Inflation has dropped drastically in the United States, faster than in other countries, but Americans still seek cheaper prices across the economy and create greater opportunities for upward mobility.
In a surprising twist, the U.S. Environmental Protection Agency’s latest standards to cut air pollution from heavy-duty vehicles could provide these economic savings to consumers. By steering the trucking industry towards cleaner, cutting-edge technologies like electric trucks, HDV standards pave the way for cheaper goods, boost domestic manufacturing, and create jobs in growing global industries.
At their core, the new EPA policy targets the pervasive issue of HDV tailpipe pollution exhaust—one of the leading sources of toxic air affecting 72 million Americans living along freight corridors. For too long, these communities have inhaled the toxic output of diesel engines, which, despite their effectiveness for hauling heavy loads, emit over 40 known carcinogens and are responsible for thousands of premature deaths each year in the U.S.
HDV pollution’s deadly effects are unequally distributed, disproportionately falling upon low-income households and people of color. So, in addition to cleaner air nationwide, new HDV emission standards are a step toward remedying unfair access to clean air.
EVs cut toxic fumes that are polluting our communities and overheating our planet – Americans who care about reducing pollution deserve the choice to charge. But beyond environmental benefits, new HDV standards will catalyze technological innovation and industrial growth, setting the stage for a future where electric HDVs help fleets recruit and retain drivers and other employees, slash operational costs, and spark job creation in emerging, sustainable industries. Let’s delve into how electrification can propel America’s economy forward.
Driver Recruitment and Retainment Advantages
One of the most immediate benefits for trucking fleets is the appeal electric HDVs have for drivers. Operating an EV comes with numerous advantages for drivers including smoother rides, less vibration, and reduced noise levels compared to traditional diesel trucks.
Francisco Cervantes draws on his experience driving an electric HDV to conclude “How do you get younger drivers into this industry? I think technology like this is the way to do that. It’s very smooth, very quiet. You can meditate inside an electric truck. Sounds like a hoverboard when you take off and it’s surprisingly powerful. And the steering, when you steer, it’s just like butter.”
Drivability benefits means that fleets adopting electric HDVs are likely to find themselves leading the pack in terms of driver satisfaction, which should improve their ability to recruit and retain drivers, a significant economic advantage in an industry that faces chronic labor shortages.
Lower Cost Trucking
Total cost of ownership is the ultimate economic metric for evaluating vehicle technology, covering all expenses associated with purchase and operation. A study by Rousch Industries projects that by 2027, electric HDVs will achieve unsubsidized ownership savings across nearly all vehicle categories because of electric vehicles’ significant fuel and maintenance savings. Factoring in policy support like the Inflation Reduction Act’s $40,000 tax credit, some types of electric HDVs already deliver ownership savings compared to their diesel counterparts.
Energy Innovation research suggests electric HDV purchase costs will undercut diesel years or decades earlier than anticipated. As battery technology advances and production scales up, the economic benefits of electric HDVs will become widely recognized and substantial.
Real-world experiences support these forecasts. For instance, PepsiCo’s fleet of electric trucks, including one that logged 1,076 miles in a single day, showcases the financial advantages of electric HDVs.
According to Adam Buttgenbach, PepsiCo’s Director of Fleet Engineering & Sustainability: “We’ve seen in certain duty cycles and in certain asset classes that the economics already make sense from the fuel savings, from the maintenance savings, from the driver turnover and positive impact on our employees operating the vehicles. We see electric vehicles in certain asset classes making fiscal sense today without grants and initiatives.”
Increasingly attractive HDV economics is propelling growth in zero-emission HDV sales. In 2022 zero-emission HDV sales jumped to 9,842, the most recent data covering a full year of sales, the clean transportation industry association CALSTART found. 2022 zero-emission HDV sales were 12x larger, i.e., increased more than 1,000%, compared to 2021 sales. This outpaces any previous year-over-year growth ever witnessed in the light-duty passenger vehicle market.
Quality Job Growth
The transition to electric HDVs can also be a stimulus for domestic manufacturing and quality job creation. Growth in electric HDV and other EV demand will require a workforce skilled in EV and charging infrastructure technology, from manufacturing to maintenance. This shift opens new avenues for employment in future-oriented, sustainable industries.
New domestic HDV manufacturing investment commitments are projected to create 24,000 jobs and would result in enough manufacturing capacity to produce 295,000 HDVs annually, equal to 59% of current U.S. sales.
Building, operating, and maintaining electric HDV charging infrastructure will deliver even larger employment benefits, creating as many as 262,000 jobs by 2032. 90% of these jobs are projected to be in accessible but well-paying blue-collar positions, doing work like building vehicle charging stations or upgrading the electricity grid.
Reduced Uncertainty Spurs Investment and Innovation
Newly finalized EPA standards for HDV emissions reduce market uncertainty by setting a clear direction for the future of transportation. This clarity is crucial for businesses and investors, building the confidence needed to commit capital towards innovative solutions and technologies within the electric vehicle space.
The result is a virtuous cycle of investment and innovation that drives further advancements in EV technology, infrastructure, and performance – perhaps why major HDV manufacturers like Ford and other companies in the Heavy-Duty Leadership Group publicly supported new EPA standards.
Policymakers Need to Keep Their Hands on the Wheel
Despite impressive market momentum and increasingly compelling economic advantages to economic gains and momentum in the market, it’s a mistake to think we can outsource the zero-emission HDV transition to the market’s invisible hand. Every fleet operator and truck driver, everywhere should have the choice to make their next truck a clean truck.
Without policy interventions, various behavioral, institutional, and systemic barriers could significantly slow down progress. Considering the urgency with which we need to deploy climate solutions and the extensive public health and economic benefits at stake, active policy intervention is crucial.
To unlock the full environmental and economic potential of zero-emission HDVs, policymakers must stay engaged. The most effective strategy involves a comprehensive policy mix, with vehicle emission standards as a foundational element.
While the EPA’s new pollution standards for HDVs are a groundbreaking step forward, policymakers can push harder to maximize the environmental stewardship and economic opportunities they present.
A key action point is for more states to adopt Advanced Clean Truck standards, which have been adopted by 12 states, including California, which pioneered this policy back in 2021, using its unique authority to set vehicle standards if they are stronger than federal one. Empirical evidence speaks to the effectiveness of Advanced Clean Trucks standards.
In 2023, California saw zero-emission trucks accelerate past 7% of HDV sales, two years ahead of schedule. And, in the 12 Advanced Clean Trucks states, zero-emission HDV sales are accelerating faster, accounting for 35% of national zero-emission HDV sales despite being only 25% of the national market.
It is also crucial for a new round of federal HDV standard to ramp up pollution reduction targets for long-haul tractor-trucks. Newly finalized rules are less ambitious for long-haul tractor-trucks and first take effect later in 2030, instead of 2027 like most other HDVs.
While we haven’t crossed the finish line yet, we’ve witnessed historic progress. The new EPA HDV standards are not only a victory for the environment but also deliver substantial benefits to the economy, workers, manufacturing, and innovation sectors. In a world thirsty for uplifting news, these developments are a refreshing ice-cold drink.
