By David Shepardson
WASHINGTON (Reuters) - U.S. regulators on Tuesday announced final regulations setting fuel efficiency standards on medium- and heavy-duty trucks through 2027 that they expect will cut 1.1 billion tons of greenhouse gas emissions.
The rule establishes first-ever greenhouse gas emissions limits on heavy-duty combination tractors and requires that emissions be reduced up to 25 percent by 2027 in tractors used with tractor-trailer vehicles, delivery trucks, school buses, and other larger commercial vehicles.
The government says the new rules, which cover all motor vehicles weighing 8,500 pounds or more, are estimated to save $170 billion in fuel costs over the life of the vehicles. But it will add $27 billion in upfront costs to buy the more fuel-efficient vehicles.
The rule also requires annual increases in efficiency of 2.5 percent from 2021-2027 for heavy-duty pickup trucks and vans. Those vehicles are larger and heavier than light-duty vehicles and used to haul larger loads.
The new rule is intended to boost the amount of fuel saved and emissions offset by 10 percent over the initial proposal unveiled last year because of the industry's "technological advancements," the agencies said. The regulation is expected to save up to 84 billion gallons of fuel purchased.
The final rule won backing from environmental and trucking industry companies.
The American Trucking Association said it was "cautiously optimistic" the new rules will not be unduly disruptive to fleets and manufacturers. Despite sharply lower prices, fuel remains one of the top two operating expenses for most trucking companies, the group said.
The California Air Resources Board (ARB) in October urged the U.S. Environmental Protection Agency and National Highway Traffic Safety Administration to make the final rule tougher and move up the effective date to 2024.
ARB Chair Mary Nichols told reporters on a call the state supports the final rule.
But the United Auto Workers union raised concerns in February about the impact of a tougher rule on employment, saying the rules "push the stringencies too far (and) could have serious impacts" on manufacturers.
The is the last major climate regulation of the Obama administration. It had put in place more modest emissions limits for some medium-and heavy-duty vehicles for the 2014-2018 model years, as well as doubling efficiency requirements for light-duty vehicles by 2025.
Regulators plan to eventually set rules limiting emissions from aircraft as part of a global deal announced in February.
"These standards will not only benefit our climate, but also modernize America’s trucking fleet, cut costs for truckers, and help ensure the U.S trucking industry is a global leader in fuel efficient heavy duty vehicle technology," EPA Administrator Gina McCarthy wrote in a blog post.
The new rules also ensure that truck and engine manufacturers do not cheat on emissions controls in the wake of Volkswagen's (DE:VOWG_p) diesel emissions cheating scandal.
McCarthy said the agency has received a petition from officials in nine states to set future rules to limit nitrogen oxide polluting emissions in heavy trucks, but hasn't made a decision.