EPA Proposal for Control of Emissions
from New  Marine Compression-
Ignition Engines at or Above 30 Liters
Per Cylinder
    The U.S. Environmental Protection Agency (EPA) is proposing
    more stringent exhaust emission standards for the largest marine
diesel engines used for propulsion on oceangoing vessels (called Cat'
egory 3 engines).  These Clean Air Act standards are part of a co-
ordinated strategy to address emissions from all oceangoing vessels
that affect U.S. air quality. EPA's coordinated strategy also includes
implementation of the international emission standards for marine
engines and their fuels contained in Annex VI to the International
Convention on the Prevention of Pollution from Ships (MARPOL
Annex VI). The strategy also includes designation of U.S. coasts as
an Emission Control Area through an amendment to MARPOL An-
nex VI.  The proposed standards represent another milestone in EPA's
ongoing National Clean Diesel Campaign to reduce harmful emissions
from diesel engines of all types.
Current Clean Air Act (CAA) standards for new Category 3 compression-ignition
marine engines (also called marine diesel engines) at or above 30 liters per cylinder
displacement are found at 40 CFR Part 94, and have been in effect since January
2004 (68 FR 9745, February 28, 2003). These standards are equivalent to the cur-
United States
Environmental Protection
                              Office of Transportation and Air Quality
                                                   June 2009

rent international standards for marine engines contained in MARPOL Annex VI.  These
standards rely on engine based technologies to reduce exhaust emissions of nitrogen oxides
(NOx). EPA is proposing additional emission control standards for these engines because of the
opportunity to achieve significant public health benefits, and the improved feasibility of apply-
ing high efficiency after'treatment technologies to these engines,

EPA's controls for the sulfur content of marine distillate fuel have been in effect since July 2007
(69 FR 38957, June 29, 2004).  These requirements apply to fuel produced or offered for sale in
the United States and apply to distillate grades DMX, DMA, and their equivalents.  While EPA
has not adopted fuel sulfur limits for residual fuel under the CAA, the MARPOL Annex VI fuel
sulfur limits apply to marine fuel oil used by any vessel beginning in January 2009. MARPOL
Annex VI contains two sets of fuel sulfur limits, consisting of a global cap on fuel sulfur levels
and regional requirements for designated Emission Control Areas (EGAs) that set the maximum
content of fuel that can be used by vessels while operating in those areas. The United States
ratified Annex VI in October 2008, and the requirements became enforceable through the Act
to Prevent Pollution from Ships (APPS) in January 2009.

MARPOL Annex VI was recently amended to add new tiers of engine NOx emission standards
and fuel sulfur limits. The new standards are similar to those advanced by the United  States
during negotiations to revise the international standards. The amendments consist of a two part
program, with stringent global NOx and fuel sulfur standards and additional, more stringent
NOx and fuel sulfur controls that apply in designated EGAs,
The Need to Reduce Emissions from Category 3 Marine Diesel Engines
Category 3 marine diesel engines are significant mobile source emitters. Category 3 marine
diesel engines being produced today must meet relatively modest emission requirements and
therefore generate significant emissions of fine particulate matter (PM2.5), NOx and sulfur
oxides (SOx) that contribute to nonattainment of the National Ambient Air Quality Standards
for PM2.5 and ozone. These engines also emit hydrocarbons (HC), carbon monoxide (CO), and
hazardous air pollutants or air toxics that are associated with adverse health effects.  Emissions
from these engines also cause harm to public welfare, and contribute to visibility impairment
and other detrimental environmental impacts across the United States,

Air pollution from large marine diesel engines affects not just populations living near ports and
coastlines, but also those living hundreds of miles inland. These engines are significant con-
tributors to our national mobile source emission inventory and their contribution is expected to
grow in the future. Without further action, by 2030, NOx emissions from ships are projected to
more than double, growing to 2.1 million tons a year, while annual PM2.5 emissions are expect'
ed to almost triple to  170,000 tons.

When people breathe this polluted air, their health is adversely affected leading to lost produc-
tivity due to increased illnesses, hospitalizations and even premature deaths. EPA believes that
diesel exhaust is likely to be carcinogenic to humans by inhalation. Children, people with heart
and lung diseases, and the elderly are thought to be most at risk.  Reducing emissions from these

large marine diesel engines will lead to significant public health benefits and will help states and
localities attain and maintain PM and ozone National Ambient Air Quality Standards,
Program to Address oceangoing Vessel Emissions
EPA's coordinated strategy to address emissions from oceangoing vessels consists of the standards
being proposed in today's action, a separate action for EGA designation for U.S. coasts, and
implementation of MARPOL Annex VI through APPS. We are also considering a Voluntary
Marine Verification Program to address emissions from the legacy fleet of existing vessels.
New Clean Air Act Standards for Category 3 Engines
EPA is proposing to revise the CAA engine program to include two additional tiers of NOx
standards for new Category 3 marine diesel engines installed on vessels flagged or registered in
the United States. The proposed near-term Tier 2 standards for newly built engines would apply
beginning in 2011 and would require more efficient use of current engine technologies, includ-
ing engine timing, engine cooling, and advanced computer controls. The Tier 2 standards
would result in a 15 to 25 percent NOx reduction below the current Tier 1 levels.  The proposed
long-term Tier 3 standards would apply beginning in 2016 and would require the use of high ef-
ficiency after treatment technology such as selective catalytic reduction to achieve NOx reduc-
tions 80 percent below the current levels.

In addition to the NOx emission limits, EPA is proposing standards for emissions of HC and
CO from new Category 3 engines. EPA is not proposing to set a standard for PM emissions for
Category 3 engines. However, significant PM emissions benefits will be achieved through the
EGA fuel sulfur requirements that will apply to ships that operate in areas that affect U.S. air
quality.  EPA is also proposing to require engine manufacturers to measure and report PM emis-

Finally, EPA is proposing a change to the diesel fuel program that would forbid the production
and sale of marine fuel oil above 1,000 ppm sulfur for use in the waters within a U.S. EGA and
internal U.S. waters, and allow for the production and sale of 1,000 ppm sulfur fuel for use in
Category 3 marine vessels.
ECA Designation
On March 27, 2009, the U.S. and Canadian Governments submitted a proposal to amend
MARPOL Annex VI to designate North American coastal waters as an EGA.1 ECA designation
would ensure that ships that affect U.S. air quality meet stringent NOx and fuel sulfur require-
ments while operating within 200 nautical miles of U.S. coasts.
Annex VI Implementation
The United States became a party to MARPOL Annex VI by submitting its instrument of
ratification to the International Maritime Organization (IMO) on October 8, 2008.  This was

preceded by the President signing into law the Maritime Pollution Prevention Act of 2008
(Public Law 110-280) on July 21, 2008, that contains amendments to the Act to Prevent Pollu-
tion from Ships (APPS). (33 USC 1901 et seq.) These APPS amendments require compliance
with all aspects of Annex VI by all persons subject to the engine and vessel requirements of
Annex VI. The amendments also authorize the United States Coast Guard and EPA to enforce
the provisions of Annex VI against domestic and foreign vessels and to develop implementing
regulations, as necessary. In addition, APPS gives EPA sole authority to certify engines installed
on U.S. vessels to the Annex VI requirements. EPA is proposing regulations to implement sev-
eral aspects of the Annex VI engine and fuel regulations, under that APPS authority.
Program Costs
The estimated cost of implementing the coordinated strategy is approximately $1.85 billion in
2020, increasing to $3.11 billion in 2030. Of the 2020 costs, nearly 86 percent or $1.64 billion
are attributable to the use of higher-cost lower-sulfur fuel in the proposed EGA.  The total op-
erational cost is estimated to be $1.82 billion in 2020. The cost to apply engine controls to U.S.
flagged vessels are expected to be $32.7 million in 2020,  increasing to $48.5 million in 2030 as
more ships are built to comply with Annex VI Tier III NOx limits.

When attributed by pollutant, at a net present value of 3 percent from 2010 through 2040, the
NOx controls are expected to cost about $510 per ton of NOx reduced, SOx controls are ex-
pected to cost about $930 per ton of SOx reduced, and the PM controls are expected to cost
about $8,600 per ton of PM reduced. These costs are comparable to our other recently adopted
mobile source programs, and it is one of the most cost effective programs in terms of NOx and
PM reductions when compared to recent mobile and stationary programs.  These costs are
expected to be completely passed on to the consumers of ocean transportation. The impacts
of these costs on society are estimated to be minimal, resulting in a small increase in the goods
transported.  For example, EPA estimates it will result in an increase of about $0.01 for a pair  of
tennis shoes, and about $0.03 for a bushel of grain.
Program Benefits
By 2030, this coordinated strategy to address emissions from oceangoing vessels is expected to
reduce annual emissions of NOx in the United States by about 1.2 million tons and particulate
matter (PM) emissions by about 143,000 tons. When fully implemented, the coordinated strat-
egy will reduce NOx emissions by 80 percent and PM emissions by 85 percent, compared to the
current limits applicable to these engines. By 2030, the coordinated strategy is expected to yield
significant health and welfare benefits, annually preventing between 13,000 and 33,000 prema-
ture deaths, 1,500,000 work days lost, and 10,000,000 minor restricted activity days.

The monetized health benefits are projected to range from $110 billion to $280 billion, assum-
ing a 3 percent discount rate, or between $100 billion and $260 billion, assuming a 7 percent
discount rate. These estimated benefits exceed the projected costs by a ratio of at least 30:1,

Public Participation Opportunities
Comments will be accepted beginning when this Proposed Rule is published in the Federal Reg-
ister. Additionally, public hearings will be held on August 4, 2009 in New York, NY and August
6, 2009 in Long Beach, CA, at which additional comments will be accepted.  For information
on how to submit written comments or how to sign up to speak at a hearing, please see the
Federal Register Notice. All comments should be identified by Docket ID No. EPA-HQ-OAR-
2007-0121 and submitted by one of the following methods:

      Internet: www.regulations.gov
      E-mail: A-and-R-Docket@epa.gov
          Air and Radiation Docket and Information Center
          U.S. Environmental Protection Agency
          Mailcode 6102T
          1200 Pennsylvania Ave., NW
          Washington, DC 20460

      Hand Delivery:
          EPA Docket Center
          3334 EPA West Building
          1301 Constitution Ave., NW
          Washington, DC
For More Information
You can access the Notice of Proposed Rulemaking and other documents related to our coordi-
nated strategy for oceangoing vessels electronically on the EPA's Office of Transportation and
Air Quality web site at:

For more information, please contact the Assessment and Standards Division at:

       Assessment and Standards Division
       Office of Transportation and Air Quality
       U.S. Environmental Protection Agency
       2000 Traverwood Dr.
       Ann Arbor, MI 48105
       Phone: 734-214-4636
       E-Mail: asdinfo@epa.gov

1 Proposal to Designate an Emission Control Area for Nitrogen Oxides, Sulphur Oxides and
Particulate Matter.  Submitted by the United States and Canada. IMO Document MEPC59/6/5,
27 March, 2009. A copy of this document can be found at http://www.epa.gov/otaq/regs/non-