EPA s Proposal for Nonroad Diesel Engines & Fuel. Chet France, U.S. EPA STAPPA / ALAPCO Spring Membership Meeting May 4, 2003
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1 EPA s Proposal for Nonroad Diesel Engines & Fuel Chet France, U.S. EPA STAPPA / ALAPCO Spring Membership Meeting May 4,
2 2 Presentation Overview Scope of the Proposal Proposal Overview Cost Impacts Benefits Anticipated Issues Next Steps
3 Scope of the Proposal Proposal applies to nonroad diesels of all sizes-- 3 to 3,000 hp Used in a diversity of applications-- construction, farming, mining, industrial Proposed fuel provisions apply to fuel used in nonroad diesels, locomotives, and marine engines But not to home heating fuel Nonroad fuel is not currently regulated by EPA Proposal addresses serious health and welfare impacts from nonroad diesel fuel and equipment-- ozone, fine PM diesel exhaust is likely to be carcinogenic to humans These sources currently contribute 44% of total mobile source diesel PM and 12% of total mobile source NOx nationwide. Their contributions range even higher in many urban areas and will grow in the future. 3
4 skid steer loader or Bobcat 25 hp skid steer loader 80 hp generator or genset 20 hp skid steer loader 75 hp minitrack loader 20 hp transport refrigeration unit or TRU 35 hp mini-excavator 40 hp 4
5 motor grader 200 hp crawler dozer or track-type tractor 200 hp light tower 10 hp off-highway truck 1000 hp crawler dozer 1100 hp asphalt compactor 80 hp 5
6 6 2WD tractor 130 hp combine 300 hp square baler 60 hp 4WD tractor 250 hp
7 7 A Very Diverse Sector Unique engine technology issues Extreme environmental conditions Huge variety of operating patterns Ruggedness demanded by users is often achieved by oversizing-- results in cool exhaust that makes catalyst-based aftertreatment challenging. Need for widespread active PM trap regeneration Low-load operation is especially challenging for NOx adsorbers Diverse industry ~60 engine manufacturers, very global (vs. ~10 on-highway, mostly U.S.) >800 equipment manufacturers, many very small (vs. ~16 for highway trucks) >6000 equipment models (vs. <200 truck models) Equipment redesign impacts and workload are important considerations
8 8 Program Considerations Treat fuels and engines as a system Transfer advanced technology from 2007 highway program to nonroad applications Provide 6-10 years lead time for fuels and engines (similar to that given in highway program) Costs (capital, operating) and resources (engineering, construction) No interference in implementation of 2007 highway diesel program
9 Proposal Overview A systems approach of reducing nonroad fuel sulfur levels to enable advanced emission control technology similar to 2007 diesel truck and fuel rule 500 ppm maximum sulfur nonroad diesel fuel in 2007 Yields large immediate sulfate PM & SOx reductions from existing fleet additional PM reductions from interim Tier 4 PM standards in ppm nonroad fuel in 2010 to enable advanced technology engine standards Engine standards representing reductions of >95% PM and ~90% NOx Standards phase in starting in 2008, fully phased in by 2014 Enhanced certification test requirements to ensure in-use emission reductions 9
10 Engine Program Provisions Standards phase-in beginning 2008, fully phased in by 2014: PM standards for <75 hp in 2008 (~1/2 of engines sold) ~50% PM reduction with oxidation catalysts or engine optimization PM filter-based standards for all >25 hp engines starting 2011 NOx adsorber-based standards for all >75 hp engines starting 2011 Phase-in structured to: optimize technology transfer from 2007 highway program take advantage of lower sulfur fuels ppm S fuel in 2007 and 15 ppm fuel in 2010 address workload concerns Supplemental test requirements similar to highway program -- Transient testing, including weighted cold start test Not-To-Exceed standards and test requirements Closed crankcase requirement for all engines Incentive program for early introduction and Blue Sky (extra clean) engines 10
11 11 Proposed Engine Standards Program 500 ppm NR fuel 15 ppm NR fuel \ \ hp <25 Tier 1 PM (reductions w/oxidation catalysts or engine-based control) PM (reduction w/oxidation catalysts or engine-based control) PM: 100% NOx existing Tier 2 existing Tier 3 PM:100% NOx: 50% 50% 100% PM: 100% NOx: 50% 50% 50% 100% >750 Tier 1 existing Tier 2 PM &NOx: 50% 50% 50% 100% Percentages indicate portion of sales required to meet advanced emission control technology standards
12 Proposed Fuel Coverage & Standards Covers: #1 & #2 distillate fuels Used in nonroad, locomotive, or marine (NRLM) diesels Not heating oil or jet fuel Proposed fuel sulfur standards: 500 ppm sulfur beginning June 1, 2007 for NRLM diesel fuel 15 ppm sulfur beginning June 1, 2010 for nonroad diesel fuel Locomotive and marine would remain at 500 ppm Considering extending 15 ppm std to L&M as well Propose to extend highway diesel cetane index/aromatics standard to NRLM diesel fuel 12
13 13 Locomotives and Marine Diesel Engines and Fuel These engines contribute significantly to PM and NOx emissions inventories in many urban areas. Their contribution will grow over time compared to other mobile sources. For example, in 2020 they will contribute-- 30% of mobile source diesel PM, 25% of mobile source NOx. Reducing fuel sulfur to 500 ppm will provide sulfate PM and SOx reductions from the in-use fleet. We are also taking comment on and seriously considering reducing locomotive and marine fuel sulfur to 15 ppm in this rule. Advance NPRM planned for Spring 2004 to begin work on applying advanced aftertreatment technologies to these sources.
14 Provisions to Reduce Economic Impacts Designed to provide substantial implementation flexibility with little effect on overall program benefits. Sufficient lead time given to develop and produce advanced emissioncontrol systems. Engine manufacturers that are small businesses are given an additional 1 to 3 years to meet standards. Small refiners are given 3-4 years of additional lead time. Early credits to encourage companies to meet requirements early. Averaging, Banking, & Trading provisions are maintained in program. Additional time given to equipment manufacturers for small volume products. Companies may petition EPA for relief if the burden of the regulations would cause severe economic hardship. 14
15 Cost Impacts for Engine & Equipment Manufacturers Costs vary with engine size and equipment application. For the majority of equipment models, the cost of meeting the standards will be ~1-2% compared with typical retail prices. Costs could range higher for some equipment. Some typical examples: Skid Steer Loader (Bobcat) 33 hp Backhoe 76 hp Dozer 175 hp Off-Highway Truck 1000 hp Cost of meeting proposed standards Typical retail price of this equipment $760 $1,210 $2,590 $6,780 $13,500 $50,000 $235,000 $700,000 15
16 Diesel Fuel Refiner, Distributor, & User Impacts Average fuel cost (refining, distribution, & lubricity additive): Maintenance savings to nonroad equipment operator from cleaner fuel: /gal Net consumer cost of fuel change: 1.5 /gal Fuel costs expected to vary by region of the country (3.0 to 8.9 /gal) 16
17 17 Nationwide PM Reductions From Nonroad Diesels (PM2.5 tons/year) 250, ,000 without proposed standards 150, ,000 with proposed standards 50,
18 Nationwide NOx Reductions From Nonroad Diesels (tons/year) 1,800,000 1,600,000 1,400,000 1,200,000 without proposed standards 1,000, , , , ,000 with proposed standards
19 Benefits The program will prevent annually: 9,600 premature deaths 16,000 nonfatal heart attacks 5,700 cases of chronic bronchitis 8,300 hospital admissions 14,000 annual acute bronchitis attacks in children 260,000 respiratory symptoms in children (related to PM) nearly 1 million lost work days among adults because of their own symptoms 6 million days where adults have to restrict their activities due to respiratory symptoms Comparable to benefits of 2007 heavy-duty highway program Will also help improve visibility ($1.9 billion/year benefit) Overall, on a dollar basis: $81 billion/year (in 2030) 19
20 20 Benefits Greatly Outweigh Costs $81 billion/year annual benefit greatly outweighs $1.5 billion/year program cost Cumulatively (NPV through 2030): $550 billion in benefits vs. $17 billion costs Cost Effectiveness compares favorably with other recent rules: $810 per ton NOx+hydrocarbons (2007 highway: $2100) $8,700 per ton PM (2007 highway: $13,600) $200 per ton SOx
21 Small Engines Anticipated Issues Cost issues for PM/NOx advanced aftertreatment We are proposing a technology review for <75 hp in 2007 Large Engines (>750 hp) A very low-volume market segment -- redesigns are costly Engine manufacturers want more time Fuel Implementation Refiners have concerns about program structure (which we have designed to protect the highway diesel fuel program) Locomotive & marine diesel engines and fuel Proposal seeks comment on taking locomotive/marine fuel to 15 ppm S along with nonroad fuel in 2010 Also discusses plans for future action on locomotive and marine diesel engine standards 21
22 Next Steps Public Hearings New York June 10 Chicago June 12 Los Angeles June 17 Comment period open until August 20 Final rule in Spring 2004 Advance notice for new locomotive and marine diesel engine standards 22
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