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Statement of Need: Setting fuel consumption standards for commercial medium-duty and heavy-duty on-highway vehicles and work trucks will reduce fuel consumption, and will thereby improve U.S. energy security by reducing dependence on foreign oil, which has been a national objective since the first oil price shocks in the 1970s. Net petroleum imports now account for approximately 60 percent of U.S. petroleum consumption. World crude oil production is highly concentrated, exacerbating the risks of supply disruptions and price shocks. Tight global oil markets led to prices over $100 per barrel in 2008, with gasoline reaching as high as $4 per gallon in many parts of the U.S., causing financial hardship for many families and businesses. The export of U.S. assets for oil imports continues to be an important component of the historically unprecedented U.S. trade deficits. Transportation accounts for about 72 percent of U.S. petroleum consumption. Medium-duty and heavy-duty vehicles account for about 17 percent of transportation oil use, which means that they alone account for about 12 percent of all U.S. oil consumption.

Summary of the Legal Basis: Section 102 of EISA, codified at 49 U.S.C. 32902(k), requires NHTSA to develop a regulatory system for the fuel economy of commercial medium-duty and heavy-duty on-highway vehicles and work trucks in three steps: A study by the National Academy of Sciences (NAS), a study by NHTSA, and a rulemaking to develop the regulations themselves. Specifically, 49 U.S.C. 32902(k)(2) states that not later than 2 years after completion of the NHTSA study, DOT (by delegation, NHTSA), in consultation with the Department of Energy and EPA, shall develop a regulation to implement a "commercial medium-duty and heavy-duty on-highway vehicle and work truck fuel efficiency improvement program designed to achieve the maximum feasible improvement."

Alternatives: NHTSA is evaluating nine alternatives; (1) heavy-duty engines, only (2) Class 8 combination tractors and engines in Class 8 tractors, (3) heavy-duty engines and Class 7 and 8 tractors, (4) heavy-duty engines, Class 7 and 8 tractors, and Class 2b/3 pickup trucks and vans, (5) NPRM Preferred Alternative: heavy-duty engines, tractors, and Class 2b through 8 vehicles, (6) heavy-duty engines, tractors, Class 2b through 8 vehicles and trailers, (7) heavy-duty engines, tractors, Class2b-8 vehicles, and trailers plus advanced hybrid power-train technology for Class 2b through 8 vocational vehicles, pickups and vans, (8)15 percent less stringent that the NPRM Preferred Alternative, covering heavy-duty engines, tractors, and Class 2b through 8 vehicles, (9) 20 percent more stringent that the NPRM Preferred Alternative, covering heavy-duty engines, tractors, and Class 2b through 8 vehicles.

Anticipated Costs and Benefits: Estimated lifetime discounted costs, benefits and net benenfits for all heavy-duty vehicles projected to be sold in model years 2014-2018: Costs $7.7B, Benefits $49.0B, Net Benefits $41B (with 3% discount rate).

Risks: The Agency believes there are no substantial risks to this rulemaking.