Cummins (CMI) Says It's Well-Positioned to Comply with New Rule Following EPA, NHTSA Announcement

EPA, DOT Finalize Greenhouse Gas and Fuel Efficiency Standards for Heavy-Duty Trucks

Today the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportations National Highway Traffic Safety Administration (NHTSA) jointly finalized standards for medium- and heavy-duty vehicles that will improve fuel efficiency and cut carbon pollution, while bolstering energy security and spurring manufacturing innovation. The final phase two standards were called for by President Obamas Climate Action Plan, and respond to the Presidents directive in early 2014 to develop new standards that run into the next decade.

The final phase two program promotes a new generation of cleaner, more fuel-efficient trucks by encouraging the wider application of currently available technologies and the development of new and advanced cost-effective technologies through model year 2027. The final standards are expected to lower CO2 emissions by approximately 1.1 billion metric tons, save vehicle owners fuel costs of about $170 billion, and reduce oil consumption by up to two billion barrels over the lifetime of the vehicles sold under the program. Overall, the program will provide $230 billion in net benefits to society, including benefits to our climate and the public health of Americans. These benefits outweigh costs by about an 8-to-1 ratio.

The final standards are cost effective for consumers and businesses, delivering favorable payback periods for truck owners. The buyer of a new long-haul truck in 2027 would recoup the investment in fuel-efficient technology in less than two years through fuel savings.

The actions we take today on climate change will... More