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Small Entities and Rulemaking

SBAR Panel #46: Greenhouse Gas Emissions Standards for Medium- and Heavy-Duty Vehicles

Key Dates and Documents for this SBAR Panel

  • Convening Date: 10/22/2014
  • Completion Date: 01/15/2015

About the Rule

What is the Implication of the Proposed Rulemaking on Small Entities?

The EPA's and the National Highway Traffic Safety Administration's (NHTSA) joint "Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles" (40 CFR Parts 85, 86, 1036, 1037, 1039, 1042, 1048, 1054, 1065, 1066, 1068 and 49 CFR Parts 523, 534, and 535), finalized in September 2011, introduced the first-ever national program for medium- and heavy-duty standards. The program addressed the increasing emissions and fuel consumption of the heavy-duty transportation sector by establishing performance based standards which apply to manufacturers and promote the adoption of cost-effective technologies. The standards phase-in over model years (MY) 2014 through MY 2018.

With heavy-duty vehicles projected to be the primary contributor to GHG emissions in the transportation sector by 2040, the President has instructed EPA and NHTSA in his 2013 Climate Action Plan to "once again partner with industry leaders and other key stakeholders to develop post-2018 fuel economy standards for heavy-duty vehicles." Furthermore, in a February 18, 2014 Presidential Announcement, the President directed EPA and NHTSA to finalize this second phase of standards by March 31, 2016 (http://www.epa.gov/otaq/climate/regs-heavy-duty.htm). The upcoming "Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Vehicles" (Phase 2) will further build upon the success of the 2011 rule and offer the opportunity to significantly reduce greenhouse gas emissions, fuel consumption and the costs of transporting goods across the United States.

Phase 2 may include more stringent engine and vehicle GHG emission and fuel efficiency standards, and may also include new regulatory standards for new trailers pulled by semi-tractors. As a result, manufacturers of engines, chassis, vehicles and trailers may be required to incorporate GHG emissions-reducing and fuel-saving technologies. Many of these technologies are available in the marketplace already, but some may still be in development today.

Phase 1 included interim provisions to prevent adverse impacts on small businesses. In 40 CFR 1036.150(d) and 1037.150(c), EPA stated that manufacturers meeting the applicable small business criteria in 13 CFR 121.201 were not subject to the GHG emission standards, which allowed EPA to make a no significant (economic) impact on a substantial number of small entities (SISNOSE) finding. The small business exemptions of Phase 1 were intended to be limited to Phase 1 and many of the small business exemptions of the 2011 rule may be replaced with more limited and targeted flexibilities in Phase 2.

The proposed rule may affect entities in the following industry sectors:

  • Manufacturers of :
    • Heavy-duty engines
    • Complete vehicles under 14,000 pounds GVWR
    • Vehicle chassis
    • Semi-tractors
    • Semi-tractor trailers
    • Alternative fuel engine converters

How Can I Learn More?

While the opportunity to participate on this Panel has passed, you will have the chance to submit comments concerning this rulemaking during the standard public comment period commencing after publication of the notice of proposed rulemaking in the Federal Register.

Monthly updates about the rulemaking are available on the rule's profile page on Reg DaRRT. From this page, you can determine when the NPRM will publish and, thus, when you will have an opportunity to comment on the rulemaking.

Semiannual updates about the development status of the rulemaking are available on both:

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