If you've driven in New Jersey, you've probably encountered the famous "Jersey Left", also known as the jughandle turn. Instead of turning left directly across traffic, you exit onto a ramp on the right side of the road, either before or after the intersection. And from there, you loop around and make your left turn or U-turn.
It feels counterintuitive at first, especially making a U-turn from the right lane, but the design works well and improves safety and traffic flow.
And just like those surprising jughandle U-turns, we've seen some surprising policy U-turns in transportation recently.
The current administration has shifted transportation policies in ways that directly affect large industries like pulp and paper, because the previous focus on "equity" and "climate-focused" infrastructure grants has been replaced by a clear priority on industrial output, economic efficiency, and traditional infrastructure.
Here are the critical policy shifts reshaping transportation for the paper industry:
- Economics First
The Department of Transportation (DOT), under Secretary Sean Duffy, has moved away from decarbonization and net-zero emissions, and is now focusing on essentially spinning the invoice printer.
Specifically and simply put, the federal government is prioritizing measurable outcomes like safety, production, and supply chain reliability, which results in efficiently moving domestic manufactured goods - a clear benefit for the paper industry.
- Aggressive "Buy America" Enforcement
This can affect mills differently depending on projects and where you get your raw materials and supplies from.
Tariffs aim to boost domestic production but can raise costs or disrupt supplies for paper (wood, chemicals, or equipment). While increasing compliance complexity, the policy protects U.S. producers, encourages reshoring, and supports both nearshoring (outsourcing to a geographically nearby country) and domestic sourcing. (1)
- Scaling Back EV and Green Mandates
Federal funding is being diverted from widespread EV charging networks to highway and bridge repairs. Also, the transportation sector is now prioritizing energy independence and an "all-of-the-above" strategy over forced electrification of heavy-duty fleets. For timber and pulp logistics, this means a slower transition to electricity and a continued reliance on traditional freight modes.
Traditional freight is also benefiting from the rollback of greenhouse gas (GHG) rules for heavy-duty trucks, saving an estimated $1.3 trillion in compliance costs. For the pulp and paper industry, this means lower truck and fleet costs, greater equipment flexibility, and reduced pressure on diesel-dependent logistics. (2)
- Streamlining Permitting! (NEPA Reform)
The administration views slow infrastructure permitting as a bottleneck to economic growth. Now the goal is to cut that red tape and slash the years-long review processes previously mandated by the National Environmental Policy Act (NEPA). (Who ever thought a government agency would view red tape as a problem?) (3)
As a result, expect faster approvals for expanding rail spurs, upgrading pulp mill access roads, and expanding warehouse facility permits. The federal government's power to delay projects via environmental litigation is being actively neutralized. (And that's always a beautiful thing.)
- Trucking Reform
The new focus is on deregulation combined with stronger safety enforcement: cutting needless, costly rules while cracking down on unsafe drivers. The American Trucking Associations and Owner-Operator Independent Drivers Association described many of the changes as "commonsense regulatory reform." (4)
For example, the EPA rolled back strict greenhouse gas and emissions rules, making new trucks cheaper by removing expensive green tech mandates and saving billions in repairs and downtime. (!) We all benefit from that downstream one way or another.
The Federal Motor Carrier Safety Administration (FMCSA) is simplifying burdensome rules (paperwork, sensor requirements, and outdated mandates) while enforcing stricter standards on unqualified drivers getting CDLs, English proficiency, and "bad actors." (5)
Current results are mixed: Savings are coming later. Right now, prices are higher due to driver and truck shortages plus rising fuel costs. However, lower new truck costs and reduced paperwork will lead to lower operating costs in the future.
- Rail Reform
In March 2026, the Surface Transportation Board proposed major updates to streamline environmental reviews and permitting for rail projects. This will, again, speed up track upgrades, expansions, and new infrastructure while cutting costs and more red tape.
Union Pacific and Norfolk Southern submitted a revised application on April 30, 2026, to create America's "first true transcontinental railroad." They project $3.5 billion in annual savings for shippers through better service, fewer handoffs, and greater efficiency. If approved (with possible conditions), it would significantly improve long-haul reliability for paper, pulp, lumber, and chemicals. (6)
Rail remains one of the cheaper and more reliable options for bulk and long-distance moves. Policies support making it even more competitive, reliable, and cost-effective - especially if the merger is approved and permitting speeds up.
Your projects are no longer measured by how "green" or "inclusive" they are, but by how efficiently they move American goods and strengthen domestic industry.
Build and invest accordingly.
We'll see you again next month when we cover Safety. |
