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California Air Resources BoardAlternative Diesel Fuels

Symposium

Presentation of theEngine Manufacturers Association

Sacramento, CaliforniaAugust 19, 2003

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Engine Manufacturers Association

Domestic and foreign manufacturers ofdiesel, gasoline and alternatively-fueledinternal combustion enginesPrincipally, non-integrated manufacturers ofloose enginesWide range of engine sizes, from 1 hp to7000 + hpWide range of industry applications

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EMA Membership RosterBriggs & Stratton Corporation

Case New Holland Caterpillar Inc.

Cummins Inc. DaimlerChrysler Corporation Deere & Company

Detroit Diesel Corporation Deutz Corporation Ford Motor Company

General Motors Corporation Hino Motors, Ltd. International Truck & Engine Corporation

Isuzu Motors America, Inc. Kohler Company Komatsu Ltd.

Kubota Engine America Corporation

Mitsubishi Engine North America, Inc.

Mitsubishi Fuso Truck of America, Inc.

Onan – Cummins Power Generation

PACCAR Scania CV AB

Tecumseh Products Company

Volkswagen of America, Inc. Volvo Powertrain Corporation

Waukesha Engine, Dresser, Inc.

Yamaha Motor Corporation Yanmar Diesel America Corporation

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EMA Objectives

Achieve air quality improvements throughcost-effective, technologically feasiblemeasuresPromote/maintain global alignment ofstandards, programs, and procedures:design once, certify once, sell worldwideMaintain customer satisfaction and productacceptability

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Fuel Quality

Fuels must meet established specificationsHigh quality fuels are essential to:

achieve emission reduction goalsenable advanced aftertreatment technologiesprovide expected engine performanceachieve expected efficiencymaintain engine durabilitymeet customer expectations consistently

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Rationale For Alternative Diesel Fuels

Reduce energy dependency on petroleum-based fuelsPotential to provide emission reductions

Direct emission advantages for current enginesRetrofit of older technology engines

Boost domestic industries, (e.g. farming, fuelproduction facilities)

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Alternative Diesel Fuel Challenges

Emission reduction trade-offsFuel specifications, quality and consistencyPerformanceInfrastructure and fuel availabilityCostImpact on additive package/consistencyImpact on engine components (compatibility)

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Alternative Diesel Fuels

Water/diesel emulsionEthanol/diesel fuel blendsGas to liquid (GTL) fuelsBiodiesel fuels

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Water/Diesel EmulsionBenefits

NOx emission decreasePM emission decrease

ConcernsLack of industry-wide fuel specificationNeed for special handling (self-contained fuel unit)Special storage required to prevent water/fuel separationReduced energy contentPotential adverse interaction between emulsion andaftertreatment control technologyIncreased separation/freezing potential in cold weatheroperationDurability/corrosion effects

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Ethanol/Diesel Fuel Blends

BenefitsPM emission decrease

ConcernsLack of industry-wide fuel specificationFlammability (dispensing, maintenance and storage)Reduced energy contentPotential adverse interaction between ethanol andaftertreatment control technologyNOx emission levels are engine and/or applicationdependent

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Gas to Liquid (GTL) FuelsBenefits

NOx emission decrease possiblePM emission decrease possibleHigh cetaneNo sulfur or aromaticsGood blending stock for diesel fuel

ConcernsLack of industry-wide fuel specificationReduced energy contentFuel flow impairment in cold weather operation

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Biodiesel Fuels

100% biodiesel and various biodieselblends

Several feedstock options withvarying benefits and concerns

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ConclusionsEach alternative diesel fuel has unique characteristics

Decrease in engine-out emissions for some criteria pollutantsIncrease or no change in other pollutantsPotential performance, durability, cost, and customer satisfaction concerns

Infrastructure and availability issues must be resolvedAvoid “boutique” fuelsFuel blending at the refinery for consistency

Engines are designed to operate on specified fuelsSignificant time and resources are required to conductperformance/emission testing on a host of potentially feasible fuelsand fuel formulationsEMA is committed to working with other stakeholders in industry andgovernment to develop a common understanding of the role ofalternative diesel fuels in California’s overall air quality strategy