International Council on Clean Transportation Testimony on Proposed Phase 2 Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles August18 , 2015 Long Beach , California Good morning. Thank you for the opportunity to provide remarks on this very important rulemaking . I ' m Ben Sharpe , with the International Council on Clean Transportation. We are a researcl1 organization that is focused on providing technical information to support government decisionmaking on policies , like these Phase 2 regulations , for leading vehicle markets around the globe . I ' ll make brief comments for the ICCT about market conditions, the maximum feasible technology and its timing , and international implications related to the proposed rules . First, market conditions in the US freight trucking industry are preventing the uptake o f available cost-effective efficiency technologies. There a re substantial market barriers that impede the uptake of efficiency techno logy' 2 , and this regulation would solve such problems. Regarding the agencies' a n a l ys i s on ava il a ble a nd e m ergin g e fficienc y t ec hn ol ogie s , we continue to be very grateful for the extensive i nformation sharing and dedicated time from EPA and NHTSA staff. The agencies' work ethic, transparency, and public process are exemplary. The agencies have undoubtedly made a rule based on rigorous, state-of-the-art technology inputs from sound data and industry input. Based on severa l new t echnical ICCT research studies , I will make brief remarks on the timing of the technology deployment , as well as on full technology potential, especially in the engine area. In the agencies' analysis, the rule is largely predicated on well-understood, highly cost-effective technologies 3

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. T l1e techno logies in the eng i ne, powertrain, aerodynam i cs, and tire areas are exactly the ones that suppliers and vehicle manufacturers have been discussing for the rules' timeframe 5

. The trailer technologies embrace the emerging techn ologies that have already been spurred by EPA 's SmartWay program and California 's in-use regulat ion 6

. Due to the agencies ' decisions to rely primarily on proven, avai l able, and cost-effective technology choices, the agencies can sh1ft the standards 3 years earlier- from 2027 as proposed, forward to 2024. This wou l d still

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**COI:'I.S•'ICHlC~** c. I1C/e.p11 5030 142151200!>P3X Ro eth et a t t 20 13). Barrrers to the met eased adoptiOn of fuel etfJCtcnq' tec/Jnologres rn 1t1e NoT th Amertcan on-Toad ftf!rgh t f.vclor http. 1\ Wl\". /heicct otg!lldv-tcc:hnofog}·-m,1fket·bamers-north .,,merrca. M<'Sz/er e t a/ (2015) Cos t effectiveness of ad1'anced efftciency technologies follong-haultractor - ttallers rn the 20:?0 - 2030 111nefta me. http 1/ \\ii\W theicct ory ·us tractor-trailer-tecil -cost-effccltvenC'ss $/Jarj>e el a/ (20 14 I Beneftt-cost anaf1·srs of mtugtalmp t1aile:rs rnlo heavy -duty n>/JtCic efftciency regula lion http 11 1• 11 1 ''- cct otg mtegrat ng -IT/! t 'e's-hdl · -regu t .1/ton -beneftf - cost -, 1natys i s July . l. "'" ·' Pf c •• t2D l '' St r. "\£./·J .... )f'/ tH

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lillf)t' anci Rr,e!/1 (2014) . Costs c lnd adoptiOn I <lit'S of fue/ -Sa\'1/lg /{ cilnologies for /railetS in lilt N o t til Amencan on-roa d tr <-'ig!J t sector llttp. I '\\'\\W . thercct.org r.osts - and-arior>tron -rates-ftlel-sdvmg-traller -technolog1es. Feorttary.allow suffic i ent lead-t i me for the m a nufact u rers and truck buyers to gradually i n corporate the bu l k o f all the tech n ologies i nto t11eir ope rat io n s 

### ove r t1 1e next nine years. We have no ti ce d se vera l a rea s w he re t he age n c i es do n o t full y i n corpo ra te m a ximum feasib l e tec h nolo gy l evels. O ne a rea is i n e ng ines , w h e r e the agen cies proposed to reduce t he tract o r d i esel engine fuel use by 4°{, from 2017 to 20 27 . Available tec h n o l o gie s with payback peri o ds comfortably less than 2 years can red uce n ew diesel tractor engine fuel u s e flee t -wide by up to 10% from 2017 to 2027. based o n o u r ow n technic a l analysis and the research literature 789 10

. With high e r technology p enetration rates for U S DOE S uper T ruck technologies , the standard s could go further ye t 71

. I n add i tion, the proposed he avy -d u ty p ickup a n d v an , as well as gaso l ine eff i ci e ncy , s tanda rds appear t o fall signific antly s hort in their promoti o n of th e f u ll technol o gy po t e ntia l 12 7 3

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**inc r~o**  **ing** someth i ng closer to the maximum feasible technology potentia l and advancing the timing of the ru l e - th e re is a l ot at stake . B as ed on our ana lysis , increme nt a ll y ad vanci n g the timing and modestly increas in g the eff i ci e n cy te ch nology could re sul t i n 30 % greater c l imat e b ene f i ts a nd over 300 , 000 barrels worth of o il s av ings p er day by 2040 . Making s u c h c hang es wo ul d be equivalent to taking 1 3 m i lli on 30- mil e-p er-gallo n c ars off th e road. 14 F i nally , this ru l emaking is key in establishing the US as a glob a l leader on fr e ight truck effic i en cy . The governmen ts of Canada, C hina , Eu rope, I nd i a , Japan, Me x ico , and oth e rs a re al so considering their ne xt policy actions to simi l arly ensure g reater effic i ency technology deployment for trucks 75 • 7

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. The world is wa t ching , and potentially looking to adopt , s i mi l ar policy. We p ro vi de references to the leading technical rese arc h that supports t hese statements , a nd w e w i ll , of course , elaborat e o n the points and subm i t all th e new analysi s i n our detai l ed c om ments to the docket. Again, we thank th e agencies fo r th ei r exemp l a ry pub l ic service . T/1iruvengadam eta/ (201-4) Heavy-duty ve/ 1 i c /e diesel ongme efltctency e 1 'alua t ion and energy audtt . h tt

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