New EPA Emissions Rule for Semi-Trucks: EPA Rolls Out World's Toughest Emission Standards for Heavy-Duty Trucks

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March 29, 2024

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by Chris Clayton (DTN Progressive Farmer) ... EPA announced new, final national emission standards for heavy-duty vehicles model years 2027 through 2032. Officials stated the new rule would avoid 1 billion tons of greenhouse gas emissions while reducing air pollution for 72 million people who live near heavy trucking routes as well.

The new rule includes delivery trucks, refuse haulers or dump trucks, public utility trucks, transit, shuttles, school buses and semi-trucks. They would have to meet lower pollutant criteria standards for 2027 through 2032.

EPA Administrator Michael Regan said the new rule is "the strongest national greenhouse gas standard for heavy-duty vehicles in history" and will end up saving trucking operators on fuel costs in the long run. While the trucking industry argues that EPA is trying to force the industry to develop electric delivery and semi-trucks, Regan insisted the rule is "technology neutral." He noted the proposed rule last year generated more than 170,000 public comments and really spoke to the need for a diverse set of options" for manufacturers to choose their own technology.

"Whether that's advanced internal combustion engine vehicles, hybrid vehicles, plug-in hybrid vehicles, battery electric vehicles and hydrogen fuel-cell vehicles," Regan said on a call Thursday with reporters.

Still, a coalition of trucking industry interests, including the American Trucking Association, earlier this month released a report on "full electrification" of the U.S. commercial truck fleet citing it would require nearly $1 trillion in infrastructure investment alone. That includes roughly $620 billion in charging infrastructure. That doesn't include actual costs for new semi-trucks. The industry report cites a new diesel Class 8 truck costs roughly $180,000 while a comparable electric-battery truck costs more than $400,000.

Not everyone in the industry is against the emissions rule. In February, an alliance of major heavy-duty engine manufacturers issued a joint "statement of principles" calling on EPA to issue its final rule. Companies such as BorgWarner, Cummins, Eaton and Ford state they were committed to "aggressively cutting GHG emissions with near-term milestones and long-term net zero goals." The group also stressed the need for a "whole of government approach" to partner with private industry to meet the new EPA standards.

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Congress voted a year ago along largely party lines to rescind EPA's rule for tougher emission standards for heavy-duty trucks, but President Joe Biden vetoed the bill.

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The heavy-duty truck rule comes just a week after the Biden administration finalized similar rules for passenger cars and light-duty trucks for 2027-2032. That rule drew criticism from the biofuels industry that it would force auto manufacturers to produce more electric vehicles. READ MORE

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Excerpt from U.S. Environmental Protection Agency: Today, March 29, the U.S. Environmental Protection Agency announced final national greenhouse gas pollution standards for heavy-duty vehicles, such as freight trucks and buses, for model years 2027 through 2032. The standards will avoid 1 billion tons of greenhouse gas emissions and provide $13 billion in annualized net benefits to society related to public health, the climate, and savings for truck owners and operators. The final standards will also reduce dangerous air pollution, especially for the 72 million people in the United States who live near truck freight routes, bear the burden of higher levels of pollution, and are more likely to be people of color or come from low-income households.

The “Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles - Phase 3” standards will provide greater certainty for industry, while catalyzing private investment, supporting U.S. manufacturing jobs in advanced vehicle technologies, and invigorating and strengthening the U.S. economy. Over the next decade, these final standards, paired with President Biden’s historic Investing in America agenda and investments in U.S. manufacturing, will set the U.S. heavy-duty sector on a trajectory for sustained growth.

EPA’s latest modeling shows that the final standards will result in greater reductions of pollution than the proposed rule, while providing more time and flexibility for manufacturers to develop, scale, and deploy clean heavy-duty vehicle technologies. The 1 billion tons of greenhouse gas emissions avoided by these standards is equivalent to the emissions from more than 13 million tanker trucks’ worth of gasoline. With this action, the Biden-Harris Administration is continuing to deliver on the most ambitious climate agenda in history while advancing a historic commitment to environmental justice.

“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,” said EPA Administrator Michael S. 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.”

“EPA’s standards complement President Biden’s unprecedented investment in our workers and communities to reduce harmful emissions, while strengthening our manufacturing capacity for the transportation technologies of the future,” said President Biden’s National Climate Advisor Ali Zaidi. “By tackling pollution from heavy-duty vehicles, we can unlock extraordinary public health, climate, and economic gains.”

Trucks and other heavy-duty vehicles are vital to the United States economy, transporting goods and freight and providing services for industry, transit, and other sectors. At the same time, heavy-duty vehicles account for 25 percent of all greenhouse gas emissions from the transportation sector, which is itself the single largest source of greenhouse gas emissions in the United States. Greenhouse gas emissions are the primary driver of climate change and its impacts, including more severe heat waves, drought, sea level rise, extreme climate and weather events, coastal flooding, and catastrophic wildfires.

“The American Lung Association is pleased to support the new cleaner trucks standards,” said Paul G. Billings, National Senior Vice President, Public Policy, American Lung Association. “Today’s rule will improve the air we breathe and curb the pollution that is driving climate change. This rule is the capstone of the Clean Trucks Plan. The strong standards finalized today build on the 2023 rule to address oxides of nitrogen and last week’s multipollutant rule that will clean up light-and medium-duty vehicles. The result will be cleaner air and better health, especially in communities with heavy truck traffic nearby.”

“Sierra Club is pleased that the EPA has finalized the federal heavy-duty vehicle standards, which will help cut emissions from large polluting trucks and buses,” said Katherine García, Director of the Sierra Club’s Clean Transportation for All campaign. “The new standards reflect Congress' long standing demand for healthy air along with its recent historic investments in getting cleaner vehicles on our roads, corridors, and ports. Together, they are a game changer. With the climate crisis underway and many of our communities facing unprecedented fires, droughts, and floods, it’s crucial that truck manufacturers get into the fast lane with zero-emission trucks to deliver the climate, health, and economic benefits we deserve.”

"Hip Hop Caucus is encouraged by EPA's new federal emissions standards for trucks, which will reduce the harmful air pollution that disproportionately affects Black, Brown, Indigenous and low-income communities near ports, roadways and highways,” said Russell Armstrong, Senior Director of Campaigns and Advocacy at the Hip Hop Caucus. “This is a meaningful step in the right direction. We will continue to work with EPA to make sure that clean vehicles are accessible and affordable for all.”

Heavy-Duty Vehicle Greenhouse Gas Standards

Today’s “Phase 3” standards build on EPA’s Heavy-Duty Phase 2 program from 2016 and maintain that program’s flexible structure, which is designed to reflect the diverse nature of the heavy-duty vehicle industry. The standards are technology-neutral and performance-based, allowing each manufacturer to choose what set of emissions control technologies is best suited for them and the needs of their customers. Available technologies include advanced internal combustion engine vehicles, hybrid vehicles, plug-in hybrid electric vehicles, battery electric vehicles, and hydrogen fuel cell vehicles. These new standards apply to heavy-duty vocational vehicles (such as delivery trucks, refuse haulers, public utility trucks, and transit, shuttle, and school buses) and tractors (such as day cabs and sleeper cabs on tractor-trailer trucks).

Relative to the proposal, EPA’s final rule provides more time in the early model years of the program for the development of vehicle technologies and deployment of charging and refueling infrastructure. The final rule also includes flexibilities that will assist manufacturers in meeting the standards in the early years of the program while preserving incentives for early adoption of advanced technologies.

EPA received extensive feedback on the proposed rule, including over 175,000 public comments, testimony at public hearings, and engagement with stakeholder groups. The final standards were informed by the best available data and information in the public record and rigorous technical assessments, including consideration of the extensive public input EPA received in response to the proposed rulemaking.

Prioritizing Public Health and Climate Benefits

Pollution from heavy-duty vehicles contributes to climate change and can exacerbate serious health issues such as respiratory and heart ailments, especially for the 72 million people in the United States who live close to truck freight routes and are more likely to be people of color or come from low-income households. Today’s final heavy-duty greenhouse gas standards complete EPA’s Clean Trucks Plan for reducing greenhouse gas emissions and other harmful air pollutants (including nitrogen oxides (NOx), particulate matter (PM), and air toxics) from heavy-duty vehicles through a series of rulemakings. These rules include today’s standards as well as (1) EPA’s recently finalized light- and medium-duty vehicle multipollutant standards for MY 2027-2032 (which covers Class 2b and 3 trucks), and (2) EPA’s December 2022 rule to control smog- and soot-forming emissions from heavy-duty engines and vehicles. The Clean Trucks Plan represents the most protective set of EPA regulations ever for the on-road sector, significantly reducing pollution, protecting public health, and responding to the urgency of climate change.

Savings and Customer Choice

There is a wide variety of trucks and other heavy-duty vehicles on the road, serving a diverse array of needs and customers. Today’s standards recognize the diversity of vehicle types and encourage further innovations in clean vehicle technology, enhancing options at the dealership that will also save customers, owners, and operators money through reduced fuel and maintenance costs. Under these new standards, the heavy-duty industry is expected to realize annualized savings of $3.5 billion compared to annualized costs of about $1.1 billion from 2027 through 2055.

After accounting for the vehicle purchase tax credits provided under President Biden’s Inflation Reduction Act, the typical buyer of new clean technology vocational vehicles and day cabs in 2032 when the standards are fully phased in will save money on the upfront cost of the vehicles and recoup any additional costs, such as the purchase and installation of vehicle charging equipment, in two to four years. The typical buyer of new clean technology sleeper cab will recoup the upfront cost of a vehicle in five years. A purchaser of a heavy-duty truck in 2032 – when the standards are fully phased in – could save between $3,700 and $10,500 on fuel and maintenance costs annually, depending on vehicle type.

Working with Stakeholders Throughout Phase 3 Implementation

EPA’s analysis finds that heavy-duty vehicle technologies, charging and refueling infrastructure, and supply chains will be available to support the final standards. At the same time, EPA has committed to actively monitor and track the technologies the heavy-duty vehicle manufacturers are developing and deploying, and the deployment of heavy-duty vehicle electric charging and hydrogen fueling infrastructure in order to ensure the successful implementation of the Phase 3 program.

EPA will consult with a wide range of stakeholders on an ongoing basis to learn from their experiences and gather relevant information and data. These stakeholders will include, at a minimum, trucking fleets and trucking trade associations; heavy-duty vehicle owner-operators; heavy-duty vehicle manufacturers; investor-owned utilities, public utilities, and electricity cooperatives; infrastructure providers and installers; state and local governments, communities with environmental justice concerns; and environmental and public health NGOs. In consultation with other agencies, beginning as early as 2026, EPA will issue periodic reports reflecting the collected information throughout the lead-up to and during the implementation of the Phase 3 standards. Based on these reports, the agency may decide to issue guidance documents, initiate a future rulemaking to consider modifications to the Phase 3 rule, or make no changes to the program.

In parallel to the Phase 3 rule, the Joint Office of Energy and Transportation and the Department of Energy, in collaboration with the Department of Transportation and the Environmental Protection Agency, recently announced the first-ever National Zero Emission Freight Corridor Strategy, an all-of-government action plan for deploying a world-class zero-emission freight network across the nation by 2040. The Strategy prioritizes high-traffic routes and freight hubs to catalyze four phases of public and private investment in heavy-duty zero-emission transportation, with a focus on reducing harmful emissions for the most affected communities.

Investing in America’s Clean Transportation Future

The final standards align with and support the commitments and billions of dollars’ worth of investments from trucking fleets, vehicle manufacturers, and vehicle technology firms as they plan to increase the use or production of clean vehicle technologies in trucking and other heavy-duty fleets. These investments are resulting in a range of technologies with the potential for further significant reductions of greenhouse gas emissions from heavy-duty motor vehicles.

EPA recently announced the launch of the $3 billion Clean Ports Program to help tackle emissions from heavy-duty vehicles both in and out of U.S. port communities. Along with EPA’s long-standing Diesel Emissions Reduction Act (DERA) program which reduces harmful emissions from diesel engines, the new Bipartisan Infrastructure Law Clean School Bus Program, and an upcoming clean heavy-duty program to fund the replacement of existing Class 6 or Class 7 vehicles with clean technology vehicles, we are making changes in communities now to reduce emissions from the heavy-duty fleet. Together, these programs are offering billions of dollars in funding to replace older vehicles and engines with clean vehicle technology options.

As the EPA finalizes the rule, the Biden-Harris Administration is also investing funds in communities across America from the Bipartisan Infrastructure Law to promote clean transportation, including building a national network of EV chargers and alternative-fuel stations; ensuring domestic manufacturers have the materials they need to make EV batteries; and funding clean transit and clean school buses, with priority for underserved communities. In addition, funding through the Inflation Reduction Act will directly support the clean-vehicle transition through support for domestic battery manufacturing and clean vehicle purchases for owners, operators, and businesses.

For more information on the Phase 3 Final Rulemaking, please visit EPA’s Final Rule: Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3 website.

Here’s what other leaders are saying about the final rule:

Sean Waters, Vice President Product Integrity for Daimler Truck North America: “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. At Daimler Truck North America, it is our aspiration to offer only carbon-neutral new vehicles in the U.S. by 2039 and our comprehensive product portfolio of state-of-the-art trucks will ensure our customers can transition to greener transportation on the road ahead. 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. We appreciate the regulation’s recognition of this fact and look forward to working with the EPA as well as federal and state governments to deliver both.”

Senator Tom Carper (D-DE), Chairman of the Senate Environment and Public Works Committee: “Curbing emissions from heavy-duty vehicles is a win-win for the planet and public health. It supports the United States in reaching President Biden’s ambitious climate goals while cleaning up the air we breathe. Today’s rule will be especially critical for disadvantaged communities located near freight corridors that are overburdened by air pollution, as well as the millions of children who are currently riding dirty diesel buses to school each day. I commend the EPA for their continued work to build a clean transportation future for America.”

Representative Pete Aguilar (CA-33): “I am glad to see that the EPA’s new emission standards will drastically lower carbon emissions, reducing smog and pollution in the Inland Empire. Not only does this rule make crucial progress in combatting climate change, but it will also contribute to better health outcomes in our community and create more jobs in the clean energy sector. I look forward to working with the EPA on implementing these standards in our community and advocating in Congress for more clean energy solutions.”

Cynthia Williams, Global Director for Sustainability, Ford Motor Company: “The EPA’s new heavy-duty emissions rule is challenging, but Ford is working aggressively to meet the moment. Our industry is making important progress to reduce greenhouse gas emissions in both light- and heavy-duty vehicles. We also need policymakers to pair emission standards with incentives and public investment so that we can continue to deliver on the next generation of vehicles and for our nation to lead the future of this industry.”

Neha Palmer, CEO and Co-Founder, Terawatt: “Fleet charging solutions providers like Terawatt are proud to be investing billions into infrastructure that supports electrification at scale. We look forward to continue working with fleets incorporating EVs to ensure that charging is available as trucks continue to hit the road — and initiatives that get EVs closer to cost parity with ICE vehicles are crucial. These standards, combined with the National Zero Emission Freight Strategy released earlier this month, gives the industry a coordinated pathway towards accelerated uptake of zero-emission vehicles." READ MORE

Excerpt from E&E News Climatewire: The administration is wrapping “regulatory mice in Kevlar,” a policy analyst said, to withstand a conservative Supreme Court in a presidential election year.

As the Biden administration’s climate rules near the finish line, a pattern is emerging: The final regulations are weaker than the initial proposals.

Last month, EPA removed existing natural gas plants from upcoming limits on power plant pollution. Soon after, the Securities and Exchange Commission softened a rule on climate-related financial disclosures. And automakers will have more time than anticipated to adopt electric vehicles under EPA’s final rule last week to strictly limit carbon emissions from cars and SUVs.

Some see that trajectory — stronger proposals last year, weaker final rules this year — as a byproduct of President Joe Biden’s battle for reelection this November.

But it also comes amid a four-year skirmish between White House policy staff bent on taking aggressive action and agency lawyers — many of them Obama administration veterans — determined to make climate policy that can secure industry buy-in and withstand the inevitable court challenges.

“The Supreme Court is hovering over EPA like a hungry cat at a mouse hole,” said Jeremy Symons, an EPA climate policy adviser in the Obama administration who is now a consultant. “EPA knows that the most effective regulations are the ones that will hold up to scrutiny from a hyperactive Supreme Court majority that is actively searching for the weak link in every rule.”

EPA is trying to outfit its “regulatory mice in Kevlar” to withstand judicial scrutiny, even if it means slower progress toward Biden’s climate targets, he said.

The debate reflects the delicate balancing act facing Biden. Push too hard and the president runs the risk of seeing his rules struck down in court and alienating moderate Democrats this fall. But scale back too much and he could anger young progressive voters while leaving the country well adrift of its climate commitments under the Paris climate accord. READ MORE

Excerpt from Clean Fuels Alliance America: Clean Fuels Alliance America expressed extreme disappointment in the Environmental Protection Agency’s final Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles-Phase 3. In the rule, EPA adopts new standards that are designed expressly to incentivize electric vehicles for model year 2027-2032 heavy duty vehicles. The standards are part of GHG emission regulations for trucks and buses.

EPA did not evaluate use of biodiesel and renewable diesel as part of engine systems to meet the new standards, focusing primarily on tailpipe emissions. However, the agency considered a range of alternative fuel and engine configurations, such as natural gas and hydrogen. EPA did recognize that equipment makers will continue to have the option to use biodiesel and renewable in their compliance strategies.

“EPA’s rule flatly dismisses the benefits of biodiesel and renewable diesel as the lowest-cost and most widely available options to kickstart decarbonization of the heavy-duty vehicle sector,” said Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. “There should be no uncertainty that biodiesel and renewable diesel also reduce criteria pollutants from heavy-duty vehicles, which will continue to be manufactured and used during the timeframe of this rule. EPA should recognize that biodiesel and renewable diesel merit a role in meeting these emission standards for heavy-duty vehicles.” READ MORE