Washington’s supply chain at risk with EV mandates

October 31, 2024

New zero-emission vehicle (ZEV) mandates on the trucking industry are creating serious challenges for trucking fleets, which face limited and costly options in order to operate legally in Washington state. That should concern all of us, since almost 90% of consumer goods arrive by truck.

At issue is the state’s adoption of California’s Advanced Clean Trucks (ACT) program. ACT is meant to move the industry toward zero emissions for medium- and heavy-duty trucks. Beginning next year, 7% of all heavy-duty trucks sold in Washington must be ZEVs. As manufacturers work toward compliance, Washington truck dealers are being forced to sell new ZEVs before they can sell legacy trucks.

Trucking companies are also scrambling to adapt to these new requirements. But supply is limited, and what’s available is expensive and comes with significant operational limits. New ZEV commercial trucks cost more than two-and-a-half times more than their clean diesel counterparts. They also lose two-and-a-half tons of payload compared to a clean diesel truck. In addition, electric trucks compromise range, and fueling infrastructure takes years to permit and construct. Some dealers estimate that ZEV medium- and heavy-duty trucks will not work for 90% of existing routes.

That’s a significant challenge for a state as trade-dependent – and geographically diverse – as Washington. These added costs and uncertainties will lead to economic consequences that must be considered. California’s ACT program included a more gradual transition and greater incentives for medium- and heavy-duty trucks than here in Washington. A steeper compliance curve, fewer incentives and competition against California – the fifth-largest economy in the world – puts Washington at a significant competitive disadvantage.

To remain viable, operators will either maintain their current fleets, operating older, less efficient trucks longer, or shrink their Washington footprint in favor of states that haven’t adopted the ACT program.

Despite an effort to support EV transition in the public sector, even state agencies are experiencing the same operational challenges as private fleets.

At a recent meeting of the state’s Electric Vehicle Coordinating Council, executives from the Department of Commerce noted that staff are uncomfortable driving long distances or in poor weather in electric vehicles due to concerns about charging availability. As an alternative, they opt for gas-powered rentals from the state motor pool.

In the same meeting, Commerce staff admitted that “vehicle availability has been tough” and that mileage and towing capacity – especially for vehicles needed to haul heavy equipment – are an issue. It was also shared that staffers from the Department of Ecology have expressed “hesitation or concern” about a lack of charging infrastructure, especially for long trips.

This was further underscored by recent findings from EV researchers at the University of Washington. Professor Don McKenzie told CascadePBS the state needs 10 to 100 times more public charging stations – and they need to become as ubiquitous as gas stations. But the economics do not pencil out for that to happen anytime soon, he said.

The trucking industry shares many of these same concerns. However, the trucking industry won’t have the flexibility of reverting back to legacy vehicles when these issues arise. The future of our supply chain is at stake with ZEV mandates on the commercial trucking industry. And we need a better, more reasoned pathway to successfully migrate to a carbon-free transportation sector.

Our industry trade group, Washington Trucking Associations (WTA), believes this is possible, but forcing the move before the technology is ready will have much larger implications for our supply chain and trade-dependent economy. We need only look to the recent (and brief) East Coast port strike, when shoppers raided store shelves for basic supplies such as toilet paper – shades of the COVID pandemic all over again.

WTA has repeatedly expressed concerns over the impact of these new regulations to Gov. Jay Inslee and key legislative leaders. ACT’s implementation timeline is too aggressive and does not accommodate innovation or technological limitations.

Members of Washington’s trucking industry are evaluating how current emission technology fits into their fleet operations and are checking in with utility providers on the availability of adequate power resources and the timelines to install charging stations.

We are committed to working with all stakeholders to find a balanced approach that leads to decarbonization but also protects the backbone of our supply chain for our trade-dependent economy.

Now is the time for thoughtful consideration of our supply chain, our infrastructure network and the daily needs of Washingtonians met by the trucking industry. Our economy – and way of life – depend on it.