Phase 2 environmental regulations include technology advances

by Talk Business & Politics staff ([email protected]) 165 views 

While big-rig manufacturers work to continue meeting existing federal environmental regulations, another regulation is set to go into effect Dec. 27.

The U.S. Environmental Protection Agency and National Highway Traffic Safety Administration announced the final rule for the second phase to reduce greenhouse gas emissions and fuel consumption for medium- and heavy-duty vehicles.

Phase 2 builds on the previous phase and includes “technology-advancing standards” implemented in phases through 2027 and “first-time greenhouse gas and fuel efficiency standards for trailers.” The first phase included model years 2014 and 2018.

As a result of Phase 2, vehicle costs are expected to increase as much as 12%, or $12,400, by 2027, compared to current model year vehicles, according to the rule. The cost for a model year 2027 trailer will increase 4%, or up to $1,110.

Kenneth Calhoun, vice president of customer relations at Truck Centers of Arkansas in North Little Rock, said the government estimates are “extremely conservative,” adding it would be a guess to know the true cost.

Calhoun, who also serves on the Technology and Maintenance Council for national trade association American Trucking Associations, was uncertain if big-rig manufacturers are ready for the new rule as they are still dealing with Phase 1 rules.

“There isn’t any more low-hanging fruit,” he said.

Another cost to consider will be semitrailer downtime because of maintenance on the new technology.

Downtime costs carriers $1,000 to $1,800 per day per vehicle, Calhoun said.

“New technology comes with a price tag,” he said.

While the cost for this phase will be greater than the previous, payback is expected in about two years for tractors and trailers, the rule shows.

Phase 2 is expected “to achieve vehicle fuel savings as high as 25%” per vehicle, the rule shows.

“Those small savings can be a very big deal,” Calhoun said.

To achieve Phase 2 standards, manufacturers will be free to choose from a mix of technologies, such as “engine improvements,” “automated transmission” and “lower rolling resistance tires and automatic tire inflation,” according to the rule.