The new report released by CARB provides analysis of cost estimates for longer warranties required for the emissions reduction equipment used in 2024 model year and later heavy-duty vehicle engines. The report is in response to board direction to staff given when the board approved the regulation in August 2020. CARB staff’s original warranty cost estimates were challenged by the Engine Manufacturers Association, and the board directed staff to form a working group to review their estimates in comparison to industry estimates.
The working group met more than 16 times over nine months. Based on the working group process and documentation in the report, staff concluded no substantial changes to its original estimates are required. As part of the report, CARB staff compared 2022 model year warranty cost estimates made by CARB and manufacturers that reflect the intermediate impact of lengthening warranty periods. The report finds that, on a “per miles covered” basis, the industry data essentially agrees with CARB’s lower estimates for current model year vehicles.