The New Federal Emissions Standards’ Impact on the Transportation Industry

The U.S. Environmental Protection Agency last week announced new national greenhouse gas pollution standards for freight trucks and other heavy-duty vehicles, affecting vehicles for model years 2027 through 2032. The new standards aim to cut 1 billion tons of greenhouse gases by 2055.

When do the new rules start?

The new standards will be phased in, with a more stringent ramp up after 2030.

The EPA doesn’t expect immediate results. EPA modeling predicts 12-25% of large freight trucks will be zero-emissions vehicles by the early 2030s. The modeling predicts about 40% of smaller heavy-duty trucks could be zero-emissions vehicles in the same period.

The challenges within transportation

The trucking industry is mixed on the new rules. Some manufacturers support the EPA’s timeline, but some industry groups are worried about meeting the timeline.

Truck and Engine Manufacturers Association President Jed Mandel released a statement calling the new standards “the most challenging, costly, and potentially disruptive heavy-duty emissions rule in history.”

Two major issues are cost — zero-emissions vehicles are more expensive than diesel vehicles — and the challenges electric trucks cause for long-haul carriers. They travel long distances and carry heavy loads and green technology advancements have not progressed far enough to meet all needs.

The Biden administration has indicated these rules could be costly but have pointed to government subsidies to help with costs.

How we can help

There are federal tax credits available through the Inflation Reduction Act to help defray the cost of purchasing energy efficient commercial vehicles. CLA’s energy tax services team is helping transportation companies and other businesses explore and capture these credits. Contact us for assistance.