WASHINGTON — Companies representing all segments of the trucking industry are warning of a staggering $1 trillion price tag that they claim sets up a roadblock to the Biden administration’s push to decarbonize the industry.
A study released on Tuesday commissioned by the Clean Freight Coalition (CFC), whose members include the American Trucking Associations, LTL carriers, truck dealers and truck stop operators, concluded that commercial trucking would have to invest more than $620 billion in charging infrastructure, with another $370 billion coming from utility companies to upgrade their grid networks to meet the demand.
“This nearly $1 trillion expenditure does not account for the cost of new battery-electric trucks, which according to market research can be two to three times more expensive than their diesel-powered equivalents,” the CFC asserted, adding that a diesel Class 8 truck costs roughly $180,000, while a comparable battery-electric truck costs over $400,000.
The CFC study was released ahead of the Environmental Protection Agency’s plan to finalize a rule requiring major cuts to truck engine emissions beginning with the 2027 model year (MY) and extending to MY2032.
ATA and owner-operators both have staunchly opposed EPA’s greenhouse gas emissions rule, which generated over 1,000 comments since it was proposed last year, citing costs to the industry and unrealistic and overly aggressive timelines.
However, “now that we have data [on full electrification], we’ll work with legislators and regulators to let them know that … the tab eventually is going to be picked up at least in part by the consumer,” said CFC Executive Director Jim Mullen.
“Consumers will see fewer trucks [available] for the same amount of freight,” commented ATA CEO Chris Spear. “That’s the awareness and it’s going to come quick. We’re not saying no to zero emissions; we just need a path to get there, and [EPA’s proposed rule] is not it.”
Wilfried Aulbur, a senior partner at Roland Berger, a Germany-based management consultant that conducted the study, said transitioning trucking to zero carbon emissions requires being open to alternatives in the short run that may not be based on electric batteries, such as biodiesel fuel.
“It also is clear that an industry with a yearly turnover of about $800 billion and a profit margin around 5% cannot invest $620 billion without financial support or a significant increase in freight rates,” Aulbur said.
The ATA, the American Truck Dealers and other carrier groups also support in the near term repealing the 12% federal excise tax on the price of a new truck, a legislative proposal currently pending in Congress.
“Get that older equipment off road and replace it with eco-diesel equipment that’s available right now that could be impactful,” Spear said. “Start with that, and give us more time to build out the grid long-term.”
EV trucking’s opposing view
While environmental groups support the Biden administration’s aggressive timeline, the Zero Emission Transportation Association (ZETA), a coalition advocating for 100% electric vehicle sales, believes EPA’s zero-carbon timeline is not aggressive enough. The group represents trucking companies that are already marketing battery electric trucks, such as Tesla.
“We encourage [EPA] to finalize heavy-duty GHG standards that are more stringent than proposed and align with California’s Advanced Clean Trucks (ACT) regulation,” ZETA Executive Director Albert Gore stated in comments to the EPA rule.
“To meet the country’s commitments under the Paris Climate Agreement and the National Blueprint for Transportation Decarbonization, more than 55% of total class 4-8 vehicle sales must be zero-emission by 2030. Without a quicker transition, older, more-polluting vehicles will remain on the roads well into the future.”
ZETA was not available to comment on the CFC/Roland Berger study.
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