As the world acknowledges the urgency of reducing total global greenhouse gas (GHG) emissions, governments and regulatory agencies are moving toward the adoption of programs, polices and rules to achieve required reductions. Emissions from transportation sources have been identified as the second largest source of emissions in North America. Heavy duty trucks are known to make up a large percentage of emissions from this sector and as a response to managing this issue, the US Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) have released the second of two comprehensive regulations to govern the emissions from medium and heavy duty vehicles in the United States.
Better known as the Phase 2 GHG and Fuel Efficiency Regulation, the new rule is designed to provide more stringent standards than were established in the Phase 1 Rules (2014-2018) to increase fuel efficiency and GHG emissions from medium and heavy-duty vehicles and trailers. The rule sets performance based standards for meeting emissions and fuel efficiency requirements that allow multiple technology approaches [1] for vehicles from heavy duty pick-up trucks, delivery trucks, refuse vehicles all the way to heavy duty tractor trailers. The rule was developed over 2 years of industry and stakeholder consultations and finalized in August of 2016.
What does this mean for fleets?
The new Phase 2 rule applies to trailers in 2018 and engines and vehicles and trailers for model years 2021-2027. According to the EPA, the new rules will require vehicles in the medium and heavy duty classes to reduce GHG emissions in the range of 20-30% or approximately by 1.1 billion tonnes of carbon dioxide, result in $170 billion in fuel cost savings and reduce oil consumption by 2 billion barrels [2]. The effort is estimated to cost between $19 and $31 billion dollars over the regulatory period ending in 2027.
What does this mean for OEMs?
To meet these standards diesel OEMs will have to invest in aerodynamics, and new technologies such as waste heat recovery systems, turbo compounding, improvements to exhaust gas recirculation, combustion and fuel injection systems [3]. It is expected that these management strategies will add some additional costs to diesel vehicles. For heavy duty tractors the additional costs are estimated at between $10,000 and $13,700 [4].
What does this mean for Westport Fuel Systems?
The rule also governs natural gas powered vehicles. The good news is that many of the commercially available medium and heavy duty natural gas vehicles already meet the Phase 2 Standards for carbon dioxide and methane emissions. Next generation natural gas engines, such as Westport ™ HPDI and Ultra Low NOx engines offered by Cummins Westport are already in development with improvements that will meet or exceed the Phase 2 Standards.
The inherent lower carbon properties of natural gas make natural gas vehicles an attractive alternative to their diesel counterparts, especially in the heavier vehicle categories. Because many of the available engines already meet the standards, the rule leaves natural gas engines well positioned as a cost effective compliance solution. While this rule has been developed for the United States, it is expected that Environment and Climate Change Canada will also adopt the rules as it has with the Phase 1 Rules in an effort to harmonize standards between the United States and Canada.
[1]EPA and NHSTA adopt standards to reduce greenhouse gas emissions and improve fuel efficiency of medium and heavy duty vehicles for model year 2018 and beyond.” WPA, WPA-420-F-16-044, August 2016. https://www3epa.gov/otaq/climate/documents/420f16044.pdf
[2] EPA and
NHSTA adopt standards to reduce greenhouse gas emissions
and improve fuel efficiency of medium and heavy duty
vehicles for model year 2018 and beyond.” WPA,
WPA-420-F-16-044, August 2016. https://www3epa.gov/otaq/climate/documents/420f16044.pdf
[3]United States efficiency and
greenhouse gas emission regulations for model
year 2018-2027 heavy-duty vehicles, engines and
trailers.” ICCT Policy Update. August 2016.
www.theicct.orghttp://www.theicct.org/sites/default/files/publications/US%20HDV%20Phase%202%20FRM_policy-update_08252016_vF.pdf
[4] United States efficiency and greenhouse gas emission regulations for model year 2018-2027 heavy-duty vehicles, engines and trailers.” ICCT Policy Update. August 2016. www.theicct.orghttp://www.theicct.org/sites/default/files/publications/US%20HDV%20Phase%202%20FRM_policy-update_08252016_vF.pdf
[4] United States efficiency and greenhouse gas emission regulations for model year 2018-2027 heavy-duty vehicles, engines and trailers.” ICCT Policy Update. August 2016. www.theicct.orghttp://www.theicct.org/sites/default/files/publications/US%20HDV%20Phase%202%20FRM_policy-update_08252016_vF.pdf