EPA gives trucking OEMs whiplash with emissions rule rollback plan

On Wednesday, Environmental Protection Agency Administrator Lee Zeldin announced that the EPA is reviewing the emissions rulemaking put in place under the Biden-Harris administration. The important part for trucking comes from targeting the Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3, or just Phase 3, rules, which began with model year 2027 trucks and extended through 2032.

Opponents to the rulemaking argued that the added emissions reduction requirements for nitrogen oxide would add tens of thousands of dollars to the cost of a new Class 8 tractor. Additionally, at the recent 2025 TMC annual meeting, the Commercial Carrier Journal reported, “Mike Tunnell, senior director of environmental affairs and research at American Trucking Associations, noted a modern diesel truck has seen a 99% reduction in NOx since 1973 and 99% in PM emissions since 1987.”

While the EPA is looking to terminate emissions rulemaking, the larger fight may be with the California Air Resources Board’s rulemaking. While CARB withdrew its Advanced Clean Fleets rule during the waning days of the Biden administration, it still has the Advanced Clean Trucks rule in place. CARB also has seen other states adopt its policies. CCJ adds, “Class 7 & 8 truck-tractors sold in model year 2024 will have to be 5% zero-emission-based rising to 40% by 2032. Five other states have signed on to the same ACT plan — Massachusetts, New Jersey, New York, Oregon and Washington — and as many as 10 more are in the process of joining first adopters.”

Adding an extra wrench to the regulatory landscape, a congressional watchdog agency told Congress that it can’t review the already approved federal waivers that were granted to California for its stricter emissions rules. Land Line reports that the Government Accountability Office found the EPA waivers for California are not subject to the Congressional Review Act. The plan was to submit the waivers to Congress and the GAO, giving Congress 60 days to get a simple majority vote for a resolution of disapproval, which would then strike down the rule.

Land Line adds, “Despite GAO’s findings, Republicans may move forward with a Congressional Review Act resolution anyway.”

For trucking OEMs, all this confusion may eventually extend to fleets. Should the OEM still make a CARB-compliant truck even if there is no longer a federal regulatory framework for said emissions, or would it make more sense to have different models of trucks? At the TMC event Alissa Recker, product regulatory affairs engineer at Daimler Truck North America, said it is the “most crowded and most uncertain regulatory landscape that we as OEMs have ever worked with.”

Trucking insurance gets AI boost with Nirvana Insurance’s $80M Series C

AI-driven commercial trucking insurer Nirvana Insurance announced on Monday an $80 million Series C funding round. This latest round values the San Francisco-based company at nearly $850 million. The raise was led by General Catalyst, with continued support from existing investors Lightspeed Venture Partners and Valor Equity Partners.

One of the key differentiators of Nirvana’s platform is its ability to provide more granular and responsive risk assessments. In an interview with FreightWaves, Goel said, “Traditional [insurance] carriers unfortunately haven’t changed their pricing models in decades. They use only a subset of data. And the unfortunate reality is, as a result, customers often end up having to pay for others even if they’re doing all the right things.”

The company’s use of AI extends beyond risk assessment. Nirvana is also leveraging technology to provide value-added services to clients. For instance, the company’s AI automates the claims intake and adjustment process. Goel said, “We can often adjust claims 30% to 40% faster than anyone else out there and get them back on the road. We even send them weekly summaries of their claims summarized by AI so they know exactly what’s happening.
Read the full article here.

SONAR spotlight: A big bounce for flatbed tender rejection rates

Summary: The past week saw a massive jump in flatbed outbound tender rejection rates, with FOTRI up 1,210 basis points from 19.02% on March 3 to 31.12%. The same period the previous year saw a similar jump, with FOTRI reaching 20.12%, but that is 1,100 basis points lower than the current level. With the flatbed segment being a smaller market, the higher volatility relative to lower volumes was one reason behind the rapid rise.

While the sudden jump is unprecedented in the dataset, the spot market’s reaction was lower spot rates. All-in flatbed spot rates fell 5 cents per mile w/w from $2.71 to $2.66. Additionally, the jump may be short-lived when viewing flatbed spot rates over the past three years. The past two years saw flatbed spot rates experience a springtime uptick beginning the third week of March and increasing through April before plateauing in June and July.

For flatbed carriers, homebuilding, industrial activity from manufacturing and infrastructure building will be areas to watch. Tariff-related volatility may have an outsize impact on the flatbed space, with tariffs placed on aluminum, steel and lumber potentially impacting volumes.

The Routing Guide: Links from around the web

Former FHWA chief counsel picked as acting FMCSA chief (Trucking Dive)

Deutsche Bank eyes industrial rebound, endorses these transportation stocks (FreightWaves)

Carrier lease-purchases: Let’s not just throw the baby out with the bathwater (Overdrive)

ArcBest takes on TL freight to fill empty capacity (FreightWaves)

KAL Freight on its last legs: Will drivers be stranded if it closes quickly? (FreightWaves)
Trucking company, WSTA among petitioners to overturn EPA waiver (Overdrive)

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