1. Compression Ignition Marine Emissions Where are we now? What’s likely to be in the next Marine Rule?

2. Current EPA Marine Exhaust Emissions Timing Category Cylinder Displacement (Liter) Commercial Date Recreational Date 1 D 37 kW)20052007 0.9 < D < 1.220042006 1.2 < D < 2.520042006 2.5 < D < 5.020072009 2 5.0 < D < 15.02007N/A 15.0 < D < 20.02007N/A 20.0 < D < 25.02007N/A 25.0 < D < 30.02007N/A 3D < 30no limits at this time

3. Acronyms SCR – Selective Catalytic Reduction DOC – Diesel Oxidation Catalyst DPF – Diesel Particulate Filter EGR – Exhaust Gas Recirculation PCI – Pre-combustion Injection VGT – Variable Geometry Turbo

4. EPA’s Schedule Fast track process Develop framework by the end of April ’06 Draft text by June ‘06 Internal government review with OMB, SBREFA, DOJ, USCG, etc in August ’06 NPRM “signed” by the end of the year and published in early 2007 Starting as soon as 2010, if possible –NMMA / EMA is suggesting 2012

5. EPA’s “Wants” NMMA / EMA concurrence to Fast Track the Rule 50% or more reduction in PM inventory from Marine –Some applications / engines must achieve more than 50% to get an overall inventory reduction of 50%. Soot traps and SCR aftertreatment for Category 2 engines and possibly the largest Category 1 engines Modest NOx reductions Include Tier 3 and Tier 4 regulation Include all vessels – commercial & recreational Combined Marine & Locomotive Rule

6. NMMA / EMA / EPA Consensus Recreational will have less stringent limits that do not require aftertreatment Large vessels, tugs and vessels with available space will use after treatment Harmonization with Europe is important Category 3 engines & IMO MARPOL will be considered in a separate rulemaking

7. EMA Proposals 5000+ Large Commercial (Port, River, Ocean Tugs) (Freighters, Low Speed Ferries) 2005 Engines Sold = 170 High Speed Specialty (Military, Catamarans / HS Ferries) (Megayachts, Others) 2005 Engine Sold = 72 Total HP Recreational, Low Speed Commercial (Small Craft, Harbor Patrol, Small Fishing) 2005 Engine Sold = 643 Recreational, High Speed Commercial (Yachts, Pleasure Craft) (Small Fishing, Fast Ferries) (Crew and Supply Boats) 2005 Engine Sold = 8500 0 1530 Category 1/2 Vessel Speed (knots)

8. Strategy Use aftertreatment on large engines & applications that have the space to accommodate it –Large in relationship to engines are open for discussion –One idea is 1,200-1,400 hp would be large –Urea based SCR and regenerative DPF Use DOC on commercial applications –Possible exception for high power density “recreation like” commercial engines Early PM reductions for Recreational & Small Commercial applications.

9. Catalytic Converter

10. Catalyzed Continuously Regenerating Technology

11. Selective Catalytic Reduction Technology

12. CRT Diagnostic Module

13. SCR System for M/V SOLANO Mixing Vanes Urea Injection Lance Exhaust Flow Mixing Ducts Catalyst in Reactor Housing Catalyst Cell Arrangement 3 Rows of 9 Bricks stacked Fore to Aft 3 Feet Square Urea Dosing Unit

14. Weight Impact to SOLANO SCR EQUIPMENT WEIGHTS Each Shipset CATALYST BEDS12102420lbs. REACTOR HOUSING18603720lbs. MIXING DUCT340680lbs. UREA DOSING PANEL95190lbs. AIR COMPRESSOR75150lbs. CONTROL PLC 80lbs. LANCES, PLUMBING, SENSORS70140lbs. LAGGING & INSULATION180360lbs. UREA TANKS (AL)4896lbs. FOUNDATIONS (AL)185370lbs. 8206lbs.

15. Emission Level Comparison Engine sizeCategoryEffective Date NOx+HCPMCO liters/cylinder, rated powerg//kW-hrg/kW-hr Disp. 37 kWCategory 120057.50.405.0 0.9 £ disp. <1.2 all power levels Category 120047.20.305.0 1.2 £ disp. <2.5 all power levels Category 120047.20.205.0 2.5 £ disp. <5.0 all power levels Category 120077.20.205.0 5.0 £ disp. <15.0 all power levels Category 220077.80.275.0 15.0 £ disp. <20.0 power < 3300 kW (4425 hp) Category 220078.70.505.0 15.0 £ disp. <20.0 power ³ 3300 kW (4425 hp) Category 220079.80.505.0 20.0 £ disp. <25.0 all power levels Category 220079.80.505.0 25.0 £ disp. <30.0 all power levels Category 22007110.505.0 Off Road - Tier 3 NOx+HCPMCO g//kW-hrg/kW-hr 37 to 75 kW 20084.70.405.0 75 to 130 kW 20074.00.305.0 130 to 225 kW 20064.00.203.5 225 to 450 kW 20064.00.203.5 450 to 560 kW 20064.00.203.5 over 560 kW 20113.70.10 3.5

16. Other Issues Availability of Ultra-Low Sulfur Fuel in the marine market isn’t mandated until 2013 or later in Alaska Power Density – PCI and EGR don’t work in high power density engines Auxiliary Engines? DPF – use of Vanadium substrate may be an environmental problem

17. EPA Contact Byron Bunker – Marine Project Leader –USEPA National Vehicle and Fuel Emissions Laboratory/OAR 2565 Plymouth Road Mail Code: AAHDOC Ann Arbor, MI 48105 –Office Phone: (734) 214-4155 –e-mail: bunker.byron@epa.gov Diesel Boats and Ships –http://www.epa.gov/otaq/marine.htm