2007 EMISSIONS

EMISSIONS

2007 EPA Costs and Benefits Analysis Compliance costsCompliance costs –Estimated at $ per engine –4-5 cents per gallon fuel, partially off-set by maintenance savings of ~ 1 cent per gallon –Total costs are $4.3 billion/year Health benefitsHealth benefits –When Fully Implemented The program will prevent annually –Over 8,300 premature deaths –Over 750,000 respiratory illnesses –1.5 million lost work days –2.6 million tons of NOx, 110,000 tons of PM, and 17,000 tons of toxic pollutants Monetized benefitsMonetized benefits: $70.3 billion/year

Since the 2010 NOx limit cannot be met by EGR based approaches alone, the future of urea-SCR in the US market will ultimately depend on whether the NOx adsorber technology is capable of meeting the 0.2 g/bhp-hr NOx standard Over the period, this NOx limit must be met in 50%, based on the manufacturer's fleet. Manufacturers will meet this 50% requirement by certifying all their engines at approximately 1.1 g/bhp-hr NOx and.01 g/bhp-hr PM. This will be achieved through the use of EGR and DPF aftertreatment.

Reducing Diesel Fuel Sulfur ,000 ppm 500 ppm 15 ppm – 80% % 500 ppm 15 ppm

Fuel Key Elements of the Rule Reduces diesel fuel sulfur levels nationwide. –Highway diesel fuel sulfur cap of 15 ppm –Enables use of exhaust after treatment technology –2006 – 2010 transition –Small refiner flexibility and sulfur credit trading Possible Misfueling

Pipelines to Ban Diesel Containing Lubricating Additives The largest U.S. pipeline operator, Colonial Pipeline, said it plans to ban diesel fuel with lubricity additives from its system, which would require the oil industry to spend millions of dollars to equip their terminals to add the chemicals. Others are likely to follow. The issue is critical because sulfur, which adds essential lubricating qualities to diesel, would be sharply reduced after mid-2006 because of federal environmental laws. And new engines to be introduced for 2007 would require the reduced-sulfur fuel. “We can’t do it,” said Steve Baker, a spokesman for Colonial Pipeline. “We did some test batches and the lubri-city additive contaminated other products moving on the pipeline.” 2007

What is Misfueling? Misfueling is the use of 500 ppm sulfur diesel fuel in 2007 and later model year heavy-duty diesel engines/vehicles However, the use of 15 ppm sulfur diesel fuel in pre model year engines/vehicles is not misfueling –In fact, 15 ppm sulfur fuel provides immediate benefits for existing trucks (reduced wear in rings/liners/exhaust systems, less frequent oil changes) and their PM emissions Misfueling can be accidental or intentional

Misfueling Concerns Use of high sulfur diesel fuel in engines that require 15 ppm diesel fuel –could irreversibly damage emission control equipment –may impact engine operability, durability, and fuel economy –reduces the environmental benefits of the new emission standards The EPA considered and evaluated several options to mitigate misfueling –Unique nozzle shapes/sizes: raised concerns re. flow rates, backwards compatibility, vehicle redesign, etc. – significant cost issues –Dyes: are not seen and create distribution system problems –Electronic pump/vehicle interfaces: significant cost issues –Color coded nozzles: industry has the expertise to do this

Misfueling Concerns The highway diesel fuel program design should minimize misfueling - both accidental and intentional –80/20 credit program should cause prices for 15 ppm and 500 ppm fuel to be similar –15 ppm fuel will be the dominant fuel in the market beginning in 2006 (Precompliance reports suggest 95%) –500 ppm fuel will have limited availability (geographically and temporally) –Rule contains labeling requirements for diesel fuel pumps and vehicles to help prevent accidental misfueling –Owners and operators of trucks will not risk voiding the warranty No compelling case to take more drastic and costly measures

Oil Emission “Phase-In” *PC = Proposed Category NO x, g/BHP-Hr Particulate, g/BHP-Hr PC-10* OEM’s Finalize After-Treatment Systems End 2003 PC-11* 2003

Oil Quality Driven by Clean Exhaust Year: API: ‘88 ‘90 ‘95 ‘99 ‘02 ‘07 CE CF-4 CG-4 CH-4 CI-4 PC EGR + DPF NO x Adsorber DeNO x Catalyst Retarded Timing EGR NOx (g/hp-Hr)

Increasing Oil Quality CD CE CF-4 CG-4 CH-4 CI-4 API: Number of Tests to Qualify Products

Here's a little history,” says Citgo's Betner. “Back in 1971, an oil had to pass three tests to receive API [American Petroleum Institute] certification, at a cost of about $1.5 million. For 2007 the stakes go up even higher, as PC-10 oils may have to pass between 24 and 25 tests, at a cost of $25 million, says Betner. “The beauty for the consumer is that there won't be any disparity in protection against wear, corrosion, etc. like we had with a lot of 1971-era oils,” says Betner. “These oils won't be shots in the dark. They'll have a lot of integrity in terms of performance expectations.” Increasing Oil Quality

Chemical Limits for 2007 Lubricants Sulfur % NO x Adsorber Ash % Particulate Traps Phosphorus NO x Catalysts Volatility – Oil Consumption Ash Limit Major Driver for Particulate Filters

Paradigm Shift in Engine Oil Technology Ash Volatility Phosphorus Sulfur PC-10 API CI-4 Extended Oil Drains 2007 Reduces Oil Drains 2002

“The lower TBN changes things,” says Reginald Dias, director of commercial products for ConocoPhillips. “Lower base reserve means less acid neutralization capability, and that means the oil just can't last as long.” Mark Betner, manager of heavy-duty products for Citgo Petroleum, agrees. “As long as we take sulfur out of the mix, we'll be OK,” he says. “I don't think we'll see a rollback of oil drain intervals below what I call a ‘normal’ range. Chevron's McGeehan concurs, adding that lubricant manufacturers are targeting a PC-10 oil drain interval of 25,000 miles. “The range of oil drains in the U.S. trucking market is so large — from 15,000 to 60,000 miles — that we can't make a recommendation on drain points as of yet,” he says. “By taking the sulfur out of the fuel, the oil should last longer. As long as the CI-4 oils used today? We don't know that yet.” 2007 Lubricants Nov

Ash Plugging With Particulate Filters Detergent and Inhibitor Base Oil VI Improver Engine Exhaust Ash Filter Plugging Particulate Filter

2007 EMISSIONS TECHNOLOGY PARTICULATE CONTROL WILL BE ACCOMPLISHED VIA DIESEL PARTICULATE FILTER. + NOx CONTROL WITH VARIOUS COMBINATIONS OF BASE ENGINE MODIFICATION.

Diesel Particulate Filters 2007 Particulate Matter level = 0.01g/bHP-hr –Unachievable with foreseeable “engine-out” technology –Virtually assures use of a Diesel Particulate Filter (DPF) Must also have 15ppm sulfur fuel to meet PM regulation

DPF Technology Active Regenerating Passive Catalyst Regenerating

Wall Flow Filter Technology Filter Substrate Diesel Particulate Filter (DPF) Collects Soot Oxidizes / Burns Soot Wall Flow Ceramic Filter Optional Diesel Oxidation Catalyst

Diesel Particulate Filters Passive Trapped PM Cell Plugs Exhaust (PM, CO, HC) Enter Ceramic Honeycomb Wall Exhaust (CO 2, H 2 O) Out Cell Plugs

Best Value Solution will be if Engine Can be Tailored for Thermal Management Temperature Is Key to Filter Regeneration Optimum is 350°C (660°F) –Below 300°C (570°F) too Slow Low Temperature –Above 400°C (750°F) also Slow NO - NO 2 Equilibrium Limits Soot Burning Temp (°C) Soot Collected - Soot Burned (g/hp-hr) <0 Yes Regen >0 No Regen Need To Be In This Region

Engine Thermal Management

Temperature Is Key to Filter Regeneration

DPF Regeneration

Cold Temp Regeneration Intake Throttle

Active Regenerating DPF

Active Regeneration with Fuel Injection

Active Regenerating DPF

CCRT

DPF To ensure engine protection, de-rate devices – both in-dash and add-on – were used to alert drivers and reduce power output when backpressure exceeded a predetermined threshold DPF internal substrate laden with ash before cleaning 180-lb, DPX Catalytic Soot Filter

DPF Maintenance – Why? DPF Function –Catch and hold exhaust particles for further processing; Regeneration – soot and combustible fractions oxidized in the DPF Maintenance – non-combustibles remain in the DPF and must be removed periodically

The 100-lb filter section is removed, and air is forced, backward and forward, through it. The ash is collected in a bag and stored in 55- gallon drums for proper disposal DPF Maintenance

Maintenance Requirements Diesel Particulate Filters –Passive Periodic Inspection of Packaging, Support Brackets and Piping Ash Removal / Filter Cleaning Control System Checks – Back Pressure and Temperature –Active Same as passive Inspection / Maintenance of Fuel Injection System – Injectors, Fuel Line Control System Checks – Wiring Harness, Functionality

DPF Maintenance – Issues & Concerns Development Needs Standards SAE J-Standards and TMC Recommended Practices –Special Equipment Typical shop equipment not sufficient –Ash Handling/Disposal Method Not a hazardous residue under 40 CFR 261 Subpart C Easily dispersible due to consistency

DPF Maintenance – Issues & Concerns Other Concerns –Cost Expensive  must be handled with care! Inventory carrying costs (versus mufflers) and availability Need for serialization??? –80/20 Fuel Rule Enables contamination from multiple sources –Recycling Will automotive infrastructure support commercial vehicle aftertreatment devices???