Contact: Patty Senecal, IWLA California Government Affairs, (310) 678-7782; or Joel Anderson, IWLA President & CEO, (847) 813-4699
IWLA Opposes Placing Freight Transportation Under CARB Cap
January 13, 2010 (Des Plaines, IL) – The International Warehouse Logistics Association told the California Air Resources Board (CARB) that a draft cap-and-trade regulation that places freight transportation under the cap would devastate the state’s economy at a time when it can least afford it.
IWLA specifically opposes placing freight transportation fuels under a declining cap and adopting a state-only low carbon fuel standard as part of the state’s Scoping Plan regulations, which are intended to regulate greenhouse gas emissions. The cumulative state plan places significant increases on fuel, electricity and vehicle prices and has no impact on global greenhouse gas emissions.
The proposed CARB rules would raise state diesel fuel prices 40 to 60 cents per gallon and regulate heavy-duty truck trailers for aerodynamic efficiencies, IWLA noted. The rules also would boost utility rates 30% to 45% including the assessment on utility providers, with up to an $82 million allowance liability due every three years. Each in-state refiner would be hit with an average $150 million allowance liability every three years and offsets would be limited to 4%, severely limiting the ability of utility and diesel fuel providers to reduce their compliance costs.
“The cumulative impact will be substantial job losses, the relocation of distribution centers from California to other states and an increase in miles traveled by heavy-duty trucks into California from bordering states,” said IWLA President and CEO Joel Anderson. “The irony is that the proposed rules will result in a negative environmental impact because the added transportation miles will create an increase in greenhouse gas emissions.”
IWLA urged CARB to instead focus on the most cost-effective carbon reduction strategies first, and push back the requirements that are not cost effective to 2020 and expand offsets from 4% to at least 25%.
Anderson also said IWLA supports the adoption of a low carbon fuel standard for California when the technology exists, is appropriately tested in in-use vehicles, is commercially viable, and when the regulation is adopted by all of the Western States. Click here to see the letter filed by the Western States Goods Movement Alliance.
