Favorable outcomes for NGVs following industry submissions
On April 1, the U.S. Environmental Protection Agency (EPA) and Department of Transportation (DOT) issued final regulations paving the way for new greenhouse gas emission controls and fuel efficiency requirements. The rules cover model years 2012–2016 and, when fully phased-in, will require that passenger cars, light-duty trucks, and medium-duty passenger vehicles meet a combined average emissions level of 250 grams of carbon dioxide per mile (225 g/mi for cars, 298 g/mi for light trucks), equivalent to 35.5 miles per gallon (MPG) (39.5 mpg for cars, 29.8 mpg for light trucks). EPA has said that the new rules will add an average of $950 to the cost of new vehicles.
EPA’s original proposal included a fleet-average for CO2 emissions AND a per-vehicle cap on methane and nitrous oxide emissions. NGVAmerica the Canadian NGV Alliance and several of their members argued that the methane cap could impede the introduction of light-duty NGVs, and, further, that it was unnecessary since it has been demonstrated that the full-fuel cycle greenhouse gas emissions of NGVs are less than gasoline vehicles — even taking into account their methane emissions. The associations proposal that EPA simply allow NGV manufacturers to meet a carbon dioxide equivalent standard for greenhouse gas emissions was accepted. The final rule gives manufacturers the option of complying with a CO2 equivalent standard or alternatively meeting the caps proposed for methane and nitrous oxide.
EPA also finalized several provisions in the rules that should provide incentive for manufacturers to produce NGVs. The rule provides significant greenhouse gas emission credits for dedicated NGVs produced in model years 2012–2015. The rules also leave in place the current fuel economy credits for dedicated vehicles. Bi-fuel vehicles also can earn greenhouse gas emission credits under the rule for years 2012–2015; for purposes of the credits the vehicles will be assumed to operate on alternative fuel 50 percent of the time.
NGVAmerica says the new rules will generally not apply to aftermarket conversions. This is because there is an exemption for small entities (1,000 employees for vehicle manufacturers and 750 employees for engine and parts manufacturing). There also is a separate exemption for small volume manufacturers who produce less than 5,000 vehicles per year. It is likely that, at least for a while, most conversion manufactures will satisfy the Small Business Administration’s definition of a small entity, or will have fewer than 5,000 annual sales. EPA intends to address coverage of these other companies in a later rulemaking.
The final rule, response to comments, fact sheets, etc. are available here.
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