Today, the Environmental Protection Agency (EPA) announced it will change a crippling Obama-era regulation that threatens to shut down the U.S. glider kit industry. Without immediate action, the rule will devastate these small and medium-sized manufacturers, costing thousands of jobs in Tennessee alone.
Glider kits are used to refurbish wrecked or unsafe highway tractors, and are often far more cost effective for the fleets of small business owners who are unable to buy all new vehicles. Known as the "Phase 2 Rule," the Obama-era regulation would cap a manufacturer’s production at 300 glider kits per year starting in January 2018, a small fraction of the current production level. Ending the production of these high quality, safe and efficient vehicles will result in a direct loss of approximately 20,000 jobs nationwide. On a broader scale, an independent study found that the economic impact of this rule could exceed a conservative estimate of $1 billion nationwide.
Congressman Diane Black (R-TN-06) released the following statement:
"The Obama administration's rule not only ignores the benefits of gliders, it destroys an entire industry. To say that I am grateful for the hard work of Administrator Pruitt and his team is an understatement. Tennesseans deeply value the work ethic that those in this industry exemplify, and it is with great pride that we can count this as a victory for communities across our state. I applaud the Administrator for recognizing the harmful effects this overreaching regulation would have on thousands of families dependent on this trade as a way of life.”
Following the announcement, EPA Administrator Scott Pruitt said, “In light of the significant issues raised, the agency has decided to revisit the Phase 2 trailer and glider provisions. We intend to initiate a rulemaking process that incorporates the latest technical data and is wholly consistent with our authority under the Clean Air Act.”
Glider kit manufacturers such as Fitzgerald Glider Kits, Harrison Truck Centers and Indiana Phoenix, have argued that despite the previous Administration’s stated goal to reduce greenhouse gas emissions, the EPA did not perform any actual testing to analyze the environmental impact of remanufactured engines and gliders compared to new, or Original Equipment Manufacturer (“OEM”), vehicles. Instead, it relied on unsubstantiated assumptions about the number of older engines used in gliders and their emissions.
This argument was confirmed in a 2016 study by Tennessee Tech University. The study tested emissions from thirteen vehicles and concluded that remanufactured engines performed equally as well as the OEM engines when compared with the 2010 EPA emissions standards. “This study demonstrates that the so-called data the EPA relied upon was based on unsupported assumptions rather than true science,” said Congressman Black.
Impact on Glider Kit Manufacturers
In Tennessee, Fitzgerald Glider Kits was founded in 1989 by Tommy Fitzgerald Sr. and his brother, Ricky, beginning in a single bay facility located in Pall Mall. Thirty years later, the company has expanded to six counties in Tennessee, with facilities covering roughly 750,000 square feet and 500 employees in Tennessee alone.
“On behalf of my family and the terrific employees at Fitzgerald Glider Kits, I want to thank Congressman Black and Administrator Pruitt for their leadership on this issue and genuinely caring for the concerns of small businesses like ours," said Tommy Fitzgerald Sr. "There is a way to strike a rational balance between environmental concerns and jobs, but this rule is not it. The EPA’s announcement should inspire small businesses everywhere.”
“The Fitzgerald family is very grateful for Congressman Black’s dedication and leadership on the glider issue dating back to 2015. The Congressman’s recognition of the potentially adverse impact of a misinformed rule on thousands of jobs in rural areas of the Upper Cumberland Region and the tens of thousands of jobs nationally demonstrates her commitment to helping preserve and create American jobs,” said Fitzgerald Sr.
The EPA’s announcement today follows voiced concerns by stakeholders and business owners, like Fitzgerald, regarding the impact these regulations would have on their industries. Congressman Black has worked alongside Fitzgerald Trucking since 2015 to ensure that the restrictions are not enforced.
"The Fitzgerald’s have the ability to bring businesses and jobs to the small, rural areas of Tennessee and have changed the lives of countless families," said Congressman Black. "It is my hope that this action by Administrator Pruitt will continue that legacy. To the Fitzgerald's, this business is far more than making a dollar – it's about giving back, and I am proud to stand next to them as they build on their vision."
Background
Trucking operators rely on glider kits for the construction of affordable and reliable vehicles which in turn promote economic growth and job stability. A well assembled kit gives small business owners the ability to minimize maintenance downtime and provides their drivers with important safety features as they drive across the country. The gliders lower the cost of truck ownership compared to a factory-produced vehicle, allowing small business owners to continue operating efficiently with the highest quality trucks, without the added cost of purchasing a new vehicle.
Fitzgerald Glider Kits is North America's largest Glider Kit assembler and specializes in installing re-manufactured main components of trucks into a new cab. These cabs are reliable and fuel efficient, and provide trucking businesses with a more cost-effective way of doing business. In some cases, the gliders can save 25% off the sticker price of a new truck and possess better fuel economy. The company is based in central Tennessee and produces more than 3,500 trucks per year, offering various models of household name brands. Still owned and operated by Robert Fitzgerald, Tommy Fitzgerald Jr. and associate Nick Bresaw, Fitzgerald Glider Kits has facilities in six locations across the Upper Cumberland region.
In July 2015, Congressman Black introduced and successfully passed H. Amdt. 630, an amendment to the Department of the Interior, Environment, and Related Agencies Appropriations Act that would prohibit the EPA from applying its proposed “Phase 2 rules” on greenhouse gas emissions standard for medium and heavy duty trucks to glider kits. H. Amdt. 630 would prohibit the EPA from extending the rule to glider kits as they were wrongly labeled as “new vehicles.” The amendment passed the House by voice vote.
