United States Air and Radiation EPA420-F-99-016
Environmental Protection May 1999
Agency
Office of Mobile Sources
Regulatory
Announcement
Flexibility in Meeting Tier 2 Standards
Over the last several months, the U.S. Environmental Protection Agency
(EPA) has worked closely with the automobile and fuel industries in the
development of the proposed tailpipe emission and sulfur standards. As
a result, the proposed new standards can be achieved with maximum
flexibility and cost-effectiveness. When implemented, this unprece-
dented flexibility in meeting the standards will ensure that Americans
can have cleaner air as well as the vehicle choices they desire.
Flexibilities Averaging
for Fuels The nation's refiners and importers of gasoline would have the flexibility
to manufacture gasoline within a range of sulfur levels as long as their
annual average sulfur levels are 30 parts per million (ppm). Also, the
maximum amount of sulfur in gasoline, for purposes of averaging, would
be capped at 80 ppm.
Special consideration for small refiners
Small refiners (defined in the proposal as those who employ no more
than 1,500 employees) would have until 2008 to comply with the pro-
posed sulfur standards. If necessary, small refiners that demonstrate a
severe economic hardship could apply for an additional extension of up
to two years.
Credits—Banking and Trading
To lower cost and reward industry leaders, any refiner/importer of gaso-
line would be allowed to generate, bank, and trade sulfur credits that they
> Printed on Recycled Paper
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could either use in a later year or sell to another refiner. Banking and
early reductions provide an incentive for technological innovation and
early implementation of new refining technology.
This provides flexibility for refiners because they could either use credits
generated at one refinery to delay having to desulfurize gasoline from
another refinery or sell credits to another.
* Prior to 2004, refiners could generate credits for fuel containing less
than 150 ppm sulfur. These credits could be used between 2004 and
2006.
• Before or after 2004, refiners that go beyond the standard and produce
gasoline containing less than 30 ppm sulfur could also generate
credits.
Flexibility
for Automakers would have the flexibility to manufacture a range of vehicles
Vehicles emitting 0.00 grams per mile (gpm) to 0.2 gpm as long as the average
amount of oxides of nitrogen (NOx) emitted per mile across the
manufacturer's fleet remains at 0.07 gpm.
Most vehicles would need to certify at Tier 2 levels by 2007, leaving the
largest vehicles with an additional two years to meet the 0.07 gpm stan-
dard.
for SUVs, Minivans, Pick-Up
Trucks Ibs)
This phase-in period for the new standard would begin with model year
2004 when 25 percent of new vehicles in a manufacturer's fleet would
have to average 0.07 gpm (the remaining 75 percent would have to meet
an average of 0.3 gpm). Correspondingly, 50 percent of the vehicles in a
manufacturer's fleet would comply with the 0.07 gpm average in 2005,
75 percent in 2006 and 100 percent in 2007. The 0.07 standard is a 77-86
percent reduction from the previous NOx standard for the vehicles in this
weight category.
for Larger SUVs, Vans, Pick-Up Trucks
6000 and 8500 Ibs)
Beginning in 2004, larger vehicles would not be able to emit more than
0.6 gpm NOx at any time. Also, in 2004, 25 percent of these vehicles in a
manufacturer's fleet would have to meet a 0.2 gpm average, 50 percent in
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2005, 75 percent in 2006, and 100 percent in 2007. The 0.2 standard is a
80-87 percent reduction from the previous standard for these vehicles.
In 2008, 50 percent of all large vehicles in a manufacturer's fleet would
have to meet the 0.07 gpm average, and the remaining 50 percent would
have to comply in 2009. The 0.07 standard is a 65 percent reduction from
the 0.2 standard and a 92-95 percent reduction from the previous NOx
standard for these vehicles.
— and Trading
To lower cost and reward industry leaders, manufacturers could obtain
additional credits for later use as early as 2001 for vehicles produced at
or below the 0.07 gpm NOx standard. Also, automakers whose fleet
average is below 0.07 gpm could generate credits that they could either
use in a later model year or sell to another manufacturer.
For More Additional documents on the Tier 2 proposed rule are available electroni-
Informat!Oil cally from the EPA Internet server at:
http ://www. epa.gov/oms/tr2home .htm
Document information is also available by writing to:
Tier 2 Team
U.S. Environmental Protection Agency
Office of Mobile Sources
2000 Traverwood Drive
Ann Arbor, MI 48105
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