1 In Use Testing for Heavy Duty Diesel Engines Draft Final Rulemaking OMB Briefing May 5, 2005 2 Overview ° Background ° Review of HDIUT Proposal ° Review of Test Procedure Proposal ° Our Goal and Approach ° Summary of Public Interactions ° Summary of Comments/ Key Changes ° MOA/ Test Plan ° Near and Longer Term Challenges ° Next Steps ° Appendix 3 HDIUT Background ° EMA Sued Over NTE Provisions of 2007 HDDE Standards ° EPA, EMA, and ARB Reached a Settlement Agreement to Implement a Manufacturer Run,

HDDE In Use Testing ( HDIUT) Program ° EPA/ ARB/ EMA have worked diligently to develop programs and resolve issues ° Court Ordered Rulemaking Schedule   Proposal to be Signed by June 3, 2005   Needs to incorporate both program and test procedure elements 4 Test Procedure Background ° Initially arose from unfinished business in 2007 highway diesel and nonroad Tier 4 rules ° At EMA's initiative NPRM was expanded to include overdue tech amds from other sectors ( e. g., locomotive, marine, nonroad diesel, highway diesel, etc)

° Most work done EPA/ EMA/ ARB Calibrations and Standards Task Force ( CSRF)

  Major focus on part 1065 regs needed for HDIUT 5 Our Goals and Approach ° Work closely with ARB to have a consistent program ° Work constructively with industry and others to identify and resolve technical issues ° Set up for success at OMB, during pilot and fully enforceable program implementation,

and develop template for nonroad engines 6 Summary of Public Interactions ° Public Hearing July 2004   No significant issues raised   No public hearing requested for Test Procedure rule   Comment period closed end of Oct 2004 ° Prior to close of comments EMA presented list of HDIUT issues for resolution   5 meetings over a 4 month period to discuss and resolve   Significant action items for EPA and EMA ° Many issues related to test procedures discussed many months prior to NPRM and monthly since then in CSTF ° In Sept 2004 briefed ATA/ TAG on NPRM ° Briefed states/ enviros prior to NPRM and in March   No substantive comments or issues 7 HDIUT Comment and Response ° Comment: More Information Needed for PEMS Accuracy Margins   Margins developed with input from EMA calibration/ standards task force   Negotiated different interim margins for pilot program   EPA, ARB, EMA cooperative development program for enforceable program ( MOA)

° Comment: Portable PM Measurement is Still Under Development   Delaying PM pilot program until 2006 and enforceable program until 2008 ( longer depending on development outcomes ( MOA))

  EPA in house development effort ongoing ° Comment: No Need to Measure PM   Catalyzed Filters Effective and Emissions only High on Catastrophic Failure   Traps do not guarantee low emissions in all other failure modes   Many future unknowns with after treatment technologies 8 HDIUT Comment and Response ° Comment: Portable Gaseous Emission Measurement not Available for 2007 Engine Development   PEMS available in 2002 that measure at 2007 development levels for NOx , THC, and CO   PEMS available in 2003 that allow measurement of NMHC   PEMS part of otherwise regular development practices using laboratory testing and statistically sound test plans   DDC publicly described using PEMS for field testing final engine calibrations in 2003 ° Comment: Reporting Requirements Overly Burdensome Need comprehensive reports to ensure test program properly conducted, need raw data to ensure reproducibility of compliance manufacturer's results, etc.

  Manufacturer's will electronically record most data anyway   Cooperatively developing standard electronic reporting format 9 HDIUT Comment and Response ° Comment: Reporting Incomplete, Invalid, and Voluntary Tests Burdensome   Incomplete, invalid, and voluntary test reporting changed to notification and recordkeeping   Voluntary testing subject to rule now limited to tests on same engine family while under active testing in the in use program   addresses " shopping for results"

° Comment: Required Testing with Activated MIL or OBD Code Inconsistent with Settlement Agreement ( normal operation)

  Changed from requiring tests under most cases to allowing repair before testing, or rejecting and replacing vehicle prior to testing 10 Part 1065 Regs ° HD In use Testing Rule depends on new PEMS test procedures in 40 CFR part 1065   New procedures say how to install PEMS on trucks for conducting valid tests ° EMA has been pushing hard for additional changes to part 1065   Part 1065 has become the centralized reference for testing all types of engines   Proposed changes include complete PEMS procedures and incorporate a wide range of improvements ° New types of analyzers, better correction factors, more accurate engine mapping,

calibrations reflecting the full range of applicable standards, units and calculations following international protocol   We have held many all day meetings with EMA staff to work out hundreds of technical details ° The international community is also very interested in getting part 1065 procedures right for global application   Part 1065 will effectively replace ISO 8178 for all testing ° Capturing all the testing improvements requires migration of test procedures from part 86 to part 1065   The regulations for different kinds of nonroad engines all rely on part 86 procedures, so changing this for highway engines requires tech amendments for other engine categories 11 Tech Amendments ° Technical amendments are needed to stay current with changes to parts 86 and 1065 ° We have adopted several new rules recently without a chance to make technical amendments based on implementation experience ° Proposed amendments included a wide range of minor corrections and program adjustments across all mobile source programs   Adding certification flexibility, clarifying exemptions, adjusting labeling requirements, making requirements uniform across categories, etc.

  Manufacturers suggested many additional amendments in their comments   Final rule reflects hundreds of individual changes   All issues worked out with affected industries ° The most noteworthy issues:

  Adding ramped modal testing to allow more accurate measurements   Adjusting HD highway procedure to address engine overspeed   Allowing highway engine manufacturers to ship engines and aftertreatment separately to vehicle manufacturer 12 MOA/ Test Plan ° Two key issues emerged from discussions with industry   Accuracy margins for PEMS units   Availability of PM PEMS units ° To address accuracy margin we worked with EMA and ARB to develop MOA and test plan to determine needed values ° MOA covers implementation of test plan   Scope of program   Schedule and where testing will be done   Who pays and how much   Consequences of failure   Impacts on the regulation ° Test plan addresses factors and operations to be assessed in developing accuracy margins and how they will be determined. Key factors include variability, environmental effects on the instrument, chassis vs on engine comparison, other miscellaneous engine parameter issue ° MOA and Test Plan in final review and coordination ° MOA ( with test plan as an attachment) must be signed by June 2, 2005   EPA, ARB, EMA. 13 PM PEMS ° At present, PM PEMS capability is not commercially available ° Technical issues   PM reference method   Development of on vehicle capability   In use proveout   Accuracy margins ° Under settlement agreement industry is not required to test if equipment is not commercially available ° Work continues in private sector and at EPA ° Laboratory proven already, road ready prototype needs to be available by June 2006 to meet schedule in test plan for accuracy margin determination 14 Next Steps and Schedule ° Consent Decree date June 3, 2005 ° Final touches on rulemaking documents for both HDIUT and Test Procedures ° Closure and signature on MOA/ Test Plan ° Rule submittal for final review and signature 15 APPENDIX 16 HDDE In Use Testing Objectives ° Monitors NTE Exhaust Emission Standards Compliance for MY2007 and Later HDDEs   Under real world driving conditions   Over entire useful life of the engine ° Testing Conducted and Paid For By Manufacturers with EPA Oversight ° Addresses Long Standing Need for Such In Use Information based on NTE 17 HDDE In Use Testing Salient Program Features ° Onboard Emission Measurement Devices ° Pilot Program 2005/ 06 gaseous; 2006/ 2007 PM ° Enforceable Starting 2007 gaseous and 2008 PM ° Up to 25%/ Year of Engine Families Tested or 1/ Year for Small Engine Manufacturers ° Truck/ Bus Procurement, Mileage, and Screening   Test vehicles obtained from at least two sources   Normal operation  routes, driver, and conditions   Only properly used and maintained vehicles   No screening out for high mileage up to reg. useful life   Must have indication of significant non idle operation 18 HDDE In Use Testing Salient Program Features ( Cont'd)

° Emissions Measured: THC, CO, NOx, PM*, CO2,

and O2 ° EPA/ ARB Reserve Right to Conduct Own Testing ° Limit SEA Program Solely to Instances Where Other Credible Evidence Indicates Potential Nonconformity _______________

* Requires significant development by EPA 19 HDDE In Use Testing Vehicle Pass Criteria ° Passes if 90% of Valid NTE Samples are Less Than or Equal to NTE Threshold ° 100% of Valid NTE Samples Must be Less than 2X NTE Threshold for MY2007 through 2009   Reevaluate need for this standard MY2010 and later ° NTE Threshold = Standard + Existing Regulatory and New Instrumentation Margin   Instrument accuracy margins set for pilot program   Instrument margin to be adjusted after test plan completed 20 HDDE In Use Testing Family Pass Criteria ° Two Phase Approach ° Phase 1   Vehicle sample size: 5 minimum, 10 maximum   If 5 out of 5 or 5 out of 6 pass, family passes   If 2 fail, test 4 more   If all then pass ( 8 out of 10 total), family passes 21 HDDE In Use Testing Family Pass Criteria ( Cont'd)

  If more than 2 fail, then actions could include:

  No further action ( no significant issues indicated by data)

  Mandatory Phase 2 testing if 5 or more vehicles fail,

unless manufacturer agrees to remedial action   Voluntary Phase 2 testing if EPA, ARB, and manufacturer agree when 3 or 4 vehicles fail   Pursue remedial action directly if warranted based on Phase 1 and other relevant data or considerations 22 HDDE In Use Testing Family Pass Criteria ( Cont'd)

° Phase 2   Sample size up to 10 vehicles   Pursue remedial action directly if warranted based on Phase 1 and 2 results, and other relevant data or considerations