WASHINGTON — The Biden administration acknowledged that its aggressive push to decarbonize trucking will be costly — but that the federal government will be here to help.
“The overarching challenge is aligning the market-driven desire from fleets to adopt zero-emission freight vehicles with the resources required to make it successful, and right now, they cost more,” said Gabe Klein, executive director of the U.S. Joint Office of Energy and Transportation.
Speaking to NPR before the release on Friday of the U.S. Environmental Protection Agency’s new phase-three truck emissions rule, Klein said that “cost parity” has yet to be reached that would make electric trucks as affordable. A new Class 8 diesel truck costs roughly $180,000 compared with up to $400,000 for a battery-electric truck, according to estimates.
“That’s why the federal government is providing subsidies, to bring it down closer to cost parity,” he said. “I will also say the charging infrastructure is of course a limiting factor. So we need to make sure everybody has access, not just the big fleets and companies.”
EPA’s “Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3” final rule, which applies to model years 2027 through 2032, avoids 1 billion tons of greenhouse gas emissions — equivalent to the emissions from more than 13 million tanker trucks’ worth of gasoline, according to the agency. EPA also estimated $13 billion in annualized public health benefits.
“In finalizing these emissions standards for heavy-duty vehicles like trucks and buses, EPA is significantly cutting pollution from the hardest working vehicles on the road,” commented EPA Administrator Michael Regan. “Building on our recently finalized rule for light- and medium-duty vehicles, EPA’s strong and durable vehicle standards respond to the urgency of the climate crisis by making deep cuts in emissions from the transportation sector.”
Timelines loosened
According to the rule’s preamble, the new standards for heavy-duty trucks include less stringent standards for all vehicle categories in model years (MY) 2027, 2028, 2029 and 2030 than had been originally proposed last year.
In addition, while emissions standards for sleeper cabs in the final rule begin in MY2030 as proposed, they are less stringent for that year and for MY2031. However, they are equivalent in stringency to what EPA had proposed for MY2032, the preamble notes.
While placating environmental groups, much of the trucking firmly opposes the rule despite adjustments made to the final rule.
“The post-2030 targets remain entirely unachievable given the current state of zero-emission technology, the lack of charging infrastructure and restrictions on the power grid,” commented American Trucking Associations President and CEO Chris Spear.
He stressed that while the final rule includes lower zero-emission vehicle rates for the initial model years, rates in the later years will drive battery-electric and hydrogen investment and limit other potential zero-emission options.
“While we are disappointed with today’s rule, we will continue to work with EPA to address its shortcomings and advance emission-reduction targets and timelines that are both realistic and durable,” Spear said.
Owner-Operator Independent Drivers Association President Todd Spencer called the new rules “unworkable” requirements.
“This administration appears more focused on placating extreme environmental activists who have never been inside a truck than the small business truckers who ensure that Americans have food in their grocery stores and clothes on their backs,” Spencer said.
Daimler throws in support
But not all companies involved in heavy-duty trucking opposed the rule, particularly companies that have been investing heavily in zero-emission technologies, like vehicle manufacturer Daimler Truck North America (DTNA). The company had lobbied EPA for less aggressive timelines when the rule was proposed.
“We thank the agency for addressing industry concern about the challenges of the early years of the rule and we remain committed to upholding the spirit of this regulation,” commented DTNA vice president Sean Waters.
“Ultimately, the successful transition of the commercial vehicle industry is dependent on the availability of reliable zero-emission charging and refueling infrastructure and the ability to conduct business at a reasonable cost of ownership,” he added.
Charging availability and cost was questioned by much of the trucking industry, which commissioned a recent study estimating the cost to install charging infrastructure at $1 trillion.
Incentives needed
The Biden administration’s Klein pushed back on cost concerns, however, pointing to incentives provided at the federal level.
“We’ve already invested $253 million through the Department of Transportation — that’s charging and fueling infrastructure grants — just recently,” he said.
“But there’s also a great deal of private sector funding. And really the goal here is to supplement the private sector, not to supplant their funding.”
Abdul
I have been a truck driver for 20 years it’s guaranteed when those trucks arrive I am walking away from the trucking industry because it’s very expensive to maintain those trucks and I will never be a driver for a company that’s also. We are already struggling to maintain today’s trucks let alone maintaining trucks with very expensive parts. We are here to earn a living we are not here to enrich companies that produce trucks.
David W.
The federal government subsidizing private industry yet again. 34.5 trillion in debt and the Biden administration wants the Federal Reserve (which is a private central bank) to print and loan more money to them. Is inflation not high enough yet? The policies of this failed administration is what’s leading the BRICS nations to get off the petro dollar. This nation is headed for financial disaster and as always the American people will be on the hook.
Jerry
If I had to guess, approximately 1/3 of the trucks on the road are team operations. I don’t see how that is going to remain a viable method of freight movement in these new battery powered trucks. I foresee shipping times and cost increasing due to this. Not to mention that there is already a dire lack of safe, legal parking spaces currently available. If I’m correct, and the team option to move freight is impacted in the way I believe it will be, how many trucks are going to be on the side of the road because they can’t get to a charging station before running out of juice?
Victor
I’ve got a 3 year plan to be debt free. I’ll keep working and fixing my current truck until I can’t find parts anymore or it won’t be allowed to be plated. Then I’m done. 26 years and I’m essentially being forced to choose between my freedom or some government mandate based on flawed data. I’ll choose freedom every time.
Bradley
“I’m from the government, and I’m here to help you”
What have I heard about that statement…
Gerald Niedert
In my opinion, this rule, if enforced, will quicken the adoption of hydrogen-electric trucks and will add a greater sense of urgency to the development of solid-state lithium batteries, which will have a very positive impact on initial cost, range, charging rate and weight for heavy duty commercial vehicles operating with battery electric propulsion.
Joyce Brenny
For one second, I wish our government could live the life of a trucking company founder and owner. The stress is relentless, the uncertainty and fear are daily! What next? To do our “real job” of hauling freight for the citizens of our country has become 2nd place to trying to keep up with the unending attack of government policies and mandates. We (trucking) have become the test dummies to all these “might work” experiments. We want a clean environment like everyone, however the pace at which this is coming at us will be the nail in the coffin for many in trucking! I am just getting tired of the battle! We are not the enemy, we are the lifeblood! Please treat us like we matter, because when we are gone you will have wished you did! Copy that? Over and out! And you might not catch us on the flip side!
Andrew Conyers
Family business in trucking since 1990, Yesterday we agreed to split the company 3 ways and to shut down 2 parts of it. We expanded double during trump, Lost 2/3 during Biden.
What a life, So much lost in investments from 2021 – 2024 this is actually insane. There is no longer any money/life in trucking. It’s done for.