EPA 'grossly' underestimated costs of emissions controls, study says

The NADA/ATD study reveals that the EPA underestimated actual compliance costs on average by a factor of two to five. (NADA/ATD graphic)

The Trucker News Services

3/12/2012

WASHINGTON — The National Automobile Dealers Association and American Truck Dealers have released a new report that calls into question the Environmental Protection Agency’s cost analysis of emissions control requirements for model year 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, the report says.

Indeed, the study reveals that the EPA underestimated actual compliance costs on average by a factor of two to five.

“Until now, few studies have ever compared the EPA’s cost predictions to the actual cost of meeting its motor vehicle emissions mandates,” NADA/ATD said in a statement. “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.”

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Additionally, the lessons learned from this report “apply directly” to the proposed 2017-2025 fuel economy regulations for light-duty vehicles, the report sponsors explain.

“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.”

NADA represents nearly 16,000 new-car and -truck dealerships with 32,500 franchises, both domestic and international. For more information, visit www.nada.org.

The American Truck Dealers, a division of NADA, represents about 2,000 new medium- and heavy-duty truck dealers. Founded in 1970, ATD members share in NADA’s programs, services and benefits. For more information, visit www.atd.org.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

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