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Manufacturers are incentivized to develop vehicles with improved fuel efficiency and lower emissions, with a particular emphasis on transitioning to electric and oth- er zero-emission technologies. For school buses, these regulations mean that diesel-powered models will need to become significantly more efficient or give way to electric models. The new regulations are expected to drive increased
sales of electric school buses. In order for automakers to offset their CO2 emissions credits, they will need to either improve the efficiency of internal combustion engines and powertrains by 10-20%, or sell more electric vehicles. As emission standards grow increasingly stringent
each year, it will be extremely challenging for manu- facturers to make up credit deficits unless they can sell significantly more electric school buses. Consequently, OEMs will be left with only two viable options: •
Sell more electric school buses • Purchase CO2 credits to offset deficits
EPA Clean Trucks Plan The U.S. Environmental Protection Agency (EPA)
finalized this Clean Trucks plan that requires heavy-du- ty vehicles and engines to reduce their nitrogen oxide (NOx) emissions for model year 2027 and later. The rule is part of the EPA’s Clean Truck Plan and is more than 80% stronger than current standards. The new rule requires that engine NOx emissions be capped at 0.035 grams per horsepower-hour during normal operation, 0.5 grams at low load, and 10 grams at idle. This is an 82.5% reduction from the current standard of 2 milli- grams. The rule also includes the ability to generate credits for NOx that can be used to certify engines above the direct standard from 2027 through 2034, GHG Phase 3 also has increased warranty and useful life of emis- sions components for vehicles and engines.
Due to these new regulations: • Cost of Internal Combustion engine increases • Cost of warranty coverage increases
CARB NOx Omnibus Regulations The California Air Resources Board (CARB) has in-
troduced a stricter NOx emission standard on engines for model years 2024-2026. This standard applies to engines installed in school buses sold in California and other states that adopt CARB regulations. OEMs must meet this more stringent standard for three years before transitioning to the federal Environmental Protection Agency’s (EPA) Clean Trucks Plan.
Due to this requirement: • There will be specific allotment of diesel engines by engine suppliers for every vehicle manufacturer. • This allotment will be state specific.
• The engines will have an emissions label that reflect the
state to which that particular engine was allocated to. This will impose limitations during vehicle second life prevent- ing the vehicle from being registered in another state. The future of school buses being electric is no longer a distant goal; it is an imminent reality driven by robust government regulations and a growing recognition of the environmental and health benefits of zero-emission vehicles. As states such as California lead the way with pioneering regulations and the federal government rein- forces these efforts with nationwide standards, the school bus sector continues to experience a paradigm shift. Even as the school bus industry shifts towards electric
vehicles, there’s still a significant journey ahead. Gaso- line, propane, and diesel-powered vehicles continue to play a vital role in our transportation infrastructure and our journey towards electrification. Blue Bird under- stands this dynamic and is committed to supporting your business throughout this transition. We’re dedicat- ed to ensuring that you have access to the products and services you need, regardless of the evolving landscape. The path ahead may be challenging, but the desti-
nation promises a cleaner, healthier future for this and coming generations. ●
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