Stop taxing fuel for APUs: CTA-ATA
TORONTO — Revise fuel tax systems in Canada and the U.S. to encourage truckers to buy idling reduction technology. That’s the message being delivered to governments on both sides of the border by the American Trucking Associations (ATA) and the Canadian Trucking Alliance (CTA).
In a joint statement, CTA CEO David Bradley and ATA CEO and President Bill Graves asked International Fuel Tax Association Inc. (IFTA) member jurisdictions to stop taxing fuel used to operate idling reduction technology, mainly auxiliary power units (APU) that reduce fuel use and greenhouse gas emissions by large truck engines.
year and help the environment at the same time.
IFTA is the organization of states and provinces through which motor carriers’ fuel use tax obligations are administered uniformly throughout North America.
The use of idling reduction technology could reduce the fuel consumption of a long-haul tractor by some 1,900 gallons or 7,200 liters per year, says Bradley. “The tax system has a role to play in accelerating the use of this emission saving technology.”
The cost of an APU averages about US$7,750. The fuel consumption of an APU will vary, but may be estimated for an over-the-road operation at 500 gallons or 1,900 liters a year. At the average state fuel tax rate of about 22 cents per gallon and provincial rate of 15 cents a liter, an exemption would represent a tax savings of more than US$100 US a year or C$280, CTA points out.
“Coupled with operational savings, this is a significant incentive for installing an APU,” said Graves of ATA. “Governments have a role in regulating emission reductions from the trucking community but the public sector must also recognize its role in providing the business community with incentives to further reduce these emissions.”
ATA and CTA have invited the states and provinces to meet with national staff of the trucking associations or with local associations to provide more insight into the environmental benefits associated with this proposed tax change.
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