Top EPA deputy nixes any plan to trade 'CAFE' for Tier 2 emissions

Diesel Fuel News, March 18, 2002 by Jack Peckham

Detroit -- U.S. EPA's assistant administrator Jeff Holmstead publicly repudiated any notion that EPA would back off its super-tough "Tier 2" emissions standards on light-duty diesels in exchange for an agreement by automakers to boost corporate average fuel economy (CAFE) standards.

Holmstead flatly rejected this notion during a blue-ribbon panel discussion on the "role of the modem diesel" at Society of Automotive Engineers (SAE) annual World Congress here.

"We see no reason to do that," Holmstead told Diesel Fuel News in response to a question. Several "green" environmental groups suspect that automakers are mounting a campaign to get EPA, President George Bush and Congress to back off (somewhat) on Tier 2 limits on diesels, in exchange for higher CAFE standards, with the most recent evidence being a statement by U.S. Sen. John Kerry (DMass.) suggesting that diesels could help the autos boost fuel economy.

However, Kerry later denied suggestions made by "green" groups that he was willing to trade diesel Tier 2 limits for CAFE (see Diesel Fuel News 3/4/2002, p.9).

As far as EPA is concerned, automakers can achieve both goals -- higher fuel economy and ultralow emissions -- with advanced clean-diesel technology and ultra-low sulfur diesel (ULSD) fuel, Holmstead pointed out.

"We are very pro-diesel, for fuel economy, fuel security and [CO.sub.2] emissions reduction," Holmstead told the SAE Congress.

"It's important for the public to understand that this is a clean technology ... [because of] a couple of regulatory programs over the next 5-6 years that will ensure that diesels are as clean as gasoline vehicles.

"It's important for the federal government to say that to the extent there are health effects [issues], we think those are addressed by the regulatory programs coming on. By 2009 and earlier, heavy-duty and light-duty diesels will be as clean as gasoline."

The growth of diesel emissions retrofit programs and the growing availability of ULSD will combine with ultra-clean original equipment maker (OEM) vehicles starting in the 2007 model year, he said. As a result, clean-diesel is likely to make a bigger impact on the post-2007 vehicle market, although it has a long way to go to catch up with Europe's explosive growth of diesel cars, he said.

"My sense is that Tier 2 will accommodate as many diesels as anyone would want to sell here," and that even the tough "not-to-exceed" (NTE) and NOx limits nevertheless "allow plenty of room for diesels.

"It's primarily an issue of [ULSD] fuel supply. NOx [limits] are a bit more challenging [for] technology. ... but everything we see indicates that diesels are going to be very clean, and long before

"There are still lingering concerns [about diesel emissions and health effects] but once we've got Tier 2 in place, that will go a long way" to convince "greens" of the value of clean-diesel technology, Holmstead said.

Tough NOx limits on diesels are especially cost-effective compared to other regulatory alternatives, he added. "We know about cost-benefit and cost-effectiveness, and what we've found is that Tier 2 for diesels including the cost for the engine, vehicle and fuels is that even the most expensive NOx ton [reduced] is $1,000 to $1,400 per ton ... [and] this is more cost-effective than in many areas.

"We think the standard is fully justified assuming the remaining technical obstacles to NOx adsorbers are worked out, and everything we see is that's being worked out. The big issue is what the market demands. [There's debate about] whether CAFE is the right way, but the wrong way to do it is to relax Tier 2 standards."

Meantime, EPA is "less optimistic about urea" than Europe seems to be about urea-SCR for diesel NOx control, he added.

"With low-sulfur [ULSD] and NOx adsorbers you won't need urea, and our Ann Arbor [Mich.] lab and three companies have Tier 2 systems complying without urea. In the next few years, we're confident we'll see that" in the marketplace.

Asked why Europe is so far ahead of the U.S. on advanced diesel vehicle sales, Ford Motor Co.'s chief operating officer Nick Scheele said it's not just high fuel costs driving the strong European diesel market. Rather, it's the superb technologies on today's diesel cars that deliver tremendous fuel economy, impressive torque and acceleration, and none of the smell, noise or harshness of old-technology diesels of decades past.

"The advantages vastly outweigh any disadvantages," Scheele said, even though Europe's diesels have yet to achieve the super-tough EPA Tier 2 standards that make gasoline and diesels nearly identical on regulated emissions.

* Germany: We Agree With EPA

"I don't see that any different than you," Germany's Minister of Environment Rainer Baake added here.

"There are two good environmental reasons [for dieselization]: lower fuel consumption and lower [CO.sub.2]. But there are NOx/PM disbenefits, and so the auto industry must solve the NOx/PM problems, and the oil industry must produce sulfur-free [less than 10 ppm sulfur] fuels, and we politicians must have ambitious regulations, but leave enough room for the auto industry to breathe.