Our focus this week is the Endangerment Finding, the 2009 scientific report that the EPA has used for more than 15 years to regulate GHG emissions on automotive and heavy-duty trucks. President Donald J. Trump and the EPA revoked the report on Thursday, stating the action by prior administrations to use the finding as the basis of environmental policy was regulatory overreach. We discuss what that means for Phase 3 GHG regs, the 2027 Low NOx rule and, more broadly, truck demand in the year ahead. We also ponder if Cat engines could make a comeback, both due to their longevity and the regulatory news. Then we address the nightmarish challenge that is selecting health insurance for small businesses and why national accounts can be an overlooked opportunity for independent aftermarket operations.
Lucas: Hey everybody. Lucas here for today’s TPS Weekly News Roundup. It’s been an incredibly busy week in the trucking industry.
I’m going to start in Washington, D.C., where on Thursday, President Trump and EPA Administrator Lee Zeldin revoked the Endangerment Finding. Now, if you don’t know what the Endangerment Finding is, it’s a scientific report that was released in 2009 that has allowed the EPA to regulate greenhouse gases. It’s been the basis for EPA Phase 1, Phase 2, Phase 3 regulations. It is now eliminated. President Trump calling it the greatest act in deregulation in American history. It is likely this will lead to some court challenges that I’d say, if it hasn’t already started, it will start next week. There will be some challenges from environmental groups, but as of today, the Endangerment Finding has been revoked. And with it, EPA Phase 1, Phase 2 and Phase 3 GHG regulations are now no longer applicable.
Could be a huge change for the trucking industry. This does not include the EPA 2027 Low NOx ruling — that was based under the Clean Air Act for the regulation of particulates. That will still move forward. Now, the EPA has said they intend to alter that regulation, but it is expected to still move forward. But this does mean the EPA Phase 3 regulations, which would’ve required 25% of all heavy-duty trucks sold in 2032 to be zero emission to no longer qualify. That no longer matters. So, a big change for trucking in the future of trucking.
What does it mean? Well, a couple things. One, it’s another good sign for truck sales. ACT Research had a piece this week looking at the three things that need to drive truck sales. One is regulatory stability. This is another win there. The other is freight rates.
Spot rates were up substantially in December and January due to winter weather across the United States, and the third being on the economy. And it’s expected that when we get the Q4 GDP results, that they will be really good. So, another good sign for [truck demand].
Actually, had a piece that I wrote that published today, if you didn’t see yet, talking about Caterpillar engines. Kind of on this focus of everything that forced Cat to get out of the industry — all the regulations that maybe made Cat decide they didn’t want to make engines anymore — have now basically been thrown to the side. Could Cat engines come back? We don’t know yet, but it’s something to consider. There’s still a lot of Cat engines out there. More than a 100,000 active according to RigDig’s database. So it’d be interested to see what happens with Cat engines.
Some other stories this week. Beth had a great article about health insurance and how it’s crippling small businesses because rates are rising at such an incredible rate. Rates up 53% for small businesses since 2015. So, if you’re a small business, you’re struggling with health insurance, you’re looking for any sort of guidance you can find, check that article out. I also had a piece on national accounts for independent parts and service providers about if you’re considering national accounts, if it’s something you haven’t supported in the past, but you’re wondering if it’s worthwhile, just some interesting data there from the buying groups and from some service provider groups about why national accounts can be helpful for your business, why they can be profitable, why there’s something to consider. So, check that out.
Also, a lot of really good news this week. Check out the website. Check out social. We’re very active on all those platforms. Be sure to like and subscribe to these to these videos. Be sure to sign up for the newsletter. Have a great weekend. We will see you next week. Thanks everyone. Bye.
