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

  • Leaders call for US to accelerate autonomous cars
    May 20, 2016
    A group seeking to improve American oil security through domestic production, fuel competition, driverless technology and anti-cartel measures has called on policymakers to remove regulatory hurdles in order to accelerate the deployment of self-driving cars, as well as revise tax incentives to boost sales of less expensive electric vehicles. Securing America’s Future Energy (SAFE), chaired by FedEx Corporation chairman, president and CEO Frederick W. Smith and retired US Marine Corps Commandant James Con
  • LowCVP calls on truck operators and others to focus on cutting truck emissions
    October 22, 2015
    To coincide with its participation in the new Freight in the City event on 27 October, the LowCVP is calling on fleet operators, local authorities and others to join forces in building the market for heavy goods vehicles which cut carbon, reduce emissions and lower fuel costs. In earlier research, the LowCVP has identified three main opportunities for cutting emissions from HGVs which pointed to the need for specific interventions: independent testing to validate the effectiveness of retrofit technology
  • New York City joins San Francisco and Oakland in greenhouse gas reduction
    December 10, 2015
    In the light of the COP21 Paris Climate Conference, New York City Mayor Bill DeBlasio has announced a major initiative to reduce greenhouse gas emissions from the city’s large fleet of light duty and heavy duty vehicles. To meet its goals, the initiative relies heavily on new technology diesel engines and bio-based diesel fuels. Following in the footsteps of San Francisco and Oakland, California, New York City is seeking to require the use of renewable diesel fuel. Earlier this year, San Francisco
  • Siemens switches US city of Manchester to LED street lights
    July 9, 2015
    Siemens is switching 9,000 street lights to LED technology in the US city of Manchester in New Hampshire. Some 4,500 lamps have already been refitted and the work should be completed by the end of September. Siemens will also be responsible for service and maintenance work. Siemens says LED technology reduces power consumption by 60 per cent and will bring the city considerable financial benefits, with annual savings of US$500,000 in terms of energy and maintenance costs such as replacing light bulbs.