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E ngine M anufacturers A ssociation

California Air Resources Board – Public Workshop Re: Alternative Fuels Regulations June 21, 2000 Sacramento, California. E ngine M anufacturers A ssociation. Presented by Kate Drakos Director of Government Affairs. Background Information.

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E ngine M anufacturers A ssociation

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  1. California Air Resources Board – Public WorkshopRe: Alternative Fuels Regulations June 21, 2000 Sacramento, California Engine Manufacturers Association Presented by Kate DrakosDirector of Government Affairs

  2. Background Information • On December 10, 1998, the ARB Board approved a 10.0 percent by volume limit for propene content of commercially sold LPG ARB Action • Under existing ARB regulation, a 5.0 percent by volume was scheduled to come into effect. • Due to availability concerns, the 5.0 limit was expanded to 10. • Manufacturers and fuel providers conducted $500,000 program to ensure new spec caused no harm. Reason Industry Response

  3. Framing of Current Issue • Fuel suppliers and fleets are still claiming difficulty in obtaining compliant LPG fuel. Obtaining compliant CNG fuel has recently also been cited as a problem Problem Overview • Allow use of off-spec LPG or CNG fuel for captured fleets (provided certain conditions are met – including warranty claim MOUs) • Allow use of off-spec LPG fuel in LPG trucks delivering LPG fuels Potential Options Under Review by ARB Include

  4. Initial EMA Concerns Main Concerns • EMA members have not been privy to the type of LPG or CNG off-spec fuel being proposed • Would need time to review data and study how proposed off-spec fuel would affect engine durability, performance, and emissions. • Allowing use of off-spec fuel only delays development of adequate fuel supplies. True solution is encouraging and enabling development of infrastructure to make compliant fuel widely available.

  5. Initial EMA Concerns (continued) • Allowing “off-spec” LPG would create a “third fuel” (perhaps more) that manufacturers would have to consider. • Limiting access to private fleet refueling stations will reduce availability of fuel to non-fleet customers using those facilities.

  6. Initial EMA Concerns (continued) • A memorandum-of-understanding between fuel suppliers and vehicle/engine manufacturers is most likely not part of the answer • Required use of proper fuel for valid warranty is already stated in warranty – don’t need separate agreement to restate/warn owner. Manufacturers have the ability to deny warranty coverage of damage caused by improper fuels. • If individual manufacturer chooses to honor warranty despite breach of terms, that is a business decision that is for each company to decide • Manufacturers should not be forced to re-describe warranty relationship with customers. • OEM/customer relationship could be harmed. Manufacturers are usually held accountable by customers for damage, regardless of cause. • Could prevent further sales of AFVs if fleets anticipate possible damage without coverage

  7. EMA Recommendations • Identify factors needed to get long term fix to fuel availability problem • What incentives are needed in order to get delivery of compliant fuel in all of California? • What is the cost of such a fix? • What is the cost of NOT having such a fix?

  8. EMA Recommendations(continued) • Engine manufacturers support efforts to expand the market for compliant LPG and CNG fuels • Engine manufacturers cannot support use of noncompliant LPG and CNG fuels without having the opportunity to understand their impact on engine performance, durability and emissions • ARB must give engine manufacturers adequate time to review any new data

  9. EMA Member Companies Briggs & Stratton Corporation Komatsu Ltd. Caterpillar, Inc. Kubota Engine America Corporation Cummins Engine Company Mack Truck, Inc. DaimlerChrysler Corporation MerCruiser DaimlerChrysler Powertrain Mitsubishi Engine North America, Inc. Deere & Company Mitsubishi Fuso Truck of America, Inc. Detroit Diesel Corporation New Holland North America, Inc. Deutz Corporation Onan Corporation Ford Motor Company Robin America, Inc. General Electric Company Scania CVAB Inc. General Motors Corporation Tecumseh Products Company Hino Motors, Ltd. Volkswagen of America, Inc. International Truck & Engine Co. Volvo Truck Corporation Isuzu Motors America, Inc. Waukesha Engine Division Kohler Company Yamaha Motor Corporation Yanmar Diesel America Corporation

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