Nonroad Diesel Engine and Fuel Standards Chet France U.S. Environmental Protection Agency STAPPA / ALAPCO Spring Meeting May 7, 2002

Overview Perspective on nonroad diesel emissions Our plans for future standards Issues Next steps

Nonroad Diesels Construction Industrial Agricultural excavators, bulldozers, ... Industrial portable generators, forklifts, airport service equipment... Agricultural tractors, combines, irrigation pumps, ...

Need for Action Clearly a big source of diesel PM Diesel PM increasingly a focus of toxics and air quality concerns High priority for the Agency Also potential for major NOx reductions important to States ozone plans Top regulatory priority for OTAQ Have briefed OAR AA & EPA Administrator supportive of moving ahead

Mobile Source PM nonroad diesel equipment trucks & buses cars & SUVs 200 nonroad diesel equipment Thousand tons 100 trucks & buses cars & SUVs 2000 2010 2020 2030

Nonroad Diesel NOx We have set 3 tiers of standards phasing in between 1996 and 2008 Even so, NOx emissions from new Tier 3 engines will still be up to 20 times higher than highway diesels sold in the same timeframe NOx remains a major concern for ozone attainment and maintenance plans in many cities Nonroad diesel NOx contribution can be very high -- 20% or more in some places Potential NOx reduction from this program could approach a million tons a year

Phase-In of Existing Nonroad Diesel Standards Tier 1 Similar to highway 2004 Similar to highway 1998 Tier 2 Bars reflect gradual phase-in of standards by engine size Tier 3 1996 1998 2000 2002 2004 2006 2008 2010

Tier 4 Systems Concept-- Engines & Fuel Planning to follow a systems approach similar to the 2007 highway diesel rule: Diesel aftertreatment to achieve significant reductions in NOx and PM new program would also address transient test cycle and in-use emissions Fuel sulfur reduced to 15 ppm to enable aftertreatment technologies and get large immediate sulfate PM reductions from existing fleet

PM Emissions with Trap Typical test filter – current standards Test filter – 2007 standards Unused test filter

Sulfur in Diesel Fuel Where things stand: ppm sulfur ~3000 Typical nonroad fuel today (unregulated) Where things stand: Sulfur in Diesel Fuel 500 Highway fuel today (maximum) (also California nonroad diesel ) 15 Highway fuel in 2006

Diesel Fuel Consumption (1998) Nonroad equipment 20% Locomotives & marine 9% On-highway 54% Home heating fuel 17%

Nonroad Diesel Fuel Distribution System Marine tankers & barges dyed for tax purposes at various points in the distribution system Barge ~111 Off-Highway diesel refineries (~29 small) ~6800 Bulk plants Pipeline ~4000 Transport trucks ~800 Bulk terminals Rail Fuel oil dealers Refinery terminals ~5000 Mobile refuelers ~40,000 Tank wagons ~5000 service stations ~350 Locomotive fuel tanks ~75,000 centrally- fueled fleet tanks ~100,000 Industrial tanks ~12,500 Marine tanks Home heating fuel for millions of homes & businesses ~1,300,000 farm tanks

Benefits of Fuel Change Beyond Enabling Technology Direct & secondary sulfate PM reductions Different from highway rule due to very high sulfur level of nonroad diesel fuel example: reducing sulfur to 15 ppm would reduce PM by ~25,000 tons in the first year If locomotive & marine fuel were included, would get proportionally large added reductions Lower engine maintenance costs sulfur affects oil change intervals, engine life

Timing Constraints for Tier 4 engine standards: Technology introduction on highway (2007-2010) Coordination with Tier 3 requirements (2006-2008) Timing of fuel change Constraint for fuel change: Coordination with highway diesel and gasoline changes (2004-2011). Considering fuel change in 2006-2012, Engine standards will start with fuel program

Initial Industry Input / Feedback Engine and equipment manufacturers Major companies have made Tier 4 proposals Others want clean fuel but vary on Tier 4 support Refiners variety of positions and suggested approaches Major issues: timing and mandatory vs. highway surplus-based program Builders, farmers, ... Not heavily engaged at this point main issue will be cost

Issues for Engine & Equipment Manufacturers Timing, level, and scope of Tier 4 standards experience limited -- Tier 2 is just now phasing in engine / equipment redesign too soon after Tier 3 cost and feasibility for small diesel engines several hundred equipment makers, many small hundreds of extremely diverse applications severe operating environments Harmonization with Europe nonroad diesel companies are far more global than highway

Issues for Engine & Equipment Manufacturers (continued) Implementation flexibility especially for small equipment manufacturers coordination with Tier 3 program Misfueling especially if fuel is phased in gradually

Issues for Fuel Providers Some refiners support 15 ppm sulfur goal matches highway spec same technology enablement goals Include locomotive and marine fuel? Implementation: When and How? -- 100% all-at-once Phase-in: regulate end-users instead of refiners May be high capital costs for some refineries Implementation flexibility for small refiners some only make nonroad fuel-- no ready H2 supply

Emission Reductions Potentially very significant PM & NOx reductions PM reductions exceed those of 2007 highway program if assume similar control efficiencies Also large NOx reductions, important to States ozone attainment/maintenance plans Also very significant toxics reductions diesel PM and toxic gaseous compounds

Next Steps Engaging stakeholders Conducting technical analyses of various options Proposal to OMB by the end of this year Proposal published in early 2003 This project is OTAQ’s top regulatory priority