Truck Manufacturers’ Disinformation Campaign Threatens Public Health and Clean Air Progress
A battle is brewing between state regulators and truck manufacturers over the implementation of crucial clean air regulations. Oregon and Massachusetts have proposed delaying enforcement of their state truck engine emissions standards, mirroring a broader push by manufacturers nationwide. These state standards, designed to protect public health and surpass federal EPA regulations, are now under attack through a calculated campaign of industry disinformation and market manipulation. Manufacturers are exploiting anxieties among truck dealers, using them as proxies in their fight against regulations aimed at reducing harmful emissions. This tactic, witnessed in recent meetings of the California Air Resources Board (CARB) and the Oregon Department of Environmental Quality, seeks to delay implementation of these vital standards until 2027, jeopardizing public health and clean air progress.
At the heart of this conflict are two key regulations: the Advanced Clean Truck (ACT) rule, mandating an increasing percentage of electric truck sales, and the Heavy-duty Omnibus ("Omnibus") rule, requiring a 75% reduction in NOx emissions from new heavy-duty engines compared to the 2010 federal standards. While manufacturers are currently overcomplying with both regulations in California, the only state where these standards are in effect for the 2024 model year, their behind-the-scenes actions reveal a concerted effort to renegotiate the rules they previously agreed to uphold. Bound by agreements not to directly oppose the standards, manufacturers have resorted to manipulating the market and leveraging their dealer networks to fight on their behalf.
This manipulation takes the form of draconian sales tactics that place the burden of compliance solely on dealers while disregarding the flexibilities built into the regulations. Manufacturers are imposing quotas on electric truck purchases, forcing dealerships to acquire a specified number of EVs before receiving any diesel-powered vehicles, even when electric options are unavailable for specific applications. This "ratio-ing" has led to a drastic decline in truck sales, with an 80% year-over-year decrease in Class 8 vehicle sales in California. Manufacturers further compound the issue by falsely attributing these shortages to the ACT regulation, misleading dealers about the true source of the problem. This manufactured crisis aims to pressure regulators into delaying the implementation of the emissions standards.
This strategy, while detrimental to dealers, only makes sense if the objective is to obstruct the regulations rather than comply. The fact that multiple manufacturers are pursuing this economically unsound approach strongly suggests collusion within the industry. Instead of collaborating with dealers as stipulated in the Clean Truck Partnership, manufacturers are prioritizing their anti-regulatory agenda over their business relationships and public health. This behavior underscores a cynical disregard for the spirit of the agreement and the well-being of the communities impacted by diesel pollution.
Furthermore, manufacturers are leveraging high-cost compliance strategies to further burden dealerships. They are eschewing the credit system established under the ACT and Omnibus rules, a mechanism designed to provide flexibility and reduce compliance costs. Manufacturers could offset any shortfall in electric truck sales or emissions reductions by purchasing credits from other manufacturers, particularly those specializing in electric vehicles. However, they refuse to participate in this market, artificially inflating compliance costs and exacerbating the hardships faced by dealers. They are also price-gouging on the electric trucks they do sell, charging significantly higher prices in the US compared to the European market. This calculated approach maximizes financial strain on dealers while simultaneously undermining the regulations.
The claim of product unavailability used to justify delaying regulations is a fallacy. Manufacturers have the capacity to comply with the standards, as demonstrated by PACCAR and Volvo, who have already certified their engines to meet the CARB 2024 requirements. Cummins, the largest engine manufacturer, has also confirmed its progress towards compliance. The issue is not a lack of technology or feasibility, but rather a deliberate choice by manufacturers to pursue high-cost compliance strategies to create a false sense of crisis. They are exploiting the flexibilities intended to ease the transition to cleaner technologies to obstruct the regulations and pressure regulators for delays.
The consequences of delaying these regulations are substantial and far-reaching. Delaying implementation until 2027, as advocated by the industry, could result in up to $3.5 billion in monetized health impacts, including premature deaths, increased emergency room visits, and lost school days due to asthma. This represents a significant setback in the fight for cleaner air and healthier communities, highlighting the urgency for regulators to hold firm against industry pressure.
State regulators must recognize the manipulative tactics employed by the trucking industry and prioritize public health over industry profits. They should resist calls for delays and enforce the existing regulations. If any concessions are made, regulators must ensure that the emissions reductions are still achieved through alternative mechanisms, such as the "legacy" provision in the Omnibus rule, which requires manufacturers to fund projects benefiting disadvantaged communities in exchange for selling non-compliant engines. This ensures that the burden of industry’s non-compliance falls on the manufacturers, not on the communities impacted by air pollution. Ultimately, the health and well-being of communities must take precedence over industry’s attempts to circumvent regulations designed to protect them. It is imperative that regulators hold firm and ensure that the intended benefits of these crucial clean air regulations are realized.
