1 Small Off-Road Engines and Large Spark-Ignition Engines with Displacement Less Than or Equal to One Liter Workshop April 21, 2008

2 Outline Background:small off-road engines (SORE) Proposed changes for SORE Background:large spark-ignition engines with displacement less than or equal to one liter (LSI ≤ 1 L) Proposed changes for LSI ≤ 1 L Contact Information

3 Background: SORE Credits Production emission credits established in 1998 to provide flexibility during transitional period of emission standard changes U.S. EPA considered use of production emission credits at the time, but ultimately did not adopt

4 Background: SORE Credits Comments From First Workshop and Subsequent Meetings Retain Production Credits Do not discount credit value Do not limit credit life Do not tie credit life to warranty period

5 Proposed Changes: SORE Credits Elimination of Production Credits –Accrual of Production Credits cease in year 2009 –Existing Production Credits may be used until year 2012 at full value Retention of Certification Credits –Limit lifetime to 5 years at full value

6 Proposed Changes: SORE Credit Option Obtain Certification Credits for advanced electric equipment –Battery retains enough charge To power equipment at commercial equipment level For the time equivalent to an average full tank of fuel For 300/500/1000 hours depending on “engine displacement”

7 Proposed Changes: SORE Emission Durability Period Limit durability period to five years or current number of hours, whichever comes first Unchanged from previous proposal

8 Background: LSI ≤ 1 L May 2006, Board approved more stringent emission standards for LSI > 1 L LSI ≤ 1 L not addressed at that time November 2007 workshop, staff proposed alignment with U.S. EPA Further review showed additional reductions needed The LSI ≤ 1 L equipment is approaching 50% of total projected sales

9 Engine Displacement Trends More than 70% of 2008 certified LSI ≤ 1 L engine families have engines > 950 cc The number of engine families offered with displacements between 1.0 L and 1.6 L has declined to zero The relatively larger displacement and power ratings indicate a migration from the more stringent category to the less stringent category

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11 HC+NO x Standards

12 Proposed Changes: LSI ≤ 1 L Exhaust Emission Standards Model YearDurability Period HC+NOx (g/kW-hr) CO (g/kW-hr) Current 2002 and subsequent 1,000 hours or 2 years Proposed ,000 hours or 2 years Proposed 2014 and subsequent 5,000 hours or 7 years

13 Proposed HC+NOx Standards LSI ≤ 1 L LSI > 1 L

14 Proposed HC+NOx Standards 6.5 g/kW-hr (5 g/bhp-hr) HC+NOx standard was originally proposed in the 1998 LSI rulemaking, based on the SwRI test results with a reasonable compliance margin There are nine 2008 MY certified engine families meeting the 2010 standards (6.5 g/kW-hr of HC+NOx) and two engine families meeting the 2014 standards ( 0.8 g/kW-hr of HC+NOx)

15 Industry Comments Proposal would require: Water-cooled engines Three-way catalysts (TWC)

16 Water-Cooled Engines More than 70% of 2007 certified engine families are water-cooled multicylinder engines 10 out of 12 certified manufacturers (2007 MY) have at least one water- cooled family Water-cooled engines can be made to be more fuel efficient, to emit less greenhouse gases (CO 2 ), and to be cleaner burning

17 Three-Way Catalysts 18% engine families currently certified with a catalyst 5 out of 12 certified manufacturers (2007 MY) have at least one TWC family TWC are a proven emissions control technology

18 Proposed Changes: LSI ≤ 1 L Evaporative Emission Standards Required to meet LSI > 1 L evaporative emission standards, starting in 2010 This may require the use of low permeation hoses and fuel tanks Manufacturers may choose performance-based or design-based standards

19 Proposed Changes: LSI ≤ 1 L Test Procedures Required to meet LSI > 1L test procedures, starting in 2010 Test cycles: Steady-state, transient, and field testing Constant speed LSI engines need run steady-state test cycle only

20 Estimated Benefit of the Proposal Statewide Annual Average Year HC+NOx Emission reductions (tons per day)

21 Additional Information Requested Staff is still gathering cost estimates and encourages submission of specific relevant data Cost differential between air-cooled and water-cooled engines Cost of catalyst system to meet proposed standards

22 Contact Information Board Hearing will be held on September 25-26, 2008 Please send comments to SORE: Yun Hui Park (626) LSI: Hung-Li Chang (626)