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    • Abstract: Final Reportof theSmall Business Advocacy Review Panelon EPA’s Planned Proposed RuleControl of Emission of Air Pollution From Land-BasedNonroad Compression Ignition EnginesDecember 23, 2002 Nonroad Diesel Panel Report

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Final Report
of the
Small Business Advocacy Review Panel
on EPA’s Planned Proposed Rule
Control of Emission of Air Pollution From Land-Based
Nonroad Compression Ignition Engines
December 23, 2002
Nonroad Diesel Panel Report
December 23, 2002
Table of Contents
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2. Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.1 Regulatory History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.1.1 Nonroad Diesel Engines and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.1.2 Nonroad Diesel Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2 Description of Rule and its Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2.1 Statutory Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2.2 General Rule Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3 Related Federal Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.4 Related European Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.4.1 Current European Union Non-Road Diesel Regulation . . . . . . . . . . . . . . . . . 7
2.4.2 EU Staff Proposal to Further Amend 97/68 . . . . . . . . . . . . . . . . . . . . . . . . . 8
3. Overview of Proposal Under Consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Potential Requirements and Guidelines of the Proposal . . . . . . . . . . . . . . . . . . . . . . 11
3.1.1 Nonroad Diesel Engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1.2 Nonroad Diesel Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.1.3 Nonroad Diesel Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.2 Options Considered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.2.1 Alternative Technological Approaches for Nonroad Diesel Engines and
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.2.1.1 Technology Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.2.2 Burden Reduction Measures for Nonroad Diesel Engines and Equipment . . 25
3.2.3 Burden Reduction Measures for Nonroad Diesel Fuels . . . . . . . . . . . . . . . . 26
3.2.3.1 Refiners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.2.3.2 Fuel Distributors/Marketers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4. Applicable Small Entity Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
5. Small Entities That May Be Subject to the Proposed Regulation . . . . . . . . . . . . . . . . . . . . . 31
5.1 Engine and Equipment Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
5.1.1 Engine Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
5.1.2 Equipment Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
5.2 Nonroad Diesel Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
5.2.1 Fuel Refiners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
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5.2.2 Fuel Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
6. Summary of Small Entity Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
6.1 Small Entity Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
6.2 Summary of EPA’s Outreach Meeting with Potential Small Entity Representatives on
Nonroad Diesel Engines, Equipment, and Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
6.3 Summary of EPA’s Outreach Meeting with Small Entity Representatives on Nonroad
Diesel Engines, Equipment, and Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
7. List of Small Entity Representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
8. Summary of Comments from Small Entity Representatives . . . . . . . . . . . . . . . . . . . . . . . . . . 37
8.1 Number and Types of Entities Affected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
8.2 Potential Reporting, Recordkeeping, and Compliance . . . . . . . . . . . . . . . . . . . . . . . 37
8.3 Related Federal Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
8.4 Regulatory Flexibility Alternatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
8.4.1 Engine and Equipment Manufacturer Alternatives . . . . . . . . . . . . . . . . . . . . 39
8.4.1.1 Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
8.4.1.2 Additional Compliance Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
8.4.1.3 Technology Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
8.4.1.4 Current Flexibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
8.4.1.5 Hardship Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
8.4.2 Refiner and Fuel Marketer/Distributor Alternatives . . . . . . . . . . . . . . . . . . . 41
8.4.2.1 Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
8.4.2.2 Credit Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
8.4.2.3 Hardship Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
8.4.2.4 Gasoline Sulfur Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
8.5 Additional Comments from SERs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
8.5.1 Engine and Equipment Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
8.5.1.1 Technology Transfer from Highway to Nonroad . . . . . . . . . . . . . . . 42
8.5.1.2 Costs of Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
8.5.1.3 Timing of Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
8.5.1.4 Competitive Disadvantage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
8.5.1.5 Harmonization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
8.5.1.6 Availability of Engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
8.5.1.7 Products Used in Niche Markets . . . . . . . . . . . . . . . . . . . . . . . . . . 46
8.5.1.8 PM Aftertreatment Market Acceptance . . . . . . . . . . . . . . . . . . . . . 46
8.5.2 Refiners and Fuel Marketers/Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . 46
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8.5.2.1 Off-Specification Fuel and Misfueling . . . . . . . . . . . . . . . . . . . . . . . 46
8.5.2.2 Costs of Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
9. Panel Findings and Discussions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
9.1 Number and Types of Entities Affected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
9.2 Potential Reporting, Record Keeping, and Compliance . . . . . . . . . . . . . . . . . . . . . . 47
9.3 Related Federal Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
9.4 Regulatory Flexibility Alternatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
9.4.1 Engine Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
9.4.1.1 Regulatory Flexibility Options for Small Engine Manufacturers . . . . . 49
9.4.1.2 Hardship Provisions for Small Engine Manufacturers . . . . . . . . . . . . 50
9.4.1.3 Other Small Engine Manufacturer Issues . . . . . . . . . . . . . . . . . . . . . 50
9.4.1.4 Consideration of Engine Regulatory Approaches . . . . . . . . . . . . . . . 50
9.4.1.4.1 Engines with Under 50 kW . . . . . . . . . . . . . . . . . . . . . . . 51
9.4.1.4.2 General Discussion of Approaches 1-4:52 Applicability
of Aftertreatment Devices . . . . . . . . . . . . . . . . . . . . . . . . . . 52
9.4.2 Equipment Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
9.4.2.1 Regulatory Flexibility Options for Small Equipment Manufacturers . 54
9.4.2.2 Hardship Provisions for Small Equipment Manufacturers . . . . . . . . . 55
9.4.3 Fuel Refiners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
9.4.3.1 Delayed Standards for Small Refiners . . . . . . . . . . . . . . . . . . . . . . . 56
9.4.3.1 Incentives for Early Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
9.4.3.3 Hardship Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
9.4.4 Nonroad Diesel Fuel Distributors and Marketers . . . . . . . . . . . . . . . . . . . . 59
10. Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix A: List of Materials SBAR Panel Shared With SERs During Panel Outreach
Appendix B: Written Comments the SBAR Panel Received from SERs
Appendix C: Summary of SBAR Panel’s First Small Entity Outreach Meeting
Appendix D: Summary of SBAR Panel’s Second Small Entity Outreach Meeting
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1. INTRODUCTION
This report is presented to the Small Business Advocacy Review Panel (SBAR Panel or Panel)
convened for the proposed rulemaking on the Control of Emissions of Air Pollution From Land-Based
Nonroad Compression Ignition Engines, currently being developed by the U.S. Environmental
Protection Agency (EPA). Under Section 609(b) of the Regulatory Flexibility Act (RFA) as amended
by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), a Panel is required to
be convened prior to publication of the initial regulatory flexibility analysis (IRFA) should an agency be
required to prepare that document under the RFA. In addition to EPA’s Small Business Advocacy
Chair, the Panel consists of the Deputy Office Director of EPA’s Office of Transportation and Air
Quality (OTAQ), the Administrator of the Office of Information and Regulatory Affairs within the
Office of Management and Budget, and the Chief Counsel for Advocacy of the Small Business
Administration.
This report includes the following:
• background information on the proposed rule under development;
• information on the types of small entities that would be subject to the proposed rule;
• a summary of the Panel’s outreach activities; and
• the comments and recommendations of the Small Entity Representatives (SERs).
Section 609(b) of the RFA directs the Panel to report on the comments of small entity
representatives and make findings on issues related to identified elements of the IRFA under section
603 of the RFA. Those elements of an IRFA are:
• a description of and, where feasible, an estimate of the number of small entities to which the
proposed rule will apply;
• projected reporting, record keeping, and other compliance requirements of the proposed rule,
including an estimate of the classes of small entities which will be subject to the requirements
and the type of professional skills necessary for preparation of the report or record;
• an identification to the extent practicable, of all other relevant Federal rules which may
duplicate, overlap, or conflict with the proposed rule;
• any significant alternatives to the proposed rule which accomplish the stated objectives of
applicable statutes and which minimize any significant economic impact of the proposed rule on
small entities; and
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• any impacts on small entities of the proposed rule or significant alternatives to the proposed
rule.
The purpose of the Panel is to gather information to identify potential impacts on small
businesses and to develop options to mitigate these concerns. Once completed, the Panel report is
provided to the Agency and included in the rulemaking record. In light of the Panel report, and where
appropriate, the Agency is to make changes to the draft proposed rule, to the IRFA for the proposed
rule, or to the decision on whether an IRFA is required.
It is important to note that the Panel’s findings and discussion will be based on the information
available at the time the final Panel report is drafted. EPA will continue to conduct analyses relevant to
the proposed rule, and may develop or obtain additional information during the remainder of the rule
development process. The Panel makes its report at a preliminary stage of rule development and its
report should be considered in that light. At the same time, the report provides the Panel and the
Agency with an opportunity to identify and explore potential ways of shaping the proposed rule to
minimize the burden of the rule on small entities while achieving the rule’s purposes.
Any options identified by the Panel for reducing the rule’s regulatory impact on small entities
may require further analysis and/or data collection to ensure that the options are practicable,
enforceable, environmentally sound, and, of course, consistent with the Clean Air Act.
2. BACKGROUND AND REGULATORY HISTORY
2.1 Regulatory History
Controlling emissions from nonroad engines and equipment, in conjunction with diesel fuel
quality controls, has important public health and welfare benefits. With the advent of more stringent
controls on highway vehicles and their fuels, emissions from nonroad sources will contribute significantly
more harmful pollution than on-highway sources. The following sections describe in more detail the
effects and regulatory history of nonroad diesel engines, equipment, and fuels.
2.1.1 Nonroad Diesel Engines and Equipment
Diesel engines used in nonroad equipment are significant sources of emissions of particulate
matter (PM), nitrogen oxides (NOx), and other pollutants throughout the country. The term “nonroad
diesel” as used in this document means the diesel-powered nonroad engines subject to emissions
standards in 40 CFR Part 89. This includes large and small land-based diesel engines as well as small
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marine diesel engines. Nonroad diesel fuel means diesel fuel intended for or used by these engines.
This is generally #2 diesel fuel.
Almost all of the PM emitted by these engines is in the form of fine PM (the usual metric being
PM 2.5, meaning PM measuring 2.5 microns or less). Inhalation of fine particles is associated with
adverse health effects, including increased hospital admissions and premature mortality for individuals
with cardiopulmonary and respiratory system problems. Inhalation of fine particles is associated with
serious adverse health effects to the general public including premature death and illness severe enough
to require hospital admission. Exposure at lower concentrations can result in the same serious health
effects in “sensitive” populations including children, the elderly, and people with cardiovascular and
respiratory disease (61 FR 65641 at 44 (December 13, 1996)). NOx emissions are a key precursor
to the formation of ground-level ozone, which is also associated with adverse respiratory health effects.
NOx and SOx emissions are also precursors for nitrate and sulfate PM formation in the atmosphere
and thus contribute to overall ambient PM levels. Many areas of the country continue to have PM and
ozone levels that exceed the health-based national ambient air quality standards. In addition, nonroad
diesel emissions have other toxic effects on human health. Diesel exhaust is likely to be carcinogenic to
humans by inhalation at levels of environmental exposures. Moreover, nonroad diesel emissions also
include the known carcinogens formaldehyde and benzene.
Emissions controls on nonroad engines will contribute significantly to protecting public health
and the environment. The first set of EPA emission controls for nonroad diesels were adopted in 1996.
These were based on the emission control technologies that manufacturers had already applied to
highway engines. EPA adopted the next set of standards, known as Tier 2 and Tier 3 controls, in
1998. These controls are now being phased in as is shown in Figure 1. EPA believes that the emission
control technologies that manufacturers will use to meet the 2007 heavy-duty highway emission
standards can be successfully transferred to many nonroad diesel applications provided that low sulfur
diesel fuel is available for these applications. EPA discussed Tier 2 and Tier 3 emission control
technologies it believes are feasible for nonroad engine applications in a document titled “Nonroad
Diesel Emissions Standards Staff Technical Paper” (October 30, 2001).
By contrast, representatives from the non-road diesel engine and equipment manufacturing
industry have questioned whether emission control technologies developed for highway vehicles can
successfully and cost-effectively be transferred to nonroad engines, especially smaller engines. All
participating nonroad diesel engine and equipment manufacturers believe that EPA did not demonstrate
the feasibility of transferring highway emission control technologies to nonroad engines and equipment in
its “Nonroad Diesel Emissions Standards Staff Technical Report.” These manufacturers noted specific
problems with the transfer of aftertreatment technologies to nonroad engines and equipment, including:
the necessity of turbocharging currently naturally-aspirated engines; the typical bulkiness of
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aftertreatment devices in relatively small equipment platforms; the probability of vibration damage from
aftertreatment controls, and the need for increased maintenance of those controls; and, increased costs
which would lead to the elimination of the equipment from the market.
Indeed, a detailed evaluation completed in 2002 of two key emission control technologies at the
heart of the Tier 3 highway diesel rule – diesel PM filters and NOx adsorbers – concluded that further
technical challenges will have to be addressed before these technologies can be relied upon in the
highway context; particularly in the case of NOx adsorbers. The EPA’s Clean Air Act Advisory
Committee issued a Final Report, entitled, “Meeting Technology Challenges for the 2007 Heavy-Duty
Highway Diesel Rule,” in which there was agreement that it is likely these challenges can be overcome.
The report noted that remaining technical challenges include adsorbers’ temperature range requirement,
adsorber durability, and the fact that the adsorber must be desulfated periodically. Challenges
confronting the highway use of Catalyzed Diesel Particulate Filters (CDPFs) include designing filters
capable of active regeneration, that can minimize ash loading, and that can avoid pressure drops.
Similarly, a 2002 study conducted by EUROMOT and the Engine Manufacturers Association
on both American and European Union regulation, entitled “Investigations into the Feasibility of PM
Filters for Nonroad Mobile Machinery,” concludes that the primary challenges in applying diesel PM
filters to nonroad diesel engine use relate to filter regeneration and the integration of aftertreatment
systems to engine controls. The report observes that active, automatic diesel PM filters are “not
currently available at a sufficient level of developmental maturity and commercial viability” for use in
nonroad diesel engines. The report further states that the PM filter systems being developed for
highway truck applications “are not directly transferable to [nonroad diesel engines] due to the
narrower range of operation of such vehicles, providing . . . more conducive conditions for PM Filter
regeneration.” Id at 5. Likewise, a report prepared by VTT Processes entitled “Feasibility Study on a
Third Stage of Emission Limits for Compression Ignition Engines with a Power Output Between 18 and
560 kW” notes that “[NOx adsorber catalyst] possess a promising technology for the future NOx
standards, but more detailed studies are needed to address the long-term operation of the NOx
adsorber catalyst.” Id at 70.
The Panel expects that pursuant to sections 213(a)(3) and (a)(4), EPA will fully consider issues
of technical feasibility in developing standards for new nonroad diesel engines.
2.1.2 Nonroad Diesel Fuel
In recent years, the recognition of the close relationship between effective advanced emission
control devices on engines and the sulfur content of the fuel the engines use has led to a “systems”
approach to emission control, meaning essentially that successful emissions control requires control not
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only of emissions but of sulfur levels in diesel fuel. This approach was recently used in EPA’s Tier 2
light-duty automotive control program and in the new highway heavy-duty diesel emission control
requirements. In the case of highway heavy-duty engines, reductions in highway diesel fuel sulfur
(starting in June of 2006) will occur in tandem with new stringent emission standards for engines
(starting in model year 2007). Sulfur levels in highway diesel fuel are currently limited to a maximum of
500 parts per million (ppm), and the new standard will require refiners to limit sulfur levels to 15 parts
per million (ppm).
EPA does not currently regulate nonroad diesel fuel sulfur levels, and sulfur levels of this fuel
often exceed 3000 ppm. To enable the same types of emission control technology to be applied to
nonroad diesel engines as will be used on highway diesel engines, low-sulfur nonroad diesel fuel (i.e.,
15 ppm) would be needed. Reducing sulfur in nonroad diesel fuel will also reduce primary and
secondary PM emissions from the current fleet of nonroad diesel engines (i.e. even engines without
aftertreatment), although the emissions reductions will obviously not be as extensive as from engines
equipped with aftertreatment.
2.2 Description of Rule and its Scope
2.2.1 Statutory Basis
Section 213(a)(3) of the Clean Air Act requires EPA to regulate NOx emissions from nonroad
engines and vehicles upon an EPA determination that nonroad engines contribute to emissions in a
nonattainment area. In part, section 213(a)(3) authorizes EPA to promulgate standards for designated
pollutants (including NOx) that require the greatest degree of emission reduction achievable from
application of technology to nonroad engines (or vehicles) while giving “appropriate consideration to the
cost of applying such technology within the period of time available to manufacturers and to noise,
energy, and safety factors associated with the application of such technology.” Section 213(a)(4)
applies to all pollutants not specifically identified in section 213(a)(3), and authorizes EPA to
promulgate “appropriate” standards for such pollutants, taking into account “costs, noise, safety, and
energy factors associated with the application of technology which the Administrator determines will be
available” for those engines (or vehicles). Controls on PM implement this provision.
Section 211(c)(1) authorizes EPA to regulate fuels if any emission product of the fuel causes or
contributes to air pollution that may endanger public health or welfare, or that may impair the
performance of emission control technology on engines and vehicles. EPA believes that the opportunity
for cost effective emission reductions on a large scale appears to exist. Therefore, EPA has begun
developing a proposed rule that would set new, more stringent standards for nonroad engines and
lower nonroad diesel fuel sulfur levels.
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2.2.2 General Rule Description
EPA is developing a proposed rule that would, like the earlier highway heavy-duty diesel rule,
take a systems approach – setting new stringent standards for nonroad diesel engines and very low
sulfur standards for the fuel used in these engines. Consistent with sections 213 (a)(3) and (4), and 211
(c) of the Act, and appropriate consideration of costs and other factors, EPA believes it needs to
promulgate a program that achieves the cleanest technologically feasible emission levels for appropriate
classes, and on the earliest possible time line(s). Similarly, EPA expects to propose that refiners
provide very low sulfur fuel for these engines as early as possible to enable these control technologies.
EPA also recognizes that it may not be appropriate to apply the same stringency of emission standards
or the same time line across all of the power range categories of nonroad diesel engines, taking into
account environmental need, cost, feasibility, and other considerations as required by statute. Clearly,
manufacturers of nonroad engines face different technological and cost challenges for different engines
based on engine configuration, horsepower, current level of emission control technology, etc. Thus, as
discussed below, EPA is considering proposing to require aftertreatment based standards that would
become effective at different times and, for some engines, perhaps to require only engine based
emission controls. EPA also discusses below alternatives to reducing sulfur levels in all nonroad diesel
fuel to 15 ppm at the same time.
As with current nonroad diesel regulations, under the proposed program manufacturers of
nonroad equipment using diesel engines would be required to install engines complying with applicable
emission standards. Thus, equipment manufacturers would have to consider what changes in their
equipment design would be necessary to account for differences in the physical and operating
characteristics of the new engines, when they would be able to receive this information from the engine
manufacturers, and when they could receive production prototypes from the engine manufacturers. As
described below, different approaches to the implementation of the engine standards could have
different effects on the difficulty of compliance for small equipment manufacturers.
Businesses that distribute and market nonroad diesel fuel encompass a wide range of operations
such as bulk terminals, bulk plants, fuel oil dealers, and diesel fuel trucking operations, and EPA
believes that most of them would meet SBA’s small entity criteria. As with all fuel quality programs, a
nonroad diesel fuel program would establish requirements related to compliance and ensuring fuel
quality as the fuel is carried throughout the distribution system.
EPA does not plan to propose new emission standards for the engines used in locomotives and
in marine applications in this rule, although such standards could be appropriate in the future. EPA is
considering, however, possible changes to the sulfur content level in diesel fuel for locomotive and
marine engines.
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2.3 Related Federal Rules
The primary federal rules that are related to the proposed Nonroad Diesel rule under
consideration are the current Nonroad Diesel rule (Federal Register Vol. 63, p. 56968, Oct. 23,
1998), the earlier fuel sulfur rules for gasoline (Federal Register Vol. 65, p. 6698, Feb. 10, 2000) and
diesel fuel (Federal Register Vol. 66, p. 5002, Jan. 18, 2001), the highway diesel rule discussed
above, and the Nonroad Diesel Certification Fees proposal (Federal Register Vol. 67, p. 51402,
Aug. 7, 2002). While it does not overlap, duplicate, or conflict, the certification fees proposal,
published in August 2002, will revise the rule assigning fees to be paid by entities required to certify
engines for certification activities and apply this requirement for the first time to the nonroad sector.
2.4 Related European Regulations
2.4.1 Current European Union Non-Road Diesel Regulation
EU Directive 97/68/EC sets limits for diesel engines used in nonroad mobile machinery
(NRMM) and 2000/25/EC sets limits for diesel engines used in agricultural and forestry tractors.
97/68/EC has been recently amended (Directive 2001/63/EC) to establish limits for spark-ignited
engines and diesel engines used in constant-speed applications. The limit values for diesel engines are
aligned in all three Directives but implementation dates differ, primarily because of when the directive
was developed. The Directives establish limit values for NOx, HC, CO, and PM for engines between
18 and 560 kW. The EU believes that engines below 18 kW and above 560 kW do not contribute
sufficiently to emissions in the EU to be included in their regulations. The EU directives currently set
Stage I and Stage II standards covering years 1999 through 2004 and specifies that a more stringent
proposal should be examined in the future. One of the EU directive's objectives is to harmonize the EU
with global regulations.
The limits for emissions included in the EU's Stage I are shown in the following table.
Implementation dates were 1999 for NRMM and 2001 for agricultural and forestry tractors. EPA's
Tier 1 regulations for these power categories were the same for NOx, and EPA did not have Tier 1
PM standards for engines between 19 and 37 kW.
EU Stage I:
Engine Power Class NOx PM
(kW) (g/kWh) (g/kWh)
130-560 9.2 0.54
75-130 9.2 0.70
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Nonroad Diesel Panel Report
December 23, 2002
37-75 9.2 0.85
EU's "Stage II" regulations are shown in the following table, with implementation in 2001-2004
for NRMM and 2002-2004 for agricultural tractors. Stage II takes effect in 2007 for constant-speed
engines. EPA's Tier 2 regulations were similar in level, with slightly different power categories and a
one-year difference in implementation dates for some of those power categories.
1/00 1/01 1/02 1/03 1/04
Engine Size NOx/PM NOx/PM NOx/PM NOx/PM NOx/PM
Class (g/kWh) (g/kWh) (g/kWh) (g/kWh) (g/kWh)
>560 Not Covered
130-560 6 NOx/ 0.2 PM
75-130 6 NOx/
0.3 PM
37-75 7 NOx /0.4
PM
18-37 8 NOx/ 0.8
PM


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