On December 20, the Environmental Protection Agency (EPA) released a final Nitrogen Oxide (NOx) rule for commercial motor vehicles (CMVs). ATD President Laura Perrotta and NADA/ATD Vice President of Regulatory Affairs Doug Greenhaus attended the Washington, D.C. event at which EPA Administrator Michael Regan announced the rule.
According to EPA, the new rule’s mandates and testing requirements fall closer to proposed Option 1 than to ATD’s preferred Option 2 and will impose between $39 and $55 billion in new regulatory costs on the American economy between 2027 and 2045. In addition to pushing for Option 2, ATD had urged the EPA to consider additional regulatory reforms that would have made the rule more achievable and affordable for customers.
EPA’s new rule will increase the cost of CMVs by tens of thousands of dollars and could also result in real or perceived maintenance and reliability challenges. The EPA is also mandating longer useful life and warranty periods, i.e., vehicles must meet stringent emissions mandates in-use for longer periods of time.
At the press conference, EPA Administrator Michael Regan stated that EPA is moving forward with “Phase 3” greenhouse gas (GHG) rule standards for CMVs that will begin in model year 2027. A notice of proposed rule making is expected to issue next spring.
The American Truck Dealers (ATD) supports standards for cleaner air and healthier communities, which means turning over the fleet to replace older commercial motor vehicles with newer, greener ones. Currently some 50 percent of CMVs operating on our roads lack the latest emissions control technologies. Unfortunately, EPA’s new NOx rule will likely serve to deter sales and may even result in a low buy/no buy scenario that is neither good for the economy or the environment.
ATD expects to offer more insight on the new rule moving forward.