In 2013, President Obama announced his Climate Action Plan, a bold plan that is now on track to reduce emissions from nearly every sector of our economy.
Today, we are fulfilling one of the central promises in this plan -- finalizing the second phase of greenhouse gas emissions and fuel efficiency standards for medium and heavy duty vehicles for model years 2018 and beyond.
The trucking sector is an engine of the U.S. economy. It hauls about 70% of all freight in this country, and is also our nation's second largest segment of U.S. transportation in terms of emissions and energy use.
Today's final standards will promote a new generation of cleaner and more fuel efficient trucks. That means 1.1 billion fewer tons of CO2 will be emitted into the atmosphere, and operators will save 2 billion barrels of oil and $170 billion in fuel costs. The additional cost of a new truck will be recouped within 2-4 years, saving truck owners more over the long haul.
These standards will not only benefit our climate, but also modernize America's trucking fleet, cut costs for truckers, and help ensure the U.S trucking industry is a global leader in fuel efficient heavy duty vehicle technology. We developed the standards to allow multiple technological pathways to compliance, so that manufacturers can choose the technologies they believe are right for their products, their customers, and the market.
As with every rule, we relied on the input from the public, industry and many other stakeholders to build something that is both ambitious and achievable.
More than 400 stakeholder meetings helped improve this program from the proposal: reducing more tons of pollution, strengthening compliance to ensure that the standards get real emissions reductions and improved fuel efficiency, and increasing flexibility for small businesses and manufacturers throughout the industry.
We also continued our close collaboration with our partners in California throughout the process to ensure we finalized standards that will result in a truly national program.
We've put in place strong engine standards, which are critical because they help ensure that manufacturers implement engine technologies that continue to improve.
Our detailed technical analysis based on the most recent data shows that the required five percent efficiency improvement in diesel engines by 2027 is feasible, cost effective, and will lead to the continued carbon emissions reductions we need--millions of tons of reductions.
We heard concerns about the stringency of engine standards, and we took that into account. To ensure a smooth transition, the engine standards are designed with substantial lead times, a gradual phase-in over the course of nine years, and expanded emissions credit flexibilities that allow manufacturers to tailor their own phase-in schedule.
All this will enable manufacturers to develop and implement technologies that ensure reliability, and that are sound investments for the trucking industry.
And for the first time, the rules will cover trailers as well as tractors--ensuring that innovation will continue into aerodynamic features, next generation tires and other features so that trailers can contribute to fuel and emissions savings.
The rules don't just cover line-haul trucks. They will ensure that buses that carry school children and commuters, vehicles like snowplows, garbage trucks and delivery vans that travel our city streets, and even heavy-duty pickup trucks and large passenger vans will all be cleaner and more fuel efficient over the next decade.
Medium and heavy duty trucks help drive the American economy. Today we are ensuring that we drive down carbon pollution and save on petroleum costs from freight transport as the trucking industry continues to innovate, and to play their part in protecting the climate for future generations.