US Businesses, Investors Urge Stronger Truck Standards

September 30, 2015 /3BL Media/ - Two major coalitions of business and investment leaders today called on the Obama Administration to strengthen its proposed rules for medium- and heavy-duty trucks, citing tens of billions of dollars and hundreds of millions of tons of greenhouse gas emissions that could be saved.

In separate letters to the US Environmental Protection Agency (EPA), US Department of Transportation (DOT) and the National Highway Transportation Safety Administration (NHTSA), members of Business for Innovative Climate & Energy Policy (BICEP) and the Investor Network on Climate Risk (INCR) pointed to the economic opportunity stemming from, and environmental necessity of, stronger standards for truck fuel economy.

“Most of our companies depend on trucks to transport our products, and an efficient trucking industry will be critical to our future success,” noted BICEP members in their letter to McCarthy and DOT Secretary Foxx. “Stronger standards would reduce freight costs by 6.8% in 2040, an annual savings potential of approximately $34 billion. In turn, these benefits would accrue to consumers and the greater economy; under stricter standards, the average U.S. household stands to save $250 per year in lower priced goods.”

“Stronger standards are feasible, cost effective, and represent a significant opportunity to drive economic growth by shielding us from oil price volatility, catalyzing investment in advanced truck technologies, and reducing climate risk,” wrote INCR members in their letter to EPA Administration Gina McCarthy and Transportation Secretary Anthony Foxx. “Strong standards would save $0.21 per mile by 2040... save an estimated 1.4 million barrels of oil per day by 2030... [and] have the potential to save 270 million metric tons of GHG emissions annually by 2030.”

BICEP is a coalition of major U.S. businesses representing nearly two million American jobs and nearly $400 billion in annual revenue and includes eBay, General Mills, Unilever and Nike. INCR is a coalition of long-term investors with over $13 trillion in assets and focused on mitigating the risks associated with climate change.

Their letters are available at http://www.ceres.org/files/bicep-and-incr-letters-on- fuel-standards

Under its draft “Phase 2” regulations, the Obama Administration has proposed reducing average fleet fuel consumption for medium- and heavy-duty trucks 36% by 2027. The business and investment leaders, however, urged the Administration to strengthen that target to a 40% average fleet reduction by 2025. They noted that freight trucks are the fastest growing single source of GHG emissions today, accounting for over 450 million tons of climate warming emissions per year, and that making more fuel-efficient trucks available sooner will lead to greater cost savings and GHG emission reductions.

Ken Locklin, Director of Impax Asset Management (US) LLC, a member of INCR, noted, “Impax supports strong truck standards because they will simultaneously deliver important air pollution and GHG reductions and drive innovation in the clean vehicle technology sector. This makes US trucks more competitive internationally and provides a domestic market for these technologies as well. As we have seen before with the passenger vehicle standards, strong truck standards will drive positive US economic returns and future global competitiveness in the sector.”

Rachelle Wenger, Director of Public Policy and Community Advocacy at Dignity Health, a BICEP member, said, “Dignity Health is deeply committed to its healing mission and the values of stewardship and justice—this includes care for the environment. Stronger truck standards will provide significant health and climate benefits while reducing freight costs. Increasing fuel efficiency and reducing greenhouse gas emissions are a triple win for the economy, the environment and the health of communities.”

Today is the final day for public comments on the Obama Administration’s proposed Phase 2 Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles. The standards are co-administered by the EPA and NHTSA.

ABOUT CERES, BICEP & INCR Ceres is a nonprofit organization mobilizing business and investor leadership on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of over 100 institutional investors with collective assets totaling more than $13 trillion. Ceres also directs Business for Innovative Climate & Energy Policy (BICEP), an advocacy coalition of 34 businesses committed to working with policy makers to pass meaningful energy and climate legislation. For more information, visit www.ceres.org or follow on Twitter @CeresNews.