proposed heavy-duty vehicle and engine greenhouse gas ... · engine greenhouse gas emission...

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PROPOSED HEAVY-DUTY VEHICLE AND ENGINE GREENHOUSE GAS EMISSION REGULATIONS UNDER CEPA, 1999

Heavy Duty Vehicle GHG Emissions & Fuel Efficiency in Canada Conference

April 30, 2012

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Table of Content

• Context and Background

• Overview of the Proposed Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

• Next Steps

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Context and Background

Proposed Heavy-Duty Vehicle and Engine Greenhouse Gas Emission Regulations

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Environment Canada’s Recent Regulatory History

Air Pollutants2004+ MYs Air Pollutants

Tier 2/32006+ MYs

Air PollutantsPhase I/II2005+ MYs

Air Pollutants2012+ MYs

Air Pollutants2006+ MYs

GHGs2011-2016 MYs

Air PollutantsTier 42012+ MYs

GHGs2014-2018 MYs

On-Board Diagnostic 2013+ MYs

GHGs2017-2025 MYs

Emission Control Area(Sulphur in Diesel Fuel)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 …

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Contribution of On-Road Heavy-Duty Vehicles to Climate Change• Transportation is one of the largest

sources of GHGs in Canada – 22% of total emissions in 2005

– On-road heavy-duty vehicles represent approximately 6% of total emissions in 2005

• The proposed regulations would result in environmental gains that would contribute toward Canada’s commitment to reducing total GHG emissions by 17% from 2005 levels by 2020

CanadaCanada’’s GHG Emissions s GHG Emissions --20052005

TransportationTransportation164 Mt164 Mt

ElectricityElectricity126 Mt126 MtOil & GasOil & Gas

153 Mt153 Mt

EmissionEmission--Intensive TradeIntensive Trade--

Exposed Exposed IndustriesIndustries80 Mt80 Mt

Waste and Waste and OthersOthers54 Mt54 Mt

AgricultureAgriculture74 Mt74 Mt

BuildingsBuildings80 Mt80 Mt

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• May 2010: the Government of Canada jointly announced with the U.S its intent to develop GHG emission standards

• October 2010 & August 2011: Canada released two progressively more detailed consultation documents outlining the general direction for consideration in the Canadian regulations

– In addition, Environment Canada co-hosted with Transport Canada three stakeholder consultation meetings comprised of key industry stakeholders, provinces and territories and ENGOs

• April 13 2012: Minister Kent announced the proposed Heavy-duty Vehicle and Engine Greenhouse Gas Emission Regulations

• April 14 2012: Canada published the proposed Regulations in the Canada Gazette, Part 1 initiating a formal 60-day comment period

Actions on Development of on-road HDV GHG Emission Regulations

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United States Regulations

• On August 9, 2011, the U.S. released a joint rulemaking, by the National Highway Traffic Safety Administration and the Environmental Protection Agency (EPA), prescribing fuel consumption and GHG emission standards for on-road heavy-duty vehicles and engines for model years 2014 and later

• The U.S. EPA regulations, under the Clean Air Act, implement the GHG emission standards

Canada’s proposed Regulations fully align with the GHG emission standards of the US EPA

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Overview of the Proposed Regulations


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Highlights of Proposed Regulations• Lifetime GHG emission reductions and of 2014-2018 MY vehicles:

19.0 Mt

• GHG emission reductions in 2020 compared to business as usual:3Mt – equals 650,000 personal vehicles off the roads

• Lifetime net benefits of 2014-2018 MY vehicles:$4.2 billion (net present value), mostly through fuel savings

• Increased vehicle purchase prices is expected to be recouped by fuel savings in less than 1 year in most cases

• Manufacturers of new heavy-duty vehicles will be able to build GHG-compliant vehicles by incorporating cost-effective and currently available “off-the-shelf” technologies

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Who Would We Regulate?

• The proposed Regulations would introduce GHG emission standards for new on-road heavy-duty vehicles and engines of the 2014 and later model years

• The proposed Regulations would apply to any person who is engaged in the business of manufacturing orimporting new on-road heavy-duty vehicles or engines in Canada for the purpose of sale

• Would NOT apply to owners or operators of heavy-duty vehicles and engines

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What Would We Regulate?

• Vehicles from full-size pick-up trucks to combination tractors, and including a wide variety of vocational vehicles such as: freight, delivery, service, cement, garbage and dump trucks, as well as buses

• Proposed Regulations would NOTapply to vehicles that are not designed for highway use, such as farm equipment, off-road machinery, and heavy equipment

• Trailers would NOT be subject to the Regulations

CLASS 2B8,501 to 10,000 lb

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What Are the Emission Standards?

• Proposed Regulations include emissions standards for the following GHGs from transportation: carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4) and hydrofluorocarbons (HFCs)

• Proposed emission standards take into account the significant differences between three broad categories of heavy-duty vehicles and recognize the utility and work of vehicles

– Class 2B and 3 pick-up trucks and vans– Class 7 and 8 combination tractors (i.e., semi-trucks)– Class 2B through 8 vocational vehicles

• The proposed Regulations include separate engine and vehicle emission standards for combination tractors and vocational vehicles

Overview:

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CO2 Emission Standards – Class 2B and 3 Pick-ups and Vans• Proposed emissions standards:

– based on a fleet average – measured in grams of CO2 per

mile (g/mile)

Proposed CO2 average standard varies based on a “work factor”:– Work factor is based on a vehicle’s payload capacity, towing

capacity & 4WD capability– Vehicles with larger payloads, higher towing capacities and 4WD

capabilities would be permitted to emit more GHGs

• Vehicles equipped with spark-ignition and compression-ignition engines would have separate targets

WF = 0.75 x (GVWR – Curb Weight + xwd) + 0.25 x (GCWR – GVWR)xwd = 500 lbs if vehicle has 4WD/AWD, otherwise zero

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CO2 Emission Standards – Combination Tractors• This category would include heavy-duty trucks

designed to haul a trailer

• Proposed vehicle emission standards:– are measured in grams of CO2 per cargo ton-mile (g/ton-mile)– are categorized by vehicle weight class, roof height and cab type

7275High roof sleeper cab

8992High roof day cab

7376Mid-roof sleeper cab

8688Mid-roof day cab

6668Low-roof sleeper cab

8081Low-roof day cab Class 8120124High-roof (all cab styles)

115119Mid-roof (all cab styles)

104107Low-roof (all cab styles)Class 7

CO2 emission standard for the 2017 and after

CO2 emission standard for the 2014 to 2016 model years

CharacteristicsTractorClass

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CO2 Emission Standards – Combination Tractor Engines

• Proposed engine emission standards:– are measured in grams of CO2

per brake horsepower-hour (g/BHP-hr)– vary based on vehicle class

• The CO2 standards would become more stringent in 2017 model year

4604872017 and after

4755022014 to 2016

Heavy heavy-dutyMedium heavy-dutyModel year

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CO2 Emission Standards – Vocational Vehicles• Includes all remaining trucks and buses of all sizes

and functions not covered in previous two groups• Proposed vehicle emission standards are:

– measured in grams of CO2 per ton-mile (g/ton-mile)– categorised by vehicle weight class

222226Classe 8225234Classes 6 and 7

373388Classes 2B, 3, 4 and 5

CO2 emission standard for 2017 and after

CO2 emission standard for model years 2014 to 2016

Vocational Vehicle Class

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CO2 Emission Standards – Vocational Vehicle Engines• Proposed engine emission standards:

– Are measured in g/BHP-hr– vary based on vehicle class and fuel type

Vocational compression-ignition engine (diesel)

5555765762017 and after5676006002014 to 2016

Heavy heavy-duty

Medium heavy-duty

Light heavy-dutyModel year

Vocational spark-ignition engine (gasoline)

6272016 and afterAll RangesModel year

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Other GHG Emission Standards –HFCs, CH4 and N2O• Refrigerant leakage standard

– 1.5 % refrigerant leakage per year and would apply to pickup trucks, vans and tractors for systems with refrigerant capacity greater than or equal to 734 grams

– For systems with a refrigerant capacity of less than 734 grams, the standard would equal 11.0 grams per year

• Proposed CH4 and N2O emission standards for engines and pick-up trucks and vans

– Pick-up trucks and vans: 0.05 g/mile– Engines: 0.10 g/BHP-hr– Normalized by their relative global warming potential– CO2 credits could be used to offset CH4 and N2O deficit– Designed to prevent emission increases

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How would Compliance be Assessed?• Companies would be required to demonstrate

compliance using prescribed emissions testing procedures or simulation modelling procedures, aligned with the U.S.:

– Pick up trucks and vans: prescribed test cycles on a chassis dynamometer (same basic test procedures as LDV GHG)

– Tractors and vocational vehicles: computer simulation model (GEM) (see next slide)

– Engines: prescribed test cycles on a engine dynamometer

• EPA Certificates would be accepted to demonstrate compliance with the emissions standards

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New Feature: Computer Simulation Modeling• Companies would use a

simulation model to assess the performance of vocational vehicles and tractors equipped with one or more of the following non-engine-related technologies

– aerodynamic fairings– low rolling resistance tires– speed limiter– weight reduction – idle reduction technology

• Offers accurate and cost-effective method of compliance assessment– Model can be freely downloaded from EPA website

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Proposed Compliance Flexibilities

• A CO2 emission credit system:– would allow companies to generate, bank and trade emission

credits– would allow vehicles and engines with emission levels worse or

better than standard, provided that their average fleet emissionlevel does not exceed the standard

– Credits valid for 5 years; deficits must be offset within 3 years– Credits and deficits monitored through annual reporting

• Incentives for: – Advanced technology vehicles (electric, fuel cell, hybrid vehicles,

Rankine-cycle) – Innovative technologies resulting in GHG emission reductions

that are not accounted for during test procedures

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• Optional early credits for all 2013 model year vehicles and electric vehicles of 2011-2013 model years

• Credit multiplier of 1.5 for advanced technology vehicles and early credits

• Alternative phase-in requirements for pick-up trucks and vans and for engines

• Exemptions for certain classes and applications– Vocational tractors and off-road vehicles– Low-volume exemption (imported or manufactured less than 100 vehicles)

Proposed Compliance Flexibilities

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Administrative Requirements• Proposed reporting requirements

– Annual preliminary report ▪ December 1st before model year – only for Class 2b and 3

– End of model year report ▪ May 15th following model year ▪ Environmental performance of vehicles ▪ Credit/deficit calculations

• Several administrative provisions would be aligned with those under the On-Road Vehicle and Engine Emission Regulations:

– National emissions mark – Maintenance and submission of records – Application for exemptions– Notices of defect

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Next Steps


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Proposed Roll-Out• Canada Gazette, Part I publication was April 14, 2012

– Formal 60-day consultation period ends June 13, 2012– All interested parties are invited to submit written comments– Consultation session to be held in May

• Final Regulations targeted for publication in Canada Gazette, Part II later in 2012

• Proposed Regulations would apply starting with the 2014 model year

– Implementation dates would be the same as that of the U.S.

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Emails and Contacts• Submission of Comments:

[email protected] or to the attention of:Mark Cauchi, Director, Transportation Division, Environment Canada, 351 St. Joseph Blvd., Gatineau, Quebec, K1A 0H3

• Questions: Stéphane Couroux, A/Chief, Greenhouse Gas Regulatory Development and Marine Analysis Section, Environment Canada, Tel.: (819) 934-6013, email: [email protected]

Louis-Philippe Gagné, Senior Program Engineer, Tel: (819) 956-1099, email: [email protected]

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