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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Powered by tech giant Huawei 5G-Advanced network, a fleet of over 100 Huaneng Ruichi all-electric autonomous haul trucks and heavy equipment assets have been deployed at the Yimin open-pit mine in Inner Mongolia.
With more than 100 units on site, China’s state-backed Huaneng Group officially deployed the world’s largest fleet of unmanned electric mining trucks at the Yimin coal plant in Inner Mongolia this past week. The autonomous trucks use the same Huawei Commercial Vehicle Autonomous Driving Cloud Service (CVADCS) powered by the ame 5G-Advanced (5G-A) network that powers its self-driving car efforts. Huawei says it’s the key to enabling the Yimin mine’s large-scale vehicle-cloud-network synergy.
Huawei is calling the achievement a “world’s first,” saying the new system has improved operator safety at Yimin while setting new benchmarks for AI and autonomous mining.
The autonomous mine project aligns with a broader push by Chinese government and industry to integrate AI and advanced connectivity into traditional industries – an approach we’ve already seen meet with great success in port environments by Hesai and Westwell.
And, if technology like Rocsys’ charging robots take off, these autonomous haul trucks won’t even need anyone to plug them in at the end of their shifts!
For their part, Huaneng Ruichi claims its cabin-less electric offer an industry-leading 90 metric ton rating (that’s about 100 imperial tons) and the ability operate continually in extreme cold temperatures as low as -40° (it’s the same, C or F), while delivering 20% more operational efficiency than a human-driven truck.
The Huawei-issued press release is a bit light on truck specs, but similar 90 tonne electric units claim 350 or 422 kWh LFP battery packs and up to 565 hp from their electric drive motors and some 2,300 Nm (1,700 lb-ft) of tq from 0 rpm.
Huawei executives said the Ruichi trucks reflect the company’s vision for smarter mining operations, with the potential to introduce similar technologies in markets like Africa and Latin America. The 100 asset electric fleet marks the first phase of a plan to deploy 300 autonomous trucks at the Yimin mine by 2028.
Electrek’s Take
From drilling and rigging to heavy haul solutions, companies like Huaneng Group are proving that electric equipment is more than up to the task of moving dirt and pulling stuff out of the ground. At the same time, rising demand for nickel, lithium, and phosphates combined with the natural benefits of electrification are driving the adoption of electric mining machines while a persistent operator shortage is boosting demand for autonomous tech in those machines.
The combined factors listed above are rapidly accelerating the rate at which machines that are already in service are becoming obsolete – and, while some companies are exploring the cost/benefit of converting existing vehicles to electric, the general consensus seems to be that more companies will be be buying more new equipment more often in the years ahead – and more of that equipment will be more and more likely to be autonomous as time goes on.
SOURCES | IMAGES: Huawei, South China Morning Post, and Supply Chain Digital.
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Tesla has started accepting Cybertruck trade-ins, something that wasn’t the case more than a year after deliveries of the electric pickup truck started.
We are starting to see why Tesla didn’t accept its own vehicle as a trade-in: the depreciation is insane.
The Cybertruck has been a commercial flop.
When Tesla started production and deliveries in late 2023, the vehicle was significantly more expensive and had less performance than initially announced.
At one point, Tesla boasted having over 1 million reservations for the electric pickup truck, but only about 40,000 people ended up converting their reservations into orders.
Now, Cybertruck inventory is sitting unsold for months and Tesla is having to offer heavy discounts to move them.
We previously reported that Tesla refused to accept the Cybertruck, its own vehicle, as a trade-in more than a year after starting deliveries.
Tesla didn’t share an explanation at the time, but we assumed that the automaker knew the Cybertruck was depreciating at an incredible rate and didn’t want to be stuck with more trucks than it was already dealing with.
Now, Tesla has started taking Cybertruck trade-ins, at least for the Foundation Series, and it is now providing estimates to Cybertruck owners (via Cybertruck Owners Club):
Tesla sold a brand-new 2024 Cybertruck AWD Foundation Series for $100,000. Now, with only 6,000 miles on the odometer, Tesla is offering $65,400 for it – 34.6% depreciation in just a year.
Pickup trucks generally lose about 20% of their value after a year and 34% after about 3-4 years.
It’s also wroth nothing that Tesla’s online “trade-in estimates” are often higher than the final offer as noted in the footnote o fhte screenshot above.
Electrek’s Take
This is already extremely high depreciation, but Tesla is actually trying to save face with estimates like this one.
As Tesla wouldn’t even accept Cybertruck trade-ins, used car dealers also slowed down their purchases as they also didn’t want to be caught with the trucks sitting on their lots for too long.
On Car Guru, the Cybertruck’s depreciation is actually closer to 45% after a year and that’s more representative of the offers owners should expect from dealers.
That’s entirely Tesla’s fault. The company created no scarcity with the Foundation Series. They built as many as people wanted. In fact, they built too many and ended having to “buff out” the Foundation Series badges on some units to sell them as regular Cybertrucks and as of last month, Tesla still had some Cybertruck Foundations Series in inventory – meaning they have been sitting around for up to 6 months.
Now, Tesla is stuck with thousands of Cybertrucks, early owners are already getting rid of their vehicles at an impressive rate, and the automaker had to slow production to a crawl.
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Australian logistics company Linfox is making big moves to electrify its heavy-duty semi fleet with the addition of thirty new Volvo FH and FM Electric semi trucks as the Swedish brand works to begin production at its Brisbane facility.
Volvo Trucks is expecting to begin full scale production of its FH and FM Electric semi trucks at the Brisbane factory in early 2026, just in time to fill the Linfox order – which happens to be the company’s largest in Australia. So far.
“We are very proud to continue our close partnership with Linfox. The order for 30 Volvo electric trucks is proof of their trust in our company and in zero-emissions transport as a viable solution here and now,” said Roger Alm, President Volvo Trucks. “Our commitment to start building electric trucks in Australia demonstrates our confidence in this technology, and means we can offer an industry-leading range of purpose-built electric trucks all around the world.”
With the production kickoff of electric trucks in Australia, it means Volvo Trucks is building its big HDEVs and prime movers in five countries on three continents. Which, as the company’s electric fleet approaches the 100 millionth mile logged mark, probably means they’re pulling well ahead of some of the other guys.
“Linfox is excited to partner with Volvo in driving the future and leading sustainable logistics in Australia,” explains Peter Fox AM (Member of the Order of Australia), Executive Chairman of Linfox. “Further electrifying our fleet sets the standard for us and our customers and the entire industry.”
Linfox’ latest order includes 29 Volvo FH Electric and one FM Electric semi. The company currently has four electric Volvo trucks in its fleet of 195 semis, with plans to continue to electrify as ICE-powered assets reach retirement.
Electrek’s Take
Now counting miles in operation in the tens of millions and rolling out its third generation of electric semi trucks, Volvo (and, by extension, Mack and Renault) continue to build a huge lead in the commercial trucking space. The competition, meanwhile, seems content to post pictures of its first factory while trucks that have been on order for years still haven’t reached customers.
I can’t see how they (Tesla) catch up from here.
SOURCE | IMAGES: Volvo Trucks.
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