1. GCAA Tier 4 Specifications BP Lubricants USA Inc Geno Capitoni National Accounts Manger

2. 2 History – Emissions Reductions Tier 1 phased in from 1996 Tier 2 phased in from 2001 Tier 3 phased in from 2006 Meeting the limits included; −Engine design −Piston ring position −EGR −Turbo design −Fuel injection timing −Electronics −Fuel quality

3. 3 Tier 4 Standards Introduced in May 2004 Phased in from 2008 – 2013 for categories <11hp thru 74 hp Phased in from 2012 – 2013 for categories 75 hp thru 175 hp Phased in from 2011 – 2014 for categories 176 hp thru 750 hp −50% compliance by 2013 −100% compliance by December 30, 2014 Emissions reductions of NOx and PM reduction by 90% + Closed crankcase ventilation allowable, emissions measured and added to exhaust emissions for total engine emissions Emissions must be met over the entire “useful life of the engine”

4. 4 Emissions Time Period – Engine Useful Life Rating Useful LifeRecall Testing Period HoursYearsHoursYears >50 hp8,000106,0007 EPA requires the application of deterioration factors (DFs) to all engines covered by the rule. The DF is a factor applied to the certification emission test data to represent emissions at the end of the useful life of the engine.

5. 5 What’s In Store For Tier 4? HP RatingTierYearNOx (g/bhp*h)PM (g/bhp*h) 176 – 300 Tier 119966.9.4 Tier 22003-.15 (65% reduc) Tier 32006-- Tier 42011-2014.3 (95% reduc).015 (90%) (2011) (96%) 301 – 600 Tier 119966.9.4 Tier 22001-.15 (65% reduc) Tier 32006-- Tier 42011-2014.3 (95% reduc).015 (90%) (2011) (96%) 601 - 750 Tier 119966.9.4 Tier 22002-.15 (65% reduc) Tier 32006-- Tier 42011-2014.3 (95% reduc).015 (90%) (2011) (96%)

6. 6 EOM Answers to Tier 4 Lower Emissions Diesel Oxidation Catalyst Particulate Filter Increase % Cooled EGR ACERT technology Particulate Filter w/ advanced regeneration Electronics Turbo Charger Configurations No announcement of SCR Fuel Quality

7. 7 Retrofitting Existing Equipment No requirements for retrofitting existing engines or equipment No restrictions on the sale of used equipment The estimated costs for added emission controls for the vast majority of equipment was estimated at 1-3% as a fraction of total equipment price −175 hp dozer that costs approximately $230,000 would cost up to $6,900 to add the advanced emission controls and to design the dozer to accommodate the modified engine (source EPA)

8. 8 Fuel Quality June 2007 - 500 PPM max fuel sulfur June 2010 – 15 PPM max fuel sulfur (ULSD) for off road June 2012 – 15 PPM max fuel sulfur (ULSD) for locomotive and marine use

9. 9 Biodiesel Fuel Benefits Check with OEM for approved “B” blend, most at B5 (some at B20) PM and HC emissions are toxic / carcinogenic −B100 reduces 90% of these air toxins −B20 reduces air toxins by 20-40% −Depends on fuel quality −Depends on biodiesel quality Improved cetane value Improved lubricity for pumps Lower soot levels (more complete burn)

10. 10 Current OEM Thinking

11. 11 Biodiesel Fuel Higher boiling points causes fuel dilution in the engine oil −High biodiesel gelation point causes thicker oil at start up −Can cause faster degradation of non-premium engine oils Higher cost per gallon ~15% lower BTU value −8% less energy per gallon −1% - 2% less fuel economy Cold weather performance −Premium winter blend -36F cloud point −B20 to the winter mix resulted in a -4F cloud point for the blend High in solvency −Fuel filters may be affected pending fuel system / storage tank cleanliness (varnish) −Blends higher than B20 should use new equipment (tanks, plumbing, pumps) Increase of NOx by ~2% Oxidation stability less than #2 diesel fuel

12. 12 Recent Test Runs with B20 National BioDiesel Board / Engine Manufacturers Association API CJ-4 oils used CAT C-13 test −500 hr test −Piston deposits −Oil consumption Cummins ISB test −350 hr test −Cam lobe −Cam follower wear Mack T12 test −300 hr test −Liner / Bearing / Ring wear

13. 13 Recent Test Runs with B20 National BioDiesel Board / Engine Manufacturers Association CAT C-13 test −Top groove and top land deposits within pass/fail vs 100% diesel −Second ring land deposits reached top end of pass/fail limits −Oil consumption elevated, but within pass/fail limits −Two cold stuck rings reported, but not in the area of increased deposits Cummins ISB test −Acceptable results within pass/fail limits vs 100% diesel Mack T12 test −Lead wear limits were exceeded −TAN and Oxidation was significantly higher

14. 14 Federal Labeling Requirements December 16, 2008 the Federal Trade Commission required the use of retail labels to inform consumers of the percent of biodiesel in the fuel Labeling requirements are based on the concentration levels of biodiesel in the “finished” fuel B20 Biodiesel Bend Contains biomass-based diesel or biodiesel in quantities between 5 percent and 20 percent −Less than B5 blends - No label is required −B5 < BXX  B20 - Label are required but are NOT required to provide the exact percentage of biodiesel in this range −B20 < BXX < B100 - A specific blend designation is required (e.g. B25, B50, B99, etc.) −B100 - The heading must display “B100” B20 Biodiesel Bend Contains biomass-based diesel or biodiesel B100 Biodiesel contains 100 percent biodiesel

15. 15 State Labeling Requirements State requirements will vary from state to state For Example: Washington state requires: −Less than B2: No label is required −B2-B5 blended fuel must be labeled as: “Contains up to 5% biodiesel” −Greater than B5 must be labeled with the volume percentage of biodiesel

16. 16 Financial Incentives to Use Biodiesel Federal mandates −500 million gal B100 used per year in 2009 −1 billion gal by 2012 Federal tax incentives −Biodiesel excise tax credit: $1.00 or $0.50 per gal, depending feedstock source, for B100 (ends 2010) −30% credit for cost to install B20 (or E85) refueling stations (ends 2009) State mandates −Minnesota: B5 in every gallon of fuel sold by mid 2009 −B2: Washington (2008), Massachusetts (2010) State tax incentives - About 25 provide some incentives −IL: B1 – B10 partial state sales tax exemption; > B10, 100% exemption (6.25%)

17. 17 Emissions Reductions Results Emissions reductions estimated at 738,000 tons of NOx Emissions reductions estimated at 129,000 tons of PM after full compliance Estimated equivalent of parking 35,000,000 annually Estimated 12,000 premature deaths will be prevented annually by 2030

18. 18 Sources http://www.dieselnet.com/ Cational Biodiesel Board http://www.biodiesel.org/http://www.biodiesel.org/ EPA http://www.epa.gov/cleandieselhttp://www.epa.gov/cleandiesel EPA http://www.epa.gov/nonroad-diesel/2004fr/420r04008.pdfhttp://www.epa.gov/nonroad-diesel/2004fr/420r04008.pdf Technology & Maintenance Council presentation