Rush Warns EPA’s 2027 Rule May Face a Long Delay

Waiting on EPA ’27 rule, Rush says it might not be soon

The trucking industry is still waiting for the Environmental Protection Agency to finalize proposed changes to its heavy-duty nitrogen oxide emissions rules, and Rush Enterprises CEO William “Rusty” Rush told analysts that the decision may not arrive in November as some had expected.

“I’m hearing we’re not going to get it in November,” Rush said during the company’s earnings call. He was referring to the final EPA action following the agency’s July notice of proposed rulemaking, which outlined possible amendments to the regulations commonly known as EPA ’27.

Rush said changes submitted to the EPA could delay the final decision. He did not provide details, but said manufacturers and truck buyers might instead be asked to work from a draft of the final rule while the agency completes its review.

“We’ll get the final decree out in January or February, but it’s got to go on the first of January,” Rush said. “So it’s kind of up in the air exactly what is really going to stay the same.”

That timing is a concern for truck manufacturers, dealers, fleets and drivers because the underlying 2027 emissions standard is scheduled to take effect Jan. 1, 2027. The rule calls for heavy-duty diesel engines to reduce nitrogen oxide emissions to 0.035 grams per brake horsepower-hour, or 35 milligrams, compared with the current 200-milligram standard.

The emissions limit itself has not been the primary focus of the proposed amendments. Much of the industry debate has centered on how manufacturers will introduce engines capable of meeting the standard, how long those engines must remain compliant, and how warranty requirements will affect equipment costs.

Manufacturers seek flexibility during the transition

The provision receiving the strongest support from engine manufacturers and trucking groups is a proposed nonconformance penalty, or NCP, program. Under the proposal, manufacturers could pay a per-engine penalty to sell engines that do not initially meet the new standard. The provision would be temporary and would phase out over time.

Rush said the NCP option would give manufacturers more time to test the new technology under real-world conditions before every engine entering the market must meet the full standard.

“Most folks want to run this stuff for over a year before they roll it into their fleets, because we’ve seen through history that new technology does not always run right out of the gate,” Rush said.

He cited the rollout of diesel exhaust fluid systems in 2010 as an example of the problems that can arise when new emissions technology enters widespread service. According to Rush, clogged particulate filters became a significant issue for fleets at that time.

PACCAR told the EPA that it “strongly supports” NCPs for medium- and heavy-heavy-duty engines. The company said the penalties would help manufacturers launch products that have been fully validated rather than rushing engines into production before testing is complete.

Cummins also urged the EPA to act quickly on the proposed amendments. In comments submitted in late August, the engine manufacturer said final decisions on NCPs, emissions warranties and useful-life requirements were needed so manufacturers could certify 2027 engines and introduce them by Jan. 1, 2027.

Warranty and useful-life provisions remain important

The proposed amendments would also affect how long engines must meet emissions standards for certification purposes and how long manufacturers must provide emissions-related warranty coverage.

Under the proposal described by Rush Truck Centers, tighter useful-life requirements would not take effect until 2030, providing manufacturers with a three-year transition period. The proposed warranty language would retain current requirements rather than impose the longer warranties included in the original rule.

Those changes could have a direct effect on truck prices and operating costs. Longer warranty obligations generally increase manufacturers’ financial exposure, while more complex emissions systems can affect parts, diagnostic work and repair procedures once the trucks reach service.

The proposal also addresses diesel exhaust fluid systems. Contrary to some interpretations, the changes would not eliminate the requirement to use DEF. Instead, the proposed revisions would remove the vehicle derate associated with low DEF levels and replace it with audio alerts.

EPA says it is reviewing comments

An EPA spokesman told FreightWaves that the agency understands the need for a timely decision and regulatory certainty.

“The agency is carefully reviewing the comments received and is working to finalize the rule as expeditiously as possible,” the spokesman said.

The American Trucking Associations has also backed NCPs, describing them as a transition tool that would preserve the emissions-reduction target while giving manufacturers time to test engines in real-world conditions.

For fleets and professional drivers, the timing matters because the final language will help determine which engines are available after Jan. 1, 2027, and under what conditions. If manufacturers move to full compliance on different schedules, truck buyers could see different engine options, pricing and operating requirements depending on the manufacturer.

Rush said that possibility would be unusual. “I’ve never seen an EPA law or decree where it wasn’t the same for everybody on one particular date,” he told analysts. “Some will come in on January 1. Some may not do it until the following year.”

Until the EPA completes its review, manufacturers and fleets remain caught between a firm implementation date and unresolved rules governing the transition. The emissions target is clear, but the details around penalties, warranties, useful life and engine availability are still being worked out.