Caterpillar Confidential: Green Caterpillar Engine Conference November 2009 Gas Compression NPI Update Jim Cue and Vic Sheldon NSPS, NESHAP & Emissions

Caterpillar Confidential: Green

Caterpillar Engine Conference

November 2009

Gas Compression NPI UpdateJim Cue and Vic Sheldon

NSPS, NESHAP &Emissions Section Only.


Agenda

Emission Regulations – Review of NSPS & regional regulations Gas Generator Sets for Oil and Gas Applications Natural Gas Engine Product Line Overview Break 95 – 220 hp Gas Engine Update (G3300) 215 – 637 hp Gas Engine Update (G3400 – CG137) 524 – 1725 hp Gas Engine Update (G3500 Options) 6000 – 8180 hp Gas Engine Update (GCM34) Gas Engine Rating Pro (GERP) Update (Optional Attendance)


Agenda

Emission Regulations – Review of NSPS & regional regulations Gas Generator Sets for Oil and Gas Applications Natural Gas Engine Product Line Overview Break 95 – 220 hp Gas Engine Update (G3300) 215 – 637 hp Gas Engine Update (G3400 – CG137) 524 – 1725 hp Gas Engine Update (G3500 Options) 6000 – 8180 hp Gas Engine Update (GCM34) Gas Engine Rating Pro (GERP) Update (Optional Attendance)


Emissions Regulations – NSPS and regional regulations National

– EPA defines minimum standards and rules for the U.S.• New Source Performance Standards, Nonroad Source Rules• National Air Quality Attainment Requirements

States or Local– State Specific Standards (at least as strict as EPA)

• Permits– Critical Area Rules: Non-attainment, Parks, BLM etc.


National - SI NSPS and NESHAP SI NSPS : (Stationary) Spark Ignited New Source

Performance Standards– Published January ’08, Effective March ’08.– 1st New engine requirements retroactive to July ‘07.– 1st Remanufactured or Modified (RM) engine requirements

retroactive to June ’06.– Applies to new, reconstructed or modified stationary

engines.– Based on the date of engine manufacture, reconstruction

or modification, not the date of installation.


National - SI NSPS Emissions Standards

– There are alternate ppm values that may be advantageous depending on engine efficiency.

– There are standards for other applications as well. (ie. Landfill, etc.)

NOx / CO / VOC (g/hp-hr) 200612-Jun 1-Jul 1-Jul 1-Jul

>= 1350 HP 3 / 4 / 1 RM 2 / 4 / 1 1 / 2 / 0.7RB Only - 500 - 1349 HP 3 / 4 / 1 RM 2 / 4 / 1 1 / 2 / 0.7LB Only - 500 - 1349 HP 3 / 4 / 1 RM 2 / 4 / 1 1 / 2 / 0.7

100 - 499 HP 3 / 4 / 1 RM 2 / 4 / 1 1 / 2 / 0.726 - 99 HP 3 / 5 / 1 RM 40 CFR 1048.101 c, cert not required

<=25 HP Part 90 emiss. levels RM Manditory Certification via Part 90

EPA SI NSPS Engine Emissions Standards for RB NG, LB NG & LB LPGby Engine Build Date

20112007 2008 2009 2010


National - NESHAP and SI NSPS NESHAP : National Emissions Standards for

Hazardous Air Pollutants– Update to existing rule published January ’08, Effective

March ’08.– Existing requirements back to ’02. – Applies to new or reconstructed stationary engines.

• Are working on applying rule to all existing stationary engines.– Newly regulated engines only have to meet SI NSPS.


NESHAP Notice of Proposed Rule Making

National Emission Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines; Proposed Rule change.– Would change 40 CFR 63, subpart ZZZZ

Regulates all previously unregulated SI and CI existing and new stationary engines.– Intended to drive the use of Catalysts – Adds Startup, Shutdown and Malfunction Requirements– Adds Mandatory Maintenance Requirements

Over 180 comments were submitted.




NESHAP Notice of Proposed Rule Making HAPs - ~188 regulated compounds

– Represented by a surrogate: Typically Formaldehyde, CO or VOC

Major Source – @ site, 10 tons/yr single HAP, or 25 tons/yr all HAPs

Area Source – Anything that is not a Major Source

SS SSM SS SSM SS SSM SS SSM

>=500 hp P P P P

<500 hp P P P P

SS Steady StateSSM Startup, Shutdown & Malfunction

Already regulated under existing NESHAP.P Proposed to be regulated under new NESHAP changes.

Not directly regulated, but steady state requirements apply as written.

At Major Sources At Area Sources

New Existing New Existing






Example of Proposed NESHAP Ruling– G3406 NA Engine purchased in 1996

– 215 bhp at 1800 rpm Rich Burn

– Area Source Compression site anywhere in the USA

– Requires change from Standard “Best Efficiency” to Catalytic setting

– Normal operation

– 40CFR60 JJJJ

– 40CFR63.6590c

– Startup, Shutdown & Malfunction


State Emissions Highlights

– Colorado, East Slope (Denver Area) Nonattainment

– Wyoming, Sublette County

– New Mexico, Aftertreatment Permits

– Texas, HGB Nonattainment

– Regional Regulation Activity


Colorado, East Slope (Denver Area) Non-attainment Area

The Denver area did not meet the federal 8 hour Ozone requirements– Colorado submitted a State

Implementation Plan (SIP) that shows compliance by 2012


Colorado, East Slope (Denver Area) Non-attainment Area

New Rule– New, modified or relocated-into-the-state SI ICE must

meet the SI NSPS emissions standards in place when the installation occurs.

– Existing RB ICE >500 hp must have 3 way catalysts, and Air/Fuel controllers by May 1, 2010.

– Existing LB ICE >500 hp must have oxidation catalysts by May 1, 2010, unless they are built before June 1, 2004 and the retrofit costs more than $5000/ton VOC.

– Engines regulated under 40 CFR 60, or operating under MACT or BACT requirements are excluded.


New Mexico Changes “Notice of Intent” Permit Policy

– Previously did not count aftertreatment in their consideration of “potential emission rate”.

– Aftertreatment used in meeting the CI NSPS, SI NSPS or NESHAP will now be accepted.

– Limits the number of engines that need to go through the full air permit process.

New Mexico


Wyoming Interim Permit Policy in

Sublette County– 1 Measurement > Ambient

NOx standard– Effectively caps VOC and

NOx Emissions– Requires reduction of 1.5:1

for VOC, and 1.1:1 for NOx Still Working on Permanent

Measures– Gas engines to replace

diesel engines in drill rigs– SCR in diesel drilling

application– Regulation of Diesel Engines

as Stationary


Texas, HGB Nonattainment

The Houston Area has been redesignated as a Severe Nonattainment area.– SIP update by 4/15/10.– Mandatory CAA

compliance by 6/15/19– New rules for engines in

the area likely.

HGB – Houston-Galveston-Brazoria


Regional Regulation Activity Marcellus Shale

– Just now evaluating potential air quality impacts.

– Initial focus is on limiting drilling emissions.

Oklahoma & Arkansas – SI NSPS is enough for

now.

Four Corners Task Force – National engine emission rules will

improve air quality without other measures.

– Adding 3-way catalysts to existing RB engines is the only engine measure that showed other significant improvement.


Key Summary Points Emission Regulations – Review of NSPS & regional regulations National Regulations

– NSPS• Applies to every new engine• Based on born on date• Next key date is July 1st, 2010

– NESHAP• Proposed plan has not been finalized• Based on start up date• Next key date is February 10th, 2010

States or Local– Typically more strict than National Regulations– Non – Attainment Areas


Questions?


Back Up Slides


Information contained in this publication may be considered confidential.Discretion is recommended when distributing.

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as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

LESWXXXX-00 (11/09) 2009 CaterpillarAll rights reserved.

Documents

Caterpillar Confidential: Green Caterpillar Engine Conference November 2009 Gas Compression NPI Update Jim Cue and Vic Sheldon NSPS, NESHAP & Emissions