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FHWA Talking Freight Seminar Series: Energy Issues and the Impacts on Freight Transportation

FHWA Talking Freight Seminar Series: Energy Issues and the Impacts on Freight Transportation. Richard Moskowitz American Trucking Associations May 17, 2006. Background Fuel Issues. Diesel is Essential to Trucking Trucking industry consumes 36.4 billion gallons of diesel

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FHWA Talking Freight Seminar Series: Energy Issues and the Impacts on Freight Transportation

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  1. FHWA Talking Freight Seminar Series: Energy Issues and the Impacts on Freight Transportation Richard Moskowitz American Trucking Associations May 17, 2006

  2. Background Fuel Issues • Diesel is Essential to Trucking • Trucking industry consumes 36.4 billion gallons of diesel • Fuel is typically the 2nd largest expense (20-25%)

  3. The Price of Diesel Fuel • 2006 $98.3 billion

  4. Trucking Failures vs. the Price of Diesel Fuel Failures only includes fleets with at least five trucks Sources: A.G. Edwards & ATA

  5. Transition to ULSD • 2006 Highway diesel fuel sulfur cap of 15 ppm • What exactly is 15 ppm S ?

  6. Why ULSD? • Enables use of advanced emission control technology (2007) • PM Traps • EGR • Clean Air is not free • Cost of new engines • Fuel Economy • Maintenance Costs • Engine Life (?) X

  7. ULSD – Refinery/Production Status • 2005 Precompliance Report (90% ULSD) • ULSD Dominant Fuel across all PADDs

  8. Will ULSD be Available Everywhere? • Potential for Product Contamination • Gasoline < 80 ppm • Jet Fuel < 3,000 ppm • Heating Oil < 5,000 ppm • Handoffs (add 1 ppm) • End of the Pipeline Issues • Localized shortages could cause dramatic price spikes

  9. Will ULSD Cost More than Conventional Diesel Fuel? • ULSD will Cost More • EPA estimates 5 cents • Distribution costs • Dedicated tank trucks? • Difference between cost and price • Energy Content

  10. Will ULSD Affect Performance ? • ULSD energy content • Lubricity (Additives / B2) • Solvent Effect • Consequences of misfueling (?)

  11. Tank Truck Concerns • Ensuring Product Integrity • Liability for Product Contamination • Sulfur Testing Concerns • Switchloading • Static

  12. Potential Supply Disruptions Catch 22 solutions

  13. Questions Richard Moskowitz American Trucking Associations rmoskowitz@trucking.org

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