Here are the headlines from this week in trucking as of July 9

EPA is weakening NOx rule, removing DEF derates

The U.S. Environmental Protection Agency finally unveiled its proposed rulemaking to reduce the regulatory burden of the NOx rule for Model Year 2027 engine manufacturers. In that same rulemaking, EPA proposed removing DEF derates from diesel engines.

The Biden-era heavy-duty NOx standards were estimated to increase the cost of a Model Year 2027 diesel power unit by about $10,000. EPA’s latest proposed rulemaking would remove emissions warranty and useful life requirements, hopefully easing the cost increase expected for next year’s vehicles.

The rulemaking also proposes to annihilate DEF derates from diesel engines. Instead, when the aftertreatment system encounters a fault, it would only display an audible or visual message. EPA is also considering adding guidance to allow current engines to remove their derates similarly. The rulemaking process could be complete before the end of the year.

Rhode Island is preparing for truck-only tolls

Rhode Island is working to relaunch its truck tolls in 2027. The state recently awarded a contract for a new billing system to facilitate the truck tolls. The program could be operational by the first quarter of next year.

Rhode Island’s truck toll system went live in 2018 but lost a lawsuit from the American Trucking Associations and had to shut down in 2022. An Appeals Court in 2024 ruled that the state could resume its tolls, and Rhode Island has been working to update its tolling system for relaunch.

USMCA is in an awkward position

A painful blow to cross-border freight, the free trade agreement between the U.S., Mexico, and Canada was not renewed for its final 10 years.

The United States-Mexico-Canada Agreement (USMCA) is the latest iteration of the North American Free Trade Agreement. It went into effect in 2020 and is designed to last 16 years. One of the USMCA’s stipulations is that the countries would convene in 2026 to renew the agreement for its final 10 years. However, the United States did not agree to renew the USMCA.

The trade agreement is still in effect, but because the USMCA was not renewed, it instead enters an annual review cycle and, likely, more intense negotiations.

The non-renewal makes long-term cross-border shipping appear less reliable and is likely a harbinger for more chaotic USMCA headlines in the near future. Any disruptions to USMCA will have repercussions for shippers and manufacturers nationwide.

If the USMCA negotiations are anything like 2025’s tariff negotiations, it will be bad news for U.S. freight demand.

DOT announced $62 million in truck parking grants

The Department of Transportation announced $62 million in truck parking funding as part of USDOT’s Better Utilizing Investments to Leverage Development (BUILD) grant program. The grant program’s latest round of funding supports truck parking projects in Kentucky, Wyoming, Louisiana, Mississippi, and Illinois.

In fuel this week, diesel fell another 9 cents

The national average on-highway diesel price fell to $4.58, according to the Energy Information Administration, or to $4.81, according to the latest AAA data. Crude oil futures spiked this week after markets realized that the Iran War continues.