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Betting on Sam
CSP's Samantha Oller visits with Sam Hirbod, president and CEO or Pacific Convenience & Fuels.
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Issue Date: CSP Daily News, May 28, 2008


Bono Mack Introduces Diesel Tax Fairness Act
Legislation would reduce diesel costs, lower prices for consumers
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WASHINGTON -- In an effort to reduce fuel costs and protect air quality, Congresswoman Mary Bono Mack (R-Calif.) has introduced the Diesel Tax Fairness Act, H.R. 6106, which will reduce the federal tax on diesel fuel and encourage an expanded market for clean diesel vehicles. Currently, diesel fuel is taxed six cents more per gallon than gasoline. Noting the advancement of cleaner, more-efficient diesel vehicles and the increase prices of food due to transportation costs, Bono Mack introduced the bill to reduce the federal tax on diesel fuel to the same level as gasoline. 

"Fuel costs have increased dramatically over the past two years, affecting prices across the board—at gas stations, grocery stores and shopping malls," said Bono Mack. "Diesel is a vital fuel used for everything from transportation to agriculture to production. By reducing this discriminatory tax on diesel, this bill will help reduce costs for consumers and boost our economy at a time when we greatly need it."

According to Bono Mack, diesel trucks, trains, boats and other vehicles transport more than 90% of the nation's goods. Construction equipment uses diesel for almost all fuel needs, and two thirds of agricultural equipment is fueled by diesel. Many trucks, ambulances and other rescue equipment are also powered by diesel. 

"Other countries are already enjoying the many benefits of clean diesel technology," said Bono Mack. "This legislation will incentivize and accelerate the introduction of these cleaner, more efficient vehicles into the U.S. economy, resulting in fewer emissions and reduced costs for Americans."

 Although about half of newly registered passenger cars in Western Europe are equipped with diesel engines, less than 1% of cars in the U.S. use diesel. Most cars, trucks and sports utility vehicles running on diesel have 20% to 40% better fuel economy than gasoline, and new clean diesel technologies can protect the environment by reducing emissions by 25% to 90% through retrofit diesel technologies, she said. 

The U.S. Environmental Protection Agency (EPA) recognizes the federal savings increased diesel usage can provide to our economy. According to the EPA, if diesel vehicles made up 20% of U.S. vehicles in 15 years, the nation would save 350,000 barrels of oil a day.

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