Boat Builder Regulatory Update ABYC Standards Week H24 Fuel Standard John McKnight Big issues in 2011 Styrene was listed as Reasonably Likely to be a Human Carcinogen by HHS- but we are all still here. The fuel tank permeation and for some companies the diurnal systems have started to meet the evaporative emissions regulations.

For more information, or a copy of today’s presentation, please visit Marine Regulations California Evaporative Emission Update Canada Marine Engine and Evaporative Emission Update EU Update We also saw Canada come out with an engine and evaporative emission rule, which requires boat builders have EPA Certified engines in 2012 and evaporative emission compliant boats in 2015. The Canadian dealers will have an obligation to fill out paperwork and submit it to Environment Canada. Regarding California…contrary to what I read there is no CARB rule at this time. It is on hold. The big issue that I see..one that will effect boats and boat engines and one that NMMA is working hard to resolve is the EPA plan to allow the use of 15% ethanol in gasoline I want spend a few minutes this afternoon letting you know what I know about this subject. For more information, or a copy of today’s presentation, please visit www.nmma.org/government/issues/environmental.aspx

How will the US fuel supply affect the boats you build? What do we now know about ethanol in fuel at amounts >10%? What do we know about alternatives to ethanol enhanced fuels? What are the US and California Governments doing about this? Three questions come to mind? To begin we know a lot about E15 as it was tested by Mercury and Volvo Penta and the DOE funded the study. Here is what we know.

Results Summary Verado F9.9HP 200HP EFI 2.5L 2 Stroke Initial E15 engine generated HC+NOx emissions in excess of FEL when operated on E15 fuel. E15 engine failed exhaust valves. Metlab analysis showed excessive metal temperatures caused a reduction in fatigue strength. F9.9HP The E15 engine on E15 fuel showed high HC variability at the post-endurance emissions testing. It is believed that this engine was misfiring at idle due to the lean operation. The E15 engine showed evidence of hotter metal temperatures due to carbon deposits, etc. The E15 engine showed signs of gasket deterioration on the fuel pump. 200HP EFI 2.5L 2 Stroke E15 engine showed no difference in emission deterioration. E15 engine failed the rod bearing. Root cause is indeterminate due to the degree of damage. How does ethanol affect oil dispersion in two stroke engines? Other than the bearing failure, the end of test teardown and inspection did not show any significant difference between the 2 engines

Results Summary-Continued 4.3L V6 ECT Mercruiser Two emissions tests were performed on a 4.3L catalyzed sterndrive engine to compare the E0 fuel and the E15 fuel. No durability testing was completed on the 4.3L engine with E15 fuel. This testing was not part of the contract, but was performed due to the fact that the E15 test fuel and a catalyzed engine were readily available on the dyno. Also, it compliments the testing on a 4.3L carbureted engine done by Volvo Penta. EGT increased ~20C and catalyst temperatures increased ~32C at Mode 1 (WOT). Valvetrain durability and catalyst system deterioration concerns. Fuel consumption increased by ~5% (mass-based fuel flow) in closed loop operation. Aside from HC and CO reductions at Mode 1 (open loop), the E15 fuel afforded no real benefit to reduced emissions overall. NOx increased at Mode 1, but not as much as HC decreased for a slight overall reduction. HC, NOx and CO in closed loop operation are essentially unchanged between the 2 fuels. Overall The CO emissions were lower on all engines with E15 fuel due to leaner running (as would be expected). Fuel analysis showed the E15 fuel that was used in testing was in line with expectations.

F9.9HP 4-Stroke Teardown and Inspection More carbon deposits on intake valves of E15 engine.

F9.9HP 4-Stroke Teardown and Inspection More carbon deposits on intake port of E15 engine. E0 E15

F9.9HP 4-Stroke Teardown and Inspection More carbon deposits on piston undercrown and rods of E15 engine.

Verado E15 Valve Failure Investigation Cylinder 6 Top Valve Cylinder 3 Bottom Valve Cylinder 3 Top Valve

Verado E15 Valve Failure Investigation Cylinder 3 Bottom Valve

200HP EFI E15 Engine-Bearing Failure Root cause of bearing failure is unknown. 283 total engine hours, 256 WOT endurance hours No rollers were recovered. Undamaged Bearing Remaining Pieces from Cyl 3 Rod Bearing Cage Undamaged Rod Rod from Cyl 3

Conclusions and Recommendations Summary Despite the limited scope of project several significant issues were discovered. Durability Failures Emissions Issues (elevated NOx, HC variability) Run Quality due to Lean Operation More testing is necessary to understand effects on: Drivability- Ex. cold and hot start, transient accel/decel, “boil off”, etc. Oil dispersion in 2 stroke engines Storage (phase separation, corrosion, etc.) Test program was a cursory look at the effects of E15. Sample size was insufficient to have statistical significance. WOT operation only-masks effects of true customer duty cycle

So we had to put some the great minds in the boating industry to think about this

And at the end of the day we decided to test this new type of biofuel called isobutanol Tell you what we know about isobutanol and what we found out with our testing

What is Butanol? A four carbon alcohol (C4H9OH), colorless, neutral liquid of medium volatility with a characteristic banana-like odor. Can be biologically derived from biomass in a fermentation process using microorganisms – Biobutanol Biobutanol fermentation differs from bioethanol mainly in the use of bacteria. An existing ethanol plant can be converted to make butanol

Butanol Properties: Butanol 99,800 BTU/gallon Gasoline 116,000 BTU/gallon Approximately 86% of the energy content of gasoline Ethanol 76,300 BTU/gallon (68% of the energy content of gasoline)

Butanol Properties: Phase Separation As water enters a boat fuel system containing ethanol-extended fuels, phase separation may occur creating an ethanol/water fuel mixture. Butanol does not phase-separate as shown in the cylinder on the right Figure 1. Effect of adding 10% water by volume to 85% ethanol and 10% water by volume to 85% butanol

Butanol Introduction: Less susceptible to phase separation means butanol could be successfully delivered in existing pipelines Eliminates need for splash-blending Least corrosive of alcohols Higher energy content – can be blended into gasoline at higher percentages than ethanol

Energy Content: 16.1% butanol by volume is equivalent to 10% ethanol by volume ~3% O2 Talk about oxygen 3% at 16.1 % butanol 5% at 15% ethanol Gasoline

Purpose of Testing: To evaluate the effect of butanol-extended fuels in a harsh marine environment and to see if there is a better alternative to ethanol-extended fuels

Test Set-up: On-water emissions testing using the Marine Portable Bag Sampling (MPSS) unit developed for the EPA/NMMA green house gas study.

The Capture

The Boats & Crew This is one of the primary test boats, with a 175 hp 2009 evinrude. Our testing crew was Rich Kolb, John Adey, John McKnight and missing from the photo is Brian Goodwin.

The Boats & Crew Our second boat was a twin jet boat with 2 x 230 hp rotax engines. Only the port engine was tested. Both of these boats had been driven 40 hours during the summer on the new fuel. We went through approximately 15 drums of fuel.

Tests Conducted: On-water emissions testing Emissions data reported using EPA certification fuel (non-oxygenated) and 16.1% isobutanol-extended fuel. Values reported in grams per ICOMIA hour: Total Hydrocarbons Nitrogen Oxides Carbon Monoxide

Test Results: HC + NOx emissions are virtually the same between the two fuels. CO is reduced using isobutanol (as expected) Evinrude E-TEC 175 Stratified Charged Direct Fuel Injection Two-Stroke on water emissions evaluation [HC, NOx, CO] – 18' Mako Boat. Comparison between Indolene fuel and 16.1% isobutanol extended fuel. Values in grams per ICOMIA hour average of two tests per fuel type

Test Results: HC decreased slightly and NOx increased slightly using isobutanol…but the total HC+NOx was virtually the same between the two fuels. CO is reduced using isobutanol (as expected) Jet-boat on water emissions evaluation [HC, NOx, CO] – Rotax 1503 Supercharged Four-stroke engine. Comparison between Indolene fuel and 16.1% isobutanol extended fuel. Values in grams per ICOMIA hour average of two tests per test fuel.

Product Testing We were given an opportunity with Isobutynol that we were not given with E-1, 15, 20, we could test product! Both components (even older fiberglass tanks) and engines were tested by NMMA and ABYC this summer. Support from BRP, Volvo and Mercury made our testing possible through providing product, personnel and testing equipment.

Vintage Tank Testing…..

Coupon testing Testing was completed on a variety of materials that would come in contact with the fuel, either intentionally or unintentionally. Items such as fuel hose, primer bulbs, and fuel tanks were directly tested as shown and other items were subjected to momentary immersion such as gel coat. Results look good so far, testing to be completed soon.

E10/E15 as Certification Fuel? EPA is expecting to propose a new certification fuel for cars and light-trucks at the end of 2011 Likely to propose a 15% ethanol/gasoline (E15) blend EPA recently approved a waiver for E15 and expects use to grow significantly in coming years EPA is considering proposing the new certification fuel for all nonroad categories that use gasoline Apply to Marine SI, Small SI, Large SI, and Rec Vehicles Apply to both exhaust and evaporative emissions

E10/E15 as Certification Fuel? For marine engines, EPA has explored three options E15 E10 initially, then move to E15 after market review indicates E15 is a “significant” fraction of fuel sold E10 EPA would allow multiple years for manufacturers to re-certify their products on the new fuel Open to allowing carryover of existing CE10/E10 data from fuel tank and fuel line permeation testing No decisions have been made yet Proposal will be available on EPA website after signature http://www.epa.gov/otaq/hwy.htm EPA has backed off on this proposal for the time being

The Ongoing Debate “Recent claims from some marine engine manufacturers that E15 ethanol blends will ruin marine engines are meant solely to incite fear and not meaningful discussion.”

Congressional Testimony Jeff Wasil, Engineer, Emissions and Compliance for Bombardier Recreational Products July 7, 2011 David Hilbert, Thermodynamic Engineer for Mercury Marine November 2, 2011

What’s Next? Continue to lobby Congress to revisit the Energy Independence Act of 2007 Freeze the blend wall at 2011 levels Variable legal challenge to the EPA E15 partial waiver DOE is helping with funding for additional butanol testing: Four in-water boats Water ski boat Boat with Yamaha 08 engine Center console with Johnson 2 stroke Runabout with VolvoPenta engine Laboratory testing at BRP Durability Cold Starting Emissions