/twitter-x.svg)
/twitter-x-red.svg)
Emissions Regulations Affect Fleets’ Costs
The most impactful environmental regulations for trucking are the emissions standards set by the U.S. EPA and CARB. These rules primarily regulate original equipment manufacturers (OEMs) in the manufacturing/sale of their trucks and powertrain assets.
While reducing harmful emissions, environmental protections also increase the costs of fleet equipment. The latest wave of standards affecting model year 2027 vehicles could increase truck prices by as much as $25,000.
The Trump administration will likely further order the EPA to weaken state and federal greenhouse gas emissions standards for vehicles, easing the rate at which trucks get more expensive. However, Trump’s auto policies will also heavily disrupt automotive production according to experts.
EPA’s latest major emissions rules regulate nitrogen oxide (NOx) and greenhouse gas emissions. Both regulations introduce lower pollutant standards and longer warranty period requirements, raising equipment costs.
EPA’s latest rule on truck emissions, Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles–Phase 3 (GHG3), received the most attention. This rule is most likely to face revisions from the new administration.
Trucking industry groups overwhelmingly criticized GHG3, calling the rule “unrealistic” and an “electric vehicle mandate.” Some industry groups filed suit against EPA for the rule. Partisan lawmakers previously introduced bills to block the rule. Republican attorneys general from 24 states also joined a lawsuit challenging GHG3.
During the 2024 campaign, Trump suggested he would again roll back EPA’s emissions rules. Trump’s pick to lead the EPA, Lee Zeldin, also promised “fair and swift deregulatory decisions.”
The first day of the Trump administration did not terminate GHG3. However, the president did begin his battle with emissions standards. One of his first executive orders mandated an immediate review of all agency actions that “potentially burden the development of domestic energy resources,” including emissions standards. The aim of the review is to ultimately remove or revise those standards. In the same executive order, he required a review to challenge whether the EPA can regulate greenhouse gases at all and paused funding from the Infrastructure Investment and Jobs Act that supported electric vehicles.
GHG3 likely won’t disappear overnight. In his first term, when Trump weakened EPA vehicle emissions standards, he instead replaced the existing regulation with a weaker version. A Trump EPA would likely replace GHG3 with a weaker version, maintaining some portions of the original rule’s timeline. How exactly this new, weaker rule could change the industry is still a mystery.
The Truckload Carriers Association’s VP of government affairs, David Heller, thought the administration might tweak its timeline to be more forgiving for new equipment.
“I think there will be major discussions regarding strategic improvements, possibly more realistic timelines because the timelines that are out there right now are just not working for the industry,” Heller stated.
Expedited Environmental Permits
This past December, Trump posted on social media that any group investing a billion dollars in the U.S. “will receive fully expedited approvals and permits, including, but in no way limited to, all environmental approvals” for his next term. Trump on his first day ordered a review of permitting processes like the National Environmental Policy Act (NEPA) and ordered the Council on Environmental Quality to propose rescinding NEPA regulations. A reduction in permitting requirements may slightly boost economic activity and, subsequently, freight demand.
Fleet owners can feel confident in assuming the new administration will weaken emissions standards for new equipment eventually. However, fleets should keep an eye on how exactly this deregulation will roll out. The nature and timeline of GHG3’s deregulation will be a factor in the cost of future trucks.
To read this article in its entirety click here.
