A message from NAFA’s Legislative & Advocacy Arm: Fleet Vehicles & the Path to Emissions Compliance
The US and other nations are working to reduce greenhouse gas emissions associated with transportation. Fleets, which operate everything from passenger vehicles to big rigs, are active and willing partners. Fleet vehicles make up 20-25% of all U.S. vehicles and play a critical role in logistics, delivery and government operations. Fleets include first responders, school transport, trash pickup, road and utility maintenance, grocery and retail products deliveries to stores, businesses and homes and the movement of agricultural and manufacturing raw materials and products. Fleets have to function for the US to function.
The initial enthusiasm for electric vehicles (EVs) had auto companies making pledges to sell only EVs by 2035. It was in this environment that the US government increased the stringency of fuel efficiency and tailpipe greenhouse gas rules while California’s policies required increased use of Zero Emissions Vehicles (ZEVs). Other states followed suit.
Fast forward to the close of 2024. That early enthusiasm is being tempered by market realities. Consumers did not flock to EVs, and vehicle producers have scaled back their plans, often emphasizing hybrids and plug in hybrids over EVs. The development of EVs for medium and heavy-duty vehicle applications has lagged demand. EV costs have not come down as expected and charging infrastructure isn’t fulfilling needs. The pace of utility infrastructure and power generation to allow for widespread EV charging is sluggish, and EV charging is competing with data centers and a manufacturing boom for power.
Vehicle manufacturers are scaling back on their EV goals:
Limited consumer interest in EVs has led auto manufacturers to shift their production goals, including more emphasis on plug-in hybrids and alternative fuels. It is clear that the ZEV transition will take more time due to high costs, slow consumer adoption and lagging charging infrastructure.
The Need for Pragmatic Policy on Vehicle Emissions:
Current EV rules are increasingly in tension with the state of technology and the market. Policy makers and stakeholders must collaborate to ensure emissions reductions regulations reflect these conditions. We won’t meet aggressive EV regulatory standards without ensuring that fleets can purchase and power affordable low emissions vehicles with a variety of drivetrain options while continuing to perform their critical services. We need to use all of the policy and technology options available to reduce emissions while ensuring fleets can operate.
Ambitious EV targets are laudable, but impossible targets are not.
NAFA stands ready to work with policy makers and stakeholders to continue our shared journey to lower transportation emissions while ensuring that regulations are workable and affordable and that fleets can continue to serve every American every day.
Great recognition for advancing sustainability and EV advocacy—well deserved!