WASHINGTON – The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) jointly finalized standards for medium- and heavy-duty vehicles that will improve fuel efficiency and cut carbon pollution, while bolstering energy security and spurring manufacturing innovation. The final phase two standards were called for by President Obama’s Climate Action Plan, and respond to the President’s directive in early 2014 to develop new standards that run into the next decade.
The final phase two program promotes a new generation of cleaner, more fuel-efficient trucks by encouraging the wider application of currently available technologies and the development of new and advanced cost-effective technologies through model year 2027. The final standards are expected to lower CO2 emissions by approximately 1.1 billion metric tons, save vehicle owners fuel costs of about $170 billion, and reduce oil consumption by up to two billion barrels over the lifetime of the vehicles sold under the program. Overall, the program will provide $230 billion in net benefits to society, including benefits to our climate and the public health of Americans. These benefits outweigh costs by about an 8-to-1 ratio.
The final standards are cost effective for consumers and businesses, delivering favorable payback periods for truck owners. The buyer of a new long-haul truck in 2027 would recoup the investment in fuel-efficient technology in less than two years through fuel savings.
Heavy-duty trucks are the second largest segment and collectively make up the biggest increase in the U.S. transportation sector in terms of emissions and energy use. These vehicles currently account for about 20 percent of GHG emissions and oil use in the U.S. transportation sector. Globally, GHG emissions from heavy-duty vehicles are growing rapidly and are expected to surpass emissions from passenger vehicles by 2030. Through the Paris climate agreement and discussions with other countries, the United States is working with other major economies to encourage progress on fuel economy standards, and reduce greenhouse gas emissions that will improve global energy and climate security by reducing our reliance on oil.
The agencies are also finalizing fuel-efficiency and GHG standards for trailers for the first time. The EPA trailer standards, which exclude certain categories such as mobile homes, will begin to take effect in model year 2018 for certain trailers, while NHTSA’s standards will take effect as of 2021, with credits available for voluntary participation before then. Cost effective technologies for trailers – including aerodynamic devices, light weight construction and self-inflating tires – can significantly reduce total fuel consumption by tractor-trailers, while paying back the owners in less than two years due to the fuel saved.
Recognizing that many trailer manufacturers are small businesses, the program includes provisions that reduce burden, such as a one-year delay in initial standards for small businesses and simplified certification requirements.