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New Study says EPA Mandates Underestimated Costs for Trucks

WASHINGTON — The National Automobile Dealers Association (NADA) and American Truck Dealers (ATD) released a new report today that calls into question the Environmental Protection Agency’s (EPA) cost analysis of emissions control requirements for model year (MY) 2004-2010 commercial trucks.

According to the report, the mandates resulted in considerably higher prices for commercial vehicles, depressed sales, and delayed the environmental benefits that the EPA originally sought.

In a statement, NADA/ATD noted that very few studies have ever compared the EPA's cost predictions to the actual cost of meeting its motor vehicle emissions mandate.

Examing the 2004-2010 medium- and heavy-duty truck emissions mandates, the study reveals that "the EPA underestimated actual compliance costs on average by a factor of two to five. It shows what can happen when a regulatory proposal – based on far in-advance predictions – seeks to set mandates far in the future.

"Importantly, the study documents the real-world market disruptions that can occur as a result."

NADA/ATD said that the lessons learned from the report apply directly to the proposed model year 2017-2025 fuel economy regulations for light-duty vehicles.

"That rulemaking, combined with previous Obama administration fuel economy mandates, will raise the average price of a vehicle by $3,000, according to EPA and National Highway Traffic Safety Administration estimates," NADA/ATD said.

"When faced with unreasonable federal regulatory mandates that increase motor vehicle costs, buyers of light-duty vehicles – similar to what commercial truck buyers experienced – will seek out less expensive alternatives in the marketplace.”

You can view a copy of the report here.
 

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