# Pr oposed Phase 2 Fuel Ef ficiency and GHG Emission St andar ds for Hea vy - Duty Ve hicles APRIL 07, 2015

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# Ov er view
 Phase 1 s ta ndar ds beg an in 2014 – fully phased - in by 2018  Pr oposing mor e ambitious and longer - te rm Phase 2 s ta ndar ds  Ve ry c os t - effective  Builds upon Phase 1 s tructur e  NPRM in vit es commen t on both pr oposed s ta ndar ds and alt ernative s ta ndar ds that achieve 2027 s tringency levels in 2024/2025  Other issues including natur al g as and small businesses

BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW. 2BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW. 3 **Heavy -**  **Duty Lar** **ge Pickups & V**  **ans 14% of HD Fuel Consumption**  **and GHG Inventory**

**Standards in g/mile**  **and gallons/100**  **miles Vo**  **cational V**

**ehicles 21% of HD Fuel Consumption**  **and GHG Inventory**

**Standards in g/ton**  **- mile**  **and gallons/1000**  **ton -**  **miles Line**  **- Haul**  **Tr actor**  **s**

**65% of HD Fuel Consumption and GHG Inventory (together)** 

**Standards in g/ton**  **- mile**  **and gallons/1000**  **ton -**  **miles** 

# Hea vy - Duty Tr uck Ca te go ries

**Line -**  **Haul Tr** **ailer s**  (currently unregulated Federally)4 60% 

# 20% 9% 3% 2% 6% Light-Duty Vehicles Heavy-Duty Trucks and Buses Aircraft Ships and Boats Rail Other (Motorcycles, Pipelines, Lubricants) **Heavy -**  **Duty** 

# U. S. Tra nsport at ion Sect or Energy Use

Source: U. S. Energy Information Administration Annual Energy Outlook 2014 

#  Hea vy - duty ve hicles re sponsible fo r about one fifth of the ener gy use and GHG emissions fr om tr ansport ation sour ces  In t erms of ener gy use, hea vy - duty ve hicles ar e also the fas te st gr owing tr ansport ation sect or in the U. S. and globally

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# Ke y Dif

fe re nces fr om Ligh t - Duty Vehicles

 Hea vy - duty v ehicles used almost e xc lusiv ely fo r c ommer cial use  Tr ansporting fr eight is the mos t significant hea vy - duty application category with respect to fuel consumption and GHG emissions 

#  Hea vy - duty v ehicles ar e mor e e xpensiv e  Man y cost more than $100,000  Up to $500,000 fo r specialty v ehicles 

#  Dif fe re nt m anufactur er s fo r most hea vy - duty vehicles  Some light - duty manufactur er s also mak e hea vy - duty pick ups and v ans  One hea vy - duty manufactur er mak es only engines 

#  Most hea vy - duty vehicles ar e built to custom specifications  Few are sold as a s tandard configur at ion off of a dealer ’s l ot

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# Phase 1 Highligh ts

 Phase 1 standar ds beg an in 2014  Fully phased - in by 2018  Manufacturers expected to comply primarily with “ off- the - shelf ” technologies  Ve ry cost - effective technologies lead to fuel - savings greater than the technology cost 

###  Phase 1 progr am for hea vy - duty pickups and vans is similar to light - duty progr am  Ve hicle certification based on testing complete vehicle 

###  Phase 1 progr am for other hea vy - duty vehicles include:  Engine certification based on EP A’ s e xisting criteria pollutant test procedures  Computer simulation certification of vehicle performance (without engine, tr ansmission and axle) – instead of actual vehicle testing 

###  Computer simulation is used to certify hea vy - duty vehicle performance because:  Heavy - duty vehicle siz e mak es complete vehicle testing more difficult and e xpensive  Custom - build aspect of heavy - duty mark et means thousands of different vehicle configur ations – too many to actually test  Ve hicle simulation brings together the results from a smaller number of vehicle component tests (tires, aerodynamics, etc.)

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# Ea rly Input fr om the Mark et for Phase 1

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## “ 

# Class 8 R **egistr ations Rise in 2014 t**  **o Highest Level in Eigh t Y**  **ear s**  ” Tr ansport T

opics, 2/20/15



## “ **Daimler e xpects to sell mor**  **e than 500,000 trucks this year [2015],**  **mainly thanks to**  **gr owing demand in the United Sta**  **tes** , trucks chief W olf ga ng Bernhar d said ...” Reuters, 2/23/2015 

## “.... consultancy FTR said tha t North American hea vy - duty truck "net or der s" — the number of new order s minus or der cancellations — hit 45,795 units in **October [2014] ,**  **the second -**  **highest month of or**  **der s ever**  **re cor**  **ded** . Added incentiv es t o buy now , accor ding to Larkin, include the soaring r esale v alue of used trucks with thr ee t o four year s of r oad time and the superior fuel efficiency of the newer engines , which can get as much as nine miles per g allon.” DC Velocity, 11/21/2014 BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.

# Pr oposed Phase 2 P ro gr am

 Pr oposed Phase 2 s tandards would begin:  In 2018 for EP

A tr ailer standar ds, which wer e not regulated in Phase 1  In 2021 for NHTSA tr ailer standar ds, and all other categories (EISA requir es NHTSA to issue standar ds with 4 y ears lead time) 

##  Standards would be fully phased in by 2027  Pr oposed sta ndar ds’ levels ar e based on:  Nearly full use of most Phase 1 technologies – with additional optimiz ation  Significant use of emerging and adv anced technologies by 2027


##  Also 

## pr oposing impr ovements to computer simulation compliance pr ocedur es to better reflect new technologies, and inclusion of the engine and tr ansmission in the v ehicle s tandards

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# Phase 2 P ro posed Fle xibilities **Tr ailer**  **s** One y ear delay in implementation for small businesses. Tr ailer manufactur er s ma y use pr e - appr oved devices to avoid testing Aver aging pr ogr am for manufactur er s of dry and r efriger ated bo x tr ailer s **F le**  **xibilities Carried**  **Over fr**  **om Phase 1 f** **or T ra**  **ctor s,**  **Vo cational V** 

**ehicles and HD**  **Pick ups**  **& V**

**ans** AB T pr ogr am which allows emissions and fuel consumption cr edits to be aver aged, bank ed, or

tr aded (five y ear cr edit life). Manufactur er s allowed to carry - fo rwar d cr edit deficits for up to thr ee model y ear s. Re cognition of off - cycle technologies not accounted for by test pr ocedur es. **Tr actor**  **s** Same as Phase 1, e xc ept no e xtr a cr edits for adv anced technologies. **Vo cational V** 

**ehicles** Same as Phase 1, e xc ept no adv anced technology incentives.

Chassis intended for emergency vehicles have pr oposed Phase 2 standar ds based only on Phase 1 technologies, and may continue to certify using a simplified Phase 1 - style GEM tool. **HD Pick -**  **ups and V**

**ans** Stringency incr eases on y ear - over - year basis.

No e xtr a cr edits for adv anced technologies. Adjustment factor of 1.25 pr oposed fo r cr edits carried forwar d fr om Phase 1 to Phase 2 to account for pr oposed change in useful life. **Engines in T ra**  **ctor s and**  **Vo cational V** 

**ehicles** Same as Phase 1, e xc ept no adv anced technology incentives.

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# Pr oject ed Re ductions

**2027 CO2/Fuel**  **Consumption Reductions**  (per new vehicle) 

# Tr **act or**  **s** (includes engine r eductions) 

## 18 - 24% 

# Tr **ailer s**  7 - 8% 

# Vo **cational Ve**  **hicles** (includes engine r eductions) 

## 12 - 16% 

# Pick **- ups & V** 

**ans** 16% 

#  Te chnology - adv ancing s ta ndar ds that phase in thr ough model year (MY) 2027  St andar ds set in earlier MY s to ensure steady pr ogr ess toward 2027 sta ndar ds

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# Summar y* of Phase 2 P ro posal GHG and Fuel Re ductions, Cos ts and Bene fits

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## Pr **oposed Phase 2**  **MY 2018 -**  **2029 (in**  **addition to**  **Phase 1)*** **Phase 1 MY 2014**  **- 2018**  **Fuel re**  **ductions (Billion**  **Gallons)** 70 - 77 22 **GHG r eductions**  **( MMT CO**  **2** 

## eq) 932 - 1036 270 Billions of 2012$ Billions of 2012$ 

## Ve **hicle costs**  - $25 - $8 **Fuel sa**  **vings (pr**  **e -**  **tax )**  $159 - 175 $50 **GHG , non**  **- GHG & other benefits**  $58 - 61 $10 **Net benefits** $192 - 211 $52 * Values shown in this table are representative values for 3% discount rate Preamble and Draft R egulatory Impact Analysis present a range of estimates of costs and benefits to reflect different baselin es, discount rates, and analytical methods . BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.

# Pe r Vehicle Cos ts

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### Pr **oject ed**  **Av er**  **ag e**  **Cost Incr ease**  **fo r**  **MY 2027 V**

**ehicle (Relative**  **to 2018 vehicles) Tr** **actor s**  

## $ 11,700 <12% cost increase **Tr ailer**  **s** 

## $ 1,200 <5% cost increase **Vo cational**  **Ve hicles**  

## $ 3,400 <5% cost increase **Pick -**  **ups/V**

**ans** 

## $ 1,300 <3% cost increase 

### Pe **r V ehicle**  **Cost and % Incr**  **ease in T ypical V**  **ehicle Price** *

*Assumed vehicle prices: $100,000+ for tractors, $ 25,000+ for trailers, $ 70,000+ for vocational vehicles and $ 40,000+ for HD pickups/vans 

#  Cos t incr ease shown r epr esen ts average 2027 v ehicle vs. average Phase 1 vehicle  Bec ause s ta ndards ar e essen tially fleet ave ra ge s ta ndards, vehicle mark et wo uld still include a wide r ang e of t echnology levels and c os t impacts  Phase - in standards for 2021 and 2024 wo uld lead t o gr adual in tr oduction of new te chnology and gr adual increase in c os ts 

#  Cos ts shown include engine cos ts

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# Ve hicle Pay back for P ro posed St andar ds

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### Tr actor s/Tra iler s 2 nd 

### ye ar Vo cational Vehicles 6 th 

### ye ar Pick - ups/Vans 3 rd 

### ye ar **Pay back Period**  **fo r MY 2027 V**  **ehicles** 

#  Fa vor able pa yback s  Purchaser s will gener ally get what they pa y for – bigger fuel sa vings for pur chaser s opting fo r more technology  Customers that finance vehicles ma y see immediate pa yback where monthly fuel sa vings exc eed increase in monthly pa yment  Ve ry quick pa ybacks fo r tr actors, pick - ups and va ns 

#  Vo cational Vehicles  Pay backs longer because of fewer miles tr avelled each y ear  But vocational owner s ke ep trucks longer – typically more accepting of longer pa yback periods

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# Annual GHG R eductions, Phase 1 and Phase 2 P ro posal

14 600 700 800 900 1,000 1,100 1,200

2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050GHG(MMTCO2eq)

Pre-Phase 1 Phase 1 Phase 2 - the Proposal 

### Phase 1 Re duction Phase 2 Proposal Re duction

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# Annual Fuel R eductions fo r the Phase 2 P ro posal*

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### Phase 2 Proposal Re duction

30 35 40 45 50 55 60 65 70 75

2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050BillionGallons(dieselequivalent)

Phase 1 Rule Phase 2 Proposal * Based on the dynamic baseline and Method A

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# Alt erna tiv e Phase
- In Schedule Tha t W ould Achiev e Gr ea te r R eductions Sooner (Alt erna tiv e 4)

 NPRM ex te nsively highligh ts fo r c ommen t an alt ernative phase - in of the pr oposed sta ndar ds, two to thr ee y ear s earlier  The agencies emphasiz e that if additional information becomes a va ilable supporting the alt ernative phase - in, the agencies ma y finaliz e some or all aspects of the alt ernative s ta ndar ds  These alt ernative s ta ndar ds would achiev e significan t additional fuel consumption and GHG r eductions, with associat ed incr emen ta l cos ts, shown on the ne xt slides

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# Summar y* of Alt erna tiv e Phase
- In Schedule GHG and Fuel R eductions, Cos ts and Bene fits

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## Pr oposed Phase 2 MY 2018 - 2029 Alternative 4

MY 2018 - 2029 **Fuel re**  **ductions (Billion**  **Gallons)** 70 - 77 80 - 87 **GHG r eductions**  **( MMT CO**  **2** 

## eq) 932 - 1036 1056 - 1163 Billions of 2012$ Billions of 2012$ 

## Ve **hicle costs**  - $25 - $33 **Fuel sa**  **vings (pr**  **e -**  **tax )**  $159 - 175 $181 - 198 **GHG , non**  **- GHG & other benefits**  $58 - 61 $63 - 67 **Net benefits** $192 - 211 $211 - 232 * Values shown in this table are representative values for 3% discount rate Preamble and Draft R egulatory Impact Analysis present a range of estimates of costs and benefits to reflect different baselin es, discount rates, and analytical methods . BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.

# Alt erna tiv e Phase
- In Schedule: Pe r Ve hicle Cos ts and Vehicle Pay back

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## Av **er age**  **Incr emental**  **Pe r V**  **ehicle Cost ($) Pr**  **oposed**

in MY2027 **Alterna tiv**  **e 4**

in MY2024/25 * **Tr actors**  $ 11,700 $12,400 **Tr ailer**  **s** $ 1,170 $1,230 **Vo cational**  $ 3,400 $3,600 **Pick ups/V** 

**ans** $ 1,300 $1,700 **Pay back P**  **eriod Pr**  **oposed** in MY2027 **Alterna tiv**  **e 4**

in MY2024/25 **Tr actors/T** **ra iler**  **s** 2 nd 

### ye ar 2 nd 

### ye ar 

## Vo **cational** 6 th 

### ye ar 6 th 

### ye ar 

## Pick **ups/V**

**ans** 3 rd 

### ye ar 4 th 

### ye ar 

## Av **er age**  **Incr emental P**  **er V ehicle Cost ($)**  **Pay back P**  **eriod**

* The a ver age incremental vehicle cost for Alternativ e 4 in MY 2027 would be more similar to the proposed alterna tive in MY 2027. BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.

# Other Issues

 Tr eatment of natur al ga s fueled vehicles (see Section XI of Preamble )
 Natural ga s is a low - carbon and domestic fuel that has potential for increased use in heavy - duty vehicles  High global warming potential of methane creates some risk of adverse climate consequences  Largely proposing to maintain the neutr al Phase 1 appr oach  EP A is also pr oposing to require additional on - vehicle evaporative and refueling controls


###  Re gulatory technical amendments (see Sections XIII and XIV of Preamble )

 EP A and NHTSA are proposing minor technical amendments to motor vehicle programs – including minor clarifications to Phase 1 reg ulations
 EP A is also pr oposing minor technical amendments to nonr oad engine regulations
 NHTSA is proposing to amend it ’s r eporting requirements for light - duty corporate average fuel economy to require only one electr onic submission for pre - model, mid - model and supplemental reports


###  Small business impacts (see Section XV of Preamble )

 Affected small businesses include trailer manufacturers, alternative fuel converters, and specialty vehicle manufacturers  Agencies proposing flexibility consistent with SBREFA Panel report

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# Appendix

20 BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.21 **Phase 1 Progr am**  **Alternative 3**  **- 2027**  **(proposed standard) Alternative**  **4 –**  **2024 (also under**  **consider ation)**  **Covered in this category**  Tr actors that are designed to pull tr ailers and move freight. **Share of HD V fuel**  **consumption and GHG**  **emissions** Combination tractors and their engines account for approximately two thirds of fuel use and GHG emissions in the medium and hea vy duty truck sector . **Pe r vehicle**  **fuel consumption and CO**  **2 improvement**  10% - 23% improvement over MY 2010 baseline, depending on tractor category . Improvements are in addition to improvements from engine standards. 18% - 24% improvement over MY 2017 standards **Form of the standard** EP A: CO 2 grams/ton payload mile and NHTSA: ga llons of fuel/1,000 ton pa yload mile **Example technology**  **options avai**  **lable to**  **help manuf** **acturers meet**  **standards** Aerodynamic drag improvements; low rolling resistance tires; high strength steel and aluminum weight reduction; extended idle reduction; and speed limiters Further technology improvements and increased use of all Phase 1 technologies, plus engine improvements, improved and automated transmissions and axles, powertrain optimization, tire inflation systems, and predictive cruise control (depending on tr actor type) **Fle xibilities**  ABT pr ogram which allows emissions and fuel consumption credits to be averaged, bank ed, or traded (five year credit life). Manufacturers allowed to carry fo rw ard credit deficits fo r up to three model years. Interim incentives fo r adv anced technologies, recognition of innovative (off- cycle) technologies not accounted for by the HD Phase 1 test procedures, and credits for certifying early . Same as Phase 1, e xc ept no e xtra credits for adv anced technologies. 

# Summary of Phase 1 and Pr oposed Phase 2 R equir ements for Class 7 and Class 8 Combina tion Tra ctor s

BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.22 

# Summary of Phase 1 and Pr oposed Phase 2 R equir ements for Tr ailer s **Phase 1 Progr am**  **Alternative 3**  **- 2027 (proposed standard)**  **Alternative 4**  **– 2024 (also under**  **consider ation)**  **Covered in this category**  Tr ailers hauled by low , mid, and high r oof da y and sleeper cab tractors, except those qualified as logging, mining, stationary or heavy - haul. **Share of HD V fuel**  **consumption and GHG**  **emissions** Tr ailers are modeled together with combination tractors and their engines. T ogether , they account for approximately two thirds of fuel use and GHG emissions in the medium and hea vy duty truck sector . **Pe r vehicle**  **fuel consumption and CO**  **2 improvement**  N/ A Between 3% and 8% improvement over MY 2017 baseline, depending on the trailer

type. **Form of the standard** N/ A EP

A: CO 2 grams/ton payload mile and NHTSA: g allons /1,000 ton payload mile **Example technology**  **options avai**  **lable to**  **help manuf** **acturers meet**  **standards** N/ A Low rolling resistance tires, automatic tire inflation systems, weight reduction for most

trailers, aerodynamic improvements such as side and rear fairings, g ap closing devices, and under carriage treatment fo r bo x - type trailers (e.g., dry and refrigerated vans) **Fle xibilities**  N/ A One year delay in implementation fo r small businesses, trailer manufacturers may use

pre - approved devices to avoid testing, averaging program for manufacturers of dry and refrigerated box trailers BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.23 

# Summary of Phase 1 and Pr oposed Phase 2 R equir ements for V ocational Vehicles **Phase 1 Progr am**  **Alternative 3**  **- 2027 (proposed**  **standard) Alternative**  **4 –**  **2024 (also under**  **consider ation)**  **Covered in this category**  Class 2b – 8 chassis that are intended for vocational services such as delivery vehicles, emergency vehicles, dump truck, tow trucks, cement mix er , refuse trucks, etc., except those qualified as off- highway vehicles. Because of sector diversity , vocational vehicle chassis are segmented into Light, Medium and Hea vy Duty vehicle categories and for Phase 2 each of these segments are further subdivided using three duty cycles: Regional, Multi purpose, and Urban. **Share of HD V fuel**  **consumption and GHG**  **emissions** Vo cational vehicles account fo r approximately 20 percent of fuel use and GHG emissions in the medium and hea vy duty truck sector categories **Pe r vehicle**  **fuel consumption and CO**  **2 improvement**  2% improvement over MY 2010 baseline. Improvements are in addition to improvements from engine standards. Up to 16% improvement over MY 2017 standards **Form of the standard** EP A: CO 2 grams/ton payload mile and NHTSA: ga llons of fuel/1,000 ton pa yload mile **Example technology**  **options avai**  **lable to**  **help manuf** **acturers meet**  **standards** Low rolling resistance tires Further technology improvements and increased use of Phase 1 technologies, plus improved engines, transmissions and axles, powertrain optimization, weight reduction, hybrids, and work day idle reduction s ystems. **Fle xibilities**  ABT pr ogram which allows emissions and fuel consumption credits to be averaged, bank ed, or traded (five year credit life). Manufacturers allowed to carry - fo rw ard credit deficits for up to three model years. Interim incentives for adv anced technologies, recognition of innovative (off - cycle) technologies not accounted fo r by the HD Phase 1 test procedures, and credits for certifying early . Same as Phase 1, e xc ept no adv anced technology incentives. Chassis intended fo r emergency vehicles have proposed Phase 2 standards based only on Phase 1 technologies, and ma y continue to certify using a simplified Phase 1 - style GEM tool. BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.24 

# Summary of Phase 1 and Pr oposed Phase 2 R equir ements for HD Pick
- up Truck s and Vans **Phase 1 Progr am**  **Alternative 3**  **- 2027**  **(proposed standard) Alternative**  **4 –**  **2025 (also under**  **consider ation)**  **Covered in this category**  Class 2b and 3 complete pickup trucks and v ans, including all work v ans and 15 - passenger va ns but e xc luding 12 - passenger va ns which are subject to light - duty standards. **Share of HD V fuel consumption**  **and GHG emissions** HD pickups and v ans account for approximately 15% of fuel use and GHG emissions in the medium and hea vy duty truck sector . **Pe r vehicle**  **fuel consumption and CO**  **2 improvement**  15% improvement over MY 2010 baseline fo r diesel vehicles, and 10% improvement fo r g asoline vehicles 16% improvement over MY 2018 - 2020 standards **Form of the standard** Phase 1 standards are based upon a “work factor ” at tribute that combines truck payload and towing capabilities, with an added adjustment fo r 4 - wheel drive vehicles. There are separate target curves for diesel - powered and g asoline - powered vehicles. As proposed, the Phase 2 standards would be based on the same approach. **Example technology**  **options avai**  **lable to**  **help manuf acturers**  **meet standards**  Engine improvements, transmission improvements, aerodynamic drag improvements, low rolling resistance tires, weight reduction, and improved accessories. Further technology improvements and increased use of all Phase 1 technologies, plus engine stop - start, and powertrain hybridization (mild and strong). **Fle xibilities**  Tw o optional phase - in schedules; ABT pr ogram which allows emissions and fuel consumption credits to be averaged, bank ed, or traded (five year credit life). Manufacturers allowed to carry - fo rw ard credit deficits for up to three model years. Interim incentives fo r adv anced technologies, recognition of innovative (off- cycle) technologies not accounted for by the HD Phase 1 test procedures, and credits fo r certifying early . Proposed to be same as Phase 1, with phase - in schedule based on year - over - year increase in stringency . Adjustment fa ctor of 1.25 proposed fo r credits carried fo rw ard from Phase 1 to Phase 2 due to pr oposed change in useful life. Pr oposed cessation of adv anced technology incentives in 2021 and continuation of off - cycle credits. BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.25 

# Summary of Phase 1 and Pr oposed Phase 2 R equir ements for Engines in Tra ctor s and V ocational Vehicles **Phase 1 Progr am**  **Alternative 3**  **- 2027 (proposed**  **standard) Alternative**  **4 –**  **2024 (also under consider**  **ation) Covered**  **in this category** Engines installed in tractors and vocational chassis. **Share of HD V fuel consumption**  **and GHG emissions** Combination tractors and vocational vehicles account for approximately 85 percent of fuel use and GHG emissions in the medium and hea vy duty truck sector . **Pe r vehicle**  **fuel consumption and CO**  **2 improvement**  5% - 9% improvement over MY 2010 baseline, depending vehicle application. Improvements are in addition to improvements from tractor and vocational vehicle standards. 4% improvement over MY 2017 for diesel engines. Note that improvements are captured in complete vehicle tractor and vocational vehicle standards, so that engine improvements and the vehicle improvement shown below are not additive. **Form of the standard** EP A: CO 2 grams/horsepower - hour and NHTSA: ga llons of fuel/horsepower - hour **Example technology**  **options avai**  **lable to**  **help manuf** **acturers meet**  **standards** Combustion, air handling, friction and emissions after - treatment technology improvements Further technology improvements and increased use of all Phase 1 technologies, plus waste heat recovery s ystems fo r tractor engines (e.g., turbo - compound and Rankine - cycle) **Fle xibilities**  ABT pr ogram which allows emissions and fuel consumption credits to be averaged, bank ed, or traded (five year credit life). Manufacturers allowed to carry - fo rw ard credit deficits fo r up to three model years. Interim incentives fo r adv anced technologies, recognition of innovative (off- cycle) technologies not accounted for by the HD Phase 1 test procedures, and credits for certifying early . Same as Phase 1, e xc ept no adv anced technology incentives.

BRIEFING FOR EO 12866 REVIEW. SUBJE CT TO FURTHER POLICY REVIEW.