from the road.
“Despite real business case benefits, uncertainty about future policies can stall the development of these valuable new technologies,” said Van Amburg. “Smart federal policy, including clear, long-term performance standards and financial incentives, would help truck owners and the industry make the transition and stimulate the economy at the same time.” Read the other supporting reports and documents: Jobs and Economic Growth
(Source: UCS) Costs and Savings for Truck Owners by 2020
Improvements pay for themselves and Energy and Climate Security Benefits
The Union of Concerned Scientists is the leading U.S. science-based nonprofit organization working for a healthy environment and a safer world. Founded in 1969, UCS is headquartered in Cambridge, Massachusetts, and also has offices in Berkeley, Chicago and Washington, D.C. For more information, go to www.ucsusa.org
. About CALSTART
CALSTART is a non-profit organization focused on the growth of the clean transportation technology industry. CALSTART has about 130 member companies representing a broad array of clean vehicles, fuels, and technologies. CALSTART provides services and consulting help to spur advanced transportation technologies, fuels, systems and the companies that make them. With its headquarters in Pasadena, CALSTART has offices in Richmond, California and Denver, Colorado. For more information visit: www.calstart.org