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       engines, have led us to consider additional emission controls based on the high-effi-
       ciency aftertreatment technologies that will soon be in use by highway and nonroad
       engines.
       Need to Reduce Locomotive and  Marine  Diesel

       Emissions
       Locomotive and marine diesel engines contribute significantly to air pollution in many
       of our nation's cities and towns. In the coming decades, these engines are expected to
       account for an even greater share of overall emissions as other emission control programs
       take effects for cars, trucks, and other nonroad emissions sources. EPA estimates that,
       without the emission reductions from today's proposal,  by 2030 locomotive and marine
       diesel engines would contribute more than 65 percent of national mobile source diesel
       PM25 emissions and 35 percent of national mobile source NOx emissions, a key precur-
       sor to ozone and secondary PM formation.

       Recent air quality data show that about 157 million people live in areas that violate air
       quality standards for ground-level ozone, also called smog and about 88 million people
       live in areas that violate air quality standards from PM. These pollutants contribute to
       serious public health problems that include premature mortality, aggravation of respira-
       tory and cardiovascular disease, aggravation of existing asthma, acute respiratory symp-
       toms and chronic bronchitis. EPA believes that diesel exhaust is likely to be carcino-
       genic to humans by inhalation. Children, people with heart and lung diseases, and the
       elderly are thought to be most at risk.

       Locomotive and marine diesel emissions reductions are expected to benefit those who
       live, work, or recreate in and along our nation's coastal areas, rivers, ports, and rail lines.
       Such reductions are expected to have beneficial impacts on visibility impairment and
       regional haze, as well as reducing crop damage and acid rain.
       Description of Engines Covered
       The proposed requirements would cover all locomotives and many marine diesel engines
       already subject to EPA emission standards, as follows:

              •  Locomotives: With limited exceptions, the regulations would apply to all
                 line-haul, passenger, and switch locomotives that operate extensively within
                 the United States, including newly manufactured locomotives and remanu-
                 factured locomotives that were originally manufactured after 1972. The pri-
                 mary exception is that the new remanufacturing standards would not apply to
                 the existing fleets of locomotives owned by very small railroads.

              •  Marine Diesel Engines: The regulations would apply to newly-built marine
                 diesel engines with displacements less than 30 liters per cylinder installed


Locomotive and Marine Diesel Engines Proposed Rule                                         2

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           on vessels flagged or registered in the United States. These are commonly referred
           to as marine diesel engines and are divided into three categories for the purposes of
           EPA's standards. Category 1 are engines above 50 horsepower (hp) and up to 5 liters
           per cylinder displacement. Category 2 are engines from 5 to 30 liters per cylinder.
           Category 3 are engines at or above 30 liters per cylinder. EPA is proposing to change
           the definition of Category 1 and Category 2 engines to reflect a 7 liter per cylinder
           cut-off.

           Marine Diesel engines are used in commercial, recreation, and auxiliary power appli-
           cations. Commercial propulsion applications range from tug boats to Great Lakes
           freighters. Recreational propulsion applications range from sailboats to super-yachts.
           EPA is also  requesting comments on whether the Agency should tighten  emis-
           sion standards for certain existing marine diesel engines when they are remanufac-
           tured. Marine diesel engines at or above 30 liters per cylinder displacement are not
           included in this proposal; these engines, which are typically used for propulsion on
           ocean-going vessels, will be addressed in a separate EPA rulemaking.
 Exhaust  Emissions Standards
 The proposal consists of a three-part emission control.

 First, EPA is proposing to adopt more stringent standards for existing locomotives when they are
 remanufactured. These standards would take effect as soon as certified remanufacture systems are
 available (as early as 2008), but no later than 2010 (2013 for Tier 2 locomotives). EPA is also
 requesting comment on similar requirements for certain existing marine diesel engines when
 they are remanufactured.

 Second, EPA is proposing near-term emission standards, referred to as Tier 3 standards, for
 newly-built locomotive and marine engines. These standards would reflect the application of
 technologies to reduce engine-out PM and NOx emissions and would phase in starting in 2009.

 Third, EPA is  proposing long-term emissions standards, referred to as Tier 4, for newly-built
 locomotives and marine diesel engines. These standards are based on the application of high-
 efficiency catalytic aftertreatment technology and would phase in beginning in 2014 for marine
 diesel engines and 2015 for locomotives. These  standards are enabled by the availability of clean
 diesel fuel with sulfur content capped at 15 parts per million, which will be available beginning
 by 2012. These marine Tier 4 engine standards would apply only to commercial marine diesel
 engines above 800 hp and recreational marine diesel engines above 2,000 hp.

 The proposal would result in PM reductions of about 90 percent and NOx reductions of about
 80 percent from engines meeting these standards, compared to engines meeting the current
 standards. The proposed standards would also yield sizeable reductions in emissions of HC,  CO,
 and other air toxics.
Locomotive and Marine Diesel Engines Proposed Rule

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 Program Costs
 EPA estimates the annual cost of complying with the proposed program to be about $600 mil-
 lion in 2030. The average price in 2030 of a locomotive is expected to increase by less than
 three percent (about $49,000 per unit) as a result of the proposed standards. In the marine mar-
 kets, the expected impacts in 2030 are different for engines above and below 800 hp. Increases
 in engine and vessel prices for commercial engines below 800 hp and recreational engines are
 expected to be small (less than one percent). The average price of a commercial marine diesel
 engine above 800 hp is expected to increase by about 8.5 percent for Category 1 engines and
 about 19 percent for Category 2 engines. The average price of a marine vessel using these larger
 engines is expected to increase much less, about  1 percent for vessels using Category 1 engines
 above 800 hp (about $16,000) and 3.6 percent for vessels using Category 2 engines above 800
 hp (about $142,000). The expected impacts on prices in the locomotive and marine transporta-
 tion service market would be less than one percent.

 Program Benefits
 These proposed standards would result in substantial benefits to public health and welfare and
 to the environment. EPA estimates that by 2030 this comprehensive emission control program
 would reduce annual emissions of NOx and PM by 765,000 and 28,000 tons, respectively, and
 the magnitude of these reductions would continue to grow well beyond 2030. EPA estimates
 that the monetized health benefits of this rule in 2030 would be approximately $12 billion. The
 value of the benefits would be much greater than the projected program cost of $600 million per
 year. By 2030, the rule would annually prevent 1,500 premature mortalities; over 1,100 hospital-
 izations; 170,000 work days lost; and 1,000,000 minor restricted-activity days and other quantifi-
 able benefits.
Locomotive and Marine Diesel Engines Proposed Rule

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G
u
IDJO
CU
              Figure  1 Projected NOx Emissions (tons per year with and without the Proposed
              New Controls
                 2.000,000
1,800,000 -

1.600,000 -

1,400,000 -

1,200,000-

1,000,000 -

 aoo.ooo -

 600,000 -

 400,000

 200,000 -
                        0 4
                                                                               WiKtcurren? standards
                                                                               Wfih proposed standards
       2005
2010
2015
2020
2025
2030
2035
2Q4Q
                    70,000
                    60,000
                    50,000  	-Nt-—^^
                    40,000
                    30,000
                    20,000
                    10,000
                                                               Wrth current standards
                                                               Wrtb proposed slandards
                                                  2(325
                                           2C30
                                           2W5
                                           20«
              Figure 2 Projected PM2.5 Emissions (tons per year) with and without the Proposed
              New Controls
           Locomotive and Marine Diesel Engines Proposed Rule

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 Public Participation Opportunities
 EPA welcomes your comments on this rule. Comments will be accepted for 90 days beginning
 when this proposal is published in the Federal Register. All comments should be identified by
 Docket ID No. EPA-HQ-OAR-2003-0190 and submitted by one of the following methods:

       Internet: www.regulations. gov
       E-mail: A-and-R-Docket@epa.gov
       Mail:
             Environmental Protection Agency
             Air and Radiation Docket and Information Center (6102T)
             1200 Pennsylvania Avenue NW
             Washington, DC 20460
       Hand Delivery:
             EPA West building
             EPA Docket Center (Room 3340)
             1301 Constitution Avenue NW
             Washington, DC

 A public hearing will also be held in Seattle, Washington, and Chicago, Illinois, after publica-
 tion of the proposed rule in the Federal Register. Additional information about the hearing will
 be printed in the Federal Register.
 For More Information
 You can access the rule and related documents on EPA's Office of Transportation and Air Qual-
 ity (OTAQ) Web site at:

       www. epa. go v/o tag/marine .htm or www.epa.gov/otaq/locomotv.htm

 For more information on this rule, please contact the Assessment and Standards Division
 information line at:

       U.S. Environmental Protection Agency
       Office of Transportation and Air Quality
       2000 Traverwood Drive
       Ann Arbor, MI 48105
       Voicemail: (734) 214-4636
       E-mail: asdinfo@epa.gov
Locomotive and Marine Diesel Engines Proposed Rule

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