The Importance of the 2007 Highway Diesel Rule in Meeting Clean Air and Public Health Challenges

1. The Importance of the 2007 Highway Diesel Rule in Meeting Clean Air and Public Health Challenges Bill Becker Executive Director State and Territorial Air Pollution Program Administrators/Association of Local Air Pollution Control Officials March 16, 2004

2. About STAPPA and ALAPCO • Two national associations of air pollution control agencies in 53 states and territories and over 165 major metropolitan areas • Encourage and facilitate air pollution control efforts that will result in clean, healthful air across the country • Enhance communication and cooperation among federal, state and local regulatory agencies

3. The Clean Air and Public Health Challenges Facing Our Nation • 175 areas violate the health-based, federal 8-hour ozone (smog) and/or PM2.5 (soot) standards • 160 million people are exposed to unhealthful air • Almost every person in the country is exposed to levels of toxic air pollution that exceed federally acceptable levels • Heavy-duty diesel emissions are a primary contributor

4. Adverse Impacts of Diesel Exhaust • Causes premature mortality • Aggravates respiratory and cardiovascular disease and asthma; decreases lung function • Contains over 40 chemicals listed by EPA & CA as toxic air contaminants, known and probable human carcinogens, reproductive toxicants and endocrine disruptors • STAPPA and ALAPCO estimated diesel particulate may be responsible for 125,000 cancers nationwide over a lifetime • Contributes to elevated ozone and fine particulate levels, regional haze, acid rain and global warming

5. What the Clean Air Act Requires of EPA • EPA required to set federal standards for air pollutants sufficient to protect human health with an adequate margin of safety • Called upon to establish federal control programs for various industrial sources and for mobile sources of pollution • Responsible for enforcement and compliance

6. What the Clean Air Act Requires of States • Required to develop and implement “State Implementation Plans” detailing how they will reduce emissions and meet federal air quality standards by specified deadlines – a “zero-sum” game • Must measure pollution in the air, establish “emission inventories” identifying sources of pollution and how much they contribute and project reductions necessary for attaining the federal standards • Responsible for implementing emission control programs to augment federal programs, as necessary

7. Consequences to States for Failing to Comply • States face serious consequences for failing to submit or implement a SIP • Statutory sanctions: • Withholding of federal highway funds • Requirement that emissions from new sources of pollution be offset at a rate of 2:1 • Serious public health and environmental consequences associated with dirty air

8. National Diesel PM Emissions

9. The 2007 Highway Diesel Rule • Engine standards yielding >90% reduction in ozone precursors and fine particulate • 97% reduction in diesel fuel sulfur enables advanced emission control technologies • Represents an extensive and inclusive development process and successfully balances varied stakeholder perspectives • State and local agencies strongly support this rule and timely implementation of its provisions

10. Costs vs. Benefits of the 2007 Rule • Total costs estimated to be ≈$4.5 billion in 2030 • Total dollar value of benefits estimated to be ≈$70 billion in 2030 • Will reduce NOx by 2.6 million tons/yr, PM by 110,000 tons/yr and hydrocarbons by 115,000 tons/yr • Will reduce toxic air pollutants by 17,000 tons/yr

11. Health Benefits of 2007 Rule • EVERY YEAR, this rule will prevent: • 8,300 premature deaths • 5,500 cases of chronic bronchitis in children • 17,000 cases of acute bronchitis in children • >360,000 asthma attacks and >386,000 cases of respiratory symptoms in asthmatic children • 7,100 hospital admissions • 2,400 asthma-related emergency room visits • >1,500,000 lost work days

12. Rule Has Withstood Political and Legal Scrutiny • The Rule was adopted by the Clinton Administration (12/21/00) and reaffirmed by the Bush Administration (2/28/01) • Engine makers’ and petroleum refiners’ petitions challenging the rule were denied by DC Circuit Court of Appeals (5/3/02)

13. Multiple Technical Reviews Have Reaffirmed the Rule • EPA Highway Diesel Progress Review – Report #1 (6/02) • “Every major engine manufacturer expects to be able to comply with effective standards in 2007.” • Clean Diesel Independent Review Panel (10/30/02) • Four-month effort involving leading experts representing all stakeholders, including STAPPA/ALAPCO and ATA • To review industry progress in developing the technology needed to implement the 2007 rule • The Panel found that “every major engine and vehicle manufacturer expects to have emission-compliant products by 2007.”

14. Multiple Technical Reviews Have Reaffirmed the Rule (continued) • EPA Highway Diesel Progress Review – Report #2 (3/04) • “Engine manufacturers are on track for 2007 implementation.” • “All manufacturers can comply in 2007 with existing proven technologies.” • “NOx control should not adversely affect fuel consumption and improvement may be possible over today’s engines.” • “Engine manufacturers will provide prototype vehicles in 2005 for early customer fleet testing consistent with their product development plans.”

15. Engine Manufacturers Are on Track to Comply • “Cummins To Use Proven Cooled-EGR Technology for 2007” (12/15/03) • “International Brand Trucks Will Meet 2007 Requirements without Using SCR or NOx Adsorbers” (12/15/03) • “Caterpillar Announces Intent to Meet 2007 EPA Regulations Without Complex SCR Technology” (12/15/03) • “Mack to Use EGR-Based Technology to Meet EPA ’07 Emissions Regulations” (1/28/04) • “Volvo Trucks Selects EGR for 2007 Emissions Reduction Technology” (1/28/04)

16. Engine Manufacturers Are on Track to Comply (continued) • Engine Manufacturers Association – 3/5/04 • “…major engine manufacturers have finalized their designs for 2007 engines, or they are on target to do so shortly.” • “…efforts are now fully focused on delivery of products that not only meet the 2007 standards, but that also meet their customers’ expectations.” • “Manufacturers are committed to having a reasonable number of prototype engines for truck customer on-road testing in 2005.”

17. Concerns with Recent GAO Report • Inaccurately characterizes EPA’s responsiveness to industry • Leaves incorrect impression of the level of technological progress that has been made • Suggests that EPA consider another independent review and economic incentives

18. Concerns with GAO Recommendations • Second independent review panel unnecessary • Rule has already withstood repeated scrutiny • EPA has committed to ongoing technical review • Another panel will erroneously imply uncertainty and could weaken momentum • Economic incentives inappropriate • Possibly appropriate for early compliance, but inappropriate to condition on-time implementation on incentives • Such economic incentives are unprecedented and suggest that timely compliance can not be achieved without financial incentives

19. State and Local Air Officials Need Certainty • State and local air officials are pleased by EPA’s continued commitment to successful and timely implementation • However, ongoing efforts that could unnecessarily delay or weaken the rule are a significant concern • Seeking certainty through a backstop: Pursuing use of statutory authority to adopt California’s 2007 highway diesel emission standards

20. Conclusions • Highway diesels are a major contributor to our nation’s pervasive air quality problems • 2007 rule will provide tremendous air quality and public health benefits • The rule has withstood extensive review and analysis • States and localities are counting on this rule to be implemented on time and intact to achieve and sustain clean air goals