Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles, 57106-57513 [2011-20740]

Agencies

• National Highway Traffic Safety Administration
• DEPARTMENT OF TRANSPORTATION
• ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 76, Number 179 (Thursday, September 15, 2011)]
[Rules and Regulations]
[Pages 57106-57513]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-20740]



[[Page 57105]]

Vol. 76

Thursday,

No. 179

September 15, 2011

Part II





Environmental Protection Agency





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40 CFR Parts 85, 86, 600, et al.





Department of Transportation





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National Highway Traffic Safety Administration





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49 CFR Parts 523, 534, and 535





Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for 
Medium- and Heavy-Duty Engines and Vehicles; Final Rule

Federal Register / Vol. 76, No. 179 / Thursday, September 15, 2011 / 
Rules and Regulations

[[Page 57106]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 85, 86, 600, 1033, 1036, 1037, 1039, 1065, 1066, and 
1068

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Parts 523, 534, and 535

[EPA-HQ-OAR-2010-0162; NHTSA-2010-0079; FRL-9455-1]
RIN 2060-AP61; 2127-AK74


Greenhouse Gas Emissions Standards and Fuel Efficiency Standards 
for Medium- and Heavy-Duty Engines and Vehicles

AGENCY: Environmental Protection Agency (EPA) and National Highway 
Traffic Safety Administration (NHTSA), DOT.

ACTION: Final Rules.

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SUMMARY: EPA and NHTSA, on behalf of the Department of Transportation, 
are each finalizing rules to establish a comprehensive Heavy-Duty 
National Program that will reduce greenhouse gas emissions and fuel 
consumption for on-road heavy-duty vehicles, responding to the 
President's directive on May 21, 2010, to take coordinated steps to 
produce a new generation of clean vehicles. NHTSA's final fuel 
consumption standards and EPA's final carbon dioxide (CO2) 
emissions standards are tailored to each of three regulatory categories 
of heavy-duty vehicles: Combination Tractors; Heavy-duty Pickup Trucks 
and Vans; and Vocational Vehicles. The rules include separate standards 
for the engines that power combination tractors and vocational 
vehicles. Certain rules are exclusive to the EPA program. These include 
EPA's final hydrofluorocarbon standards to control leakage from air 
conditioning systems in combination tractors, and pickup trucks and 
vans. These also include EPA's final nitrous oxide (N2O) and 
methane (CH4) emissions standards that apply to all heavy-
duty engines, pickup trucks and vans.
    EPA's final greenhouse gas emission standards under the Clean Air 
Act will begin with model year 2014. NHTSA's final fuel consumption 
standards under the Energy Independence and Security Act of 2007 will 
be voluntary in model years 2014 and 2015, becoming mandatory with 
model year 2016 for most regulatory categories. Commercial trailers are 
not regulated in this phase of the Heavy-Duty National Program.
    The agencies estimate that the combined standards will reduce 
CO2 emissions by approximately 270 million metric tons and 
save 530 million barrels of oil over the life of vehicles sold during 
the 2014 through 2018 model years, providing over $7 billion in net 
societal benefits, and $49 billion in net societal benefits when 
private fuel savings are considered.
    EPA is also finalizing provisions allowing light-duty vehicle 
manufacturers to use CO2 credits to meet the light-duty 
vehicle N2O and CH4 standards, technical 
amendments to the fuel economy provisions for light-duty vehicles, and 
a technical amendment to the criteria pollutant emissions requirements 
for certain switch locomotives.

DATES: These final rules are effective on November 14, 2011. The 
incorporation by reference of certain publications listed in this 
regulation is approved by the Director of the Federal Register as of 
November 14, 2011.

ADDRESSES: EPA and NHTSA have established dockets for this action under 
Docket ID No. EPA-HQ-OAR-2010-0162 and NHTSA-2010-0079, respectively. 
All documents in the docket are listed on the https://www.regulations.gov Web site. Although listed in the index, some 
information is not publicly available, e.g., confidential business 
information or other information whose disclosure is restricted by 
statute. Certain other material, such as copyrighted material, is not 
placed on the Internet and will be publicly available only in hard copy 
form. Publicly available docket materials are available either 
electronically through https://www.regulations.gov or in hard copy at 
the following locations: EPA: EPA Docket Center, EPA/DC, EPA West 
Building, 1301 Constitution Ave., NW., Room 3334, Washington, DC. The 
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, excluding legal holidays. The telephone number for the Public 
Reading Room is (202) 566-1744, and the telephone number for the Air 
Docket is (202) 566-1742. NHTSA: Docket Management Facility, M-30, U.S. 
Department of Transportation, West Building, Ground Floor, Rm. W12-140, 
1200 New Jersey Avenue, SE., Washington, DC 20590. The Docket 
Management Facility is open between 9 a.m. and 5 p.m. Eastern Time, 
Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: NHTSA: Lily Smith, Office of Chief 
Counsel, National Highway Traffic Safety Administration, 1200 New 
Jersey Avenue, SE., Washington, DC 20590. Telephone: (202) 366-2992. 
EPA: Lauren Steele, Office of Transportation and Air Quality, 
Assessment and Standards Division (ASD), Environmental Protection 
Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105; telephone number: 
(734) 214-4788; fax number: (734) 214-4816; e-mail address: 
steele.lauren@epa.gov, or contact the Office of Transportation and Air 
Quality at OTAQPUBLICWEB@epa.gov.

SUPPLEMENTARY INFORMATION: 

A. Does this action apply to me?

    This action affects companies that manufacture, sell, or import 
into the United States new heavy-duty engines and new Class 2b through 
8 trucks, including combination tractors, school and transit buses, 
vocational vehicles such as utility service trucks, as well as \3/4\-
ton and 1-ton pickup trucks and vans. The heavy-duty category 
incorporates all motor vehicles with a gross vehicle weight rating of 
8,500 pounds or greater, and the engines that power them, except for 
medium-duty passenger vehicles already covered by the greenhouse gas 
emissions standards and corporate average fuel economy standards issued 
for light-duty model year 2012-2016 vehicles. Regulated categories and 
entities include the following:

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                                                        Examples of
           Category              NAICS Code \a\    potentially affected
                                                         entities
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Industry......................            336111  Motor Vehicle
                                          336112   Manufacturers, Engine
                                                   and Truck
                                                   Manufacturers.
                                          336120
Industry......................            541514  Commercial Importers
                                          811112   of Vehicles and
                                                   Vehicle Components.
                                          811198
Industry......................            336111  Alternative Fuel
                                                   Vehicle Converters.
                                          336112

[[Page 57107]]

 
                                          422720
                                          454312
                                          541514
                                          541690
                                          811198
Industry......................            333618  Manufacturers,
                                          336510   remanufacturers and
                                                   importers of
                                                   locomotives and
                                                   locomotive engines.
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Note:
\a\ North American Industry Classification System (NAICS).

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely covered by these rules. 
This table lists the types of entities that the agencies are aware may 
be regulated by this action. Other types of entities not listed in the 
table could also be regulated. To determine whether your activities are 
regulated by this action, you should carefully examine the 
applicability criteria in the referenced regulations. You may direct 
questions regarding the applicability of this action to the persons 
listed in the preceding FOR FURTHER INFORMATION CONTACT section.

Table of Contents

A. Does this action apply to me?
I. Overview
    A. Introduction
    B. Building Blocks of the Heavy-Duty National Program
    C. Summary of the Final EPA and NHTSA HD National Program
    D. Summary of Costs and Benefits of the HD National Program
    E. Program Flexibilities
    F. EPA and NHTSA Statutory Authorities
    G. Future HD GHG and Fuel Consumption Rulemakings
II. Final GHG and Fuel Consumption Standards for Heavy-Duty Engines 
and Vehicles
    A. What vehicles will be affected?
    B. Class 7 and 8 Combination Tractors
    C. Heavy-Duty Pickup Trucks and Vans
    D. Class 2b-8 Vocational Vehicles
    E. Other Standards
III. Feasibility Assessments and Conclusions
    A. Class 7-8 Combination Tractor
    B. Heavy-Duty Pickup Trucks and Vans
    C. Class 2b-8 Vocational Vehicles
IV. Final Regulatory Flexibility Provisions
    A. Averaging, Banking, and Trading Program
    B. Additional Flexibility Provisions
V. NHTSA and EPA Compliance, Certification, and Enforcement 
Provisions
    A. Overview
    B. Heavy-Duty Pickup Trucks and Vans
    C. Heavy-Duty Engines
    D. Class 7 and 8 Combination Tractors
    E. Class 2b-8 Vocational Vehicles
    F. General Regulatory Provisions
    G. Penalties
VI. How will this program impact fuel consumption, GHG emissions, 
and climate change?
    A. What methodologies did the agencies use to project GHG 
emissions and fuel consumption impacts?
    B. MOVES Analysis
    C. What are the projected reductions in fuel consumption and GHG 
emissions?
    D. Overview of Climate Change Impacts From GHG Emissions
    E. Changes in Atmospheric CO2 Concentrations, Global 
Mean Temperature, Sea Level Rise, and Ocean pH Associated With the 
Program's GHG Emissions Reductions
VII. How will this final action impact non-ghg emissions and their 
associated effects?
    A. Emissions Inventory Impacts
    B. Health Effects of Non-GHG Pollutants
    C. Environmental Effects of Non-GHG Pollutants
    D. Air Quality Impacts of Non-GHG Pollutants
VIII. What are the agencies' estimated cost, economic, and other 
impacts of the final program?
    A. Conceptual Framework for Evaluating Impacts
    B. Costs Associated With the Final Program
    C. Indirect Cost Multipliers
    D. Cost per Ton of Emissions Reductions
    E. Impacts of Reduction in Fuel Consumption
    F. Class Shifting and Fleet Turnover Impacts
    G. Benefits of Reducing CO2 Emissions
    H. Non-GHG Health and Environmental Impacts
    I. Energy Security Impacts
    J. Other Impacts
    K. The Effect of Safety Standards and Voluntary Safety 
Improvements on Vehicle Weight
    L. Summary of Costs and Benefits
    M. Employment Impacts
IX. Analysis of the Alternatives
    A. What are the alternatives that the agencies considered?
    B. How do these alternatives compare in overall GHG emissions 
reductions and fuel efficiency and cost?
    C. What is the agencies' decision regarding trailer standards?
X. Public Participation
XI. NHTSA's Record of Decision
    A. The Agency's Decision
    B. Alternatives Considered by NHTSA in Reaching Its Decision, 
Including the Environmentally Preferable Alternative
    C. Factors Balanced by NHTSA in Making Its Decision
    D. How the Factors and Considerations Balanced by NHTSA Entered 
Into Its Decision
    E. The Agency's Preferences Among Alternatives Based on Relevant 
Factors, Including Economic and Technical Considerations and Agency 
Statutory Missions
    F. Mitigation
XII. Statutory and Executive Order Reviews
XIII. Statutory Provisions and Legal Authority
    A. EPA
    B. NHTSA

I. Overview

A. Introduction

    EPA and NHTSA (``the agencies'') are announcing a first-ever 
program to reduce greenhouse gas (GHG) emissions and fuel consumption 
in the heavy-duty highway vehicle sector. This broad sector--ranging 
from large pickups to sleeper-cab tractors--together represent the 
second largest contributor to oil consumption and GHG emissions from 
the mobile source sector, after light-duty passenger cars and trucks. 
These are the second joint rules issued by the agencies, following on 
the April 1, 2010 standards to sharply reduce GHG emissions and fuel 
consumption from MY 2012-2016 passenger cars and light trucks 
(published on May 7, 2010 at 75 FR 25324).
    In a May 21, 2010 memorandum to the Administrators of EPA and NHTSA 
(and the Secretaries of Transportation and Energy), the President 
stated that ``America has the opportunity to lead the world in the 
development of a new generation of clean cars and trucks through 
innovative technologies and manufacturing that will spur economic 
growth and create high-quality domestic jobs, enhance our energy 
security, and improve our environment.'' 1 2 In the

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May 2010 memorandum, the President specifically requested the 
Administrators of EPA and NHTSA to ``immediately begin work on a joint 
rulemaking under the Clean Air Act (CAA) and the Energy Independence 
and Security Act of 2007 (EISA) to establish fuel efficiency and 
greenhouse gas emissions standards for commercial medium-and heavy-duty 
on-highway vehicles and work trucks beginning with the 2014 model year 
(MY).'' In this final rulemaking, each agency is addressing this 
Memorandum by adopting rules under its respective authority that 
together comprise a coordinated and comprehensive HD National Program 
designed to address the urgent and closely intertwined challenges of 
reduction of dependence on oil, achievement of energy security, and 
amelioration of global climate change.
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    \1\ Improving Energy Security, American Competitiveness and Job 
Creation, and Environmental Protection Through a Transformation of 
Our Nation's Fleet of Cars And Trucks,'' Issued May 21, 2010, 
published at 75 FR 29399, May 26, 2010.
    \2\ The May 2010 Presidential Memorandum also directed EPA and 
NHTSA, in close coordination with the California Air Resources 
Board, to build on the National Program for 2012-2016 MY light-duty 
vehicles by developing and proposing coordinated light-duty vehicle 
standards for MY 2017-2025. The agencies have taken an initial step 
in this process, releasing a Joint Notice of Intent and Initial 
Joint Technical Assessment Report in September 2010 (75 FR 62739), 
and a Supplemental Notice of Intent (75 FR 76337). The agencies plan 
to issue a full light-duty vehicle proposal to extend the National 
Program to MY 2017-2025 in September 2011.
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    At the same time, the final program will enhance American 
competitiveness and job creation, benefit consumers and businesses by 
reducing costs for transporting goods, and spur growth in the clean 
energy sector.
    The HD National Program the agencies are finalizing today reflects 
a collaborative effort between the agencies, a range of public interest 
nongovernmental organizations (NGOs), the state of California and the 
regulated industry. At the time of the President's announcement, a 
number of major HD truck and engine manufacturers representing the vast 
majority of this industry, and the California Air Resources Board 
(California ARB), sent letters to EPA and NHTSA supporting the creation 
of a HD National Program based on a common set of principles. In the 
letters, the stakeholders committed to working with the agencies and 
with other stakeholders toward a program consistent with common 
principles, including:
    Increased use of existing technologies to achieve significant GHG 
emissions and fuel consumption reductions;
    A program that starts in 2014 and is fully phased in by 2018;
    A program that works towards harmonization of methods for 
determining a vehicle's GHG and fuel efficiency, recognizing the global 
nature of the issues and the industry;
    Standards that recognize the commercial needs of the trucking 
industry; and
    Incentives leading to the early introduction of advanced 
technologies.
    The final rules adopted today reflect these principles. The final 
HD National Program also builds on many years of heavy-duty engine and 
vehicle technology development to achieve what the agencies believe is 
the greatest degree of fuel consumption and GHG emission reduction 
appropriate, technologically and economically feasible, and cost-
effective for model years 2014-2018. In addition to taking aggressive 
steps that are reasonably possible now, based on the technological 
opportunities and pathways that present themselves during these model 
years, the agencies and industry will also continue learning about 
emerging opportunities for this complex sector to further reduce fuel 
consumption and GHG emission through future regulatory steps.
    Similarly, the agencies will participate in efforts to improve our 
ability to accurately characterize the actual in-use fuel consumption 
and emissions of this complex sector. As technologies progress in the 
coming years and as the agencies improve the regulatory tools to 
evaluate real world vehicle performance, we expect that we will develop 
a second phase of regulations to reinforce these initial rules and 
achieve further reductions in GHG emissions and fuel consumption 
reduction for the mid- and longer-term time frame (beyond 2018). The 
agencies are committed to working with all interested stakeholders in 
this effort and to the extent possible working towards alignment with 
similar programs being developed in Canada, Mexico, Europe, China, and 
Japan. In doing so, we will continue to evaluate many of the structural 
and technical decisions we are making in today's final action in the 
context of new technologies and the new regulatory tools that we expect 
to realize in the future.
    The regulatory program we are finalizing today is largely unchanged 
from the proposal the agencies made on November 30, 2010 (See 75 FR 
741512). The structure of the program and the stringency of the 
standards are essentially the same as proposed. We have made a number 
of changes to the testing requirements and reporting requirements to 
provide greater regulatory certainty and better align the NHTSA and EPA 
portions of the program. In response to comments, we have also made 
some changes to the averaging, banking and trading (ABT) provisions of 
the program that will make implementation of this final program more 
flexible for manufacturers. We have added provisions to further 
encourage the development of advanced technologies and to provide a 
more straightforward mechanism to certify engines and vehicles using 
innovative technologies. Finally in response to comments, we have made 
some technical changes to our emissions compliance model that results 
in different numeric standards for both combination tractors and 
vocational vehicles to more accurately characterize emissions while 
maintaining the same overall stringency and therefore expected costs 
and benefits of the program.
    Heavy-duty vehicles move much of the nation's freight and carry out 
numerous other tasks, including utility work, concrete delivery, fire 
response, refuse collection, and many more. Heavy-duty vehicles are 
primarily powered by diesel engines, although about 37 percent of these 
vehicles are powered by gasoline engines.\3\ Heavy-duty trucks \4\ have 
long been an important part of the goods movement infrastructure in 
this country and have experienced significant growth over the last 
decade related to increased imports and exports of finished goods and 
increased shipping of finished goods to homes through Internet 
purchases.
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    \3\ References in this preamble to ``gasoline'' engines (and the 
vehicles powered by them) generally include other Otto-cycle engines 
as well, such as those fueled by ethanol and natural gas, except in 
contexts that are clearly gasoline-specific.
    \4\ In this rulemaking, EPA and NHTSA use the term ``truck'' in 
a general way, referring to all categories of regulated heavy-duty 
highway vehicles (including buses). As such, the term is generally 
interchangeable with ``heavy-duty vehicle.''
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    The heavy-duty sector is extremely diverse in several respects, 
including types of manufacturing companies involved, the range of sizes 
of trucks and engines they produce, the types of work the trucks are 
designed to perform, and the regulatory history of different 
subcategories of vehicles and engines. The current heavy-duty fleet 
encompasses vehicles from the ``18-wheeler'' combination tractors one 
sees on the highway to school and transit buses, to vocational vehicles 
such as utility service trucks, as well as the largest pickup trucks 
and vans.
    For purposes of this preamble, the term ``heavy-duty'' or ``HD'' is 
used to apply to all highway vehicles and engines that are not within 
the range of light-duty vehicles, light-duty trucks, and medium-duty 
passenger vehicles (MDPV) covered by the GHG and Corporate Average Fuel 
Economy (CAFE) standards issued for MY 2012-2016.\5\ It also does not 
include

[[Page 57109]]

motorcycles. Thus, in this rulemaking, unless specified otherwise, the 
heavy-duty category incorporates all vehicles with a gross vehicle 
weight rating above 8,500 pounds, and the engines that power them, 
except for MDPVs.\6\
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    \5\ Light-Duty Vehicle Greenhouse Gas Emission Standards and 
Corporate Average Fuel Economy Standards; Final Rule 75 FR 25323, 
May 7, 2010.
    \6\ The CAA defines heavy-duty as a truck, bus or other motor 
vehicles with a gross vehicle weight rating exceeding 6,000 pounds 
(CAA section 202(b)(3)). The term HD as used in this action refers 
to a subset of these vehicles and engines.
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    The agencies proposed to cover all segments of the heavy-duty 
category above, except with respect to recreational vehicles (RVs or 
motor homes). We note that the Energy Independence and Security Act of 
2007 requires NHTSA to set standards for ``commercial medium- and 
heavy-duty on-highway vehicles and work trucks.'' \7\ The standards 
that EPA is finalizing today cover recreational on-highway vehicles, 
while NHTSA proposed not to include recreational vehicles based on an 
interpretation of the term ``commercial medium- and heavy-duty on-
highway commercial'' vehicles. NHTSA stated in the NPRM that 
recreational vehicles are non-commercial, and therefore outside of the 
term and the scope of its rule.
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    \7\ 49 U.S.C. 32902(k)(2). ``Commercial medium- and heavy-duty 
on-highway vehicles'' are defined as on-highway vehicles with a 
gross vehicle weight rating of 10,000 pounds or more, while ``work 
trucks'' are defined as vehicles rated between 8,500 and 10,000 
pounds gross vehicle weight that are not MDPVs. See 49 U.S.C. 
32901(a)(7) and (a)(19).
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    Oshkosh Corporation commented that this interpretation did not 
match the statutory definition of the term in EISA, which defines 
``commercial medium- and heavy-duty on-highway vehicle'' by weight 
only,\8\ and that therefore the agency's interpretation of the term 
should be explicitly broadened to include all vehicles, and more than 
only vehicles that are not engaged in interstate commerce as defined by 
the Federal Motor Carrier Safety Administration in 49 CFR part 202. 
Alternatively, Oshkosh suggested that if NHTSA followed the definition 
provided in EISA, which makes no direct reference to the concept of 
``commercial,'' there would be no logical reason to exclude RVs based 
on that definition.
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    \8\ See 49 U.S.C. 32902(k)(2), Note 7 above.
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    NHTSA has considered Oshkosh's comment and reconsidered its 
interpretation that effectively read words into the statutory 
definition. Given the very wide variety of vehicles contained in the HD 
fleet, reading those words into the definition and thereby excluding 
certain types of vehicles could create illogical results, i.e., 
treating similar vehicles differently. Therefore, NHTSA will adhere to 
the statutory definition contained in EISA for this rulemaking. 
However, as RVs were not included by NHTSA in the proposed regulation 
in the NPRM, they are not within the scope and must be excluded in 
NHTSA's portion of the final program. Accordingly, NHTSA will address 
this issue in the next rulemaking. However, as noted, RVs are subject 
to the CO2 standards for vocational vehicles.
    Setting fuel consumption standards for the heavy-duty sector, 
pursuant to NHTSA's EISA authority, will also improve our energy and 
national security by reducing our dependence on foreign oil, which has 
been a national objective since the first oil price shocks in the 
1970s. Net petroleum imports now account for approximately 49-51 
percent of U.S. petroleum consumption. World crude oil production is 
highly concentrated, exacerbating the risks of supply disruptions and 
price shocks as the recent unrest in North Africa and the Persian Gulf 
highlights. Recently, oil prices have been over $100 per barrel, 
gasoline and diesel fuel prices in excess of $4 per gallon, causing 
financial hardship for many families and businesses. The export of U.S. 
assets in exchange for oil imports continues to be an important 
component of the historically unprecedented U.S. trade deficits. 
Transportation accounts for about 72 percent of U.S. petroleum 
consumption. Heavy-duty vehicles account for about 17 percent of 
transportation oil use, which means that they alone account for about 
12 percent of all U.S. oil consumption.\9\
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    \9\ In 2009 Source: EIA Annual Energy Outlook 2010 released May 
11, 2010.
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    Setting GHG emissions standards for the heavy-duty sector will help 
to ameliorate climate change. The EPA Administrator found after a 
thorough examination of the scientific evidence on the causes and 
impact of current and future climate change, and careful review of 
public comments, that the science compellingly supports a positive 
finding that atmospheric concentrations of six greenhouse gases taken 
in combination result in air pollution which may reasonably be 
anticipated to endanger both public health and welfare and that the 
combined emissions of these greenhouse gases from new motor vehicles 
and engines contributes to the greenhouse gas air pollution that 
endangers public health and welfare. In her finding, the Administrator 
carefully studied and relied heavily upon the major findings and 
conclusions from the recent assessments of the U.S. Climate Change 
Science Program and the U.N. Intergovernmental Panel on Climate Change. 
74 FR 66496, December 15, 2009. As summarized in the Technical Support 
Document for EPA's Endangerment and Cause or Contribute Findings under 
section 202(a) of the Clean Air Act, anthropogenic emissions of GHGs 
are very likely (a 90 to 99 percent probability) the cause of most of 
the observed global warming over the last 50 years.\10\ Primary GHGs of 
concern are carbon dioxide (CO2), methane (CH4), 
nitrous oxide (N2O), hydrofluorocarbons (HFCs), 
perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). 
Mobile sources emitted 31 percent of all U.S. GHGs in 2007 
(transportation sources, which do not include certain off-highway 
sources, account for 28 percent) and have been the fastest-growing 
source of U.S. GHGs since 1990.\11\ Mobile sources addressed in EPA's 
endangerment and contribution findings under CAA section 202(a)--light-
duty vehicles, heavy-duty trucks, buses, and motorcycles--accounted for 
23 percent of all U.S. GHG emissions in 2007.\12\ Heavy-duty vehicles 
emit CO2, CH4, N2O, and HFCs and are 
responsible for nearly 19 percent of all mobile source GHGs (nearly 6 
percent of all U.S. GHGs) and about 25 percent of section 202(a) mobile 
source GHGs. For heavy-duty vehicles in 2007, CO2 emissions 
represented more than 99 percent of all GHG emissions (including 
HFCs).\13\
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    \10\ U.S. EPA. (2009). ``Technical Support Document for 
Endangerment and Cause or Contribute Findings for Greenhouse Gases 
Under Section 202(a) of the Clean Air Act'' Washington, DC, 
available at Docket: EPA-HQ-OAR-2009-0171-11645, and at https://epa.gov/climatechange/endangerment.html.
    \11\ U.S. Environmental Protection Agency. 2009. Inventory of 
U.S. Greenhouse Gas Emissions and Sinks: 1990-2007. EPA 430-R-09-
004. Available at https://epa.gov/climatechange/emissions/downloads09/GHG2007entire_report-508.pdf.
    \12\ See Endangerment TSD, Note 10, above, at pp. 180-194.
    \13\ U.S. Environmental Protection Agency. 2009. Inventory of 
U.S. Greenhouse Gas Emissions and Sinks: See Note 11, above.
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    In developing this HD National program, the agencies have worked 
with a large and diverse group of stakeholders representing truck and 
engine manufacturers, trucking fleets, environmental organizations, and 
states including the State of California.\14\ Further, it is our 
expectation based on our ongoing work with the State of California that 
the California ARB will

[[Page 57110]]

be able to adopt regulations equivalent in practice to those of this HD 
National Program, just as it has done for past EPA regulation of heavy-
duty trucks and engines. NHTSA and EPA have been working with 
California ARB to enable that outcome.
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    \14\ Pursuant to DOT Order 2100.2, NHTSA has docketed a 
memorandum recording those meetings that it attended and documents 
submitted by stakeholders which formed a basis for this action and 
which can be made publicly available in its docket for this 
rulemaking. DOT Order 2100.2 is available at https://www.reg-group.com/library/DOT2100-2.PDF.
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    In light of the industry's diversity, and consistent with the 
recommendations of the National Academy of Sciences (NAS) as discussed 
further below, the agencies are adopting a HD National Program that 
recognizes the different sizes and work requirements of this wide range 
of heavy-duty vehicles and their engines. NHTSA's final fuel 
consumption standards and EPA's final GHG standards apply to 
manufacturers of the following types of heavy-duty vehicles and their 
engines; the final provisions for each of these are described in more 
detail below in this section:
     Heavy-duty Pickup Trucks and Vans.
     Combination Tractors.
     Vocational Vehicles.
    As in the light-duty 2012-2016 MY vehicle rule, EPA's and NHTSA's 
final standards for the heavy-duty sector are largely harmonized with 
one another due to the close and direct relationship between improving 
the fuel efficiency of these vehicles and reducing their CO2 
tailpipe emissions. For all vehicles that consume carbon-based fuels, 
the amount of CO2 exhaust emissions is essentially constant 
per gallon for a given type of fuel that is consumed. The more 
efficient a heavy-duty truck is in completing its work, the lower its 
environmental impact will be, because the less fuel consumed to move 
cargo a given distance, the less CO2 that truck emits 
directly into the air. The technologies available for improving fuel 
efficiency, and therefore for reducing both CO2 emissions 
and fuel consumption, are one and the same.\15\ Because of this close 
technical relationship, NHTSA and EPA have been able to rely on 
jointly-developed assumptions, analyses, and analytical conclusions to 
support the standards and other provisions that NHTSA and EPA are 
adopting under our separate legal authorities.
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    \15\ However, as discussed below, in addition to addressing 
CO2, the EPA's final standards also include provisions to 
address other GHGs (nitrous oxide, methane, and air conditioning 
refrigerant emissions). See Section II.
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    This program is based on standards for direct exhaust emissions 
from engines and vehicles. In characterizing the overall emissions 
impacts, benefits and costs of the program, analyses of air pollutant 
emissions from upstream sources have been conducted. In this action, 
the agencies use the term upstream to include emissions from the 
production and distribution of fuel. A summary of the analysis of 
upstream emissions can be found in Section VI.C of this preamble, and 
further details are available in Chapter 5 of the RIA.
    The timelines for the implementation of the final NHTSA and EPA 
standards are also closely coordinated. EPA's final GHG emission 
standards will begin in model year 2014. In order to provide for the 
four full model years of regulatory lead time required by EISA, as 
discussed in Section 0 below, NHTSA's final fuel consumption standards 
will be voluntary in model years 2014 and 2015, becoming mandatory in 
model year 2016, except for diesel engine standards which will be 
voluntary in model years 2014, 2015 and 2016, becoming mandatory in 
model year 2017. Both agencies are also allowing for early compliance 
in model year 2013. A detailed discussion of how the final standards 
are consistent with each agency's respective statutory requirements and 
authorities is found later in this preamble.
    Allison Transmission stated that sufficient time must be taken 
before issuing the final rules in order to ensure that the standards 
are supportable. As explained in Sections II and III below, as well as 
in the RIA, the agencies believe there is sufficient lead time to meet 
all of the standards adopted in today's rules. For those areas for 
which the agencies have determined that insufficient time is available 
to develop appropriate standards, such as for trailers, the agencies 
are not including regulations as part of this initial program.
    NHTSA received several comments related to the timing of the 
implementation of its fuel consumption standards. The Engine 
Manufacturers Association (EMA), the National Automobile Dealers 
Association (NADA), The Volvo Group (Volvo), and Navistar argued that 
the timing of NHTSA's standards violated the lead time requirement of 
49 U.S.C. 32902(k)(3)(A), which states that standards under the new 
medium- and heavy-duty program shall have ``not less than 4 full model 
years of regulatory lead-time.'' The commenters seemed to interpret the 
voluntary program as the imposition of regulation upon industry. NADA 
described NHTSA's standards during the voluntary period as 
``mandates.''
    NHTSA has reviewed this issue and believes that the regulatory 
schedule is consistent with the lead time requirement of Section 
32902(k)(3). To clarify, NHTSA will not be imposing a mandatory 
regulatory program until 2016, and none of the voluntary standards will 
be ``mandates.'' As described in later sections, the voluntary 
standards would only apply to a manufacturer if it makes the voluntary 
and affirmative choice to opt-in to the program. \16\ Mandatory NHTSA 
standards will first come into effect in 2016, giving industry four 
full years of lead time with the NHTSA fuel consumption standards.
---------------------------------------------------------------------------

    \16\ Prior to or at the same time that a manufacturer submits 
its first application for a certificate of conformity; See Section V 
below.
---------------------------------------------------------------------------

    EMA, NADA, and Navistar also argued that the proposed standards 
would violate the stability requirement of 49 U.S.C. 32902(k)(3)(B), 
which states that they shall have ``not less than 3 full model years of 
regulatory stability.'' EMA stated that since there are HD emission 
standards taking effect in 2013, the 2014 implementation date for this 
rule would violate the stability requirements. NADA argued that the MY 
2014-2017/2018 phase-in period was inadequate to fulfill the stability 
requirement.
    Congress has not spoken directly to the meaning of the words 
``regulatory stability.'' NHTSA believes that the ``regulatory 
stability'' requirement exists to ensure that manufacturers will not be 
subject to new standards in repeated rulemakings too rapidly, given 
that Congress did not include a minimum duration period for the MD/HD 
standards.\17\ NHTSA further believes that standards, which as set 
provide for increasing stringency during the period that the standards 
are applicable under this rule to be the maximum feasible during the 
regulatory period, are within the meaning of the statute. In this 
statutory context, NHTSA interprets the phrase ``regulatory stability'' 
in Section 32902(k)(3)(B) as requiring that the standards remain in 
effect for three years before they may be increased by amendment. It 
does not prohibit standards which contain pre-determined stringency 
increases.
---------------------------------------------------------------------------

    \17\ In contrast, light-duty standards must remain in place for 
``at least 1, but not more than 5, model years.'' 23902(b)(3)(B).
---------------------------------------------------------------------------

    As laid out in Section II below, NHTSA's final standards follow 
different phase-in schedules based on differences between the 
regulatory categories. Consistent with NHTSA's statutory obligation to 
implement a program designed to achieve the maximum feasible fuel 
efficiency improvement, the standards increase in stringency based upon 
increasing fleet penetration rates for the available technologies. The 
NPRM proposed phase-in schedules aligned with EPA's,

[[Page 57111]]

some of which followed pre-determined stringency increases. The NPRM 
also noted that NHTSA was considering alternate standards that would 
not change in stringency during the time frame when the regulations are 
effective for those standards that increased throughout the mandatory 
program. As described in Section II below, the final rule includes the 
proposed alternate standards for those standards that follow such a 
stringency phase-in path. Therefore, NHTSA believes that the final rule 
provides ample stability for each standard.
    Each standard, associated phase-in schedule, and alternative 
standard implemented by this final rule was noticed in the NPRM. Those 
fuel consumption standards that become mandatory in 2017 will remain in 
effect through at least 2019. This further ensures that the fuel 
consumption standards in this rule will remain in effect for at least 
three years, providing the statutorily-mandated three full years of 
regulatory stability, and ensuring that manufacturers will not be 
subject to new or amended standards too rapidly. (The greenhouse gas 
emission standards remain in effect unless and until amended in all 
later model years in any case.) Therefore, NHTSA believes the 
commenters' concern about regulatory stability is addressed in the 
structure of the rule.
    Neither EPA nor NHTSA is adopting standards at this time for GHG 
emissions or fuel consumption, respectively, for heavy-duty commercial 
trailers or for vehicles or engines manufactured by small businesses. 
The agencies recognize that aerodynamic and tire rolling resistance 
improvements to trailers represent a significant opportunity to reduce 
fuel consumption and GHGs as evidenced, among other things, by the work 
of the EPA SmartWay program. While we are deferring action today on 
setting trailer standards, the agencies are committed to moving forward 
to create a regulatory program for trailers that would complement the 
current vehicle program. See Section IX for more details on the 
agencies' decisions regarding trailers, and Sections II and XII for 
more details on the agencies' decisions regarding small businesses.
    The agencies have analyzed in detail the projected costs, fuel 
savings, and benefits of the final GHG and fuel consumption standards. 
Table I-1 shows estimated lifetime discounted program costs (including 
technological outlays), fuel savings, and benefits for all heavy-duty 
vehicles projected to be sold in model years 2014-2018 over these 
vehicles' lives. Section I.D includes additional information about this 
analysis.

 Table I-1--Estimated Lifetime Discounted Costs, Fuel Savings, Benefits,
    and Net Benefits for 2014-2018 Model Year Heavy-Duty Vehicles a b
                            [Billions, 2009$]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
              Lifetime Present Value \c\--3% Discount Rate
------------------------------------------------------------------------
Program Costs..................................................     $8.1
Fuel Savings...................................................       50
Benefits.......................................................      7.3
Net Benefits\d\................................................       49
------------------------------------------------------------------------
                 Annualized Value \e\--3% Discount Rate
------------------------------------------------------------------------
Annualized Costs...............................................      0.4
Fuel Savings...................................................      2.2
Annualized Benefits............................................      0.4
Net Benefits \d\...............................................      2.2
------------------------------------------------------------------------
              Lifetime Present Value \c\--7% Discount Rate
------------------------------------------------------------------------
Program Costs..................................................      8.1
Fuel Savings...................................................       34
Benefits.......................................................      6.7
Net Benefits \d\...............................................       33
------------------------------------------------------------------------
                 Annualized Value \e\--7% Discount Rate
------------------------------------------------------------------------
Annualized Costs...............................................      0.6
Fuel Savings...................................................      2.6
Annualized Benefits............................................      0.5
Net Benefits \d\...............................................      2.5
------------------------------------------------------------------------
Notes:
a The agencies estimated the benefits associated with four different
  values of a one ton CO2 reduction (model average at 2.5% discount
  rate, 3%, and 5%; 95th percentile at 3%), which each increase over
  time. For the purposes of this overview presentation of estimated
  costs and benefits, however, we are showing the benefits associated
  with the marginal value deemed to be central by the interagency
  working group on this topic: the model average at 3% discount rate, in
  2009 dollars. Section VIII.F provides a complete list of values for
  the 4 estimates.
b Note that net present value of reduced GHG emissions is calculated
  differently than other benefits. The same discount rate used to
  discount the value of damages from future emissions (SCC at 5, 3, and
  2.5 percent) is used to calculate net present value of SCC for
  internal consistency. Refer to Section VIII.F for more detail.
c Present value is the total, aggregated amount that a series of
  monetized costs or benefits that occur over time is worth now (in year
  2009 dollar terms), discounting future values to the present.
d Net benefits reflect the fuel savings plus benefits minus costs.
e The annualized value is the constant annual value through a given time
  period (2012 through 2050 in this analysis) whose summed present value
  equals the present value from which it was derived.

B. Building Blocks of the Heavy-Duty National Program

    The standards that are being adopted in this notice represent the 
first time that NHTSA and EPA are regulating the heavy-duty sector for 
fuel consumption and GHG emissions, respectively. The HD National 
Program is rooted in EPA's prior regulatory history, the SmartWay[reg] 
Transport Partnership program, and extensive technical and engineering 
analyses done at the federal level. This section summarizes some of the 
most important of these precursors and foundations for this HD National 
Program.
(1) EPA's Traditional Heavy-Duty Regulatory Program
    Since the 1980s, EPA has acted several times to address tailpipe 
emissions of criteria pollutants and air toxics from heavy-duty 
vehicles and engines. During the last 18 years, these programs have 
primarily addressed emissions of particulate matter (PM) and the 
primary ozone precursors, hydrocarbons (HC) and oxides of nitrogen 
(NOX). These programs have successfully achieved significant 
and cost-effective reductions in emissions and associated health and 
welfare benefits to the nation. They have been structured in ways that 
account for the varying circumstances of the engine and truck 
industries. As required by the CAA, the emission standards implemented 
by these programs include standards that apply at the time that the 
vehicle or engine is sold as well as standards that apply in actual 
use. As a result of these programs, new vehicles meeting current 
emission standards will emit 98 percent less NOX and 99 
percent less PM than new trucks 20 years ago. The resulting emission 
reductions provide significant public health and welfare benefits. The 
most recent EPA regulations which were fully phased-in in 2010, the 
monetized health and welfare benefits alone are projected to be greater 
than $70 billion in 2030--benefits far exceeding compliance costs and 
not including the unmonetized benefits resulting from reductions in air 
toxics and ozone precursors (66 FR 5002, January 18, 2001).
    EPA's overall program goal has always been to achieve emissions 
reductions from the complete vehicles that operate on our roads. The 
agency has often accomplished this goal for many heavy-duty truck 
categories through the regulation of heavy-duty engine emissions. A key 
part of this success has been the development over many years of a 
well-established, representative, and robust set of engine

[[Page 57112]]

test procedures that industry and EPA now routinely use to measure 
emissions and determine compliance with emission standards. These test 
procedures in turn serve the overall compliance program that EPA 
implements to help ensure that emissions reductions are being achieved. 
By isolating the engine from the many variables involved when the 
engine is installed and operated in a HD vehicle, EPA has been able to 
accurately address the contribution of the engine alone to overall 
emissions. The agencies discuss below how the final program 
incorporates the existing engine-based approach used for criteria 
pollutant regulations, as well as new vehicle-based approaches.
(2) NHTSA's Responsibilities To Regulate Heavy-Duty Fuel Efficiency 
under EISA
    With the passage of the EISA in December 2007, Congress laid out a 
framework developing the first fuel efficiency regulations for HD 
vehicles. As codified at 49 U.S.C. 32902(k), EISA requires NHTSA to 
develop a regulatory system for the fuel efficiency of commercial 
medium-duty and heavy-duty on-highway vehicles and work trucks in three 
steps: a study by NAS, a study by NHTSA,\18\ and a rulemaking to 
develop the regulations themselves.
---------------------------------------------------------------------------

    \18\ Factors and Considerations for Establishing a Fuel 
Efficiency Regulatory Program for Commercial Medium- and Heavy-Duty 
Vehicles, October 2010, available at https://www.nhtsa.gov/staticfiles/rulemaking/pdf/cafe/NHTSA_Study_Trucks.pdf.
---------------------------------------------------------------------------

    Specifically, section 102 of EISA, codified at 49 U.S.C. 
32902(k)(2), states that not later than two years after completion of 
the NHTSA study, DOT (by delegation, NHTSA), in consultation with the 
Department of Energy (DOE) and EPA, shall develop a regulation to 
implement a ``commercial medium-duty and heavy-duty on-highway vehicle 
and work truck fuel efficiency improvement program designed to achieve 
the maximum feasible improvement.'' NHTSA interprets the timing 
requirements as permitting a regulation to be developed earlier, rather 
than as requiring the agency to wait a specified period of time.
    Congress specified that as part of the ``HD fuel efficiency 
improvement program designed to achieve the maximum feasible 
improvement,'' NHTSA must adopt and implement:
    Appropriate test methods;
    Measurement metrics;
    Fuel economy standards; \19\ and
---------------------------------------------------------------------------

    \19\ In the context of 49 U.S.C. 32902(k), NHTSA interprets 
``fuel economy standards'' as referring not specifically to miles 
per gallon, as in the light-duty vehicle context, but instead more 
broadly to account as accurately as possible for MD/HD fuel 
efficiency. While it is a metric that NHTSA considered for setting 
MD/HD fuel efficiency standards, the agency recognizes that miles 
per gallon may not be an appropriate metric given the work that MD/
HD vehicles are manufactured to do. NHTSA is thus finalizing 
alternative metrics as discussed further below.
---------------------------------------------------------------------------

    Compliance and enforcement protocols.
    Congress emphasized that the test methods, measurement metrics, 
standards, and compliance and enforcement protocols must all be 
appropriate, cost-effective, and technologically feasible for 
commercial medium-duty and heavy-duty on-highway vehicles and work 
trucks. NHTSA notes that these criteria are different from the ``four 
factors'' of 49 U.S.C. 32902(f) \20\ that have long governed NHTSA's 
setting of fuel economy standards for passenger cars and light trucks, 
although many of the same issues are considered under each of these 
provisions.
---------------------------------------------------------------------------

    \20\ 49 U.S.C. 32902(f) states that ``When deciding maximum 
feasible average fuel economy under this section, [NHTSA] shall 
consider technological feasibility, economic practicability, the 
effect of other motor vehicle standards of the Government on fuel 
economy, and the need of the United States to conserve energy.''
---------------------------------------------------------------------------

    Congress also stated that NHTSA may set separate standards for 
different classes of HD vehicles, which the agency interprets broadly 
to allow regulation of HD engines in addition to HD vehicles, and 
provided requirements new to 49 U.S.C. 32902 in terms of timing of 
regulations, stating that the standards adopted as a result of the 
agency's rulemaking shall provide not less than four full model years 
of regulatory lead time, and three full model years of regulatory 
stability.
(3) National Academy of Sciences Report on Heavy-Duty Technology
    In April 2010 as mandated by Congress in EISA, the National 
Research Council (NRC) under NAS issued a report to NHTSA and to 
Congress evaluating medium-duty and heavy-duty truck fuel efficiency 
improvement opportunities, titled ``Technologies and Approaches to 
Reducing the Fuel Consumption of Medium- and Heavy-duty Vehicles.'' 
\21\ This study covers the same universe of heavy-duty vehicles that is 
the focus of this final rulemaking--all highway vehicles that are not 
light-duty, MDPVs, or motorcycles. The agencies have carefully 
evaluated the research supporting this report and its recommendations 
and have incorporated them to the extent practicable in the development 
of this rulemaking.
---------------------------------------------------------------------------

    \21\ Committee to Assess Fuel Economy Technologies for Medium- 
and Heavy-Duty Vehicles; National Research Council; Transportation 
Research Board (2010). ``Technologies and Approaches to Reducing the 
Fuel Consumption of Medium- and Heavy-Duty Vehicles,'' (hereafter, 
``NAS Report''). Washington, DC, The National Academies Press. 
Available electronically from the National Academies Press Website 
at https://www.nap.edu/catalog.php?record_id=12845 (last accessed 
September 10, 2010).
---------------------------------------------------------------------------

    The NAS report is far reaching in its review of the technologies 
that are available and which may become available in the future to 
reduce fuel consumption from medium and heavy-duty vehicles. In 
presenting the full range of technical opportunities the report 
includes technologies which may not be available until 2020 or even 
further into the future. As such, the report provides not only a 
valuable list of off the shelf technologies from which the agencies 
have drawn in developing this near-term 2014-2018 program consistent 
with statutory authorities and with the set of principles set forth by 
the President, but the report also provides a road map the agencies can 
use as we look to develop future regulations for this sector. A review 
of the technologies in the NAS report makes clear that there are not 
only many technologies readily available today to achieve important 
reductions in fuel consumption, like the ones we used in developing the 
2014-2018 program, but there are also great opportunities for even 
larger reductions in the future through the development of advanced 
hybrid drive systems and sophisticated engine technologies such as 
Rankine waste heat recovery. The agencies will again make extensive use 
of this report when we move forward to develop the next phase of 
regulations for medium and heavy-duty vehicles.
    Allison Transmission commented that NHTSA (implicitly, both 
agencies) had improperly relied on the NAS report and failed to do 
sufficient independent analysis, which Allison claimed did not meet the 
statutory obligation to provide an adequate basis for the rule. First, 
an agency does not improperly delegate its authority or judgment merely 
by using work performed by outside parties as the factual basis for its 
decision making. See U.S. Telecom Ass'n v. FCC, 359 F.3d 554, 568 (DC 
Cir. 2004); United Steelworkers of Am. v. Marshall, 647 F.2d 1189, 
1216-17 (DC Cir. 1980). Here, although EPA and NHTSA carefully 
considered the NAS report, the agencies' consideration and use of the 
report was not uncritical and the agencies exercised reasonable 
independent judgment in developing the proposed and final rules. 
Consistent with EISA's direction, NAS submitted a report evaluating MD/
HD fuel economy standards to NHTSA in March of 2010.

[[Page 57113]]

Indeed, many commenters argued that the agencies should have adopted 
more of the NAS report recommendations. The agencies reviewed the 
findings and recommendations of the NAS report when developing the 
proposed rules, as was clearly intended by Congress, but also conducted 
an independent study, as described throughout the record to the 
proposal and summarized in Section X of the NPRM, 75 FR at 74351-56. In 
conducting its analysis of the NAS report, the agencies found that 
several key recommendations, such as the use of fuel efficiency 
metrics, were the best approach to implementing the new program. 
However, the agencies rejected other recommendations of the NAS report, 
for example, by proposing separate regulation of engines and vehicles 
and the regulation of large manufacturers.
(4) The NHTSA and EPA Light-Duty National GHG and Fuel Economy Program
    On May 7, 2010, EPA and NHTSA finalized the first-ever National 
Program for light-duty cars and trucks, which set GHG emissions and 
fuel economy standards for model years 2012-2016 (See 75 FR 25324). The 
agencies have used the light-duty National Program as a model for this 
final HD National Program in many respects. This is most apparent in 
the case of heavy-duty pickups and vans, which are very similar to the 
light-duty trucks addressed in the light-duty National Program both 
technologically as well as in terms of how they are manufactured (i.e., 
the same company often makes both the vehicle and the engine). For 
these vehicles, there are close parallels to the light-duty program in 
how the agencies have developed our respective final standards and 
compliance structures, although, as discussed below, the technologies 
applied to light-duty trucks are not invariably applicable to heavy-
duty pickups and vans at the same penetration rates in the lead time 
afforded in this heavy-duty action. Another difference is that each 
agency adopts standards based on attributes other than vehicle 
footprint, as discussed below.
    Due to the diversity of the remaining HD vehicles, there are fewer 
parallels with the structure of the light-duty program. However, the 
agencies have maintained the same collaboration and coordination that 
characterized the development of the light-duty program. Most notably, 
as with the light-duty program, manufacturers will be able to design 
and build vehicles to meet a closely coordinated, harmonized national 
program, and avoid unnecessarily duplicative testing and compliance 
burdens.
(5) EPA's SmartWay Program
    EPA's voluntary SmartWay Transport Partnership program encourages 
shipping and trucking companies to take actions that reduce fuel 
consumption and CO2 by working with the shipping community 
and the freight sector to identify low carbon strategies and 
technologies, and by providing technical information, financial 
incentives, and partner recognition to accelerate the adoption of these 
strategies. Through the SmartWay program, EPA has worked closely with 
truck manufacturers and truck fleets to develop test procedures to 
evaluate vehicle and component performance in reducing fuel consumption 
and has conducted testing and has established test programs to verify 
technologies that can achieve these reductions. Over the last six 
years, EPA has developed hands-on experience testing the largest heavy-
duty trucks and evaluating improvements in tire and vehicle aerodynamic 
performance. In 2010, according to vehicle manufacturers, approximately 
five percent of new combination heavy-duty trucks will meet the 
SmartWay performance criteria demonstrating that they represent the 
pinnacle of current heavy-duty truck reductions in fuel consumption.
    In developing this HD National Program, the agencies have drawn 
from the SmartWay experience, as discussed in detail both in Sections 
II and III below (e.g., developing test procedures to evaluate trucks 
and truck components) but also in the RIA (estimating performance 
levels from the application of the best available technologies 
identified in the SmartWay program). These technologies provide part of 
the basis for the GHG emission and fuel consumption standards in this 
rulemaking for certain types of new heavy-duty Class 7 and 8 
combination tractors.
    In addition to identifying technologies, the SmartWay program 
includes operational approaches that truck fleet owners as well as 
individual drivers and their freight customers can incorporate, that 
the NHTSA and EPA believe will complement the final standards. These 
include such approaches as improved logistics and driver training, as 
discussed in the RIA. This approach is consistent with the one of the 
three alternative approaches that the NAS recommended be considered. 
The three approaches were raising fuel taxes, relaxing truck size and 
weight restrictions, and encouraging incentives to disseminate 
information to inform truck drivers about the relationship between 
driving behavior and fuel savings. Taxes and truck size and weight 
limits are mandated by public law; as such, these options are outside 
EPA's and NHTSA's authority to implement. However, complementary 
operational measures like driver training, which SmartWay does promote, 
can complement the final standards and also provide benefits for the 
existing truck fleet, furthering the public policy objectives of 
addressing energy security and climate change.
(6) Environment Canada
    The Government of Canada's Department of the Environment 
(Environment Canada) assisted EPA's development of this rulemaking by 
conducting emissions testing of heavy-duty vehicles at their test 
facilities to gather data on a range of possible test cycles, and to 
evaluate the impact of certain emissions reduction technologies. 
Environment Canada also facilitated the evaluation of heavy-duty 
vehicle aerodynamic properties at Canada's National Research Council 
wind tunnel, and during coastdown testing.
    We expect the technical collaboration with Environment Canada to 
continue as we implement testing and compliance verification procedures 
for this rulemaking. We may also begin to develop a knowledge base 
enabling improvement upon this regulatory framework for model years 
beyond 2018 (for example, improvements to the means of demonstrating 
compliance). We also expect to continue our collaboration with 
Environment Canada on compliance issues.
    Collaboration with Environment Canada is taking place under the 
Canada-U.S. Air Quality Committee.

C. Summary of the Final EPA and NHTSA HD National Program

    When EPA first addressed emissions from heavy-duty trucks in the 
1980s, it established standards for engines, based on the amount of 
work performed (grams of pollutant per unit of work, expressed as grams 
per brake horsepower-hour or g/bhp-hr).\22\ This

[[Page 57114]]

approach recognized the fact that engine characteristics are the 
dominant determinant of the types of emissions generated, and engine-
based technologies (including exhaust aftertreatment systems) need to 
be the focus for addressing those emissions. Vehicle-based 
technologies, in contrast, have less influence on overall truck 
emissions of the pollutants that EPA has regulated in the past. The 
engine testing approach also recognized