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Exclusive-U.S. EPA to consider tougher emissions rules for heavy trucks

By David Shepardson WASHINGTON (Reuters) - The U.S. Environmental Protection Agency (EPA) will consider adopting more stringent greenhouse gas emissions rules for heavy trucks...
Exclusive-U.S. EPA to consider tougher emissions rules for heavy trucks © Reuters. FILE PHOTO: Signage is seen at the headquarters of the United States Environmental Protection Agency (EPA) in Washington, D.C., U.S., May 10, 2021. REUTERS/Andrew Kelly
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By David Shepardson

WASHINGTON (Reuters) - The U.S. Environmental Protection Agency (EPA) will consider adopting more stringent greenhouse gas emissions rules for heavy trucks after Congress passed new incentives to speed the adoption of zero-emission vehicles, the agency told Reuters.

In March, the EPA proposed new rules to cut smog-forming and greenhouse gas (GHG) emissions from heavy duty vehicles. The agency said it will reopen the proposed GHG rules after passage in August of the climate and spending Inflation Reduction Act (IRA).

The Truck & Engine Manufacturers Association, which represent companies like Daimler (OTC:DDAIF) Trucks, Caterpillar (NYSE:CAT) and Cummins (NYSE:CMI), previously raised concerns the EPA proposal could boost costs and result in customers keeping "their higher emitting trucks longer."

EPA will be issuing a supplemental notice of proposed rulemaking to consider more stringent GHG standards for model years 2027 through 2029 in December.

EPA Office of Air and Radiation official Joseph Goffman told Reuters "the big change here is the Inflation Reduction Act. Congress definitely sent a very strong message backed by significant resources."

EPA believes much greater zero emission vehicle adoption rates are possible for 2027 through 2029.

The EPA still plans to finalize the proposed smog-forming truck rules by December.

Non-profit RMI said the IRA's up to $40,000 Qualified Commercial Clean Vehicle tax credit "will turbocharge adoption of electric medium-duty and heavy-duty trucks." and will electric trucks cheaper to operate than diesels in most cases.

In March, EPA said the new heavy truck GHG standards when fully phased in would result in up to 24-25% lower CO2 emissions.

EPA in March proposed tighter standards for 17 of the 33 subcategories of vocational and tractor vehicles including school buses, transit buses, commercial delivery trucks, and short-haul tractors.

Transportation is the largest source of U.S. GHG emissions, making up 29% of emissions and heavy-duty vehicles are the second-largest contributor, at 23%, the EPA said.

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    EUR/USD 1.0658 ↑ Sell  
    GBP/USD 1.2475 ↑ Sell  
    USD/JPY 157.91 ↑ Buy  
    AUD/USD 0.6469 Neutral  
    USD/CAD 1.3780 ↑ Buy  
    EUR/JPY 168.32 ↑ Buy  
    EUR/CHF 0.9808 Neutral  
    Gold 2,295.80 ↑ Sell  
    Silver 26.677 ↑ Sell  
    Copper 4.5305 ↑ Buy  
    Crude Oil WTI 81.14 ↑ Sell  
    Brent Oil 85.62 ↑ Sell  
    Natural Gas 1.946 ↑ Sell  
    US Coffee C 213.73 ↑ Sell  
    Euro Stoxx 50 4,920.55 ↑ Sell  
    S&P 500 5,035.69 ↑ Sell  
    DAX 17,921.95 ↑ Sell  
    FTSE 100 8,144.13 Sell  
    Hang Seng 17,763.03 ↑ Sell  
    Small Cap 2000 1,973.05 ↑ Sell  
    IBEX 35 10,854.40 Neutral  
    BASF 49.155 ↑ Sell  
    Bayer 27.35 ↑ Sell  
    Allianz 266.60 ↑ Sell  
    Adidas 226.40 ↑ Sell  
    Lufthansa 6.714 Neutral  
    Siemens AG 175.90 ↑ Sell  
    Deutsche Bank AG 15.010 Neutral  
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