DOT and EPA roll out new proposed large truck greenhouse gas and fuel efficiency standards

New regulatory standards proposed by the United States Department of Transportation and the Environmental Protection Agency late last week have a keen focus on reducing the carbon footprint of medium and heavy vehicles.

While lower oil and gas prices in recent months are clearly welcomed by supply chain stakeholders and the general economy, how long this era of low prices remains intact is not known. But one thing that has been known for more than a while is that truck efficiency can always be improved, especially considering the low MPG heavy-duty trucks deal with on a daily basis.

Specifically, the agencies noted that these standards could lower CO2 emissions by about 1 billion metric tons, cut fuel costs by about $170 billion, and reduce oil consumption by up to 1.8 billion barrels over the lifetime of vehicles sold under the program. What's more, they added that the total oil savings under this program would top a year's worth of U.S. OPEC imports.

“Once upon a time, to be pro-environment you had to be anti-big-vehicles. This rule will change that,” said U.S Transportation Secretary Anthony Foxx in a statement. “In fact, these efficiency standards are good for the environment – and the economy. When trucks use less fuel, shipping costs go down. It's good news all around.”

The proposed standards would cover model years 2021-2027, covering semi-trucks, large pickup trucks, and vans, as well as all types and sizes of buses and work trucks. DOT and EPA said the standards would achieve up to 24 percent lower CO2 emissions and fuel consumption than and equivalent 2018 model tractor that is based on the fully phased-in standards for the tractor alone in a tractor-trailer vehicle.

The proposed standards include
-being grounded in rigorous technical data and analysis;
-reflecting extensive outreach with industry and other stakeholders;
-reliance on cost-effective technologies to enhance fuel efficiency and reduce GHG emissions that are currently available or in development;
-not mandating use of specific technologies, instead establishing standards achievable through a range of technology options and allowing manufacturers to choose the ones best for their products and customers, including improved transmissions, engine combustion optimization, aerodynamic improvements, and low rolling resistance tires; and
-build upon fuel efficiency and GHG emissions standards already in place for model years 2014-2018 that will result in emissions reductions of 270 million metric tons and save vehicle owners more than $50 billion in fuel costs.

Environmental Defense Fund (EDF) Senior Manager, Supply Chain Logistics Jason Mathers said from a supply chain perspective, the top benefit for both shippers and carriers of these standards is reduced overall costs.

“We have done our own costs analysis for what a more stringent standard would save shippers, with a savings of 21 cents per mile with tractor-trailer trucks at about 10.7 MPG [which is an average for all types of tractor trailers and cab sizes],” he said. “What was really clear in the analysis was that shippers would stand to gain a significant reduction in fuel costs that would outpace small increases in equipment costs, specifically when a shipper sees it in a per-mile fee. The more you run, the more you will save, because with the more fuel you are burning, the equipment you are using is apt to do more.”

Looking ahead, a 60-day public comment period will commence following the issuance of the proposal in the Federal Register, with both EPA and DOT holding two public hearings and meet with stakeholders over the course of the comment period.

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