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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
                                             1
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.

                                                                                                          2
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.

                 Deliberative Material - Staff Draft - Do Not Cite or Quote   3
Los Angeles                   Beijing

U.S.-China Common Challenges
• Growing Car and Truck Fleets

• Urban Air Quality and CO2 Emissions

• Energy Security and Oil Consumption

                                           4
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.
     2010 GHG Inventory Totals – U.S.                petroleum-based fuel use.


                                                                       2010 Transportation Sector
                             Transportation                                             Marine Rail
                               (1838.6 Tg)                                               2.1% 2.3%Nonroad
                                 27.0%                                                              10.0%
                                                                         Light-Duty
                                                                           Trucks
    Other U.S.
                                                                           17.0%
     Sources                                                                                       Medium &
   (4778.9 Tg)                                                                                     Heavy-Duty
      70.1%                                           Non-
                                                 Transportation                                      Trucks
                                                     Mobile                                          19.7%
                                                   (204.3 Tg)          Passenger Cars
                                                      3.0%
                                                                           38.6%
                                                                                                  Aviation
                                                                                                    7.0%
                                                                                                Other
                                                                                                3.4% 5

                 2010 Data - Inventory of U.S. Greenhouse Gas Emissions and Sinks (EPA)
Conventional Pollutants from U.S. Transportation
                                         Projections for 2017
   NOX Emissions      VOC Emissions         PM2.5 Emissions




 NOX Mobile Source   VOC Mobile Source       PM2.5 Mobile Source
     Emissions          Emissions                 Emissions




                                                              6
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.                7
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.

                                                                                    9
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.



                                                                              10
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.
                                                                             11
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/




                                                              12

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US-China Clean Truck and Bus Summit 2012 Lessons

  • 1. 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 1
  • 2. 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. 2
  • 3. 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. Deliberative Material - Staff Draft - Do Not Cite or Quote 3
  • 4. Los Angeles Beijing U.S.-China Common Challenges • Growing Car and Truck Fleets • Urban Air Quality and CO2 Emissions • Energy Security and Oil Consumption 4
  • 5. 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. 2010 GHG Inventory Totals – U.S. petroleum-based fuel use. 2010 Transportation Sector Transportation Marine Rail (1838.6 Tg) 2.1% 2.3%Nonroad 27.0% 10.0% Light-Duty Trucks Other U.S. 17.0% Sources Medium & (4778.9 Tg) Heavy-Duty 70.1% Non- Transportation Trucks Mobile 19.7% (204.3 Tg) Passenger Cars 3.0% 38.6% Aviation 7.0% Other 3.4% 5 2010 Data - Inventory of U.S. Greenhouse Gas Emissions and Sinks (EPA)
  • 6. Conventional Pollutants from U.S. Transportation Projections for 2017 NOX Emissions VOC Emissions PM2.5 Emissions NOX Mobile Source VOC Mobile Source PM2.5 Mobile Source Emissions Emissions Emissions 6
  • 7. 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. 7
  • 8. 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
  • 9. 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. 9
  • 10. 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. 10
  • 11. 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. 11
  • 12. 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/ 12