http://www.gristmagazine.com/muck/muck041304.asp?source=daily

Keep on Truckin'

Taxpayers could get stuck with tab for new diesel rules

by Amanda Griscom

13 Apr 2004

When the Bush administration wants to gin up some environmental cred, 
it cites efforts underway to slash diesel emissions by requiring 
trucking companies to switch to cleaner engines. But the untold story 
is that it may be the taxpayers -- not the polluters -- who end up 
footing much of the bill.

The trucking industry has long been a leading opponent of federal 
clean-air regulations, and since 1993 it has had a relentless 
advocate in Rep. Mac Collins (R-Ga.), former owner of Collins 
Trucking Co. -- a business that is now run by the representative's 
family and that continues to pay him $21,600 a year as an adviser. 
U.S. EPA regulations will require truck fleets to switch to 
cleaner-burning diesel engines by 2007, and Collins, who's running 
for the Senate this year, wants tax breaks to help companies like his 
defray the cost.

Claiming that the diesel regulations would financially hamstring the 
industry, 19 GOP members of the House, including Collins, recently 
asked the General Accounting Office -- the watchdog arm of Congress 
responsible for scrutinizing the activities of federal agencies -- to 
examine the diesel regulations.

The regs were proposed by the EPA in 2000 and put in place by the 
Clinton administration just before it left office in 2001. Just days 
later, the new Bush administration froze the regulations to give it 
time to determine whether their health benefits justified their costs 
to the American economy.

Satisfied that they did -- with overwhelming scientific data to prove 
it -- the Bush EPA then reinstated the Clinton rules with much 
tough-guy fanfare.

It's hard to argue with the numbers: Cleaner diesel engines will 
prevent an estimated 8,300 deaths from respiratory disease per year, 
according to EPA research, and result in 17,600 fewer cases of acute 
bronchitis and 360,000 fewer asthma attacks in kids.

Today, the administration's move to "aggressively tackle" diesel 
emissions is advertised as one of President Bush's top environmental 
accomplishments on his 2004 campaign website.

The trucking industry didn't take well to the news that the diesel 
regs were going forward, but it may still get off the hook. Officials 
in the Bush EPA and in the GAO seem inclined to help the industry 
keep on truckin' happily along -- free of financial responsibility 
for the deadly pollution it creates.

The GAO report [PDF] on the diesel regulations, released on March 11, 
"openly endorses recommendations truckers have been making for years 
and explicitly parrots the industry's arguments behind these 
recommendations," said Frank O'Donnell, executive director of Clean 
Air Trust. The report not only recommends that the agency consider 
"economic incentives" to help industry comply, but suggests that the 
EPA failed to give due consideration to industry concerns in drafting 
the regulations.

Even the Bush administration found this allegation absurd. Assistant 
EPA administrator for air and radiation, Jeffrey Holmstead, wrote an 
indignant letter to the GAO that challenged the report's integrity 
and accuracy and implied that it was biased in favor of the trucking 
industry: "[T]he report simply appears to accept the views of one set 
of stakeholders ... it leaves the reader with the impression that 
challenges are overly daunting and that industry is unable to address 
them. This is simply wrong," he wrote.

Holmstead took particular umbrage at the report's implication that 
the EPA did not adequately consider industry concerns: "Especially 
troubling are the suggestions in the report that the agency failed to 
engage the trucking industry in the 2007 rulemaking process. ... I 
personally take the agency's responsibility to engage stakeholders 
very seriously."

The lead author of the GAO report, John Stephenson, was not available 
for comment.

Soon after the report was released, Holmstead accompanied EPA 
Administrator Mike Leavitt to a trucking industry meeting titled 
"Diesel Engine Emissions Summit II" in Fort Lauderdale, Fla., to 
address the report's findings and assure the industry that the EPA is 
on its team.

"I am prepared to say, 'Let's work together,'" Leavitt announced to a 
round of applause from the audience of more than 900 industry 
representatives. He stressed that he is amenable to the idea of tax 
breaks to help trucking companies comply with the rules, saying it's 
the government's job to incentivize businesses "to do the right 
thing," and that the EPA is "dependent on all of you to figure out 
how to do that."

The EPA, though, does not typically ask taxpayers to shoulder the 
costs industry incurs when meeting new pollution standards. The 
health benefits of the diesel regs are supposed to justify their 
costs, and if the financial burden is heavy for industry, the costs 
get passed along to consumers anyway.

According to John Millett, an EPA spokesperson, the diesel 
emissions-reduction technology that will be required on new trucks by 
2007 is expected to raise the cost of a truck by $1,200 to $1,900 -- 
an increase of less than 1 percent on the truck's total cost of 
between $150,000 to $200,000.

But the American Trucking Associations claims the costs will be 
markedly higher -- between $5,000 and $10,000 per truck, according to 
the organization's environmental counsel, Glen Kedzie. "Already the 
trucking industry has taken to buying up trucks in the pre-2007 fleet 
so they don't have to face the additional costs that they expect will 
be posed by the post-2007 fleet," he said.

Environmentalists say the trucking industry's fears are grossly 
exaggerated. But the larger point, they say, is that taxpayers 
shouldn't be forced to underwrite the costs, no matter what they are. 
A precedent like that would spark similar demands from every other 
regulated industry, eventually rendering pollution controls 
impracticable.

Still, Leavitt and Holmstead seem to see merit in abandoning the 
"polluter pays" principle. So concerned are they with the trucking 
industry's financial health that they've invited Collins to help 
write legislation that will line his own pockets: At the industry 
meeting last month, Holmstead vowed to work with the Georgia 
representative to develop financial incentives to soften any blow to 
the trucking industry from the diesel regulations.



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