EPA’s New Program for Clean Nonroad Diesel Engines & Fuel

Chet FranceU.S. EPA

Clean Air Act Advisory Committee MeetingJune 24, 2004

Tier 2 Light-Duty Vehicle Program

2007/2010 Heavy-Duty Highway Program

Tier 4 NonroadDiesel Program

3 Milestone EPA Programs

vehicles

Heavy-duty highway

diesel fuel

1st step

Phase-In of New Mobile Source Programs

diesel fuel: 2nd step

NonroadTier 4

engines

Light-duty Tier 2

engines

gasoline

2000 2014 20162002 2004 2008 2010 20122006

Impact of Mobile Source Programs on Diesel PM2.5

0

100,000

200,000

300,000

400,000

500,000

600,000

1990 1995 2000 2005 2010 2015 2020 2025 2030

highway

nonroad

locomotive & marine

tons / year

Impact of Mobile Source Programs on NOx Emissions

0

2

4

6

8

10

12

14

16

1990 1995 2000 2005 2010 2015 2020 2025 2030

highway gasoline

highwaydiesel

nonroad diesel

other mobile sources

million tons / year

Designing a Program to ControlNonroad Diesel Emissions Presented

Some Challenges Engines vary from 3 to 3000 hpUsed in thousands of machine modelsHigh hurdles for emissions controls--

Users demand rugged machines Must work in extreme conditions

Nonroad diesel fuel is currently unregulated Has ~3000 ppm sulfur (10 x more than highway fuel)Harms sulfur-sensitive control technologies

combine 285 hplight tower 10 hp

skid steer loader 80 hp

off-highway truck1000 hp

2WD tractor130 hp

backhoe loader 80 hp

genset 20 hp

utility vehicle 18 hp

Wide Range of Diesel Machines

Nonroad Diesel Industry is Very Diverse

~60 nonroad(very global market)

~10 highway(mostly U.S.)

~800 nonroad equipment makers (many are small businesses)

~16 truck makers

engine companies OEMs models

~6000 nonroadmachine models

~200 truck models

Program Considerations

Treat the diesel fuel and engine as a system.Transfer advanced technology from 2007 highway program to nonroad applications.Get timely, large emission reductions to help States’ attainment and maintenance plans.Provide 6-10 years lead time to deal with technical challenges and diversity of industries & products covered.Include flexibility provisions to minimize costs.Align with implementation of 2007 highway diesel program (put in place by EPA in 2001).

Nonroad Diesels:An Effective Collaboration

Program success keyed to extensive outreach done by EPA with all stakeholder groups

State and local governmentsEnvironmental and public health organizationsEngine and equipment manufacturersOil industryEmissions control manufacturers

Final rule has received widespread support

A Systems Approach--Fuel & Engines

Patterned after the 2007 highway diesel rule:Diesel aftertreatment

Stringent new standards for NOx and PMReductions of >95% PM, ~90% NOx

Also new test requirements to ensure control in use

Fuel sulfur reduced to 15 ppm in 2 stepsEnables the aftertreatment technologiesAND gets large immediate sulfate PM reductions from existing fleetAND lowers engine maintenance costs

sulfur acidifies oil, corrodes engine partsbenefits owners of new and old equipment

EPA Regulation of Diesel Fuel Sulfur

up to 20% of volume (100% for small refiners)

500 ppm(since1993) 15 ppm sulfur

locomotive& marine fuel

not regulated 500 ppm 15 ppm

Regulations apply June 1 at refinery, Aug 1 at terminal, Oct 1 at retailer

for transmix, small refiner fuel, and thru use of credits, except in Northeast & Alaska(expiration date not yet set for 500 ppm locomotive & marine transmix)

2006 2007 2008 2009 2010 2011 2012 2013 2014

highwaydiesel

(79% oftotal)

nonroad,locomotive

& marinediesel(21%)

88

77

66

55

44

33

22

11

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

NOxNOx(g/hp-hr)

PM(g/hp-hr)

<25 hp 25-75 hp 75-175 hp 175-750 hp >750 hp

PM

NOxNOx

0.30

0.02

3.5*

5.6*

0.01 0.01 0.030.30 0.30

Tier 4 Tier 4 Engine StandardsEngine Standards

0.5

2.6

0.02

generator sets

Today’s standards

* This is a combined NOx + hydrocarbon standard

A vivid demonstration of what this is all about

Unused test filter

Typical test filter –current standards

Test filter –Tier 4 PM standards

Cost ImpactsVary with Engine Size and Equipment Application

Skid SteerLoader33 hp

Backhoe76 hp

Dozer175 hp

Off-HighwayTruck

1000 hp

Long-term costof meetingnew standards

$790 $1200 $2560 $4670

Typical retail price ofthis equipment $20,000 $49,000 $238,000 $840,000

Diesel Fuel Refiner, Distributor, & User Impacts

Average fuel cost (refining & distribution): 6-7 ¢/galMaintenance savings to nonroadequipment owner from cleaner fuel: ~3 ¢/galNet consumer cost of fuel change: 3-4 ¢/gal

0

50,000

100,000

150,000

200,000

250,000

2000 2005 2010 2015 2020 2025 2030

Nationwide PM Reductions From Nonroad Diesels

with newstandards

withoutnewstandards

PM

PM2.5 tons/year

200,000

400,000600,000800,000

1,000,0001,200,0001,400,000

1,600,0001,800,000

2000 2005 2010 2015 2020 2025 2030

with newstandards

withoutnewstandards

NOx

Nationwide NOx Reductions From Nonroad Diesels

NOx tons/year

0 10,000 20,000

lost work days

hospital admissions

ER visits bykids w/ asthma

nonfatalheart attacks

premature deaths

# prevented annually (in 2030)

12,000

15,0006,000

8,9001 million

Nonroad Diesel Health Benefits

$80B annual benefits vs $2B cost (in 2030)

Controlling Emissions From Locomotives

and Marine Diesel Engines

Mobile Source Inventories in 2030

Locomotive& marine

27%

locomotive& marine

45%

nonroaddiesel

highway

nonroaddiesel

highway

Diesel PM2.5

NOx

Potential reductions on the order of:~25,000 tons/yr of PM~900,000 tons/yr of NOx

Compares to nonroad rule reductions of:~129,000 tons/yr of PM738,000 tons/yr of NOx

Locomotive & Marine Diesels Advance Notice

Advance Notice signed May 11Targets high-efficiency aftertreatment as early as 2011 Patterned after highway and nonroad programsNot ocean-going vessels (separate EPA action)

Comment period open to end of August

Starting to engage stakeholders in discussions

Proposal planned for mid-2005