DRAFT
         Regulatory Support Document
    Revised Gaseous Emission Regulations
       For 1984 and Later Model Year
  Light-Duty Trucks and heavy-Duty Engines
               September 1981
                 Prepared. By

Office of Mobile Source Air Pollution Control
    Emission Control Technology Division

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                    DRAFT
         Regulatory  Support  Document
    Revised Gaseous Emission Regulations
       For 1984 and Later Model Year
  Light-Duty Trucks and Heavy-Duty Engines
               September 1981
                 Prepared. By

Office of Mobile Source Air Pollution Control
    Emission Control Technology Division

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                        Tab 1 e of Conte_nt_s_

                                                               Page
1.   Introduction/Summary 	   1

     A.    Introduction 	   1

     B.    Summary	2

           1.    Technological Feasibility	2
           2.    Environmental Impact 	   3
           3.    Economic Impact	4

II.  Technological Feasibility	5

     A.    Introduction	 .  .  .   5

     B.    Current HC and CO Emission Rates	5

           1.    Overview:   The Transient Test	5
           2.    Current Technology Engines 	   6
           3.    The 9- Mode Test	8
           4.    Full Power Operation	9
           5.    Transient Operation/All Speeds and Loads ...  17
           6.    Cold Engine Operation	18

     C.    Available Control Techniques 	  18

           1.    Overview	18
           2.    Improvements to Fuel Metering	18
           3.    Improved Mixture Distribution	19
           4.    Other Physical Modifications 	  19
           5.    Other Calibration Optimizations	21
           6.    Improved Warm-up Characteristics 	  21
           7.    Summary of Possible Control Techniques  ....  22
           8.    Tradeoffs	25

     D.    Attainable Reductions/Proposed Emission Standards.  .  25

     E.    Idle Emission Standard	29

III. Environmental Impact 	  32

     A.    Introduction	  .  32

     B.    Changes in the Per Vehicle Emission Rates	32

           1.    Introduction	32
           2.    Hydrocarbons	33
           3.    Carbon Monoxide	 36

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                    Table  of  Contents  (cont'd)
     C.     Ambient Air Quality  Impact:  Carbon Monoxide   .... 39

           1.     Introduction	39
           2.     Scenarios  Analyzed  . •	39
           3.     Results and Discussion	42
           4.     Conclusions	.  . 42

     D.     Other Environmental  Impacts	 46

           1.     Lead	46
           2.     Sulfuric Acid   .	46
           3.     Misfueling	46

IV.  Economic  Impact	49

     A.     Introduction	 49

     B.     Cost Implications of the  Proposed Revisions   .... .49

           1.     Revision of the HDE Gaseous
                 Emission Standards  	 49
           2.     Revisions  to the LDT/EDE
                 Enforcement Provisions 	 65

     C.     Total Economic Impact of  the Proposed
           Revisions	73

           1.     Light-Duty Trucks  	 73
           2.     Heavy-Duty Gasoline Engines   	 73
           3.     Heavy-Duty Diesel Engines  	 79
           4.     Aggregate  Savings  	 79
                            II

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                             Chapter  I

                       INTRODUCTION/SUMMARY

A.   Introduction

     In December of 1979, EPA  promulgated  gaseous  emission regula-
tions  for  1984  and later model  year heavy-duty engines  (HDE).   A
similar rulemaking affecting  1984 'and later model  year  light-duty
trucks  (LOT)  was  promulgated  in September  of  1980.   Although  the
primary function  of  these actions was  to  implement  the  statutory
HC  and  CO   emission  standards,  these   rulemakings  implemented
several other provisions  also to be effective for the  same model
year.  The major provisions common to both  rulemakings included:

     1.    The statutory HC and CO emission standards,

     2.    Revised useful life definition,

     3.    Revised certification requirements  with  respect to dur-
ability testing and allowable maintenance,

     4.    An idle  test  and  an  idle emission standard  for gaso-
line-powered  light-duty  trucks  and  heavy-duty   gasoline-fueled
(HDG) engines, and,

     5.    The  implementation  of a  10  percent Acceptable Quality
Level,\(AQL) for Selective Enforcement Audit (SEA)  testing.

     The HDE  final rulemaking also  included  a  new  emission test
procedure and implemented the basic SEA program for HDEs.

     This large number of new  and revised  requirements was promul-
gated  simultaneously, effective  for  the same model year,  to avoid
the  procedural  disruption  and  waste  associated  with  frequent
changes  in   emission  regulations.    This   comprehensive  approach
allows  manufacturers  to  deal  with  the impact of   several regula-
tions  at  once,  thus  avoiding  repeated financial  outlays  for  re-
search and development,  tooling changes, and recertification.

     In the economic  analysis  supporting  the  1984  HDE  final rule-
making,  EPA  made  the finding that  "[m]ost   engine  manufacturers
should  have  little difficulty financing  the  required  investment,
barring. a. .post-1980. rece.ssi.pn"  (emphasis   added).   When  the eco-
nomic  impact  of the final rule was being analyzed  the industry had
just finished a year  of record  sales (1978),  and  sales  into 1979
continued strong.   However,  in  late 1979  and into  1980  when  the
general  economic  downturn became more  severe, LOT and  HDE sales
dropped dramatically.  Over  the  past  five  to  six  financial report-
ing  periods  (quarters)  since late  1979, most  companies  in the  LDT
and  HDE markets  have reported  substantial  operating losses.   In

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general,. 1980 was a year of record  losses  in  the motor vehicle in-
dustry.

     In response  to  this  economic crisis in  the  industry,  and the
need for short-term cash flow  improvements, the  Administration has
announced a  number  of regulatory relief  initiatives.   Preliminary
analyses  indicated  that  several provisions  of  the   1984  LDT/HDE
final  rulemakings which  required  substantial   capital  investment
could be relaxed  without causing a  large loss in  the  emission re-
ductions  and  air quality  improvements  expected  from  the  final
rulemakings.   The three major  provisions  are:   1)  a  three-year re-
vision  of  the HDE  gaseous  emission  standards  to   levels  which
heavy-duty  gasoline-fueled  engines  (EDGE) could  achieve  without
catalytic converter  technology,  2)  deferral  of  the  implementation
of the HDE  SEA program  from the  1984 model year to  the  1986 model
year,  and  3) a relaxation  of  the  AQL  required during  formal SEA
testing of LDTs and HDEs.

     Even though  this  rulemaking will establish no  additional re-
quirements  and will  actually  provide  cost  savings  for both the
regulated  industry  and the  consumer,  EPA has  decided  to  prepare
this Rulemaking  Support  Document to address the  issues  which will
arise  in  this action.   In  Chapter   II,  Technological  Feasibility,
we  address   the  level  of   the  "non-catalyst"  HDE emission  stan-
dards.  Chapter III examines  the air  quality  impacts of  the in-
creased emission  levels resulting from  the  revised HDE CO emission
standard and  the  relaxations in  the enforcement  provisions.  Chap-
ter  IV estimates  the  total  cash expenditure  and cash  flow savings
which  would result  if the  proposed actions are  implemented.  The
results of  these analyses are summarized below.

B.   Summary

     1.     Te cjmolo^ica_l. Fe,asi.bility

     The  level  of attainable emission  standards  for  HDG engines is
influenced  by several factors.  First,  is  the  limitation  to non-
catalyst  technology.  Second,  given the  nature  of  this action, the
technology  used should  be  less  expensive to  develop  and purchase
than a catalyst system.  Third,  because of the limited time  avail-
able  for  development, tooling,  and certification,  the  technology
used should not require  substantial leadtime.   Finally,  impacts on
fuel  economy,  driveability,  and power  must  also be considered.
Given  these constraints,  the available technology to  gain greater
emission  reductions becomes  limited to  the conventional approaches
that have been used in the LDV and  LDT fleets for several years.

     The  results  of.the analysis  in Chapter  II  indicate  that the
HDE  HC, NOx,  and  idle CO standards  in  place  for 1984  are  feasible
even  under  the constraints  discussed  above.   However,  the  HDE CO
                             Z

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emission  standard  will have  to be  revised  up from  the statutory
standard to 35 g/BHP-hr.

     EPA expects  that  HDG engines can comply  with  the HC standard
through  the  use of  modifications,  components, and  recalibrations
•aimed at  reducing  cold operation emissions and providing  more ef-
ficient air-fuel  (A/F)  mixtures during all operating  modes.  Com-
pliance  with  the  revised HDE  CO standard will  be  achieved pri-
marily through carburetor  recalibrations  and  components which will
reduce cold operation  CO, provide leaner A/F  mixtures in all ope-
rating modes,  a.nd increase  the amount and  efficiency  of  the air
injection  system.   Emission levels  of  35 g/BHP-hr for  CO  and 1.3
g/BHP-hr  for  HC have  alrady been  achieved  on current technology
engines.   Based  on the emission  levels  of current  technology en-
gines  the idle  CO and NOx standards  should  be  achieveable with
little difficulty.

     Since only  the  1984  HDE CO  emission standard  is  proposed for
revision,  and  HDD  engine CO  emission levels  are  below  even the
statutory  level,  there  will be no substantial  impact  on the tech-
nological  feasibility for HDD engines.

     2.    Eny.vrpnmenXa.l. .Impact

     Implementation  of   the  proposed  relaxations  and  revisions
would result  in greater per vehicle  emission  rates  than would oc-
cur  if  the 1984 LDT and  HDE  gaseous emission regulations remained
in effect.  These  greater emission rates, primarily  in HC and CO,
would  result  from  all three  of the  major  provisions  being con-
sidered for change.

     The  adoption  of non-catalyst technology  will have two effects
on the  HC and CO emission  rates  of  HDG  vehicles.   First,  the re-
striction  to  non-catalyst  technology will  force the  revision of
the  HDE  CO emission standard.   This will have no real  effect on
heavy-duty diesel  (HDD) vehicles,  but will cause  an increase in CO
emissions  from  HDG  vehicles.   Second,   the  low  mileage  emission
levels  of  HDG vehicles for both  HC  and  CO will  increase  as a re-
sult  of  the  smaller  deterioration   factors  associated with non-
catalyst  technology.

     The  two-year  deferral of  the HDE SEA program could also lead
to  an  increase  in the HC  emissions from all  heavy-duty vehicles
(HDV) and  the  CO emissions from HDG vehicles.   When no SEA program
is  in  effect manufacturers  do not  have  to account  for emissions
variability in  their production engines.   As  a result, the average
emission  level  for any pollutant would be somewhat  higher without
an  SEA program.   However, EPA  expects some  HDE manufacturers will
certify  in 1984 accounting  for the  impacts  of the  1986  SEA pro-
gram,  thus eliminating the  potential need for recertification in
1986  and  at  the same  time  minimizing the increase  in HC  and CO
emissions.

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     The proposed relaxation  in  the AQL applicable to  LDT  and HDE
SEA will also lead  to  slight  increases  in  emission levels.   Relax-
ing the AQL  from .10 to 40 percent  allows  a higher degree  of  non-
compliance during any  given audit.   Under  a 40 percent AQL totally
accounting for emissions  variability is less  important  than under
a 10 percent  AQL.   Most manufacturers account  for  emissions vari-
ability by lower target emission levels.   Thus,  the  relaxation of
the  AQL will  likely  lead  to higher target  emission  levels  and
overall higher per vehicle emission rates.

     As is discussed  in the  Environmental   Impact  Chapter,  EPA ex-
pects  that  if the  proposed changes are implemented,  an ozone and
CO air  quality  loss of 1-3 percent  will occur as  compared  to the
base case (the 1984 LDT and HDE regulations as promulgated).

     3.    Economic. .Imp,act

     EPA expects that  the proposed  relaxations and revisions  will
provide the regulated  industry with substantial cash  flow and  cash
expenditure savings.   In  1981 dollars,  discounted to  January 1984,
the cash expenditure savings  sum  to $102.7 million dollars  and the
cash  flow  savings  sum to $43.2  million  dollars.   Of  the  $102.7
million dollars  in  cash expenditure savings,  $72.8 million  is  pre-
1984 capital  investment.   Virtually  all of the  cash  flow  savings
is capital investment deferred from  1982-83 to  1984-85.

     Over the 5-year  period  1984-88, the  aggregate savings  to the
nation  sum to over  $449 million dollars.   Most of  this savings is
attributable  to  lower  purchase  and  operating costs  for  HDG ve-
hicles.              :

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                            CHAPTER II

                    TECHNOLOGICAL FEASIBILITY/
                 ATTAINABLE  NON-CATALYST STANDARDS

A.   Introduction

     In this chapter, EPA analyzes available technologies and  pro-
jects what  levels  of HC and  CO emissions for heavy-duty gasoline
(HDG)  engines  are  attainable  for  1984,  assuming  that  oxidation
catalysts are not employed.

B.   Current HC and CO Emission Rates

     To  properly evaluate  potential  non-catalyst emission  reduc-
tions from  HDG engines, current  emission rates  must be  reviewed.
Because  absolute emission  levels are inherently  affected  by  the
test procedure over which they  are measured, a review of  the  tran-
sient emission test is appropriate.

     1.     Overview:  The Transient Test
     The  transient  test  is  performed on a  computer-controlled  en-
gine dynamometer.   During  the test,  the  engine is driven  through
continuously-varying speeds  and  loads according to prescribed  cy-
cles.  These  speed  and load cycles were developed from  in  vehicle
performance data taken from 57  urban HDG trucks:  30  in the joint
industry/EPA  CAPE-21  study  in New  York  City,  and 27  in the  EPA-
conducted  Los Angeles  CAPE-21   study.   These  trucks  were  actual
commercial vehicles operated  by  their own drivers; the performance
data was  taken  in  the course of their daily  business.   These  data
were then used to  generate driving  cycles  representative  of  the
input data.

     There are several key aspects of the transient test:

     a.    It is engine specific,

     b.    It is composed  of subcycles,  each of which  retains  the
characteristic driving patterns of specific urban localities, and,

     c.    It  is  performed on a  "cold"  engine, and then repeated
with the  engine in a warmed-up state.

Each of  the above  characteristics  is critical in evaluating  cur-
rent and  future emission trends.

     Engine specific means  that  the cycles  are defined in terms of
percent speed and  percent  load,  i.e., any  two engines  are required
to  deliver  identical percent  powers -throughout  the   cycle  even
though  their  absolute power  levels  may  be different.   This,  and
the  fact  tha.t  emissions  are expressed  as mass  per   output  work

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(work is simply power multiplied  by  the time at that power), make
emission results  between engines comparable,  regardless  of  their
Specific rated power and varying performance characteristics.

     Secondly, the cycle  is  actually four subcycles joined end  to
end, each  one characteristic of  a particular  geographic  area and
type of driving:

                                    Duration
	Subcycle	    (sec)      Charac^tejcistic^s

1.  New York Non-Freeway (NYNF)        272    low power; stop-and-
                                              go;  45% idle;
                                              avg.  spd.  7.8 mph

2.  Los Angeles Non-Freeway (LANF)     309    moderate power,  tran-
                                              sient; 26% idle;
                                              avg.  spd.  15.1 mph

3.  Los Angeles Freeway (LAF)          316    high-speed,  high-
                                              power cruising;
                                              avg.  spd.  45.54  mph

4.  New York Non-Freeway (NYNF)        272    repeat of  1.

Each subcycle  demands  different  performance  from  the  engine,  and
produces different  absolute  emission  levels.   These  performance
demands  can  be  isolated .and  their emissions  impact  reasonably
estimated.

     Thirdly,  the heavy-duty  engine  dynamometer test  is similar  to
the light-duty vehicle  test  in  that  the total  emission  results  are
derived from a weighted average of a "cold"  engine cycle  and  a  hot
engine  cycle.   For the  heavy-duty  test,  the  cold  start  emission
cycle  consists of  the  above  four   subcycles  (NYNF,  LANF,   LAF,
NYNF),  and  is weighted 1/7  of  the   total;  the  hot start   cycle  is
identical  to  the  cold, begins  20 minutes  after  shut down of  the
engine  from the  cold  start,  and is weighted  6/7  of  the  total.
These  weighting   factors  were  derived   from the   observed  in-use
ratio of cold  starts to hot  starts in the CAPE-21  survey..  Since a
cold engine  characteristically  emits higher amounts of HC  and  CO,
the  cold  start cycle  is significant when discussing  current  and
future emission levels.

     2.    Current Technology Engines

     Table  11-1 presents a list  of  1979 MY -HDG engines  tested  by
EPA on  the transient  cycle.   Table  II-2  presents  subcycle by sub-
cycle HC emission  breakdowns for  each engine,  along with  a percent
contribution  of' each   subcycle  to   the   total  emission  results.
Table II-3 presents the same  data for CO.

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                           Table II-l
               1979  HDG Current Technology Baseline
  Engine
Family
Ford 400
Chrysler 440
Ford 370
IHC 446
GM 350
Chrysler 360
GM 350
IHC 345
GM 454
GM 366
GM 292
GM 454
6.6L "E"
RBM
6.1L "E"
MV8
113
LAI
113
V345
114
114
.112
115
    HC*
(g/BHP-hr)
                                   2.
                                   2.
                                   2,
                                   2.
                  4.89
                  3.83
                  3.51
                  3.27
                  3.14
                    67
                    48
                    44
                    30
                  2.16
                  2.12
                  1.31
      (H)**
      (H)
      (H)
      (H)
      (M)
      (M)
      (M)
      (M)
      (M)
      (L)
      (L)
      (L)
   CO*
(g/BHP-hr)

 112.4 (H)
 112.4 (H)
  47.8 (L)
  90.4 (H)
 118,
  96,
(H)
(H)
  64.8 (M)
  34.4 (L)
  51.6 (L)
  43.4 (L)
  55.0 (L)
  78.5 (M)
*   Average of several  tests.

**  Engines are classified as high (H),  moderate (M),  or lower (L)
emitters of a given pollutant.   Note  that  a high HC engine is also
usually a high CO engine,  but not  in every case.

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     Immediately noticeable in  Table  II-l are the  high  levels of
HC  and  CO emissions.   Note that  the engines were certified for
1979 at  1.5  g/BHP-hr  HC and  25  g/BHP-hr  CO,  but  on  the  9-mode
steady-state  test procedure.  In  complying  with  any motor vehicle
emission standard,  the design approach is to match  the engine cal-
ibration and.  emission control  system to  the test  procedure it-
self.  This is  the  case  in light-duty (see  Reference  2),  and in-
deed in  heavy-duty.  Table  II-4  presents  comparative  HC  and CO
emission data  for  both  transient  and 9-mode  test  procedures for
the  current  technology  (1979)  engine baseline.   The  large dif-
ferences  in  measured  emissions  are  explainable  by  the  readily
identifiable  differences in required engine performance under each
test.

     3.     The 9-Mode Test

     The 9-mode  test  procedure  consists  of nine  steady  state en-
gine operating modes which  are  weighted  into a composite  emission
number:

Mode        Speed (RPM)          % Power        Weighting Factor

 1             Idle                  0               .232
 2             2000                 25               .007
 -3             2000                 55               .147
'4             2000                 25               .077
 5             2000                 10               .057
 6             2000                 25               .077
 7            . 2000                 90               .113
 8             2000                 25               .007
 9             2000           Closed Throttle        .143

The  9-mode is  performed  with the engine  in a warmed-up state, at
only one engine speed (except  idle).  To date,   it  can be  firmly
stated that on  all  current  production engines  all efforts  at emis-
sion control on HDG engines have  been directed primarily  at these
modes.

     There are  three major areas  of  engine  operation  which the
transient test contains,  but not the 9-mode:

     a.     Full power operation;

     b.     Transient operation,  at al^ speeds and  loads;

     c.     Cold engine operation.

These areas give rise  to the measurable emission differences, and
reflect  where   control  technology  will  need  to  be  directed for
1984.   In  this analysis we  will  show that  full  power (power en-
riched) LA Freeway  modes are the major  source of CO emissions  in
current technology  engines, and also  a significant  source  of HC  on
the  higher emitting engines.   Secondly,  the major source  of  HC  on
the  lower HC emitting engines will  be shown to be  the cold  engine
                             8

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operation.   Finally,  on  the  lower-emitting engines,  it will  be
shown that  non-cold  start HC  and  the remaining  CO emissions are
not as attributable to  any  one mode or  source,  and are primarily
relatable to  inadequately controlled  mixture  calibration  as the
engine undergoes transients  at all speeds and loads throughout the
entire test  cycle.

     4.     Full Power  Operation •

     Under wide open throttle (WOT) conditions,  additional fuel is
added to  the  combustion  mixture.   This  power  enrichment  causes
richer than  stoichiometric  mixtures, thereby promoting  power and
driveability,   but  drastically increasing  unburned fuel  (HC) and
partially oxidized  fuel  (CO)  emissions  due to  lack  of  oxygen.
Present  day  engines  certified  to the  9-mode  were  emission con-
trolled  primarily up  to 90 percent power (at only  a single speed);
note that current technology engine power valves are calibrated to
cause power enrichment  above  90 percent power.   Thus,  full  power
emissions on current  technology engines are  uncontrolled.

     This observation  is demonstrated  by  the  data  presented  in
Tables II-2 and  II-3.   In both tables, data from all twelve cur-
rent technology engines tested at EPA are presented.  In addition,
the engines are also grouped into three categories:  high, medium,
and low emitters of a given pollutant.   Note mode 7,  the LA  Free-
way (LAP) in the hot-start portion of the test:  29.6 to 65.7 per-
cent  of  brake  specific  CO (BSCO)  emissions are  attributable to
this high-power segment.  More interesting are the  trends observed
in  segment  percentage  contributions  from  the  highto  the  low-
emitting engines.  As the average composite BSCO emissions go from
105.5 g/BHP-hr (higher emitters) to  46.1 (lower emitters), i.e.,  a
2.3 fold  decrease,  all other  subcycle  model percentages increase
by approximately two-fold except for the LAF mode,  which decreases
in  contributing  percentage  from  56.3  to  36.7  percent  (i.e.,   a
lower percentage of a  lower composite number).   Had all modes de-
creased  proportionally,  the model percentages  should  remain con-
stant.  Clearly the major difference between high  and lower CO en-
gines is the amount of  CO generated during the LAF segment.  This
is primarily a result of  power  enrichment  in the  carburetor during
the LAF's characteristic  high  speed,  high power operation.   (Per-
haps most indicative is the actual mass of  CO generated  during the
LAF segment.  Note in Table  II-3  that total grams of CO generated
in  the  LAF segment are 50-650 percent  higher  than  those  of the
next highest hot start segment.)

     The data for HC (Table II-2) is  less  dramatic with  regards  to
LAF dominance,  but the  trends  are  nevertheless  the  same.   Every
high  CO  engine, (i.e,  those  with LAF dominance  of CO  emissions)
also has dominant LAF HC  emissions  (ranging  from  23.7 to  36.0 per-
cent  total  contribution).  This  is  logical since  in this  opera-
tional mode both emissions  arise  primarily from  inadequate  oxygen
for  total combustion  in the  fuel-enriched mixture.   Again,  the

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                                                                   Table 11-2
                                               Engine  by  Engine  Transient HC Emission  Breakdown
                                 Cold Start
o
        IIIC 446
        1IIC 345
        CM 366
        CM 350
        F 400
        F 370


lln)
2|b)
3[c]
4|d|
1.
2.
3.
4.
I.
2.
3.
4.
1.
2.
3.
4.
1.
2.
3.
4.
1.
2.
3.
4.
I
NYNF
24.73
23.26
.289
8.7X
25.50
64.84
.40
17. OX
47.86
94.7
."64
28. 8*
61.49
95.0
.86
33.5%
32.91
46.77
' .56
11.77.
20.11
52.25
.36
10.9%
2
LANF
17.11
6.97
.188
5.6*
9.09
5.51
.13
5.52
12.73
6.24
.16
7.22
12.57
6.30
.17
6.6%
16.16
9.66
.26
5.4%
8.13
5.29
.14
4.2X
3
LAP
15.10
1.81
.166
5.0%
4.93
0.78
.07
3.0%
5.95
0.81
. .08
3.6%
6.42
.92
.08
3.1%
14.67
2.60
.24
5.0%
7.39
1.35
.13
3.9%
4
NYNF
5.55
5.23
.061
1.8%
3.80
5.20
.06
2.6%
2.61
2.69
.03
1.4%
2.81
3.06
.04
1.6%
6.68
9.38
.11
2.3%
1.71
2.47
.03
.9%
                                                             20 .
                                                          Minute
                                                            Pause
                                                                                  Hot  Start
5
NYNF
9.66
10.65
.677
20.4%
4.82
7.14
.44
18.7%
4.96
5.69
.39
17.6%
4.71
5.56
.37
14.4%
8.62
12.10
.87
18.1%
8.05
13.37
.85
25. U
6
LANF
11.14
4.61
.736
22.2%
6.29
3.40
.54
23.0%
4. By
2.28
.36
16.2%
6.50
3.16
.49
19.1%
10.11
5.77
.96
20-. 0%
7.65
A. 78
.76
23.0%
7
LAF
12.53
1.50
.831)
25. OX
4.84
0.75
.42
17.9X
5.07
0.69
.37
16.7%
4.5b
.65
.35
13.6%
13.17
2.33
1.25
26.0%
6.96
1.26
.69
20.8%
8
NYHF
5.71
5.36
.373
11.2%
3.40
4.38
.29
12.3%
2.62
2.74
.19
8.6%
2.74
2.95
.21
.8.2%
5.69
8.02
.55
11.5%
3.4b
5.02
.35
10. 6X
Composite
  le s t
 Result
                                                                                                              3.32
                                                                                                              3.3i!
                                                                                                              10U<
                                                                                                              2.35
                                                                                                              2.3i
                                                                                                              100X
                                                                                                              2.22
                                                                                                              2.22
                                                                                                              10UX
   2.57
   2.57
   100X
                                                                                                             4.80
                                                                                                             3.31
                                                                                                             3.31
                                                                                                             1UOX
Me'liuiu, or
Low Kin i 11 c r | e. I

-------
                                                     Table  H-2  Uont'd)
                        Cold  Start
Engine by Engine Transient HC Emission  Breakdown

                                  Hot Start
C 360
C '.'.0
CM 454
CM 292
CM 454


1.
2.
3.
4.
1.
2.
3.
4.
1.
2.
3.
4.
1.
2.
3.
4.
1.
2.
3.
4.
1
NYNF
8.56
13.11
.11
4.5*
17.38
20. 12
.19
5. OX
16.38
19.06
.20
15.5%
47.31
65.65
.80
37. Ti
44.54
62.38
.44
17.9%
2
LANF
7.18
3.42
.09
3.6%
10.57
4. 10
.11
2.9*
3.88
1.74
.05
3.9%
4.33
2.62
.07
3.3Z
15.43
5.75
.15
6.U
3
LAF
8.22
1.08
.10
4.0%
24.67
2.78
.26
6.8%
5.34
,63
.06
4.7%
2.08
0.39
.03
1.4%
6.80
0.68
.06
2.4%
4
NYNF
3.63
3.96
.05
2.0%
7.76
7.41
.08
2.1%
1.68
1.83
.02
1.6%
1.64
2.08
.03
1.4%
6.43
5.83
.06
2.4%
5
NYNF
10.23
13.54
.80
32.7%
10.25
11.32
.67
17.62
4.94
5.82
.35
27.1%
4.12
6.17
.43
20.3%
11.85
11.24
.70
28.5%
6
LANF
6.41
2.99
.47
19.2%
9.32
3.65
.57 .
15.0%
2.39
1.07
.17
13.2%
3.71
2.20
.37
17.5%
6.97
2.52
.39
15.9%
7
LAF
7.87
1.04
.58
23. 7i
22.22
2.40
1.37
" 36. OX
4.95
0.60
.33
25.6%
1.95
0.37
.20
9.4%
5.65
0.57
.33
13.4%
8
NYNF
3.52
3.77
.28
10.2%
9.10
11.69
.56
14.7%
1.57
1.72
.11
8.5*
1.83
2.33
.19
9.0%
5.80
5.25
.33
13.4%
Composite
  Test
 Result
                                                                                                    2.45
                                                                                                    2.45
                                                                                                    I DUX
                                                                                                    3.bl
                                                                                                    3.bl
                                                                                                    lOUi
                                                                                                    1.29
                                                                                                    1.29
                                                                                                    100X
                                                                                                    2.12
                                                                                                    2.12
                                                                                                    100%
                                                                                                    2.46
                                                                                                    2.46
                                                                                                    100%
                                                                                                                  High
                                                                                                                Medium, or
                                                                                                                Low hinittcr

-------
                                                          Table  U-2  (cont'd)
                                           Engine -by -Engine _T ran8ie_nt_ _HC Ernie s ion B^rea kdown
1.
CM 350 2.
3.
4.
Av«.Tnv.<-' :
All' 4.
K UK inn 9
Avcrac.i: :
ilif.h IIC 4.
Engines
Average :
M..-il. IIC 4.
Engines
Low (1C 4.
Kii)'inc;8

I
NYNF
21.04
31.48
.34
12.8*
17.0%
9.1%
17.1%
27.3%
Cold Start
2 3
LANF LAF
6.13 10.39
3.53 1.71
.09 .16
3.4% 6.0%
4.8% 4.1%
4.5% 5.2%
5.0% 3.7%
4.«% 3.2X

4
NYNF
3.69
5.34
.06
2.3%
1.9%
1.8%
2.2%
1.5%
20-
Minute 5
Pause NYNF
3.66
5.18
.34
12.8%
21.1%
20.5%
21. 4X
21. 7X
Hot Start
6 78
LANF LAF NYNF
5.01 9.51 3.71
2.93 1.57 4.51
.46 .87 .34
17.3% 32. 7X 12.8%
18.4% 21.7% 11.0%
20.1% 27.0% 12.0%
18.9% 20.3% 11.4%
15. 6X 17.2% 8.7X
Total High
Test Medium, or
Composite Low Emit tor
2. bo H
2.66
lOOi
Emission l.evul
100% (12 engines) 2.1b
100% II (.4 engines) J.bi
100% M (5 engines) 2.5U
100% L O engines) l.bB
|a|   Total grams per subcycle.
|bl   Cromn per brake-horscpower-hour per subcycle.
|cl   Subcycle contribution,  in  effectively-weighted grams per  brake-horsepower-hour,  to the  composite  test result.   Iwuen
     mldcifl together, all  subcycle  contributions add up  to  the composite  test  result).  For  methodology,  see Kelerence  1,
     pp.  4-5.
ld|   Kclnnivc percentage o£ subcycle contribution (3) to the total composite  test result.
|e)   In grams per brake-horsepower-hour:  High  (H)/ 3.3
                                          3.3^ medium (M)"/ 2.3
                                          Low (L)<2.2

-------
                                                          Table 11-3
                                       Engine-by-Engine Transient CO Emission Breakdown
I Hi: 446
 IIIC 345
CM 366
CM 350
F 400
F 370



1


NYHF
lla]
2|b|
3|c|
4 Id)
I.
2.
3.
4.
\.
2.
3.
4.
1.
2.
3.
A.
1.
2.
3.
4.
1.
2.
3.
A.
236.
222.
2.
3.
90.
2^9.
1.
4.
143.
284.
1.
it.
171.
264.
2.
3.
222.
316.
3.
3.
85.
221.
1.
3.
,4
4
79
0%
3
6
40
32
7
3
9
5%
2
5
4
5%
9
7
8
4%
2
5
5
32
Cold
2
LANK
245.2
99. 9
2.73
2.9%
84.7
51.4
1.24
3.8%
140.7
69.1
1.8
4.3%
155.2
77.7
2.1
3.1%
162.4
97.0
2.6
2.3%
106.6
69.4
1.8
4.0%
Start
3
LAF
774.8
93.0
8.63
9.3%
153.2
24.2
2.24
6.82
187.7
25.5
2.4
5.7%
404.5
57.8
5.3
7.8%
620.6
109.9
10.0
8.8%
230.7
42.1
3.9
8.7%

20-
4 Minute
NYNF Pause
127
119
I
1
60
79

2
86
88
1
2
102
116
1
2
130
183
2
1
21
30


.2
.9
.42
.5*
.0
.2
.88
.rx.
.1
.8
.1
.6%
.6
.6
.4
.1%
.6
.5
.1
.9%
.4
.9
.4
.9%
Hot Start
5
NYNF
123.3
135.9
8.73
9.4%
39.7
58.9
3.70
11.3%
88.0
100.8
6.9
16.52
111.6
131.9
9.3
13.7%
103.5
145.4
10.6
9.4%
38.8
64.4
4.2
9.3%
6
. LANF
200.0
82.7
13.3
14.3%
60.2
32.5
5 . 29
16.1%
113.3
52.9
8.7
20.8%
130.2
63.4
10.1
14.9%
161.6
92.2
15.6
13.8%
80.1
50.0
8.1
18. 0%
7
LAP
708.1
84.7
47.1
50.7%
150.6
23.2
13.11
40.02
167.0
22.8
12.5
29.8%
376.6
53.9
29.7
43.8%
582.3
103.0
56.2
49.6%
206.7
37.4
21.0
46. .72
8
NYNF
122.7
115.1
8.20
8.82
56.1
72.3
4.94
15.12
B8.2
92.1
6.6
15.82
95.3
102.5
7.4
10.9%
127.3
179.6
12.3
10.9%
40.3
58.4
4.1
9.12
Composite Hi^li
'I'est Medium, or
Kesult Low him i 1. er tc 1
.
92. b8 "li
92. b8
1002
-
32.8 L
3/.0
1002
_
41.9 L
41.9
1002
_
67. B M
67.8
1002
_
113.2 ii
113.2
1002
_
45.0 L
45.0
100*

-------
               Table  11-3  (cont'd)
Engine~by-Engine Transient CO Emission Breakdown




C 360



C WO



<;M A 5 A
(Short
Block)

CM 292



CM A 54
I Tall
Block)



1.
2.
3.
4.
I.
2.
3.
4.
1.
2.
3.
It.
1.
2.
3.
A.
1.
2.
3.
A.

1
NYNF
107.5
164.7
l.A
1.5%
228.3
26A.3
2.5
2.2%
250.3
291.3
3.1
3.8%
315.0
A37.1
5.6
10.2%
204.8
286.9
2.1
3.8%
Cold
2
LANF
1AA.7
68.8
1.8
2.0%
203.6
78.9
2.1
1.8%
86.2
38.7
1.0
1.2%
115.7
69.9
2.0
3.6%
175.6
65.5
1.7
3.0%
Start
3
LAF
868.6
113.8
10.8
11.7%
1262.0
1A2.1
13.1
11.3%
769.6
91.3
9.0
11.0%
159. A
30.2
2.7
4.9%
376.1
37.9
3.6
6.4%

A
20-
Minute
NYNF Pause
61
66


100
96
1

65
71

1
6A
81
1
2
144
131
I
2
.2
.7
.8
.9%
•&
.0
.0
.9%
.2
.1
.8
.OX
.7
.9
.1
.0%
.6
.1
.A
.5%
Hot Start
5
NYNF
56.6
76.3
4.6
5.0%
.75.2
83.0
5.0
4.3%
86.9
102. A
6. A
7.8%
89. A
133.7
9.6
17.5%
153.9
146.1
9.3
16.7%
6
LANF
127.9
59.5
9.6
10. A%
161.1
63.0
10. 0
8.7%
102.8
45.8
7.2
8.81
111.0
65.9
11.2
20. AX
157.1
56.7
9.0
16.1%
7
LAF
783.0
103.3
58.6
63.7%
1217.2
131.7
75.9
65. 7X
71A.1
87.2
A9. 5
60. AX
161.5
30.5
16.3
29.6%
366.2
36.9
.20.9
37. 4X
8
NYNF
58.5
62.6
A. A
A. 8%
9A.I
89.9
5.9
5.1%
69.7
76.2
A.y
6.0Z
70.0
89.1
. 7.1
12.9%
138.2
124.9
7.9
14. 1%
Composite High
Test Medium, or
Result Low fciuicter
_
92.0 H
92.0
100*
_
115.6 li
115.6
-
_
81.9 H
81.9
loox
-
55.0 L
55.0
100X
_
55.9 L
55.9
100%

-------
                                                           Table  U-3  (cont*d)
                                           • Engine~by~Ensine  Transient CO Emission breakdown

1
NYHF
1. 196.1
r,M 350 2. 293.3
3. 3.2
4. 3.2%
Avt: rnt;e
All 4. 3.9Z
1C UK incs
Average
H i nil CO 4 . 2.6%
Engines
Aver.ige
Mo.l CO 4. 3.7X
f-nj; incs
A v c r n y, e
Low CO 4. 5.2Z
KM,; i IK'S
Cold
2
LANF
108.9
62.6
1.7
1.7%
2.8%
2.1%
2.2Z
3.7%
Start 20-
3 4 Minute.
LAF NYNF Pause
805.5 68.1
132.21 98.6
12.1 1.1
11.8% 1.1%
9.5% 1.7%
12.6% 1.2%
9.4% 1.6%
6.5% 2.1%
Hot Start
5 6 7
NYNF LANF LAF
92.1 104.8 640.8
130.1 61.4 106.0
8.5 9.7 59.2
8.4% 9.6% 58.3%
10.7% 14. 2X 47. 9X
7.1% 11.1% 56.3%
10.8% 11.9% 52. U
14.3% 18.3% 36.7%

8
NYNF
64. B
78.8
6.0
5.9%
9.9X
7.0%
8.5%
13. 4Z
Total liiy,h
Test Mertiuu, or
Composite Low bmittur
101.5 H
101.5
100%
A v t; r a , , <_• 1 1 C
hju i s y i on Li: vi
10UX . (12 engines) 7b. 7
100% (5 engines) lO'j.'j
100% (2 enyinus) 7't.y
100% (5 engines) 40. I
In I   Total . c.rninB pnr subcyclc.
|b]   Urams PIT brnko-horscpowcr-hour  per  subcycle.
(c|   Siibcycle contribution,  in effectively-weighted  grams per brake-horsepower-hour,  to  the  composite  test  result.   (wiu:n
     iirlilcd t..j|;ei.lier, all  subcycle contributions  arid up  to  the composite  test result).   For  methodology,  see  Kulurcncu  1.
     pp.  4-i.
| (I)   Uelntive percentage of subcycle  contribution (3) to the total composite  test  result.
[c|   In grnniR per brnkc-hurecpowcr-hour:   Hie''  (H)/90
                                           90 >  medium (M5"> 60
                                           Low

-------
                            Table'II-4
Engine
                 9-Mode Versus Transient Emissions
                 Current Technology Engines[1][2]
                            BSHC
9-Mode
1979 GM 292
1979 GM 454
1979 GM 350
1979 IHC 446
1979 GM 366
1979 IHC 345
1979 GM 350
1979 Ford 400
1979 Ford 370
1979 Chrysler 360
1979 Chrysler 440
1979 GM 454
0.42
0.39
0.79
0.42
0.50
2.73
0.59
2.15
1.20
1.18
0.83
0.47
Transient
                                 2,
                                 2.
                                 4.
                                 3,
            2.12
            2.30
            3.14
            3.27
            2.16
              44
              48
              89
              51
                                 2.67
                                 3.83
                                 1.31
                                 BSCO
9-Mode

 26.86
 17.33
 14.62
 24.28
 17.40
 17.68
 20.40
 53.16
 37.12
 21.38
 10.47
 20.11
Transien.^

   54.98
   51.55
  118.07
   90.40
   43.43
   34.44
   64.76
  112.43
   47.75
   98.14
  112.38
   78.49
f'lj  Engines were tested as received from the manufacturers.

[2]  All levels are undeteriorated.

                         •w_ ) f"fr~r* i.


                          M- 17

-------
lower the total HC emissions are, the lesser the percent contribu-
tion of the LAP segment to that  total.

     In summary, power enrichment occurs  at  the high power points
throughout  the  entire  transient test cycle,  but  the  majority of
this  high  power  operation is  found  in  the LA  Freeway segment.
Emissions performance  over  this segment  is  the major differenti-
ating factor  between  lower and 'higher  emitting engines.  Control
of power  enrichment  is the first and  most  effective  step  in  re-
ducing CO emissions with or without  a catalyst.  This will be dis-
cussed further below.

     5.    Transient Operation/All Speeds  and Loads

     As the  LAP emissions contribution  drops when going from  the
higher to lower emitting engines, the contribution from  other seg-
ments tend  to  increase until  no single  segment is dominant.  (The
obvious exception to this is cold start HC, which  is discussed  be-
low.)  Aside from certain physical factors,* these emissions arise
from  less  than accurate  fuel metering and  mixing  as  the engine
drives over the entire test cycle.   If the fuel flow does not pre-
cisely match  the  engine  inlet  air  flow  at  any  instant in time,
then  too  lean or too  rich  mixture  conditions  prevail,  along with
ensuing lean  misfire  (high HC)   or incomplete  combustion (high HC
and  CO).   This matching is complicated by  the inevitable need to
closely match the fuel and  air  flows at continually  varying speeds
and loads while also maintaining power and driveability.  All cur-
rent  technology engines were emission  optimized   at  idle,  and at
eight different steady-state power modes  at  2000 RPM.  This repre-
sented  a   reasonably  simple  design/calibration problem,  as  evi-
denced by  the  engines'  emission performance  over  the 9-mode test.
Once outside that limited  regime of emission-optimized modes, how-
ever, such  as  on  the  road or  on the transient  test, emissions  re-
main virtually  uncontrolled.  Little design attention with respect
to emissions has been  given to  the majority  of  the engines' opera-
ting ranges.

     Precise  matching  of  fuel and air  flows under  varying condi-
tions, including  transient  enrichment by  the accelerator pump  for
driveability,  is  a  major  emission-related problem of mixture  con-
trol.  Another is the  problem  of  achieving as homogeneous  (per-
fectly  mixed)  a  fuel/air (F/A) mixture  as  possible.   Incomplete
mixing  (including  liquid  fuel deposition on the  manifold or  com-
bustion chamber walls) produces  localized pockets  of rich and  lean
mixtures,  resulting in  an overall  increase  in  HC and CO  emis-
sions.  Complete  mixing  is also critical  to achieving uniform  A/F
ratios from cylinder  to cylinder,  again  to optimize overall  emis-
sion performance.
*    Combustion  chamber  design  affects  wall  quenching.   Inlet
manifold  design affects  mixture  distribution between  cylinders,
fuel   deposition   in   the   manifold,   and   heat   exchange  charac-
teristics.  All of these in turn affect HC and CO emissions.
                          I 7

-------
     The above, problems are not new, are well recognized, and have
already been addressed in the light-duty passenger car fleet.  Ex-
perience with  the light-duty  fleet has  indicated,  however, that
there exists a definite limit to  the  amount  of  HC and CO emission
reductions achieveable through  recalibration  before  power,   drive-
ability, and/or  fuel  economy become  unacceptable.   For  this rea-
son, catalysts become inevitable at lower emission standards, both
for  their  effectivenss  and the  flexibility  in  engine calibration
their effectiveness permits.

     6.    Cold Engine Operation

     Cold s.tart emissions are substantially higher than those of a
fully  warmed-up   engine,  and usually require  separate  attention
during control system design.   Again  referring  to Tables II-2 and
II-3, we note  that cold  start HC  contributions  are  high,  and be-
come dominant at  lower overall levels of HC emissions.  Cold start
CO on  the  other  hand  has a relatively minor  effect  on an overall
basis.  This phenomenon!  is  typical, though perhaps  exaggerated  by
the lack of design control in the  past, and is attributable  to the
fact  that  a  very  rich mixture  is  needed  for starting and  drive-
ability in a cold engine,  to  compensate  for dieposition of a large
part  of  the fuel  on  cold manifold walls.   This  rich mixture  is
provided  by  the  choke  mechanism,  either  manual  or automatic.
Emissions arise  both  from  this  overall rich mixture,  misfire, and
from  the  eventual evaporation  of  the  condensed fuel.  Emissions
have  not been  a  design constraint  in the  past  for  cold starting,
only  startability, driveability,  and power.   The  transient test
procedure itself  is demanding, requiring both emission control and
high power driveability early in the cold start  cycle.

C.   Available Control Techniques

     1.    Overview

     Widespread  introduction  of  new  non-catalyst technologies  is
assumed  to be an unrealistic  scenario  for  the  1984  model  year.
This  is a  function of the remaining  leadtime, and  cost  - the in-
tent  of this  rulemaking  is to ease the  capital  expenditure  burden
on  the.industry.   Technologies which  EPA expects  to  be implemented
for  1984  will  not be  new,  but  rather will represent  refinements,
^calibrations, and optimizations of current technologies.

     2.    Im)rovemerits to Fuel Metering

     By and  large, fuel metering  improvements will  be the  single
most  effective  strategy  for reducing  overall HC and  CO emissions
in  1984  engines,  especially when  optimized  for  the   transient
test.   These  improvements  include modifications  to  carburetors  to
achieve more precise  F/A ratio  control,  and  recalibration  to lean-
er  F/A ratios  on an overall basis, and  especially under  transient
conditions and WOT.
                            18

-------
     Figure II-l presents the CO emission distribution of the 1979
baseline engines.  Note  that  two mutually exclusive  sets  of car-
buretors are found  above and below  70 grams/BHP-hr,  representing
higher and lower emitting  engines.   Some  carburetors  (those below
70 g/BHP-hr) meter fuel more accurately under transient  conditions
even  though  also  optimized  for  the  9-mode.   Power enrichment,
sometimes observed at 4-6 percent CO (40,000  to 60,000  ppm in the
raw  exhaust)  contributes  substantially  to  these  CO levels,  as
shown above in Table 11-3.   At any rate, we infer from Figure II-l
that  since  two  groups of  carburetors produce  two  radically dif-
ferent emission  rates  on a  test  procedure for  which neither was
optimized,  the  higher  emitting  group  is  unrepresentative  of cur-
rent technology and  should  not  be  considered  a  realistic starting
point  when extrapolating  achieveable emission  reductions.   They
represent excessive power enrichment/inaccurate  fuel  metering pro-
ducing twice the CO  emissions of other engines  of equivalent power
and  displacement.   The  realistic  current technology CO baseline
is, therefore, presumed  to  be in  the range of 40-60  g/BHP-hr.  It
is from this range downward in which  development work will be con-
centrated.

     The prime result of recalibration will need to be leaner mix-
ture calibration, and leaner WOT and  transient  enrichment, thereby
reducing both HC and CO emissions.

     3.    Improved Mixture Distribution

     As overall calibrations get leaner,  it becomes more important
from a power., driveability,  and  emissions standpoint  that  the F/A
mixture be as homogeneously mixed as  possible and the mixture dis-
tribution  to  each cylinder  is  uniform.   Localized  rich  or lean
"pockets" in the mixture should be  eliminated  by  the time it en-
ters  the cylinder.   Assuring uniform  F/A mixture distribution to
each  cylinder  is also important.   Too lean  a   mixture  in  one or
more  cylinders  will force  recalibration to  a  richer  operating
point  to accommodate  the  needs in  that  cylinder, which  will in
turn cause too rich a mixture in other cylinders.

     This is essentially a  problem  of improving the  mixing of air
and  fuel in  the manifold prior  to cylinder induction.   The  liquid
fuel  must  be  vaporized  and  then mixed,  requiring heat  energy and
substantial  turbulence.   Deferring   the  problem  of   cold  starting
until  later, heat  energy arises from  the air itself  and from  the
warm manifold.  Improvements would come from  redesign of the mani-
fold  to  increase turbulent mixing,  and  to increase  heat  transfer
(perhaps by  heating intake  air  by  drawing  it  across the  exhaust
manifold) to the intake air or air/fuel mixture.

     4.    Other Physical Modifications

      Other physical  changes to  the  engine have  been  proven  to  re-
duce unburned fuel emissions, such as decreasing surface-to-volume
ratio  of the combustion  chamber  to minimize wall quenching,  reduc-
tions  in cylinder "dead" volume, etc.   Although these  may  be  per

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4 -i
                                                  Figure  II-l

                                      CO Distribution of  1979  Baseline Engines
          3-
Number of
 Engines
   ro
   o
          H
                       IHC
                      V-345
                     (Mo1ley
                       2bbl)
                        CM 366
                       (Holley
                         4 bbl)'
                       Ford 370
                       (Holley
                         4 bbl)
CM 292
(Roch.
 1 bbl)
GM 454
(Holley
 4 bbl)
GM 350
(Roch.
 2 bbl)
GM 454
(Roch.
 4 bbl)
                                     IHC 446
                                     (Carter
                                      4 bbl)
Ihrysler  360
  (Carter
  4  bbl)
                                                                                                            Ford 400
                                                                                                          (Motorcraft
                                                                                                             2 bbl)
                                   Chrysler 44(
                                     (Carter
                                      4 bbl)
CM 350
(Roch.
 4 bbl)
                      30-40
                        .40-50
50-60        60-70       70-80

        CO  (grams/BHP-hr)
                         80-90
                        90-100
               100-120

-------
formed on some engine  families, we  do not consider fleetwide phy-
sical redesign of  engine  combustion chambers for  all  families to
be realistic or necessary  for  1984.

     5.     Other Calibration Optimizations

     As  mixture  calibration optimization  reaches  its  limit with
respect   to  attainable  reductions,  other  calibrations  -  notably
spark timing - can be utilized to further reduce HC and  CO.   Iron-
ically,  these  reductions  are made  possible  by the other  1984 MY
emission  standard  for  heavy-duty  engines:   the  NOx  standard of
10.7  grams/BHP-hr.   NOx emissions  at this  level  are  relatively
uncontrolled, and will allow ignition timing calibration to  be set
near  MET* -  the most  efficient  calibrations.    The  higher NOx
standard  permits  both  lean mixtures and  optimum  timing advance -
both  of which  increase NOx but decrease  HC and  CO emissions and
fuel consumption.

     Furthermore, spark timing can  also  be optimized  for the  cold
start portion transient test procedure.  The light duty  fleet  cur-
rently uses electronically-controlled spark timing to  optimize ig-
nition under all engine operating conditions in  the  Federal  Test
Cycle  to  minimize  emissions  and   maximize  fuel economy.  The
methodology and  technology is entirely  applicable,  if  necessary,
to HDG engines on the transient test.

     6.     Improved Warm-up Characteristics

     As emission  levels decrease  with mixture and ignition  timing
optimizations,;  the  limiting factor  for  HC  reductions  is clearly
the  engine's  performance  on  the  cold start  portion  of the tran-
sient test.   As Table  II-2 above indicated, cold start HC emis-
sions are the dominant fraction of engine-out HC.

     Two  strategies  exist  for  reducing cold start emissions:  re-
strict  the  amount  of  cold mixture  enrichment,  and  increase the
warm-up  rate  of the  engine.   The former  is straightforward, and
limited by  the  amount  of  leaning a  cold  engine can withstand and
still maintain the  high driveability  and  performance both the road
and  the  transient  test  require.   This  is  done  by choke  recali-
bration.   Increasing the  warm-up  rate of  the engine  can   be ac-
complished  in  primarily two ways:   decrease the efficiency  of  the
overall combustion  cycle, and use exhaust  gas heat to  rapidly warm
the  intake  manifold  and/or intake air.   Cycle efficiency  reduc-
tions are best  achieved by changing spark timing  as a function  of
engine  temperature:   less efficient spark timing  calibrations re-
duce  engine  efficiency, and increase the amount of waste heat re-
jected  to the  combustion  products and thereby conducted to  the en-
gine  itself.  The result  is a  faster  warm-up; less time spent in a
cold  state  reduces  cold emissions.
 *     "MET"  denotes  the minimum timing retard  (i.e.  maximum timing
 advance)  at  which maximum  power  is  obtained without inducing knock
 reactions.
                               21

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     Cold start HC  emissions,  as elaborated  above,  are presently
uncontrolled, and generally dominate at  lower overall HC emission
levels.   .Table II-5 lists current technology engines, and the per-
cent increase  in  composite total  transient  test HC  and CO emis-
sions attributable to the cold start cycle.   (The cold start cycle
is identical in every  way to  the hot cycle,  with the sole excep-
tion of  engine temperature.)  From this we can infer  the amount of
emissions generated  by  the  "cold"* 'engine  temperature.   Figure
II-2 graphically portrays the percentage  attributable to cold en-
gine temperature versus  the total composite  test  result,  and il-
lustrates the general  trend of  increasing impact of cold HC emis-
sions with lower overall  HC emission  rates.   (Note that there are.
exceptions to the trend).  All of the 1979 baseline engines tested
by  EPA  were equipped  with automatic  chokes;  the  high  degree of
scatter  in the Table  II-5 data  indicates that varying choke cali-
brations are possible.  Since the varying engine  calibrations were
not  optimized  for  either a  transient  test  or  a  cold  start,  the
available data does not  lend  itself  to determining the  exact con-
tribution of the cold  start to overall  test  results  at any given
emission  level.   The  data  do indicate,  however,  that  it  can be
significant   (  probably 10-40 percent).   The real  question  is to
what degree  cold start HC emissions can be reduced  by choke recal-
ibration/improved  warm-up.   Experience  tells us that significant
reductions are achievable from uncontrolled  engines.

     7.     Summary of Possible Control  Technique's

     Based on the discussion  above  EPA has identified a number of
potential means of reducing HC  and  CO emissions  from HDG engines.
These are summarized below.

     a.     Carburetion  - modifications  and  improvements   to  the
power enrichment,  accelerator pump, and general  fuel  metering sys-
tems.

     b.     Calibrations  - spark timing,  A/F ratio,  and EGR flow
rate calibrations.

     c.     Manifold/Combustion Chamber Redesign  -  intake manifolds
could be  redesigned  to improve the homogeneity  of the  F/A ratio.
Combustion chamber surface-to-volume ratio  could be  decreased and
cylinder  dead  volume  minimized  to  lessen  fuel   quenching  on
cylinder walls.

     d.     Air Inj ec t ion  System  - Increased  air injection to the
exhaust   manifolds  will  increase  the  HC  and CO oxidation.   This
system  could  be  further  improved by an  air -modulation  system and
possible  recalibrations  of  the  pressure   relief   and diverter
valves.    Some exhaust  manifold  modifications   may   also  aid. the
efficiency of the air injection system.


*    "Cold," for laboratory test procedure purposes,  is  a  tempera-
ture between 68° and 8fa°F.
                               Z2L

-------
                         Table  II-5
   Cold Start Contribution to Conposite Emission Results
                   HC
CO

Engine
Ford 400
Chrysler
Ford 370
1HC 446
GM 350
Chrysler
GM 350
IHC 345
GM 454
GM 366
GM 292
GM 454



Composite
HS
4.26
440 3.70
3.10
3.06
1.71
360 2.46
2.36
1.98
1.14 •
1.55
1.38
2.04
HC Averages:


Composite
Total Test
4.80(H)
3.81(H)
3.31(H)
3.32(M)
2.57(M)
2.45(M)
2.66(M)
2.35(M)
1.29(L)
2.22(L)
2.12(L)
2.46(M)
High (H):
Med. (M):
Low (L):
% Due
To CS
11.3%
2.9%
6.3%
7.8%
33.5%
neg.
11.3%
15.7%
11.6%
30.2%
34.9%
17.1%
6.3%
14.2%
25.6%
Composite
HS
110.4
112.5
43.5
90.5
66.0
90.0
97.2
31.3
79.8
40.4
51.2
54.8
Composite
Total Test
113.2
115.6
45.0
92.9
67.8
92.0
101.5
32.8
81.9
41.9
55.0 .
55.9
% Due
To CS
2.5%
2.7%
3.3%
2.6%
2.7%
2.2%
4.2%
4.6%
2.6%
3.6%
6.9%
2.0%
Grams/BHP-hr,  results of individual tests,  unweighted.

-------
                                         Figure  11-2

                           •Cold  Start  Contribution  to  Total  Test
                     HC Emissions as  a  Function  of Total  Test Emissions
                                                     H  :   Average,  All higher  emitting engines.
                                                     M  :   Average,  All moderate .emitting engines.
                                                     L  :   Average,  All lower emitting engines;
            40-


            35 .



            30-

% Due.to
Cold Start  25 -


            20-


            15 -


            10-


             5 -
                         ©
                    5.0
4.0         3.0         2.0         1.0

       Total Test HC (grams/BHP-hr)
0.0

-------
     e.    Automatic  Choke  -  the  use  of  a  properly  calibrated
automatic choke would decrease  cold start  HC and CO emissions and
improve warm-up time.

     f.    Early Fuel Evaporation (EFE) - this system  involves the
use  of exhaust gases  to warm  the  air-fuel  mixture  by  directing
some of  the  exhaust  gases through a passage  below  the  carburetor.
A warmer  A/F mixture improves  the  fuel distribution  to the cyl-
inders and  results in  lower  emission levels  and  shorter warm-up
periods.

     g.    Heated  Air Intake  -  heated  air intake  or  a  modulated
air  cleaner  system uses exhaust gases  to  warm  the  intake  air  to
the  carburetor.    This  improves engine  warm-up  time  and reduces
emissions by allowing leaner carburetor calibrations.

     h.    Exhaust Gas  Recirculation _(EGR^  - EGR  primarily used
for  NOx  control,  can also  be  beneficial with regards  to HC con-
trol.  Besides its overall  leaning  effect  on the mixture, it also
permits recombustion of  a percentage  of  the exhaust  gases.  Sim-
ilarily,   increased valve  overlap   works  as  a  form  of  "internal
EGR."

     The effectiveness  of modifications  and  hardware of  this type
has  been demonstrated  in  the  light-duty  vehicle  and  light-duty
truck  fleets  for   several years.  These control strategies  should
be available  for  the  1984 model year  HDG  engines  and  should pro-
vide substantial HC and  CO reductions over  current  levels.

     8.    Tradeoffs

     The  emission  control  strategies  discussed  above  have  trade-
offs with respect  to fuel economy,  power,  and driveability.   Lean-
er mixtures,  less  power  enrichment, and  quicker  engine warm-up all
improve  fuel  economy,  but when  carried  to excessive  degree  could
impair power  and driveability.   An  increase  in air  injection  would
also cause a  small fuel economy loss.   EPA  now believes that the
fuel economy  impacts  of  these  regulations will  be basically neu-
tral.  The limits  to emission  reduction will  be  determined equally
by  power requirements and  driveability  needs in  addition  to any
fuel economy concerns.

D.   Attainable Reductions/Proposed  Emission Standards

     As  described  above, several relatively simple and  effective
means  of  emission control  are available.   At  this time, EPA has
limited data  as to the  absolute effectiveness of a  given technique
on heavy-duty gasoline  engines.   For example, no testing has  been
performed  to  date on a  current engine where mixtures  were  leaned
out, spark  timing  curves optimized, power enrichment  limited, and
fast warm-ups or   fast  opening  chokes  were initiated.    It is  dif-
ficult  to quantitatively  predict  attainable emission  reductions
without results of such  testing.

-------
     One approach to deriving achievable standards would be to use
an engineering 'estimate of the efficiencies of the previously des-
cribed  reduction techniques.  -These  efficiency  estimates  could
then be  applied  to  the current  baseline  emissions data to calcu-
late what  emission  levels  could be  reached.    Lacking  any other
substantive data  or  technique at 'this  time  this methodology will
be used.

     The emission reduction efficiencies used in this analysis are
those  expected  from  the  lower  emitting  engines  in  the current
technology baseline  (see  Tables  II-2 and  II-3)  so the average  HC
and CO emission  rates  from  the  low emitting engines will serve  as •
the  baseline  levels.   One  might  question the  use of  the lower
emission levels  as  not being representative of  the average emis-
sion levels.   However  for the higher  emitting  engines  the effic-
iency  estimates  would  in turn  be substantially  larger.   We have
chosen to  use  the lower emitting engines because  they already re-
flect  what  could easily  be  achieved on  other   current  technology
engines with even minor calibration changes.

     Tables  II-2 and  II-3  clearly  indicate  that  the  HC  and  CO
emission levels  in  certain modes  are  so  large  that they  require
specific attention  in this analysis.   HC emissions could  be di-
vided  into  "cold/warm  start"  and  "other."  CO  emissions could  be
divided into "LAP" and  "other."  Table  II-6 lists  the emission, re-
duction  techniques  together  with the modes in  which they will  be
effective  in.  gaining emission reductions.   This  information will
serve as a background for the discussion which  follows.

     1.    Hydrpearbons [3]

     As  shown  in Table II-2 cold/warm start emissions account for
49  percent of  the  HC  emissions.   Thus,  the  remaining  51  percent
comes  from the  "other"  six  portions  of the test.  In terms of the
average of the  low emitting engines  from  Table  Il-fi  the  "cold/warm
start" portions  account for 0.92 g/BHP-hr  and the/"other"  portions
account for 0.96 g/BHP-hr.                        ;

     With  the  emission control strategies  shown in Table II-6  we
believe  that  substantial reductions  in  HC  emission  levels are
easily achievable.   Our current  belief  is  that  reductions  of  50-60
percent are possible in  the  "cold/warm start" portions  of  the  test
through  the means shown  in  Table II-6.   For all practical purposes
"start"  emissions are  uncontrolled on the current  test  procedure.
EPA also believes that  reductions  of  30-40 percent are  also avail-
able  on the other  portions  of  the  test procedure.  Assuming  the
ranges  of  engineering  estimates of  reduction   efficiencies . given
above, achievable emission levels can be calculated.

     a.    Cold/Warm Start Reductions

     High  Estimate:   (0.92 g/BHP-hr)(60%) = 0.55 g/BHP-hr

-------
                             Table II-6

            Test Port^ons/Emij^ion Reduc^^on Technologies


                                     KG                  CO
                    Cold/Warm Start[1]   Other[2]   LAF[3]    Other[4]

Carburetion                X                XXX

Calibrations               X                XXX

Manifold/Combustion        X                XXX
  Chamber

Air Injection                              X  '        X         X

Automatic Choke            X                                     X

EFE                        X                                     X

Heated Air Intake          X                                     X

EGR                                        X
      Sample Bags 1 & 5

12]   Sample Bags 2, 3, 4,  6,  7,  8

[3j   Sample Bags 3 & Xt 7

[4]   Sample Bags 1, 2, 4,  5,  6,  8
                         27

-------
     Low Estimate:    (0.92  g/BHP-hr)(50%) =  0.46 g/BHP-hr

     New.Range:       0.37  - 0.46  g/BHP-hr

     b.    Reductions in Other  Portions

     High Estimate:   (0.96  g/BhP-hr)(40%) =  0.38 g/BHP-hr

     Low Estimate:    (0.96  g/BHP-hr)(30%) =  0.29 g/BHP-hr

     New Range:       0.58  - 0.67  g/BHP-hr

     c.    Achievable Emission  Levels

     Using "High Estimate":  1.88 -  0.55 - 0.38 =  0.95  g/BHP-hr

     Using "Low Estimate":    1.88 -  0.46 - 0.29 =  1.13  g/BHP-hr

Emission levels in the 0.95 -  1.13 g/BHP-hr range would support  an
HC emission standard of 1.3 g/BHP-hr.

     Using a full life multiplicative  deterioration factor of  1.2
and an HC variability  of 10 percent, the expected target HC levels
are 1.1 g/BHP-hr for 1984  (no  SEA)  and 1.0 g/BHP-hr when SEA  be-
gins in 1986.  The range of achievable emission levels  shown  above
supports the feasibility of  these targets  and thus  the 1.3 g/BHP-
hr standard.

     2.    Carbon Monoxide

     As  shown  in Table II-3  the "LAF" (LA Freeway) CO  emissions
account for  43.2 percent  of  the total.  Thus  the  remaining 56.8
percent arises from  the "other"  portions  of the  test.  When  these
percentages  are  applied to  the  average  low CO  engines  of  Table
11-3,  the  "LAF"  accounts   for  19.9  g/BHP-hr and   the other  portion
accounts for 26.2 g/BHP-hr.

     With the emission control strategies shown in  Table  II-6 sub-
stantial reductions  in CO emission  levels  are easily  achievable.
Reductions  of  40-50 percent are  possible in the "LAF" portion of
the  test  through the means in  Table II-6.   Emissions under  the
high-speed,  high-power  operation  characteristic of  the  LAF  portion
are  relatively  uncontrolled  because of the limited power  demands
of the 9-mode  test  procedure.   Reductions of  30-40  percent  are  al-
so  possible from  the "other"  portions  of  the  test  procedure.
Given  the engineering  estimates of  reduction efficiencies  shown
above, achievable emission levels can be calculated.

     a.    LAF Reductions

     High Estimate:   (19.9 g/BHP-hr)(50%) = 10 g/BHP-hr
                           28

-------
     Low Estimate:    (19.9  g/BHP-hr) (40%)  =  8  g/BHP-hr

     New Range:       9.9  -  11.9  g/BHP-hr

     b.     Reeducations in  Other^ Porti-ons^

     High Estimate:   (26.2  g/BHP-hr)(40%)  =  10.5  g/BHP-hr

     Low Estimate:    (26.2  g/BHP-hr)(30%)  =  7.9 g/BHP-hr

     New Range:       15.7 - 18.3 g/BHP-hr

     c .     Achievable Emission Levels

     Using "High Estimate":  46.1 -  10 -  10.5  = 25.6  g/BHP-hr

     Using "Low Estimate":    46.1 -  8 - 7.9  =  30.2  g/BHP-hr

Emission levels in the 25.6  - 30.2  g/BHP-hr range would  support  a
CO emission standard of about 35 g/BHP-hr.  Using  a  full  life mul-
tiplicative deterioration factor of 1.1 and a CO variability of  20
percent, the expected  target  CO levels are 31.8 g/BHP-hr for 1984
(no SEA) and 25.5 g/BHP-hr when SEA  begins  in 1986.   The range  of
achievable emission levels shown above supports  the  feasibility  of
these targets and thus the 35 g/BHP-hr standard proposed  here.

     Considering  all  of   the   factors  bearing  on  this analysis
(cost,  fuel  economy,  leadtime,   power, and  driveability), EPA  be-
lieves  that  the  standards  herein discussed  are achievable for  all
HDG engines  for  the  1984 model  year.  However  if  during the com-
ment period further data and  information  would prove the  standards
to be infeasible the  option  for further relaxation for final  rule-
making exists..

E.   Idle Emission Standard

     For heavy-duty gasoline  engines,  the 1984 idle  CO standard  is
0.47  percent  (raw exhaust composition).   Table  II-7 presents  the
current technology idle  CO baseline.   Note  that  five of  twelve  en-
gines already comply.  Given the fact that substantial  leaning  of
mixtures will be  performed to meet the transient  standards,  there
is no reason to believe  the  idle circuits of  the remaining  engines
cannot  be  improved.   EPA judges compliance with the idle standard
to  be  relatively  straightforward and will  pose  no  problems  to
manufacturers  even  considering  any  small  deterioration  factor
which may need to be included.

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                              Table  II-7

             Idle CO Current Technology Baseline _EmiLssions

                                                         Complies with
Engine                   Idle  CO (•%)                     1984 standard?

IHC 446                     .299                             yes
1HC 345                     .402                             yes
GM 366                      .913                             no
GH 350                     1.158                             no
Ford 400   .                1.853                             no
Ford 370                    .515   .                          no
Chrysler 360                .226                             yes
Chysler 440                1.279                             no
GM 454                      .596                             no
GM 292                      .308                             yes
GM 454     .                 .888                             no
GM 350                      .242                        '     yes

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                            Ref^ejre rices

     1.    Cox,  Timothy  P.,  "Heavy-Duty  Gasoline Engine  Emission
Sensitivity to Variations in the 1984 Federal  Test Cycle,"  SAE  No.
801370.

     2.    Auiler, J., et. al., "Optimization  of  Automotive  Engine
Calibration  for  Better  Fuel   Economy-Methods  and Applications,"
SAE Paper No. 770076.

     3.    Here we are  addressing  total hydrocarbon  emissions  and
a total hydrocarbon  emission  standard.   EPA intends   to  propose  an
optional  non-methane hydrocarbon  standard  for  HDEs  in  a  future
rulemaking.

     4.    The terms  "High  Estimate" and  "Low Estimate"  refer  to
the  range of reduction  efficiencies.   The  percent   figures  shown
are the actual efficiencies.
                          31

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                           CHAPTER III

                       ENVIRONMENTAL  IMPACT

A.   I n t r o d u c t i o n

     The  ly84  light-duty  truck (LOT) and  heavy-duty engine  (HDE)
final  rulemakings  (FRM) as  promulgated were  expected  to  provide
significant  lifetime  per  vehicle emission  reductions  and  improve
overall air quality.  This analysis will examine the impact of  the
proposed revisions and relaxations of the 1984 FRMs, with  the goal
of  determining  the loss in  lifetime emission  reductions  and  air
quality improvement which could occur if they are adopted.

     The  base case  for our  emission  reduction and  air  quality
analysis is the  1984  final  regulations.   In the base case  we will
determine the per  vehicle  emission  rates and air quality  improve-
ments which would  be  expected.  In the  comparison case we  will  in-
corporate  the  proposed  revisions  and  relaxations  to   determine
their  impact  on both  the  per vehicle  emission  rates and  overall
air quality.

     It  should   be  noted  that  this   analysis  will  not  include  a
major  review  of  the  health and welfare  aspects  of  HC (ozone)  and
CO, nor will  it  include a  major  discussion of the national HC  and
CO emission inventories.  These reviews  can  be found in  other doc-
uments, and are beyond the needs of  this analysis.[1][2]

B.   Changes in the Per Vehicle Emission Rates

     1.    Introduction

     Perhaps  the figure which best  expresses the potential  envi-
ronmental impact of  a proposed regulatory action is the  change in
the per vehicle  emission rate  and lifetime  emissions which the  ac-
tion would  bring about.   In this section  of the analysis  we will
examine the changes  in  the .per vehicle  emission  rates  to determine
the loss  in HC  and CO reductions  which would occur under  the pro-
posed  revisions and relaxations.

     Before  beginning this analysis  a  few  additional  explanatory
remarks  are necessary.  Lifetime  per  vehicle  emission rates  are
determined  using  calculated   target  emission  levels.   In  turn,
these  target emission  levels are  calculated using  the  expected
deterioration factor  and  production  line variability.   The deter-
ioration  factors  and  variabilities  used   are   the   anticipated
industry-wide  averages.   For  any  one  manufacturer  the  deter-
ioration  factor  and/or  the variability  could be  significantly dif-
ferent, such  that  the target  emission levels and per vehicle  emis-
sion  rates  could  also  differ.  Our  analysis  is intended  only to
reflect the  expected  average  deterioration  factors  and variability
and  thus  cannot be assumed to implicitly  apply  to a  given engine
family.[6]

-------
     Secondly, .as  was  discussed previously,  this  action  proposes
several  relaxations  to the LDT  and HDE  SEA  programs.   These  in-
clude implementation of a  40  percent  AQL for  ,LDTs and HDEs  begin-
ning in 1984..  Also, the HDE SEA program will : be delayed from  1984
to 1986.

     As  part  of  this action,  EPA  is  announcing a 2-year  deferral
period  (the 1984 and 1985  model  years-)  for  HDE  SEA.   Since  no  SEA
program  will  be  in place  until  1986,  manufacturers  certifying  in
1984 and 1985 will have to account  only  for the deterioration  fac-
tor in  computing their target emission levels.  However, we  expect
that the manufacturers  will  begin  planning for  the  impact  of  SEA
before  1986,  specifically during  1984  model  year  certification,
and thus will  design the  engine and emission control systems  with
the 1986 SEA requirements (40  percent  AQL) in  mind.

     Therefore, we  expect that  to  some degree the  1984 and  1985
model year HDE emission  rates will reflect the  impact  of the  SEA
requirements.  In  our  previous analyses  we  anticipated  the manu-
facturers'  reactions to SEA would  include self-audit testing,  in-
creased  quality control,  and  in some  cases additional engine  mod-
ifications and hardware.  Although  we do  not  expect  the  self-audit
testing  and  increased  quality  control to  begin  until  necessary,
the  additional  modifications  and  hardware  will  probably  be  used
when possible  beginning  in 1984.   Therefore, we  expect  that  1984
and  1985 model  year HDEs  will have  per vehicle  emission rates
slightly lower than  if  they accounted only for deterioration,  but
greater  than  in  1986 when the  SEA  requirements  must be met.   Our
air quality  analyses  of the  emission  rates  of  1984-85  heavy-duty
vehicles will  not  inherently  include this impact,  so the per  ve-
hicle emission rate increases  shown for  1984  and 1985 HDEs  may be
slightly higher than that which will actually  occur.

     2.    Hydrocarbons

     The proposed relaxation to  the SEA  provisions will  affect  the
HC emission rates of both LDTs and HDEs.  For LDTs  the  relaxation
of the AQL is; the only factor to be considered, but  for  HDE's  both
the relaxation of the AQL and the deferral of SEA will have  an im-
pact.

     a.    Light-Duty Trucks

     As  described  in the  regulatory  analysis supporting  the  1984
FRM, the 10 percent AQL  caused the  HC  target  emission  level  to
drop from 0.53 g/mile  to  0.49 g/mile.  Relaxation of the  AQL  back
to the  40 percent  level  would increase the target to 0.53 g/mile.
Over the LDT  lifetime  this means an  increase of about  0.006  tons
(12 pounds) in additional HC emissions.[3]

     b.    HDG Engines

-------
     Both the deferral  of  the HDE SEA  program  and the relaxation
of the AQL would affect HDG engine emission rates.  In 1984-85 the
engines will not be  subject  to  any SEA, so the  only  factor manu-
facturers  would  have  to   account  for is   the   expected  deter-
ioration.  In the  1986-88  period manufacturers would  have  to ac-
count for both deterioration and SEA  at  a 40 percent AQL.

     The changes from  catalyst  to non-catalyst control technology
and  the  resultant  decrease in the deterioration  factor  will also
cause an  increase  in the  total  lifetime HC  emissions.  This will
begin in 1984 and continue  through the period.•

     (1)   1984-1985 Model  Years

     In  the  1984  and 1985  model  years  manufacturers  will have to
deal  only  with  deterioration.   Based  on  a  non-catalyst control
strategy, a  full  life multiplicative deterioration factor  of 1.2
is  consistent  with  past analyses.[4]   This  would give  a  target
emission level of about 1.1 g/BHP-hr.

     Assuming a brake  specific  fuel  consumption  of 0.7 and a fuel
economy of 5 miles/gallon  these  emission levels are 1.9 g/mile for
the  target level and yield a deterioration factor of  .031 g/mile/
10,000 miles.

     (2)   1986 and Later Model  Years

     The  only  change in the  1986 and  later  model years is that
manufacturers will have to  deal  with SEA at a 40 percent  AQL.  The
impact  of  this  is  to  slightly  lower   the target  emission level.
Using an  HC  variability of  10  percent, the  new  target  level be-
comes  0.97   g/BHP-hr.   In   terms  of  g/mile   this  figure  is  1.69
g/mile.[4]

     We  do  not  expect  the  implementation of the  SEA program in
1986 will cause  any  new hardware or engine modifications.  There-
fore,  the  deterioration rate should  be the  same  as  that  of the
1984-85 model years.

     Table III-A compares  the  emission rates of  the 1984-85 and
1986 and  later  model year  HDG engines  (non-catalyst)  to  the  emis-
sion rates expected  from the original 1984 final  rulemaking.  The
per  vehicle  lifetime increases   in the  1984  and  1985 model  years
shown  are  probably  larger  than will occur  because some manufac-
turers will  opt  to  comply  with  the  R&D/hardware  needs of SEA and
the  40  percent  AQL  beginning in 1984,  to  avoid replicate  efforts
in 1986.

     c.    Heavy-Duty Diesel Engines

     (1)   1984-1985 Model  Years

-------
     In the 1984-85 model years no  SEA program will be in effect,
so the manufacturers would  have  to  account for only deterioration
over  the.  lifetime.   Based  on past  analysis  this  factor  is 1.05
(multiplicative) for a  target level  of  about 1.24  g/BHP-hr.[4]

     Assuming a brake specific fuel consumption of 0.43 and  a fuel
economy of  5.8  miles/gallon these figures become  3.53  g/mile for
the target  level  and .007  g/mile/10,000 miles  for the deteriora-
tion factor.[4]

     (2 )   1986 and La ter Model Years

     In the 1986 and  later model  years,  the  manufacturers will
have  to deal with  SEA  at  a  40 percent AQL  as  well  as lifetime
deterioration.  The major impact  of  the SEA program is to slight-
ly lower  the  target emission  levels,  but  since no major hardware
related changes are  expected,  the deterioration factor should re-
main  unchanged.   Using  an  HC variability of  16  percent  the new
target  emission  level   for  HC  is   1.05   g/BHP-hr  or  about 3.00
g/mile.[4j  The deterioration rate will remain  unchanged.

     The  data  shown  in  Table III-B  compares  .the  lifetime emission
rates for  the  three  cases being considered in the  heavy-duty die-
sel engine analysis.  As before with the HDG engines, EPA does not
expect  that the  actual increase in  the  per  engine  HC lifetime
emissions will be as large  as  shown  for the 1984-85 model year HDD
engines.  We expect  that most  manufacturers  will design their en-
gines for  1984  certification to be  consistent with the demands  of
the 1986 and later model year SEA program.

     d.    Summary and Discussion

     Especially for LDTs and HDG  engines,  the long term increases
in lifetime  HC emissions as a result  of  the  proposed action are
not large.   The  HDD engine HC  emission rates  are higher than the
others because of the higher variability,  lower  deterioration fac-
tor,  and  longer  average lifetime.  Clearly,  the  expected increase
in  HC emissions  from  these vehicles  will result  in  less  of  an
ozone  air quality improvement  than  was expected  in  the original
1984  final  rulemakings.   However, it  is our  inital judgment that
the expected  losses are not adequate  to  warrant a complete ozone
air quality impact analysis  for this proposal.   Depending upon ad-
ditional  information uncovered in the  formal public comment  period
the ozone air  quality  analysis may  be  included in  the  final rule-
making analysis.

     3.    Carbon Monoxide

     All  aspects of the proposed relaxations  and revisions will
affect the  CO  emission  rates from LDTs and HDG  engines.  The  pro-
posed  relaxations to the  AQL will  effect both  LDTs  and  HDG  en-

-------
                                   Table III-B

                          HDD Jfogin_e H(^ Emi s sion Ra^tes

                                                              Lifetime
                 Low Mileage[1]      Deterioration Factor[2 ]    Emissions   Increase
                g/BHP-hr  g/mile  g/BHP-hr  g/mile/10,000 mi    Tons[3]      Tons

1984 FRM          0.89     2.53      1.05          .007          1.368
(SEA at 10% AQL)

1984-83           1.24     3.53      1.05          .007          1.891       .523
(No SEA)

1986+             1.05   .  3.00      1.05          .007          1.614       .246
(SEA at 40% AQL)
[Ij  Target level.

[2j  Multiplicative; 250,000 miles to rebuild.

[3J  475,000 miles.

-------
gines.  The two year deferral of  the  HDE  SEA program and the pro-
posal  to  relax  the  HDE  CO emission  standard emission  rates   to
non-catalyst levels will also effect  HDG engines.

     As is generally known, CO emission levels from diesel engines
are well  below  even the statutory HDE  emission  standards,  so the
proposed relaxations and revisions will have no impact.   Therefore
no further analysis of  HDD CO emissions will  be included.

     a.    Light-Duty Trucks

     The major  impact  on the LDT  CO emission rates  is  caused  by
the  relaxation  of the  AQL.  As  was described in  the regulatory
analysis supporting the  1984 LDT  final  rulemaking the expected  CO
target level would rise  from 5.5  g/mile to  6.4 g/mile if the AQL
were  relaxed  from 10  percent  to  40 percent.  Assuming  the same
basic  control  technology with  either AQL,  the   per  LDT increase
amounts to 0.2 tons of  CO.[3]

     b.    HDG _Eng_ine_s_

     HDG engines  are affected by  all three of the proposed  relax-
ations and  revisions.  HDG  engine emission rates  will be affected
by the proposed revision to the CO emission  standard  and  the  smal-
ler  deterioration  factor  associated with   non-catalyst control
technology.  In addition,  the deferral  of the HDE SEA program and
the  relaxation of  the  AQL will also  cause  increased  emission
rates.  These will be addressed  below for  the appropriate  years.

     (1)   1984-1985 Model Years

     With no  SEA program in effect  for  these years,  the manufac-
turers  will only  have  to  deal  with the emission  standards and
deterioration.   HDG  CO  lifetime  emission rate increases will  be
large  because  the proposed standard  is more than twice  the  stat-
utory  level and the  non-catalyst  deterioration factor is substan-
tially less than the catalyst based factor.

     Based  on  data  gathered for the 1984  FRM  analysis, the  target
level  for  a 35 g/BHP-hr  CO standard is  31.8 g/BHP-hr.   .This as-
sumes  a multiplicative  full life  deterioration factor of 1.1.[4]
In  g/mile  these figures are 55.42  for the  target  level and  .418
g/mile/10,000 miles for the deterioration factor.

     (2)   1986 and Later Model  Years

     In 1986,  manufacturers will  also have to consider the  impact
of  SEA at a 40  percent AQL.  Since we would  expect  no fundamental
hardware  changes, the  deterioration factor  would  change  little.
Therefore,  the major  impact  would  be   a  lower  target emission
level.  Using a CO variability of  20 percent,  the new target emis-
sion level  is 25.1 g/BHP-hr or  about 43.81 g/mile.

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     Table 1II-C  compares  the emission  rates  of the  1984-85 and
     and later model  year  HDG engines  (non-catalyst)  to the  rates
expected  from  the  original  1984  final  rulemaking  (catalyst-
based).   As before with HC, the per vehicle lifetime emission rate
increase shown for 1984-85 are likely  larger  than will occur.  We
expect  that  in  as much as is possible manufacturers  will produce
their engines  to comply with the  SEA  requirements  beginning  in
1984, so that the 1986-88  emission  rate  could  be a more represen-
tative rate.

     c.     Summary and Discussion

     Even  though the  proposed relaxations  and  revisions  affect
only 2  of  the 3  vehicle/engine groups,  the  absolute  magnitude of
the  increases  in lifetime   CO  emission  rates  is   substantially
larger for CO than for HC.   This is especially  true for HDG engine
CO.  Therefore, we have included  a  formal CO air quality analysis
to measure  the  loss  in  the  air  quality improvements which  could
occur if the proposed relaxations  and revisions  are implemented.

C.   Ambient Air Quality Impact:   Carbon  Monoxide

     1.     Introduction

     This  section will  address   the   CO air  quality  improvement
losses which could occur if the proposed  relaxations and revisions
are adopted.  The basic approach used  here will be similar to that
used  for  the emission  rates, in  that  the focus will be  on the
losses in air quality improvements and not on absolute  air quality
levels.

     A  CO air quality  analysis was conducted  using  the Modified
Rollback  method.   Separate analyses were conducted  for  both low
and  high  altitude regions.   The  low altitude analysis  covered 102
counties and  the high altitude analysis covered 17  counties.[2]
In preparing  the air quality projections, baseline emission  rates
for  various  ssource  categories were taken from  the National  Emis-
sions Data System (NEDS) and projections for future  control  stra-
tegies  plus  growth  ratios were  made.   In  combination  with the
mobile  source  projections,  the data allowed an evaluation of  the
air  quality losses to be expected.

     2.     Scenarios Analyzed                 ;

     In total  six scenarios  have  been analyzed,  four  low  altitude
and  two high altitude.[2]   As shown in  Table III-D,  scenarios  1-4
are  low altitude, 5  and 6 are high altitude.   All  scenarios  in-
clude I/M for all LDVs and LDTs beginning in 1982.

     Scenario 1  is  the base  case and  represents the 1984 LOT  and
HDE  final rulemakings  as  promulgated.   Scenario 2  is the  prime
comparison  case, as  it incorporates  the proposed relaxations  in
the  SEA programs and  the revisions of the HDE CO emission standard.

-------
                                   Table III-C

                          HDG Engine. C0 Emi_s_s^ion Rates

                                                              Lifetime
                 Low Mileage[1]      Deterioration Factor[2]    Emissions^  Increase
                g/BhP-hr  g/mile  g/BHP-hr  g/mile/10,000 mi   Tons[3]     Tons

1984 FRM           5.9     10.30     1.7          0.63           1.74
(catalyst)[4]

1984-8515]        31.8     55.42     1.1          0.418          7.26      5.52
(non-catalyst)

1986+ [6]         25.1     43.81     1.1          0.418          5.80      4.06
(non-catalyst)
[1]  Target level,

[2]  Full life - multiplicative,

[3j  114,000 miles;.

[4]  SEA at a 10% AQL.

[5j  No SEA.

[6j  SEA at a 40% AQL.

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Scenario




    1




    2




    3




    4




    5




    6
                                 Table  II1-D




                    Air Quality Analysis Scenarios[1][2]
                   LDV
                               LDT
                                                   HDGE
CO Std/Life/S£A(AQL)   C6~Std/LiTe/SEA(AQL)   CO Std/Life/SEA(AQL)




   3.A/ 1/2/40%           -10/ 1  /10%         15.5/  1   /10%




                           10/ 1  /40%




                           10/ 1  /10%




                           10/ 1  /40%




                           14/ 1  /10%




                           14/ 1  /40%
  3.4/  1/2/40%




  7.0/  1/2/40%




  7.0/  1/2/40%




prop./  1/2/40%




prop./  1/2/40%
35/1  /none:  40%




15.5/ 1  /10%




35  /I  /none:  40%




15.5/ 1  /10%




35/1  /none:  40%
[1]  All scenarios include I/M for all LDVs and LDTs.




[2j  For more detail on each scenario referenced.

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     Scenarios.3 and 4 are  identical  to  1  and 2 respectively, ex-
cept that  both> 3 and  4  set the  LDV  CO emission  standard  at 7.0
g/raile instead of 3.4.  This was  done to gauge the sensitivity of
the air quality impact of the proposed changes to  possible changes
in the level of  the LDV CO emission  standard.

     Scenarios 5 and  6  apply  to high altitude regions, and accom-
plish the  same  fundamental  analysis  at  high altitude as scenarios
1 and 2 at low  altitude.   The LDV  and  LOT emission rates reflect
proportional CO standards  at high  altitude.

     3.     Results and Discussion              ;

     a.     Average Percent Change  in CO Air Quality

     Table I1I-E presents the air quality improvement data for the
102  low  altitude and  17  high  altitude counties  analyzed.   Even
though the  scenario by  scenario results alone present some inter-
esting and useful information, the real impact of  the proposed re-
visions and relaxations is  found  by comparing the results for the
different scenarios.

     All three comparisons (scenario 1 vs.  2, 3 vs. 4 and 5 vs. 6)
show the same general trends.   The  proposed  relaxations and revis-
ions would cause a 1-3  percent  loss  in the  overall  air quality
improvements  which  would  occur with the  base case.  All  of the
scenarios  also  show hints of  air  quality degradation beginning by
the year 2000.  So at  either  low  or high altitude, the average CO
air  quality improvement is  1-3  percent less than  would occur with
the base case.

     b.     Counties Above the Ambient Air CO Standard

     Table  III-F shows the  data relative to  the number of  counties
projected  to  be  above the standard.  In this  case,  the impact of
the proposed changes is small.  For both the low and high  altitude
counties, all are in  compliance by  1995.  At  low altitude  the pro-
posed relaxations and  revisions do  seem to  cause  a delay in sev-
eral counties achieving  the CO ambient  air quality standard.  At
high altitude there is no apparent impact.

     c.    Tot:ajl^ Number of Exceedance s^

     The exceedances  data in  Table  I1I-G basically shows  the same
impact  as  the  violations  data  of  the  previous  table.    Simply
stated, the proposed  relaxations  and revisions will  allow  several
more  exceedances  per  year  at  low  altitude  during  the  1985-1990
time period.  At high altitude there is only  a   small impact  for
the  years  studied.   After  1995,  no  exceedances  were computed at
low  or high altitude.

     4.    Conclusions

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              Table  III-E

Average Percent.Change  in CO Air
Low Altitude
Scenario
1
2
3
4
5
6
1985
-58
-58
0%
-58
-57 .
1%
-59
-58
1%
1988
-70
-68
2%
-68
-67
1%
High
-72
-70
2%
1990
-73
-71
2%
-72
-70
2%
Altitude
-77
-75
2%
1995
-77
-75
'. -74
-72
; 2%
-81
-79
2%
• 200°
-77
-74
3%
-74
-72
2%
-82
-80
2%
                                                3% improvement
                                                   foregone

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          Table III-F




Counties Exceeding the CO NAAQS
Low Altitude
Scenario
1
2


3
4


5
6

1985
6
6
0

6
6
0

2
2
0
1988
1
2
1

1
2
1
High
0
0
0
1990
0
0
0

0
1
1
Altitude
0
0
0
1995
0
0
0

0
0
0

0
o
cf
2000
0
0
0 violating
counties
0
0
0

0
o
0"

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        Table III-G




Total Number of  Exceedances
Low Altitude
Scenario
1
2

3
4


5
6

1985
25
31
6
28
32 .
4

' 4
5
1
1988
1
2
I
2
4
2
High
0
0
0
1990
0
0
0
0
1
I
Altitude
o.
0
0
1995
0
0
0
0
0
0

0
0
o"
2000
0
o
cf ,
(
0
0
0

0
0
0
                                            exceedances

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     A cursory review  of  the  data shown in  Table  III-E,  F, and  G
would  lead  to -the  conclusion  that  the proposed  relaxations  and
revisions would have a small  negative impact  in  the mid and  late
eighties, but none thereafter.  This is essentially  correct if  the
accuracy of  all  of  the  assumptions and data that  went  into  the
modified rollback  could  be  guaranteed.   Given  that  there  are  a
significant number of  parameters needed by the model which  must be
estimated by the user,  it would be unwise to  conclude  that  the  re-
sults  of the model  are  precisely  accurate.  However,  the model
predicts trends quite  well.   For  example,  in Table  III-F the  num-
ber of counties exceeding the NAAQS  could  easily  be off by one or
more in any year in the mid to  late  eighties.  However  it would be
correct  to .say that  the analysis  clearly shows that the  potential
negative impact is likely very small.

     One other  extremely important  judgment  that  went into  this
analysis should  be  highlighted.   This analysis  assumed  that  I/M
would  be implemented where required,  beginning  in  1982,  for  all
LDVs and LDTs.  If the I/M programs  were delayed or  scaled  down in
geographical area or scope,  the air quality analysis would likely
reflect  less  total improvement  with time,  as well as  more  exceed-
ances  and  more counties  above the  standard.  The  impact  of  .the
proposed relaxations and  revisions would then  probably  be  somewhat
larger.  However, we expect  that the  overall impact of  this  pro-
posal  would  remain  small, but  would  probably  be  noticeable  into
the 1990's.

D.   Other Environmental Impacts

     1.    Lead

     The  relaxation  back to   non-catalyst  technology  will   also
cause  the  loss  of the  expected reductions  in tailpipe lead  emis-
sions  from HDG vehicles.  Assuming a lead content  of 1.1  grams per
gallon in leaded fuel  and a  tailpipe out emission rate of  80  per-
cent,  the  benefit  foregone  amounts  to approximately 22.3 Ibs.  per
HDG  vehicle  over  its  lifetime.[5]   This  calculation  assumes  an
average  HDG  vehicle  lifetime  of  114,000   miles  and  an  average
class-wide fuel economy of 9.9 miles/gallon.[4]

     2.    Sulfuric Acid

     With the  implementation  of catalytic converter technology on
HDG engines, EPA expected a slight  increase  in the per HDG  vehicle
sulfuric acid emission levels.  With the move back to  non-catalyst
technology this slight increase will no longer occur.

     3.    Misfueling

     Since 1975 and  1976  respectively, most  LDVs and LDTs have re-
quired the use of  unleaded  fuel.   Given an  average  lifetime  of 10
years  for  LDVs  and  12  years  for LDTs,  EPA expects a  substantial

-------
decrease in the demand for leaded  fuel  by 1984.   We expected this
demand would be even  less  as  a result of  the  new requirement for
unleaded fuel  use  in  HDG engines.   At  some point  in  the mid-to-
late  eighties  demand  for  leaded  fuel would  have  dropped  to the
point that its production and  distribution might  have  become cost
•prohibitive for some  companies.  A  decrease in the available sup-
ply of leaded fuel would have  led  to a  decrease in the misfueling
rate.

     This move back to non-catalyst  technology for  1984-1986 model
year HDG engines could extend  by  several years the general avail-
ability  of  leaded  fuel  in  the marketplace.   Unfortunately,  as  a
result the opportunity for  misfueling would also be extended.

-------
                            References

     1. .   For a current review of this data, as well  as  citations
to other  reports  on  health effects of HC  and  CO,  see  "Health  Ef-
fects  of  Exposure  to Low  Levels  of   Regulated  Air  Pollutants -  A
Critical  Review,"  Benjamin A. Ferris,  Jr.,  M.D.,  Journal of  the
Air Pollution Control Association•,  Vol.  28, no.  5, May  1978.

     2.    Air Quality  Analysis  for  the  Revised  Gaseous  Emission
Regulations  for  1984 and  Later  Model Year  Light-Duty Trucks  and
Heavy-Duty Engines, September 1981.

     3.    "Regulatory Analysis and  Environmental  Impact  of  Final
Emission  Regulations for  1984  and   Later Model  Year  Light-Duty
Trucks," U.S. EPA, CMSAPC,  May 1980..

     4.    "Regulatory Analysis and  Environmental  Impact  of  Final
Emission  Regulations  for 1984 and  Later Model Year  Heavy-Duty  En-
gines, U.S..EPA," CMSAPC,  December 1979.

     5.    The average lead content of leaded regular  gasoline  was
obtained  from Robert Summmerhayes of EPA/FOSD,  May 15,  1981.

     6.    This  portion of  the  analysis  uses  certification-based
deterioration factor  estimates, not  in-use deterioration estimates
such as are used in MOBILE II emission factors.

-------
                            CHAPTER IV

                         ECONOMIC  IMPACT

A.   Introd uct i on

     This  chapter  will examine the  cost  impacts  of  the  proposed
changes  to  the  1984  LDT   and  HDE  final  ruleinakings   previously
detailed  in Chapter  I.   Rather  than  reexamining in  detail  the
entire cost analyses of both final rulemakings, this analysis  will
evaluate  only  the  cost  impacts  of  the  proposed  changes.    Of
necessity,  much  data from  the  previous analysis  will  be used  to
develop the incremental cost savings.[1][2]

     The  areas  to  be evaluated are:   the  revised HDE CO emission
standard,  relaxation of the AQL for LDT and  HDE  SEA,  and the  two
year delay of the implementation of SEA requirements for  HDEs.

     This  analysis is  divided  into  two main sections.   In  the
first  section  we will  examine  the cost implications  of the  pro-
posed  revisions to  identify  and  quantify   the  cash  expenditure
savings and  cash flow savings  associated with each action.   Cash
expenditure  savings  simply  means  that  the  need  to spend  that  sum
will be eliminated; cash flow savings means that  the need to  spend
these funds will be  deferred.   After  these  savings have  been  iden-
tified and quantified  in each  category,  they will be  summarized
for each vehicle/engine grouping being considered.

     In the  second  section  we  will identify  in aggregate terms  1)
the net cash expenditure savings, 2)  the net  cash flow  savings and
3) the net impact on both the first, price increase and  the operat-
ing costs.

     All  cost  figures  used  in  this analysis  are  expressed in  1981
dollars unless  otherwise noted.  Costs  carried over from  the  1984
HDE  final rulemaking (developed mid-late  1979)   and  the 1984  LDT
final rulemaking (developed  early-mid  1980) will  be inflated  at  8
percent per  annum. [3J   The  LDT and HDE sales projections used  in
the 1984  final  rulemakings  will also be used in  this analysis  so
that  valid  per  vehicle/engine  cost  comparisons  can be made  to
gauge  the  incremental  impact  of  the  proposed  revisions  (Table
IV-A).  These  projections reflect  the significant increase in the
use of diesel engines which is expected in  both LDTs and HDEs.

B.   Cost  Implications of  the Proposed Revisions

     1.    Revision of the HDE Gaseous Emission Standards

     a.    Introduction

     As has  been described  previously,  the  major  thrust  behind the
revisions  to  these  rulemakings has   been  to  provide  short-term
economic  relief  to the automotive  and  related industries.   Toward

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                            Table IV-A
               LPT Sales Projections (millions) [1]
1984
1985
1986
1987
1988
1984
1985
1986
1987
1988
0-10,000
GVW
3.97
4.25
4.42
4.53 •
4.81
All States
0-8,500 Domestic
GVW LOT
3.45 2.69
3.70 2.82
3.85 2.84
3.99 2.83
4.18 2.81
Import/
Captive
LDT
0.43
0.46
0.48
0.50
0.52
49 States (Excludes California)
0-8,500
GVW
3.13
3.35
3.49
3.61
3.79.
I7.37r


Import/
Domestic Captive
LOT LDT
2.50 0.32
2.62 0.34
2.64 0.36
2.63 0.37
2.61 0.39
13.00 1.78
Heavy-Duty Engine Sales
1984-1988
Gasoline-
Year . Fueled
1984 366,991
1985 360,888
1986 354,287
1987 347,171
1988 339,547
LDDT
0.31
0.39
0.49
0.61
. 0.79
2TT9"
[2]
Diesel
266,161
284,255
302,854
321,966
341,583
                                LDDT

                                0.33
                                0.42
                                0.53
                                0.66
                                0.85
                Total
1,768,884
1,516,819
 [Ij   Regulatory   Analysis  and  Environmental   Impact   of  Final
Emission  Regulations  for  1984  and  Later Model Year  Light-Duty
Trucks, U.S. EPA,  OMSAPC, May 1980, pp. 31-33.

 [2j   Regulatory   Analysis  and  Environmental   Impact   of  Final
Emission  Regulations  for  1984  and  Later Model Year  Heavy-Duty
Engines, U.S. EPA, CMSAPC, December 1979, pp. 39-46.
                         50

-------
that end, preliminary analyses indicated  that  much  of the capital
investment and  R&D  costs related  to  the  1984  HDE FRM  were tied
directly  to  the implementation of  catalytic  converter  technology
on HDG  engines.   As  a result  the  decision was made  to  propose a
revised  CO  emission  standard  beginning  in  the 1984  model  year,
which  could  be achieved  without   the  use of  catalytic  converter
technology.

     The  technological feasibility discussion  in Chapter  II sup-
ports the proposed emission standards for HC (1.3 g/BHP-hr) and CO
(35 g/BHP-hr) assuming compliance  with  the 40  percent AQL beginn-
ing in  1986.  These  proposed  revisions  represent  no relaxation in
the HC  standard but do represent a 125  percent increase  in the CO
standard.  Beicause the relaxation  of  the  CO standard will not af-
fect  the expected .compliance strategies  for  HDD  engines,  their
compliance costs  will  basically  require no  further analysis over
what was  contained in  the regulatory  analysis  supporting the 1984
final  rulemaking.  Therefore  this  analysis  of  the costs  of com-
pliance with the  proposed emission standards will be limited only
to HDG engines.

     b.    Reviewjpf  the  1984  Final Rulemaking  Costs

     (1)   Aggregate  and  Per Engine Costs

     In  late 1979 EPA promulgated  final rules  implementing  new
emission  standards and compliance  requirements  for  1984  and later
model year heavy-duty engines.  In  support of  this  final rule, EPA
developed an economic analysis to  determine the aggregate cost and
first price impact.

     To  determine  the potential economic  savings associated with
the  proposed revisions it  is necessary to  review  the  final cost
estimates calculated  in  the  past  economic analysis.   The figures
shown  in  Table  IV-B  give  both the per engine  and aggregate cost
estimates for the HDG  engine  portion  of the  analysis.  The figures
are  given in both  1979   and  1981   dollars  and are discounted to
January  1984.   These figures  will  be  used later  in  this analysis
to  determine the potential savings  of the  proposed  revisions to
the HDE emission standards and regulations.

     (2)   Capital Cost   Estimate  for the  1984 Final  Rule:  HDG
           Engines

     At  the  time when the  economic  analysis  supporting the  1984
final  rule was  conducted  (mid-late  1979)  the heavy-duty  engine  in-
dustry  had just ended a year  of record  sales (1978).   With one  ex-
ception,  there  was little question that.the heavy-duty  engine  in-
dustry  would be able  to finance the required investment.  As a  re-
sult,  less attention was  given to  determining  the capital cost  re-
quirements  of   the  final  regulations  than might  otherwise have
been under less favorable economic  conditions.
                            SI

-------
     The aggregate  cost  figures  given  in  Table  IV-B  do include
some capital co'st estimates, as some of these investments would  be
required . before  production  begins.   These  include certification
facilities, research and development, SEA facilities, and certifi-
cation testing.  The area which did not receive explicit  attention
is  the  tooling  costs  associated  with the  manufacturing  of the
emission control hardware.   Although these costs were stated  in  an
amortized  manner as  part of the manufacturing, cost, they were not
stated explicitly as capital  investment costs.   Identification  of
these costs now is important, as  they represent a major portion  of
the potential  savings  associated  with the proposal  to  revise the
HDE  CO  emission standard.   Our  initial  estimate   of  the tooling
capital  costs  associated  with   the   1984   HDG   final  rule   as
promulgated is shown in  Table  IV-C,[4]   For future  reference, the
R&D  capital  costs  of  the   1984  final  rule  are also  included  in
Table'IV-C.

     Having now reviewed the 1984  final rule costs  for  HDG engines
and laid  the  proper background  in relation to capital costs,  we
can proceed with the analysis of  the cost implications  of the pro-
posed changes.

     c.     Non-catalyst Technology Compliance Costs

     The technological  feasibility discussion of  Chapter II  out-
lined the  emission  control techniques and  strategies  which are
most likely for  HDG  engines.   Costs for achieving  compliance with
the  proposed  emission standards  would lie  in three  main .areas:
pre-production R&D,  engine and  component modifications,  and new
emission control hardware.

     (1)   Pre-production R&D Costs

     Phase  I   of  each  manufacturer's  pre-production  R&D program
would most  likely  be a  complete  characterization  of the emission
characteristics  of  each family on the transient  and  idle  tests.
This would include  emissions  characteristics  at  different  cali-
brations as well as  initial optimization of  the engine's  emissions
performance prior  to any modifications or  additions.   This  would
be  accomplished  using  steady-state mapping  techniques  as well  as
hot  start  and  cold  start  tests.    A  more limited  number of idle
tests would  also be necessary.   Given  this  test  information,  the
manufacturers would  have the information necessary to make  deci-
sions as  to which modifications  and  emission control  components
will  be necessary  to  reach  the   target  emission  levels.   Consi-
dering  the  leadtime  plans  submitted by the manufacturers in  their
comments  to the  1979  HDE proposal,  we  expect  that  some  manu-
facturers have, already completed this phase.

     With  this initial  data Phase  II of  the R&D  program would  be
the  development  and application  of  the  emission  control  systems
and  engine/component modifications.  This task would  fall on the

-------
                                 Table IV-B

              HDG Engine  Compliance Costs:  1984 Final Rule [1]
3.  SEA Facilities

4.  Certificati

5.  SEA Testing

6.  SEA Self Au

7.  Manufacturing

8.  Quality

9.  Overhea

    TOTAL


Operating Costs

Unleaded Fuel [3]

Exhaust System and
Spark Plugs

Potential Fuel Savings [4]

ion Facilities
nd Development
ties
ion Testing
g
udits
ing
ntrol
nd Profit
Per
1979
£ 8.06
15.18
10.98
2.45
.81
5.06
253.00
10.00
88.61
Engine
1981 [2]
9.40
17.71
12.81
2.86
.94
5.90
295.10
11.66
103.35
Aggregat
1979
$11,918K
22,435K
16.228K
3.620K
1.196K
7.475K
373.924K
14,780K
130,957K
e
1981
$13,901K
•26.168K
18,928K
4,222K
1.395K
8,719K
436.145K
17,239K
152.748K
 $394.15    $459.73
$582,533K     &679,465K
 $258.72    $258.72      $382,373K     $382,373K

-$176.13  -$205.43     -$260,319K    -$303,636K


 $422.00    $540.00
[I]   Regulatory   Analysis   and  Environmental  Impact   of   Final  Emission
Regulations  for  1984  and  Later  Model  Year  Heavy-Duty  Engines,  U.S.  EPA,
aiSAPC,  December 1979,  pp. 133-34.

[2]  Inflated at 8% per year for two years.

[3J  Assumes 3 cent/gallon unleaded-leaded  fuel price differential.

[4j  Erroneously calculated in the  original analysis.
                               53

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                            Table  IV-C

           HDG Emission Control Hardware Tooling Costs
                1984 FRM (1981  Dollars)  undiscounted    [1]

Catalytic Converters             .                           $ 7.0M

Larger Air Pumps                                             38.5M

Air Modulation System                                         1.6M

Chassis Heat Shields/                                         1.5M
Stainless Steel Exhaust

Parameter Adjustment                                          2.2M

Deceleration Fuel Shut-off                                    6.5M

Engine Modifications                                   '      5Q._6M

Total                                                       $107.. 9M

R&D (Table IV-B, undiscounted)  [2]                            26.2M

Grand Total                                                 $13'4.1M
[1]  See footnote 4 for more detail.

[2]  Initially expected to be invested in 1981 and 1982.
                            5M

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four manufacturers of EDG engines and those companies which  supply
the related  components.   Once the  engine  modifications have  been
made and the necessary components added, the engines would have  to
be recharacterized and reoptimized as was done  in  Phase  I.

     Costs for  Phase I  characterization  and  optimization  can  be
estimated by determining  the number  of  transient tests necessary.
to adequately  characterize  an engine's emissions performance.  A
liberal estimate of the level of  effort required  would  be 40  tran-
sient  tests  per  family.   This  would include  two tests  at  each
calibration  and  a void  rate of  10  percent.   Each  full emission
test (transient and  idle) is estimated  to  cost $500, which  yields
a  total  testing  cost of about  $20,000  per family.  This methodo-
logy could overestimate  the full  cost  because most manufacturers
would use hot starts  and  steady-state maps and would tend to  keep
full transient tests  to  a minimum at this  stage.  As  is shown  in
Table IV-D when  other fixed costs  are  included this cost becomes
$36K per family.

     Costs for Phase  II  of  the R&D  process are more difficult  to
estimate.   This   is   primarily  because  this  includes   costs for
development  of  prototype emission  control  components  and modifi-
cation of some other  present features.  Fortunately, virtually all
of the additions  and  modifications we anticipate  will  be employed
have been used in the LDV/LDT fleets for  several years, and  some
are already  used  in  HDG  engine families.   As an  initial estimate,
a  figure  of  $15K per family  will be used  to  estimate  these  com-
ponent and modification  costs.   Phase II  will  also  require  a re-
characterization  and  reoptimization  after  the modifications  have
been made and  the components added.  This  would  add an additional
$20,000  per  engine  family  bringing  Phase II  costs to  $35K per
family, (Table IV-E).

     Total Phase  I and  Phase II costs per  family sum to $71K per
engine family  and $1.136 million industry-wide.   EPA  anticipates
that this  amount may overestimate  the  total  cost impact  of  pre-
production R&D.   This is  due primarily  to  an anticipated decrease
in the number  of HDG engine  families over  the next three  years.
Preliminary  1982  certification   data  and   informal   conversations
with manufacturers indicate  that  the number of Federal HDG  engine
families  could  drop from   16  to   11  or  less  by   1984  due  to
decreasing market demand for HDG engines.
     (2)   Emission Control System

     ( a )   Modifications and Improvements

     The  emission-related  modifications  and  improvements  which
will be necessary to meet  the  1984  emission  standards  will vary by
engine    family    primarily    according    to    its    emission
characteristics.  The  costs of control  for  each family will  vary
according to  the emission  characteristics and the currently  used

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                                 Table IV-D

                      Pr e-Production R&D Testing Co^sts

Manufacturer
Chrysler
Ford
GM
1H
(a)
// Engine
Families [Ij
. 2
6
4
4
Phase 1
(b)
Fixed Costs
per Family [2]
$16K
$16K
$16K
$16K
(c)
Testing Costs
per Family
$2 OK
$20K
$20K
$20K
[Ij   Based on 1981 Federal Certification Families.

[2j   Engine:   $2000,  Break-in:  $90.00, Engineering Overhead:

[3]   40 transient tests at $500 per test.

[4]   (a) (b + c).
                                                                   (d)

                                                                 Phase 1
                                                                R&D Total [4]

                                                                  $ 72K

                                                                  $216K

                                                                  $144K

                                                                  $144K
$5000.

-------
Manufac_tur_er

Chrysler

Ford

GM

IH
                                 Table IV-E

                      Pre-Production R&D Testing Costs
(a)
// Engine
Families
2
6
4
4
Phase II
(b) '
Fixed Costs
per Family [1]
 jL_sr\.
$15K
4> J.3ix
 j. _/r
-------
emission  control  hardware.   Our  analysis will  assume  that when
possible the manufacturers design and build their emission  control
systems .to  comply  with  the  requirements  of  the 40  percent AQL
beginning in  1984,  even though  under the proposed  revisions HDE
SEA  would   be   delayed   until   1986.    This  would   allow  the
manufacturers  to  avoid  the  replicate   costs  of   repeated R&D,
retooling, arid recertification, and is thus the most efficient use
of resources.

     EPA  expects  that  the greatest  emission reductions  will   be
gained  in  engine and  component  modifications.   The cost  of the
necessary modifications is difficult  to  estimate.   Some are  noth-
ing more  than a  recalibration,  but  others  may  require  more ex-
tensive redesign and retooling.

     The  expected  modifications  are shown   in  Table  IV-F.  The
costs to implement  new calibrations  of  spark timing, EGR,  and A/F
ratio  are  negligible.  Improvements  to  the  air  injection  system
are  primarily related  to optimizing the  diverter  and   pressure
relief  valves to  the demands  of  the transient test.   The  use  of
air modulation would probably be  beneficial.

     Carburetion modifications  present  the  largest  potential im-
provements.   The 'analysis  in Chapter  II described the need  for the
improvements  and recalibrations  in  general  fuel   metering, ac-
celerator pump operation,  and  power  enrichment.   In the long term
the  price  of  the  carburetor  will probably   remain   relatively
unaffected,   but  manufacturers and  vendors  will  have  to  recover
their costs for redesign and retooling.  As  an initial  estimate,  a
per engine cost of  $10 is  reasonable to amortize these costs over
a  five-year  production period.  Using  a 10  percent discount and
amortization rate beginning  in 1984,  this allows an investment  of
about  $11.6  million  dollars  if  the investment  is  split  evenly
between 1982  and 1983.   This allows  an investment of $725,000 per
engine   family   to   cover   costs    for   carburetor    redesign,
optimization, and retooling  if necessary.   Finally,  for the sake
of completeness, an additional $5 should  be added  to  the  initial
$10   figure.    This   covers   the   other    carburetor    related
modifications  expected  in  the   original  1984   final   rulemaking
analysis such as parameter adjustment.                  ' .

     There are  other  modifications  which could  be used   to gain
further reductions.   Both  manifold  configuration changes and com-
bustion chamber modifications  would  be  effective.  Changes  to  the
design  of the intake manifold could  improve  air-fuel  distribution
to  the cylinders.    Decreases  in the combustion chamber  surface-
to-volume ratio  and  dead  volume would  aid   in  reducing  HC emis-
sions.  Modifications  of  this type  are not  difficult  or  innova-
tive,  but  they  are more  leadtime  intensive.   Costs  for  modifi-
cations  to  manifolds  or  combustion  chambers ' could run   $20  per
engine  in  the short-term  to recover design  and retooling costs.
This would allow an average  investment of  $1.5 million  dollars  per

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                            Table IV-F

        Emission  Control  Related  Modifications/ Improvements

Carburetion                                                   $15
   idle emission std
   power enrichment
-  accelerator pump
   general fuel metering
   other modifications

Manifold and/or Combustion Chamber Redesign                   $20

MiscejLlanepus

air injection system (diverter and                             -
pressure relief valves)

spark timing, A/F ratio,                                       -
EGR recalibrations                     .
Sales-Weighted Cost:[l]                                       $30
 [Ij   Based  on  estimated  need  for  manifold/combustion  chamber
 redesign in 75 percent of the fleet..

-------
engine family..  However,  it  is unlikely  that  all engine  families
will implement manifold and/or combustion chamber revisions.  As  a
conservative  estimate  we  will .assume  that  12  of  the  16  engine
families do incorporate these modifications.

     In summary, as an initial  estimate we will  use  a per  engine
modification/improvement  cost of.  &35  if  all  modifications  are
implemented.   This would  cover  the • recalibrations,  carburetion
improvements  and  manifold/combustion  chamber  improvements.   Al-
though we  expect most  families  will require  the carburetion  im-
provements, it  is  unlikely that all  will require manifold  and/or
combustion chamber revisions.  The actual per engine cost  would  be
$30 using  our assumption that 75  percent of  the families do  use
these modifications.

     (b)   Emission Control Hardware

     The emission control hardware anticipated for compliance with
the  proposed  standards  is similar  to that  used in  the  LDV/LDT
fleets.  Much of the technology and  performance experience will  be
readily  transferable   to  HDG   engines   and   has  been   in  some
cases.[5j  Table IV-G  lists  the  hardware  which we believe  will, be
used, beginning in 1984.

     The  costs  shown   in  Table  IV-G  have  been taken  from  two
sources:   manufacturers'  comments  to  the 1979  HDE  NPRM  and'  two
reports prepared by an  EPA contractor.[6][7][8]   In both cases  the
costs  reflect  the  economies  of scale  expected  in HDG engine pro-
duction and have been  inflated  at 8  percent  per annum to reflect
1981  dollars. [9]   The  hardware  costs represent  what  EPA expects
for  the  average engine.  In  some  cases  these component costs  may
be slightly greater, in other cases slightly less.  At this  point
in  the analysis the component  costs  shown  in Table  IV-G do  not
reflect an adjustment  for the fact  that  some of these components
are already used on HDG engines.

     If any  engine family cannot meet  the  target emission levels
with the  conventional  modifications  and hardware described above,
manufacturers may  choose  to  incorporate  less  conventional control
technologies such as port  liners or  thermal reactors.  These would
require more  development  and  leadtime,  as well as more expense  to
both the manufacturers/vendors in short-term capital costs and  the
consumers  in first price  increase.   The use of  these  components is
not  considered  likely, but  they  are available  if  desired  by  the
manufacturers.

     (3)   Total Emission Control System Costs and Savings

     Costs  for  compliance with the  standards  can be  divided into
three  main areas':  pre-production R&D, engine  and emission control
system modifications, and emission control hardware.

-------
                            Table IV-G




            Emission Control Sy stem Hardware Costs [1]




Automatic Choke (electric)                                    $ 4




Early Fuel Evaporation                                        $18




Heated Air Intake                                             $ 8




Increased Air Injection                                       $39




EGR (light-load)                                              $17




Air Modulation                                                $ 8




                                                              $94
[1J  See reference 10.
                            Gl

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     Engine  and  emission  control  system  modification  costs  and
emission control hardware  costs  shown  in Tables IV-F and IV-G sum
to $124.  Per engine pre-production R&D cost is estimated at $1.32
at the  consumer  level,  bringing  the total emission control  system
cost to  $125 per engine  if all  modifications  and components are
incorporated.

     Realistically,   not all  engine 'families  will  need   to  in-
corporate all of  these components  and  modifications.  Also, some
families already  use  items such  as  EGR,  automatic  chokes,  and
heated air  intake  so these costs  will  not be  incurred again.    A
reasonable  average  per engine  cost is  probably   in  the $95-$105
range.   This analysis will use  the high end  of this range  ($105)
as the average per engine  cost.   This $105 includes all  profit and
overhead and is  in 1981 dollars.

     On a per engine basis this figure should  be  compared  against
EPA's  anticipated  costs   for  the  1984  Final Rulemaking   (Table
IV-B).   In   the  regulatory analysis  we  projected costs  in 1979
dollars  (including  profit  and overhead)  of  $20 for  R&D and $326
for emission control hardware, for a total of  $346.   Inflated at  8
percent per  annum this  figure  becomes  $404.   Compared against the
anticipated  non-catalyst compliance costs, the  savings is $299 per
engine for  the emission control  system portion of the  first price
increase.

     (4)   Capital  Costs   of  the  Proposed  Revisions  to  the  HDG
           Emission Standards

     The proposed revision  to the  HDE CO emission  standard  and the
move to  non-catalyst technology will still have  capital cost re-
quirements.   These   are  related   to  engine and component  modifi-
cations,  pre-production R&D,  and  tooling  costs  associated with
emission hardware.

     As shown in Table  IV-H these costs sum to $60.1 million dol-
lars. [4 J  This includes $1.2 million for pre-production  R&D,  $29.6
million  for carburetor and manifold/combustion chamber  redesign,
and  $42 million  to  cover  costs  to "tool-up"  for   the new emission
control hardware.  EPA  expects  that many of the new  emission con-
trol components can  be  obtained  from currently, existing  production
capacity thus eliminating  the  need for new tooling and  equipment.
Since  the  amount of component carryacross' available  could  not  be
precisely quantified  the  tooling costs estimates   HDG engines have
not  been  adjusted  downwards.   It  should  be  highlighted that many
of the  emission  control and engine components  are  built  by  vendors
and  not the  manufacturers themselves,  so  the capital costs are
spread over  more than  just the  four major  manufacturers.  The move
to non-catalyst  emission  standards leads to  a  46  percent decrease
in  the capital  costs  (tooling/R&D) over  that  which was  expected
with  catalyst  technology.  Component  carryacross  will decrease
this  amount  even further.  Given  these  facts,  plus  the number  of

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                           Table IV-H

             Capital Costs of the Proposed Revisions
         to the  HDE  Emission  Standards (1981 Dollars) [1]

          Pre-production  R&D                    $ 1.2M

          Engine/Component Modifications        $29.6M

          Tooling

          -  Automatic  Choke                    $ 3.5M
          -  Early Fuel Evaporation             $ 2.1M
          -  Heated  Air Intake                  $   .4M  [2]
          -  Increase Air Injection             $31.3M
          -  Air Modulation System              $ 1.6M
          -  EGR (1  manufacturer)                   .9M
             Parameter  Adjustment               ^ 2.2M

          Total                                 £72.8M
[lj   See footnote 4 for more  detail.

[2]    No  estimate  available,  but  should  be  small,  so  we  have
included 100K for each of the four manufacturers.
                         C'3

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manufacturers and vendors over which the costs are spread,  EPA  be-
lieves these capital costs are manageable for the  industry.

     (5 )   Operating and Maintenance Co^sts^

     In  the  1984  FRM  EPA  estimated  that   HDG  vehicle  operating
costs would  rise  about $83.   This  was comprised of  $259  for  un-
leaded fuel  less  $176 for  improved  exhaust  system  and spark plug
longevity.   The   $83  figure   (1979   dollars)   incorporates   an
unleaded-leaded fuel differential of 3 cents per  gallon,  predicted
for the raid-eighties.

     Assuming  that  the costs  of  spark  plugs  and exhaust  systems
have increased  at  8  percent per year,  the savings associated with
these  becomes  $205,  bringing  the  net  cost  increase  to  $54.   The
accuracy of the $54  (1981 dollars) hinges on the  prediction of  the
3  cents  per  gallon unleaded-leaded  price  differential.   If  the
differential rises^  the operating cost  increase  would also  rise.
The reverse is  also  true.   For this analysis we will assume  the 3
cents per gallon differential  remains  valid, and  the  net  operating
cost increase is $54 dollars in 1981 dollars.

     In the 1984 final  rulemaking we also  identified  the  potential
for a 4 percent fuel  economy  improvement  for a  lifetime savings of
$540  (1981 dollars  and  unleaded  fuel   cost).[11]   The  move  to
non-catalyst  control technology  will  eliminate  this  anticipated
improvement.   EPA expects  that  the  proposed  emission  standards
will  have a  neutral  fuel  economy  effect  on  a  fleetwide  basis.
Many  of  the  modifications  and hardware  additions expected should
have  no  fuel  economy impact.   The  potential fuel consumption  im-
pacts of increased air  injection should  be offset by  improved fuel
distribution and  improved engine warm-up  time.   EPA requests  the
manufacturers'  comments  on the  fuel  economy impacts  of  the  pro-
posed emission  standards.

     Finally,  the  fleetwide use  of  heated  air  intake  and  automatic
chokes will cause  a  small increase in lifetime maintenance costs.
These  components  usually  require  minor  servicing  (operational
checks and  lubrication) in intervals  of 12,000-24,000 miles.   We
will  include  $20  to  cover  these  costs  over the  vehicle  life-
time. [12]

     d.    Idle Emission Standard

     The idle  emission  standard  should be  feasible  for  no cost  in-
crease over that discussed  above.   Costs for the  idle standard  are
included in the necessary carburetor modifications.

     e.    Cost Comparison:  Catalyst vs. Non-Ca_talysjEL Systems

     Having now reviewed  and  updated the costs  associated with  the
1984  FRM and  identified  and   developed  the  costs associated  with

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the proposed revisions to the 1984 HDE emission standards,  the  re-
maining task is- to compare the costs  in  the  appropriate  categories
to determine  the  savings.  This  will be done  for capital  costs,
first price increase, and operating/maintenance  cost.

     Comparing Tables  IV-C  and IV-H  the capital  cost  savings  of
the  proposed  changes   to the  HDE  emission  standards  is  $61.3
million  dollars.   As  was  expected,  • the  major  portion  of  this
savings  is  due to the elimination of  the  use of catalytic  con-
verter  technology and  the  need   to  develop  full  life  catalyst
systems.

     As a result  of  the change in emission control strategies  the
hardware portion  of  the first price  increase will drop.   The  ex-
pected hardware/R&D  portion of  the first price  increase will  drop
from $404 (1981 dollars) for the 1984 FRM to $105  for the  proposed
revisions, for a savings of $299 per HDG vehicle.

     Operating and maintenance costs  will not  be  affected  as  dra-
matically.   Increased  costs  are  expected  to drop  from $54  (1981
dollars) to  $20,  for a savings of  $34  per  vehicle.  This  assumes
the  3  cent  per gallon  unleaded-leaded  fuel  differential.    If  -the
potential fuel economy  improvement  impact  is included  the  operat-
ing cost impact is substantial  ($540  per HDG vehicle or its life-
time).  These costs are summarized in Table  IV-I.

     2.    Revisions to the LDT/HDE Enforcement  Provisions

     a.    Relaxation of  the Acceptable  Qua_li_ty Level (AQL) during
           Formal SEA Testing (10% to 40%)

     Relaxation of the AQL has cost implications  in four different
areas:   self  audit  testing,  quality  control,  formal SEA  testing,
and compliance hardware.  Relaxation  of  the  AQL would decrease the
manufacturers' internal  auditing  levels and would thus provide a
savings.  A 40 percent AQL would  allow  more  production  variability
(and  noncompliance)  than  a  10  percent AQL,   so  quality  control
procedures  could  be  less stringent.    The  relaxation  of   the  AQL
will  actually lead  to  a slight  increase  in  formal  SEA  testing
costs  as the  number of  LDTs/HDEs  required to  reach  a  pass/fail
decision  in formal  SEA testing  increases  slightly.    Finally,  as
shown  in Chapter  III,  the 40 percent AQL will  allow  higher target
emission levels than were demanded  under the 10 percent AQL.  This
will  be reflected  by  potentially  lower emission control  system
costs.  The cost  impacts  in these  areas  for  LDTs,  HDG engines, and
HDD engines are discussed below.

     (1)   Light-Duty Trucks

     In  the final rulemaking  process implementing the  10 percent
AQL  for LDTs  it  was  difficult  to identify specific  costs asso-
ciated  with the 10  percent  AQL.   An analysis  of  California audit

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             Table IV-I

Cost Impact of the Proposed Revisions
to the HDE Gaseous Emission Standards
Capital Costs
(Tooling/R&D)
Emission Control
(Hardware/R&D)
Operating/
Maintenance
1984 FRM-
$121.4 M
$404
$ 54
Proposed
Revision
$ 60.1 M
(
$105
$ 20
                                      Undiscounted
                                          Savirigs_

                                         $ 61.3 M
                                     (industry-wide.)

                                         $299
                                      (per vehicle)

                                         $ 34
                                      (per vehicle)

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data  indicated, that most  manufacturers  were  already  meeting  the
more stringent AQL.[l3j  When the manufacturers were queried as  to
the cost, impacts  of the  10 percent AQL  little detailed  response
was received.

     Although most manufacturers routinely conduct some self audit
testing at the 40 percent AQL, only Chrysler responded that the  10
percent  AQL  might  increase  self auditing.  They estimated addi-
tional equipment costs of $1.7 million dollars  and annual  manpower
costs of $300,000.  Over a five year period this  sums to $3.2  mil-
lion dollars.

     Formal.  SEA costs  would increase slightly  as  a  result of  the
relaxation of the  AQL.   The number of LOT tests required to make a
pass/fail decision would rise from 13 to 16.  This would lead  to a
cost increase  of  about $1200 per  audit  or about  $4800  per annum
assuming  the  current   rate   of  about  4  audits  per  year  (1980
dollars).  Over a five year period this means  a  cost  increase  of
only $24,000 industry-wide.

     Finally,  because  all emission  target  levels will  rise,  the
implementation of  the 40 percent AQL will allow a  reduction in the
costs of  compliance  related  to  emission  control hardware.   As  was
shown in  the economic  analysis  supporting the  '1984 LDT FRM,  these
costs  were  estimated  at   $3.40  per  engine.    The  largest impact
fleetwide  is the  elimination of  the need  for  anything  but minor
reductions in NOx levels.   The impact of the 10 percent AQL on the
NOx low  mileage  emission  target was  one of the  reasons EPA  con-
sidered  an unsophisticated electronic control  system  as a likely
control  strategy  for 1984 LDTs.   Even though  the need  for  these
NOx  reductions has  been  decreased,  we  continue  to  believe  that
most  manufacturers  will  choose  some form  of   electronic  controls
due  to  the  need  for reductions in  cold start  emissions  and  the
demands of the 1984 and 1985 LDT fuel economy standards.

     (2)   Heavy-Duty Gasoline Engines

     In  the  regulatory  analysis  supporting   the  1984  HDE  final
rulemaking  EPA identified  costs  in  the  areas mentioned  in  the
paragraphs introducing this section.   These are discussed .below.

     The   1984  analysis  assumed  that  beginning  in  1986  manu-
facturers  would  audit  their  production  at an  annual  rate of  0.4
percent.[14]   Using  the sales data shown in Table IV-A  this  comes
to 4164  audit  tests  over  the  three years  (1986-1988).  In  the  cost
effectiveness  portion  of  the 1984  HDE   regulatory  analysis,  EPA
used an  audit  rate of  0.2  percent  per  annum or  2082  tests  over the
three  year period  (1986-1988)  under  a 40  percent AQL.    Over  the
three  year  period   the   relaxation  of  the AQL   would  save .2082
audits.   At  $1072 per  audit this savings is $2.23 million dollars
(1979  dollars).   No additional  testing facilities over  that  which
                            £.7

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was required  for formal SEA  testing were necessary  under the  10
percent AQL, therefore no facility savings are  included.

     Quality  control  costs are  likely  to remain  relatively un-
affected  by  a. change  in  the  AQL.   Going from no  SEA program  to
even a  40 percent AQL would  require  some tightening of  internal
quality  control  procedures  over  the  current  levels.   The  pro-
duction of HDG engines has not been  subject to SEA  before,  so  some
quality control increases are  likely.

     As before with  LDTs, increasing  the AQL would  result in  an
increase  in  the  number of  HDG engines tested  in each formal  SEA.
An increase from 12 engines per audit to  15 would mean a  per  audit
cost  increase  of  $5250,  or  $262,000   for  the  50  audit  tests
anticipated in the 1984  HDE  regulatory analysis  for  the  1986-1988
time period of the original analysis.

     Relaxing  the  .AQL under  the  catalyst-based  emission  control
approach  would  have   allowed  a  cost savings.    In  the  regulatory
analysis  supporting the  1984  FRM we estimated an additional  hard-
ware cost of $13 due  to  the  effect of  the  10 percent AQL.   This
$13 is  already reflected  in  the  emission  control hardware  savings
described previously.

     For  the  non-catalyst based  emission  control  system  being
assumed in  this  action,  the  standards setting approach being  used
is different  from  that in  the  original rulemaking.   In this action
we  have  proposed  emission   standards  which  we  consider  to  be
achievable  under a 40 percent  AQL  and   the  other technology  and
lead time constraints.   If the decision  were made  to maintain the
10 percent AQL under  the  same  constraints, the approach  used would
be to propose  the  emission standards at   a level achievable  at the
10  percent AQL.   Under  these  constraints  and  this approach  to
setting standards  an  incremental hardware cost attached  to  the  10
percent AQL has no definition.

     (3 )   Heavy-Duty^ Di^ese 1 Engines

     As  before  with  HDG  engines EPA has identified costs  in all
areas  mentioned  in the  introductory paragraphs.   These  are  dis-
cussed  below.

     The  1984  final  rulemaing analysis  assumed  that  manufacturers
would audit  their  production  at  0.4  percent  per  annum beginning in
1986.[15]   Using  the  sales data of  Table IV-A this  comes  to 3866
audit   tests  over   the  three   year   period  being   considered
(1986-1988).   In  the  cost effectiveness   chapter of  the  regulatory
analysis  EPA assumed an audit  rate  of  0.2 percent  per year or 1933
audit tests over the  three year  period if a  40 percent AQL were in
effect.   Therefore, relaxation of the AQL would save 1933 audits.
At  $1274  per  audit  this  savings is  $2.46  million  dollars  (1979
dollars)  over the three year period.    In  the  original  1984 FRM

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economic  analysis  no  manufacturers  of  HDD engines  needed  addi-
tional facilities and  equipment for  self audit  testing.   Therefore
no savings  in  facility costs  are included as a result of  the  AQL
relaxation.

     As before with  HDG engines,  quality control costs are  likely
to remain unaffected  by  the  change  in the  AQL.   The heavy-duty
diesel industry  has  little experience with  the impacts of  SEA on
its  product  lines  and  will  probably choose  to implement  tighter
quality control procedures as part  of  its reaction to  the  new  SEA
requirements.

     Relaxing  the AQL  would  mean that  more  engines would  have to
be tested in formal EPA  SEA to  make  a  pass/fail decision.   The
expected  increase from 12 to 15 engines per  audit  would mean a  per
audit cost  increase  of $5250,  or $336,000  for  the 64  audit tests
anticipated in the 1984 HDE  regulatory analysis for  the  1986-1988
model years (1979 dollars).

     In the cost effectiveness analysis of the  1984 HDE regulatory
analysis  the incremental emission control compliance costs  for  the
10 percent  AQL were  estimated  on a  family  by  family  basis.   This
was  done  by  comparing the  projected   transient  test  hydrocarbon
emission  levels  of  each  engine  family  against the  expected  low
mileage emission  targets  of  the  10 and  40 percent  AQLs.   Com-
pliance costs  for each case  were then estimated.  The  bottom line
of this  analysis was  that the  average per  engine emission  con-
trol  system cost of the  10  percent AQL was about  $3 per  engine
(1979  dollars).   This  is  roughly  the  per  engine  savings  which
could be  expected from adoption of the  40 percent AQL.

     (4)   AQL Relaxation Cost  Impact Summary

     Table IV-J summarizes the potential cost savings  in  all areas
as a result of  the AQL  relaxation.  As  can  be  seen, the  total
savings for the five year period 1984-1988 for  LDTs and- HDEs is at
least  $77.3  million dollars  (undiscounted).   Of  this $77.3  mil-
lion, the short  term capital  cost savings to the  manufacturers is
at least  $8.2 million.   This  savings  plus  the emission  control
system  cost saving  can  be  passed  on  to   the consumers.   These
represent  real savings,  and  not  just  cash flow  savings,  since
these costs will not occur again, unless  the  10 percent AQL were
reimplemented.

     b.    Delay Implementation of the  SEA Program  for HDEs

     EPA  has  announced that implementation  .of   Selective  Enforce-
ment Auditing (SEA)  for HDEs will be delayed until the 1986' model
year.  This will yield short-term (1984 and 1985) cost savings in
three areas and cash flow savings for two years.   For  the 1984  and
1985 model  years  no  costs will  be  incurred in the  areas  of  self
audit tests, formal  EPA SEA tests, and  increased quality  control.

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                           Table IV-J

    Cost Savings Due to the Relaxation of  the AQL;  Summary  [1]
Light-Duty Truck (1984-1988); Heavy-Duty Engines (1986-1988)
Formal SEA
LOT
HDG
HDD
Total
Self Audit
Testing
$3.46M
$2.60M [2]
$2.87M [2]
$8.93M
Testing
Increases [3]
-$ 26K
-$306K
-£392k
-$724K
Emission Control
System: Costs [4] Total
$63.78M
- [5]
$ 5.39M
J69.17M
$67. 2M
$ 2.3M
$ 7.8M
• $77. 3M
[I]  1981 dollars,  undiscounted.

[2.J  Decrease in self  audit  rate.

[3]  Shown as negative, because these costs will increase slightly
with the 40% AQL.

[4]    Five   year   aggregate   sales  multiplied   by   the   per
vehicle/engine savings.

[5]  Not included as per discussion in text.
                         70

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Cash flow will.be improved by a  two  year delay in the purchase  of
SEA related  facilities and equipment.   (Deferred cash  investment
does in fact provide a small savings in  the form  of  an opportunity
cost,  but this will  not  be considered here.)  No emission  control
hardware cost: savings  are  expected,  as EPA expects  that when  pos-
sible   manufacturers  will  certify, their  1984  model  year  engines
with consideration to  the impact of  the  40 percent  AQL and SEA  on
the target emission  levels.  These  cash expenditure and cash  flow
savings are discussed below for  HDG  and HDD engines.

     (1)   Heavy-Duty Gasoline  Engines

     All 19.84  and 1985 model  year  costs  related to self  audits,
formal  EPA  SEA   tests,  and  increased  quality  control  will  be
saved.  As determined  in the 1984 final  rulemaking  economic  impact
analysis and shown in  Table IV-K these savings come to  $14.2  mil-
lion dollars  (1981  dollars).   In addition  to  this   real cost  sav-
ings,  delaying  the  implemention of  the EDE SEA  program will  im-
prove the manufacturers' cash flow  requirements.   For HDG  engines
the cash flow  savings  is  estimated  at $16.4 million 1981  dollars,
delayed from 1982-83 to 1984-85. [16]

     (2)   He a_vy_- Dutj^ JDie s e 1 Eng i ne s
     For the  1984  and 1985 model years,  cost  savings for  the  HDD
engine  industry  will occur  in  similar areas  as  for HDG  engines.
In  the economic  impact  analysis  supporting  the 1984  HDE  final
rulemaking  costs were  determined  in  these  areas.   As  shown  in
Table IV-K the savings  related to the  two year elimination of self
audits, EPA  formal SEA  tests,  and  quality  control  come  to  $11.9
million 1981  dollars.   In  addition, the delay  of  the investment in
facilities and equipment for SEA will  improve the  major  domestic
manufacturers' cash flow by  $21.1 million 1981 dollars.   The  delay
will allow  this  investment in 1984  and  1985  instead of  1982  and
I.y83.[17j   The  original  FRM  analysis assumed   that  the  smaller
domestic and  foreign  manufacturers would  allow their certification
facilities to double  as SEA facilities.   Thus  these manufacturers
will not  incur  the  cash  flow  savings as their  transient  certi-
fication facilities must be prepared  for  1985 model  year  certifi-
cation.

     c.    'Summary of the Enforcement Related Cost Implications

     (1)   Li ght-Duty Trucks

     The only part  of the enforcement  related proposals  affecting
LDTs is the relaxation  of  the AQL.  The  self -audit testing cost of
Table  IV-J,  $3.43 million  dollars,  represents a  cost  expenditure
savings.  The remaining  $63.78 million  dollars in emission control
system  costs  is  'primarily a consumer savings, although  some  small
manufacturer  savings  will occur  as  a result of  the  elimination of

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                                Table IV-K

                 Cost Savings from Delaying  Implementation
                 	of the Heavy-Duty Engine SEA Program   [1][2]

               Self        Formal  EPA     Quality          Facilities
              Audits [3]    SEA Tests [3]   Control [3][4]    &  Equipment  [5]
HDG Engines
HDD Engines
Total
$5010K
$4481K
$9.49M
$686K
$980K
$1.67M
$8490K
$6420K
$14.91M
$16.39M
$21.05M
$37.44M
[1J  1984 and 1985 model years.

[2]  1981 dollars, undiscounted.

[3]  Cash expenditure savings.

[4]  1984  and  1985 sales multiplied  times the  per  engine quality  control
cost.

[5j  Cash flow savings;  deferred  two years.

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the need for  short  term  investment  in the emission control system
components.

     (2)   Heavy-Duty Gasoline Engines

     All enforcement  related  aspects  of  the proposal  affect HDG
engines.  Cash expenditure  and  cash flow savings  will  occur  as a
result of the AQL relaxation  and  the  'delay  of  HDE SEA.   These are
summarized  by year and category  in Table IV-L in  1981 dollars.

     (3)   Heayy-Duty Diesel Engines

     The HDD  engine industry  is  affected by all  enforcement re-
lated proposed revisions.  The relaxation of the AQL and the  delay
of  HDE  SEA   will  provide  both  cash expenditure  and   cash  flow
savings for  the  industry.   The emission  control hardware savings
associated  with the  AQL  will  primarily benefit  the consumers, but
the manufacturers will  also see  a  small  savings as  they  will be
able  to forego   the  short-term  investment  in  emission  control
systems and  R&D.   The expenditure  and cash flow  savings  for the
proposed relaxation of  the  enforcement  provisions  are  shown in
Table IV-M by year and category in 1981 dollars.

C.   Total  Economic Impact of  the  Proposed Revisions

     Having now identifed the cost  savings related to the  proposed
changes to  the  HDE  CO  standard and  the  LDT/HDE enforcement pro-
visions, the  remaining task, is  to calculate the  final cost savings
impacts of the  entire proposal.  This will  be  done  for LDT, HDG
and HDD.  In  this analysis  we will determine the  cash  expenditure
savings, the  cash flow savings  and  the per vehicle/engine  purchase
and operating cost impacts.

     1.    Light^-Duty Trucks

     a.    Cash Expenditure Savings

     Since LDTs are affected  only by  the  AQL relaxation portion of
the proposal  the  major  savings  will be in  the  area  of   self  audit
testing.  EPA estimates  a  cash expenditure  savings of  about  $3.43
million dollars over the five  year period.

     b.    Consumer Cost Savings

     As a  result of  the relaxation  of  the AQL,  EPA  estimates a
consumer savings  of about  $3.87  per engine.   Over  the five year
period this sums to about $67.2 million dollars  (undiscounted).

     2.    Heavy-Duty Gasoline Engines
                            73

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                                                    Table IV-L
                                       Enforcement Related Cost Expenditure
                                         and Cash Flow Savings:  HDG Engines
1982
Self Audits [2]
Formal SEA
Testing [2]
Quality Control [2]
SEA Facilities $8194K
and Equipment [3]
Total $8194K
1983 1984
$2754K
$ 343K
$4281K
$8194K
$8194K fc7378K
1985
&2256K
$ 343K
$4209K
-
$6808K
1986 1987 1988
$886K $868K $849K
(-$ 86K) (-$ 80K) (-$ 80K)
- - -
_
$800K $788K $769K
Total
$ 7613K
$ 440K
$ 8490K
$16388K
Discounted
Total
$ 6769K
469K
8107K
18928K
[1]   1981  dollars,  undiscounted


[2]   Cash  Expenditure  Savings


[3j   Cash  Flow Savings.
                        > *

[4]   Discounted at  10  percent  to  January,  1984
Total Cash Expenditure Savings:  $15,345K [4]
Total Cash Flow Savings:         $18,928K [4j

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                                                           Table IV-M
CA
                                              Enforcement Related Cost Expenditure
                                                and Cash Flow Savings:  HDD Engines [I]

1982
Self Audits [2]
Formal SEA
Testing [2]
Quality Control [2]
SEA Facilities $10527K
and Equipment [3]
Total $10527K

1983 1984
J2367K
$ 490K

$3105K
$10527K

$10527K $5962K

1985 1986 1987 1988 Total
*2114K *900K *957K *1015K $ 7353K
$ 490K (-&129K) (-$129K) (-$135K) $ 587K

$3316K - $ 6421K
fc210b4K

J5920K $771K $828K $880K
Discounted
Total
$ 5445K
$ 640K

$ 6120K
$24317K


     [1]  1981 dollars,  undiscounted

     [2]  Cash Expenditure Savings.

     [3]  Cash Flow Savings.

     [4]  Discounted at  10 percent to January  1984.
Total Cash Expenditure Savings: $13205K
Total Cash Flow Savings:        $24317K

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     a.    Cash Expenditure Savings

     As  a  result  of  the  proposed  revisions,  HDG  engine  manu-
facturers will  accrue substantial  cash expenditure  savings.   As
detailed in Table IV-N these savings come from decreased  R&D/Tool-
ing costs,  decreased costs associated with the AQL  relaxation,  and
costs eliminated as a result of the delay of  the  implementation of
the HD SEA program.  Cash  expenditure savings sum to  $86.1  million
dollars (discounted).

     b.    Cash Flow Savings

     The major  cash  flow  savings  are  associated  with the  deferral
of the HD SEA  program.   As shown in Table IV-N  this  will  allow  a
two year deferral of the  capital  investment necessary to  construct
the necessary  SEA facilities.   The  total  cash   flow  savings  are
$18.9 million dollars (discounted).

     c .    Consumer Cost  Savings

     Purchasers of HDG vehicle  will  benefit  from both lower  first
price increases and lower operating  costs.

     (1)   Fir st^ Price Increase _ Shavings         :

     The first  price increase  will  vary in  the analysis  period.
Using the applicable data  from  Table  IV-B  (items:  1, 4,  and por-
tion  of  8)  plus  the $105  R&D/hardware  cost  discussed  previously
the 1984-85  first price  increase comes to $121.   The savings  is
$339 per engine.

     When SEA begins in 1986 the  first  price  increase  savings will
drop  to  $302.   The savings will  decrease  because  of  the  need  to
cover amortization  of  SEA  facilites, self  audit testing,  quality
control, and formal  EPA SEA testing.   The  savings  in the  1987-88
time  period  depend  upon  the  outcome  of  the  revision  process
applicable  to  the  1987  model  year  HDE emission  standards.   The
hardware  savings  could  range  from  approximately  the  same  as
expected  in 1986  to  virtually  zero   depending  on  the  standard
promulgated for 1987.   Since this decision has  not been  made,  we
will  conservatively  assume no hardware  savings  in  1987  and  1988.
Thus  the  only  savings in  this  year  will be  $3.50  related to the
AQL   relaxation.    The   components   of  these   savings   for ' the
appropriate years are shown in Table IV-0.
     ( 2 )   Qj^ejr^ing/Maint^ajienac^e Coasts

     Referring to  the  previous discussion,  these costs  would drop
by $34 per  vehicle beginning in 1984  as  a  result of  the  proposed
revisions and  the move  to non-catalyst  technology.   As  above  we
will assume no savings in 1987 and 1988

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                                                               Table IV-N
->J
                      1982

R&D/Tooling [2]     $30650K

SEA Facilities [3]  $ 8194K

Self Audits [2]

SEA Testing [2]        -

Quality Control [2]
                                                     Total Economic Savings  to  the
                                          Industry of  the Proposed Revisions:  HDG Engines [1]
 1983

$30650K

$ 8194K
                                                 1984
     Total                $38844K    $38844K     $7378K

     Total Cash Expenditure  Savings: $86,147K

     Total Cash Flow Only Savings:   $18,928K
           1985
$2754K .   $2256K

$ 343K    $ 343K

$4281K    $4209K
          $6808K
1986
          1987
1988
Total
                                                                      $886K
$800K
          $788K    $769K
Discounted
   Total  [4j
-
-
$868K $849K
(-$80K) (-$80K)
-
$61,300K
$16,388K
$ 7.613K
$ 440K
$ 8,490K
$70802K
$18928K
$ b769K
$ 469K
$ 8107K
      [1 ]  1981 dollars, undiscounted

      [2]  Cash Expenditure Savings

      [4]  Cash Flow Savings

      (5]  Discounted at 10 percent to January 1984.

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                            Table IV-0

           HDG Engine First Price Cost Savings  Components  [1][2]
SEA Facilities
Self Audits

ies
[3]
l*J
trol
ntrol
1984-1985
$ 16.52
1.22
7.61
15.05
$299. 00
1986
$ 0
-.31
3.81
0
$299.00
1987-1988
$ 0
-0.31
3.81
0
0
Hardware/R&D

     Total Savings:       $339.40         $302.50             $3.50
[Ij   Original costs  were  taken from Table V-LL of  the  "Regulatory
Analysis  and  Environmental  Impact  of  Final  Emission  Regulations
for 1984  and  Later Model  Year  Heavy-Duty Engines, December  1979,
U.S. EPA, OME1APC.

[2]   Original  costs  were inflated  at  8%  per  year  to  get  1981
dollars.  These figures .also include overhead  and profit.

[3]  SEA testing costs go up slightly as a result of the 40% AQL.

[4]  Average per engine costs  will  be  reduced  by about 50%  over
the 10% AQL audit rate of 0.4%.

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     3.    Heavy-Du ty Pi ej>e 1 Engines

     a.    Cash Expenditure Savings

     Heavy-duty diesel  engine manufacturers  should  gain  substan-
tial cash expenditure savings  as  a  result of the proposed changes
to the enforcement provisions.  As  shown in Table IV-M these  sav-
ings will occur in  lower self audit costs  and  elimination of SEA
testing and quality control costs  for two years.

     b.    Cash Flow Savings

     The major cash flow savings  occur as a result of the  two  year
delay of HD SEA.  As shown in  Table  IV-M, this will allow  delaying
this investment in SEA facilities  to  1984-1985 from 1982-1983.

     c.    First Price Increase Savings

     The  first price   increase  will  vary  through   the   analysis
period.  Beginning in  1984 the first  price  increase  savings  will
sum to about  $64  per engine.   The components of these savings are
taken from Table  IV-P.   Referring  to the same table, beginning,  in
1986 the per  engine  savings will drop  to $7.   This  is a result  of
the implementation of the SEA program for HDD engines.

     4.    Aggregate Savings

     a.    Cash Expenditure and Cash  Flow Savings to  the  Industry

     The  aggregate  savings to the  manufacturers is  comprised  of
the  cash expenditure  and  cash  flow  savings  for  each  group  of
vehicles/engines  affected.  These  two types  of  savings  are  shown
in  Table IV-Q  by year  for  each  vehicle/engine  group.   Both the
cash  expenditure  and  cash  flow  savings  are  large.    The un-
discounted  totals are  $95.6  million  dollars  and  $37.4  million
dollars  respectively.    If  these  savings  are   discounted,   their
present value in  1984 (the  first model year  of  production  affected
by  these  regulations)  is $102.7  million dollars for  the  cash ex-
penditure savings and $43.2 for the cash  flow savings.

     b.    Aggregate Savings to the Nation

     The best means  of  determining the net  impact on  the  consumers
and the  economy as  a whole is to express  the aggregate  cost  as a
function  of  the total  per  vehicle  lifetime savings.   This  allows
the inclusion of  overhead  and profit and hardware,  as well  as the
impact of  the changes  in operating  costs.  These per vehicle/ en-
gine impacts  at the consumer  level  are  shown  in  Table  IV-&.   If
the per  vehicle engine  savings are  multiplied  by the appropriate
sales  the aggregate  net impact on the economy  is found.  In  this
case the net  reduction  for  all three vehicle/engine groups sums  to
$449.4 million dollars.

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                            Table  IV-P

           HDD Engine First Price  Cost  Savings  Components  [1J[2J
SEA Facilities
Self Audits
ies
13]
I*]
.trol
(AQL Relaxation)
1984-1985
$34.14
2.18
8.87
15.05 .
3.45
$63.69
1986+
$ 0
-.55
4.43
0
3.45
$7.33
[1]  Original costs were  taken from Table V-LL of  the  "Regulatory
Analysis and  Environmental  Impact  of  Final  Emission  Regulations
for 1984 and  Later Model  Year  Heavy-Duty Engines,  December  1979,
U.S. EPA, CMSAPC.

|2j   Original  costs  were inflated  at 8%  per year  to  get  1981
dollars.  These figures also include overhead  and  profit.

[3j  SEA testing costs go up slightly as a result  of the 40%  AQL.
     Average  per  engine costs will  be reduced  by  about 50%  over
the 10% AQL audit rate of 0.4%.

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                                                    Table IV-Q

                                         Aggregate Savings to the Industry
Cash Expenditure Savings
LOT [2]
HDG [3 j
HDD [4J
HDG [5]
HDD [6]
1982 1983
$ 1.836K
$30,650K $30,650K
$30,650K $32,486K
1982 1983
$ 8.194K $ 8.194K
$10,527K $10,527K
$18,721K $18,721K
Undiscounted
1984 1985 1986 1987 1988 Total
319K
7,378K 6
5,962K 5
$13,659K $13
Undiscounted
Total
$16,388K
$21,054K
$37,442K
319K 319K 319K 319K $ 3.431K
,808K 800K 788K 769K $77,843K
,920K 771K 828K 880K $14,361K
,047K $1,890K $1,935K $1,968K $95,635K
Cash Flow Savings
Discounted
Total [1]
$18,928K
$24,317K
$43,245
Discounted
Total tij
$ 3-.350K .
$ 86.147K
$ 13.204K
S102.701K
[1]   10 percent  discount  to  January  1984
[2J   As per discussion in text
[3]   All but SEA Facilities,  Table  IV-N
14]   All but SEA Facilities,  Table  IV-M
15]   SEA Facilities,  Table IV-N
[6]   SEA Facilities,  Table IV-M

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                                   Table IV-R

                   Aggregate Savings to the Nation:   1984-1988
Grou£
LOT
HDG
HDD
Years
1984-88
1984-85
1986
1987-88
1984-85
1986-88
Average Savings
Sales[lj (First Price)[2]
17.37M
727,879
354,287
686,718
550,416
996,403
$ • 3.87
$339.40
302.50
$3.50
$ 63.69
$ 7.33
Average Savings Discounted
( Operating/Maint) Total [3]
$ 55. 6M
$34 $259. 5M
$34 . $98. 5M
$1.7M
$ 33. 4M
$ 0.7M
                                                                       $449.4M
[1]    Table  IV-A.
[2]    Text and Tables IV-0, P.
[3]    Discounted at 10 percent to January  1984.
                                82.

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                            Ref^erences

1.   See. "Regulatory  Analysis and  Environmental  Impact  of  Final
Emission  Regulatons  for  1984  and  Later  Model  Year  Light-Duty
Trucks," U.S. EPA, OMSAPC,  May 1980.

2.   See  "Regulatory  Analysis and  Environmental  Impact  of  Final
Emission  Regulations  for  1984 and   Later  Model  Year  Heavy-Duty
Engines," U.S. EPA, QMSAPC,  December  1979.

3.   Based on  the new  car  CPI for  1979  and 1980,  7.4% and  8.0%
respectively.

4.   EPA memo:  Tooling Cost  Calculations  for HDG Engine  Emission
Control Components.

5.   Several  HDG  engine models  use  automatic   chokes,  EGR,  EFE,
dual air pumps, etc.

6.   See Public Docket OMSAPC 78-4.

7.   Cost  Estimations   for  Emission   Control  Related   Compon-
ents/Systems  and  Cost  Methodology  Description,  EPA-460/3-78-002,
March 1978.

8.   Cost  Estimations  for  Emission  Control  Related  Components/
Systems  and  Cost  Methodology  Description:    Heavy-Duty   Trucks,
EPA-460/3-80-001,  February.1980.

9.   Cost figures  from  either the  public comments or  the  contract
reports  were inflated  at   8%  per  year  from the applicable  base
years of 1979 and 1977 respectively.

10.  EPA  memo:   Emission Control  System  Component  Cost  Calcula-
tions for HDG Engines.

11.  In  the  economic  analysis supporting  the 1984 HDE  FRM  the per
engine potential fuel savings was erroneously calculated using the
5.4  mpg  dynamometer  figure instead   of  the  9.9  mpg average  HDGE
road mileage  figure.   The  unleaded fuel  cost used here is  $1.40/
gallon.  See pages 125-127  of [2]  above.

12.  The labor anticipated  over  the  vehicle lifetime is 1  hour or
less.

13.  See  Public  Docket  CMSAPC 79-2,  Analysis   of  California  Two
Percent Audit Data.

14.  See Table V-AA of  [2]  above.

15.  See Table V-BB of  [2]  above.

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                       References (cont'd)




16.   See Table V-T of  [2]  above,  and  factor  in  inflation.




17.   See Table V-U of  [2]  above,  and  factor  in  inflation.
                     SH

-------