Low NOx, GHG, and CARB Omnibus emissions regulations—take your pick—are all headed your way in one form or another over the next few years.
For owner-operators and small fleets in Washington, New Jersey, New York, Massachusetts, and Oregon: if you don’t have a plan in place when regulations take effect in 2025, the time to panic is now.
For the rest of the country, 2027 looms on the horizon.
A Truck, Parts, Service (TPS) article sums it up best:
“Information is beginning to trickle out about sales requirements for commercial truck dealers in California that will soon extend to other states committed to implementing the California Air Resources Board’s (CARB) Advanced Clean Trucks (ACT) and low-NOx Omnibus regulations.
“The complexity is staggering.”
While the complexity may be staggering, one thing is certain: doing nothing is always an option, but probably not a wise one.
Ask anyone who was around California in the 2010s and thought they could ignore the regulations. It started with fines and ended with truckers being unable to register their vehicles, forcing them to sell perfectly functioning Class 8 semi-trucks for a fraction of their worth.
Though many articles explain the issue in detail, few offer actionable solutions.
Let’s not waste time—here’s our take on where to begin.
The new truck engine that meets emissions regulations has much more hardware, software and added weight to comply with the new regulations going forward, so most would agree: owner-operators and small fleets certainly don’t want the new engine coming out of California that meets the 2025 NOx requirements in their new trucks—at least not today.
While pre-buying seems like a simple and logical solution, it’s tougher than you might think. Most of the slots for next year are already filled, and dealer allocations are uncertain at best.
There’s also the $20,000 question: how long will the 2024 legacy engines be available.
If you can pre-buy new and wait for your trucks, that’s a solid solution.
The used market is in an interesting phase. During the COVID era, used truck inventory was at an all-time low, while prices were at an all-time high.
Some late-model, low-mileage trucks were going for nearly the cost of new ones. Yet, with freight demand so high, customers were willing to pay almost anything to get trucks on the road immediately.
In the post-COVID era, freight prices have dropped, large fleets have gone out of business or finally turned over their fleets, leading to more inventory and lower prices.
This creates a unique opportunity for pre-owned buyers.
With the new regulations approaching, owner-operators and small fleets who missed out on—or can’t afford to—pre-purchase new trucks have a chance to buy late-model, low-mileage pre-owned trucks at a reasonable price. But don’t wait—time is running out to take advantage of this option.
Operators in newly regulated states who are either unaware of what’s happening in the heavy-duty trucking space or choose to ignore the reality will find themselves in trouble, just as many did in California in the 2010s.
These latecomers will be forced to sell their class 8 trucks at a steep discount, driving up the price of laste model used semi-trucks as supply becomes limited.
For those waiting for the industry to return to how it used to be, the road ahead is long, winding, steep, and filled with potholes.
We can hope that the trucking industry will revert to business as usual with less stringent emissions regulations, but hope alone won’t get you through.
You must face the reality before you. If your strategy is to beat the system, learn from California. Many beat the system—for a while—but they spent more time and money doing so than they would have if they had made proactive decisions from the start.
This doesn’t mean you should stop fighting for deregulation or questioning the process. But always make sure you have a plan in place if things don’t go your way.
Again, If your goal is to stay diesel for as long as you can there are only two viable avenues you can take..
We hope you found this article useful. We encourage you to do further research, talk to dealers, large fleets, and truck industry experts to make the most informed decision possible.
Owner-operators and small fleet owners are truckers at heart, but remember that a healthy bottom line is what keeps you on the road.
While these changes may seem daunting, someone will figure it out. Why shouldn’t it be you?