US EPA adopts final NCP rule, allows Navistar to sell non-compliant engines

31 August 2012

The US Environmental Protection Agency (EPA) adopted yesterday a final nonconformance penalties (NCPs) rule for heavy heavy-duty diesel engines. The rule allows manufacturers of heavy-duty diesel engines unable to meet the US EPA 2010 NOx emission standard to produce and sell nonconforming engines upon payment of monetary penalties.

Navistar is expected to be the only manufacturer to take advantage of the NCP program. Navistar non-SCR engines have been certified to NOx emission levels of around 0.40-0.50 g/bhp-hr. The difference from the 0.20 g/bhp-hr emission standards was covered by emission credits that now have run out.

In January, 2012 EPA issued an interim NCP rule allowing Navistar to continue sales of nonconforming engines. The interim NCP rule was challenged by Navistar competitors and—in June 2012—vacated by court on the grounds that EPA took the action without providing formal notice or an opportunity for public comment. The final rule adopted yesterday makes NCPs available again for manufacturers of heavy-duty diesel engines.

Under the final rule, the nonconformance penalties have been increased compared to the interim rule. For heavy heavy-duty diesel engines, the penalty increases in a linear fashion as a function of NOx emission level, from zero at 0.20 g NOx to $3,775 at 0.50 g NOx. The maximum penalty under the interim rule was $1,919 at 0.50 g NOx. The NCP program is applicable to model year 2012 and later engines certified to NOx emission levels above the 0.20 g standard but not higher than 0.50 g/bhp-hr.

The final rule is limited to heavy heavy-duty engines, while the interim rule also allowed penalties for nonconforming medium heavy-duty engines. EPA proposed NCPs for medium heavy-duty diesel engines, but the agency has not taken final action at this time because it has not completed the review of data and comments regarding medium duty engines.

Navistar announced plans to introduce urea-SCR emission systems on their engines beginning in 2013 to comply with the 0.20 g NOx emission standard, and to offer Cummins engines. The SCR systems for Navistar engines will be supplied by Cummins Emission Solutions.

Source: US EPA