Burr Truck Speaks to NYS Lawmakers on the Challenges of EV Truck Mandates

Meeting Goals Without Economic Hardship for Small Businesses

In December 2021, Governor Kathy Hochul revealed the adoption of regulations aimed at transitioning to zero-emission trucks. This mandate, known as the Advanced Clean Trucks Rule, or the "ACT" rule, mandates that dealers of medium and heavy-duty vehicles begin selling an increasing percentage of zero-emission trucks starting in 2025.

Businesses and Politicians Speak on EV Truck Mandates

On April 29, legislators such as Senator Joseph Griffo, and local business executives including Mark Stone of Burr Truck, met with the Environmental Protection Agency and federal officials to discuss the problems posed by the mandate.

The aggressive timeline of these rules has already hurt truck dealers–like Burr Truck. Stone told lawmakers, “We’ve already lost 10 employees, and other dealers are losing employees too. We only have one more year before cash flows become a problem in these small businesses.”

We support New York’s environmental goals, but we need a sensible, phased approach that addresses these real-world challenges. Let’s work together for a cleaner future that’s both achievable and sustainable.

Stone said the state government imposed these mandates while providing negligible help.

“There’s nothing in infrastructure on the throughways, nothing that the state has done to build out infrastructure at all,” said Stone. “We’re not saying no, we just need a pause.”

Mark Stone, Corporate General Manager & Director of Sales at Burr Truck meets with NYS lawmakers in Albany

At Burr Truck, we fully support New York’s ambitious sustainability goals. We are committed to reducing greenhouse gas emissions and transitioning to zero-emission vehicles (ZEVs) as part of our contribution to a cleaner, healthier environment. Our efforts align with the state’s Climate Leadership and Community Protection Act (CLCPA), aiming to achieve significant emissions reductions by 2050.

Challenges for Businesses

Although we are committed to transitioning to ZEVs, we encounter major challenges and limitations. Supply chain problems hinder manufacturers from achieving ZEV production goals. The financial impact on truck dealers is considerable, as the cost of BEVs is much higher than that of diesel trucks. Furthermore, there is a severe shortage of charging infrastructure, particularly in rural and upstate regions, complicating the adoption of ZEVs.

Need for Realistic Timelines

We support extending the 2025 ACT Rule to 2027 in order to provide a more feasible timeline that aligns with the production capabilities of Original Equipment Manufacturers (OEMs) and the necessary growth of supporting infrastructure. The current target of 2025, while ambitious and well-intentioned, may not take into account the complexities and challenges that truck dealers and operators face in the transition to zero-emission vehicles (ZEVs).

The urgency to meet the 2025 deadline could inadvertently create significant economic difficulties for these stakeholders. Truck dealers, who play a crucial role in the distribution and servicing of vehicles, may struggle to adapt to the rapid changes required by such a tight timeline. This could lead to a situation where smaller dealerships, in particular, find it difficult to keep pace with the evolving market demands, potentially resulting in job losses and even business shutdowns. The impact on employment within the sector could be severe, affecting not just the dealers but also their employees, suppliers, and the broader community that relies on these businesses for economic stability.

Moreover, a hastily implemented transition to ZEVs risks overwhelming the existing infrastructure that supports the trucking industry. The necessary charging stations, maintenance facilities, and supply chains for electric vehicle components need adequate time for development and deployment. A gradual approach, extending the timeline to 2027, would allow all parties involved to build the essential infrastructure and enhance supply chain resilience that is critical for the successful adoption of sustainable ZEV technologies.

This additional time would enable stakeholders to invest in training programs for technicians and operators, ensuring that they are equipped with the skills required to service and maintain new electric vehicles. Furthermore, it would provide OEMs with the opportunity to ramp up production capabilities without compromising quality or safety, leading to more reliable vehicles entering the market.

In conclusion, extending the ACT Rule deadline to 2027 is not merely a matter of convenience; it is a necessary step to ensure a smooth transition to zero-emission technologies. This approach prioritizes the economic health of truck dealers and operators while fostering a robust infrastructure that supports the long-term goals of sustainability and environmental responsibility. By allowing for a more measured timeline, we can collectively work towards a future where ZEV adoption is both feasible and beneficial for all stakeholders involved.

ZEV Transition Solutions

We propose practical solutions to facilitate the transition to ZEVs:

1. Adopting a phased strategy for ZEV integration allows for gradual expansion.

2. Boosting investment in infrastructure development, especially in underserved regions, is essential.

3. Moreover, offering incentives to early adopters and simplifying the NYSERDA funding process can help mitigate the high costs associated with ZEVs.   

4. By implementing these measures, we can ensure a smoother transition that benefits both the environment and the economy.

Impact on Dealers

Financial Burdens

The high cost of ZEVs compared to diesel trucks poses a significant economic challenge. For example, a BEV can cost up to $480,000 compared to $150,000 for a diesel truck, which can strain the finances of fleet operators and truck dealers.

Complicated funding application process is a significant concern for businesses relying on incentives.

Application Process

The application process for funding can be lengthy and complex, which is a significant concern for businesses relying on these incentives to offset the higher costs of Zero Emission Vehicles (ZEVs). This complexity often involves multiple steps, including the preparation of detailed documentation, adherence to specific guidelines, and the submission of various forms that may require extensive information about the business's operations, financial status, and the intended use of the funds.

Detailed Steps in the Application Process

Initially, businesses must identify the appropriate funding sources, which may include government grants, subsidies, or private sector incentives aimed at promoting the adoption of ZEVs. Each funding source typically has its own set of eligibility criteria and application requirements, necessitating thorough research and understanding of the specific programs available.

Once a suitable funding opportunity is identified, the business must gather a plethora of supporting documents. This may include financial statements, business plans, and proof of the vehicle's compliance with ZEV standards. The requirement for detailed project proposals can further complicate the process, as businesses are often required to articulate how the funding will be utilized, the expected outcomes, and the broader impact on environmental sustainability.

Time Constraints and Resource Allocation

The time required to complete the application can be a significant burden, particularly for small to medium-sized enterprises that may not have dedicated staff to manage such tasks. The potential for delays in processing applications can lead to uncertainty in budgeting and financial planning, which can hinder a business's ability to make timely decisions regarding the acquisition of ZEVs.

Moreover, the complexity of the application process can lead to increased costs associated with hiring consultants or legal advisors to navigate the intricacies of the funding landscape. This additional financial burden can negate some of the intended benefits of the funding itself, creating a paradox that discourages businesses from pursuing these valuable incentives.

Importance of Streamlining the Process

To enhance the effectiveness of funding programs aimed at promoting ZEV adoption, it is crucial for policymakers to consider streamlining the application process. Simplifying documentation requirements, providing clear guidelines, and offering support services for businesses could significantly reduce the barriers to entry.

In conclusion, while funding opportunities for ZEVs are essential for encouraging businesses to transition to more sustainable transportation options, the lengthy and complex application process poses a substantial challenge. Addressing these concerns is vital for ensuring that businesses can effectively leverage available incentives, ultimately contributing to a broader shift towards cleaner transportation solutions.

Infrastructure Gaps

The lack of sufficient charging infrastructure, especially for medium-duty trucks and heavy-duty trucks, remains a critical barrier to widespread adoption. This is particularly pronounced in rural and Upstate areas of New York, compared to more urbanized regions like New York City.

Why Should We Consider Extending the 2025 ACT Rule Timeline to 2027?

Extending the timeline to 2027 is crucial for several reasons:

Supply Chain Constraints

Current global supply chain issues limit the production capacity of ZEVs. This makes meeting the 2025 targets unfeasible without causing significant market disruption. Once we are no longer under limited production constraints—everyone will benefit!

Economic Impact

The cost disparity between BEVs and traditional diesel trucks is substantial ($480,000 vs $150,000). This financial burden on truck dealers and fleet operators could lead to business closures and job losses. Extending the timeline allows for a more gradual economic transition.

Currently, Burr Truck has the only Level 3 DC Fast Charge station in Broome County.

Development

There is a significant lack of charging infrastructure, particularly in rural and Upstate New York, which poses a considerable challenge to the adoption of zero-emission vehicles (ZEVs). This deficiency in charging stations is not only a minor inconvenience but also a major barrier that affects the confidence of potential electric vehicle (EV) owners. In many rural areas, the distances between towns and the availability of charging points can be daunting for those considering the switch to electric. Unlike urban centers, where charging stations may be more prevalent and accessible, rural regions often lack the necessary infrastructure to support a growing fleet of electric vehicles.

The charging infrastructure in these areas is inadequate for residents transitioning to ZEVs. Rural communities often have longer commutes and limited public transport, making reliable charging access crucial. Without a strong charger network, potential EV owners may hesitate to invest, fearing power shortages during trips or difficulty finding charging stations.

Installing charging stations demands substantial time, investment, and planning. It involves placing units, assessing electrical grid capacity, selecting sites, and engaging the community. Local governments and private companies must collaborate to strategically locate these stations for optimal accessibility. This complex process requires coordination among stakeholders such as utility companies, local businesses, and community organizations.

More time is needed to effectively support widespread ZEV adoption. As demand for electric vehicles rises, charging infrastructure must expand and improve to support faster, more reliable charging. Investment in renewable energy for these stations is essential to reduce carbon emissions and promote sustainability.

To facilitate the transition to zero-emission vehicles in rural and Upstate New York, it is crucial to address the lack of charging infrastructure. This involves developing a comprehensive network of charging stations and supporting electric vehicle growth. These efforts are essential for increasing ZEV adoption and reducing greenhouse gas emissions in the region.

A Volvo truck stands solitary in a vast, uninhabited landscape, with rolling hills and a wide sky as its backdrop.

How Will Extending the Timeline Affect NY's Environmental Goals?

Extending the timeline will not hinder New York’s long-term environmental goals. Instead, it allows for a more sustainable and practical transition:

1. Sustainable Growth: A phased approach ensures that ZEV adoption progresses steadily without causing economic disruption. This method supports long-term sustainability by fostering stable market conditions.

2. Improved Infrastructure: Additional time will enable the development of necessary charging infrastructure, which is crucial for supporting ZEVs and ensuring their efficient operation.

3. Balanced Transition: By allowing more time, we can ensure that both environmental benefits and economic stability are achieved, leading to a more successful and equitable transition to ZEVs.

   
   

What Specific Steps can be Taken to Support Truck Dealers and Fleet Operators During this Transition?

Several practical steps can be taken to support truck dealers and fleet operators:

1. Phased Implementation: Gradually increase ZEV sales targets over time to allow businesses to adapt.
   

2. Increased Funding: Provide additional funding for infrastructure development, particularly in underserved areas. This includes expanding programs like the New YorkTruck Voucher Incentive Program and the Electric Truck and Bus Challenge Prize competition.
   

3. Incentives for Early Adopters: Offer financial incentives to early adopters of ZEVs to offset the higher initial costs. Streamlining the NYSERDA funding process can also make these incentives more accessible.
   

4. Technical Assistance: Provide technical assistance and resources to help dealers and fleet operators transition to ZEVs. This includes training programs and support for maintaining and operating ZEVs.

It is possible! The National Renewable Energy Laboratory (NREL) states that adopting electric commercial vehicles is feasible but needs significant infrastructure and supply chain enhancements. The Environmental Defense Fund (EDF) advocates a balanced approach with aggressive targets and practical steps, supporting phased implementation to achieve environmental goals without harming the economy. The International Council on Clean Transportation (ICCT) suggests financial incentives and infrastructure development as crucial for a successful ZEV transition strategy.