EPA’s new emission standards would boost heavy truck equipment costs

EPA notes that the proposed rule does not mandate a specific technology to meet the new standards, and that EPA “anticipates that a compliant fleet under the proposed standards would include a diverse range of technologies (e.g., transmission technologies, aerodynamic improvements, engine technologies, battery electric powertrains, hydrogen fuel cell powertrains, etc.)”

It also points out that in 2022, “there were a number of manufacturers producing fully electric heavy duty vehicles for use in a number of applications, and these small volumes are expected to rise.”

The agency estimates the new standards will cost truck manufacturers $9 billion before considering the battery tax credits that were included in the Inflation Reduction Act. Including those credits reduces the compliance cost to manufacturers to $5.7 billion.

For MY 2032, EPA estimates the upfront cost difference — including tax credits — between the retail price for an electric truck and one with an internal combustion engine at $582 for a short-haul day-cab tractor. That difference jumps to $14,712 for a long-haul sleeper-cab tractor.

“The incremental upfront costs (after the tax credits) are recovered through operational savings such that pay back occurs after three years for short-haul tractors and after seven years on average for long-haul tractors,” according to EPA.

American Trucking Associations President and CEO Chris Spear said that while the standards are directed at truck manufacturers, the purchasing decisions of their customers “will ultimately determine their level of success.”

“As we review the proposed rule, ATA will remain engaged in the regulatory process to ensure the agency arrives at a regulation that has realistic equipment adoption timelines, is technologically feasible, and will not cause additional inflationary pressures if finalized,” Spear stated.

He also said he was “extremely disappointed” that the Biden administration is reopening the Phase 2 regulation.

“To make the plans and investments necessary for a successful transition, our industry needs regulatory certainty — not whimsical changes of mind from year to year. If EPA wants us to remain a willing participant, their going back and changing what was already agreed upon is not how to do it.”

Todd Spencer, president of the Owner-Operator Independent Drivers Association, called it “baffling” that Biden’s EPA is moving on tighter emissions timelines without first addressing cost issues, mileage range, battery weight, charging time, and the lack of an electric charging infrastructure for trucks.

“The pursuit of this radical environmental agenda in conjunction with an anticipated speed limiter mandate will regulate the safest and most experienced truckers off the road,” Spencer said.

Related articles:

• California gets EPA waiver to move ahead with Advanced Clean Trucks rule
• Biden climate blueprint promotes modal shift away from trucks
• Trucking braces for new heavy-duty engine emission standards

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