EPA releases Tier 3 Motor Vehicle Emissions and Fuels Standards

In Washington, EPA released the following statement:

EPA is finalizing the Tier 3 Motor Vehicle Emissions and Fuels Standards today.  This rule is designed to reduce air pollution from passenger cars and trucks.  Starting in 2017, Tier 3 sets new vehicle emissions standards and lowers the sulfur content of gasoline, considering the vehicle and its fuel as an integrated system.

Summary

EPA is finalizing the Tier 3 program largely as proposed. EPA received a large number and wide range of comments on the proposed rule, and the final Tier 3 program is based both on this extensive public input and updated analyses of the rule’s impacts.  EPA sought comment on the level of the per-gallon sulfur cap (which applies in addition to the annual average), and has decided to maintain the per-gallon caps at existing levels.  EPA is also finalizing an ethanol content of 10 percent (E10) for emissions test gasoline (as opposed to the proposed 15 percent ethanol (E15) test fuel).

Fuel Standards:

–  The Tier 3 gasoline sulfur standard will make emission control systems more effective for both existing and new vehicles, and will enable more stringent vehicle emissions standards.
–  Removing sulfur allows the vehicle’s catalyst to work more efficiently.
– Lower sulfur gasoline also facilitates the development of some lower-cost technologies to improve fuel economy and reduce greenhouse gas (GHG) emissions, which reduces gasoline consumption and saves consumers money.
–  The fuel sulfur standards include an averaging, banking, and trading (ABT) program that will allow refiners and importers to spread out their investments through an early credit program and rely on ongoing nationwide averaging to meet the sulfur standard.
–  EPA is also finalizing flexibilities such as the ability to carry over credits from Tier 2 to Tier 3 and hardship provisions for extenuating circumstances, as well as flexibility provisions for small businesses (small manufacturers of Tier 3 vehicles and small refiners), small volume manufacturers, and small volume refineries.

Vehicle Standards:

–  The Tier 3 vehicle standards reduce both tailpipe and evaporative emissions from passenger cars, light-duty trucks, medium-duty passenger vehicles, and some heavy-duty vehicles.
–  The tailpipe standards include different phase-in schedules that vary by vehicle class but generally phase in between model years 2017 and 2025.
–  In addition to the gradual phase-in schedules, other flexibilities include credits for early compliance and the ability to offset some higher-emitting vehicles with extra-clean models.

Overview of Projected Program Costs and Benefits:

Through the use of more recent and robust cost analysis, EPA estimates that the cost of the total Tier 3 program (vehicle and fuel standards) will be less than half of what we projected in the proposal.

—Less than a penny per gallon of gasoline
—About $72 per vehicle
—Annual cost of the overall program in 2030 is projected to be approximately $1.5 billion
—Annual monetized health benefits in 2030 between $6.7 and $19 billion

Advanced Biofuels USA commented:

“It’s not the greatest thing since sliced bread; but at least there’s dough in the machine,” said Advanced Biofuels USA’s vehicle emissions expert, Robert Kozak upon reviewing the Environmental Protection Agency’s Tier 3 vehicle emissions standards rules.

“We didn’t get everything that we wanted but two items are important,” he continued, “1) The new requirement that vehicles be tested and certified using E10 (10% ethanol blend that is standard fuel across the country); and 2) The opportunity for manufacturers to request approval of another new certification fuel such as high octane/high ethanol E30 (30% ethanol blend).”  The E30 would be used by vehicles optimized to use such a fuel with future rule-making on the details.

“We have to begin working with EPA immediately to make this future rule-making happen, and to work on the practical aspects of bringing E30 optimized vehicles, E30 retail fuel delivery infrastructure and high octane/high ethanol fuels to customers,” added Advanced Biofuels USA executive director, Joanne Ivancic.  “In two years E30 has gone from a concept to a reality.  It’s in the final rule; a mechanism has been created for its implementation.  Now the hard work of making that reality available in the markets begins.”

These new federal rules mean that new vehicles will be tested using fuels used by real people in real cars.  It also means the US is moving toward less pollution, more use of domestically produced renewables, less reliance on fossil fuels and less reliance on imported fuel.

For More Information

You can access the final rule, regulations and related documents on EPA’s Office of Transportation and Air Quality Web site here.