NADA/ATD Study: EPA Underestimated Emissions Control Costs for Model Year 2004-2010 Heavy-Duty Trucks

Published March 8, 2012

WASHINGTON (March 8, 2012) - 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. The mandates resulted in substantially higher prices for commercial vehicles, depressed sales and delayed the environmental benefits that the EPA originally sought.

NADA/ATD released the following statement:

“Until now, few studies have ever compared the EPA's cost predictions to the actual cost of meeting its motor vehicle emissions mandates. The study, which looks back at the 2004-2010 medium- and heavy-duty truck emissions mandates, 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.

“The lessons learned from this report apply directly to the proposed MY 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. 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.”

Click here for the study.

 

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