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EPA’s Locomotive and Marine Diesel Proposal

March 27, 2007

2

Overview• Locomotives, Marine Diesels, and Air Quality

• Locomotives– What the rule covers– Background on locomotives and railroads

• Marine Diesels– What the rule covers– Background on marine diesels

• What We’re Proposing

• Benefits and Costs

• The Process for Completion

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Reconciling Diesels with the Environment: EPA’s National Clean Diesel Campaign

Nonroad Dieselsales over 650,000 / yr12B gallons / yrfinal rule 2004fully phased in 2015

Tier 2 Light-Dutyfinal rule 1999fully phased in 2009Diesels held to same stringent standards as gasoline vehicles

Heavy-Duty Highwaysales 800,000 / yr40B gallons / yrfinal rule 2000fully phased in 2010

Locomotive/Marinesales 40,000 (1,000 locomotives) / yr6B gallons / yrproposal 2007fully phased in 2017

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Diesel PM2.5

Total=78,000 tons/yr(diesel-fueled engines)

Mobile Source NOxTotal=4,500,000 tons/yr

The Last Big Mobile Source:1/3 of NOx and

2/3 of diesel PM in 2030

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Trucks 1991

Trucks 1991

1998199820042004

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

0 1 2 3 4 5 6 7 8 9 10

NOx (g/hp-hr)

PM

(g/h

p-h

r)

Current Locomotive/Marine Diesel Standards Are Comparable to Early 1990’s

Diesel Truck Standards

New locomotives todayNew locomotives today

New marine diesels today

Trucks 2010; nonroad machines 2014

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What the Rule Covers-- Locomotives

Switch

Line-Haul

Passenger

Sales ~700-1200 / yearTypically rebuilt every 5-7 years

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GE

EMD

EMD 710 series2-stroke Tier 2

GE Evolution series4-stroke Tier 2

North American Locomotive Market:2 Major Builders (GE & EMD)8 Major Customers (Class 1 railroads + Amtrak)

• BNSF, • Union Pacific, • CSX, • KC Southern, • Norfolk Southern, • Canadian Pacific,• Canadian National

Class 1 line-haul

Class 2&3

Passenger

Switcher

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What the Rule Covers--

Marine Diesels

Category 1 Commercial (<5 liter/cylinder)~15,000/year (about half are aux engines)

Recreational~15,000/year

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

<75 hp<10,000/year

gen sets sailboats

cruisers

yachts

auxiliary power for ocean-going vessels

workboats fishing vesselspolice boats

ferries

tugboats

Great Lakes freighters

Covered in separate initiative ocean-going ships

Category 3(>30 liter/cyl)

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Marine Diesel Engines

Category 1 Commercial

Recreational

Category 2<37 kW

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Marine Diesel Emissions– Not Just a Coastal ConcernU.S. Waterways (from American Waterways Operators, Inc., 1981)

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Technical Challenges to Applying Tier 4 Technologies to Smaller Vessels

• Engine compartments wrap around the engine• Limited space for additional technology• Bigger issue for recreational and small commercial

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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 required0.22 ~60% 7.4 - 8.0 ~20%

Remanufactured

Tier 2

2008 as available

2013 required0.10 50% 5.5 --

Newly-built Locomotive Standards

New Interim

(Tier 3) Standards2012 0.10 50% 5.5 --

New Long-Term

(Tier 4) Standards

PM 2015

NOx 20170.03 ~90% 1.3 80%

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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 >600kW2014-2017

0.03 ~90% 1.3 ~80%

Existing Marine Engines(requesting comment on

remanufacturing stds)

200820-60%

reduction

0-20%

reduction

14

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2010 2015 2020 2025 2030 2035 2040

Base 50-State

Control 50-State

Nationwide PM Reductions From the Proposal

PM

with current standards

with proposed standards

Calendar Year

Pa

rtic

ula

te M

atte

r (a

nnu

al t

ons)

15

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2005 2010 2015 2020 2025 2030 2035 2040

Base 50-State

Control 50-State

NOx

Nationwide NOx Reductions From the Proposal

with current standards

with proposed standards

Calendar Year

NO

x (a

nnu

al to

ns)

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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

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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