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BUSH
PRESSURES CONGRESS TO LIFT DRILLING MORATORIUM
In efforts to push Congress to lift the moratorium on
offshore drilling, President Bush said July 30 that the
United States needed to increase domestic oil supplies to
reduce upward pressure on fuel prices. Bush criticized
Democratic leaders in Congress who he said have refused to
allow a vote, saying they were ignoring a priority issue for
the American people.
Bush said the Outer-Continental Shelf contained 18 billion
barrels of oil or 10 year’s worth of America’s current oil
production. Bush said it was urgent that Congress act now to
lift the ban on offshore explorations because bringing these
fields into production would “take time.” He added that
exploring the OCS would create American jobs.
“The only thing now standing now between the American people
and these vast oil resources is the United States Congress,”
Bush said. “The sooner Congress lifts the ban, the sooner we
can get this oil from the ocean floor to your gas tank.”
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TRUCKING
CALLS FOR COMPREHENSIVE PLAN TO LIMIT FUEL COSTS EFFECT ON THE ECONOMY
A top trucking official along with a professional truck driver urged the Bush
Administration and Congress to implement a comprehensive energy plan that will
ensure an affordable supply of oil and limit the effect of rising fuel costs on
the U.S. economy.
Speaking at a July 30 press conference hosted by Senator Mitch McConnell and the
Republican Leadership, Barbara Windsor, President and CEO of Hahn Transportation
of New Market, Md., said the United States needs a comprehensive energy plan
that decreases demand for fossil fuels, increases domestic energy production and
ensures transparency in the petroleum markets.
“This is a big problem that requires a big solution,” Windsor said. “Trucking
delivers America. Trucks transport virtually 100 percent of groceries, medicine,
clothing, appliances and even the fuel that’s pumped at the local gas station.
Rising fuel prices not only hurt the trucking industry, but the entire American
economy.”
Tony Sifford, a professional truck driver with over 1.8 million accident-free
miles, compared the year-over-year cost of fuel for his regular roundtrip route
from Hillsville, Va., to Dallas, Texas. At this time last year, Sifford’s fuel
bill was $1,680. That same trip recently cost $2,826.
Sifford said truck drivers are doing their part to reduce fuel consumption by
slowing truck speeds, reducing idling and properly maintaining equipment. Such
steps, however, do not begin to offset the rising cost of fuel, he said.
“I’m trying to do my part,” Sifford said. “But we can’t continue to run our
business at these high prices. The high cost of diesel is cutting into our
already tight margins. I’ve had a number of friends go out of business already
this year. We’re feeling it at the pump. Something needs to be done.”
CROSS-BORDER TRUCKING DEMONSTRATION PROJECT
EXTENDED FOR 2 YEARS
The cross-border trucking demonstration project will be extended for two years
as permitted under U.S. law, John H. Hill, Federal Motor Carrier Safety
Administrator said Aug. 4.
“I am pleased with the success of our demonstration project, but the
participation has been limited by the uncertainty of the project’s longevity. A
number of potential companies have been unwilling to invest the time and
resources necessary to participate due to uncertainties concerning the project’s
longevity,” Hill said. “We intend this extension to reassure trucking companies
that they will have sufficient time to realize a return on their investment, and
we anticipate additional participation with this extra time. The extension will
ensure that the demonstration project can be reviewed and evaluated on the basis
of a more comprehensive body of data.”
“FMCSA has adhered to the law and exceeded requirements established by Congress,
both safety and otherwise, for implementing our obligations under NAFTA. To
date, the project has shown that U.S. and Mexican carriers can engage in
cross-border trucking operations in compliance with applicable laws and with no
compromise to public safety or security. In fact, Mexican trucks and drivers
have established compliance rates equal or better to those of U.S. trucks and
drivers.
Hill said that since 75 percent of trade with Mexico moves by truck,
transportation efficiency is key to the competitiveness of our manufacturers,
ranchers, and farmers. He said the project supports the U.S. economy by saving
consumers’ money, reducing shipping costs and giving U.S. trucking companies and
drivers new opportunities.
Last year, Congress mandated that the demonstration project be operated as a
pilot program, which is governed by statute, and can run for up to three years.
The House Transportation and Infrastructure Committee marked up a bill July 31
that would have ordered the Transportation Secretary to terminate the pilot
program that allows Mexican trucks to travel further into the United States by
Sept. 6. HR6630 would have required the Administration to provide a report
detailing the number and names of motor carriers that participated in the
program and to itemize all safety violations and costs to the federal and state
governments, according to published reports.
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DOT/OMB
DOT UNVEILS
PLAN FOR FUNDING TRANSPORTATION NEEDS
Department of Transportation Secretary Mary Peters on July
29 unveiled the Bush Administration’s plan for funding
America’s transportation infrastructure needs.
Secretary Peters said the plan outlined a renewed federal
focus on maintaining and improving the Interstate highway
system instead of diverting funds for wasteful projects and
for programs clearly not federal priority.
DOT’s plan continues to place an emphasis on generating
revenue through privatization and tolling rather than the
gas tax. In announcing the plan, Peters called the gas tax
“antiquated,” “unpredictable” and “unstable.”
Secretary Peters also said the federal review process for
designing and building new highway and transit projects
would be streamlined. The plan also called for the creation
of a Metropolitan Innovation fund that rewards cities that
combine a mix of transit investments and aims to reduce the
102 federal transportation programs with eight
comprehensive, intermodal programs.
ATA is pleased that the plan places an emphasis on the
movement on freight. But ATA continues to believe that
privatization and tolling of existing highway infrastructure
or toll increases will result in Americans paying a
significantly higher price to access our highway system
while receiving less in the form of safe, efficient, and
reliable roadways.
VEHICLE MILES DROP AGAIN
The U.S. Department of Transportation (DOT) reported that
vehicle miles traveled dropped by 3.7 percent in May
compared with the same month last year. The report, which
was released on July 28, found a reduction of 9.6 billion
miles, and cumulatively through May, VMT fell by 29.8
billion miles in 2008 versus the same period in 2007. DOT
attributed the drop in travel to rapidly escalating fuel
prices.
FEDERAL HIGHWAY REVENUE
PROJECTIONS HOLD STEADY; SENATE REJECTS DEFICIT FIX
New figures released this week by the Office of Management
and Budget (OMB) found that the projected federal Highway
Trust Fund's (HTF) Highway Account deficit remains largely
unchanged compared to previous estimates. OMB predicted that
the HTF deficit will be $3.1 billion in fiscal year 2009
versus the previous estimate of $3.2 billion. The agency
determined that while HTF revenue will decline in 2008 due
to less driving, these losses will be offset by lower
spending outlays. The projected deficit is expected to
result in a $14 billion loss of federal highway funding for
the states, equivalent to more than one-third of expected
funding levels in 2009. A bill to prevent the HTF from going
into deficit recently passed the House, but was filibustered
in the Senate on July 30. ATA members are strongly
encouraged to contact their Senators and ask them to support
a Highway Trust Fund fix.
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