Will The CARB ACT Block New Bobtail Sales?
One of the wonderful things about the propane industry is that we’re a small, close-knit family. Everyone knows everyone. We often have life-long relationships with friends within our industry and we look after each other.
So, when Andy Johnson from Lin’s Propane Trucks sent us this “Crises Alert,” we thought you’d be interested. I talked with Andy a few days ago and he said that most people have no idea what’s coming or how challenging the new regulations will become for medium-duty truck owners (which includes bobtails).
Cab & Chassis Crises.
From Andy Johnson (italics are mine):
“There are significant changes coming to the trucking industry that will impact your future bobtail purchases. These changes are just around the corner, and it's crucial to prepare now.
The California Air Resources Board (CARB) Advanced Clean Truck (ACT) is being adopted in states across the country.
This will require truck manufacturers to sell one electric truck before being able to manufacture three diesel engines. In short, the ACT requires manufacturers to have electric trucks sold, paid for and registered before being able to build diesel trucks.
Please see the timeline for when your state will be affected below."
Impact of Advanced Clean Truck (ACT).
- Challenges: The starting price tag of $450,000 for an electric cab and chassis is significantly higher than that of a diesel, making it difficult to find buyers.
This will result in a tight diesel engine market in ACT states.
New Omnibus Emission Regulations.
- Goal: These regulations aim to cut approximately 75% of nitrogen oxide emissions from all truck types.
- Affected States: Massachusetts and Oregon will join California as CARB Omnibus states in 2025.
- Impact: Currently, there are no medium-duty trucks that would fit the above regulations. The new requirements will eliminate certain medium-duty engines such as the Detroit DD8, Cummins ISB/PACCAR PX7, and Cummins L9/PACCAR PX9 in Omnibus states.
While there are compliant 13-liter engines, they are not suitable for medium-duty chassis. Cummins is developing a 6.7-liter gasoline engine, expected in 2026, but there is no definite launch date yet.
The Enormous Cost of Forced Electrification.
Electrification mandates that seek to restrict consumer choice often have unrealistic timelines (at best) and ignore the enormous cost and real-world hardship on working-class people (at worst). The CARB ACT requirements and Omnibus emission regulations are two examples of consumer restrictions that will carry an enormous price tag and cause severe economic hardship for many people.
Ultimately, as consumers, we’ll all pay for it.
Could your customers pay $7.00 per gallon more in new state taxes?
The hits just keep coming.
In Vermont, for example, a taxpayer-funded study recently reported that $7 billion dollars in additional fuel taxes or incentives would be required to get Vermont residents to consume less heating oil and propane from 2026-2030 to achieve greenhouse gas emissions reduction requirements.
If the burden were to fall squarely on the households that use these fuels, it would cost roughly $7.00/gallon in new fuel taxes!
Push-back.
It’s nice to see some push-back, even if it is in another part of the country.
Washington is the latest state to approve a November ballot initiative for state-level protections for energy freedom and consumer choice. If Washington voters choose freedom over restriction, I think that will bring the total to 27 states with similar consumer protection laws.
The Skinny
CARB ACT requirements and Omnibus Emissions Regulations may take effect in many states over the course of the next few years which could result in an artificially tight diesel engine market in those states. If your propane business is located in one of the 19 states listed above and you want a new diesel engine-powered bobtail, you should consider placing your order sooner than later.
If some states start to recognize cleaner fuels like propane and renewable propane over dirtier fuels like gasoline and diesel, you can always change things up and order a Ford F-750 cab and chassis with a 3K barrel. Roush will convert it from gasoline to propane.
And since everything runs better on Ray Energy propane, ask for it by name!
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