OTC Mobile Source Committee OTC Committee Meeting September 2009 Buffalo, New York 1

Overview National Measures Measures Under Development Measures Under Consideration Next Steps 2

National Measures Establishment of Emission Control Area Along the East Coast for Ocean Going Vessels –Support U.S. Efforts Renewable Fuel Standard (RFS) – Part II –Backsliding Concern Upgrade Aftermarket Catalyst Standards 3

Oceangoing Vessels USEPA & IMO Emission Control Areas (ECA) –International Maritime Organization (IMO) Action (March 2010) NOx and SO2 requirements on ship near shore –2015 – 1000 ppm Maximum Sulfur Fuel –2016 – New Engine Standards – Tier 3 (80% reduction) –Existing Engines – (starting 2010) 15 – 20% NOx reductions OTC action –Letter of support for the USEPA and IMO Action - March 13,

Improvement in Summertime Average 8-hour Average Ozone Concentrations in 2020 Resulting from the Proposed Emission Control Area 5

Renewable Fuel Standard Part II Energy Independence and Security Act (December 2007) Required Changes –Increase volume of renewable fuel –Separate Requirements for: Cellulosic Biofuel – 16 billion gallons by 2022 Biomass-Based Diesel – 1 billion gallons by 2012 Advanced Biofuel – 21 billion gallons by 2022 Total Renewable Fuel – 36 billion gallons by 2022 –Minimum Lifecycle GHG reductions 6

Renewable Fuel Standards EPA RFS 2 –Proposed May 5th –Renewable fuel requirements starting in 2010 OTC is concerned about increased emissions –Projected NOx increased by ,00 tons from upstream production 71,000 tons from downstream use –Projected hydrocarbon (VOC) increase by ,000 tons from upstream production 35,000 tons from downstream use Need to address possible backsliding 7

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National: Aftermarket Catalysts Current Federal EPA Standard (1986) –25,000 mile durability requirement –30% NOx reduction California requirements –50,000 mile durability requirement –Vehicle certification emission standards (60% - 85% NOx reduction) with additional hydrocarbon requirements –Estimated cost increase above today’s pre-OBD converter of $200 per converter –Benefits: at least 282 TPD NOx reduction nationally 9

Aftermarket Catalyst Replacement OTC Statement - calling on the USEPA to update its policy regarding use, installation, and purchase of aftermarket catalytic converters. –OTC Annual Meeting, June 10 th 2009 Form Workgroup to Develop Program Implementation Materials to Submit to the USEPA 10

Measures Under Development Off-Shore Lightering of Ships Non-Road Vehicle and Equipment Idle Reduction Seaports 11

Off-Shore Lightering of Ships Transfer of bulk liquid cargo from a tank vessel to a service vessel (46CFR ) Occurs in Coast Guard Approved zones or anchorages in state waters and in off- shore Model: Delaware Regulation 1124 Status: –Identifying Locations & State Inventories –Developing Emission Estimates 12

Non-Road Vehicle and Equipment Idle Reduction Limits on idling time, e.g., 3 minutes Exemptions Status: –Examining Emission Factors –Developing Emission Estimates 13

Seaports Potential Categories –Ocean-Going Vessels –Cargo Handling Equipment –Locomotives (Rail) –Trucks and Vehicles –Harbor Vessels Status: –Compiling Emission Estimates –Strategy / Measure Definition 14

Measures Under Consideration Regional Fuel Diesel Inspection and Maintenance Vehicle Miles Traveled (VMT) Reductions 15

Regional Fuels Historic interest in single fuel in the northeast and mid-Atlantic states Low Carbon Fuel Standard (LCFS) effort underway 16

Diesel Vehicle Inspection / Maintenance Enhancing Opacity testing On-Board Diagnostic (OBD) system testing 17

Vehicle Miles Traveled (VMT) Reduction Strategies Tie with the Greenhouse Gas Strategies 18

Next Steps Continue to work on developing the strategies Continue to seek stakeholder input in strategy development Identify stakeholders for further discussions 19