EPA Sets Tier STailpipe and  Evaporative
                    Emission  and Vehicle Fuel Standards
                        The U.S. Environmental Protection Agency (EPA) is finalizing an
                        important rule designed to reduce air pollution from passenger
                    cars and trucks. Starting in 2017, Tier 3 sets new vehicle emissions
                    standards and lowers the sulfur content of gasoline, considering the
                    vehicle and its fuel as an integrated system. The vehicle standards
                    reduce both tailpipe and evaporative emissions from passenger cars,
                    light-duty trucks, medium-duty passenger vehicles,  and some heavy-
                    duty vehicles. The gasoline sulfur standard will make emission control
                    systems more effective for both existing and new vehicles, and will
                    enable more stringent vehicle emissions standards since removing
                    sulfur allows the vehicle's catalyst to work more efficiently. The Tier
                    3 standards are closely coordinated with California's LEV III stan-
                    dards as well as with EPAs and California's programs for greenhouse
                    gas (GHG) emissions from light-duty vehicles. EPA is setting these
                    Tier 3 standards to address public health issues that exist currently
                    and are projected to continue in the future. EPAs action was requested
                    in a May 21, 2010 Presidential memorandum.

                    The Tier 3 program continues the successful transition that began with EPA's Tier 2
                    program, finalized in 2000, in which EPA treated vehicles and fuels as a system to
                    reduce both gasoline sulfur and vehicle emissions. While there were claims at the
                    time that the program would cause fuel prices to increase far in excess of EPA's esti-
                    mates and would result in closures and fuel supply shortages, the Tier 2 program was
                    a success; it resulted in gasoline sulfur reductions of up to 90 percent and enabled the
                    use of new emission control technologies in cars and trucks with no serious nega-
                    tive impacts on the refining industry. EPA's Clean Diesel Program similarly utilized a
                    systems approach to reducing sulfur emissions from diesel fuels and enabling cleaner
                    diesel technologies with the Highway Diesel Rule (finalized in 2001) and the Non-
                    road Diesel Rule (finalized in 2004), again with no serious negative impacts. Now
                    that the U.S. refining industry routinely produces lower sulfur fuel products, new
                    market opportunities for international fuel exports have opened up.
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                 EPA-420-F-14-008
                       March 2014

-------
EPA is finalizing the Tier 3 program largely as proposed. EPA received a large number and wide
range of comments on the proposed rule, and the final Tier 3 program is based both on this
extensive public input and updated analyses of the rule's impacts. EPA sought comment on the
level of the per-gallon sulfur cap (which applies in addition to the annual average), and has
decided to maintain the per-gallon caps at existing levels. EPA is also finalizing an ethanol
content of 10 percent (E10) for emissions test gasoline (as opposed to the proposed 15 percent
ethanol (E15) test fuel).
Tailpipe Emissions Standards
EPA is setting new tailpipe standards for the sum of non-methane organic gases (NMOG) and
nitrogen oxides (NOX), presented as NMOG+NOX, and for particular matter (PM) that apply
to all light-duty vehicles and some heavy-duty vehicles. Compared to current standards, the
NMOG and NOX tailpipe standards for light-duty vehicles represent approximately an 80%
reduction from today's fleet average and a 70% reduction in per-vehicle PM standards. Heavy-
duty tailpipe standards represent about a 60% reduction in both fleet average NMOG+NOX
and per-vehicle PM standards. EPA is also extending the  regulatory useful life period during
which the standards apply from 120,000 miles to 150,000 miles.

The  tailpipe standards include different phase-in schedules  that vary by vehicle class, but gener-
ally phase in between model years 2017 and 2025. In addition to the gradual phase-in schedules,
several other provisions are designed to further ease manufacturers' paths to compliance with
the stringent new standards. Depending on  the standards and the vehicle class, these flexibility
provisions include credits for early compliance and the ability to offset some higher-emitting
vehicles with extra-clean models. EPA is also finalizing more lead time for small businesses
and small volume manufactures as well as a  hardship provision that allows for additional time
to comply if a manufacturer cannot meet requirements after a good faith effort and would face
severe economic hardship without the additional lead time,

NMOG+NOX Standards: The standards for NMOG+NOX are fleet-average standards, mean-
ing that a manufacturer calculates the weighted  average emissions of the vehicles it produces in
each model year and compares that average to the applicable standard for that model year. The
standards differ by vehicle class and test cycle. Key elements include:

   ^  NMOG+NOX Standards for Light-Duty Vehicles and Light-Duty Trucks (vehicles
       below 8,500 pounds (Ibs) Gross Vehicle Weight Rating (GVWR)), and Medium-Duty
       Passenger Vehicles (8,500 to 10,000 Ibs GVWR):
             As measured on the Federal  Test Procedure  (FTP), the standards decline from
              today's fleet average of 160 milligrams per mile (mg/mi) to 30 mg/mi by 2025,
             As measured on the Supplemental Federal Test Procedure (SFTP), the standards
              decline from today's fleet average of about 200 mg/mi to 50 mg/mi by 2025,
       NMOG+NOX Standards for Heavy-Duty Pick-ups and Vans; Class 2b (8,501-10,000 Ibs
       GVWR) and Class 3(10,001-14,OOOGVWR)):

-------
              As measured on the FTP, the fleet average standards decline from today's fleet
              average of 395 mg/mi to 178 mg/mi for Class 2b vehicles and 630 mg/mi to
              247 mg/mi for Class 3 vehicles by 2022,
              Additional standards for emissions measured over a heavy-duty SFTP are being
              set for the first time and vary by vehicle class and power'to-weight ratio.
PM Standards: The PM standards are expressed on a per-vehicle basis, meaning the standards
apply to each vehicle separately (i.e., not as a fleet average). EPA is setting PM standards that
differ by vehicle class and test cycle. Key elements include:

   r"  PM Standards for Light'Duty Vehicles, Light'Duty Trucks, and Medium-Duty Passenger
       Vehicles:
             As measured on the FTP, the per-vehicle standard is 3 mg/mi for all vehicles and
              for all model years, as compared to today's standard of 10 mg/mi,
             As measured on the US06,  a high-speed, fast-acceleration component of the
              SFTP, the standard for all light-duty vehicles is 10 mg/mi through MY 2018 and
              6 mg/mi for 2019 and later model years. These standards are lower than what was
              proposed based on more recent data supporting a numerically lower US06 PM
              standard,

   ^  PM Standards for Heavy-Duty Pick-ups and Vans; Class 2b and 3:
             As measured on the FTP, the per-vehicle PM standards are 8 mg/mi for Class 2b
              vehicles and 10 mg/mi for Class 3 vehicles,
             EPA is also setting PM standards for emissions measured over the SFTP with
              standards levels and duty cycles varying by vehicle class and power-to-weight
              ratio.
Evaporative Emission Standards
EPA is setting more stringent standards designed to eliminate fuel vapor-related evaporative
emissions and improve durability. The evaporative emissions program represents about a 50 per-
cent reduction from current standards and applies to all light-duty and onroad gasoline-powered
heavy-duty vehicles. As with the tailpipe standards, the evaporative emissions standards include
phase-in flexibilities, credit and allowance programs, and more lead time and a hardship provi-
sion for small businesses and small volume manufacturers. EPA is also extending the regulatory
useful life period during which the standards apply from 120,000 miles to 150,000 miles. Key
elements of the program include:

    ^  Evaporative Emissions Standards: The final standards over 2-day and 3-day evaporative
       emission tests vary by vehicle categories and range from 0.300 g/test to 0.500 for light-
       duty vehicles and medium duty passenger vehicles, with 0.600 g/test for onroad gasoline-
       powered heavy-duty vehicles.

-------
       Bleed Test Requirements: EPA is setting a new testing requirement referred to as the
       bleed emission test. The bleed emissions test standard for light-duty and medium-duty
       passenger vehicles is 0.020 g/test without averaging. The standard for onroad gasoline-
       powered heavy-duty vehicles is 0.030 g/test without averaging,

       Leak Test and Emission Standard: EPA is finalizing a new emission standard and test
       procedure  requiring that the cumulative equivalent diameter of any orifices or "leaks"
       not exceed 0.02 inches anywhere in the fuel/evaporative system for light-duty vehicles,
       medium-duty passenger vehicles, and some gasoline-powered heavy-duty vehicles,

       Onboard Diagnostic System (OBD) Requirements: EPA is adopting and incorporating
       by reference the California Air Resources Board's (GARB) current OBD regulations,
       effective for MY 2017, with only minor differences. These requirements cover all vehicles
       except those  in the heavier fraction of the heavy-duty vehicle class.
Fuel Standards
EPA is finalizing gasoline sulfur reductions that are critical to enabling manufacturers to comply
across the fleet with the stringent vehicle standards. The gasoline sulfur standards will also
achieve significant immediate benefits by reducing emissions from existing vehicles. Under the
final Tier 3 program, federal gasoline will be required to meet an annual average standard of 10
parts per million (ppm) of sulfur by January 1, 2017. EPA is also finalizing standards that main-
tain the current 80 ppm refinery gate and 95 ppm downstream cap. The Tier 3 gasoline sulfur
standards are similar to levels already being achieved in California, Europe, Japan, South Korea,
and several other countries.

For the gasoline sulfur standards, EPA is finalizing averaging, banking, and trading (ABT) pro-
gram that allows refiners and importers to spread out their investments through an early credit
program and rely on ongoing nationwide averaging to meet the 10 ppm sulfur standard. New
to the final rule, EPA is including the ability to carry over credits from Tier 2 to Tier 3 in the
ABT program. EPA is also finalizing a three-year delay for small refiners and small volume refin-
eries processing 75,000 barrels of crude oil per day or less, as well as other flexibilities for refiners
such as hardship provisions for extenuating circumstances.
Emissions Test Fuel
EPA is updating the federal emissions test fuel to better match today's in-use gasoline and also to
be forward-looking with respect to future ethanol and sulfur content. The new test fuel specifi-
cations apply to new vehicle certification, assembly line, and in-use testing. EPA is transitioning
to the new test fuel during the first few years that the Tier 3 tailpipe and evaporative standards
are phasing in. Key changes include moving to a test fuel containing 10 percent ethanol by vol-
ume, lowering octane, and lowering the existing sulfur specification to be consistent with Tier 3
requirements. EPA is also setting test fuel specifications for E85 for the first time.

-------
Public Participation
This final rule is based on extensive public input received in response to the Tier 3 proposal,
EPA held two public hearings in Philadelphia and Chicago, and we received more than 200,000
public comments. A broad range of stakeholders provided comments, including state and local
governments, auto manufacturers, emissions control suppliers, refiners, fuel distributors and others
in the petroleum industry, renewable fuels providers, environmental organizations, consumer
groups, labor groups, private citizens, and others. EPA has also had extensive outreach with key
stakeholders throughout the development of this rule.
For More Information
You can access the final rule and related documents on EPA's Office of Transportation and Air
Quality (OTAQ) Web site at:

          www.epa.gov/otaq/tier3 .htm

For more information on this rule, please contact the U.S. Environmental Protection Agency,
Office of Transportation and Air Quality at:

          E-mail: otaq@epa.gov

-------