 Two proposals were submitted to EPA under Recovery Act Funding for National Clean Diesel Campaign (NCDC)  Both for demonstrating “EPA Emerging Technology”  Most of the current EPA or CARB “Verified Technologies” only capable of PM, HC/CO reduction, not NOx  EPA: $20 millions allocated for Emerging Technology under Recovery Act  EPA: Still have $3-4 millions regular funding annually

1.Emissions Reduction by Retrofitting Caterpillar 3500 Marine Diesel Engines with 3500 Emissions Upgrade Group: Field Demonstration of Tier 1 Kit 2.Emissions Reduction by Retrofitting Onroad Diesel Vehicles and Offroad Diesel Equipment with Three Different Types of Emerging Technologies

 RFGA status (RFGA-14, 17, 18)  Project status  Financials

 QuantLogic, “Reducing Emissions from Drayage Trucks”  Eaton, “Electrification for Engine-Off Operations of Trucks in Ports”  ESW, “Combination Engine and Aftertreatment Technology”  NETT Technologies, “Low Temperature Off-Road SCR”  NETT Technologies, “Low Temperature On-Road SCR”  Clean Diesel Technologies, “Verification Advanced SCR Control Strategies”  Clean Air Systems, “All Temperature SCR System”, Project started Contracting phase, delayed due to their supplier Contracting phase, IP language negotiation

CompanyProject Topic Maximum Approval $ CaterpillarCaterpillar 3406 Emissions Upgrade Group$740,647 EMDCommon Rail Fuel System $750,000 FEVRetrofit Solid SCR System for NOx Reduction $750,000 EatonReformer, LNT and SCR based Aftertreatment System $654,703  Initial Award: 4 proposals from 34 submitted ($2.895 million)  Very conservative when recommended  Uncertainty about availability of funding based on the request from TCEQ(a $4.6 million reduction)  Additional award recommendations: 2 proposals ($1.46 million)  A budget reduction will not occur,  Tinnerman/Shadowood, TEC2010 reformer/LNT/SCR  Haynes, Locomotive fuel system retrofit with electronic unit injection system

 April 6 - May 6  Received: 36,  ETAC review: 35  TCEQ eligibility: 30  Under 6 technical categories  Focused research  Engine combustion  Fuel modification  Urea-SCR  HC-SCR, LNT  Hybrid

 Available funding: $4.15 million  Total NTRD funding requested: $21.14 million  Focused research: $2,874,991  Engine combustion: $2,460,932  Fuel modification: $4,145,291  Urea-SCR: $4,785,374  HC-SCR, LNT: $4,041,255  Hybrid: $2,833,158  Additional RFGA-17 awards further reduce available funding

CompanyProject Topic Funding Requested Donaldson Non-Road Retrofit PM/SCR System Development $ 750,000 and Verification Engine Control Integration, Demonstration and Initial Verification Systemof a Combined Retrofit SCR-DPF System for $ 462,332 HD Highway Diesel Vehicles Johnson Matthey SCRT& SCCRT Verification $200,000 Nett Demonstration and Verification of BlueMAX PLUS SCR Emission Control System for Off-Road Applications $ 471,631 MIRATECH Verification Testing of a 50% NOx Emissions Reduction $ 400,000 Kit for Marine EMD Diesel Engines ISEHybrid Drive Development, Characterization and Verification for Shuttle Bus and heavy-Duty $ 748,409 Vehicle Applications  Proposals for or with verification

 RFGA-18 (open duration: 4/6/09– 5/6/09)  Cost effective system approaches  Long term sustainable approaches that OEM will likely continue  Competitive technology in market place  Last RFGA in FY09  RFGA-19 (will NOT proceed)  Cost effective enabling technologies  OBD (To address requirement from EPA)  Controls  Energy recovery  May use for future RFGA

 RFGA status (RFGA-14, 17, 18)  Project status  Financials

 32 active projects,  8 completed projects.  Additional 15 projects are scheduled to finish by the end of June  Final reports  9 projects  Project under verification testing  N-06, Johnson Matthey Onroad SCCRT System  N-03, NETT Onroad and Offroad BlueMAX SCR System  N-09, ECS DOC and SCR for ON-road

 Technology Verification Status  EPA Emerging Technology List update  Eight “Emerging Technology” from five NTRD projects  NETT-N06:Off-road SCR, and On-road SCR,  Johnson Matthey-N03: On-road SCR,  ESW-N23: DOC for Marine application,  Caterpillar-N38: 3500 Marine Emissions Upgrade Group,  ECS-N23: Urea based SCR System.  One project did accelerated aging to meet EPA durability requirement  Johnson Matthey SCRT technology, N-03

 Pluggable Hybrid Electric Terminal Tractor (with cleaner diesel)  Tested at the Port of Houston

 2008 EPA Emerging Technology List Update  Six “Emerging Technology”, three from NTRD projects  NTRD funded 50% on the list  > $1 million EPA fund known to be invested to implement them in Texas fleets

 2009 EPA Emerging Technology List Update  Eleven “Emerging Technology”, eight from NTRD projects  73% from NTRD funded  Optimistic estimates, > $3.5 million EPA fund to be invested to implement them in Texas fleets  Investment from Federal funds on NTRD funded technologies will quickly catch up or exceed NTRD investment  Verified technologies  Emerging Technology Status  Recovery Act Funds, regular NCDC funds

 RFGA status (RFGA-14, 17, 18)  Project status  Financials

 Additional awards under RFGA-17: 2 proposals ($1.46 million) CompanyProject Topic Max NTRD Funding Tinnerman/Shadowood, TEC2010 NOx Compliance $ 750,000 without the Use of Urea Haynes,Marine and Inland Port NOx Reduction through Optimization, Verification and $ 710,259 Certification of Three Locomotive Types

CompanyProject Topic Max NTRD Funding Donaldson Non-Road Retrofit PM/SCR System Development $ 750,000 and Verification Engine Control Integration, Demonstration and Initial Verification Systemof a Combined Retrofit SCR-DPF System for $ 462,332 HD Highway Diesel Vehicles Johnson Matthey SCRT& SCCRT Verification $200,000 Nett Demonstration and Verification of BlueMAX PLUS SCR Emission Control System for Off-Road Applications $ 471,631 MIRATECH Verification Testing of a 50% NOx Emissions Reduction $ 400,000 Kit for Marine EMD Diesel Engines ISEHybrid Drive Development, Characterization and Verification for Shuttle Bus and heavy-Duty $ 748,409 Vehicle Applications  RFGA-18 awards: 6 proposals ($3.032 million)

 Appointment of Donald Lewis to the ETAC  Fleet manager and coordinator of the Alternative Fuels Group for the Texas Department of Transportation