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'Z^i.'ZZ ^ : 0 B ftIR RScnURCES LEGAL AFFAIRS NO.uce DOr

Citon O. Snta*Stiff &vm«r

MAC/TRUCKS, INC. mormmt w^SSJSS*1X»2 PENNSYLVANIA AVENUE P^p? * tC 30i.7W«ai$

HAGERSTOWN MARY1AN0 2l7<2 gmtX: 91tnrt.vwttMOm.coucia.wm

^ H S E S i E ^ f ApriM9.2000KCWVltranly)JCT (teooly)

Paul G. Wolfteich, Senior Counsel -U.S. Department of JusticeEnvironmental Enforcement Section ;Environment and Natural Resources Division-! 425 New York Avenue, NWWashington. DC 20005

Subject- Mack Trucks, Inc. Response to Letter from Paul G. Wotfteich to C. DeForrestTrexier. Dated April 4. 2000 :

Dear Mr. Wolfteich:

ih# SatfiNi u l e l in the attachment from the above referenced letter. M encti lori i%rec t # i % trmm& m «N«w«^t | i^^

1. Copies of pertinent testing data supplied under Attachment Item # 1 .

:. Copies of documents considered by Compliance Auditor enclosed underAttachment Item #2. :

3. Copy of EPA 02 Detail Project Plan enclosed under Attachment Item #3.

4 Copies of expended labor and costs enclosed under Attachment Item #4.

5. This approach har not yet been considered since market demands requireadditional power, not less. See enclosures under Attachment Hem #5.

6 Enclosed under Attachment Item #<5 are Meeting Notice/Agenda Minutes reflectingdecisions made by the Design Team with regards to the 2002 engine product.

•T-2S-3C 12:38 W R RESOURCES LEGAL AFF3IRS hC.^c PIC

- * Recommendations for EGR Coqjtrol Algorithms* presentation by EControls Inc.enclosed under Attachment ltem*7. Also included are brief Meeting Minutes from ameeting with a representative from Southwest Research Institute reviewing the EGRsystem integration in terms of EGjR transport.

s The Marketing Department requested EPA 2002 engine model line-up is shownunder 5 above. It is anticipated Mack will have only one(1) twelve(12) liter enginefamily. The attached data is for an E7-460 rating which is not representative of the

H Highest rating requested by our Marketing Department It is emphasized that thedata presented is very early in our development process and could changesubstantially prior to 2002 production. In addition, we have not conducted therequired durability compliance testing for any proposed 2002 product line.

Sheet 6-1 is a contour plot of BSNOx versus speed and load. The NTE zone isshown. This data is not representative of a production viable engine. Sheet 8-2shows BSPM, sheet 8-3 shows B$FC with contours within 5% of the minimum BSFCsnown in dashed lines, sheet 3-4 shows EGR rates and sheet 8*5 shows timingwhere the minus sign indicates BTC timings.

Mack is currently developing a plan to identify the required parametric modificationsand resulting emissions data to achieve a production viable engine in an expedientmanner. This plan should be available May 12, 2000. This availability date hingeson our ability to locate an outside contractor to conduct altitude testing.

9 Enclosed under Attachment Item J*9 are the two(2) EGR designs considered byMack. ;

io. Design specifications to be certified in October 2002 ure not as yet defined.

u. Chassis cooling data as well as tett cell data are enclosed under Attachment Item#11.

12. a. Mack has been unable to achi^e FTP compliance with a high BMEP rating (E7-460) at Mack test-cell conditions (77 degree ambient, approximately 750 ft altitude).It is anticipated further development work will not provide an emissions compliantengine within current acceptable limits for turbocharger compressor pressure ratios,compressor discharge temperatures, compressor wheel speed or turbine inlettemperatures. In addition, total engine heat rejection levels and chassis charge aircooler inlet temperature levels are beyond current cooling system capabilities.

I I

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Tne Mack engine group is working with two(2) turbocharger suppliers to find solutionsfor the turtocharger concerns and. since Mack is a vertically integrated company, theMack vehicle group is working with cooling system suppliers to find solutions for thechassis cooling concerns. It is unlikely that acceptable Engineering solutions can beimplemented in the compressed timelframe for EPA 2002.

b Mack has not been able to achieve ESC compliance within current acceptableturbocharger or chassis cooling system limits(see 12a above) with a high BMEPrating (E7-460) at Mack test cell conditions. While low NOx levels are possible,they occur at conditions not acceptable to our current durability parameters forturbochargers and chassis cooling systems.

c Mack has not been able to actueve steady state NTE compliance within currentacceptable turbocharger or ctfassis cooling system limits(see 12a above) withthe high BMEP rating (E7-460| at Mack test cell conditions,

EPA needs to better define transient behavior during the NTE test. Additionalinformation on the nature of range for the transient conditions is required. It isexpected that, under transient conditions, BSPM will increase but. until theadditional definition is provided it is not possible to quantify the magnitude of thiseffect

Note: Test data to support 1 2 | is contained in the data provided for datarequest item #1 . The test data to support 12b and 12c is summarized in theresponse to data request Hem B and 11.

15. Mack does not have in-house emissions modeling capability. Mack will engage anemissions modeling contractor when a proposal for relief from Paragraphs 17-20 ofthe Consent Decree has been presented.

All information to remain as Confidential Business Information has been clearlymarked

In response to the questions posed in} clauses (c) and (d) of the second paragraph ofyour April 4, 2000 cover letter, Mack til certain that technical amendments to theConsent Decree will be required to albw compliance with if s provisions. However, atthe present time Mack does not pos$4s sufficient information to state with particularitythe amendments which would be necessary in order to meet October, 2002requirements or identify a schedule by which such amendments would be required. Inaddition. Mack feels that it is imperative that any relief granted should be uniformacross the Consent Decree signers to assure a level playing field and avert acompetitive advantage for any manufacturer.

•I<8«.-3e 12= BS WR RfSOURCES LEG*. ^ A I R SNO. 4^s 51J

TO .h« best of my knowledge, after thorough investigation. I certify that the Momrian? a t « d ^ oraccompanying this submission is true, accurate, and complete, am

Jjg^&Glenn 0 . ShatterOn Behalf of Mack Trucks, Inc.

Enclosures

m

;l:ie AIR RESOURCES I^SPL AFFAIRS *C.***

„ >, Tmck* inc's response to U.S. Department Justice's letter of April 3.2000 by Paul G.

w ' o l f t t ^ a d d i l l o n a l i n f O r m a t i ° n h B I ^ ^ ^ m a n u f a C t u r e f S

Mack Trucks ine't response was p r o v e d by G»enn 0 . Stutter on April 19.2000.

AH mfonnaUon provided by Mack Trucks Ir*. as ^Business Confidential Information'. Mack

TruScs Inc. response matches the DOJ attpehment questionnaire.

Question # 1: 6Vt" of material

Question * 2 2" of material

Question #3 10 pages


Question #5 37 pages ;

Question #6 2" of material


Question #8 5 oages

Question #9 2 pages

Question #11 6 pages :

Mack Trucks me did not respond to questions # 12. and 13

-Z'2r cC 12:10 P I R *S**VKES LEGAL AFFAIRS NC. «S£S Si-

Mav 4.2000

Ms. Susan O'ConnorCalifornia Air Resources BoardMobil Source Control Division9500 Tclestar AvenueEl Momc^CA 91731

Re: Caterpillar Documents

Dear Susan:

Enclosed is a set of documents (numbered CD M232) which was provided to the EPAand the Department of Justice. Some of these documents are marked business confidential andshould be treated as such under applicable "California law.

Sincerely,

' Gilbert S. Keteltas

Enclosures

cc: Douglas S. Grandstaff. Esq. :

•

: i c= DC. - M B &1* RF<=OJRCES LESA^ AFFAIRS

Caterpillar's response w « provided bytGllbf n S. K.ttltat on Mty 4.2000.

A,i mformation provided by Caterpillar as ' M l n t s s Confidential Information' Caterp«lar's

^esDonse matches me OOJ attachment questionnaire.

Question # 1 : 77 pages :

Qj63lion#2 49 pages

Question *& 47 pages ;

Quesuon#5 7 pages ;

Question # 6 3259 page* ;

Question #8 32 pages •

Question P 9 38B pages


CateroillBr did not respond to questions # 3.7.11.12. and 13

T'C5'3e 15'-10 «IR RESOURCES LEGflL flP^ftIRS NC. <*<:-

ARNOLD & PORTER ^om^

WASHINGTON. O.C 2OOO-«-l2O2^ i n , * , * MArrt«. i uoi>04t«ooc uaswuzs

April 20, 2000 toTKT!!?? JCT (kroaly)

CONFIDENTIAL - FOR SETTLEMENT PURPOSES ONLYCONTAINS PROPRIETARY INFORMATION

VTA COURIER :

i

Lon Jonas. Esq.Environmental Enforcement Section "United States Department of Justice *P.O. Box 7611Ben Franklin Station iWashington, D.C. 20044 .

Re; Resporf^es to April 3.1000 Request for Tt]formftpQfl

Dear Lori: ."

Enclosed please find, on behalf of Detroit Diesel Corporation ("DDC"). initialdocuments in response to the Tcquests*comaincd in the April 3 letter from Paul Wolftcichof your office.

As we agreed last Thursday (April 13) and again on Tuesday (April 18). DDC hassought to identify useful overview documents that we can provide at this time. DDC isproviding its Series 60 2002 Engine Program Evidence Book. This book containsextensive documentation of DDC's process for developing its engines to achievecompliance with the October 2002 requirements in the Consent Decree. DDC is alsoproviding a very recent update of DDC's engine development schedule. This informationconstitutes a partiaLresponse to Request No. 3 in the attachment to Mr. Wolfteich's letter.

The cncloseiinformation focties on DDC's internal product development plansand schedule, and consequently is extremely proprietary and competitively sensitive.Accordingly, we are designating the ixiformation being provided as confidential businessinformation C'CBI") entitled to protection tgainst release to the public pursuant to 40C.F.R. § 2.203(b)9 as provided in Paragraph 144 of the Consent Decree.

:2 'K.-ae -*: u m R ^ s c u * ^ 5 LEGAL AFFAIRS NC. «**

ARNOLD 6c PORTER

Lori Jonas, Esq.April 20. 2000Page 2

As we also have discussed, DDC intends to continue its response to the requestswith a substantially broader production next week. In light of the holidays this week, andthe steps required to collect. Bates Label, collate and copy the documents, we expect tha:we will produce this broader set of documents in the latter part of the week.

Please call me if you have any questions or concerns.

' Jonathan S. Maxtel

Enclosures :

cc John F. Fanner, Vice Presided andGeneral Counsel. Detroit Diesel Corporation

:r«.'3C 122" AIR RESOURCES UEGfc. AFFAIRS *C. *fie S i r

Detroit Diesel Corporation's response to U.S. Department Justice's letter of April 3. 2000 byPaul G. Wolfteich. Senior Counsel, requesting additional information from the enginemanufacturers ;

Detroit Diesel Corporation's response was provided by Jonathan S. Mattel on April 20.2000

AI information provided by Detroit Diesel Corporation es 'Business Confidential Information*.Detroit Diesel Corporation response does not match the DOJ attachment questionnaire directly.

«The response documents ere 4186 pages long.

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•; ' R EKAOLT q ^ ^

RENAULT VI Cc: m £ ~'ySec Homologations et Rtglcmcnutioni ^ w rit^niJ/EER005001 JCTdtrooIyi1, Avc H. Germain- B.P. 31069806* St-Priest CedocPrance U.S. DEPARTMENT OF JUSTICETel; 33-J72-96-5S-48 Environment and Natural Resources DivisonPax 33*472*96-91-43 Environmental Enforcement Section

1425 NEW YORK AVENUE, N.W.WASHINGTON. D.C. 20044-7611

Date : April 17th, 2000 'Your Ref : Letter dated ApriU. 2000OurRef : YB/1500/2000

DcarMrWOLFTEICH,

Please find herewith the Renault VPs response to the information requests made in yourletter dated April 4t 2000, together with its appendices.

A3 pointed out in our second Cbmpliance Report, the US 2002 development action for ourMedium Range will be at the stage of a preliminary plan until October 2000.The technical feasibility study hts been on progress since late december 1999. and will beperformed up to October 2000, if conclusive. A RENAULT VI corporate meeting will thendecide in which way this Project is to be pursued : at this stage, called « RVE 3 » in ourProject Development Procedure the choice of the technology will be fixed and the maindecisions taken, relevant to the product costs, budget, schedule...The development of the engine jpecificatioas will then start up to the industializarion phase.

For these reasons, items 5, 8, 10, 11, 12, 13 cannot be documented at this time , as theProject hasn't gone forward enough-

Up to now, the main points are:• the technical feasibility of US 2002 has not yet been reached.- there is an important risk thatSUENAULT VI cannot be ready within the deadline : fuch a

project should commonly rcquirt at least a 6 months longer period, so as to avoid the riskyoverlapping activities (engine performance specifications, engines and trucks durability tests)

• *Renault VI hereby asserts a Business Confidentiality Claim covering all information

| provided herewith.

{ Please do not hesitate to contact me should you require any further information. ..; ( pgrA^5.:-C»JOSTCe

i

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Renault Vl's response to U.S. Department Justice's letter of April 3.2000 by Paul G. WolfUich.Senior Counsel, requesting additional information from the engine manufacturers.

Renault Vr t response was provided by X. B«y$sac on April 17.2000.

AH ^formation provided by Renault VI as -Business Confidential Information'. Renault VIresponse matches the DOJ attachment questionnaire.

Question* 1: 17 pages ;

Question * 2 9/16" of material

Cuesuon # 3 3 pages

Gueston * A 9 pages

Question # 6

Question * 7

6 pages

3 pages

Question # 9 5 pages

Renault VI did not respond to questions # 15,10.11,12 and 13

it r-?f r«--:«:l2 313 VT *CES LEGAL AFFAIRS

.tp -'ei «>u go*-occft/ore-tco'doclttit Vjni

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SEPA

$tttr*«nt

Office of Regulatory.: Enforcement

In-Use Test Program

Six companies (Dbtroit Diesel, Caterpillar, Cummins, Mack, Renault,and Volvo) are required to conduct an In-use Test Program to ensurediesei engines manufactured or modified by them meet therequirements of the Consent Decrees when driven under conditionswhich can reasonably be expected to be encountered during normalvehicle operation find use. and to evaluate the effectiveness ofmodifications to engine design made in response to the requirementsof the Consent Decrees in reducing emissions. Specifically, eachmanufacturer will conduct testing to assess in-use mobile monitoringtechnologies, establish calibration and operating procedures forselected monitoring technologies, establish a baseline emissioncharacterization, and conduct on-road testing to monitor in-usecompliance on representative Heavy Duty engines it manufactures.The six companiei are working together on this project with theUniversity of West Virginia. Navistar will contribute $350,000 to thein-use test program conducted by the other manufacturers. IncludingNavistaKs contribution, the total funding for the In-Use Test Programis $7,500,000. ;

-The In-use Test Program consists of four phases. In Phase I, eachmanufacturer is required to conduct engineering studies to determinethe correlation, accuracy, precision^and repeatability of existingmpbile monitoring technologies. In Phase II, each manufacturer isrequired to develop in-use testing procedures, based on testing ofHDDEs engaged in a variety of typical on-road missions, to be usedin connection withiPhases III and IV. In Phase III each manufacturermust conduct emissions testing on a variety of its in-service dieseiengines (pre-mod^l year 2000) to characterize real world emissionsfrom such diesei engines. In Phase IV, each manufacturer mustconduct on-road compliance monitoring on Its Heavy Duty enginesusing the monitoring technology and previously defined testingprocedures and driving routes approved pursuant to Phases I and II.A minimum of 60% of the total In-use Test Program funds will be

or: 12/4/00 3.21 PM

; l -C- • » : * 13 AIR *r * £ 5 ^ ^ OFFAIRS M3-**6

spent on Phase IV

In-Uso Test Program ReportsPhfl^e I ReOQft RDF version onlyPhflse II Report POf version only

Refjm to too

Btck to Ajr Enforcement Division Home Pacpe

Last UpdMd; OctofrS. 2000URL: http7/www.«pa.gpv/oeca/or«/aed/diea«l/index.html

This is an official EPA web-site. In this web-siteunder the 'In Use Test Program' there are two reports,Phase I and Phase II. These two reports have lots of'not to exceed' related test data, developedindependently at the West Virginia University.

, r : - 13/4/003:21 H*

»- v* 0>- 1^ 56 FAA UUUX 4. WATKINS S 2oo:

UN1TE0 STATES ENVIRONMENTAL PROTECTION AGENCYNATIONAL VEHICLE AND FUEL EMISSIONS LABORATORY

2565 PLYMOUTH ROADANN ARBOR. MICHIGAN 46105-2498

OCtCCOFAJRAKO RADIATION

Memo

Date:

To:

From:

Subject:

July 17.2000

EPA Air Docket A-98-32

L _ JCharles Schenk.Mechanical Engineer g/k/K&v £A**s2>^

Summary of CBl information regarding proposed HD Supplemental TestRequirements

The purpose of this memo is to summarize Confidential Business Information fromheavy-duty (HD) diescl manufacturers that EPA has received after the 10/29/99 Federal Registerpublication of the HD 2004 Notice of Proposed Rulemaking. Specifically, we have received CBIon several issues related to the proposal for Not-To-Exceed (NTE) and the Supplemental SteadyState (SSS) requirements from five HD dicsel companies which manufacture and sell HD dicselengines for the U.S. market.

Due to the confidential nature of this information, how many or which manufacturerspresented data on the topics summarized will not be specified in this memorandum. Copies ofthe CBl submissions on which this memorandum is based have been placed in EPA'sconfidential version of docket A-98-32, and they reside in secured storage at EPA's NationalVehicle and Fuel Emissions Laboratory. THIS MEMORANDUM DOES NOT EXPRESS EPA'sVIEWS ON THESE ISSUES; ONLY A SUMMARY OF THE DATA SUPPLIED BY MANUFACTURERS ISPRESENTED.

1) The SSS can be met today

Data has been submitted that shows the NOx and PM SSS composite can be met underlaboratory conditions. The modal emissions also met the NTE requirement. Per the SSSrequirement, data were taken at standard test conditions (68-86 F« typically < l 0 0 0 ftabove sea level). Measurement and control issues and engine-to-cnginc variability werenot taken into account with these data sets* Therefore these data stis may not berepresentative of production engines.

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&1 0 0 ** 5 6 F A ^ LATHAM fc * ATKINS S i O O J

2) Aspects nfthfeNTE which can be met today.

Manufacturers have supplied data which demonstrates that the majority of the NTE andexpanded condition requirements in the proposal can be met. Tne proposed emissionrequirements for NMHC+NOx and PM, at standard laboratory conditions, are achievableacross >9O9fe of the NTE zone. NTE emission requirements for NMHC+NOx and PM arealso achievable at expanded conditions from 55 "F to at least 90 °F at sea level, and to atleast 70 *F at 5500 ft altitude.

Manufacturers have employed a variety of technologies to achieve these results, but ingeneral the following technologies have been employed;

-cooled exhaust gas reeireulauon (EGR)-advanced turbocharging systems, either VGT or 2-stage turbocharging•high pressure electronically controlled fuel injection systems, either unit injector

or common rail

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li 36 FAX LATHAM * ^ATKINS 8 3004

3> Aspects of the NTE and expanded conditions which present challenges

la addition to the information under item 1), EPA also received CBI data on anumber of issues which manufacturers believe present difficulties with respect tothe NTE proposal for HD diesels. The remainder of this memorandumsummarizes the issues raised by manufacturers.

A) Manufacturer Issue: Difficulty achieving L25x NOx + NMHC limit near

iaoo

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1400

i

600<

400 -

200 •

0 '

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/N1S «oed. 70-4 K cp««4 U*3 —p*

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- SSSMo**

^ ^ — ^ OK. SSS apMd. 100% «y««

1.2S NTE MufUpMr \ I

\

\

L" - •- "A -̂700 1100 1S0O 2100 2S00

Figure tComposite NOx NTE Challenge

torque peak, particularly with high specific power ratings. The composite regioncovered by these comments is shown in Figure 1.

Causes: Current EGR pumping and measurement technology has not beenable to provide adequate NOx control in this region. It is difficultto drive sufficient EGR to control NOx in this region whilesimultaneously maintaining PM below the proposed standard. Theengine is highly loaded and constrained by several parametersincluding A/f\ cylinder pressure, and temperature. Consequently,the engine has a narrow window of acceptable operating

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: - _ u i _ u u 16 36 FAX LATHAM I *ATKINS 8 £ 0 0 $

conditions. Accurate measurement and control of BGR rate isnecessary to keep the engine in this narrow window. The availableair mass flow, 02, NOx, and pressure sensors have measurementtolerances sufficiently large that they cannot be used to control theengine with the degree of precision necessary to keep it in thenarrow operating window required* Current generation controlsystems also have not provided the necessary degree of control.

8) Manufacturer Issue: High speed engines (engines with Euro C speeds>2400 rpm) have difficulty meeting NTE requirements at high speed and highload.

Causes: These engines, particularly with EGR, require very high airflowrates and pressure ratios at high engine speeds and loads. Currentturbo machinery is not capable of supplying the range of air flows(pressure ratios) required to meet both NOx and PM. The cutTcntturbo technology is stretched to its limits at standard sea levelconditions and little or no reserve capacity is available for hightemperature or high altitude operation. As in A) above, theturbochargcr is limited by physical parameters* primarily wheelspeed in this case, though compressor outlet temperature limits canalso be an issue.

C) Manufacturer Issue: Engines using some Diesel Oxidation Catalyst (DOC)formulations cannot meet the NTE PM requirement.

Causes: DOCs can produce sulfate PM under some high temperatureconditions that are covered by the NTE using the current on-highway fuel (-300 ppm sulfur). The high temperatures (typically500 C and above) usually occur near the maximum torque curvethrough the NTE region and are influenced by the specific outputof the engine- higher specific engine output will lead to largerregions of high temperature. At high temperatures SOa producedby the engine can be oxidized to SO3 over the precious metalscontained in DOCs. This SO3 then combines with the water in theexhaust to form H2SO4 which is collected on the filters used tomeasure PM, increasing the PM mass. If the temperature and fuelsulfur level are high enough, a net increase in PM can be realizedwith some DOCs raihcr than the desired decrease. If the PM at aparticular mode was near the NTE limit engine out, some DOCformulations could produce enough sulfate to exceed the NTE.

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?o FA.\ U T H A M 1 ^ATKINS S £00*

D) Manufacturer Issue: Under high load operation at high temperature and highaltitude conditions compliance with the NMHC+NOx 1.25 NTE limit at the 2.5

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Figure 2Expanded Conditions

g/hp-hr standard pushes current turbomachinecy beyond its mechanical limits.The composite conditions covered are shown in Figure 2. This is particularly tmefor high power (high BMEP) ratings of a given engine.

Cause: Mechanical limits (wheel speed and temperature) of current castaluminum turbocharger compressors are exceeded when applyingsufficient EGR to meet the NTE NOx standard at hightemperatures and altitudes while meeting PM standard at highengine loads. EGR requires more fresh air flow (higher intakemanifold pressure) to maintain adequate air-fuel ratio to controlPM. Also, to maintain that fresh air flow at high temperatures andaltitudes, more work must be done by the tuibocharger tocompensate for the lower ambient air density. The combination ofthese factor* pushes current turbocharger technology beyond itslimits, especially for highly rated engines that arc stressing thewrbocharger even without EGR.

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;_-_̂ i. _LL.FAX UTH.VM * *ATKISS 8 £,001

4) Engine wear due to cooled EGR and current diescl fuel sulfur levels

Manufacturer Issue: Current fuel sulfur levels (-300 ppm) cause excessiveengine wear with cooled EGR equipped engines. ~~

Causes: Fuel sulfur is oxidized during combustion to SO2 and smallerquantities of SOy SO3 quickly converts to U2SOA (sulfuhc acid) inthe presence of water which is also a byproduct of combustion.Sulfuric acid corrodes most metals. The sulfuric acid that, withoutEGR, is evacuated from the engine via the exhaust system, is .returned to the engine in the EGR system. When conditions aresuch that the water and acid solution condenses, wear can occur.EGR system components, including EGR valves, coolers, andtubing, and engine hardware, including intake air tubing, pistonrings, cylinder bores, etc. are subject to corrosion by therecirculated sulfuric acid.

In addition to sulfuric acid, water alone can corrode some of themetals typically found in an engine air intake system. Iron, whichis used for cylinder heads, is an example. Water will activelycorrode the iron in the intake manifold which is frequently part ofthe cylinder head casting, potentially causing durability problems.

Cylinder kit (rings and liner) wear is both directly and indirectlyimpacted by corrosion. Corrosion by sulfuric acid causes pitting inthe cylinder liner directly. The indirect wear is from ingestedcorrosion byproducts. Corrosion of the EGR and intake airsystems causes metallic particles to be released and carried into thecylinder where these particles cause abrasive wear on the cylinderkit. Wear of the cylinder kit is one of the determining factors forengine life. When the cylinder kit is worn out, the engine has to berebuilt. Manufacturers have expressed concern that the amount ofcooled EGR necessary to achieve the proposed 2004 standards incombination with a 435,000 mile useful life and 300 ppm sulfurfuel may not be feasible-

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I.VTHAM be WATKISS

trC*

LATHAM & WATKINS *~Laurence H. LevineRichard W. RaushenbushPatricia Guerrero

505 Montgomery Street, Suite 1900San Francisco, CA 94111-2562Telephone: (415)391-0600Facsimile: (415)395-8095

Attorneys for Plaintiff International Truck andEngine Corporation

rzn errs

Jliri 2 7 200:

UNITED STATES DISTRICT COURTEASTERN DISTRICT OF CALIFORNIA

INTERNATIONAL TRUCK ANDENGINE CORPORATION,

Plaintiff,

v.

CALIFORNIA AIR RESOURCESBOARD, an agency of the State ofCalifornia, ALAN C. LLOYD, Ph.D., itsChairperson, MICHAEL P. KENNY, itsExecutive Officer,

Defendants.

- 0 1 - 1 2 4 5GEB GGHCOMPLAINT FOR DECLARATORY ANDINJUNCTIVE RELIEF

+"_DOC'S\270fTO0.9 IW97|COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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I-VI HAM is: W A T K I N S

Plaintiff International Truck and Engine Corporation ClntemationaD. for its

Complaint against Defendants the California Air Resources Board, its Chairperson. Alan C.

Lloyd (in his official capacity) and its Executive Officer, Michael P. Kenny (in his official

capacity) (collectively, "CARB"), alleges as follows:

INTRODUCTION

1. On December 8, 2000, CARB adopted Resolution 00-53, which directed

the Executive Director to amend California's new motor vehicle regulations for on-highway

heavy duty diesel-powered vehicles to include three new emission standards for heavy duty

diesel vehicles in the guise of "test procedures" with "emission caps." Under CARB's adopted

regulation, in addition to meeting specified emission standards during the Federal Test Procedure

("FTP") testing cycle as previously required, heavy duty diesel vehicles would be required to

meet: (a) a "Not-To-Exceed" emissions limit of 1.25 times the FTP-based standard ; (b) a

"modified" European Stationary Cycle ("ESC") emission limit of 1.00 times the FTP-based

standard; and (c) a "Maximum Allowable Emission Limit" ("MAEL") set by interpolation from

testing points on the ESC test cycle. The three new emission standards would apply to Model

Year ("MY") 2005 and subsequent model year vehicles.

2. CARB voted to require new heavy duty diesel vehicles to meet a Not-to-

Exceed emission limit (the "NTE limit") as measured during any thirty second period during "all

conditions which may reasonably be expected to be encountered in normal vehicle operation and

use" within an "NTE Control Area" of the engine's power output. Although the NTE limit •

applies to in-use operating conditions, CARB had no "in-use" emissions data upon which to base

the NTE limit, much less to establish that it is technologically feasible for heavy duty diesel

vehicles to achieve the NTE limit during any thirty second period of "all conditions which may

reasonably be expected to be encountered in normal vehicle operation and use."

3. Under the CARB NTE limit, beginning with MY 2005 vehicles, heavy

duty diesel engine manufacturers will be required to certify not only that their heavy duty diesel

engines meet emission standards based on measurements pursuant to the Federal Test Procedure

("FTP"), but also that the engine's emissions will not violate the NTE limit during any thirty

F J>OCS\27(n<>0 <M WQ71COMPLAINT FOR DECLARATORY AND INJUNCTiVE RELIEF

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second period of "all conditions which may reasonably be expected to be encountered in normal

vehicle operation and use" essentially without regard to the vehicle's load (how much is the

engine pulling), route (uphill or downhill), traffic (causing rapid acceleration or deceleration),

elevation (how much oxygen is in the intake air), maintenance (proper or improper), engine

operations, fuel variability, ambient conditions (such as temperature, pressure, and'or humidity

that affect combustion), or any other combination of "reasonably expected" events. Although

CARB had not even a single data point on likely emissions during thirty seconds of in-use

operations, CARB's proposed NTE limit requires that manufacturers certify that their engines

will not exceed the NTE limit over an infinite number of "reasonably expected" driving

conditions and warranty the same to the purchasers of such engines.

4. CARB also voted to require testing of 2005 and subsequent MY heavy

duty diesel engines on a "modified" Euro III European Stationary Cycle (ESC) test cycle

previously adopted by the United States Environmental Protection Agency ("EPA") for 2007 and

subsequent MY heavy duty diesel engines. The "modified" ESC test cycle consists of operating

the engine at thirteen different and specified speed and power conditions. The emission results

are then weighted and averaged. Under the new ESC emission standard, "the weighted average

emissions must not be greater than the existing Federal Test Procedure emission standard."

5. CARB also voted to impose Maximum Allowable Emission Limits. The

MAEL is determined from the twelve non-idle test points on the ESC test adjusted with a 10%

'interpolation allowance." The MAEL for %4any set of speed and load conditions between test

points can be determined using a four-point interpolation procedure" provided in the proposed

regulation. "Emissions of gaseous pollutants at any point within the maximum allowable

emission limit operational zone must not exceed the cap as determined by interpolation."

6. This action seeks declarations that:

a. CARB's adoption of the NTE limit, ESC limit, and MAEL for MY

2005 and later heavy duty vehicles is preempted pursuant to the Supremacy Clause of the United

States Constitution by Section 209(a) of the Clean Air Act ("CAA" or the "Act"), 42 U.S.C.

§ 7543(a), which provides: "No State or any political subdivision thereof shall adopt or attempt

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to enforce any standard relating to the control of emissions from new motor vehicles or new

motor vehicle engines subject to this part. No State shall require certification, inspection, or any

other approval relating to the control of emissions from any new motor vehicle or new motor

vehicle engine ** Although Defendants may seek a waiver of Section 209(a) preemption

from the United States Environmental Protection Agency ("EPA") pursuant to Section 209(b),

Defendants have not done so. Therefore, the NTE limit, ESC limit, and M AEL are preempted

pursuant to Section 209(a) of the CAA.

b. CARB's adoption of the NTE limit, ESC limit, and MAEL for MY

2005 and later heavy duty vehicles is preempted pursuant to the Supremacy Clause of the United

States Constitution by Section 209(a) of the CAA because, even if Defendants were to apply for

a preemption waiver pursuant to Section 209(b), no such waiver is available as the NTE limit,

ESC limit, and MAEL are inconsistent with the requirements of Section 202(a) of the CAA, 42

U.S.C. §7521(a).

c. CARB's adoption of the NTE limit, ESC limit, and MAEL for MY

2005 and later heavy duty diesel vehicles is preempted pursuant to the Supremacy Clause of the

United States Constitution by Section 202(a) of the CAA because the NTE limit, ESC limit, and

MAEL: (i) are technologically infeasible under Section 202(a)(3)(A), 42 U.S.C. § 752I(a)(3)(AK

and (ii) violate the lead time and stability requirements of Section 202(a)(3)(C), 42 U.S.C.

§ 7521(a)(3)(C). The NTE limit, ESC limit, and MAEL therefore stand as obstacles to the

accomplishment and execution of the full purposes and objectives of Congress set forth in the

Act.

7. Plaintiff further seeks injunctive relief necessary to restrain CARB from

implementation and enforcement of the NTE limit, ESC limit, and MAEL.

JURISDICTION AND VENUE

8. This Court has jurisdiction over the subject matter of this action pursuant

to the United States Constitution, Article 6, cl. 2 and 28 U.S.C. § 1331.

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9. Venue is proper in this district pursuant to 28 U.S.C. § 1391(b), in that

Defendants reside in this district and a substantial part of the events or omissions giving rise to

International's claims occurred in the Eastern District of California.

THE PARTIES

10. Plaintiff is a Delaware corporation with headquarters in Chicago, Illinois.

Plaintiff is an international manufacturer and marketer of heavy-duty trucks, school buses and

mid-range diesel engines in North America and Latin America, as well as various export

markets. Plaintiff is the leading supplier of diesel engines in the 160 to 300 horsepower range

and manufactures and markets heavy duty diesel engines and heavy duty diesel vehicles destined

for sale in the State of California. International1 s heavy duty engines and vehicles will be subject

to CARB's NTE limit, ESC limit, and MAEL

11. Defendant California Air Resources Board is an agency of the State of

California responsible for adopting and administering motor vehicle emissions regulations for

the State of California.

12. Defendant Alan C. Lloyd is the Chairperson of the California Air

Resources Board.

13. Defendant Michael P. Kenny is the Executive Officer of the California Air

Resources Board.

GENERAL ALLEGATIONS

Constitutional And Statutory Framework

- - 14. The Supremacy Clause of the United States Constitution provides that:

"This Constitution, and the laws of the United States which shall be made in pursuance

thereof... shall be the supreme Law of the Land; and the Judges in every State shall be bound

thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding."

U.S. Const., Article VI, cl. 2.

15. Under Section 209(a) of the C A A: "No State or any political subdivision

thereof shall adopt or attempt to enforce any standard relating to the control of emissions from

new motor vehicles or new motor vehicle engines subject to this part. No State shall require

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cenificaiion, inspection, or any other approval relating to the control of emissions from any new

motor vehicle or new motor vehicle engine — " 42 U.S.C § 7543(a). Congress preempted stale

regulation of new motor vehicle emissions to ensure uniformity throughout the nation, and to

avoid the undue burden on motor vehicle manufacturers which would result from different state

standards.

16. The CAA provides an exception to the preemptive effect of the statute for

California if certain conditions are met. See 42 U.S.C. § 7543(b). Under that exception*

California is permitted to adopt and enforce its own new-vehicle emission standards, provided

that it first applies for and obtains a waiver from the EPA. Id.

17. The Administrator of the EPA may not grant California a waiver of federal

preemption if the Administrator finds that California's "standards and accompanying

enforcement procedures are not consistent with" Section 202(a) of the Act, 42 U.S.C. § 7521 (a).

See 42 U.S.C. §7543(b)(l).

18. Section 202(a) of the CAA, in turn, requires that any new standards and

accompanying enforcement procedures adopted by CARB be technologically feasible.

Specifically, Section 202(a)(3)(A) of the CAA requires that standards "reflect the greatest degree

of emission reduction achievable through the application of technology which the Administrator

determines will be available for the model year to which such standards apply, giving

appropriate consideration to cost, energy, and safety factors associated with the application of

such technology/' 42 U.S.C. § 7521(a)(3)(A).

- - 19. Further, Section 202(a) also requires CARB to provide sufficient lead time

and stability prior to adopting and enforcing any heavy-duty diesel engine or vehicle standard.

Under Section 202(a)(3)(C), *'[a]ny standard promulgated or revised under this paragraph and

applicable to classes or categories of heavy-duty vehicles or engines shall apply for a period of

no less than 3 model years beginning no earlier than the model year commencing 4 years after

such revised standard is promulgated." 42 U.S.C. § 7521(a)(3)(C). In other words, heavy duty

engine and vehicle manufacturers are to have at least four model years to develop methods to

comply with new emission standards (i.e., the lead time requirement) and those new standards

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must stay in effect for at least three full model years before another standard is established (i.e..

the stability requirement).

CARB's Adoption Of The NTE Limit. ESC Limit and MART.

20. On September 15,2000, CARB's staff published a notice of CARB's

"Consideration of Amendments to Adopt Not-To-Exceed and Euro III European Stationary

Cycle Emissions Standards and Test Procedures For The 2005 And Subsequent Model Year

Heavy-Duty Engines And Vehicles."

21. In its September 15, 2000 notice, CARB stated that the EPA proposed to

adopt an NTE standard, an ESC standard, and an MAEL standard beginning with MY 2004, but.

because of "legal timing constraints'* (i.e., the lead time and stability requirements), adopted such

standards effective with MY 2007.

22. In its September 15, 2000 notice, CARB proposed to incorporate the NTE

limit, ESC limit, and MAEL in MY 2005, stating that implementing such requirements earlier

than the federal requirement "will contribute to significant emission benefits during the 2005 and

2006 calendar years/*

23. CARB's September 15, 2000 notice stated the proposed amendments

contained three main requirements for 2005 and subsequent model year heavy duty diesel

engines: (a) "the new NTE Test with numerical emissions standards of 1.25 times the FTP

emission standards"; (b) "the new ESC with numerical emission standards equivalent to the FTP

emission standards"; and (c) "Maximum Allowable Emission Limits." (Emphasis added).

* • 24. CARB's September 15, 2000 notice also provided CARB's "Proposed

Regulation Order." CARB proposed to amend Title 13 California Code of Regulations § 1956.8.

entitled "Exhaust Emission Standards and Test Procedures - 1985 and Subsequent Model

Heavy-Duty Engine and Vehicles," to include a § I956.8(a) with the following provisions:

(5)(A) For 2005 and subsequent model year heavy-duty dieselengines, the weighted average exhaust emissions, as determinedunder § 86.l360-2007(e)(5) pertaining to the supplemental steady-state test cycle, for each regulated pollutant shall not exceed 1.0times the applicable emission standards or FELs specified inparagraph (a)(l) of this section.

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(5)(B) Gaseous exhaust emissions shall not exceed the steady-state interpolated values determined by the Maximum AllowableEmission Limits (for the corresponding speed and load), asdetermined under § 86.1360(0, when the engine is operated in thesteady-state control area defined under § 86.1360(d), duringsteady-state engine operation.

(6)(A) For 2005 and subsequent model year heavy-duty dieselengines, the brake-specific exhaust emissions in grams/bhp-hr. asdetermined under § 86,1370 pertaining to the not-io-exceed testprocedures, for each regulated pollutant shall not exceed 1.25times the applicable emission standards or FELs specified inparagraph (a)(l) of this section during engine and vehicleoperations specified in paragraph (a)(6)(B) of this section, except.as noted in paragraph (a)(6)(C) of this section.

25. On October 10, 2000, CARB issued a "Notice of Public Hearing to

Consider Amendments to Adopt Not-To-Exceed and Euro III European Stationary Cycle

Emission Test Procedures for the 2005 and Subsequent Model Year Heavy-Duty Diesel

Engines" on December 7-8, 2000.

26. On October 20, 2000, CARB released its "Staff Report: Initial Statement

of Reasons" for the "Amendments to Adopt Not-To-Exceed And Euro III European Stationary

Cycle Emission Test Procedures for the 2005 and Subsequent Model Year Heavy-Duty Diesel

Engines."

27. The Initial Statement of Reasons stated that proposed amendments

included the: (a) **NTE test procedure with associated emission caps for NMHC plus NOX, CO.

and PM from 2005 and subsequent model year heavy-duty diesel-engines"; (b) "Euro HI ESC

test procedure with associated emission caps for NMHC plus NO*, CO, and PM from 2005 and

subsequent model year heavy-duty diesel engines"; and (c) "MAEL test procedure with

associated emission caps for NMHC plus NO* and CO from 2005 and subsequent model year

heavy-duty diesel engines."

28. The Initial Statement of Reasons noted that there are "three sets of

proposed emission caps in the test procedures." "Two of these emission caps are based on the

existing emission limits determined by the FTP test cycle. The first proposed emission cap is for

the NTE test. This cap is set at 1.25 times the emission limit."

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29. The Initial Statement of Reasons asserts that, under the ESC test, the

-weighted average emissions for each pollutant, must not be greater than the existing Federal

Test Procedure emission standard which is currently 2.5 g/bhp-hr for NMHON0 x for 2005 and

subsequent model year engines."

30. The Initial Statement of Reasons asserts that: "Maximum allowable

emission limits are determined from the 12 non-idle lest points of the ESC test." "Emissions of

gaseous pollutants at any point within the maximum allowable emission limit operational zone

must not exceed the cap as determined by interpolation/*

31. On December 8,2000, CARB held a public hearing regarding the

proposed NTE limit and adopted Resolution No. 00-53. Resolution No. 00-53 states that CARB

"adopts article 1.5 and section 2065; amends section 1956.8, title 13, California Code of

Regulations; and amends the incorporated 'California Exhaust Emission Standards and Test

Procedures for 1985 and Subsequent model Heavy-Duty Diesel Engines and Vehicles/*" which

includes the requirement that manufacturers comply with the new NTE limit, ESC limit, and

MAEL.

32. Resolution No. 00-53 directed that CARB's Executive Officer "shall,

upon adoption, forward the regulations to the Environmental Protection Agency with a request

for a waiver or confirmation that the regulations are within the scope of an existing waiver of

federal preemption pursuant to section 209(b) of the Clean Air Act, as appropriate."

33. CARB did not forward the regulations adopted by Resolution 00-53,

including the NTE limit, ESC limit, and MAEL to the California Office of Administrative Law

for final approval until June 12, 2001.

34. CARB has not requested that EPA's Administrator issue a waiver of

federal preemption pursuant to Section 209(b) of the Act for either the NTE limit, ESC limit, and

MAEL.

The NTE Limit. ESC Limit and MAEL Are Emission Standards

/ / /

35. Resolution 00-53 adopted the proposed NTE limit, ESC limit, and MAEL.

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36. According to C ARBf s Initial Statement of Reasons: "The NTE test, as

defined in CFR 86.1370-2007, establishes an area (NTE control area) under the torque curve of

an engine where emissions must not exceed a specified emission cap for a given pollutant. The

NTE cap is set at 1.25 times the FTP emission limit as described in the subsection above. For

2005 model year heavy-duty engines, the NTE emission cap for NMHC plus NOX is 1.25 limes

2.5 grams per brake horsepower-hour, or 3,125 grams per brake horsepower-hour."

37. According to CARB's Initial Statement of Reasons: 4T/ie ATE

requirement would apply under any engine operating condition that could reasonably he

expected in normal vehicle use. A vehicle can be tested over the NTE procedure either on the

road or in an emission testing laboratory using a engine or chassis dynamometer. Instead of

using a specific driving cycle such as the FTP, it can involve driving of any type which could

reasonably be expected to occur in normal vehicle operation within the boundaries of the NTE

control area, including operation under steady-state or transient conditions and under varying

ambient conditions. Measured emissions are averaged over a minimum of thirty seconds and

compared to the NTE test limit. These requirements would apply to new 2005 and 2006 engines

throughout their useful life." (Emphasis added).

38. According to CARB's Initial Statement of Reasons: 2005 and subsequent

MY heavy duty diesel engines must be tested on a "modified" Euro HI European Stationary

Cycle (ESC) test cycle. The "modified" ESC test cycle consists of operating the engine at

thirteen different and specified speed and power conditions. The emission results are then

weighted and-averaged. Under the new ESC emission standard, "the weighted average

emissions must not be greater than the existing Federal Test Procedure emission standard."

39. According to CARB's Initial Statement of Reasons: The MAEL is

determined from the twelve non-idle test points on the ESC test adjusted with a 10%

"interpolation allowance." The MAEL for "any set of speed and load conditions between test

points can be determined using a four-point interpolation procedure" provided in the proposed

regulation. "Emissions of gaseous pollutants at any point within the maximum allowable

emission limit operational zone must not exceed the cap as determined by interpolation."

F_DOCS\2707<)0«)|W»)71COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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40. CARB Resolution 00-53 states: "Adoption of the supplemental test

procedures will reduce excess statewide NOX emissions by 17 tons per day in 2006 and by 14

tons per day in 2010 from California registered vehicles alone."

41. CARB Resolution 00-53 further states: "Adoption of the supplemental

test procedures will reduce excess NOX emissions of 5.1 tons per heavy heavy-duty diesel engine

(33,001 pounds and greater gross vehicle weight rating) and 0.6 tons per medium heavy-duty

diesel engine (14,001 to 33,000 pounds gross vehicle weight rating) over the lifetime of each

engine."

42. CARB expects and intends that the NTE limit, ESC limit, and MAEL will

cause a reduction in emissions of pollutants, including but not limited to NOX, from heavy duty

diesel vehicles.

43. Due to production variability or other effects such as temperature,

pressure, humidity, and combustion characteristics, heavy duty diesel engine emissions-may rise

above and fall below the average FTP-based emission standard for a given pollutant even while

the engine is properly designed to meet the designated emission standard on average over the

useful life of the engine.

44. The CARB-adopted NTE limit, however, places an absolute cap on such

natural emissions variability at 1.25 times the 2.5 g/bhp-hr NMHC + NOX standard. Thus,

notwithstanding that engines are designed to meet, on average, the designated FTP-based

emission standard, such engines will violate the NTE requirements if they exceed 1.25 times the

applicable emission standard at any point in the NTE control area during any thirty second

period under any ambient and operating conditions.

45. The CARB-adopted ESC limit and MAEL similarly impose absolute caps

on emissions, and similarly add new requirements to the existing FTP-based emission standards.

46. To meet the CARB-adopted NTE limit, ESC limit, and MAEL,

manufacturers would have to design their engines to meet emission control levels significantly

lower than the FTP-based standard (assuming it were technologically feasible to do so, which it

is not). The NTE limit, ESC limit, and MAEL therefore each have the effect of increasing the

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stringency of the underlying emission standards for MY 2005 and subsequent heavy-duty diesel

engines and vehicles, each resulting in a new standard that is technologically infeasible for MY

2005 and later engines.

47. The EPA also has adopted a "noMo-exceed" limit, the same ESC-based

"supplemental emissions test" ("SET") limit, and a more limited MAEL for emissions from

heavy duty diesel engines. 66 Fed. Reg. 5002, 5038-39 (January IS, 2001). The newly-adopted

federal NTE standard is set at 1.5 times the FTP-based emission standard, the ESC standard is set

at 1.0 times the applicable emission standards, and the MAEL is applicable only to certain

engines. 40C.F.R. § 86.007-11 (a)(3)-(4).

48. The EPA has identified the federal NTE limit, the ESC limit, and the

MAEL as emission standards. See 40 C.F.R. § 86.007-1 l(a)(3)-(4). Further, in a "Phase r rule,

the EPA stated: 4t[W]e are adding two supplemental sets of requirements for HDDEs: (a) a

supplemental steady state test (SSS); and (2) Not-To-Exceed requirements (NTE) The

supplemental requirements establish new emission standards for HDDEs. and these new

standards will be enforced in the same manner as the preexisting FTP standard." 65 Fed. Reg.

59911 (emphasis added); accord, e.g. EPA Response to Comments Document (December 21.

2000) at 3-13 ("These statements contain no ambiguity or uncertainty, it is clear how and when

engines must comply with the NTE; the NTE is an emission standard, and it will be enforced as

an emission standard . . . ." (Emphasis added).

49. In its September 15,2000 Notice, CARB also recognized that its NTE

limit, the ESG limit and MAEL were emission standards. However, after International's written

comments pointed out that adopting new emission standards applicable to MY 2005 engines

would violate the Clean Air Act's lead time and stability requirements, CARB's October 20,

2000 Initial Statement of Reasons asserts that "Staff is not proposing any changes to the existing

emission standards," and claims that the NTE limit, ESC limit and MAEL are "supplemental tesi

procedures."

50. Because each of the NTE limit, ESC limit and MAEL adopted by CARB

increases the stringency of the MY 2005 and subsequent emission standards for heavy-duty

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engines, and CARB intended that such requirements would effect a reduction in the level of

emissions, each of the NTE limit, ESC limit and MAEL adopted by CARB is an emission

standard.

Each of the NTE Limit. ESC Limit, and MAEL Is Technologically Infeasible

51. Under the CAA, CARB is required to demonstrate that each of the NTE

limit, ESC limit and MAEL is technologically feasible. See 42 U.S.C § 7521(a)(3).

52. Each of the NTE limit, ESC limit and MAEL is not technologically

feasible.

53. At the time Resolution 00-53 was adopted, CARB had no evidence that

the NTE limit, ESC limit and MAEL feasibly can be met by MY 2005 or later heavy-duty diesel

engines under all ambient and operating conditions subject to such emission standards.

54. CARB claims that each of the NTE limit, ESC limit and MAEL is feasible

because certain diesel engine manufacturers (not including International) agreed in settlement

agreements with CARB to certify that their diesel engines met such limits before MY 2005.

55. Pursuant to California's Public Records Act, International, in a September

18, 2000 written request to CARB, asked CARB to produce "any and all emission data and

information . . . verifying engine compliance with the certification requirements contained in

[such] settlement agreements,... including, but not limited to, 4Not-to-exceed% [NTE] and other

supplemental testing required thereunder."

56. CARB provided no data to International verifying in-use compliance or

any data demonstrating the NTE limit, ESC limit and MAEL could be met under all the

conditions subject to such requirements.

57. In an October 13, 2000 written Public Records Act request. International

asked that CARB provide "any and all emissions data and information, either in paper or

electronic form, which demonstrates the technical feasibility or infeasibility of the emission

standards, including but not limited to supplemental steady state and Not-to-exceed standards

proposed in CARB's Mail Out 8MSC-00-20 dated September 15,2000 on "Consideration of

Amendments to Adopt Not-To-Exceed and Euro III European Stationary Cycle Emissions

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Standards and Test Procedures For The 2005 And Subsequent Model Year Hcavy-Duty Engines

And Vehicles/'

58. CARB provided no data to International verifying in-use compliance or

any data demonstrating the NTE limit, ESG limit and MAEL could be met under all the

conditions subject to such requirements.

59. In a November 2, 2000 letter to International, CARB stated that it

provided "'random point' or 'mystery point* Euro III testing" data, which the Chief of CARB%s

New Vehicle/Engine Programs Branch "would classify as NTE data," but that $uch branch had

no other "data responsive to your original CPRA request."

60. In a November 13, 2000 Public Records Act request to CARB,

International noted that the Euro III data deals only with steady-state engine operating conditions

under more limited ambient conditions, while "the proposed NTE standard purports to measure

*in-use emissions . . . while operating within a broad range of speed and load points . . . and

under conditions which can reasonably be expected to be encountered in normal operation and

use/" In the November 13,2000 request. International requested "that ARB clearly identify,

whether from Mr. Lyons1 branch or other branches, including but not limited to the Mobile

Source Control Division, all data, in its possession, from in-use operations over wide ambient

conditions under transient and steady-state operations that ARB contends support the proposed

NTE standard."

61. In a January 9,2001 written response, CARB admitted: "All Divisions

within the AIF Resources Board (ARB) have completed their search for related material It has

been determined that the ARB does not have any information regarding the above request."

(Emphasis in original).

62. CARB also relied on the EPA's adoption of a similar federal NTE limit

(albeit for model year 2007 and later engines), as published in the October 6, 2000 Federal

Register, to contend that CARB's proposed NTE limit is "technologically feasible."

/ / /

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63. EPA claimed that its proposed NTE limit was feasible because certain

diesel engine manufacturers (not including International) agreed in Consent Decrees with the

United States of America to certify that their diesel engines met an NTE limit.

64. International served a Freedom of Information Act request on the EPA

seeking any and all emissions data showing that such diesel engine manufacturers were

complying with the NTE emission limits in the Consent Decrees.

65. In an October 31, 2000 response, the EPA admitted that "EPA does not

have any data showing NTE compliance."

66. International provided the EPA's October 31, 2000 response to CARB.

67. In a rule published in the December 31, 2000 Federal Register, the EPA

changed the federal NTE limit from 1.25 times the FTP-based emission standard to 1.5 times the

FTP-based emission standard for certain engines. 66 Fed. Reg. 5002, 5039 (January 18,

2001 );40 C.F.R. § 86.007-1 l(a)(4).

68. The EPA has no emissions data showing that either the superceded federal

NTE limit or the current federal NTE limit is feasible under all the operating conditions to which

it is applicable.

69. The EPA has limited the applicability of its MAEL to a certain category of

engines, far fewer than the CARB MAEL. Moreover, the EPA has no emissions data showing

that its MAEL is technologically feasible under all the operating conditions to which it is

applicable.

" * 70. The EPA has no emissions data showing that its SET emission standard

(equivalent to the CARB ESC limit) is technologically feasible by all engines subject to its

requirements and under all ambient and operating conditions to which it is applicable.

71. C ARB's proposed application of each of its NTE limit, ESC limit and

MAEL to MY 2005 and subsequent heavy duty diesel vehicles provides insufficient time to

permit the development and application of the requisite technology, giving appropriate

consideration to the cost of compliance by such date.

/ / /14

F JX)CS\2 70790.91W97}COMPLAINT FOR DECLARATORY AND 1NJUNCTIVE RELIEF

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72. There is no technology that exists, or is anticipated to be available by MY

2005, that would enable diesel engine manufacturers to certify that a vehicle containing a diesel

engine will comply with the CARB-adopted NTE emission limit under all ambient and operating

conditions subject to the NTE limit that can reasonably be expected to be encountered in normal

vehicle operation and use with such engines.



engine will comply with the CARB-adopted MAEL emission limit under all conditions subject

to the MAEL limit.



engine will comply with the CARB-adopted ESC emission limit under all conditions subject to

the ESC emission limit.

The CARB-Adopted NTE Limit Violates the Lead Time and Stability Requirements

75. Each of CARB's adopted NTE limit, ESC limit and MAEL violates the

mandatory lead time and stability requirements of Section 202(a)(3)(C) of the CAA, 42 U.S.C.

§ 7543(a)(3)(C).

76. Lead time is calculated using full model years. EPA has defined a model

year to include January 2 of the preceding year through December 31 of the model year date.

EPA OMS Advisory Circular No. 6B (December 31,1987). Under that definition, MY 2005

begins on January 2, 2004.

77. Therefore, under the lead time requirement of the CAA, CARB would

have had to have promulgated each of its NTE limit, ESC limit and MAEL by January 2, 2000

for it to apply to MY 2005 and subsequent engines.

78. CARB adopted Resolution 00-53 on December 8,2000. Moreover,

CARB did not submit the CARB-adopted NTE limit, ESC limit or MAEL to the Office of

Administrative Law until June 12, 200 L

/ / /

15FJX>CS\27O7*J0 9 |W<>7|

CX)Mt»l AIMT FOR DECLARATORY AND INJUNCT1VE RELIEF

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79. Therefore, each of the CARB-adopted NTE limit, ESC limit and MAEL

violates the CAA's four year lead time requirement.

80. Under the CAA's stability requirement, any emission standard applicable

to new heavy-duty vehicles or engines must stay in effect for three years before CARB may

establish another emission standard.

81. As set forth in CARB's Initial Statement of Reasons: "In October. 1997.

the U.S. EPA adopted new emission standards for model year 2004 and subsequent model year

HDDEs. In 1999, the ARB subsequently adopted parallel new HDDE standards for the same

model years to harmonize the heavy-duty vehicle regulations between the ARB and the U.S.

EPA."

82. Because new emission standards go into effect for MY 2004 and

subsequent engines in MY 2004, CARB may not lawfully impose new emission standards until

MY 2007 at the earliest.

FIRST CAUSE OF ACTION

(Declaratory and Injunctive Relief Against All Defendants)

(Preemption By 42 U.S.C. § 7543(a))

83. Plaintiff realleges and incorporates paragraphs 1 through 82 above, as

though set forth in full herein.

84. An actual and justiciable controversy has arisen and now exists between

Plaintiff and Defendants concerning whether each of the CARB-adopted NTE limit, ESC limit

and MAEL is-preempted under the CAA.

85. Under Section 209(a) of the CAA, exclusive control over 4%standard[s]

relating to the control of emissions from new motor vehicles or new motor vehicle engines** is

vested in the federal government, and the states are preempted from regulating in the area. See

42 U.S.C. § 7543(a).

86. International seeks, and CARB rejects, a determination that each of

CARB's NTE limit, ESC limit and MAEL is preempted by Section 209(a) of the CAA, 42

U.S.C. § 7543(a).

16 'FJX)CS\27O790 9 JW97]


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87. CARB has failed to obtain a preemption waiver for each of the KTE lima,

ESC limit and MAEL from the EPA pursuant to 42 U.S.C. § 7543(b). Each of the CARB-

adopted NTE limit, ESC limit and MAEL therefore is preempted under Section 209(a) of the

CAA.

88. Moreover, even if it were to apply, which it has not, CARB cannot obtatn

a waiver of federal preemption for any of the CARB-adopted NTE limit, ESC limit and MAEL

pursuant to Section 209(b) of the CAA, 42 U.S.C. § 7543(b).

89. Pursuant to Section 209(b) of the CAA, the EPA Administrator must deny

a waiver application if California's standards and accompanying enforcement procedures arc not

consistent with Section 202(a) of the CAA, 42 U.S.C. § 7521(a). See 42 U.S.C. § 7543(b)(l).

90. To be consistent with CAA § 202(a), each of the CARB-adopted NTE

limit, ESC limit and MAEL must be technologically feasible as required by 42 U.S.C.

§ 752l(a)(2). Each of the CARB-adopted NTE limit, ESC limit and MAEL is not

technologically feasible.

91. International requests a judicial determination of its rights and duties, and

a declaration that: (a) each of CARB's NTE limit, ESC limit and MAEL is preempted under

Section 209(a) of the Act; and (b) CARB cannot obtain a preemption waiver under Section

209(b) of the Act. Engineering, designing and preparing to manufacture heavy duty diesel

engines to meet regulatory standards while maintaining performance requires many years

advance warning of regulatory requirements. International has already invested substantial

engineering and design time and resources to develop engines to meet the 2004 emission

standard, and that work is not yet complete. Absent a ruling from this Court, International will

be forced to divert its scarce engineering and design time and resources to address CARB's

patently unlawful NTE limit, ESC limit, and MAEL, despite the technological infeasibility of

demonstrating compliance with such emission standards. A judicial declaration is necessary and

appropriate at this time and under these circumstances. Absent a ruling at this time, International

A'ill suffer irreparable injury. International further seeks injunctive relief to restrain

17F_l)OCS 270300') |W07|

COMPLAihTT FOR DECLARATORY AND INJUNCTIVE RELIEF

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implementation and enforcement of each of the CARB-adopted NTE limit, ESC limit and

MAEL

SECOND CAUSE OF ACTION

(Declaratory and Injunctive Relief Against AH Defendants)

(Preemption By 42 U.S.C. § 7543(a))





and MAEL is preempted under the CAA.

94. Under Section 209(a) of the CAA, exclusive control over *4standard[s]

relating to the control of emissions from new motor vehicles or new motor vehicle engines" is

vested in the federal government, and the states are preempted from regulating in the area. See

42 U.S.C. § 7543(a).

95. International seeks, and CARB rejects, a determination that each of

CARB's NTE limit, ESC limit and MAEL is preempted by Section 209(a) of the CAA, 42

U.S.C. § 7543(a).

96. CARB has failed to obtain a preemption waiver for each of the NTE limit,

ESC limit and MAEL from the EPA pursuant to 42 U.S.C. § 7543(b). Each of the CARB-

adopted NTE limit, ESC limit and MAEL therefore is preemptedlinder Section 209(a) of the

CAA.

97. Moreover, even if it were to apply, which it has not, CARB cannot obtain

a waiver of federal preemption for any of the CARB-adopted NTE limit, ESC limit and MAEL

pursuant to Section 209(b) of the CAA, 42 U.S.C. § 7543(b).

98. Pursuant to Section 209(b) of the CAA, the EPA Administrator must deny

a waiver application if California's standards and accompanying enforcement procedures are not

consistent with Section 202(a) of the CAA, 42 U.S.C. § 752l(a). See 42 U.S.C. § 7543(b)(l).

/ / /

18r jx>csa7u7<)0 o [wn\


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99. To be consistent with CAA § 202(a), each of the CARB-adopted NTE

limit, ESC limit and MAEL must comply with the mandatory four-year lead time and three-year

stability requirements set forth in Section 202(a)(3)(C) of the Act, 42 U.S.C. § 752i(a)(3)(C).

By imposing each of the NTE limit, ESC limit and MAEL on MY 2005 and subsequent heavy

duty diesel engines, CARB has violated the lead time and stability requirements of the CAA.


a declaration that: (a) each of CARB *s NTE limit, ESC limit and MAEL is preempted under










appropriate at this time and under these circumstances. Absent a ruling at this time, International

will suffer irreparable injury. International further seeks injunctive relief to restrain


MAEL. . ~

THIRD CAUSE OF ACTION


(Preemption By 42 U.S.C. § 7521 (a))




Plaintiff and Defendants concerning whether each of the CARB-adopted NTE limit, ESC limit -

and MAEL is preempted by Section 202(a) of the CAA.

19;F_DOCS\27079Q 9 [W97J


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103. International seeks, and C ARB rejects, a determination that each of the

NTE limit, ESC limit and MAEL is preempted under Section 202(a) of the CAA because each of

the NTE limit, ESC limit and MAEL stands as an obstacle to the accomplishment and execution

of the full purposes and objectives of Congress in adopting Section 202(a). Congress intended

(and expressly provided) that any standard relating to the control of emissions from new motor

vehicles or new motor vehicle engines be technologically feasible. See 42 U.S.C. § 7521(a){3).

104. CARB's adoption of the technologically infeasible NTE limit, ESC limit

and MAEL for MY 2005 and later heavy duty diesel engines stands as an obstacle to the

accomplishment and execution of the purposes and objectives of Congress in adopting these

provisions of Section 202(a) of the CAA.












appropriate at this time and under these circumstances. Absent a ruling at this time. International



MAEL.

/ / /

' / /

/ /20

i_DOCSV2 7O7«X) *) | VV97 JCOMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

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FOURTH CAUSE OF ACTION


(Preemption By 42 U.S.C. § 7521 (a))

106. Plaintiff realleges and incorporates paragraphs I through 105 above, as




and MAEL is preempted by Section 202(a) of the CAA.

108. International seeks, and CARB rejects, a determination that each of the

NTE limit, ESC limit and MAEL is preempted under Section 202(a) of the CAA because each of

the NTE limit, ESC limit and MAEL stands as an obstacle to the accomplishment and execution

of the full purposes and objectives of Congress in adopting Section 202(a). With respect to

emission standards for heavy-duty diesel engines, Congress intended (and expressly provided)

that manufacturers be provided with (a) a four-year lead time period before a new standard is

implemented, and (b) a three-year period of regulatory stability before any existing standard is

changed. See 42 U.S.C. § 7521(a)(3)(C).

109. CARB's adoption of the NTE limit, ESC limit and MAEL for MY 2005

and later heavy duty diesel engines without providing sufficient lead time and stability stands as

an obstacle to the accomplishment and execution of the purposes and objectives of Congress in

adopting these provisions of Section 202(a) of the CAA. •

• - 110. International requests a judicial determination of its rights and duties, and



209(b) of the Act, Engineering, designing and preparing to manufacture heavy duty diesel





21 ^_j;FJ)OCS\270790 «J IWV7J


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patently unlawful NTE limit. ESC limit, and MAEL, despite the technological infeasibility of


appropriate at this time and under these circumstances. Absent a ruling at this time. International



MAEL

PRAYER FOR RELIEF

WHEREFORE, Plaintiff prays for judgment in its favor and against Defendants,

and each of them, as follows:

1. For a judgment declaring that each of CARB's NTE limit, ESC limit and

MAEL for MY 2005 and later heavy duty vehicles is preempted pursuant to the Supremacy

Clause of the United States Constitution by Section 209(a) of the Clean Air Act, 42 U.S.C.

§ 7543(a), because Defendants have not obtained a waiver of federal preemption pursuant to 42

U.S.C. § 7543(b).

2. For a judgment declaring that each of CARB's NTE limit, ESC limit and

MAEL for MY 2005 and later heavy duty vehicles is preempted pursuant to the Supremacy

Clause of the United States Constitution by Section 209(a) of the CAA because, even if

Defendants were to apply for a preemption waiver pursuant to Section 209(b), no such waiver is

available as each of the NTE limit, ESC limit and MAEL is inconsistent with the requirements of

Section 202(a) of the CAA, 42 U.S.C. § 752i(a).

3. For a judgment declaring that each of NTE limit, ESC limit and MAEL for

MY 2005 and later heavy duty diesel vehicles is preempted pursuant to the Supremacy Clause of

he United States Constitution by Section 202(a) of the CAA because each of the NTE limit,

ESC limit and MAEL: (i) is technologically infeasible under Section 202(a)(3)(A), 42 U.S.C.

§*752l(a)(3)(A), and (ii) violates the lead time and stability requirements of Section

202(a)(3)(C), 42 U.S.C. § 7521(a)(3)(C). Each of the NTE limit, ESC limit and MAEL therefore

22;FJX>CS\27O790*)[W97}


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stands as an obstacle to the accomplishment and execution of the full purposes and objectives of ;

Congress set forth in the Act.

4. For an injunction restraining Defendants from implementing and enforcing ;

each of the NTE limit, ESC limit and N4AEL adopted by CARB. — ~ ]

Dated: June 27, 2001

&

Respectfully submitted.

LATHAM & W ATKINSLaurence H. LevineRichard W. RaushenbushPatricia Guerrero

Bv y^T^yf C*S <^U/^ <—^"Richard W. Raushenbush

Attorneys for PlaintiffInternational Truck and Engine Corporation

23T.lXX*S\27U7Wi|W*)7|


p.o. box 8477 harrisburg, pa. 17105-8477 (717)787-4526

Environmental Quality BoardNovember 15, 2001

Original: 2211 ; '

Mr. Robert E. Nyce, Executive Director rr

Independent Regulatory Review Commission14th Floor, Harristown #2 '; L:333 Market Street :; a?Harrisburg, PA 17120 c :^

Re: Proposed Rulemaking - Heavy-Duty Diesel Emissions Control Program (#7-365)

Dear Mr. Nyce:

Enclosed are copies of the official verbatim transcripts for the public hearings theEnvironmental Quality Board recently held on the proposed heavy-duty diesel emissions controlprogram.

If you have any questions, please call me.

Sincerely,

JddLSharon F. TrostleRegulatory Coordinator

Enclosure

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8

1 submit written comments in addition

2 to or in place of oral testimony

3 presented here. All comments must

4 be the Environmental Quality Board

5 by November 7th, 2001. Comments

6 should be addressed to the

7 Environmental Quality Board, Post

8 Office Box 8477, Harrisburg,

9 Pennsylvania 17105-8477.

10 All comments received at

11 today's hearing and in writing by

12 November 7th will be considered by

13 the EQB and become part of the

14 comment response prepared for the

15 EQB 1s review prior to taking final

16 action on this regulation. Anyone

17 interested in the transcript of this

18 hearing may contact the Reporter

19 here today to arrange to purchase a

2 0 copy.

21 I will now call the first

22 witness or any witness who would

23 like to make a statement. We'll

24 wait for 10 or 15 minutes just in

25 case someone shows up.


9

1 SHORT BREAK TAKEN

2 MR. HALL:

3 I call this meeting

4 adjourned since no witnesses have

5 come forward. That concludes our

6 business for today.

7 * * * * * * * * *

8 PUBLIC MEETING CONCLUDED 1:22 P.M.

9 * * * * * * * * *

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C E R T I F I C A T E

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I N D E X

OPENING STATEMENT

By C h a i r m a n

STATEMENT

By G a r y B r o w n


5 - 9

- 1 6

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E X H I B I T S

Numbe r Description

NONE OFFERED

Page

Offered

Sargent's Court Reporting Service, Inc.(8 14) 536-8908

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I S A TRUE AND ACCURATE RECORD THEREOF,

SARGENT'S COURT REPORTING SERVICE, I N C .

COURT REPORTER

•PITTSBURGH, FA

• CU'ARHEU), PA

•STATE COLLEGE. PA

•HOLLIDAYSBURG, PA

•ERIE, PA

•OIL CITY. PA

•HARRISBURG, PA


SERVICE, INC.210 Main Street

Johnstown, PA 15901(814)556 8908

•INDIANA, PA

•GREENSBURG, PA

• PHILADELPHIA, PA

•SOMERSET, PA

•WILKES-BARRE, PA

•CHARLESTON, WV

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C O M M O N W E A L T H O F P E N N S Y L V A N I A

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P e n n s y l v a n i a ' s A i r Q u a l i t y R e g u l a t i o n s

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Sargent's Court Reporting Service, Inc.(814) 536-8 908

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IS A TRUE AND ACCURATE RECORD THEREOF-

SARGENT'S COURT REPORTING SERVICE, INC,

COURT REPORTER

•PITTSBURGH, PA

•CXEARFIFI.D, PA

• STATE COLLEGE, PA

•HOLLIDAYSBURG, PA

•ERIE, PA

•Oil. CITY, PA

•HARR1SBURG, PA


SERVICE, INC.210 Main Street

Johnstown, PA 15901<81-f)S 36-8908

•INDIANA, PA

•GREENSBURG, PA

• PHILADELPHIA, PA

•SOMERSET, PA

•WILKESBARRE, PA

•CHARLESTON, WV