First Read North American Trucks: EPA announces proposed changes to 2027 truck emissions regulations

Research evidence excerpt

First Read North American Trucks: EPA announces proposed changes to 2027 truck emissions regulations

Global Research

9 July 2026ab

First Read

EquitiesNorth American Trucks

EPA announces proposed changes to 2027 truck Americas

emissions regulations Land Transportation Equipment

Steven Fisher, CFA

Analyst

steven.fisher@ubs.com

Scaling back warranty and adding non-compliance penalties were expected +1-212-713 8634

The EPA has announced long-awaited proposed changes to its 2027 emissions Avinatan Jaroslawicz

regulations for trucks. There are four primary changes that were unveiled: Analyst

avinatan.jaroslawicz@ubs.com

1. Scaled back the extended warranty provision +1-212-713 1405

2. Proposed nonconformance penalties (NCPs) Hemal Bhundia, CFA

3. Elimination of deratements and vehicle speed restriction for engines hemal.bhundia@ubs.com

4. Pushout of the start of longer useful life requirements +44-20-7901 6515

Judah Aronovitz

The EPA was expected to remove the extended warranty requirements while keeping the Associate Analyst

NOx reductions, and to introduce nonconformance penalties to afford OEMs more time judah.aronovitz@ubs.com

to fully develop products (vs. leaving nonconformance undefined and at risk). The exact +1-212-713-4881

implications for each will depend on which approach each OEM considers best given Lauren Sullivan

their particular position. Associate Analyst

lauren.sullivan@ubs.com

We think this is likely a modest positive for truck stocks +1-212-713 8230

We think this is likely a modest positive for truck stocks, mainly due to the greater

certainty, but there are still a number of open questions. Potential implications could

include:

The introduction of nonconformance penalties for noncompliant engines could