US-CHINA CLEAN TRUCK AND

BUS SUMMIT 2012

Karl Simon

Director

Transportation and Climate Division

October 30, 2012

Office of Transportation and Air Quality U.S. Environmental Protection Agency

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Lessons Learned from

U.S. EPA Experience

• Using a systems approach produces best results

– Low sulfur fuel needed for advanced vehicle technologies & complete optimization.

– Vehicle performance-based standards achieve the most cost-effective conventional and GHG emissions reductions.

– Phased approaches achieve early reductions and long-term reductions

• Our regulatory programs designed to promote innovation – well-formulated standards can be “win-win” for the economy and the environment.

• Voluntary Partnerships

– Collaboration with stakeholders (industry, provincial governments, civil organizations) is critical to successful win-win policy.

• Strong Compliance

– A robust compliance regime is critical to achieving real-world benefits.

• Also, Regulatory flexibilities and voluntary partnerships play important roles in reducing emissions and fuel consumption.

– Equitably reward technology leaders and early technology adopters.

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Three Point Strategy to Reduce

Vehicle Emissions (GHGs & Air Quality)

1. Clean Vehicles - Develop technology-forcing performance standards for cars, buses, trucks, and nonroad engines, such as construction equipment, boats, lawn and garden equipment, and locomotives

2. Clean Fuels - Develop reformulated gasoline, diesel fuel, and nonpetroleum alternatives. Use of low sulfur fuels is critical to enable advanced vehicle technology as well as for the direct emissions benefits

3. Clean Transportation Alternatives - Develop strategies to encourage efficient transportation alternatives.

3 Deliberative Material - Staff Draft - Do Not Cite or Quote

U.S.-China Common Challenges

• Growing Car and Truck Fleets

• Urban Air Quality and CO2 Emissions

• Energy Security and Oil Consumption

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Los Angeles Beijing

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Transportation is a Major Contributor to U.S. GHG Emissions Transportation accounts for roughly 1/3 of total

U.S. GHG emissions and about 2/3 of U.S.

petroleum-based fuel use.

Transportation (1838.6 Tg)

27.0%

Non-Transportation

Mobile (204.3 Tg)

3.0%

Other U.S. Sources

(4778.9 Tg) 70.1%

2010 GHG Inventory Totals – U.S.

2010 Data - Inventory of U.S. Greenhouse Gas Emissions and Sinks (EPA)

Marine 2.1%

Rail 2.3% Nonroad

10.0%

Medium & Heavy-Duty

Trucks 19.7%

Aviation 7.0%

Other 3.4%

Passenger Cars 38.6%

Light-Duty Trucks 17.0%

2010 Transportation Sector

Conventional Pollutants from U.S. Transportation

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NOX Emissions VOC Emissions PM2.5 Emissions

NOX Mobile Source

Emissions

PM2.5 Mobile Source

Emissions

VOC Mobile Source

Emissions

Projections for 2017

Overview • U.S. EPA and U.S. Department of Transportation

work together to implement a strong coordinated national program of GHG vehicle standards and fuel consumption standards for:

– Light Duty Vehicles (passenger vehicles) • Finalized standards for Model Years 2012-2016

• Finalized standards for Model Years 2017-2025

– Heavy Duty Vehicles (commercial trucks & buses) • Finalized standards for Model Years 2014-2018

• Stage 2 standards under development.

• Programs reduce GHG emissions, improve national security, improve air quality, and provide significant life time cost savings to vehicle owners.

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Heavy-Duty Vehicle GHG Standards • In 2011, U.S. finalized its first Heavy-Duty (HD) Vehicle GHG & Fuel Efficiency

Standards. (“Phase 1”) – Rule was issued jointly by EPA and Department of Transportation.

– Will address fuel consumption and reductions in CO2 and other greenhouse gases

– Focus on achieving reductions that improved engine performance, aerodynamics and tires.

• Our SmartWay program served as a strong support for rule’s framework.

• Benefits: reduce oil imports, fuel consumption, CO2 emissions and operating costs. Over the life of 2014-18 MY trucks:

– 530 million barrels less oil

– 270 MMT reductions in GHGs

– $50 Billion in fuel savings

• Single coordinated National Program helps manufacturers to produce a single fleet of vehicles to meet related National and State requirements.

– The standards have broad support from major stakeholders

• A second phase of HD GHG standards is under development. 8

Phase 1 Structure

• Program divides a diverse medium-duty and heavy-duty vehicle sector

into 3 regulatory categories:

1. Combination Tractors

2. HD pickups and vans (PUVs)

3. Vocational vehicles (other trucks, buses, ambulances, etc. )

• Separate vehicle and engine standards

• Engines are certified separately and truck compliance determined using

a computer simulation model.

• Flexibilities – We allow generating emissions credits for averaging, banking, and trading.

– Provides incentives for early certification and advanced and innovative

technologies.

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Looking forward to HD GHG “Phase 2” Rule

• HD GHG Phase 2 will focus on energy security and environmental

goals without restricting the industry’s ability to produce a diverse range

of vehicles serving a wide range of needs.

• HD GHG Phase 2 will be based on collaborative outreach with

stakeholders.

• Will consider advanced technologies such as hybrid drivetrains, waste

heat recovery, and full electric vehicles to set stringencies.

• We look forward to continued discussions with MIIT on data sharing,

and harmonization of testing procedures and vehicle model simulation.

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Additional Insights

• Technology verification – Need for a credible, neutral, third-party to test

and verify the performance of technologies. – Low rolling resistant tires

– Aerodynamic devices

– Idle reduction technologies

– Retrofit devices

• Fuel Quality – Low sulfur enables a new generation of modern pollution

control technologies for trucks.

• Compliance – Strong fuel and engine standards achieve little without

strong compliance.

• Collaboration – We look forward to future collaboration in these areas.

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For More Information

• EPA’s rulemaking documents and implementation information

can be found at

http://www.epa.gov/otaq/climate/regulations.htm

• EPA’s SmartWay Partnership program can be found at

http://www.epa.gov/smartway/

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