Supply Chain News / Green Matters / Ground
Green Matters

Navistar Comments on EPA Non-Conformance Penalties

September 4, 2012

In a statement, the U.S. Environmental Protection Agency (EPA) announced it is adopting nonconformance penalties (NCPs) for heavy heavy-duty diesel engines that can be used by manufacturers of heavy-duty diesel engines unable to meet the current oxides of nitrogen (NOx) emission standard. These penalties, which are assessed on a per-engine basis, allow a manufacturer to produce and sell nonconforming engines upon payment of penalties. The actual penalties reflect how close the engines are to meeting the standard – the cleaner the engines are, the lower the penalties will be.

Troy Clarke, Navistar president and chief operating officer, commented “We are pleased that the U.S. Environmental Protection Agency (EPA) has issued the Final Rule for nonconformance penalties (NCPs) for on-highway heavy heavy-duty diesel engines. We can now provide our dealers and customers with clarity and certainty as we transition to our clean engine technology and [we] look forward to utilizing the Final Rule as needed. Implementation of the Final NCP Rule will have no impact on our vehicles previously certified by the EPA under the Interim NCP Rule.”

EPA said it is establishing NOx NCPs for 2012 and later highway heavy heavy-duty diesel engines. These are the engines used in the largest highway trucks and buses. The standard for these engines is 0.20 grams NOx per brake-horsepower-hour (g/hp-hr).

The actual penalties that a manufacturer would pay for each non-complying engine are determined by formulas that already exist in the federal regulations, said EPA. The Final Rule specifies certain parameters that determine the amount a manufacturer must pay, when used in these formulas, along with the emissions of the engine.

Key parameters that determine the NCP a manufacturer must pay are EPA’s estimated cost of compliance for a near worst-case engine and the degree to which the engine exceeds the emission standard (as measured from production engines). Engine emissions may not exceed an upper limit designated in the regulations. EPA has established an upper limit of 0.50 g/hp-hr NOx in this Final Rule.

NCPs generally have minimal adverse economic impacts, said EPA. Use of them is optional, and manufacturers will likely choose whether or not to use NCPs based on their ability to comply with emissions standards. Manufacturers that choose to make use of the NCPs will incur those costs, which are based, in part, on the cost of complying with the emission standards. Without NCPs, a manufacturer that has difficulty meeting the standards has only two alternatives: fix the non¬conforming engines, perhaps at a prohibitive cost, or do not produce/sell them. The availability of NCPs provides non-complying manufacturers with a third alternative, yet protects those manufacturers that have incurred the costs of complying with the standards.
 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

KC SmartPort Momentum

Kansas City SmartPort Momentum 2013 focused on 3PLs, the issues facing the industry, and the role or logistics in economic development

Podcasts

Assurance of Supply: A Top Concern for Manufacturers

Every manufacturer has an assurance of supply problem to some extent due to the complexity of global sourcing. For years, manufacturers were blessed with high margins but margins have grown paper thin. You can’t fill up your distribution centers with excess inventory – not only is there a cost factor but the pace of business and consumer buying trends causes goods to quickly turn obsolete. Assurance of supply provides the speed and agility that is essential to being able to compete in today’s market.

 

Speaker info: Diane Palmquist, VP Manufacturing Industry Solutions

                                         

More Podcasts

World Trade 100 Magazine

wt september 2014

2014 September

Check out the September 2014 edition of World Trade WT100, featuring the 2014 Logistics Directory, plus much more!
Table Of Contents Subscribe

Transportation Capacity

As peak season has gotten underway, what is your experience with transportation capacity?
View Results Poll Archive

WT100 STORE

world-class-warehousing.gif
World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Use our interactive maps to locate service providers across North America.Interactive Map

Logistics Development Partners 

IWLA Members

STAY CONNECTED