EPA finalizes strongest-ever truck rule to save billions in health & fuel costs
EPA’s Heavy Duty “Phase 3” truck rule has been finalized, and surprisingly enough it comes in stronger (albeit slightly) than the rule that was originally proposed last year.
The final rule has just come out, so there’s plenty to comb through, but the EPA went over some key points in a press call yesterday.
Transportation is the largest-polluting sector in America, and heavy duty vehicles make a disproportionate amount of that pollution. Light duty vehicles still produce the majority – about 60% of transportation emissions are from light-duty vehicles – but heavy duty vehicles are responsible for about a quarter of transportation emissions, despite only being 5% of vehicles.
This underlines the importance of regulating these vehicles, and the outsize gains that we can get from doing so.
New rule saves 1 billion tons CO2 and $13 billion/yr
The main numbers for the finalized rule are that it will save $13 billion per year in annualized net benefits for society, avoid a billion tons worth of greenhouse gas emissions, and reduce air pollution for the 72 million Americans who live within 200 meters of a heavy duty truck route (a group that is disproportionately from disadvantaged communities). The rules cover model years 2027-2032.
The cost and health savings make these rules a rare win-win-win. Businesses save money on costs (approx. $3.5b annually, between $3-10k per vehicle depending on type), health and environmental savings benefit everybody, and the industry gets nudged towards a future that it needs to accept anyway. Or, well… not that rare, considering most positive environmental moves offer these sorts of benefits.
Like the light-duty rules, the heavy-duty rules are “technology neutral,” in that they don’t mandate manufacturers use specific technologies, but rather meet certain pollution guidelines that will require significant improvements in engine technologies used. This means hybrid, plug-in hybrid, battery-electric and fuel cell vehicles are all on the table.
The rule actually got stronger for once
And the most remarkable thing about the rules is that they actually got (very slightly) stronger between the proposed and final rule, due to the 175,000 comments EPA said were left during the comment period.
EPA originally stated that the proposed rule would reduce carbon by 1.8 billion tons, but had to re-do the baseline of these calculations due to California’s strong truck rules, which will reduce overall emissions by a huge chunk (both in California and other states). Now, EPA says that the proposed rule would have reduced carbon by 998 million tons under the revised baseline, or 1 billion tons for the final rule. So, only improved by .2%, but still a tiny improvement, as opposed to going in the other direction.
This is not a common occurrence – we pointed out last week that the opposite happened with light-duty rules, and that this seems to be depressingly common lately. Whenever a new rule comes out, no matter how well-reasoned and attainable, industry lobbies for it to be loosened (and not just in the US, see: Europe, Australia), and usually compromises go their way, not the public’s way.
The changes between the proposed rule and the final one include a softening of the rules from 2027-2030 to give companies more time to arrange charging infrastructure, but also stronger emissions limits in 2031 and 2032 for most vehicle classes. For example, certain medium-heavy vocational vehicles will have 40% stronger limits in 2032 in the final rule as compared to Phase 2 regulation, rather than 35% in the proposed rule.
EPA didn’t break down every change between the proposed and final rule on the press call, because this rule covers so many different classes of vehicle. But overall, this is an improvement compared to the changes in the light duty rules – those only got weaker, whereas these got stronger, just with a little more flexibility in adoption timelines.
Broadly positive reaction to the heavy duty truck rule
Reaction has been broadly positive to the adoption of these phase 3 rules. The American Lung Association celebrated the rules, which along with the EPA’s previous NOx rule brings $22b in health savings per year, and pointed out the rarity of rules getting stronger during the rulemaking process. It also noted that Americans support strong truck regulations by extremely wide margins. Praise also came from the Sierra Club, the Hip Hop Council (who focused on the environmental justice aspect of these rules), and even from industry representatives.
Some industry sources did oppose these rules, or ask for them to be scaled back, such as various oil companies and some truck makers (for example Daimler Trucks and Volvo Trucks, both of which publicly supported the rule but privately called for its delay, despite being leaders in electrified trucks). But several large groups supported them.
In the runup to adoption of the rule, 100+ businesses called for a strong truck standard. This included a newly-formed industry group called the Heavy Duty Leadership Group, which called for rapid approval of a strong EPA rule, and each of its four participants – Ford, Cummins, BorgWarner and Eaton made statements praising the final rule that EPA adopted today. Even military leaders had good things to say about the new rule, through SAFE, an organization that advocates a break from oil from an energy and national security perspective.
How the Biden Administration has helped electrification from every angle
One strength of the rules is how comprehensive they are, especially when considering parallel regulations and incentives created by the administration. Many have pointed to individual EPA rules and stated that they are too narrow, or don’t properly acknowledge the full picture of how electrification would work. But when taken as a whole, the actions done by the EPA and the Biden administration cover almost every conceivable angle of the electrification of transportation.
This rule regulates truck carbon emissions, but another rule regulated smog-forming emissions, and another one regulated railroads, and we still have one coming to increase fleet mpg requirements (building on a change in EV mpg calculations so manufacturers can’t just build a few compliance EVs).
To take care of upfront costs, the Inflation Reduction Act includes commercial credits for both ZEV truck purchases and charger installations (and domestic production provisions and incentives, too). The Bipartisan Infrastructure Law incentivizes chargers further. Ports get specific support from the Clean Ports Program, as do school buses, and the EPA is ensuring that California will remain a testbed for even better environmental rules. The administration also recently released a master infrastructure plan to electrifying all the US’ freight routes by 2040.
So… that takes care of just about everything, right?
Electrek’s Take
As we always say, we’d never mind stronger rules than those that get implemented. We need to electrify transportation, and soon, and we simply aren’t doing enough to fight climate change.
But despite my constant “why not sooner?” headlines, I have been particularly impressed by recent truck regulations in this country (both California’s and this new EPA rule). I also think the EPA’s light-duty rule is exceedingly well-reasoned and works towards fixing some huge problems (like vehicle size), though the original proposal was better.
And that’s the most impressive part about this rule. I lamented in the Take for the light-duty rule that regulations seem to always get compromised in favor of polluters, never in favor of the public interest. But this time, that didn’t happen – it’s a compromise, and the polluters did get a little bit of what they wanted, but the public also got even better final regulations than we originally were going to get, and it balanced out to a very slightly better rule in the end.
Like the Lung Association said (understatedly): “this does not always happen.” And yet, today, it did.
We can all be glad for that – and the 72 million Americans who live within 200 meters of a truck route, especially, will get to breathe a lot more cleanly in the coming years.
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Environment
EcoFlow members can save up to 65% on power stations while supporting disaster relief during the 2025 Member’s Festival
Portable power station specialist EcoFlow is kicking off its third annual Member’s Festival this month and is offering a unique new rewards program to those who become EcoFlow members. The 2025 EcoFlow Member’s Festival will offer savings of up to 65% for its participating customers, and a portion of those funds will be allocated toward rescue power solutions for communities around the globe through the company’s “Power for All” fund.
EcoFlow remains one of the industry leaders in portable power solutions and continues to trek forward in its vision to power a new tech-driven, eco-conscious future. Per its website:
Our mission from day one is to provide smart and eco-friendly energy solutions for individuals, families, and society at large. We are, were, and will continue to be a reliable and trusted energy companion for users around the world.
To achieve such goals, EcoFlow has continued to expand its portfolio of sustainable energy solutions to its community members, including portable power stations, solar generators, and mountable solar panels. While EcoFlow is doing plenty to support its growing customer base, it has expanded its reach by giving back to disaster-affected communities by helping bolster global disaster response efforts the best way it knows how– with portable power solutions.
EcoFlow and its members look to provide “Power for All”
Since 2023, EcoFlow has collaborated with organizations worldwide as part of its “Power for All” mission. This initiative aims to ensure access to reliable and timely power to disaster-affected communities across the globe, including rescue agencies, affected hospitals, and shelters, to support rescue and recovery efforts.
This fund most recently provided aid for communities affected by the recent Los Angeles wildfires, assistance to the Special Forces Charitable Trust (SFCT) in North Carolina following severe hurricanes, and support for non-profits engaged in hurricane preparedness in Florida and the Gulf Coast. Per Jodi Burns, CEO of the Special Forces Charitable Trust:
In the wake of devastating storms in Western North Carolina, reliable power was a critical need for the families we serve. Thanks to EcoFlow’s generous donation of generators, we were able to provide immediate relief, ensuring these families and their communities had access to power when they needed it most. We are so impressed with EcoFlow’s commitment to disaster response through their ‘Power for All’ program. It has made a tangible impact, and we are deeply grateful for their support and partnership in helping these families recover and rebuild.
In 2024, the US experienced 27 weather and climate events, each causing losses exceeding $1 billion, marking the second-highest annual total on record, according to National Centers for Environmental Information. The increasing frequency and severity of natural disasters underscore the critical need for reliable and timely power solutions during emergencies, much like EcoFlow and its members are helping provide through the “Power For All” initiative.
To support new and existing EcoFlow members, the company is celebrating its third annual Member’s Festival throughout April to offer a do-not-miss discount on its products and donate a portion of all sales to the “Power for All” fund to provide rescue power to those in need in the future. Learn how it all works below.
Save big and give back during the 2025 Member’s Festival
As of April 1st, you can now sign up to become an EcoFlow member to participate in the company’s exclusive 2025 Member Festival.
As a member, you can earn “EcoFlow Power Points” by completing tasks like registration, referrals, and product purchases and tracking your individual efforts toward disaster preparedness and recovery.
Beginning April 4, EcoFlow members will also be able to take advantage of exclusive discounts of up to 65% off select portable power stations, including the DELTA Pro Ultra, DELTA Pro 3, DELTA 2 Max, DELTA 3 Plus, RIVER 3 Plus, and more. However, these sale prices only last through April 25, so you’ll want to move quickly!
Click here to learn more about EcoFlow’s “Power for All” campaign. To register for EcoFlow’s 2025 Member Festival in the US, visit the EcoFlow website. To register as a member in Canada, visit here.
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Tesla is losing another top talent: its long-time head of software, David Lau, has reportedly told co-workers that he is exiting the automaker.
Tesla changed how the entire auto industry looks at software.
Before Tesla, it was an afterthought; user interfaces were rudimentary, and you had to go to a dealership to get a software update on your systems.
When Tesla launched the Model S in 2012, it all changed. Your car would get better through software updates like your phone, the large center display was responsive with a UI that actually made sense and was closer to an iPad experience than a car.
Tesla also integrated its software into its retail experience, service, and manufacturing.
David Lau deserves a lot of the credit for that.
He joined Tesla in 2012 as a senior manager of firmware engineering and quickly rose through the ranks. By 2014, he was promoted to director of firmware engineering and system integration, and in 2017, he became Vice President of software.
Lau listed the responsibilities of his team on his LinkedIn:
- Vehicle Software:
- Firmware for the powertrain, traction/stability control, HV electronics, battery management, and body control systems
- UI software and underlying Embedded Linux platforms
- Navigation and routing
- iOS and Android Mobile apps
- Distributed Systems:
- Server-side software and infrastructure that provides telemetry, diagnostics, over-the-air updates, and configuration/lifecycle management
- Data engineering and analytics platforms that power technical and business insights for an increasingly diverse set of customers across the company
- Diagnostic tools and fleet management, Manufacturing and Automation:
- Automation controls (PLC, robot)
- Server-side manufacturing execution systems that power all of Tesla’s production operations
- Product Security and Red Team for software, services, and systems across Tesla
Bloomberg reported today that Lau told his team he is leaving Tesla. The report didn’t include reasons for his stepping down.
Electrek’s Take
Twelve years at any company is a great run. At Tesla, it’s heroic. Congrats, David, on a great run. You undoubtedly had a significant impact on Tesla and software advancements in the broader auto industry.
He is another significant loss for Tesla, which has been losing a lot of top talent following a big wave of layoffs around this time last year.
I wonder who will take over. Michael Rizkalla, senior director of software engineering and vehicle firmware, is one of the most senior software engineers after Lau. He has been at Tesla for 7 years, and Tesla likes to promote within rather than hire outsiders.
There are also a lot of senior software execs working on AI at Tesla. Musk has been favoring them lately and he could fold Lau’s responsibilities under them.
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Kia’s electric SUVs are taking over. The EV3 is the best-selling retail EV in the UK this year, giving Kia its strongest sales start since it arrived 34 years ago. And it’s not just in the UK. Kia just had its best first quarter globally since it started selling cars in 1962.
Kia EV3 is the best-selling EV in the UK through March
In March, Kia sold a record nearly 20,000 vehicles in the UK, making it the fourth best-selling brand. It was also the second top-seller of electrified vehicles (EVs, PHEVs, and HEVs), accounting for over 55% of sales.
The EV3 remained the best-selling retail EV in the UK last month. Including the EV6, three-row EV9, and Niro EV, electric vehicles represented 21% of Kia’s UK sales in March.
Kia said the EV3 “started with a bang” in January, darting out as the UK’s most popular EV in retail sales. Through March, Kia’s electric SUV has held on to the crown. With the EV3 rolling out, Kia sold over 7,000 electric cars through March, nearly 50% more than in Q1 2024.
The EV3 was the best-selling retail EV in the UK in the first quarter and the fourth best-selling EV overall, including commercial vehicles.
Starting at £33,005 ($42,500), Kia said it’s the “brand’s most affordable EV yet.” It’s available with two battery packs, 58.3 kWh or 81.48 kWh, good for 430 km (270 miles) and 599 km (375 miles) of WLTP range, respectively.
With new EVs on the way, this could be just the start. Kia is launching several new EVs in the UK this year, including the EV4 sedan (and hatchback) and EV5 SUV. It also confirmed that the first PV5 electric vans will be delivered to customers by the end of the year.
Electrek’s Take
Globally, Kia sold a record 772,351 vehicles in the first quarter, its best since it started selling cars in 1962. With the new EV4, the brand’s first electric sedan and hatchback, launching this year, Kia looks to build on its momentum in 2025.
Kia has also made it very clear that it wants to be a global leader in the electric van market with its new Platform Beyond Vehicle (PBV) business, starting with the PV5 later this year.
Earlier today, we learned Kia’s midsize electric SUV, the EV5, is the fourth best-selling EV in Australia through March, outselling every BYD vehicle (at least for now). The EV5 is rolling out to new markets this year, including Canada, the UK, South Korea, and Mexico. However, it will not arrive in the US.
For those in the US, there are still a few Kia EVs to look forward to. Kia is launching the EV4 globally, including in the US, later this year. Although no date has been set, Kia confirmed the EV3 is also coming. It’s expected to arrive in mid-2026.
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