CA zero emissions policy adopted by WA stands to have sharp, immediate impacts on supply chain, costs to consumers

OLYMPIA — Aug. 16, 2024 — The Washington State Trucking Associations is calling on Gov. Jay Inslee and the Legislature to reconsider its linkage to California’s Advanced Clean Trucks (ACT), a policy to move medium and heavy-duty trucks toward zero emissions.

In a detailed letter to Inslee, WTA President & CEO Sheri Call outlined an array of economic, operational, infrastructure and competitiveness concerns over the policy, which stands to have a profound impact on the industry, the state’s supply chain and, eventually, consumers in Washington state.

“We feel these issues will place constraints on the industry and reduce supply chain resiliency in Washington state – one of the most trade-driven states in the nation. We don’t have to look back too far to understand the impact of shortages of goods and medical supplies during the pandemic as a result of trucking industry labor and equipment shortages,” said Call. “Imagine the negative impact to affordability in our state and to any environmental gains if trucks are dispatched to Washington from further away. This is a reality we are faced with under the ACT policy.”

Beginning next year, 7 percent of all heavy-duty trucks sold in Washington must be zero emission vehicles (ZEV). However, the letter notes, given that the buying cycle for trucks can be as long as two years, owners are placing orders for model year 2025 and beyond today. This means Washington trucking companies are already experiencing the consequences of ACT mandates right now, prompting WTA members to evaluate their options given cost and infrastructure constraints.

“Artificially manipulating the market to mandate ZEV truck sales will have a profound impact on the industry and lead to unintended consequences. California officials wrote, adopted, and implemented the ACT program for the state of California. But Washington is not California,” Call writes.

The letter goes on to outline concerns about costs, payload, range, refueling, and infrastructure. A zero- emission truck costs about two and half times more and sacrifices about two and half tons of payload compared to a clean diesel truck today.

For now, Washington fleet and truck owners will likely keep older, less efficient trucks longer to avoid the higher costs and uncertainty from purchasing ZEV M/HD trucks, Call writes. Delaying these purchases will also trickle down into the secondary truck market, affecting the drayage fleet the most. Others will go out of business or pick up operations and move into neighboring states that have not adopted California’s ACT mandates.

“However fleet and truck owners respond, these direct and indirect compliance costs will certainly shift to consumers across the entire supply chain,” she writes. “There is no such thing as a free lunch, and ACT will drive up costs on every consumer good or service that relies on M/HD commercial trucks.”

Call adds: “WTA respectfully asks you and the Legislature to reconsider the link to California’s emission standards and adopt the federal standards that are more suitable to Washington’s unique needs. Washington employers should not have to face policies created by another state, with no input from stakeholders or analysis for its impact here.”

In conclusion, Call reminds the governor that all energy options, including hydrogen, must be on the table in order to protect Washington’s economy and way of life.

“WTA is committed to working with stakeholders to find a balanced approach that leads to decarbonization but also protects the backbone of our supply chain and trade-dependent economy.”

Read the full letter to Gov. Inslee here.

About the Washington Trucking Associations

Since 1922, the Washington Trucking Associations (WTA) has served as the unified voice for the trucking industry in Washington. Member supported, WTA is dedicated to advocating sound public policies, providing excellence in education, training, and information, as well as promoting a safe, dependable, and efficient trucking industry in Washington For more information, visit www.watrucking.org.