1. David McNew/Getty Images The downtown skyline is enveloped in smog shortly before sunset in Los Angeles, California.

2. http://usnews.nbcnews.com/_news/2013/03/29/17518351 -epa-proposes-tighter-fuel-emissions-standards-could- push-price-of-gas-higher?lite

3. “Tier 3”: program to address air pollution from passenger cars and trucks Changes: –more stringent vehicle emissions standards –reduce the sulfur content of gasoline by 2/3 help state and local agencies in their efforts to attain and maintain health-based National Ambient Air Quality Standards (NAAQS). Tables/info: EPA Final Rulemaking, 3/3/14.

4. Economics & politics EPA had similar proposal ready in December 2011. White House decided to wait until after the 2012 elections to submit it for review. (NYTimes, 3/3/14) Industry funded BCA

5. epa.gov

8. Tier 3 is projected to lead to reductions in a host of air pollutants:

9. Beneficial impacts on health sulfur blocks pollution-control equipment in vehicle engines  increases tailpipe emissions linked to lung disease, asthma, emphysema, chronic bronchitis, aggravated heart disease and premature births and deaths (NYT, 3/3/14) by 2030, annually prevent –660-1,500 PM-related premature deaths, –110-500 ozone-related premature deaths, –81,000 work days lost, –approximately 1.1 million minor restricted-activity days. Maryland Dept. of the Env.

10. One example of the new standards for light duty (LD) vehicles (v) and trucks (t) NMOG: Non-Methane Organic Gases, precursors to ozone Note: ratcheting.

11. Evaporative Emission Standards Gasoline in fuel lines and tank can slowly evaporate over time. New standard: covered vehicles will be required to have essentially zero fuel vapor emissions in use (evaporative emissions standards, test procedures, and fuel/evaporative system leak standard) These new standards are harmonized with California’s zero evaporative emissions standards (Note: California as policy lab)

12. Increasing standards, increasing MC Sulfur in American gasoline: –Decade ago: 300 ppm (parts per million) –Subsequent rule changes required refiners to cut the sulfur content by 90 percent  currently 30 ppm. –New rule (2014)  reduce by 2/3 to 10 ppm. Upi.com NY Times, 3/3/ 2014 Charles Drevna, president of the American Fuel and Petrochemical Manufacturers (lobbyist) –removing the first 90 percent of sulfur molecules from gasoline relatively easy. –last 10 percent is harder: “They’re tough little buggers that don’t want to come out. It’s like getting the last little bit of red wine stain out of a white blouse.”

13. Costs: vehicle tech & fuel

14. VSL: valuing reductions in premature mortality VSL = $6.3M, $8.3M, $10.2M ….what’s going on? Should we be concerned that EPA didn’t allow VSL to continue to grow 2024-2030?

16. Benefits: health Sensitivity to discounting assumptions. (What’s being discounted?) Should we be concerned that EPA didn’t quantify all of the benefits? $6.7B - $19B from EPA infographic

17. Annual net benefits by 2030 infographic