1. 17.2.10 Japan Off-Road Emissions Control: Comparative Scheme 1 25 th JOINT TECHNICAL LIAISON MEETING Apr 16-17, 2015 Tokyo, Japan Japan: KOBELCO Yoichi Ueda

2. 2 17.2.10 Japan Off-Road Emissions Control: Comparative Scheme 1. Summary (Current Position): Ordinance by Ministry of Environment of Japan (MOE) entered into force, starting October 1, 2014. Engine output ranges are 19kW ≦ P< 570kW. Maximum 23 months grace period is permitted for 56kW ≦ P ≦ 560kW. This ordinance establishes the introduction schedule of “2014 emission control rule” for off-road vehicles (Non-road special motor vehicles) powered by diesel engines. Restriction values are equivalent to EPA “Final Tier 4”/EU “Stage Ⅳ ” rule.

3. 3 17.2.10 Japan Off-Road Emissions Control: Comparative Scheme Following major items are covered in this amendment (1) Adoption of Blow-by Gas Reduction Device (2) Introduction of New Test Method for Emissions Gas Test: *RMC (Ramped Modal Cycle) Method (3) Introduction of New Measuring Method for PM (Particle Matter): * (Opacimeter) “Light-Absorption Coefficient Measurement Method” is introduced (4) Provision for maintaining the function of emission control device: Proper replenishing of agents (DEF) are required (5) Amendment of Standards for Small Volume vehicles The detail of rules are not yet officially published: ・ ”Technical Guideline for urea SCR system for off-road vehicles” 2. Outline of Amendments

4. Unlike in EU and US, in Japan, exhaust emission control are governed by two separate Laws & Authorities, having different functions. 3. Scheme: Regulating Authorities MLIT (Ministry of Land, Infrastructure and Transportation) MOE (Ministry of Environment) Engine Certification * Engines for on-road vehicles [Road Transport Vehicle Act] *Engines for off-road vehicles [Off-road (vehicle) Act] Vehicle Certification *On-road vehicles*Off-road vehicles Technical Expertise *Heavy R&D personnel and funds in on-road vehicle technologies *Limited technical personnel and funds in off-road engines and vehicles ☆ Limited capabilities in engine technologies at MOE potentially leads to delay in publishing technical rules/guidelines for off-road emission control.

5. Unlike in EU and US, in Japan, not only engine manufacturers but also Vehicle manufacturers and Customers take role in the regulatory issues. 4. Scheme: Regulated Entities Responsible for; Required Actions; Engine Manufacturers *Development/Manufacture/Selling of the Engines meeting the regulation *Supply the certified engines *Put the certification decal on the new engine Vehicle Manufacturers *Development/Manufacture/Selling of the Vehicles with certified engine *Supply the vehicles with certified engines *Put the certification decal on the new vehicle Customers*Using the certified vehicle *Keeping the favorable emission level by appropriate maintenance *Using the recommended fuel *Using the vehicle with certification decal *Comply with the Recommendation for emission control

6. Unlike in EU and US, in Japan, exemptions are set for both “Continuous Production model” and “Small Volume model” 4. Scheme: Exemptions A) Continuous Production Model B) Small Volume Model Period*Maximum 23 months of grace period for new rule *No time limits Number of Vehicle * No limit on numbers manufactured*total 100 vehicle of previous generation engines can be manufactured (domestic only) *Not exceeding 30 units/year Percentage Rule *No percentage rule for manufacturing

7. 7 Reference 1 Comparison Table on Equivalent Standards for vehicles manufactured in smaller numbers. Rated Output Equivalent standards (EU, EPA) CurrentAmendment 19kW ≦ P ＜ 37kW Tier 4← 37kW ≦ P ＜ 56kW Stage 3B, Tier 4← 56kW ≦ P ＜ 560kW Stage 3B, Interim Tier 4Stage 4, Final Tier 4

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