Moving Efficiently: Improving How We Transport Goods in America

Glen P. KedzieVice President, Energy & Environmental Counsel

American Trucking Associations

In 2012 (last full year of available data), trucking consumed 52.8 billion gallons of fuel:

37.9 billion gallons of diesel (72%) 14.9 billion gallons

of gasoline (28%)

Trucks Use a Lot of Fuel

On-Highway Historic Diesel Fuel Prices

$1.41 $1.40 $1.32$1.51

$1.81

$2.41$2.71

$2.88

$3.80

$2.46

$2.99

$3.84$3.97 $3.92

$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Trucking’s Diesel Fuel Bill

Annual diesel costs were $87 billion (2009); $109 billion (2010); $143 billion (2011); $156 billion (2012); $149.5 (2013) 1¢ diesel increase = $350 - $375 million in added fuel costs to industry At 2012 average price of $3.97, 1¢ diesel would cost the industry $380 million

ATRI’s Carrier Operational Costs Per Mile: (Fuel 39%; Labor 32%)

Motor Carrier Costs 2008 2009 2010 2011 2012 Vehicle-based

Fuel Costs $0.633 $0.405 $0.486 $0.590 $0.641 Truck/Trailer Lease or Purchase Payments $0.213 $0.257 $0.184 $0.189 $0.174 Repair & Maintenance $0.103 $0.123 $0.124 $0.152 $0.138 Truck Insurance Premiums $0.055 $0.054 $0.059 $0.067 $0.063 Permits and Licenses $0.016 $0.029 $0.040 $0.038 $0.022 Tires $0.030 $0.029 $0.035 $0.042 $0.044 Tolls $0.024 $0.024 $0.012 $0.017 $0.019

Driver-based Driver Wages $0.435 $0.403 $0.446 $0.460 $0.417 Driver Benefits $0.144 $0.128 $0.162 $0.151 $0.116

TOTAL $1.653 $1.451 $1.548 $1.706 $1.633

Line items may not sum to total shown due to rounding.

Diesel Price “Spiking” Intensifying!

The number of times the week-to-week change in the national retail diesel price exceeded 5¢ (up or down) 1990s: 1 time

in 302 weeks (0.3%) 2000s: 95 times in 521 weeks (18.2%) 2010s: 42 times in 186 weeks (22.5%)

Heavy-Duty Fuel Demand Through 2040

ATA’s Sustainability Plan

10-year commitment from entire industry to further reduce fuel consumption and carbon emissions

Program includes 6 key pillars

Greening the Industry

Set national speed limit of 65 mph for all vehicles and govern truck speeds at 65 mph for trucks manufactured after 1992

Reduce congestion through highway improvements Promote more productive truck combinations Support truck fuel economy

standards that are technologically and economically feasible

Decrease idling Increase fuel efficiency through SmartWay

ATA Is Strong Supporter of EPA SmartWay Program

Since 2004, SmartWay Partners Saved…

51.6 million metric tons of CO2

738,000 tons NOx

37,000 tons PM

121 million barrels of oil 5 billion gallons of fuel

$17 billion dollars in fuel costs

ATA Supported EPA/NHTSA Phase I Rule

ATA was an original EPA SmartWay Charter Partner in 2004 when program was officially unveiled

Largely based upon EPA’s SmartWay program and industry practices

Where Does ATA Stand on Phase II?

Questions?