WASHINGTON D.C. — Michael Cross, vice president and general manager – Fleetguard Emission Solutions, expressed Cummins’ (NYSE:CMI) strong support for S.1265, the Diesel Emissions Reduction Act of 2005, in testimony before a U.S. Senate subcommittee today.
The Diesel Emissions Reduction Act addresses the issue of emissions from the older engines that are currently in service and is an effective complement to EPA’s rules for on- and off-road diesel engines. The legislation recognizes the clean air challenges ahead of states and communities and puts in place a mandate-free and flexible system to help address these challenges.
The Act provides federal and state incentives to create engine retrofit or replacement programs. The efforts can range from retrofitting engine exhaust systems with aftertreatment devices to installing a re-manufactured engine built to more stringent emissions standards to installing a new engine into existing vehicles. All have been shown to lead to an immediate, and often significant, reduction in NOx and/or PM emissions.
This legislation was crafted in a process, which included the diesel industry and many of the major national environmental groups. Cross said, “Cummins truly enjoyed the months of hard work with our colleagues in the diesel industry and the environmental community. Our coalition’s efforts on the Diesel Emissions Reduction Act should serve as a model for future environmental initiatives.”
In June, the legislation passed the Senate by a vote of 92-1 as an amendment to the Senate Energy Bill. It authorizes $1 billion over a five-year-period for national and state-level grant and loan programs to promote the reduction of diesel emissions. The legislation is championed by Sens. George Voinovich (R-Ohio), Thomas Carper (D-Delaware), James Inhofe (R-Oklahoma), James Jeffords (I-Vermont), Lamar Alexander (R-Tennessee), and Hillary Clinton (D-New York) – among others.
Seventy percent of the funds would be distributed by the EPA; 20 percent would go directly to states to develop retrofit programs and the remaining 10 percent would be made available to states as incentives for them to match federal dollars spent on these programs.
Cross also told members of the Senate Subcommittee on Clean Air, Climate Change and Nuclear Safety that ultra-low sulfur diesel fuel standards set to take effect next year are essential to meeting stringent EPA emissions regulations in 2007 and 2010. Those regulations will reduce the amount of oxides of nitrogen (NOx) and particulate matter (PM) produced by new on-highway diesel engines by 90 percent from 2004 levels.
Ultra-low sulfur fuel – diesel fuel with a sulfur content of 15 parts per million, compared to the current standard of 500 parts per million – also will make it possible to realize the full benefits of the Diesel Emissions Reduction Act and achieve significant emission reductions in older diesel-powered engines, Cross said.
Cross also stressed the importance of ultra-low sulfur diesel fuel to both the effectiveness of the Diesel Emissions Reduction Act and the ability of engine manufacturers to meet 2007 and 2010 EPA emission requirements.
Cummins was the first diesel engine maker to offer a full line of on-highway truck engines to meet the current EPA requirements, which went into effect in October 2002. Cummins and other manufacturers have invested billions of dollars to create cleaner-burning and more fuel-efficient engines – and will continue to invest heavily to meet future requirements, Cross told subcommittee members.
The EPA recently offered a 45-day extension to the transition period for introduction of ultra-low sulfur diesel fuel to Oct. 15, 2006. With the extension, Cummins believes that every party involved in the 2007 emissions regulations will have had ample time to comply, Cross told subcommittee members.
“Cummins requests that Congress make every effort to ensure these ultra-low sulfur diesel standards are not compromised,” Cross told the subcommittee.
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