John Campbell Director On-Highway Engine Products March 16, 2004 American Trucking Association Technology & Maintenance Council

2007 Emissions Requirements PM = 0.01 g/bhp-hr –Requires Particulate Filter NOx + HC = 1.2 g/bhp-hr –Assumes Use of Phase-In Provision –Requires NOx Aftertreatment, Advanced Combustion, or Both Crankcase Emissions Counted As Part of Cycle Emissions –Drives Closed Crankcase Filter and/or Closed Crankcase On-Board Diagnostics (OBD) –OBD Changed to EMD (Engine Manufacturers Diagnostics) –Monitoring Performance of Engine Components –Warning Light to Dashboard Fault –Isolation to Component Level Emissions System Useful Life –435,000 Miles for HD –185,000 Miles for MR NOx (g/bhp-hr) Particulates (g/bhp-hr) ‘91 ‘94‘98‘02 ACERT ‘07‘10 Engine Modifications Engine Modifications U.S. Cat Will Follow the 2007/2010 Phase-In Provision

ACERT™ Is The Foundation for 2007 / 2010 Our Technology Strategy & Approach –Build Upon 2003 ACERT™ –Continue to Enhance Engine Performance While Incrementally Introducing Aftertreatment –Investigate Multiple Particulate Technologies –Provide Best Value To Customer and Least Disruptive Technology to Truck OEMs 1998 Engine Add: –Split Inj –Oxicat 10/02 Bridge Add: –Adv Comb –Flex Fuel System –Diesel Part Filter –Thermal Mgmt 2007 ACERT 10/03 ACERT Add: –VVA –Series Turbo –Adv Comb and NOx Aftertreatement 2010 ACERT

Particulate Matter (PM) Reduction Technologies

Engine Out Particulate Matter (PM) Reduction  Lower Engine Out PM is an Enabler for Passive or “Less Active” Diesel Particulate Filters (DPF)  Less Soot Into The Filter Translates Into Lower Fuel Consumption Penalties for Regeneration  Developing Strategies to Reduce Engine Out PM  Combustion Development  Fuel Injection Improvements  Better Fuel Air Mixing Cycle NOx (g/hp-hr) Continue Improvements Engine-Out Cycle PM (g/bhp-hr) Advanced Fuel / Combustion System Cycle NOx (g/hp-hr) Current Fuel / Combustion System

Ceramic Filter with Engine Thermal Management for Regeneration Highest Filtration Efficiency Lowest 1 st Cost Best Fuel Economy Challenge: “Cold” Applications Temperature, Pressure Sensors Quick Disconnects ECM/EMD Ceramic Filter Prime Path: Engine + EMD System (Electronic Control Module/Engine Manufacturers Diagnostics) Temperature, Pressure Sensors

System Design for Engine Thermal Management 100ºC200ºC300ºC400ºC500ºC600ºC  System Requirements for Thermal Management & Regeneration  Short Setback  Single Can Preferred  Engine Measures to Avoid Low Exhaust Temp  ECM Tracking of Emissions & Thermal History  Control System Logic to Trigger Thermal Events ACERT Oxidation Catalyst Not Too Hot, Not Too Cold 2007 After- treatment Bring On The Heat !

Ceramic or Metallic Filter Thermal Source/ Diffuser Heat Generator Secondary Path: Self-Regenerating PM Filter Heat Generator Quick Disconnects ControllerECM/EMD Internally “Active” Regeneration; Filter is Heated by Auxiliary Means Regenerate Under All Conditions Challenge: Cost & Complexity Temperature, Pressure Sensors

Aftertreatment Installation  Round Filters are the Standard Oval Configurations to be Explored but Considered High Risk  Setback Distance Will Be Important Specifying Short Converter Setbacks will Enable Lower Cost Components & Better Fuel Consumption Solutions Target 5 Feet from Turbo Outlet to DPF Inlet (Heat Retention) Back-of-Cab and Side-of-Cab Mounting Not Probable  Target Is Single Can Lower Cost, Better for Regeneration  Filter System Needs to Be Serviceable Ash Removed at Specified Interval Filter System Designed for Easy Service Location must be Accessible

Oxides of Nitrogen (NOx) Reduction Technologies

NOx Reduction Options (2003) 2003 ACERT Engine Aftertreatment NOx Technology OptionsEngine NOx Technology NOx Adsorber Urea SCR DeNOx Catalyst Advanced Diesel Combustion Engine-Out NOx Measures Reduce Size / Cost of Aftertreatment Aftertreatment Options Need to be Evaluated for Maturity and Cost Combination of Engine Out and Aftertreatment may Provide Best NOx Reduction Value Path TCTC Particulate Filter NOx AT

Engine Measures for NOx Reduction (2004) Caterpillar Continues to Expand the Envelope On Engine Out Performance ACERT has Further Ability to: –Reduce NOx & PM Emissions –Improve Fuel Consumption and Heat Rejection Modifications for Engine Out NOx: –Fuel Systems –Air Systems –Piston/Ring/Liner Designs –MorElectric Initiative Systems Possible Advanced Combustion

Closed Crankcase Ventilation System (CCV)

Closed Crankcase Ventilation (CCV) System Design Options Particulate Filter T C T C Option 3: Filter and Vent to Atmosphere CCV Filter System CCV Filter System Option 2: Filter and Route to Exhaust Upstream of DPF Pump / One-Way Valve CCV Filter System Option 1: Filter and Route to Air Intake  Manufacturers Expected to Control Crankcase Emissions by:  Routing to Intake  Routing to Exhaust Stream Upstream of the Aftertreatment 2007 Requirement  Crankcase Emission Control Exception for Turbocharged Heavy-Duty Diesel Engines Eliminated  Crankcase Emissions Treated Same as (i.e., Added to) Other Exhaust Emissions CCV Filter Component

2007 System Architecture

2007 System Architecture Heavy Duty T C T C T C T C Particulate Filter ATAAC Pre Cooler Higher Pressure Injection System Variable Valve Actuation w/ Thermal Management Function Series Turbo Chargers W/ or W/O Auxiliary Device CCV Filter System Option 1

2007 System Architecture Midrange T C T C Diesel Particulate Filter ATAAC Higher Pressure Injection System Device for Thermal Management Function Conventional Turbo Charger W/ or W/O Auxiliary Device CCV Filter System Option 1

Timelines

RS Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 C15 C13 Production Customer Evaluation Engines Additional Customer Evaluation Engines Field Test Engines OEM Engines 2007 HD Program Timeline

2007 MD Program Timeline Q1Q2Q3Q4Q1Q2Q3Q4 Q1Q2Q3Q4 Q1Q2Q3Q4 C7 C9 OEM Engines Field Test Engines Customer Evaluation Engine Additional Customer Evaluation Engines Production

Caterpillar Conclusions  Finalizing Technologies for 2007  Diesel Particulate Filter Required  Engines Available for Fleet Purchase Mid