NCPA - National Center for Policy Analysis

New Heavy-Duty Truck Efficiency Regulations to Cost $200 Billion

June 23, 2015

The Environmental Protection Agency's second round of heavy-duty truck efficiency standards could cost more than $30 billion. For perspective, the first iteration imposed costs of $8.1 billion. Partnered with the Department of Transportation (DOT), EPA issued its latest round of greenhouse gas (GHG) standards, aiming to cut close to one billion metric tons of GHGs. The combined proposed rule consumed 1,329 pages, with a 971-page Regulatory Impact Analysis (RIA).


  • Total Costs will be $17.6 billion to $30.8 billion ($1.3 billion annualized).
  • Total Benefits include $203 billion to $276 billion ($11.5 billion annualized).
  • Estimated paperwork hours will exceed 67,000.

With more than $30 billion in long-term projected costs, the administration anticipates a majority of these costs will be passed on to consumers. Not surprisingly, the proposal is projected to trigger the Unfunded Mandates Reform Act because it will result in more than $100 million (adjusted for inflation) in annual burdens on states and private entities.

All of the costs appear to be on private entities and not on state and local governments. The administration will doubtless tout the benefits of the proposal, but at its core, it's a $30 billion rule that will raise prices and affect employment. Once published, it will put the nation on track for more than $200 billion in regulatory costs. That's a lot of distortion.

Source: Sam Batkins, "Heavy-Duty Truck Efficiency: Part II," American Action Forum, June 22, 2015.  


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