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EPA Mobile Source Rule Update WESTAR Spring Business Meeting. 3 April 2007. EPA Mobile Source Rule Update. Diesel locomotives and marine engines Ocean-going vessels Small lawn & garden gasoline engines and recreational gasoline marine engines Mobile source air toxics

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epa mobile source rule update
EPA Mobile Source Rule Update
  • Diesel locomotives and marine engines
  • Ocean-going vessels
  • Small lawn & garden gasoline engines and recreational gasoline marine engines
  • Mobile source air toxics
  • Renewable fuels standard
slide4

Reconciling the Transportation Sector With the Environment:A Comprehensive and Collaborative Approach

Highway

Common Aspects--

  • Systems approach– low sulfur fuel enables clean technologies
  • Very large environmental benefits
  • Responsive to clean air goals

Light-duty Vehicles (1999)

Heavy-duty Vehicles (2001)

Farm, Industrial, Construction

Locomotive/ Category 1

And 2 Diesel Marine Proposal

Clean Nonroad Diesel (2004)

locomotive diesel marine a large mobile source 1 3 of nox and 2 3 of diesel pm in 2030
Locomotive & Diesel Marine - a large mobile source:1/3 of NOx and 2/3 of diesel PM in 2030

Diesel PM2.5

Total=78,000 tons/yr

(diesel-fueled engines)

Mobile Source NOx

Total=4,500,000 tons/yr

what the rule covers locomotives
What the Rule Covers-- Locomotives

Line-Haul

Switch

Sales ~700-1200 / year

Typically rebuilt every 5-7 years

Passenger

what the rule covers marine diesels

Covered in separate initiative

Category 1 Commercial (<5 liter/cylinder)

~15,000/year (about half are aux engines)

What the Rule Covers--Marine Diesels

<75 hp

<10,000/year

workboats

fishing vessels

police boats

Category 2 (5 to 30 liter/cyl)<300/year

gen sets

sailboats

auxiliary power for ocean-going vessels

Recreational

~15,000/year

ferries

cruisers

tugboats

Category 3

(>30 liter/cyl)

yachts

Great Lakes freighters

ocean-going ships

proposed locomotive standards

locomotive

groups

date

PM

NOx

standard

(g/hp-hr)

reduction

%

standard

(g/hp-hr)

reduction

%

Remanufactured Locomotive Standards

Remanufactured

Tier 0 & 1

2008 as available

2010 required

0.22

~60%

7.4 - 8.0

~20%

Remanufactured

Tier 2

2008 as available

2013 required

0.10

50%

5.5

--

Newly-built Locomotive Standards

New Interim

(Tier 3) Standards

2012

0.10

50%

5.5

--

New Long-Term

(Tier 4) Standards

PM 2015

NOx 2017

0.03

~90%

1.3

80%

Proposed Locomotive Standards
proposed marine diesel standards

date

PM

NOx

standard

(g/hp-hr)

reduction

%

standard

(g/hp-hr)

reduction

%

New Interim (Tier 3)

2009-2014

varies by

engine size

~50%

varies by

engine size

~20%

New Long-Term (Tier 4)

Commercial >600kW

2014-2017

0.03

~90%

1.3

~80%

Existing Marine Engines

(requesting comment on

remanufacturing stds)

2008

20-60%

reduction

0-20%

reduction

Proposed Marine Diesel Standards
slide10

Nationwide PM Reductions From the Proposal

with current standards

Particulate Matter (annual tons)

PM

with proposed

standards

Calendar Year

slide11

Nationwide NOx Reductions From the Proposal

with current standards

NOx (annual tons)

NOx

with proposed

standards

Calendar Year

proposal annual costs and benefits in 2030

PM

NOx

Cost

$159M

$446M

Inventory reduction, tons

28,000

765,000

Cost per ton

$5560

$580

Unit cost as % of typical new locomotive price

(similar for marine; varies vessel to vessel)

3%

Monetized benefits

$12B

Benefit to cost ratio

20:1

Proposal Annual Costs and Benefits in 2030
the process toward completion
The Process Toward Completion
  • Proposal signed by Administrator Johnson March 1
  • Comment period open for 90 days after publication (~July 1st)
  • Hearings in Seattle May 8 and Chicago May 10
  • Targeting final rule before the end of the year
ocean going vessels

Ocean-going Vessels

- IMO Deliberations

- EPA OGV Rulemaking

2030 us mobile source pm2 5 inventory 250 000 tons total
2030 US Mobile Source PM2.5 Inventory(250,000 tons total)

Recent detailed investigation by US EPA, California, and University of Delaware scientists indicate ocean-going marine vessel PM inventories for the US are low by as much as a factor of 3 for the baseline year 2001, and by as much as a factor of 5 for 2020

2030 us mobile source nox inventory 4 5 million tons total
2030 US Mobile Source NOx Inventory(4.5 million tons total)

Recent detailed investigation by US EPA, California, and University of Delaware scientists indicate ocean-going marine vessel NOx inventories for the US are low by as much as a factor of 3 for the baseline year 2001, and by as much as a factor of 5 for 2020

marine emission standards
Marine Emission Standards
  • There are two sources of standards that apply to marine diesel engines in the U.S.
    • International Maritime Organization (IMO)
      • Annex VI to the International Convention on the Prevention of Pollution from Ships
    • U.S. Federal standards
      • Promulgated by EPA under the Clean Air Act
us epa regulation for category 3 engines
US EPA Regulation for Category 3 Engines
  • 2003 US EPA Regulation: 2-part approach
    • Near term standards: Equivalent to the International Maritime Organizations Tier 1 standards
    • Long-term standards: Commitment to finalize an additional tier of standards in the future
  • EPA is committed to taking additional regulatory action under the Clean Air Act
    • Regulations stipulate a final rulemaking action by 4/27/07
  • We expect to issue an advanced regulatory announcement within the next few months
  • EPA is also committed to the IMO Annex VI (air pollution) negotiation process
background on imo and us positions
Background on IMO and US Positions
  • July 2005 – IMO agreed to deliberate on potential amendments to Annex VI
  • EPA, as part of the US Gov’t, has been very active on air pollution issues at IMO
    • Consistently advocated for stringent standards based on advanced emission technology solutions
  • US Gov’t has submitted a proposal to IMO which outlines an approach for long-term reductions in PM, NOx and SOx from OGVs
  • We expect the IMO deliberations to continue into 2008
key elements of the us concept
Key Elements of the US Concept
  • NOx standards for new build engines > 30 l/cyl (Category 3)
    • NOx reductions for pre-2000 engines
    • Interim NOx standards for new engines, 2011-2015
    • Long-term NOx standards for new engines based on advanced technologies (i.e., selective catalytic reduction), 2016+
      • Applicable to engines operating in defined areas, e.g., 200 miles from shore for specific regions
  • PM & SOx:
    • Performance standard applicable to all vessels operating in defined areas [x miles from shore] effective in [2011]
      • SOx level of [0.4] g/kW-hr
      • PM limit similar to existing US EPA Tier 2 diesel marine (engine-out standards)
    • Compliance could be through the use of low-sulphur fuel ( ~1,000 ppm S) and/or the use of SOx scrubbing technology
  • Next Steps – US position to be discussed at IMO meeting later this month
epa s current small gasoline engine standards
EPA’s Current Small Gasoline Engine Standards
  • Small engines: <25 horsepower, used in lawn & garden, and industrial equipment (e.g, mowers, chain saws, generators)
  • Phase 1 standards took effect in 1997
    • Standards represented a 33% reduction in HC+NOx from uncontrolled levels for all engines
  • Phase 2 standards are phased-in from 2001-07
    • Non-handheld (NHH) standards represented a 60% HC+NOx reduction beyond Phase 1 levels
      • Standards were based on 4-stroke engine improvements
    • Handheld (HH) standards represented a 70% HC+NOx reduction beyond Phase 1 levels
      • Standards were based on application of catalysts to most 2-stroke engines
      • ~2/3 of new HH engines sold in the United States have catalysts currently
california tier 3 requirements
California Tier 3 Requirements
  • California adopted Tier 3 standards for small gasoline engines
    • The reductions from the California exhaust standards represent a reduction of 35% from EPA’s Phase 2 exhaust program
    • Standards based on catalysts for non-handheld products
  • ARB also adopted evaporative emissions controls
    • Tank, hose, and permeation control
    • Canister to control diurnal, running loss, and hot soak.
epa s plans for new phase 3 standards
EPA’s Plans for New Phase 3 Standards
  • In 2004, Congress directed EPA to propose new standards for spark-ignition (gasoline) engines < 50 hp
  • We are pursuing new standards for the following engine categories:

Non-Handheld Lawn/Garden

Handheld Lawn/Garden

Outboard and Personal Watercraft (PWC) marine engines

Sterndrive and inboard marine engines

  • For lawn/garden engines, we plan to adopt California’s Tier 3 standards starting with 2011-2012 model year nonhandheld engines
    • Also proposing tank permeation, fuel line, and diurnal emissions standards
gasoline marine standards
Gasoline Marine Standards
  • Outboard/Personal Watercraft: adopt California standards in 2009
    • 65% reduction in HC+NOx
  • Sterndrive/Inboard: Adopt California HC+NOx standard in 2009
    • 70% reduction in HC+NOx (catalyst forcing)
    • Substantial reductions in CO emissions
    • One manufacturer has certified for California program and is now selling
  • Marine fuel evaporative emissions currently uncontrolled
    • Proposing tank permeation, fuel line, and diurnal emissions standards
small gasoline engines and gasoline marine estimated impacts and next steps
Small Gasoline Engines and Gasoline MarineEstimated Impacts and Next Steps
  • 2030 Annual Emission Reduction Estimates
    • 630,000 tons VOC
    • 98,000 tons NOx
    • 6,300 tons PM
  • NPRM expected within a few weeks
  • Final rule targeted for early 2008
why an msat2 rule
Why an MSAT2 Rule?
  • Section 202(l) of the Clean Air Act
    • Requires standards to control toxics from motor vehicles and/or motor vehicle fuels
      • Greatest emissions reduction achievable with technology, considering cost, lead time, etc.
  • First MSAT rule in 2001
    • Toxic emissions standard for gasoline
    • Identified data gaps, committed to research
    • Committed to additional rulemaking
  • MSAT 2 Final Rule Published February 26, 2007
msat2 final rule elements
MSAT2 Final Rule Elements
  • National benzene standards for gasoline
  • Cold VOC exhaust standards and evaporative standards for light-duty vehicles
  • Standards for portable fuel containers
gasoline benzene content standards
Gasoline Benzene Content Standards
  • 0.62 vol% annual average standard
    • 2004 average benzene content: 1 vol%
    • Applies to each refinery
    • Nationwide banking and trading
    • Effective in 2011
  • 1.3 vol% maximum average
    • Must be met with actual production (no credits)
    • Effective in 2012
vehicle standards
Vehicle Standards
  • New cold temp hydrocarbon standards
    • Vehicles are certified at 75º F, but recent data show emissions sharply increase at 20º F
    • New std. will reduce benzene, 1,3-butadiene, formaldehyde, etc.
  • Evaporative standards
    • Harmonized with California
    • Codifies approach manufacturers are already taking
  • Phase in from 2009-2015
portable fuel container standard
Portable Fuel Container Standard
  • Gas cans, diesel and kerosene containers
  • Hydrocarbon standard starting in 2009
  • Reduces evaporation, permeation, spillage
    • Durable permeation barriers
    • Automatically closing spouts
    • Well-sealed cans
  • Consistent with revised California program
  • Attached garages contribute significantly to personal exposure to benzene
msat final rule impacts
MSAT Final Rule Impacts
  • Reduces MSATs by 330,000 tons in 2030
    • Including 61,000 tons of benzene
  • Toxic emissions from light-duty vehicles will be reduced 80% between 1999 and 2030
    • As a result of this proposal and other standards in place
  • Criteria pollutant co-benefits
    • 1.1 million tons of VOC reduced in 2030
      • From vehicles and gas cans
    • 19,000 tons of direct PM-2.5 reduced
      • From vehicles
the rfs the program basics
The RFS – The Program Basics
  • The Energy Policy Act (EPAct) of 2005 specified renewable fuel volumes
    • 2006: 4.0 billion gallons/yr
    • 2007: 4.7
    • 2008: 5.4
    • 2009: 6.1
    • 2010: 6.8
    • 2011: 7.4
    • 2012: 7.5
    • 2013+: Same percent of renewables for 2012 (0.25 billion gal of which must be cellulosic ethanol)
  • Each year EPA must convert RFS into percent of gasoline production standards that apply to refiners, importers, gasoline blenders.
slide38

Ethanol is Sweeping the Nation

If 100% of all Gasoline is E10

76% of all Gasoline @ E10

relative value of different renewables
Relative Value of Different Renewables
  • EPAct specifies that 1 gal of cellulosic ethanol counts as 2.5 gallons for compliance purposes.
  • We proposed to base the “Equivalence Value” or credit for other renewables on volumetric energy content in comparison to ethanol (adjusted for renewable content):
    • Corn-ethanol: 1.0
    • Cellulosic biomass ethanol: 2.5
    • Biodiesel (alkyl esters): 1.5
    • Renewable diesel: 1.7
    • Biobutanol: 1.3
  • Sought comment on life cycle energy, petroleum, or green house gas (GHG) emissions as the basis for these values.
what the country may look like in 2009
What The Country May Look Like in 2009

9.6 Bgal Ethanol

100% E10

50-100% E10

<10% E10

10-50% E10

Not Pictured

AK: 0% ETOH

HI: 100% ETOH

DC: 100% ETOH

emissions air quality
Emissions & Air Quality*
  • Impacts will vary by region, since renewable fuel use varies significantly

* Incremental Impacts in 2012 compared to 2004 reference case

next steps
Next Steps
  • FRM expected out within a few weeks
  • Implementation workshop for industry
    • Jointly sponsored by EPA, RFA, ACE, NBB, API, NPRA, etc.
  • Implementation – the 3 Rs
    • Registration, Recordkeeping, Reporting
  • What’s Next ?
    • The President has already called for an expansion of the RFS program
      • 35 Billion gallons by 2017
      • Renewable fuels and Alternative fuels
slide45

I

II

V

III

Petroleum Administration for

Defense Districts (PADDs)

IV

costs of renewable fuels
Costs of Renewable Fuels

Production & Distribution Costs

  • Increases in the use of renewable fuels are expected to add 0.3 - 1 c/gal to the cost of gasoline for the nation as a whole (at $47/bbl crude)*
  • In the Final Rulemaking also assessing impacts on
    • Agricultural sector economy
    • Energy Security

* Incremental Impacts in 2012 compared to 2004 reference case