Consumers and dealers continue to navigate the tightening federal and California emissions standards and expectations as headwinds hinder adoption.
The American Truck Dealers (ATD), a division of the National Automobile Dealers Association (NADA), are in contact with government entities as they seek to meet emissions standards, which could see drastic cuts in engine emissions from the EPA, and consumer needs, leaders of those groups said during an ATD webinar today.
“We’ve met with the EPA and the White House on every level to communicate our message,” NADA Senior Vice President of Regulatory Affairs Dan Ingber said during the webinar. ATD’s primary message to lawmakers focuses on price, demand, training, labor, and investments, “and that’s where we’re really adding our voices on the consumer and dealer interest in these rules.”
In addition, availability of vehicles with engines that meet emissions standards remains a concern for places like California, ATD President Laura Perrota said during the webinar. California emissions standards are governed by the California Air Resources Board.
“There were 7,000 vehicles available with this [electric] engine last year, and now it’s down to 1,500, so this is coming fast and furious, and you can’t even imagine the scope of what those poor folks who only have dealerships in California are going through,” she said. “We have major affordability issues, lack of charging, range challenges.” These issues will result in “the lack of fleet turnover, which absolutely does nothing for the environment.”
NADA and ATD also say they are concerned about the potentially significant Phase 3 Greenhouse Gas programs awaiting heavy-duty vehicles set for model year 2027.
Beginning with that model year, the EPA’s proposed standards require engine emissions to be cut by 82.5% per unit compared to 2010 standards, Kaye Lynch-Sparks, associate director of legal and regulatory affairs at NADA, said during the webinar. A key factor for the rule adoptions will be the necessary fleet turnover to replace current fleets.
“The success or failure of this rule really hinges on the willingness and ability of the trucking fleets to invest in purchasing the new technology to replace the older high emissions trucks,” she said. “That’s what we’ve constantly harped on here is the true importance of fleet turnover, and the market transition is going to be a challenge to parties with the least amount of capital.”
Registration is now open for Equipment Finance Connect, the nation’s only dealer-centric equipment lending and leasing event, which will take place May 5-7 in Nashville, Tenn. Learn about the event and free dealer registration at EquipmentFinanceConnect.com.