&EPA
                  United States
                  Environmental Protection
                  Agency
                     Air and Radiation
                                        EPA420-F-99-010
                                        May 1999
                  Office of Mobile Sources
Regulatory
Announcement
                  Proposed "Tier 2" Emission
                  Standards for Vehicles and Gasoline
                  Sulfur Standards for Refineries
                  The U.S. Environmental Protection Agency (EPA) is proposing a major
                  program to significantly reduce emissions from cars and light trucks,
                  including sport utility vehicles (SUVs), minivans, and pickup trucks. Under
                  this proposal, automakers would sell cleaner cars, and refineries would
                  make cleaner gasoline—with a lower sulfur content—to fuel those cars
                  and light trucks nationwide. This comprehensive program will reduce the
                  harmful health and environmental effects of ozone and particulate matter.
                  Historical Background

                  The Clean Air Act set
                  previous tailpipe emission
                  standards (known as "Tier 1
                  standards") for cars and
                  light trucks, beginning with
                  the 1994 model year. The
                  Act required EPA to study
                  whether further emission
                  reductions (in the form of
                  "Tier 2 standards") from
                  these vehicles are necessary. These standards could not take effect before
                  the 2004 model year. Under the Tier 1 standards, heavier vehicles,
                  including SUVs, minivans and pickup trucks, pollute three to five times
                  more than cars.
                                                        > Printed on Recycled Paper

-------
               EPA submitted the Tier 2 Report to Congress in July 1998. The Agency
               concluded that more stringent vehicle standards are needed to meet the
               ozone and particulate matter air quality standards, and that technology
               would be available to meet such standards cost-effectively.
               Highlights of Proposed Rule

               Under this proposal, sport utility vehicles, minivans, and pickup trucks
               will, for the first time, meet the same protective standards as passenger
               cars. This is a comprehensive initiative that treats vehicles and fuels as a
               system. Since sulfur degrades a vehicle's emission control system, low-
               sulfur gasoline is needed to enable the use of emission control technolo-
               gies. EPA is issuing this proposal now to allow adequate lead time for car
               manufacturers and oil refiners to begin achieving the new standards for
               the 2004 vehicle model year.

Vehicles      Under the proposed standards, beginning in 2004, manufacturers would
               start producing passenger cars that are 77 percent cleaner than those on
               the road today. Light-duty trucks, such as SUVs, which now are subject
               to standards that are less protective than those for cars, would be as much
               as 95 percent cleaner under the new standards.

               For the first time, through a phase-in, the same exhaust emission stan-
               dards would apply to cars, sport utility vehicles, minivans, and pickup
               trucks. These larger vehicles make up nearly half of all passenger ve-
               hicles sold, and typically have higher emissions than cars.  The same
               emission standards would apply to all vehicles, regardless of the type of
               fuel they use. That is, vehicles fueled by gasoline, diesel, or alternative
               fuels (such as methanol or natural gas) all must meet the same standards.

-------
               The program also includes more stringent particulate matter (PM) stan-
               dards, primarily affecting diesel-fueled vehicles, as well as more strin-
               gent evaporative emission standards, reducing emissions of volatile
               organic compounds, a key ingredient in ozone. This program builds on
               the recent technology improvements resulting from the successful Na-
               tional Low Emission Vehicle (NLEV) program, and improves perfor-
               mance of these vehicles through low sulfur gasoline.

               Proposed Vehicle Emission Standards
               •   The proposed tailpipe standards would be set at an average standard
                  of 0.07 grams per mile (gpm) for oxides of nitrogen (NOx) for all
                  classes of passenger vehicles, including light-duty trucks, such as the
                  largest SUVs. Vehicles weighing less than 6000 pounds would be
                  phased-in to this standard between 2004 and 2007.

               •   For the heaviest light-duty trucks, the proposal provides a three-step
                  approach to reducing emissions. In 2004, we would implement the
                  most stringent standards to date not to exceed 0.6 gpm—more than a
                  60 percent reduction from current standards. To ensure further
                  progress, these vehicles would be required to achieve an interim
                  standard of 0.2 gpm to be phased-in between 2004-2007.  In the final
                  step, 50 percent of these vehicles would meet the 0.07 standard in
                  2008, and the remaining 50 percent will comply in 2009.
Gasoline      Sulfur in gasoline reduces the effectiveness of a vehicle's emission
               control system. Therefore, low-sulfur gasoline is needed to effectively
               reduce pollution.
               Proposed Sulfur Levels in Gasoline
                  The nation's refiners would meet an average
                  sulfur level of 30 parts per million (ppm) by
                  2004, down from the current average of
                  more than 300 ppm. The maximum  amount
                  of sulfur in gasoline, for purposes of averag-
                  ing, would be capped at 80 ppm, after a
                  three-year phase-in.

                  Small refiners would have an additional four
                  years to comply, with the opportunity  of an
                  extension for those that can demonstrate a
                  severe economic hardship.

-------
         and

Without significant new controls on motor vehicle emissions, millions of
Americans will continue to breath unhealthy air. The Tier 2 emission
standards and lower-sulfur gasoline would help all Americans breathe
cleaner air. The emission reductions from this program would provide
much-needed assistance to states facing ozone and PM air pollution
problems. When fully implemented in 2030, the proposed tailpipe stan-
dards would significantly reduce NOx emissions from vehicles by about
74 percent. The proposed standards also would reduce emissions of
particulate matter, or soot, from vehicles by about 84 percent.

Ozone causes a range of health problems related to breathing, including
chest pain, coughing, and shortness of breath. PM can reach the deepest
part of the lungs and cause increased emergency room visits, increased
respiratory symptoms and disease, and even premature death. Exposure
to both ozone and PM poses the greatest risk to children and the elderly.
In addition, ozone, NOx, and PM adversely affect the environment in
various ways, including crop damage, acid rain, and reduced visibility.
             for

EPA designed its proposal in close consultation with the auto and oil
industries, emissions control manufacturers, the states, and public health,
consumer and environmental groups. As a result, EPA has included
several measures to ensure maximum flexibility and cost-effectiveness
for these industries. These flexibilities include:
    1)  allowing averaging to meet both the car emission and gasoline
       sulfur standards;
   2)  allowing extra time for larger SUVs and smaller refiners to meet
       their respective standards; and
   3)  allowing for a market-based credit trading-and-banking system
       for both industries to reward those who lead the way in reducing
       pollution.
        Of

The significant environmental benefits of this program would come at an
average cost increase of less than $100 per car and less than $200 per
light-truck. Consumers would pay less than 2 cents per gallon more for
gasoline, or about $100 more over the life of an average vehicle.

-------
Public
Hearings
Written
Comments
Telephone
Comments
E-mail
Comments
We welcome public comment on this proposed program from all inter-
ested parties. The proposed rule and related documents are available
electronically via EPA's Tier 2 Internet site at:

http ://www. epa.gov/oms/tr2home .htm

We will hold four public hearings on this proposal:
   (1) June 9 and 10 in Philadelphia, Pennsylvania
   (2) June 11 in Atlanta, Georgia
   (3) June 15 in Denver, Colorado
   (4) June 17 in Cleveland, Ohio
Additional information about the hearings will be printed in the Federal
Register and is available on the Tier 2 Internet home page.
You may submit written comments to EPA up to 45 days
after the last public hearing. For instructions on submitting
written comments, please see the Federal Register notice. It
is available from several sources including the EPA Air and
Radiation Docket at (202) 260-7548; please refer to Docket
No.A-97-10.
A toll-free telephone line to submit public comment is available at 1-888-
TELL-EPA (1-888-835-5372). The telephone system will receive com-
ments 24 hours a day, seven days a week. Callers should listen to the
instructions and leave a message (up to two minutes long) that will be
recorded, transcribed and included in the official docket.

EPA has set up an e-mail address to accept comments on the proposal:
   tier2.comments@epa.gov
E-mail comments can also be submitted from the Tier 2 Internet home
page. Comments  received by telephone and e-mail will have the same
legal standing as written comments and testimony at public hearings.
              For
              Additional documents on the proposed rule are available electronically at
              the Internet site listed above, or by contacting:

                  Tier 2 Team
                  U.S. Environmental Protection Agency
                  Office of Mobile Sources
                  2000 Traverwood Dr.
                  Ann Arbor, MI 48105
                  (734)214-4349

-------