Skip to main content

$25 Billion in US budget savings from switching federal freight shipments to carriers using alternative fuels

A new report from a Washington, DC, energy policy group urges the federal government to begin allocating its US$150 billion budget for transport services to carriers that fuel their fleets on domestically produced natural gas, electricity, biofuels and other alternatives to diesel and gasoline.
August 3, 2012 Read time: 2 mins
A new report from a Washington, DC, energy policy group urges the federal government to begin allocating its US$150 billion budget for transport services to carriers that fuel their fleets on domestically produced natural gas, electricity, biofuels and other alternatives to diesel and gasoline.

The report, by the non-profit 6310 American Clean Skies Foundation (ACSF), says a switch of just 20 per cent of the US government’s business to freight and package carriers using alternative fuels would lead to taxpayer savings of up to $7 billion annually and approximately $25 billion by 2025 (assuming a gradual fuel shift, beginning in 2015). Much of the savings is attributable to reduced fuel costs because major alternatives, such as compressed natural gas (CNG), cost less per gallon than petroleum-based fuels.

The 55-page ACSF report -- Oil Shift: The Case for Switching Federal Transportation Spending to Alternative Fuel Vehicles -- finds that shifting federal transportation contracts to vans and trucks running on alternative fuels could reduce oil imports by billions of gallons annually; cut greenhouse gas (GHG) pollution by over 20 million metric tons a year; and stimulate the nationwide introduction of tens of thousands of new alternative fuel vehicles.

A copy of the 61-page report in pdf format is available at this link.

For more information on companies in this article

Related Content

  • Slow development of Europe's road user charging
    April 24, 2013
    Delegates convened in Brussels for Europe’s 10th annual Road User Charging Conference in March, when both positive and negative developments came to light for advocates of more widespread introduction of RUC. Jon Masters reports. Goings on across Europe in recent months have again demonstrated how very sensitive road user charging (RUC) is politically. At the 10th annual Road User Charging Conference in Brussels at the beginning of March, a Danish delegation was notable for its absence, but Belgian governme
  • UK needs new freight strategy says report
    June 22, 2016
    The Institution of Mechanical Engineers is calling for the UK Government to urgently introduce a national multi-modal freight strategy in a move to ease traffic congestion, improve air quality and boost the economy. According to its report ‘UK freight: in for the long haul’ up to 30 per cent of all haulage vehicles on UK roads are empty and about 150 million miles are driven unnecessarily by lorry drivers. It claims a national strategy could outline plans to make better use of urban consolidation centres
  • Toll roads important to Trump’s infrastructure plan
    January 10, 2017
    According to The Hill, US toll roads may surge under a US$1 trillion infrastructure proposal being floated by Donald Trump. The president elect’s idea for rebuilding the nation’s roads and bridges relies on private companies instead of the federal government to back transportation projects. Experts believe this means investors will be attracted to projects that can recoup their investment costs using some sort of revenue stream, such as through tolls or user fees. “If he moves forward with an infrastr
  • How PPPs can improve funding of transport infrastructure
    October 15, 2013
    The “Better Regulation of Public-Private Partnerships for Transport Infrastructure” report just released by the International Transport Forum at the OECD looks at public-private partnerships (PPPs), which have become an important tool for governments to attract private finance for infrastructure investments. In the face of tight budgets, PPPs are seen as a means to maintain transport investment and limit public spending at the same time.