Cutting Carbon Pollution,  Improving
Fuel Efficiency, Saving Money, and
Supporting  Innovation forTrucks
    The U.S. Environmental Protection Agency (EPA) and the
    Department of Transportation's National Highway Traffic Safety
Administration (NHTSA) are jointly proposing a national program
that would establish the next phase of greenhouse gas (GHG)
emissions and fuel efficiency standards for medium' and heavy-duty
vehicles. This "Phase 2 program" would significantly reduce carbon
emissions and improve the fuel efficiency of heavy-duty vehicles,
helping to address the challenges of global climate change and energy
security.

Building on the first medium- and heavy-duty vehicle GHG emission and fuel
efficiency standards (Phase 1), Phase 2 would further reduce fuel consumption and
carbon pollution through performance-based standards based on robust technical
data and extensive stakeholder outreach. This new phase of the national program
would benefit businesses and consumers, saving the industry billions of dollars' worth
of fuel, reducing the costs for transporting goods, while reducing GHG emissions by
1 billion metric tons. The Phase 2 standards would spur innovation, encouraging
the development and deployment of existing and advanced cost-effective technolo-
gies for a new generation of cleaner, more fuel-efficient commercial trucks; creating
opportunities for job growth; and providing an opportunity for U.S. industry to build
on its position as a world leader in fuel-efficient trucking technologies. Under these
proposed standards, the fuel consumption of tractor trailers alone could drop as much
as 24%.
Ambitious yet Achievable Standards
Working with industry and other partners, EPA and NHTSA previously developed
and are midway through implementing the model year 2014-2018 heavy-duty vehicle
GHG and fuel efficiency standards. These standards, or "Phase 1" of the program,
has been a success, cutting carbon emissions and reducing petroleum use through the
use of off-the-shelf technologies. Responding to the President's Climate Action Plan,
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EPA-420-F-15-900
      June 2015

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and his February 2014 directive, the proposed Phase 2 program would go beyond Phase 1, setting
performance-based standards that would reach well into the next decade. The proposed stan-
dards would be met through wider deployment of existing and advanced technologies.

The proposed Phase 2 standards, which begin in the model year 2021 (model year 2018 for
trailers1) and culminate in standards for model year 2027, are the product of a comprehensive
assessment of existing and advanced technologies and extensive stakeholder outreach. The
agencies have had well over 300 meetings with manufacturers, fleets, owner-operators, dealer-
ships, suppliers, non-governmental organizations (NGOs), consumer groups, labor unions, and
other stakeholders to identify and understand the opportunities and challenges associated with
fuel saving technologies. Like Phase 1, the proposed Phase 2 standards would apply to a wide
range of on-road vehicles, from the largest pickup trucks and vans to semi-trucks - and for the
first time, would also include trailers.

In order to significantly reduce fuel consumption and carbon emissions while ensuring the
heavy-duty industry continues to meet the diverse needs of our transportation sector, the
agencies have carefully designed a set of proposed standards that are ambitious yet achievable
and affordable.

The Phase I standards are fully aligned among EPA, NHTSA and the state of California which
allows manufacturers to build a single fleet of vehicles and engines for the U.S. market. The
proposed Phase 2 program also fully harmonizes EPA and NHTSA standards. The agencies have
worked closely with the State of California's Air Resources Board in developing these proposed
standards.  All three agencies are committed to the final goal of a single national program that
would allow manufacturers to continue to build a single fleet of vehicles and engines.
Impacts and Benefits of the Proposed Program
The proposed Phase 2 program would significantly reduce carbon pollution, cutting GHG
emissions by approximately 1 billion metric tons and conserving about 1.8 billion barrels of
oil over the lifetime of the vehicles sold under the program.

In addition to providing benefits to the environment and improving energy security, the Phase 2
program would save operators money, bringing down the costs of transporting freight, providing
savings, benefiting businesses and consumers alike.

    •   Payback periods for truck owners would be favorable: the buyer of a new long-haul truck
       in 2027 would recoup the extra cost of the technology in under 2 years through fuel savings.

    •   Phase 2 would save vehicle owners about $170 billion in fuel costs over the lifetime of
       the vehicles sold in the regulatory time frame.

The agencies estimate the proposed standards would result in approximately $230 billion in net
benefits over the lifetime of the vehicles sold in the regulatory timeframe, while costing the
affected industry less than one-tenth that amount (about $25 billion over the same period).
  NHTSA's trailer standards would begin in 2021.

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Public Participation Opportunities
The agencies welcome your input on this proposed rule. Further information on opportuni-
ties for public participation may be found on EPA's and NHTSA's websites (see below for more
information). You should consult the Federal Register notice for this proposal for more informa-
tion about how to submit comments, when the comment period will close, and about where and
when public hearings will be held.

For  More Information
You can access the proposed joint rules and related documents on EPA's Office of Transportation
and Air Quality (OTAQ) Web site at:

         www.epa.gov/otaq/climate/regs-heavy-duty.htm

You can access the proposed joint rules and related documents, including the Draft Environ-
mental Impact Statement,  on NHTSA's Fuel Economy Web site at:

         www.nhtsa.gov/fuel-economy

For more information on these and related rules, please contact EPA or NHTSA.

EPA OTAQ Public Inquiries                     NHTSA Public Inquiries

www.epa.gov/otaq/oms-cmt.htm                 www.nhtsa.gov/Contact

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