In transporting necessary goods and materials across the country, trucking certainly plays a vital role in the American economy. The industry, however, consistently faces a number of regulatory burdens that often impact its operation and competitiveness and have significant consequences both for itself and the nation as a whole.
Among the latest encumbrances placed on the trucking business through various agencies, the EPA in late December finalized a 1,153-page ruling that aims to reduce harmful emissions from large vehicles like trucks, buses and construction equipment. Stakeholders are currently trying to understand the impact of the edict, which applies to new vehicles made for the U.S. market and requires manufacturers to reduce emissions of pollutants through the use of advanced technologies like diesel particulate filters, selective catalytic reduction systems and engine management systems.
The ruling goes into effect for model year 2027 commercial vehicles, tightening nitrogen oxide limits to a level 80%-plus below the current standard and reducing the particulate matter limit by 50%. The agency will also require that OEMs extend warranties to 450,000 miles from 100,000 and useful life limits to 650,000 miles from 435,000. The rule then requires regular testing of vehicles to ensure they continue to meet emissions standards throughout their useful life.
One of the many foreseen challenges is the high cost of compliance for manufacturers and fleet operators, who will need to invest in new technologies and equipment to meet the standards. This has raised concerns about the competitiveness of the U.S. heavy-duty vehicle industry and the potential for job loss. Although the EPA may beg to differ, according to analysis conducted by Ricardo Strategic Consulting, this ruling alone will increase manufacturing costs of diesel trucks by an average of $42,000. The higher the cost of new trucks, the higher the shipping cost for the end user. Owner-operators and smaller fleets will be left to choose between compliance and going out of business.
Many in the industry believe the rule is just another regulatory burden coming from a D.C. bureaucracy that will cripple the industry – in its outlook, driver shortage and pipeline – and the sector’s ability to ship goods for customers for a fair price.
While 2027 may feel far away, staying current on federal, state and local laws and regulations is important. Our Transportation and Logistics professionals possess the most current knowledge of transportation issues, regulations and trends. We can work with you to seek innovative ways to reach your strategic goals. To learn more, visit our Transportation & Logistics Industry Group page or contact us today.
About Schneider Downs Transportation & Logistics Services
The Schneider Downs Transportation & Logistics industry group includes assurance, tax, technology and management consulting professionals who combine their individual expertise to serve transportation and logistics companies throughout the United States. We possess the capabilities and industry expertise to provide our clients with state-of-the-art technologies and timely communication of the most current and pervasive legislative and regulatory changes impacting the industry.
