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Regulatory	
  Hurdles	
  for	
  Natural	
  Gas	
  Vehicles
Developed	
  by	
  the	
  Shale	
  Gas	
  Innova3on	
  &	
  Commercializa3on	
  Center
November	
  2012

The	
  Shale	
  Gas	
  Revolu.on	
  is	
  now	
  firmly	
  entrenched	
  in	
  the	
  public’s	
  imagina.on	
  as	
  a	
  result	
  of	
  the	
  steady	
  
decline	
  of	
  natural	
  gas	
  prices	
  from	
  above	
  $4.00/mcf	
  (mcf=thousand	
  cubic	
  feet)	
  to	
  $2.00/mcf	
  and	
  below.	
  	
  
At	
  the	
  same	
  .me,	
  oil	
  prices	
  have	
  spiked	
  and	
  remained	
  high,	
  typically	
  between	
  $85	
  and	
  $100	
  per	
  barrel.	
  	
  
This	
  has	
  caused	
  gasoline	
  prices	
  to	
  soar	
  above	
  $3.50	
  per	
  gallon	
  at	
  their	
  highest	
  point,	
  feeding	
  public	
  
discontent	
  and	
  consterna.on	
  at	
  the	
  cost	
  of	
  driving	
  to	
  work	
  and	
  other	
  ac.vi.es.	
  	
  Naturally,	
  the	
  public	
  has	
  
prompted	
  its	
  leaders	
  for	
  solu.ons,	
  and	
  one	
  that	
  has	
  been	
  discussed	
  regularly	
  is	
  the	
  use	
  of	
  natural	
  gas	
  as	
  
a	
  transporta.on	
  fuel.	
  	
  At	
  current	
  prices,	
  consumers	
  might	
  save	
  up	
  to	
  60%	
  of	
  their	
  fuel	
  costs	
  and	
  spend	
  
more	
  of	
  their	
  money	
  with	
  domes.c	
  producers	
  instead	
  of	
  foreign	
  oil	
  suppliers.

Despite	
  the	
  public	
  clamor	
  for	
  using	
  natural	
  gas	
  in	
  vehicles,	
  there	
  has	
  been	
  only	
  limited	
  progress.	
  	
  As	
  
could	
  be	
  expected,	
  this	
  has	
  led	
  to	
  some	
  frustra.on	
  and	
  a	
  search	
  for	
  solu.ons	
  ranging	
  from	
  
infrastructure	
  spending	
  to	
  tax	
  credits	
  and	
  financial	
  incen.ves	
  to	
  adopt	
  the	
  technologies	
  associated	
  with	
  
natural	
  gas	
  vehicles.	
  	
  Unfortunately,	
  many,	
  if	
  not	
  all,	
  of	
  these	
  efforts	
  face	
  difficul.es	
  due	
  to	
  the	
  
regulatory	
  framework	
  that	
  surrounds	
  vehicle	
  and	
  engine	
  technology	
  at	
  various	
  levels	
  both	
  in	
  
government	
  and	
  industry.	
  	
  Together,	
  they	
  form	
  the	
  coils	
  of	
  a	
  Gordian	
  knot	
  that	
  restricts	
  the	
  deployment	
  
of	
  natural	
  gas	
  vehicles	
  and	
  other	
  types	
  of	
  alterna.ve	
  fuel	
  vehicles.	
  	
  The	
  regula.ons	
  are	
  confusing	
  and	
  
oVen	
  overlap.	
  	
  They	
  can	
  also	
  add	
  considerable	
  expense	
  to	
  the	
  introduc.on	
  of	
  an	
  engine	
  technology.	
  	
  
The	
  purpose	
  of	
  this	
  paper	
  is	
  to	
  outline	
  the	
  regula.ons	
  in	
  a	
  coherent	
  manner	
  and	
  discuss	
  their	
  
applicability	
  to	
  natural	
  gas	
  vehicle	
  development.

Some	
  important	
  terms	
  and	
  defini.ons	
  used	
  in	
  discussing	
  the	
  regula.ons	
  are	
  as	
  follows:

      •     NGV:	
  	
  This	
  abbrevia.on	
  stands	
  for	
  Natural	
  gas	
  vehicle	
  and	
  is	
  used	
  frequently	
  in	
  the	
  literature.

      •     Dedicated:	
  	
  A	
  dedicated	
  natural	
  gas	
  system	
  means	
  that	
  the	
  vehicle’s	
  engine	
  is	
  configured	
  to	
  only	
  
            run	
  on	
  natural	
  gas,	
  either	
  in	
  compressed	
  gas	
  or	
  liquid	
  form.

      •     Bi-­‐Fuel	
  and	
  Dual	
  Fuel:	
  	
  In	
  common	
  parlance,	
  a	
  bi-­‐fuel	
  system	
  allows	
  the	
  operator	
  to	
  select	
  either	
  
            natural	
  gas	
  or	
  a	
  liquid	
  fuel	
  (gasoline	
  or	
  diesel)	
  as	
  the	
  vehicle	
  fuel,	
  while	
  a	
  dual-­‐fuel	
  system	
  uses	
  
            both	
  natural	
  gas	
  and	
  a	
  liquid	
  fuel	
  simultaneously	
  in	
  some	
  ra.o.	
  	
  In	
  the	
  former	
  the	
  vehicle	
  runs	
  
            en.rely	
  on	
  natural	
  gas	
  or	
  liquid	
  fuel,	
  depending	
  on	
  the	
  choice.	
  	
  This	
  op.on	
  allows	
  for	
  flexibility	
  
            in	
  choosing	
  the	
  fuel,	
  and	
  alleviates	
  the	
  problem	
  of	
  opera.ng	
  in	
  areas	
  without	
  natural	
  gas	
  fueling	
  
            sta.ons.	
  	
  In	
  the	
  laer,	
  both	
  are	
  mixed	
  according	
  to	
  availability	
  or	
  some	
  opera.ng	
  constraint.	
  	
  It	
  
            offers	
  flexibility	
  as	
  well—most	
  systems	
  will	
  run	
  on	
  diesel	
  alone—and	
  is	
  intended	
  to	
  provide	
  
            maximum	
  savings	
  in	
  heavy	
  use	
  situa.ons	
  where	
  natural	
  gas	
  op.ons	
  may	
  be	
  limited.	
  	
  However,	
  
            in	
  many	
  cases	
  these	
  two	
  terms	
  are	
  used	
  interchangeably,	
  and	
  some	
  regula.ons	
  cite	
  the	
  exact	
  
            opposite	
  defini.on	
  for	
  each.	
  	
  Thus,	
  the	
  defini3ons	
  are	
  not	
  fixed,	
  and	
  readers	
  should	
  review	
  the	
  
            context	
  and	
  situa.on	
  to	
  understand	
  which	
  defini.on	
  is	
  being	
  used	
  for	
  a	
  term.

                                                                                  1
•     CNG	
  and	
  LNG:	
  	
  These	
  terms	
  refer	
  to	
  the	
  two	
  basic	
  storage	
  systems	
  for	
  natural	
  gas	
  fuel.	
  	
  
           Compressed	
  natural	
  gas	
  or	
  CNG	
  is	
  simply	
  natural	
  gas	
  stored	
  under	
  pressure,	
  so	
  that	
  more	
  fuel	
  
           may	
  occupy	
  a	
  smaller	
  space.	
  	
  LNG,	
  or	
  Liquified	
  natural	
  gas	
  is	
  stored	
  as	
  a	
  liquid	
  and	
  converted	
  to	
  
           gas	
  just	
  before	
  use.	
  	
  Most	
  applica.ons	
  use	
  CNG	
  systems	
  because	
  LNG	
  systems	
  require	
  complex	
  
           storage	
  systems,	
  cryogenic	
  temperatures,	
  and	
  high	
  pressure	
  compression	
  facili.es	
  to	
  
           manufacture	
  and	
  use.	
  	
  On	
  the	
  other	
  hand,	
  LNG	
  does	
  maximize	
  the	
  energy	
  density	
  of	
  natural	
  gas	
  
           by	
  turning	
  it	
  into	
  a	
  liquid.

     •     Conversion:	
  	
  This	
  term	
  refers	
  to	
  the	
  process	
  of	
  installing	
  a	
  cer.fied	
  natural	
  gas	
  fuel	
  system	
  into	
  
           an	
  exis.ng	
  vehicle	
  which	
  runs	
  on	
  a	
  liquid	
  fuel	
  system.	
  	
  Conversions	
  generally	
  create	
  bi-­‐fuel	
  or	
  
           dual	
  fuel	
  vehicles,	
  but	
  can	
  also	
  create	
  a	
  dedicated	
  NGV.	
  	
  Of	
  course,	
  vehicles	
  may	
  also	
  be	
  sold	
  
           new	
  with	
  any	
  type	
  of	
  natural	
  gas	
  fuel	
  system,	
  if	
  the	
  NGV	
  is	
  cer.fied	
  by	
  the	
  EPA	
  and/or	
  CARB,	
  
           depending	
  on	
  the	
  state.

     •     Mixer	
  or	
  Venturi	
  Systems:	
  	
  These	
  are	
  simple	
  fuel	
  systems	
  which	
  introduce	
  a	
  natural	
  gas	
  stream	
  
           into	
  the	
  engine	
  fuel	
  system	
  at	
  a	
  constant	
  rate.	
  	
  Some	
  debate	
  exists	
  as	
  to	
  whether	
  or	
  not	
  they	
  
           can	
  create	
  significant	
  savings	
  for	
  vehicle	
  operators.

     •     Sequen3al	
  Injec3on	
  Systems:	
  	
  These	
  systems	
  introduce	
  the	
  natural	
  gas	
  into	
  the	
  engine	
  system	
  
           at	
  a	
  variable	
  rate,	
  determined	
  by	
  the	
  engine	
  computer’s	
  opera.ng	
  parameters.	
  	
  They	
  are	
  more	
  
           sophis.cated	
  and	
  poten.ally	
  more	
  cost-­‐effec.ve	
  to	
  operate	
  than	
  the	
  simpler	
  Venturi	
  systems.

     •     CARB:	
  	
  This	
  refers	
  to	
  the	
  California	
  Air	
  Resources	
  Board,	
  the	
  California	
  rule-­‐making	
  body	
  for	
  
           emissions	
  regula.ons,	
  whose	
  decisions	
  have	
  a	
  na.onal	
  impact.	
  

Regula.ng	
  bodies	
  also	
  classify	
  vehicles	
  by	
  type.	
  	
  Generally,	
  these	
  classifica.ons	
  are	
  based	
  on	
  the	
  vehicle	
  
size	
  and	
  primary	
  use.	
  	
  The	
  EPA	
  and	
  other	
  bodies	
  typically	
  use	
  the	
  following	
  broad	
  classifica.ons	
  to	
  
describe	
  vehicle	
  requirements:

     •     Passenger	
  Cars	
  and	
  Light	
  Duty	
  Trucks:	
  	
  Are	
  the	
  smallest	
  and	
  most	
  widely	
  used	
  vehicles	
  available	
  
           to	
  the	
  public.	
  	
  In	
  general,	
  these	
  vehicles	
  are	
  rated	
  at	
  8500	
  lbs.	
  gross	
  vehicle	
  weight	
  or	
  less.	
  	
  This	
  
           is	
  by	
  far	
  the	
  largest	
  category	
  of	
  vehicles.

     •     Medium	
  Duty	
  Vehicles:	
  	
  Are	
  used	
  in	
  a	
  variety	
  of	
  roles,	
  mostly	
  commercial,	
  and	
  are	
  typically	
  
           rated	
  between	
  8500	
  lbs.	
  and	
  14,000	
  lbs.	
  gross	
  vehicle	
  weight.

     •     Heavy	
  Duty	
  Vehicles	
  and	
  Trucks:	
  	
  Are	
  large	
  commercial	
  vehicles	
  rated	
  at	
  over	
  14,000	
  lbs.	
  gross	
  
           vehicle	
  weight.

     •     Off-­‐Road:	
  	
  This	
  term	
  refers	
  to	
  specialty	
  vehicles	
  that	
  are	
  not	
  intended	
  for	
  highway	
  use.	
  	
  The	
  
           other	
  three	
  classifica.ons	
  all	
  represent	
  “on-­‐road”	
  vehicles	
  that	
  are	
  intended	
  to	
  travel	
  on	
  
           highways	
  and	
  streets	
  with	
  other	
  traffic.	
  	
  Off-­‐road	
  vehicles	
  are	
  typically	
  special	
  commercial	
  and	
  
           industrial	
  vehicles	
  like	
  construc.on	
  or	
  mining	
  equipment.	
  	
  They	
  are	
  regulated	
  separately	
  from	
  
           on-­‐road	
  vehicles.




                                                                                    2
In	
  addi.on	
  to	
  these	
  broad	
  classifica.ons	
  that	
  are	
  used	
  by	
  the	
  states	
  and	
  the	
  federal	
  government,	
  more	
  
specific	
  classifica.ons	
  exist	
  within	
  these	
  broad	
  categories.	
  	
  These	
  more	
  specific	
  classifica.ons	
  are	
  usually	
  
based	
  on	
  engine	
  displacement	
  (size	
  or	
  capacity	
  of	
  the	
  cylinders)	
  and	
  engine	
  use.	
  	
  For	
  example,	
  one	
  
classifica.on	
  might	
  be	
  14	
  liter	
  and	
  larger	
  engines	
  for	
  heavy-­‐duty,	
  over-­‐the-­‐road	
  tractors	
  (typical	
  
eighteen	
  wheel	
  tractor-­‐trailer	
  rig).	
  	
  Natural	
  gas	
  vehicles	
  (NGV’s)	
  must	
  meet	
  and	
  adhere	
  to	
  regula.ons	
  
and	
  standards	
  issued	
  or	
  used	
  by	
  the	
  federal	
  government,	
  na.onal	
  safety	
  bodies,	
  state	
  governments,	
  and	
  
the	
  insurance	
  industry.	
  	
  The	
  rules	
  vary	
  by	
  classifica.on.


Federal	
  and	
  National	
  Regulations
             General	
  EPA	
  Regulations

The	
  Environmental	
  Protec.on	
  Agency	
  (EPA)	
  became	
  the	
  chief	
  federal	
  regulatory	
  body	
  with	
  jurisdic.on	
  
over	
  engine	
  technology	
  and	
  fuel	
  by	
  virtue	
  of	
  its	
  role	
  in	
  the	
  1973	
  Clean	
  Air	
  Act	
  (Act).	
  	
  The	
  Act	
  established	
  
the	
  EPA	
  as	
  the	
  expert	
  agency	
  to	
  regulate	
  vehicle	
  and	
  engine	
  emissions	
  for	
  the	
  purpose	
  of	
  reducing	
  
pollutants	
  like	
  sulfur	
  dioxide,	
  nitrous	
  oxide	
  (NOx),	
  lead,	
  and	
  par.culate	
  maer.	
  	
  In	
  1973,	
  the	
  EPA	
  
established	
  goals	
  and	
  standards	
  for	
  a	
  list	
  of	
  pollutants	
  and	
  forced	
  the	
  automo.ve	
  industry	
  to	
  adopt	
  
various	
  technologies	
  to	
  decrease	
  emissions.	
  	
  Among	
  these	
  were	
  the	
  advent	
  of	
  unleaded	
  gasoline	
  and	
  the	
  
mandatory	
  use	
  of	
  cataly.c	
  converters.	
  	
  

Since	
  1973,	
  the	
  EPA	
  has	
  modified	
  its	
  exis.ng	
  standards	
  and	
  added	
  new	
  ones	
  in	
  order	
  to	
  con.nually	
  
decrease	
  emissions	
  of	
  harmful	
  substances,	
  making	
  its	
  automo.ve	
  emissions	
  regula.ons	
  arguably	
  the	
  
most	
  stringent	
  in	
  the	
  world.	
  	
  It	
  has	
  also	
  required	
  that	
  all	
  engine	
  and	
  air	
  quality	
  technology	
  on	
  vehicles	
  
meet	
  its	
  emission	
  standards.	
  	
  All	
  vehicle	
  engines	
  (and	
  other	
  internal	
  combus.on	
  engines)	
  are	
  governed	
  
by	
  one	
  of	
  the	
  EPA’s	
  vehicle	
  regulatory	
  regimes	
  and	
  must	
  adhere	
  to	
  its	
  specific	
  set	
  of	
  regula.ons.	
  	
  All	
  
engines	
  in	
  general	
  public	
  or	
  commercial	
  use	
  must	
  be	
  cer.fied	
  to	
  meet	
  these	
  standards,	
  and	
  no	
  changes	
  
to	
  those	
  engines	
  may	
  be	
  made	
  without	
  EPA	
  approval	
  and	
  cer.fica.on	
  to	
  meet	
  emission	
  standards.	
  	
  
Otherwise,	
  the	
  modifica.ons	
  are	
  deemed	
  to	
  be	
  “tampering”.	
  	
  Tampered	
  vehicles	
  may	
  not	
  be	
  sold	
  or	
  
used	
  legally	
  in	
  the	
  United	
  States.	
  	
  All	
  vehicles	
  must	
  have	
  EPA	
  cer.fica.on	
  to	
  operate	
  or	
  be	
  sold.	
  	
  

In	
  1997,	
  the	
  EPA	
  altered	
  its	
  cer.fica.on	
  policies	
  to	
  specifically	
  address	
  alterna.ve	
  fuels	
  and	
  the	
  new	
  
engine	
  technologies	
  that	
  they	
  created.	
  	
  The	
  purpose	
  was	
  to	
  encourage	
  the	
  use	
  of	
  alterna.ve	
  fuels	
  in	
  
vehicles	
  that	
  held	
  the	
  promise	
  of	
  further	
  emissions	
  reduc.ons.	
  	
  This	
  was	
  par.cularly	
  important	
  at	
  that	
  
.me	
  as	
  the	
  EPA	
  began	
  to	
  consider	
  the	
  effects	
  of	
  carbon	
  dioxide	
  emissions	
  on	
  global	
  warming,	
  based	
  on	
  
the	
  United	
  Na.ons	
  climate	
  studies	
  which	
  had	
  just	
  been	
  published.	
  	
  Included	
  in	
  the	
  group	
  of	
  alterna.ve	
  
fuels,	
  along	
  with	
  ethanol,	
  bio-­‐diesel,	
  other	
  bio-­‐fuels,	
  and	
  propane,	
  was	
  natural	
  gas.	
  	
  At	
  the	
  .me,	
  it	
  was	
  
not	
  seen	
  as	
  a	
  par.cularly	
  viable	
  fuel,	
  and	
  there	
  were	
  no	
  specific	
  parameters	
  included	
  in	
  the	
  regula.ons	
  
for	
  natural	
  gas	
  use	
  or	
  NGV’s.	
  	
  All	
  fuels	
  essen.ally	
  followed	
  the	
  same	
  set	
  of	
  regula.ons.

The	
  1997	
  regula.ons	
  spelled	
  out	
  a	
  cer.fica.on	
  process	
  for	
  alterna.ve	
  fuels.	
  	
  They	
  reinforced	
  the	
  need	
  
for	
  federal	
  approval	
  and	
  s.ll	
  prohibited	
  “tampering”	
  with	
  any	
  engine	
  to	
  alter	
  it	
  to	
  use	
  alterna.ve	
  fuels.	
  	
  
The	
  EPA	
  defined	
  tampering	
  as	
  any	
  modifica.on	
  or	
  altera.on	
  to	
  the	
  engine	
  that	
  might	
  change	
  its	
  
performance,	
  behavior,	
  or	
  emissions	
  output	
  without	
  proper	
  EPA	
  cer.fica.on	
  or	
  verifica.on	
  that	
  this	
  was 	
  
not	
  the	
  case.	
  	
  The	
  regula.ons	
  reiterated	
  prohibi.ons	
  against	
  tampering,	
  and	
  viola.ons	
  of	
  tampering	
  


                                                                                    3
rules	
  can	
  result	
  in	
  substan.al	
  fines	
  and	
  other	
  penal.es.	
  	
  Based	
  on	
  the	
  construc.on	
  of	
  the	
  regula.ons,	
  it	
  
appears	
  that	
  any	
  par.cular	
  modifica.on	
  to	
  any	
  par.cular	
  engine	
  must	
  be	
  cer.fied	
  by	
  the	
  EPA	
  through	
  
its	
  tes.ng	
  procedures	
  to	
  be	
  legal	
  for	
  use	
  on	
  roads	
  and	
  to	
  prevent	
  an.-­‐tampering	
  enforcement	
  ac.ons.	
  	
  
State	
  motor	
  vehicle	
  departments	
  were	
  charged	
  with	
  iden.fying	
  instances	
  of	
  tampering	
  through	
  their	
  
vehicle	
  inspec.ons	
  processes.	
  	
  Some	
  excep.ons	
  exist	
  to	
  these	
  regula.ons,	
  including	
  vehicles	
  and	
  
engines	
  classified	
  for	
  “off-­‐road”	
  use,	
  which	
  were	
  not	
  intended	
  for	
  opera.on	
  on	
  highways.	
  	
  By	
  defini.on,	
  
any	
  type	
  of	
  conversion	
  to	
  natural	
  gas	
  use	
  on	
  an	
  exis.ng	
  engine	
  would	
  qualify	
  as	
  tampering,	
  if	
  the	
  
conversion	
  were	
  not	
  cer.fied	
  for	
  that	
  par.cular	
  engine.	
  	
  All	
  new	
  NGV’s	
  would	
  of	
  necessity	
  have	
  to	
  be	
  
cer.fied	
  by	
  EPA	
  in	
  order	
  to	
  be	
  approved	
  for	
  sale	
  in	
  the	
  United	
  States,	
  and	
  cer.fied	
  by	
  CARB	
  in	
  states	
  
that	
  adopted	
  CARB	
  emissions	
  regula.ons.

The	
  cer.fica.on	
  requirements	
  consist	
  of	
  tes.ng	
  on	
  the	
  engine	
  or	
  altered	
  or	
  converted	
  engine	
  
performed	
  by	
  a	
  laboratory	
  that	
  can	
  perform	
  all	
  or	
  some	
  of	
  the	
  required	
  exhaust	
  and	
  evapora.ve	
  
emissions	
  tes.ng	
  required	
  by	
  the	
  EPA.	
  	
  The	
  EPA	
  maintains	
  a	
  list	
  of	
  laboratories	
  that	
  can	
  perform	
  all	
  or	
  
part	
  of	
  the	
  tes.ng,	
  but	
  does	
  not	
  endorse	
  or	
  approve	
  test	
  laboratories.	
  	
  EPA	
  may	
  perform	
  confirmatory	
  
tes.ng	
  at	
  its	
  own	
  expense.	
  	
  Specific	
  tes.ng	
  procedures	
  depend	
  on	
  the	
  type	
  of	
  vehicle:	
  	
  light	
  duty,	
  
medium	
  duty,	
  heavy	
  duty,	
  off-­‐road,	
  etc.	
  	
  In	
  general,	
  the	
  tes.ng	
  regimes	
  consist	
  of	
  specific	
  cycles	
  of	
  
engine	
  loading	
  and	
  simultaneous	
  emissions	
  tes.ng.	
  	
  For	
  on-­‐road	
  applica.ons,	
  the	
  tests	
  are	
  done	
  on	
  
dynamometers	
  to	
  ensure	
  that	
  condi.ons	
  and	
  engine	
  loading	
  are	
  the	
  same	
  for	
  each	
  class	
  of	
  vehicles.	
  	
  
Hence,	
  emissions	
  from	
  vehicles	
  in	
  the	
  same	
  class	
  can	
  be	
  directly	
  compared	
  to	
  each	
  other	
  and	
  emission	
  
standards	
  developed	
  for	
  that	
  class	
  as	
  a	
  whole.	
  	
  Typically,	
  this	
  tes.ng	
  requires	
  over	
  1000	
  hours	
  of	
  
dynamometer	
  tes.ng	
  as	
  reported	
  by	
  various	
  sources.	
  	
  There	
  are	
  also	
  some	
  other	
  types	
  of	
  mechanical	
  
and	
  chemical	
  tes.ng	
  that	
  are	
  incorporated	
  with	
  these	
  engine	
  loading	
  tests.	
  	
  Thus,	
  cer.fica.on	
  requires	
  a 	
  
commitment	
  to	
  extensive	
  tes.ng.	
  	
  Auto	
  and	
  engine	
  manufacturers	
  and	
  OEM’s	
  already	
  conform	
  to	
  this	
  
system	
  with	
  each	
  new	
  product.

In	
  2011,	
  the	
  EPA	
  announced	
  that	
  it	
  would	
  streamline	
  its	
  regula.ons	
  with	
  regard	
  to	
  alterna.ve	
  fuel	
  
conversions	
  on	
  exis.ng	
  vehicles,	
  in	
  par.cular	
  for	
  natural	
  gas	
  vehicles.	
  	
  Up	
  to	
  this	
  point,	
  the	
  EPA	
  had	
  
allowed	
  for	
  cer.fica.on	
  of	
  these	
  conversions	
  or	
  modifica.ons,	
  but	
  treated	
  them	
  in	
  the	
  same	
  way	
  as	
  
exis.ng	
  vehicles	
  and	
  engines.	
  	
  The	
  EPA	
  did	
  not	
  adopt	
  any	
  guidelines	
  or	
  default	
  posi.ons	
  that	
  were	
  based	
  
on	
  the	
  theore.cal	
  expecta.on	
  that	
  natural	
  gas	
  and	
  some	
  other	
  alterna.ves	
  were	
  generally	
  cleaner	
  
burning	
  fuels	
  and	
  would	
  likely	
  produce	
  fewer	
  emissions	
  when	
  introduced	
  into	
  engines.	
  	
  The	
  EPA	
  placed	
  
the	
  burden	
  of	
  proof	
  on	
  the	
  manufacturers,	
  requiring	
  them	
  to	
  show	
  emissions	
  met	
  standards	
  in	
  the	
  
engine	
  loading	
  test	
  regimes	
  for	
  each	
  class	
  of	
  vehicle.	
  	
  This	
  made	
  the	
  process	
  cumbersome	
  and	
  resulted	
  
in	
  few	
  conversions	
  or	
  new	
  engines	
  being	
  cer.fied	
  for	
  any	
  alterna.ve	
  fuel.	
  	
  This	
  included	
  natural	
  gas,	
  
despite	
  the	
  existence	
  and	
  history	
  of	
  opera.on	
  of	
  proven	
  technology.

The	
  new,	
  streamlined	
  regula.ons	
  took	
  effect	
  in	
  2012.	
  	
  The	
  primary	
  change	
  reported	
  was	
  to	
  classify	
  
conversions	
  based	
  on	
  the	
  vehicle	
  age	
  and	
  apply	
  reduced	
  standards	
  for	
  cer.fica.on	
  to	
  older	
  vehicles.	
  	
  
The	
  age	
  based	
  categories	
  are:

       • New:	
  	
  vehicles	
  which	
  are	
  less	
  than	
  two	
  years	
  old.

       • Intermediate:	
  	
  vehicles	
  which	
  are	
  within	
  their	
  service	
  lives	
  but	
  more	
  than	
  two	
  years	
  old.


                                                                               4
• Outside	
  Useful	
  Life:	
  	
  vehicles	
  that	
  are	
  beyond	
  their	
  official	
  es.mated	
  service	
  lives.	
  	
  Service	
  lives	
  
         are	
  reported	
  by	
  class	
  of	
  vehicle	
  and	
  engine	
  (light	
  duty	
  gasoline,	
  medium	
  duty	
  diesel,	
  etc.).	
  	
  
         These	
  are	
  set	
  based	
  on	
  age	
  or	
  usage	
  (mileage	
  or	
  hours).	
  	
  A	
  vehicle’s	
  service	
  life	
  is	
  typically	
  
         around	
  ten	
  years	
  at	
  average	
  use	
  for	
  the	
  class	
  (some	
  are	
  variously	
  reported	
  as	
  eight,	
  eleven,	
  or	
  
         twelve	
  years,	
  but	
  most	
  are	
  ten).	
  	
  Thus,	
  to	
  use	
  the	
  streamlined	
  regula.ons	
  for	
  vehicles	
  of	
  
         moderate	
  age	
  (less	
  than	
  ten	
  years),	
  substan.ally	
  higher	
  use	
  than	
  average	
  for	
  the	
  class	
  is	
  
         required.

The	
  purpose	
  of	
  this	
  regula.on	
  is	
  to	
  reduce	
  the	
  amount	
  of	
  repor.ng	
  and	
  cer.fica.on	
  tes.ng	
  that	
  is	
  
required	
  to	
  avoid	
  tampering	
  prohibi.ons,	
  par.cularly	
  with	
  older	
  vehicles	
  that	
  may	
  have	
  increased	
  
emissions	
  anyway	
  due	
  to	
  age	
  and	
  wear.	
  	
  This	
  may	
  signal	
  that	
  the	
  EPA	
  is	
  willing	
  to	
  accept	
  the	
  premise	
  
that	
  natural	
  gas	
  will,	
  in	
  most	
  cases,	
  reduce	
  emissions	
  of	
  currently	
  regulated	
  substances	
  and	
  carbon	
  
dioxide,	
  and	
  should	
  become	
  the	
  general	
  expecta.on	
  when	
  incorpora.ng	
  natural	
  gas	
  as	
  a	
  fuel.	
  	
  The	
  new	
  
regulatory	
  structure	
  is:

      •     New:	
  	
  same	
  cer.fica.on	
  requirements	
  as	
  before.

      •     Intermediate:	
  	
  reduced	
  amount	
  of	
  tes.ng	
  for	
  cer.fica.on.	
  	
  However,	
  this	
  reduc.on	
  has	
  not	
  
            been	
  set,	
  and	
  no	
  exact	
  set	
  of	
  tes.ng	
  regula.ons,	
  procedures,	
  or	
  standards	
  are	
  in	
  place.	
  	
  
            Apparently,	
  the	
  EPA	
  is	
  reviewing	
  any	
  submissions	
  in	
  this	
  category	
  on	
  a	
  case-­‐by-­‐case	
  basis	
  (if	
  any	
  
            have	
  been	
  submied	
  at	
  this	
  point)	
  to	
  determine	
  what	
  will	
  be	
  required	
  for	
  cer.fica.on.

      •     Outside	
  Useful	
  Life:	
  	
  replacing	
  the	
  engine	
  tes.ng	
  regime	
  with	
  emissions	
  repor.ng	
  from	
  a	
  
            laboratory	
  or	
  operator	
  based	
  on	
  actual	
  vehicle	
  use.

Although	
  the	
  new	
  regulatory	
  procedure	
  establishes	
  a	
  streamlined	
  method	
  of	
  cer.fying	
  conversions	
  for	
  
older	
  vehicles,	
  the	
  EPA	
  has	
  not	
  yet	
  clarified	
  the	
  tes.ng	
  procedures	
  for	
  each	
  age	
  classifica.on	
  under	
  the	
  
new	
  regula.ons.	
  	
  It	
  appears	
  that	
  both	
  regulators	
  and	
  manufacturers	
  are	
  confused	
  as	
  to	
  what	
  must	
  be	
  
done	
  to	
  actually	
  achieve	
  cer.fica.on	
  for	
  a	
  conversion	
  of	
  an	
  older	
  vehicle	
  engine	
  system.	
  	
  By	
  the	
  middle	
  
of	
  2012	
  only	
  a	
  few	
  new	
  conversions	
  or	
  engines	
  had	
  been	
  cer.fied.	
  	
  However,	
  for	
  conversion	
  on	
  vehicles	
  
beyond	
  their	
  useful	
  lives,	
  the	
  EPA	
  has	
  been	
  willing	
  to	
  grant	
  waivers	
  for	
  par.cular	
  conversions	
  and	
  
applica.ons	
  with	
  a	
  minimum	
  of	
  repor.ng	
  and	
  tes.ng.	
  	
  Obtaining	
  these	
  types	
  of	
  waivers	
  may	
  be	
  highly	
  
dependent	
  upon	
  the	
  situa.on:	
  	
  engine,	
  age,	
  applica.on,	
  installer,	
  etc.

            Other	
  Programs	
  and	
  Regulations	
  by	
  the	
  EPA

Another	
  category	
  to	
  which	
  different	
  standards	
  are	
  applied	
  is	
  vehicles	
  intended	
  for	
  Off-­‐Road	
  use.	
  	
  These	
  
are	
  primarily	
  vehicles	
  with	
  specialized	
  commercial,	
  industrial,	
  or	
  other	
  applica.ons,	
  for	
  example,	
  a	
  large	
  
dump	
  truck	
  that	
  strictly	
  operates	
  in	
  a	
  quarry	
  or	
  open	
  pit	
  mine.	
  	
  These	
  vehicles	
  and	
  engine	
  systems	
  are	
  
evaluated	
  based	
  on	
  their	
  applica.on	
  or	
  use	
  profile.	
  	
  Different	
  standards	
  for	
  emissions	
  apply	
  to	
  different	
  
situa.ons,	
  but	
  most	
  must	
  s.ll	
  meet	
  some	
  regulatory	
  standards.	
  However	
  the	
  tes.ng	
  regimes	
  are	
  
different	
  from	
  on-­‐road	
  vehicles.	
  This	
  afforded	
  the	
  EPA	
  the	
  ability	
  to	
  concentrate	
  its	
  regulatory	
  resources	
  
on	
  classifica.ons	
  where	
  the	
  greatest	
  poten.al	
  for	
  improvement	
  lay.	
  	
  Much	
  of	
  the	
  tes.ng	
  in	
  the	
  off-­‐road	
  
category	
  is	
  done	
  through	
  repor.ng	
  from	
  independent	
  laboratories	
  or	
  the	
  operators.	
  	
  Most	
  of	
  the	
  .me,	
  it	
  
is	
  based	
  on	
  emissions	
  data	
  from	
  the	
  field.	
  	
  The	
  Pennsylvania	
  Department	
  of	
  Environmental	
  Protec.on	
  


                                                                                5
(PADEP)	
  noted	
  that	
  standards	
  promulgated	
  for	
  non-­‐road	
  vehicles	
  and	
  engines	
  have	
  trailed	
  equivalent	
  
standards	
  for	
  highway	
  vehicles	
  in	
  .me	
  by	
  about	
  four	
  years	
  because	
  the	
  popula.on	
  and	
  use	
  of	
  non-­‐road	
  
engines	
  and	
  vehicles	
  is	
  less	
  than	
  highway	
  vehicles.	
  	
  The	
  PADEP	
  also	
  noted	
  that	
  the	
  EPA	
  will	
  likely	
  require	
  
non-­‐road	
  vehicles	
  and	
  engines	
  to	
  meet	
  cer.fica.on	
  standards	
  comparable	
  to	
  highway	
  vehicles	
  in	
  the	
  
future.	
  	
  

In	
  terms	
  of	
  natural	
  gas	
  or	
  other	
  alterna.ve	
  fuel	
  conversions,	
  this	
  group	
  has	
  simpler	
  requirements.	
  	
  To	
  
cer.fy	
  a	
  conversion,	
  the	
  operator	
  or	
  manufacturer	
  must	
  submit	
  data	
  that	
  indicate	
  that	
  the	
  conversion	
  
meets	
  the	
  applicable	
  standard	
  for	
  the	
  par.cular	
  off-­‐road	
  use	
  and	
  has	
  as	
  good	
  or	
  beer	
  emissions	
  profile	
  
than	
  the	
  unconverted	
  system.	
  	
  This	
  data	
  can	
  be	
  based	
  on	
  actual	
  use	
  or	
  specific	
  dynamometer	
  type	
  
tes.ng.	
  	
  The	
  EPA	
  states	
  a	
  preference	
  for	
  laboratory	
  gathered	
  results	
  over	
  self-­‐reported	
  ones,	
  but	
  is	
  open	
  
to	
  accep.ng	
  either.	
  	
  However,	
  the	
  regula.ons	
  imply	
  that	
  the	
  EPA	
  has	
  discre.on	
  in	
  accep.ng	
  or	
  rejec.ng	
  
them	
  for	
  the	
  cer.fica.on.	
  	
  The	
  EPA	
  would	
  also	
  seem	
  to	
  have	
  the	
  power	
  to	
  require	
  addi.onal	
  and	
  
different	
  tes.ng	
  or	
  repor.ng	
  as	
  a	
  condi.on	
  of	
  cer.fica.on,	
  so	
  the	
  path	
  to	
  acceptance	
  of	
  off-­‐road	
  
conversions	
  is	
  not	
  necessarily	
  clear.	
  	
  No	
  sta.s.cs	
  were	
  reported	
  on	
  how	
  many	
  systems	
  have	
  been	
  
approved	
  or	
  waivers	
  granted.

Another	
  program	
  that	
  may	
  provide	
  a	
  pathway	
  to	
  cer.fica.on	
  or	
  acceptance	
  of	
  natural	
  gas	
  conversion	
  is	
  
the	
  Na.onal	
  Clean	
  Diesel	
  Campaign	
  (NCDC).	
  	
  The	
  purpose	
  of	
  this	
  program	
  is	
  to	
  reduce	
  the	
  pollutants	
  
associated	
  with	
  light	
  to	
  heavy	
  diesel	
  engine	
  use.	
  	
  The	
  program	
  covers	
  a	
  broad	
  spectrum	
  of	
  issues	
  rela.ng	
  
to	
  diesel	
  use	
  on	
  the	
  highway,	
  off-­‐road,	
  and	
  in	
  other	
  areas	
  such	
  as	
  rail	
  locomo.ves.	
  	
  It	
  includes	
  programs	
  
and	
  projects	
  related	
  to	
  policy,	
  strategy,	
  use,	
  fuel,	
  and	
  other	
  technology.	
  	
  Tradi.onal	
  pollutants	
  of	
  
concern	
  with	
  diesel	
  use	
  such	
  as	
  par.culate	
  maer,	
  sulfur,	
  and	
  nitrogen	
  oxides	
  are	
  listed,	
  but	
  the	
  
program	
  has	
  been	
  updated	
  to	
  also	
  include	
  greenhouse	
  gases.	
  	
  Natural	
  gas	
  would	
  seem	
  to	
  fit	
  the	
  EPA	
  
defini.on	
  for	
  “cleaner	
  burning	
  fuels”	
  by	
  reducing	
  most	
  of	
  these	
  emissions	
  when	
  used,	
  but	
  it	
  is	
  not	
  
men.oned.	
  	
  There	
  is	
  also	
  no	
  men.on	
  of	
  natural	
  gas	
  conversion	
  technology	
  in	
  the	
  EPA’s	
  SmartWay	
  
Technology	
  Program	
  or	
  the	
  technology	
  sec.on	
  of	
  the	
  NCDC	
  website,	
  which	
  list	
  technological	
  
developments	
  to	
  reduce	
  diesel	
  pollutants.	
  	
  At	
  present	
  there	
  seem	
  to	
  be	
  no	
  reports	
  of	
  natural	
  gas	
  
technology	
  being	
  accepted	
  or	
  cer.fied	
  under	
  this	
  program.	
  	
  Other	
  alterna.ve	
  technologies	
  such	
  as	
  
hybrids	
  have	
  been	
  reported,	
  so	
  this	
  program	
  may	
  provide	
  a	
  viable	
  means	
  of	
  introducing	
  natural	
  gas	
  
conversions	
  into	
  the	
  diesel	
  market,	
  poten.ally	
  with	
  more	
  straight-­‐forward	
  regula.ons	
  or	
  ones	
  that	
  
beer	
  fit	
  NGV’s.

Another	
  area	
  where	
  introduc.on	
  might	
  be	
  possible	
  is	
  under	
  fuel	
  addi.ves.	
  	
  The	
  EPA	
  does	
  not	
  regulate	
  to	
  
any	
  great	
  degree	
  fuel	
  addi.ves	
  that	
  are	
  composed	
  solely	
  of	
  hydrogen	
  and	
  carbon.	
  	
  Since	
  methane	
  (the	
  
chief	
  component	
  of	
  natural	
  gas)	
  is	
  made	
  up	
  only	
  of	
  carbon	
  and	
  hydrogen,	
  it	
  would	
  seem	
  to	
  qualify	
  as	
  a	
  
rela.vely	
  regula.on	
  free	
  fuel	
  addi.ve.	
  	
  Hence,	
  some	
  Venturi	
  systems	
  for	
  natural	
  gas	
  delivery	
  to	
  engines	
  
might	
  qualify.	
  	
  However,	
  discussions	
  on	
  this	
  rule	
  seem	
  to	
  imply	
  that	
  there	
  is	
  a	
  limit	
  to	
  the	
  amount	
  of	
  fuel	
  
addi.ve	
  that	
  can	
  be	
  introduced	
  before	
  it	
  is	
  considered	
  part	
  of	
  the	
  fuel	
  and	
  regulated	
  by	
  other	
  means.	
  	
  
There	
  is	
  also	
  no	
  discussion	
  as	
  to	
  whether	
  or	
  not	
  adding	
  systems	
  that	
  deliver	
  addi.ves	
  to	
  the	
  engine	
  
cons.tutes	
  tampering.

             EPA	
  Testing	
  and	
  Costs



                                                                                    6
The	
  EPA	
  outlined	
  its	
  tes.ng	
  procedures	
  and	
  costs	
  or	
  amounts	
  that	
  were	
  recoverable	
  from	
  
manufacturers	
  or	
  OEM’s	
  looking	
  to	
  cer.fy	
  systems	
  in	
  2006	
  (based	
  on	
  rule-­‐makings	
  in	
  2002	
  and	
  2004).	
  	
  
These	
  costs	
  are	
  described	
  in	
  detail	
  in	
  a	
  memorandum	
  in	
  the	
  Federal	
  Register	
  (available	
  at	
  69	
  Federal	
  
Register	
  26222,	
  or	
  at	
  hp://www.gpo.gov/fdsys/pkg/FR-­‐2004-­‐05-­‐11/pdf/04-­‐10338.pdf).	
  	
  The	
  costs	
  are	
  
based	
  on	
  the	
  type	
  of	
  engine	
  system	
  and	
  vehicle,	
  the	
  number	
  in	
  service,	
  and	
  other	
  factors.	
  	
  Based	
  on	
  the	
  
tables	
  in	
  the	
  above	
  referenced	
  Federal	
  Register	
  no.ce,	
  the	
  reported	
  costs	
  for	
  cer.fying	
  systems	
  range	
  
from	
  $300,000	
  to	
  $3,000,000.	
  	
  However,	
  various	
  reports	
  of	
  actual	
  costs	
  place	
  the	
  range	
  between	
  
$200,000	
  and	
  $1,000,000.	
  	
  These	
  are	
  s.ll	
  significant	
  costs	
  for	
  smaller	
  volume	
  applica.ons	
  of	
  engine	
  
technology,	
  like	
  natural	
  gas	
  conversions.	
  	
  While	
  a	
  Toyota	
  Camry’s	
  price	
  will	
  be	
  increased	
  only	
  a	
  few	
  
dollars	
  per	
  vehicle	
  due	
  to	
  EPA	
  cer.fica.on	
  tes.ng,	
  the	
  same	
  tes.ng	
  might	
  add	
  $500	
  or	
  $1000	
  to	
  the	
  
price	
  of	
  a	
  natural	
  gas	
  conversion	
  kit	
  with	
  the	
  poten.al	
  for	
  much	
  more	
  limited	
  sales.


To	
  address	
  these	
  cost	
  issues,	
  the	
  EPA	
  does	
  allow	
  fuel	
  converters	
  to	
  aggregate	
  engine	
  families	
  or	
  OEM	
  
test	
  groups	
  and	
  test	
  for	
  cer.fica.on	
  over	
  the	
  en.re	
  group.	
  	
  However,	
  prior	
  EPA	
  evalua.on	
  and	
  approval	
  
of	
  the	
  combina.on	
  is	
  required.	
  	
  The	
  combina.ons	
  would	
  allow	
  the	
  same	
  tes.ng	
  to	
  be	
  applied	
  to	
  several	
  
engine	
  systems	
  at	
  once,	
  reducing	
  cost.	
  	
  The	
  EPA	
  does	
  place	
  a	
  number	
  of	
  condi.ons	
  on	
  these	
  
combina.ons,	
  including:

       • They	
  are	
  similar	
  in	
  make	
  and	
  model	
  year.

       • Engine	
  displacements	
  are	
  rela.vely	
  close	
  (<15%	
  apart).

       • The	
  engine	
  configura.on,	
  design,	
  and	
  pistons	
  are	
  the	
  same.

       • The	
  use	
  classifica.on	
  is	
  the	
  same	
  (light	
  duty,	
  medium	
  duty,	
  etc.).

       • The	
  most	
  stringent	
  standards	
  of	
  any	
  part	
  of	
  the	
  group	
  are	
  met	
  by	
  all	
  components	
  of	
  the	
  group.

       • Combus.on	
  cycles	
  and	
  engine	
  controls	
  are	
  the	
  same.

       • They	
  all	
  have	
  the	
  same	
  method	
  of	
  air	
  aspira.on.

The	
  restric.ons	
  are	
  described	
  in	
  detail	
  at:	
  hp://iaspub.epa.gov/otaqpub/display_file.jsp?
docid=23319&flag=1	
  and	
  hp://iaspub.epa.gov/otaqpub/display_file.jsp?docid=23319&flag=1
From	
  the	
  lis.ng	
  of	
  approved	
  natural	
  gas	
  conversions,	
  it	
  appears	
  that	
  this	
  has	
  been	
  done	
  in	
  only	
  a	
  few	
  
cases.

            Other	
  National	
  Regulations	
  and	
  Standards

In	
  addi.on	
  to	
  the	
  EPA	
  emissions	
  regula.ons,	
  several	
  other	
  na.onally	
  based	
  standards	
  apply	
  specifically	
  
to	
  natural	
  gas	
  conversions.	
  	
  All	
  converted	
  vehicles	
  must	
  s.ll	
  meet	
  all	
  safety	
  requirements	
  used	
  by	
  the	
  
automo.ve	
  industry	
  and	
  na.onal	
  and	
  state	
  transporta.on	
  authori.es.	
  	
  For	
  the	
  most	
  part,	
  natural	
  gas	
  
conversions	
  do	
  not	
  affect	
  the	
  structural	
  integrity	
  or	
  crash-­‐worthiness	
  of	
  the	
  car,	
  so	
  the	
  bulk	
  of	
  these	
  
regula.ons	
  pertain	
  to	
  the	
  vehicle	
  and	
  not	
  the	
  fuel	
  system.	
  	
  There	
  should	
  be	
  no	
  problem	
  for	
  conversions	
  
mee.ng	
  these	
  regula.ons	
  and	
  standards	
  if	
  the	
  original	
  vehicles	
  did	
  in	
  the	
  first	
  place.


                                                                                 7
There	
  are	
  a	
  few	
  regula.ons	
  and	
  standards	
  that	
  do	
  apply	
  specifically	
  to	
  natural	
  gas	
  conversions.	
  	
  The	
  
most	
  important	
  ones	
  are	
  the	
  standards	
  for	
  the	
  storage	
  tanks	
  or	
  pressure	
  vessels	
  that	
  hold	
  the	
  natural	
  
gas.	
  	
  Because	
  the	
  gas	
  is	
  under	
  pressure	
  and	
  is	
  flammable,	
  the	
  vessels	
  must	
  meet	
  accepted	
  safety	
  
standards	
  in	
  these	
  areas.	
  	
  The	
  two	
  most	
  important	
  are	
  ANSI	
  NGV2	
  and	
  FMVSS	
  304.	
  	
  The	
  ANSI	
  NGV2	
  
standard	
  ensures	
  the	
  safety	
  of	
  gas	
  cylinders	
  and	
  the	
  FMVSS	
  304	
  standard	
  is	
  used	
  by	
  OEM’s	
  to	
  ensure	
  
that	
  their	
  components	
  meet	
  the	
  same	
  safety	
  standards	
  as	
  other	
  vehicle	
  components.	
  	
  A	
  related	
  
standard	
  is	
  ISO	
  11439,	
  which	
  is	
  a	
  more	
  comprehensive	
  standard	
  for	
  gas	
  cylinders.	
  	
  Mee.ng	
  it	
  does	
  not,	
  
however,	
  ensure	
  that	
  the	
  cylinders	
  can	
  be	
  used	
  in	
  vehicles.	
  	
  NGV	
  conversions	
  should	
  meet	
  both	
  the	
  ANSI	
  
NGV2	
  and	
  FMVSS	
  304	
  standards.

In	
  addi.on	
  to	
  the	
  requirements	
  for	
  gas	
  cylinders,	
  conversion	
  systems	
  must	
  also	
  meet	
  the	
  NFPA-­‐52	
  
standard.	
  	
  This	
  standard	
  is	
  promulgated	
  by	
  the	
  Na3onal	
  Fire	
  Preven3on	
  Associa3on	
  (NFPA)	
  and	
  is	
  
designed	
  to	
  ensure	
  that	
  vehicle	
  components	
  meet	
  an	
  appropriate	
  level	
  of	
  fire	
  safety.	
  	
  NFPA	
  is	
  a	
  
subsidiary	
  of	
  ANSI,	
  and	
  most	
  Society	
  of	
  Automo.ve	
  Engineers	
  (SAE)	
  cer.fied	
  mechanics	
  should	
  be	
  
familiar	
  with	
  the	
  standard	
  and	
  how	
  it	
  is	
  met.	
  	
  Much	
  of	
  this	
  regula.on	
  concerns	
  the	
  installa.on	
  of	
  the	
  
conversion.	
  	
  It	
  also	
  relates	
  to	
  basic	
  design	
  issues	
  that	
  contribute	
  to	
  fire	
  protec.on.

Installa.on	
  is	
  also	
  a	
  regulatory	
  issue.	
  	
  The	
  EPA	
  specifies	
  that	
  cer.fied	
  systems	
  must	
  also	
  have	
  cer.fied	
  
installa.ons	
  in	
  order	
  to	
  be	
  valid.	
  	
  In	
  prac.ce	
  there	
  is	
  no	
  system	
  run	
  by	
  the	
  EPA	
  to	
  ensure	
  installers	
  have	
  
creden.als	
  for	
  cer.fica.on.	
  	
  If	
  cer.fied	
  systems	
  have	
  been	
  installed	
  according	
  to	
  the	
  direc.ons	
  of	
  the	
  
manufacturer,	
  they	
  are,	
  for	
  all	
  intents	
  and	
  purposes,	
  considered	
  properly	
  installed	
  and	
  not	
  tampering.	
  	
  
The	
  rules	
  governing	
  proper	
  installa.on	
  are	
  laid	
  out	
  by	
  the	
  SAE	
  and	
  the	
  OEM’s	
  and	
  other	
  manufacturing	
  
organiza.ons.

A	
  list	
  of	
  other	
  important	
  regula.ons	
  and	
  advisories	
  can	
  be	
  found	
  at:
hp://www.nexgenfueling.com/t_codes.html


So	
  far,	
  manufacturers	
  offer	
  few	
  conversions	
  that	
  have	
  been	
  cer.fied	
  by	
  the	
  EPA	
  and	
  approved	
  for	
  use	
  in	
  
on-­‐road	
  vehicles	
  within	
  their	
  useful	
  lives,	
  so	
  there	
  is	
  lile	
  data	
  on	
  how	
  these	
  other	
  regula.ons	
  have	
  
been	
  met.	
  	
  Up	
  to	
  this	
  point,	
  there	
  have	
  been	
  no	
  reports	
  of	
  widespread	
  failures	
  or	
  non-­‐compliance	
  with	
  
automo.ve,	
  gas	
  storage,	
  or	
  fire	
  preven.on	
  standards.	
  	
  Most	
  of	
  the	
  installa.ons	
  have	
  been	
  with	
  vehicles	
  
classified	
  under	
  off-­‐road	
  use	
  or	
  beyond	
  their	
  useful	
  lives.	
  	
  With	
  respect	
  to	
  these	
  vehicles,	
  lile	
  public	
  
data	
  is	
  available	
  on	
  performance,	
  failure,	
  or	
  issues	
  of	
  compliance.	
  	
  Private	
  data	
  likely	
  does	
  exist	
  but	
  is	
  
difficult	
  to	
  find	
  or	
  not	
  widely	
  available.	
  	
  Since	
  there	
  are	
  no	
  reports	
  of	
  widespread	
  failure	
  or	
  difficulty,	
  it	
  
can	
  be	
  assumed	
  that	
  the	
  conversions	
  or	
  system	
  installa.ons	
  with	
  these	
  vehicles	
  has	
  been	
  largely	
  
sa.sfactory.




State	
  Regulations
Sec.on	
  177	
  of	
  the	
  Clean	
  Air	
  Act	
  requires	
  that	
  states	
  adopt	
  one	
  of	
  two	
  emissions	
  regimes	
  for	
  new	
  cars:	
  	
  
the	
  federal	
  regula.ons	
  or	
  those	
  used	
  in	
  California	
  and	
  promulgated	
  by	
  CARB.	
  	
  States	
  cannot	
  require	
  



                                                                                    8
vehicles	
  to	
  meet	
  regula.ons	
  that	
  differ	
  from	
  the	
  federal	
  or	
  CARB	
  standards.	
  	
  Thus,	
  the	
  California	
  
regula.ons	
  are	
  of	
  par.cular	
  note.

            CARB

The	
  California	
  Air	
  Resource	
  Board,	
  or	
  CARB,	
  was	
  designated	
  as	
  the	
  state’s	
  agency	
  to	
  regulate	
  vehicle	
  
emissions.	
  	
  California	
  was	
  granted	
  a	
  waiver	
  by	
  the	
  EPA	
  to	
  develop	
  its	
  own	
  regula.ons,	
  as	
  long	
  as	
  they	
  
met	
  certain	
  basic	
  standards	
  demanded	
  by	
  the	
  EPA.	
  	
  California	
  was	
  eager	
  to	
  impose	
  regula.ons	
  on	
  a	
  
quicker	
  .me	
  table	
  to	
  address	
  specific	
  issues	
  facing	
  the	
  state.	
  	
  These	
  primarily	
  concerned	
  the	
  air	
  quality	
  
and	
  smog	
  in	
  Southern	
  California	
  communi.es,	
  the	
  preserva.on	
  of	
  the	
  state’s	
  natural	
  resources,	
  and	
  the	
  
preven.on	
  of	
  future	
  problems	
  in	
  other	
  metropolitan	
  areas.	
  	
  Growth	
  and	
  significant	
  automobile	
  use	
  in	
  
the	
  state	
  prompted	
  a	
  more	
  comprehensive	
  and	
  determined	
  approach	
  than	
  in	
  other	
  states	
  and	
  at	
  the	
  
EPA,	
  where	
  Congressional	
  oversight	
  and	
  na.onal	
  priori.es	
  dictated	
  a	
  more	
  measured	
  approach.	
  	
  Using	
  
the	
  waiver,	
  California	
  produced	
  a	
  set	
  of	
  regula.ons	
  on	
  its	
  own	
  that	
  were	
  more	
  stringent	
  than	
  exis.ng	
  
and	
  proposed	
  EPA	
  emissions	
  regula.ons.	
  	
  As	
  a	
  result,	
  other	
  states	
  were	
  given	
  the	
  op.on	
  of	
  adop.ng	
  the	
  
CARB	
  standards	
  or	
  the	
  EPA	
  standards	
  as	
  the	
  basis	
  for	
  their	
  emissions	
  regula.ons.	
  	
  Fourteen	
  states,	
  
including	
  Pennsylvania,	
  have	
  adopted	
  the	
  CARB	
  standards,	
  at	
  least	
  in	
  some	
  form.

CARB	
  requires	
  cer.fica.on	
  of	
  vehicles	
  and	
  engine	
  systems	
  in	
  much	
  the	
  same	
  manner	
  as	
  the	
  EPA.	
  	
  As	
  
with	
  the	
  EPA,	
  there	
  are	
  excep.ons	
  for	
  off-­‐road	
  uses	
  and	
  applica.ons	
  that,	
  at	
  the	
  beginning	
  of	
  2012,	
  only	
  
require	
  repor.ng	
  of	
  emissions	
  rather	
  than	
  a	
  formal	
  cer.fica.on	
  process.	
  	
  CARB	
  also	
  requires	
  alterna.ve	
  
fuel	
  conversions	
  to	
  follow	
  the	
  same	
  cer.fica.on	
  process	
  as	
  engines	
  and	
  related	
  technology.	
  	
  The	
  CARB	
  
regula.ons	
  have	
  not	
  been	
  streamlined,	
  so	
  there	
  are	
  no	
  limited	
  regulatory	
  or	
  cer.fica.on	
  regimes	
  based	
  
on	
  the	
  age	
  of	
  the	
  vehicle	
  or	
  system.	
  	
  Hence,	
  CARB	
  cer.fica.on	
  will	
  be	
  harder	
  to	
  achieve	
  in	
  some	
  
circumstances	
  for	
  alterna.ve	
  fuel	
  conversions.

The	
  costs	
  for	
  CARB	
  cer.fica.on	
  are	
  comparable	
  to	
  EPA	
  cer.fica.on,	
  if	
  somewhat	
  higher.	
  	
  Generally,	
  
mee.ng	
  the	
  CARB	
  standards	
  also	
  means	
  mee.ng	
  the	
  EPA	
  standards,	
  so	
  the	
  EPA	
  usually	
  accepts	
  CARB	
  
cer.fica.on	
  as	
  a	
  basis	
  for	
  EPA	
  cer.fica.on.	
  	
  This	
  is	
  part	
  of	
  the	
  working	
  agreement	
  between	
  EPA	
  and	
  
California.	
  	
  However,	
  there	
  appears	
  to	
  be	
  some	
  increase	
  in	
  cost	
  to	
  obtain	
  both	
  the	
  EPA	
  and	
  CARB	
  
cer.fica.ons,	
  even	
  under	
  a	
  consolidated	
  tes.ng	
  regime.	
  	
  Cost	
  reports	
  indicate	
  that	
  this	
  amounts	
  to	
  a	
  
25%	
  to	
  35%	
  increase	
  in	
  cost.	
  	
  This	
  means	
  that	
  full	
  cer.fica.on	
  costs	
  may	
  range	
  from	
  $300,000	
  to	
  
$1,400,000	
  for	
  conversions	
  or	
  new	
  engines.	
  	
  The	
  likely	
  reason	
  for	
  this	
  is	
  that	
  CARB	
  requires	
  aging	
  
emissions	
  controls	
  for	
  the	
  life	
  of	
  the	
  vehicle,	
  which	
  would	
  add	
  to	
  tes.ng	
  and	
  development	
  costs.

            Pennsylvania

The	
  Commonwealth	
  of	
  Pennsylvania	
  adopted	
  the	
  CARB	
  standards	
  in	
  2004	
  for	
  heavy	
  duty	
  trucks	
  
(beginning	
  with	
  the	
  2005	
  model	
  year),	
  defined	
  as	
  vehicles	
  rated	
  at	
  over	
  14,000	
  lbs.	
  gross	
  vehicle	
  weight.	
  	
  
Passenger	
  cars	
  and	
  light	
  duty	
  trucks,	
  defined	
  as	
  vehicles	
  rated	
  below	
  8500	
  lbs.	
  gross	
  vehicle	
  weight,	
  
were	
  brought	
  under	
  CARB	
  rules	
  in	
  2006	
  (beginning	
  with	
  the	
  2008	
  model	
  year).	
  	
  Pennsylvania	
  does	
  list	
  a	
  
number	
  of	
  excep.ons	
  to	
  the	
  CARB	
  standards,	
  based	
  on	
  off-­‐road	
  use,	
  emergency	
  vehicles,	
  military	
  
vehicles,	
  and	
  other	
  special	
  circumstances,	
  which	
  are	
  iden.cal	
  to	
  exemp.ons	
  allowed	
  by	
  CARB.	
  	
  In	
  short,	
  
vehicles	
  rated	
  below	
  8500	
  lbs.	
  gross	
  vehicle	
  weight	
  or	
  above	
  14,000	
  lbs.	
  gross	
  vehicle	
  weight	
  must	
  meet	
  
CARB	
  standards.	
  	
  All	
  other	
  vehicles	
  must	
  meet	
  federal	
  emissions	
  standards	
  including	
  all	
  alterna.ve	
  fuel	
  

                                                                              9
conversions	
  and	
  related	
  modifica.ons.	
  	
  In	
  Pennsylvania	
  CARB	
  standards	
  apply	
  to	
  new	
  vehicles.	
  	
  
Pennsylvania	
  defined	
  “new”	
  vehicles	
  as	
  those	
  with	
  less	
  than	
  7500	
  miles	
  on	
  the	
  odometer.	
  	
  Vehicles	
  with	
  
more	
  mileage	
  are	
  covered	
  under	
  EPA	
  regula.ons	
  instead.	
  	
  The	
  regula.ons	
  regarding	
  Pennsylvania	
  
emissions	
  are	
  found	
  in	
  Title	
  25	
  Chapter	
  126,	
  Subchapter	
  D	
  (light	
  duty	
  vehicles)	
  and	
  Subchapter	
  E	
  (heavy	
  
duty	
  vehicles).

Late	
  in	
  2011,	
  Pennsylvania	
  developed	
  a	
  policy	
  document	
  to	
  encourage	
  more	
  alterna.ve	
  fuel	
  
conversions.	
  	
  This	
  was	
  done	
  in	
  response	
  to	
  public	
  interest	
  in	
  natural	
  gas	
  vehicles,	
  prompted	
  by	
  
par.cularly	
  low	
  local	
  pricing	
  for	
  natural	
  gas	
  as	
  a	
  result	
  of	
  the	
  Marcellus	
  Shale	
  explora.on	
  and	
  extrac.on.	
  	
  
In	
  addi.on,	
  Pennsylvania	
  did	
  not	
  adopt	
  13	
  CCR	
  (California	
  Code	
  of	
  Regula.ons)	
  §2030,	
  which	
  relates	
  to	
  
aVermarket	
  conversion	
  systems	
  for	
  alterna.ve	
  fuels.	
  	
  As	
  a	
  result,	
  PA	
  DEP	
  determined	
  that	
  aVermarket	
  
natural	
  gas	
  conversion	
  kits	
  for	
  light	
  duty	
  trucks	
  and	
  cars	
  must	
  have	
  either	
  CARB	
  or	
  EPA	
  cer.fica.on.	
  	
  
Therefore,	
  a	
  vehicle	
  conversion	
  would	
  be	
  valid	
  if	
  it	
  was	
  cer.fied	
  at	
  EPA	
  and	
  not	
  by	
  CARB	
  or	
  vice	
  versa.	
  	
  
This	
  was	
  intended	
  to	
  open	
  the	
  market	
  to	
  more	
  conversion	
  kits	
  and	
  engine	
  technology	
  whose	
  
manufacturers	
  may	
  not	
  have	
  had	
  the	
  funds	
  to	
  cer.fy	
  under	
  both	
  systems.	
  	
  Heavy	
  duty	
  vehicles	
  operate	
  
under	
  similar	
  regula.ons:	
  	
  new	
  vehicles	
  require	
  CARB	
  systems	
  and	
  those	
  with	
  over	
  7500	
  miles	
  require	
  
EPA	
  or	
  CARB.	
  	
  For	
  medium	
  duty	
  vehicles,	
  there	
  are	
  presently	
  no	
  specific	
  regula.ons,	
  so	
  only	
  EPA	
  
cer.fica.on	
  is	
  required.

All	
  newly	
  .tled	
  heavy-­‐duty	
  and	
  light-­‐duty	
  vehicles	
  in	
  Pennsylvania	
  must	
  be	
  CARB	
  cer.fied,	
  so	
  new	
  
natural	
  gas	
  vehicles	
  will	
  need	
  to	
  be	
  CARB	
  cer.fied.	
  	
  This	
  probably	
  poses	
  few	
  problems,	
  since	
  new	
  natural	
  
gas	
  vehicles	
  will	
  generally	
  come	
  from	
  OEM’s	
  that	
  must	
  cer.fy	
  the	
  vehicles	
  in	
  order	
  to	
  sell	
  them.	
  	
  
Conversion	
  kits	
  for	
  vehicles	
  with	
  over	
  7500	
  miles	
  may	
  be	
  either	
  CARB	
  or	
  EPA	
  cer.fied.	
  	
  In	
  addi.on,	
  all	
  
new	
  heavy-­‐duty	
  and	
  light-­‐duty	
  vehicles	
  .tled	
  in	
  Pennsylvania	
  must	
  have	
  CARB	
  cer.fica.on	
  for	
  their	
  
engine	
  technology.	
  	
  Cer.fica.on	
  is	
  required	
  for	
  new	
  vehicles	
  to	
  obtain	
  a	
  Pennsylvania	
  .tle	
  regardless	
  of	
  
whether	
  or	
  not	
  they	
  were	
  previously	
  .tled	
  in	
  another	
  state.	
  	
  This	
  also	
  applies	
  to	
  new	
  vehicles	
  that	
  have	
  
been	
  converted	
  for	
  natural	
  gas	
  use;	
  they	
  must	
  obtain	
  a	
  new	
  .tle	
  and	
  meet	
  CARB	
  requirements.	
  	
  

While	
  emissions	
  regula.ons	
  are	
  handled	
  by	
  the	
  PA	
  DEP,	
  the	
  Pennsylvania	
  Department	
  of	
  Transporta.on	
  
oversees	
  other	
  regula.ons	
  with	
  respect	
  to	
  motor	
  vehicles,	
  including	
  .tling	
  and	
  vehicle	
  safety	
  inspec.on.	
  	
  
Pennsylvania	
  does	
  not	
  typically	
  require	
  re-­‐.tling	
  for	
  vehicles	
  that	
  undergo	
  significant	
  engine	
  repair	
  or	
  
change.	
  	
  However,	
  alterna.ve	
  energy	
  conversions—including	
  those	
  for	
  natural	
  gas	
  systems—are	
  
considered	
  significant	
  enough	
  so	
  as	
  to	
  cons.tute	
  a	
  re-­‐building	
  of	
  the	
  vehicle	
  and	
  require	
  a	
  new	
  .tle.	
  	
  
This	
  new	
  .tle	
  for	
  the	
  vehicle	
  is	
  referred	
  to	
  as	
  a	
  modified	
  .tle.	
  	
  Owners	
  must	
  apply	
  for	
  permits	
  to	
  obtain	
  
modified	
  .tles	
  (This	
  is	
  the	
  same	
  process	
  to	
  obtain	
  Reconstructed,	
  TheV,	
  and	
  other	
  types	
  of	
  specialty	
  
.tles),	
  and	
  modified	
  .tle	
  vehicles	
  must	
  undergo	
  a	
  different	
  inspec.on	
  regime	
  than	
  regularly	
  .tled	
  
vehicles.	
  	
  Hence,	
  adherence	
  to	
  cer.fica.on	
  requirements	
  is	
  likely	
  to	
  be	
  more	
  of	
  an	
  issue	
  under	
  these	
  
circumstances.	
  	
  These	
  inspec.ons	
  must	
  also	
  be	
  done	
  at	
  inspec.ons	
  sta.ons	
  cer.fied	
  for	
  modified	
  
vehicles,	
  and	
  only	
  a	
  frac.on	
  of	
  inspec.on	
  sta.ons	
  are	
  cer.fied.	
  	
  New	
  vehicles	
  must	
  meet	
  CARB	
  
standards,	
  and	
  older	
  vehicles	
  (as	
  previously	
  defined)	
  may	
  meet	
  EPA	
  or	
  CARB	
  standards	
  to	
  obtain	
  a	
  .tle.	
  	
  
There	
  are	
  no	
  reports	
  of	
  difficul.es	
  in	
  this	
  process	
  at	
  present,	
  but	
  issues	
  may	
  arise	
  as	
  more	
  conversions	
  
are	
  made,	
  inspected,	
  and	
  .tled.	
  	
  Pennsylvania	
  also	
  does	
  not	
  relax	
  .tling	
  requirements	
  with	
  age,	
  as	
  many	
  
other	
  states	
  do,	
  so	
  most	
  PennDOT	
  .tling	
  regula.ons	
  will	
  fully	
  apply	
  to	
  any	
  vehicle	
  that	
  requires	
  one.	
  	
  



                                                                                 10
Titling	
  informa3on	
  is	
  available	
  at:

hp://www.dmv.state.pa.us/pdouorms/fact_sheets/Modified_Vehicle.pdf	
  and
hp://www.dmv.state.pa.us/pdouorms/mv_forms/mv-­‐426B.pdf

The	
  EPA	
  enforces	
  an.-­‐tampering	
  regula.ons,	
  but	
  states	
  are	
  responsible	
  for	
  enforcing	
  .tling	
  
requirements,	
  including	
  CARB	
  cer.fica.on	
  and	
  obtaining	
  modified	
  .tles	
  for	
  converted	
  vehicles,	
  as	
  well	
  
as	
  other	
  state	
  regula.ons	
  such	
  as	
  safety	
  and	
  emissions	
  inspec.ons.	
  States	
  have	
  tended	
  to	
  focus	
  on	
  
required	
  individual	
  emissions	
  tes.ng	
  and	
  other	
  safety	
  inspec.on	
  issues.	
  	
  For	
  the	
  most	
  part,	
  states	
  have	
  
not	
  rigorously	
  checked	
  engine	
  modifica.ons	
  of	
  any	
  kind	
  against	
  EPA	
  and	
  CARB	
  cer.fica.ons.	
  	
  Because	
  of	
  
this,	
  uncer.fied	
  conversions	
  have	
  been	
  made	
  and	
  are	
  in	
  use	
  throughout	
  the	
  country.	
  	
  Based	
  on	
  the	
  
number	
  of	
  cer.fied	
  systems,	
  the	
  percentage	
  of	
  uncer.fied	
  conversions	
  is	
  probably	
  rela.vely	
  high.	
  	
  Part	
  
of	
  this	
  is	
  due	
  to	
  the	
  rarity	
  of	
  these	
  conversions,	
  par.cularly	
  with	
  respect	
  to	
  other	
  inspec.on	
  issues.	
  	
  
However,	
  as	
  natural	
  gas	
  and	
  other	
  alterna.ve	
  conversions	
  gain	
  popularity,	
  there	
  will	
  be	
  more	
  
opportunity	
  for	
  enforcement,	
  and	
  it	
  will	
  become	
  a	
  more	
  significant	
  enforcement	
  issue.	
  	
  With	
  media	
  and	
  
public	
  aen.on	
  on	
  these	
  conversions,	
  some	
  states	
  have	
  already	
  issued	
  leers	
  and	
  memoranda	
  clarifying	
  
their	
  posi.ons	
  and	
  direc.ng	
  enforcement	
  officers	
  to	
  obtain	
  cer.fica.on	
  documenta.on	
  on	
  conversions	
  
and	
  altera.ons.	
  	
  This	
  includes	
  Pennsylvania.	
  	
  Therefore,	
  cer.fica.on	
  will	
  become	
  much	
  more	
  important	
  
in	
  the	
  near	
  future.




Insurance	
  Regulation
In	
  addi.on	
  to	
  the	
  public	
  regula.on,	
  there	
  will	
  likely	
  be	
  some	
  private	
  regula.on	
  of	
  natural	
  gas	
  vehicles,	
  
primarily	
  from	
  the	
  insurance	
  industry.	
  	
  In	
  order	
  for	
  operators	
  to	
  use	
  natural	
  gas	
  vehicles,	
  especially	
  for	
  
on-­‐road	
  use,	
  there	
  must	
  be	
  some	
  means	
  of	
  insuring	
  them	
  against	
  loss.	
  	
  The	
  insurability	
  of	
  natural	
  gas	
  
vehicles	
  depends	
  upon	
  the	
  risks	
  associated	
  with	
  their	
  use.	
  	
  If	
  there	
  are	
  too	
  many	
  risks,	
  the	
  premiums	
  
must	
  be	
  set	
  very	
  high	
  (if	
  at	
  all),	
  which	
  will	
  make	
  the	
  cost	
  of	
  opera.ng	
  a	
  natural	
  gas	
  vehicle	
  prohibi.ve.	
  	
  
At	
  present	
  there	
  is	
  very	
  lile	
  loss	
  data	
  available	
  for	
  natural	
  gas	
  vehicles.	
  	
  Most	
  that	
  are	
  used	
  exist	
  in	
  
fleets	
  in	
  limited	
  use.	
  	
  As	
  a	
  consequence,	
  insurance	
  companies	
  will	
  have	
  to	
  make	
  es.mates	
  of	
  poten.al	
  
risks	
  and	
  losses	
  in	
  order	
  to	
  assign	
  premiums.	
  	
  

At	
  this	
  .me,	
  few	
  if	
  any	
  insurance	
  companies	
  have	
  official	
  posi.ons	
  on	
  natural	
  gas	
  vehicles,	
  other	
  than	
  
that	
  they	
  must	
  fall	
  within	
  the	
  normal	
  governing	
  regula.ons	
  on	
  safety,	
  emissions,	
  and	
  other	
  aspects	
  of	
  
opera.on	
  (EPA,	
  DOT,	
  State,	
  and	
  other	
  applicable	
  laws	
  and	
  regula.ons).	
  	
  It	
  is	
  likely	
  that	
  vehicle	
  
conversions	
  that	
  are	
  not	
  cer.fied	
  under	
  the	
  EPA	
  and	
  CARB	
  are	
  not	
  insurable.	
  	
  Likewise,	
  an	
  insurance	
  
company	
  would	
  almost	
  certainly	
  require	
  that	
  other	
  standards	
  like	
  ANSI	
  NGV2	
  and	
  NFPA	
  52	
  be	
  met	
  to	
  
make	
  an	
  NGV	
  insurable.	
  	
  Beyond	
  that	
  and	
  absent	
  other	
  data	
  on	
  losses,	
  most	
  insurance	
  companies	
  would	
  
rate	
  a	
  converted	
  vehicle	
  in	
  the	
  same	
  way	
  as	
  the	
  un-­‐converted	
  or	
  tradi.onal	
  fuel	
  (gasoline	
  or	
  diesel)	
  
vehicle.	
  	
  Some	
  may	
  not	
  wish	
  to	
  rate	
  or	
  insure	
  the	
  vehicles	
  at	
  all,	
  ci.ng	
  the	
  unknown	
  risks	
  associated	
  with	
  
the	
  technology	
  as	
  far	
  as	
  losses	
  and	
  safety	
  concerns.	
  	
  Since	
  most	
  natural	
  gas	
  vehicles	
  in	
  use	
  are	
  presently	
  
part	
  of	
  fleets,	
  they	
  are	
  most	
  likely	
  insured	
  by	
  commercial	
  insurers.	
  	
  These	
  insurers	
  typically	
  use	
  different	
  
parameters	
  to	
  assess	
  risk	
  than	
  retail	
  insurers	
  and	
  can	
  be	
  more	
  flexible	
  in	
  the	
  types	
  of	
  assets	
  they	
  insure,	
  


                                                                                    11
their	
  ra.ng	
  procedures,	
  and	
  risk	
  management.	
  	
  Other	
  natural	
  gas	
  vehicles	
  are	
  classified	
  as	
  off-­‐road	
  use	
  
and	
  would	
  be	
  insured	
  under	
  different	
  ra.ng	
  structures	
  that	
  primarily	
  take	
  into	
  account	
  the	
  special	
  
circumstances	
  of	
  their	
  use,	
  or	
  they	
  might	
  not	
  be	
  insured	
  at	
  all.

On	
  the	
  other	
  hand,	
  insurance	
  companies	
  are	
  able	
  to	
  respond	
  much	
  more	
  quickly	
  to	
  changes	
  in	
  
informa.on	
  than	
  regulatory	
  bodies,	
  which	
  require	
  some	
  level	
  of	
  consensus.	
  	
  Insurance	
  companies	
  may	
  
react	
  quickly	
  to	
  new	
  data	
  on	
  losses	
  and	
  change	
  ra.ngs	
  posi.vely	
  or	
  nega.vely	
  as	
  experience	
  
demonstrates.	
  	
  An	
  example	
  of	
  this	
  in	
  the	
  alterna.ve	
  vehicle	
  market	
  is	
  the	
  ra.ng	
  structures	
  for	
  hybrids	
  
and	
  electric	
  cars,	
  which	
  are	
  currently	
  in	
  a	
  state	
  of	
  flux.	
  	
  When	
  they	
  were	
  introduced,	
  these	
  cars	
  received	
  
comparable	
  ra.ngs	
  to	
  other	
  cars	
  of	
  their	
  size.	
  	
  As	
  .me	
  went	
  by,	
  and	
  insurers	
  gained	
  accident	
  and	
  use	
  
data	
  on	
  these	
  cars,	
  and	
  new	
  risks	
  were	
  iden.fied	
  which	
  must	
  now	
  be	
  included	
  in	
  their	
  ra.ngs.	
  	
  The	
  
baeries	
  in	
  hybrids	
  and	
  electric	
  cars	
  were	
  prone	
  to	
  damage	
  in	
  certain	
  types	
  of	
  accidents.	
  	
  Once	
  damaged	
  
the	
  baeries	
  had	
  to	
  be	
  replaced—which	
  turned	
  out	
  to	
  be	
  an	
  expensive	
  proposi.on.	
  	
  As	
  a	
  result,	
  a	
  higher	
  
propor.on	
  of	
  these	
  vehicles	
  are	
  totaled	
  aVer	
  accidents	
  than	
  comparable	
  cars	
  with	
  only	
  internal	
  
combus.on	
  engines.	
  	
  Damaged	
  baeries	
  can	
  produce	
  and	
  leak	
  hydrogen	
  gas,	
  which	
  can	
  cause	
  fires	
  in	
  
the	
  vehicles	
  and	
  damage	
  adjacent	
  property.	
  	
  Insurers	
  are	
  now	
  trying	
  to	
  include	
  the	
  cost	
  of	
  these	
  extra	
  
losses	
  in	
  the	
  premiums	
  for	
  these	
  types	
  of	
  cars.	
  	
  The	
  same	
  may	
  ul.mately	
  be	
  true	
  for	
  natural	
  gas	
  vehicles.	
  
                                                                                                                                                                    	
  
Therefore,	
  it	
  is	
  possible	
  that	
  natural	
  gas	
  vehicle	
  ra.ngs	
  could	
  change	
  drama.cally	
  once	
  experience	
  with	
  
them	
  has	
  iden.fied	
  all	
  of	
  the	
  risks,	
  and	
  operators	
  must	
  be	
  aware	
  of	
  this	
  possibility.




Conclusions
The	
  combina.on	
  of	
  EPA	
  and	
  CARB	
  regula.on	
  presents	
  OEM’s	
  and	
  manufacturers	
  of	
  natural	
  gas	
  engine	
  
and	
  vehicle	
  technology	
  with	
  a	
  confusing	
  and	
  daun.ng	
  set	
  of	
  obstacles.	
  	
  To	
  date,	
  only	
  a	
  few	
  natural	
  gas	
  
solu.ons	
  have	
  been	
  approved	
  under	
  EPA	
  or	
  CARB	
  regula.ons	
  for	
  use	
  in	
  on-­‐road	
  circumstances.	
  	
  Those	
  
that	
  have	
  are	
  typically	
  the	
  more	
  popular	
  engines	
  makes	
  and	
  models	
  that	
  will	
  achieve	
  the	
  largest	
  market	
  
penetra.ons.	
  	
  Helping	
  to	
  drive	
  this	
  concentra.on	
  is	
  the	
  fact	
  that	
  most	
  natural	
  gas	
  vehicles,	
  new	
  or	
  
converted,	
  are	
  part	
  of	
  vehicle	
  fleets,	
  which	
  are	
  usually	
  comprised	
  of	
  more	
  popular	
  makes	
  and	
  models.	
  	
  
Despite	
  the	
  small	
  number	
  of	
  approved	
  solu.ons,	
  there	
  are	
  a	
  fairly	
  large	
  number	
  of	
  manufacturers	
  
making	
  products.	
  	
  Most	
  adver.se	
  that	
  they	
  are	
  only	
  intended	
  for	
  off-­‐road	
  applica.ons	
  in	
  the	
  U.S.,	
  a	
  less	
  
burdensome	
  alterna.ve	
  to	
  on-­‐road	
  cer.fica.on.	
  	
  Many	
  are	
  also	
  installed,	
  par.cularly	
  with	
  heavier	
  duty	
  
applica.ons,	
  on	
  vehicles	
  that	
  are	
  beyond	
  their	
  normal	
  service	
  lives,	
  for	
  which	
  waivers	
  from	
  cer.fica.on	
  
are	
  easily	
  obtained.	
  	
  For	
  most	
  of	
  the	
  manufacturing	
  companies,	
  the	
  bulk	
  of	
  their	
  sales	
  come	
  from	
  foreign	
  
countries,	
  where	
  cer.fica.on	
  and	
  approval	
  regula.ons	
  are	
  typically	
  less	
  intensive,	
  depending	
  on	
  the	
  
exact	
  country.	
  	
  The	
  cost	
  and	
  complexity	
  of	
  cer.fica.on	
  will	
  likely	
  prevent	
  many	
  new	
  entrants	
  over	
  the	
  
next	
  few	
  years,	
  as	
  manufacturers	
  concentrate	
  on	
  the	
  popular	
  models	
  and	
  niche	
  applica.ons.	
  	
  This	
  
situa.on	
  is	
  analogous	
  to	
  drug	
  regula.on,	
  where	
  drug	
  makers	
  concentrated	
  on	
  widespread	
  illnesses	
  and	
  
afflic.ons	
  like	
  diabetes	
  and	
  ignored	
  diseases	
  with	
  smaller	
  popula.ons	
  because	
  the	
  chances	
  of	
  recouping	
  
the	
  development	
  and	
  regulatory	
  costs	
  at	
  reasonable	
  sale	
  prices	
  were	
  much	
  beer	
  with	
  larger	
  markets.	
  	
  
The	
  bulk	
  of	
  the	
  market	
  in	
  the	
  U.S.	
  will	
  likely	
  be	
  with	
  conversions	
  of	
  older	
  vehicles	
  that	
  are	
  beyond	
  their	
  
service	
  lives,	
  since	
  there	
  is	
  less	
  scru.ny	
  and	
  an	
  easier	
  regulatory	
  framework.


                                                                                 12
It	
  is	
  unlikely	
  that	
  this	
  situa.on	
  will	
  change	
  in	
  the	
  next	
  several	
  years.	
  	
  The	
  current	
  year,	
  2012,	
  is	
  a	
  na.onal	
  
elec.on	
  year	
  and	
  features	
  what	
  will	
  probably	
  be	
  two	
  widely	
  different	
  approaches	
  to	
  regula.ng	
  natural	
  
gas	
  vehicles.	
  	
  With	
  this	
  uncertainty,	
  it	
  is	
  unlikely	
  that	
  the	
  EPA	
  and	
  other	
  government	
  agencies	
  will	
  
embark	
  on	
  any	
  substan.al	
  changes	
  in	
  policy	
  regarding	
  a	
  charged	
  topic	
  like	
  energy	
  use	
  and	
  consump.on.	
  	
  
The	
  regula.ons	
  will	
  probably	
  remain	
  the	
  same,	
  and	
  the	
  new	
  streamlined	
  versions	
  will	
  probably	
  not	
  be	
  
clarified	
  un.l	
  2013	
  or	
  2014.	
  	
  Furthermore,	
  should	
  the	
  elec.on	
  yield	
  a	
  President	
  and	
  Congressional	
  
majori.es	
  more	
  sympathe.c	
  to	
  natural	
  gas	
  vehicle	
  use,	
  there	
  will	
  s.ll	
  undoubtedly	
  be	
  other	
  issues	
  of	
  
higher	
  priority	
  to	
  address	
  in	
  2013,	
  puwng	
  off	
  any	
  reform	
  of	
  natural	
  gas	
  vehicle	
  technology	
  cer.fica.on	
  
un.l	
  the	
  end	
  of	
  2013	
  or	
  2014.	
  	
  Another	
  risk	
  is	
  that	
  regula.ons	
  could	
  become	
  more	
  stringent,	
  depending	
  
on	
  poli.cal	
  direc.ons.	
  	
  The	
  EPA	
  could	
  expand	
  the	
  number	
  of	
  compounds	
  that	
  it	
  currently	
  regulates	
  for	
  
vehicle	
  emissions.	
  	
  Of	
  par.cular	
  interest	
  to	
  companies	
  manufacturing	
  or	
  contempla.ng	
  using	
  NGV’s	
  is	
  
unburned	
  methane.	
  	
  Methane	
  is	
  a	
  potent	
  greenhouse	
  gas	
  and,	
  therefore,	
  may	
  become	
  a	
  target	
  of	
  
regula.on.	
  	
  Natural	
  gas	
  fuel	
  systems	
  and	
  engines	
  may	
  have	
  to	
  cer.fy	
  that	
  they	
  do	
  not	
  emit	
  significant	
  
amounts	
  of	
  methane	
  from	
  opera.on.	
  	
  

These	
  facts	
  will	
  require	
  that	
  most	
  manufacturers	
  with	
  natural	
  gas	
  technology	
  work	
  with	
  an	
  OEM	
  or	
  
strategic	
  partner	
  familiar	
  with	
  the	
  EPA	
  and	
  CARB	
  processes	
  for	
  engine	
  technology	
  or	
  remain	
  focused	
  on	
  
off-­‐road	
  and	
  older	
  vehicles	
  for	
  conversion.	
  	
  One	
  poten.al	
  bright	
  spot	
  is	
  that	
  industry	
  and	
  insurance	
  
regula.on	
  may	
  quickly	
  adapt	
  to	
  this	
  market	
  and	
  set	
  the	
  standard	
  for	
  installa.ons.	
  	
  Since	
  the	
  regula.ons	
  
are	
  confusing	
  both	
  for	
  those	
  following	
  them	
  and	
  enforcing	
  them,	
  industrial	
  prac.ces	
  and	
  insurance	
  
underwri.ng	
  may	
  begin	
  to	
  gain	
  weight	
  as	
  standards	
  and	
  influence	
  the	
  regulatory	
  interpreta.ons,	
  
providing	
  an	
  organic	
  means	
  of	
  developing	
  a	
  posi.ve	
  regulatory	
  framework	
  to	
  develop	
  the	
  market	
  
opportunity.

The	
  regulatory	
  factors	
  discussed	
  above	
  will	
  slow	
  and	
  probably	
  cap	
  the	
  penetra.on	
  of	
  natural	
  gas	
  
solu.ons	
  in	
  transporta.on.	
  	
  The	
  requirements	
  of	
  the	
  cer.fica.on	
  process	
  mean	
  that	
  most	
  
manufacturers	
  will	
  sell	
  to	
  off-­‐road	
  niche	
  markets	
  in	
  the	
  U.S.	
  or	
  manufacture	
  for	
  fleets	
  and	
  popular	
  
vehicle	
  types	
  while	
  pursuing	
  foreign	
  sales	
  in	
  La.n	
  America,	
  Poland,	
  and	
  other	
  places	
  that	
  are	
  developing	
  
shale	
  gas	
  resources.	
  	
  The	
  regula.ons	
  also	
  place	
  a	
  bias	
  on	
  new	
  vehicles	
  that	
  must	
  be	
  qualified	
  regardless	
  
of	
  fuel	
  type.	
  	
  This	
  will	
  favor	
  OEM’s	
  who	
  will	
  manufacture	
  natural	
  gas	
  vehicles	
  for	
  fleet	
  applica.ons	
  at	
  the	
  
expense	
  of	
  conver.ng	
  exis.ng	
  vehicles	
  and	
  fleets.	
  	
  For	
  the	
  near	
  future,	
  natural	
  gas	
  vehicles	
  will	
  remain	
  a 	
  
small	
  part	
  of	
  the	
  market	
  but	
  an	
  expanding	
  one,	
  despite	
  the	
  cost	
  savings	
  and	
  other	
  benefits	
  rela.ve	
  to	
  
diesel	
  fuel	
  and	
  gasoline.	
  	
  However,	
  if	
  this	
  limited	
  use	
  produces	
  savings,	
  beer	
  emissions,	
  and	
  the	
  
poten.al	
  for	
  beer	
  energy	
  security,	
  public	
  pressure	
  will	
  likely	
  force	
  policy	
  to	
  more	
  readily	
  accommodate	
  
natural	
  gas	
  vehicles,	
  and	
  more	
  op.ons	
  will	
  become	
  available.	
  	
  This	
  will	
  allow	
  natural	
  gas	
  vehicles	
  to	
  
expand	
  into	
  all	
  of	
  the	
  markets	
  where	
  their	
  use	
  makes	
  sense.




Paper	
  Authored	
  by:
The	
  Shale	
  Gas	
  Innova.on	
  &	
  Commercializa.on	
  Center	
  (www.sgicc.org)	
  
Mr.	
  Brian	
  Krier,	
  Energy	
  Programs	
  Manager,	
  Ben	
  Franklin	
  Technology	
  Partners	
  of	
  Central	
  and	
  N.	
  PA	
  (CNP)

                                                                                    13
115	
  Technology	
  Center	
  Building
University	
  Park,	
  PA	
  16802
For	
  ques.ons,	
  contact	
  Bill	
  Hall,	
  SGICC	
  Director	
  at	
  either	
  814-­‐933-­‐8203	
  or	
  billhall@psu.edu	
  


References
EPA	
  regula.ons	
  on	
  alterna.ve	
  fuel	
  conversions:	
  	
  hp://epa.gov/otaq/consumer/fuels/aluuels/
aluuels.htm

Na.onal	
  Clean	
  Diesel	
  Campaign:	
  	
  hp://epa.gov/cleandiesel/index.htm
EPA	
  Guidance	
  to	
  fuel	
  converters:	
  	
  hp://iaspub.epa.gov/otaqpub/display_file.jsp?docid=23319&flag=1
EPA	
  Vehicle	
  Fuel	
  Emissions	
  Lab:	
  	
  hp://ofmpub.epa.gov/otaqpub/display_file.jsp?docid=26974&flag=1


Loca.on	
  of	
  Regula.ons	
  in	
  the	
  U.S.	
  Code:	
  	
  42	
  USC	
  Sec	
  7522	
  (a)(3)

Natural	
  Gas	
  Vehicles	
  for	
  America	
  Trade	
  Group:	
  	
  www.ngcv.org
Conversion	
  Kit	
  Resource:	
  	
  www.skycng.com
California	
  Regula.ons:	
  	
  www.arb.ca.gov
Pennsylvania	
  Clean	
  Vehicles	
  Program:	
  	
  hp://www.dep.state.pa.us/dep/deputate/airwaste/aq/cars/
cleanvehicles.htm

Pennsylvania	
  Portal	
  for	
  Natural	
  Gas	
  Vehicles:	
  	
  hp://www.portal.state.pa.us/portal/server.pt/
community/act_13/20789/natural_gas_vehicle_program/1157504




                                                                              14

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Regulatory Hurdles for Natural Gas Vehicles

  • 1. Regulatory  Hurdles  for  Natural  Gas  Vehicles Developed  by  the  Shale  Gas  Innova3on  &  Commercializa3on  Center November  2012 The  Shale  Gas  Revolu.on  is  now  firmly  entrenched  in  the  public’s  imagina.on  as  a  result  of  the  steady   decline  of  natural  gas  prices  from  above  $4.00/mcf  (mcf=thousand  cubic  feet)  to  $2.00/mcf  and  below.     At  the  same  .me,  oil  prices  have  spiked  and  remained  high,  typically  between  $85  and  $100  per  barrel.     This  has  caused  gasoline  prices  to  soar  above  $3.50  per  gallon  at  their  highest  point,  feeding  public   discontent  and  consterna.on  at  the  cost  of  driving  to  work  and  other  ac.vi.es.    Naturally,  the  public  has   prompted  its  leaders  for  solu.ons,  and  one  that  has  been  discussed  regularly  is  the  use  of  natural  gas  as   a  transporta.on  fuel.    At  current  prices,  consumers  might  save  up  to  60%  of  their  fuel  costs  and  spend   more  of  their  money  with  domes.c  producers  instead  of  foreign  oil  suppliers. Despite  the  public  clamor  for  using  natural  gas  in  vehicles,  there  has  been  only  limited  progress.    As   could  be  expected,  this  has  led  to  some  frustra.on  and  a  search  for  solu.ons  ranging  from   infrastructure  spending  to  tax  credits  and  financial  incen.ves  to  adopt  the  technologies  associated  with   natural  gas  vehicles.    Unfortunately,  many,  if  not  all,  of  these  efforts  face  difficul.es  due  to  the   regulatory  framework  that  surrounds  vehicle  and  engine  technology  at  various  levels  both  in   government  and  industry.    Together,  they  form  the  coils  of  a  Gordian  knot  that  restricts  the  deployment   of  natural  gas  vehicles  and  other  types  of  alterna.ve  fuel  vehicles.    The  regula.ons  are  confusing  and   oVen  overlap.    They  can  also  add  considerable  expense  to  the  introduc.on  of  an  engine  technology.     The  purpose  of  this  paper  is  to  outline  the  regula.ons  in  a  coherent  manner  and  discuss  their   applicability  to  natural  gas  vehicle  development. Some  important  terms  and  defini.ons  used  in  discussing  the  regula.ons  are  as  follows: • NGV:    This  abbrevia.on  stands  for  Natural  gas  vehicle  and  is  used  frequently  in  the  literature. • Dedicated:    A  dedicated  natural  gas  system  means  that  the  vehicle’s  engine  is  configured  to  only   run  on  natural  gas,  either  in  compressed  gas  or  liquid  form. • Bi-­‐Fuel  and  Dual  Fuel:    In  common  parlance,  a  bi-­‐fuel  system  allows  the  operator  to  select  either   natural  gas  or  a  liquid  fuel  (gasoline  or  diesel)  as  the  vehicle  fuel,  while  a  dual-­‐fuel  system  uses   both  natural  gas  and  a  liquid  fuel  simultaneously  in  some  ra.o.    In  the  former  the  vehicle  runs   en.rely  on  natural  gas  or  liquid  fuel,  depending  on  the  choice.    This  op.on  allows  for  flexibility   in  choosing  the  fuel,  and  alleviates  the  problem  of  opera.ng  in  areas  without  natural  gas  fueling   sta.ons.    In  the  laer,  both  are  mixed  according  to  availability  or  some  opera.ng  constraint.    It   offers  flexibility  as  well—most  systems  will  run  on  diesel  alone—and  is  intended  to  provide   maximum  savings  in  heavy  use  situa.ons  where  natural  gas  op.ons  may  be  limited.    However,   in  many  cases  these  two  terms  are  used  interchangeably,  and  some  regula.ons  cite  the  exact   opposite  defini.on  for  each.    Thus,  the  defini3ons  are  not  fixed,  and  readers  should  review  the   context  and  situa.on  to  understand  which  defini.on  is  being  used  for  a  term. 1
  • 2. CNG  and  LNG:    These  terms  refer  to  the  two  basic  storage  systems  for  natural  gas  fuel.     Compressed  natural  gas  or  CNG  is  simply  natural  gas  stored  under  pressure,  so  that  more  fuel   may  occupy  a  smaller  space.    LNG,  or  Liquified  natural  gas  is  stored  as  a  liquid  and  converted  to   gas  just  before  use.    Most  applica.ons  use  CNG  systems  because  LNG  systems  require  complex   storage  systems,  cryogenic  temperatures,  and  high  pressure  compression  facili.es  to   manufacture  and  use.    On  the  other  hand,  LNG  does  maximize  the  energy  density  of  natural  gas   by  turning  it  into  a  liquid. • Conversion:    This  term  refers  to  the  process  of  installing  a  cer.fied  natural  gas  fuel  system  into   an  exis.ng  vehicle  which  runs  on  a  liquid  fuel  system.    Conversions  generally  create  bi-­‐fuel  or   dual  fuel  vehicles,  but  can  also  create  a  dedicated  NGV.    Of  course,  vehicles  may  also  be  sold   new  with  any  type  of  natural  gas  fuel  system,  if  the  NGV  is  cer.fied  by  the  EPA  and/or  CARB,   depending  on  the  state. • Mixer  or  Venturi  Systems:    These  are  simple  fuel  systems  which  introduce  a  natural  gas  stream   into  the  engine  fuel  system  at  a  constant  rate.    Some  debate  exists  as  to  whether  or  not  they   can  create  significant  savings  for  vehicle  operators. • Sequen3al  Injec3on  Systems:    These  systems  introduce  the  natural  gas  into  the  engine  system   at  a  variable  rate,  determined  by  the  engine  computer’s  opera.ng  parameters.    They  are  more   sophis.cated  and  poten.ally  more  cost-­‐effec.ve  to  operate  than  the  simpler  Venturi  systems. • CARB:    This  refers  to  the  California  Air  Resources  Board,  the  California  rule-­‐making  body  for   emissions  regula.ons,  whose  decisions  have  a  na.onal  impact.   Regula.ng  bodies  also  classify  vehicles  by  type.    Generally,  these  classifica.ons  are  based  on  the  vehicle   size  and  primary  use.    The  EPA  and  other  bodies  typically  use  the  following  broad  classifica.ons  to   describe  vehicle  requirements: • Passenger  Cars  and  Light  Duty  Trucks:    Are  the  smallest  and  most  widely  used  vehicles  available   to  the  public.    In  general,  these  vehicles  are  rated  at  8500  lbs.  gross  vehicle  weight  or  less.    This   is  by  far  the  largest  category  of  vehicles. • Medium  Duty  Vehicles:    Are  used  in  a  variety  of  roles,  mostly  commercial,  and  are  typically   rated  between  8500  lbs.  and  14,000  lbs.  gross  vehicle  weight. • Heavy  Duty  Vehicles  and  Trucks:    Are  large  commercial  vehicles  rated  at  over  14,000  lbs.  gross   vehicle  weight. • Off-­‐Road:    This  term  refers  to  specialty  vehicles  that  are  not  intended  for  highway  use.    The   other  three  classifica.ons  all  represent  “on-­‐road”  vehicles  that  are  intended  to  travel  on   highways  and  streets  with  other  traffic.    Off-­‐road  vehicles  are  typically  special  commercial  and   industrial  vehicles  like  construc.on  or  mining  equipment.    They  are  regulated  separately  from   on-­‐road  vehicles. 2
  • 3. In  addi.on  to  these  broad  classifica.ons  that  are  used  by  the  states  and  the  federal  government,  more   specific  classifica.ons  exist  within  these  broad  categories.    These  more  specific  classifica.ons  are  usually   based  on  engine  displacement  (size  or  capacity  of  the  cylinders)  and  engine  use.    For  example,  one   classifica.on  might  be  14  liter  and  larger  engines  for  heavy-­‐duty,  over-­‐the-­‐road  tractors  (typical   eighteen  wheel  tractor-­‐trailer  rig).    Natural  gas  vehicles  (NGV’s)  must  meet  and  adhere  to  regula.ons   and  standards  issued  or  used  by  the  federal  government,  na.onal  safety  bodies,  state  governments,  and   the  insurance  industry.    The  rules  vary  by  classifica.on. Federal  and  National  Regulations General  EPA  Regulations The  Environmental  Protec.on  Agency  (EPA)  became  the  chief  federal  regulatory  body  with  jurisdic.on   over  engine  technology  and  fuel  by  virtue  of  its  role  in  the  1973  Clean  Air  Act  (Act).    The  Act  established   the  EPA  as  the  expert  agency  to  regulate  vehicle  and  engine  emissions  for  the  purpose  of  reducing   pollutants  like  sulfur  dioxide,  nitrous  oxide  (NOx),  lead,  and  par.culate  maer.    In  1973,  the  EPA   established  goals  and  standards  for  a  list  of  pollutants  and  forced  the  automo.ve  industry  to  adopt   various  technologies  to  decrease  emissions.    Among  these  were  the  advent  of  unleaded  gasoline  and  the   mandatory  use  of  cataly.c  converters.     Since  1973,  the  EPA  has  modified  its  exis.ng  standards  and  added  new  ones  in  order  to  con.nually   decrease  emissions  of  harmful  substances,  making  its  automo.ve  emissions  regula.ons  arguably  the   most  stringent  in  the  world.    It  has  also  required  that  all  engine  and  air  quality  technology  on  vehicles   meet  its  emission  standards.    All  vehicle  engines  (and  other  internal  combus.on  engines)  are  governed   by  one  of  the  EPA’s  vehicle  regulatory  regimes  and  must  adhere  to  its  specific  set  of  regula.ons.    All   engines  in  general  public  or  commercial  use  must  be  cer.fied  to  meet  these  standards,  and  no  changes   to  those  engines  may  be  made  without  EPA  approval  and  cer.fica.on  to  meet  emission  standards.     Otherwise,  the  modifica.ons  are  deemed  to  be  “tampering”.    Tampered  vehicles  may  not  be  sold  or   used  legally  in  the  United  States.    All  vehicles  must  have  EPA  cer.fica.on  to  operate  or  be  sold.     In  1997,  the  EPA  altered  its  cer.fica.on  policies  to  specifically  address  alterna.ve  fuels  and  the  new   engine  technologies  that  they  created.    The  purpose  was  to  encourage  the  use  of  alterna.ve  fuels  in   vehicles  that  held  the  promise  of  further  emissions  reduc.ons.    This  was  par.cularly  important  at  that   .me  as  the  EPA  began  to  consider  the  effects  of  carbon  dioxide  emissions  on  global  warming,  based  on   the  United  Na.ons  climate  studies  which  had  just  been  published.    Included  in  the  group  of  alterna.ve   fuels,  along  with  ethanol,  bio-­‐diesel,  other  bio-­‐fuels,  and  propane,  was  natural  gas.    At  the  .me,  it  was   not  seen  as  a  par.cularly  viable  fuel,  and  there  were  no  specific  parameters  included  in  the  regula.ons   for  natural  gas  use  or  NGV’s.    All  fuels  essen.ally  followed  the  same  set  of  regula.ons. The  1997  regula.ons  spelled  out  a  cer.fica.on  process  for  alterna.ve  fuels.    They  reinforced  the  need   for  federal  approval  and  s.ll  prohibited  “tampering”  with  any  engine  to  alter  it  to  use  alterna.ve  fuels.     The  EPA  defined  tampering  as  any  modifica.on  or  altera.on  to  the  engine  that  might  change  its   performance,  behavior,  or  emissions  output  without  proper  EPA  cer.fica.on  or  verifica.on  that  this  was   not  the  case.    The  regula.ons  reiterated  prohibi.ons  against  tampering,  and  viola.ons  of  tampering   3
  • 4. rules  can  result  in  substan.al  fines  and  other  penal.es.    Based  on  the  construc.on  of  the  regula.ons,  it   appears  that  any  par.cular  modifica.on  to  any  par.cular  engine  must  be  cer.fied  by  the  EPA  through   its  tes.ng  procedures  to  be  legal  for  use  on  roads  and  to  prevent  an.-­‐tampering  enforcement  ac.ons.     State  motor  vehicle  departments  were  charged  with  iden.fying  instances  of  tampering  through  their   vehicle  inspec.ons  processes.    Some  excep.ons  exist  to  these  regula.ons,  including  vehicles  and   engines  classified  for  “off-­‐road”  use,  which  were  not  intended  for  opera.on  on  highways.    By  defini.on,   any  type  of  conversion  to  natural  gas  use  on  an  exis.ng  engine  would  qualify  as  tampering,  if  the   conversion  were  not  cer.fied  for  that  par.cular  engine.    All  new  NGV’s  would  of  necessity  have  to  be   cer.fied  by  EPA  in  order  to  be  approved  for  sale  in  the  United  States,  and  cer.fied  by  CARB  in  states   that  adopted  CARB  emissions  regula.ons. The  cer.fica.on  requirements  consist  of  tes.ng  on  the  engine  or  altered  or  converted  engine   performed  by  a  laboratory  that  can  perform  all  or  some  of  the  required  exhaust  and  evapora.ve   emissions  tes.ng  required  by  the  EPA.    The  EPA  maintains  a  list  of  laboratories  that  can  perform  all  or   part  of  the  tes.ng,  but  does  not  endorse  or  approve  test  laboratories.    EPA  may  perform  confirmatory   tes.ng  at  its  own  expense.    Specific  tes.ng  procedures  depend  on  the  type  of  vehicle:    light  duty,   medium  duty,  heavy  duty,  off-­‐road,  etc.    In  general,  the  tes.ng  regimes  consist  of  specific  cycles  of   engine  loading  and  simultaneous  emissions  tes.ng.    For  on-­‐road  applica.ons,  the  tests  are  done  on   dynamometers  to  ensure  that  condi.ons  and  engine  loading  are  the  same  for  each  class  of  vehicles.     Hence,  emissions  from  vehicles  in  the  same  class  can  be  directly  compared  to  each  other  and  emission   standards  developed  for  that  class  as  a  whole.    Typically,  this  tes.ng  requires  over  1000  hours  of   dynamometer  tes.ng  as  reported  by  various  sources.    There  are  also  some  other  types  of  mechanical   and  chemical  tes.ng  that  are  incorporated  with  these  engine  loading  tests.    Thus,  cer.fica.on  requires  a   commitment  to  extensive  tes.ng.    Auto  and  engine  manufacturers  and  OEM’s  already  conform  to  this   system  with  each  new  product. In  2011,  the  EPA  announced  that  it  would  streamline  its  regula.ons  with  regard  to  alterna.ve  fuel   conversions  on  exis.ng  vehicles,  in  par.cular  for  natural  gas  vehicles.    Up  to  this  point,  the  EPA  had   allowed  for  cer.fica.on  of  these  conversions  or  modifica.ons,  but  treated  them  in  the  same  way  as   exis.ng  vehicles  and  engines.    The  EPA  did  not  adopt  any  guidelines  or  default  posi.ons  that  were  based   on  the  theore.cal  expecta.on  that  natural  gas  and  some  other  alterna.ves  were  generally  cleaner   burning  fuels  and  would  likely  produce  fewer  emissions  when  introduced  into  engines.    The  EPA  placed   the  burden  of  proof  on  the  manufacturers,  requiring  them  to  show  emissions  met  standards  in  the   engine  loading  test  regimes  for  each  class  of  vehicle.    This  made  the  process  cumbersome  and  resulted   in  few  conversions  or  new  engines  being  cer.fied  for  any  alterna.ve  fuel.    This  included  natural  gas,   despite  the  existence  and  history  of  opera.on  of  proven  technology. The  new,  streamlined  regula.ons  took  effect  in  2012.    The  primary  change  reported  was  to  classify   conversions  based  on  the  vehicle  age  and  apply  reduced  standards  for  cer.fica.on  to  older  vehicles.     The  age  based  categories  are: • New:    vehicles  which  are  less  than  two  years  old. • Intermediate:    vehicles  which  are  within  their  service  lives  but  more  than  two  years  old. 4
  • 5. • Outside  Useful  Life:    vehicles  that  are  beyond  their  official  es.mated  service  lives.    Service  lives   are  reported  by  class  of  vehicle  and  engine  (light  duty  gasoline,  medium  duty  diesel,  etc.).     These  are  set  based  on  age  or  usage  (mileage  or  hours).    A  vehicle’s  service  life  is  typically   around  ten  years  at  average  use  for  the  class  (some  are  variously  reported  as  eight,  eleven,  or   twelve  years,  but  most  are  ten).    Thus,  to  use  the  streamlined  regula.ons  for  vehicles  of   moderate  age  (less  than  ten  years),  substan.ally  higher  use  than  average  for  the  class  is   required. The  purpose  of  this  regula.on  is  to  reduce  the  amount  of  repor.ng  and  cer.fica.on  tes.ng  that  is   required  to  avoid  tampering  prohibi.ons,  par.cularly  with  older  vehicles  that  may  have  increased   emissions  anyway  due  to  age  and  wear.    This  may  signal  that  the  EPA  is  willing  to  accept  the  premise   that  natural  gas  will,  in  most  cases,  reduce  emissions  of  currently  regulated  substances  and  carbon   dioxide,  and  should  become  the  general  expecta.on  when  incorpora.ng  natural  gas  as  a  fuel.    The  new   regulatory  structure  is: • New:    same  cer.fica.on  requirements  as  before. • Intermediate:    reduced  amount  of  tes.ng  for  cer.fica.on.    However,  this  reduc.on  has  not   been  set,  and  no  exact  set  of  tes.ng  regula.ons,  procedures,  or  standards  are  in  place.     Apparently,  the  EPA  is  reviewing  any  submissions  in  this  category  on  a  case-­‐by-­‐case  basis  (if  any   have  been  submied  at  this  point)  to  determine  what  will  be  required  for  cer.fica.on. • Outside  Useful  Life:    replacing  the  engine  tes.ng  regime  with  emissions  repor.ng  from  a   laboratory  or  operator  based  on  actual  vehicle  use. Although  the  new  regulatory  procedure  establishes  a  streamlined  method  of  cer.fying  conversions  for   older  vehicles,  the  EPA  has  not  yet  clarified  the  tes.ng  procedures  for  each  age  classifica.on  under  the   new  regula.ons.    It  appears  that  both  regulators  and  manufacturers  are  confused  as  to  what  must  be   done  to  actually  achieve  cer.fica.on  for  a  conversion  of  an  older  vehicle  engine  system.    By  the  middle   of  2012  only  a  few  new  conversions  or  engines  had  been  cer.fied.    However,  for  conversion  on  vehicles   beyond  their  useful  lives,  the  EPA  has  been  willing  to  grant  waivers  for  par.cular  conversions  and   applica.ons  with  a  minimum  of  repor.ng  and  tes.ng.    Obtaining  these  types  of  waivers  may  be  highly   dependent  upon  the  situa.on:    engine,  age,  applica.on,  installer,  etc. Other  Programs  and  Regulations  by  the  EPA Another  category  to  which  different  standards  are  applied  is  vehicles  intended  for  Off-­‐Road  use.    These   are  primarily  vehicles  with  specialized  commercial,  industrial,  or  other  applica.ons,  for  example,  a  large   dump  truck  that  strictly  operates  in  a  quarry  or  open  pit  mine.    These  vehicles  and  engine  systems  are   evaluated  based  on  their  applica.on  or  use  profile.    Different  standards  for  emissions  apply  to  different   situa.ons,  but  most  must  s.ll  meet  some  regulatory  standards.  However  the  tes.ng  regimes  are   different  from  on-­‐road  vehicles.  This  afforded  the  EPA  the  ability  to  concentrate  its  regulatory  resources   on  classifica.ons  where  the  greatest  poten.al  for  improvement  lay.    Much  of  the  tes.ng  in  the  off-­‐road   category  is  done  through  repor.ng  from  independent  laboratories  or  the  operators.    Most  of  the  .me,  it   is  based  on  emissions  data  from  the  field.    The  Pennsylvania  Department  of  Environmental  Protec.on   5
  • 6. (PADEP)  noted  that  standards  promulgated  for  non-­‐road  vehicles  and  engines  have  trailed  equivalent   standards  for  highway  vehicles  in  .me  by  about  four  years  because  the  popula.on  and  use  of  non-­‐road   engines  and  vehicles  is  less  than  highway  vehicles.    The  PADEP  also  noted  that  the  EPA  will  likely  require   non-­‐road  vehicles  and  engines  to  meet  cer.fica.on  standards  comparable  to  highway  vehicles  in  the   future.     In  terms  of  natural  gas  or  other  alterna.ve  fuel  conversions,  this  group  has  simpler  requirements.    To   cer.fy  a  conversion,  the  operator  or  manufacturer  must  submit  data  that  indicate  that  the  conversion   meets  the  applicable  standard  for  the  par.cular  off-­‐road  use  and  has  as  good  or  beer  emissions  profile   than  the  unconverted  system.    This  data  can  be  based  on  actual  use  or  specific  dynamometer  type   tes.ng.    The  EPA  states  a  preference  for  laboratory  gathered  results  over  self-­‐reported  ones,  but  is  open   to  accep.ng  either.    However,  the  regula.ons  imply  that  the  EPA  has  discre.on  in  accep.ng  or  rejec.ng   them  for  the  cer.fica.on.    The  EPA  would  also  seem  to  have  the  power  to  require  addi.onal  and   different  tes.ng  or  repor.ng  as  a  condi.on  of  cer.fica.on,  so  the  path  to  acceptance  of  off-­‐road   conversions  is  not  necessarily  clear.    No  sta.s.cs  were  reported  on  how  many  systems  have  been   approved  or  waivers  granted. Another  program  that  may  provide  a  pathway  to  cer.fica.on  or  acceptance  of  natural  gas  conversion  is   the  Na.onal  Clean  Diesel  Campaign  (NCDC).    The  purpose  of  this  program  is  to  reduce  the  pollutants   associated  with  light  to  heavy  diesel  engine  use.    The  program  covers  a  broad  spectrum  of  issues  rela.ng   to  diesel  use  on  the  highway,  off-­‐road,  and  in  other  areas  such  as  rail  locomo.ves.    It  includes  programs   and  projects  related  to  policy,  strategy,  use,  fuel,  and  other  technology.    Tradi.onal  pollutants  of   concern  with  diesel  use  such  as  par.culate  maer,  sulfur,  and  nitrogen  oxides  are  listed,  but  the   program  has  been  updated  to  also  include  greenhouse  gases.    Natural  gas  would  seem  to  fit  the  EPA   defini.on  for  “cleaner  burning  fuels”  by  reducing  most  of  these  emissions  when  used,  but  it  is  not   men.oned.    There  is  also  no  men.on  of  natural  gas  conversion  technology  in  the  EPA’s  SmartWay   Technology  Program  or  the  technology  sec.on  of  the  NCDC  website,  which  list  technological   developments  to  reduce  diesel  pollutants.    At  present  there  seem  to  be  no  reports  of  natural  gas   technology  being  accepted  or  cer.fied  under  this  program.    Other  alterna.ve  technologies  such  as   hybrids  have  been  reported,  so  this  program  may  provide  a  viable  means  of  introducing  natural  gas   conversions  into  the  diesel  market,  poten.ally  with  more  straight-­‐forward  regula.ons  or  ones  that   beer  fit  NGV’s. Another  area  where  introduc.on  might  be  possible  is  under  fuel  addi.ves.    The  EPA  does  not  regulate  to   any  great  degree  fuel  addi.ves  that  are  composed  solely  of  hydrogen  and  carbon.    Since  methane  (the   chief  component  of  natural  gas)  is  made  up  only  of  carbon  and  hydrogen,  it  would  seem  to  qualify  as  a   rela.vely  regula.on  free  fuel  addi.ve.    Hence,  some  Venturi  systems  for  natural  gas  delivery  to  engines   might  qualify.    However,  discussions  on  this  rule  seem  to  imply  that  there  is  a  limit  to  the  amount  of  fuel   addi.ve  that  can  be  introduced  before  it  is  considered  part  of  the  fuel  and  regulated  by  other  means.     There  is  also  no  discussion  as  to  whether  or  not  adding  systems  that  deliver  addi.ves  to  the  engine   cons.tutes  tampering. EPA  Testing  and  Costs 6
  • 7. The  EPA  outlined  its  tes.ng  procedures  and  costs  or  amounts  that  were  recoverable  from   manufacturers  or  OEM’s  looking  to  cer.fy  systems  in  2006  (based  on  rule-­‐makings  in  2002  and  2004).     These  costs  are  described  in  detail  in  a  memorandum  in  the  Federal  Register  (available  at  69  Federal   Register  26222,  or  at  hp://www.gpo.gov/fdsys/pkg/FR-­‐2004-­‐05-­‐11/pdf/04-­‐10338.pdf).    The  costs  are   based  on  the  type  of  engine  system  and  vehicle,  the  number  in  service,  and  other  factors.    Based  on  the   tables  in  the  above  referenced  Federal  Register  no.ce,  the  reported  costs  for  cer.fying  systems  range   from  $300,000  to  $3,000,000.    However,  various  reports  of  actual  costs  place  the  range  between   $200,000  and  $1,000,000.    These  are  s.ll  significant  costs  for  smaller  volume  applica.ons  of  engine   technology,  like  natural  gas  conversions.    While  a  Toyota  Camry’s  price  will  be  increased  only  a  few   dollars  per  vehicle  due  to  EPA  cer.fica.on  tes.ng,  the  same  tes.ng  might  add  $500  or  $1000  to  the   price  of  a  natural  gas  conversion  kit  with  the  poten.al  for  much  more  limited  sales. To  address  these  cost  issues,  the  EPA  does  allow  fuel  converters  to  aggregate  engine  families  or  OEM   test  groups  and  test  for  cer.fica.on  over  the  en.re  group.    However,  prior  EPA  evalua.on  and  approval   of  the  combina.on  is  required.    The  combina.ons  would  allow  the  same  tes.ng  to  be  applied  to  several   engine  systems  at  once,  reducing  cost.    The  EPA  does  place  a  number  of  condi.ons  on  these   combina.ons,  including: • They  are  similar  in  make  and  model  year. • Engine  displacements  are  rela.vely  close  (<15%  apart). • The  engine  configura.on,  design,  and  pistons  are  the  same. • The  use  classifica.on  is  the  same  (light  duty,  medium  duty,  etc.). • The  most  stringent  standards  of  any  part  of  the  group  are  met  by  all  components  of  the  group. • Combus.on  cycles  and  engine  controls  are  the  same. • They  all  have  the  same  method  of  air  aspira.on. The  restric.ons  are  described  in  detail  at:  hp://iaspub.epa.gov/otaqpub/display_file.jsp? docid=23319&flag=1  and  hp://iaspub.epa.gov/otaqpub/display_file.jsp?docid=23319&flag=1 From  the  lis.ng  of  approved  natural  gas  conversions,  it  appears  that  this  has  been  done  in  only  a  few   cases. Other  National  Regulations  and  Standards In  addi.on  to  the  EPA  emissions  regula.ons,  several  other  na.onally  based  standards  apply  specifically   to  natural  gas  conversions.    All  converted  vehicles  must  s.ll  meet  all  safety  requirements  used  by  the   automo.ve  industry  and  na.onal  and  state  transporta.on  authori.es.    For  the  most  part,  natural  gas   conversions  do  not  affect  the  structural  integrity  or  crash-­‐worthiness  of  the  car,  so  the  bulk  of  these   regula.ons  pertain  to  the  vehicle  and  not  the  fuel  system.    There  should  be  no  problem  for  conversions   mee.ng  these  regula.ons  and  standards  if  the  original  vehicles  did  in  the  first  place. 7
  • 8. There  are  a  few  regula.ons  and  standards  that  do  apply  specifically  to  natural  gas  conversions.    The   most  important  ones  are  the  standards  for  the  storage  tanks  or  pressure  vessels  that  hold  the  natural   gas.    Because  the  gas  is  under  pressure  and  is  flammable,  the  vessels  must  meet  accepted  safety   standards  in  these  areas.    The  two  most  important  are  ANSI  NGV2  and  FMVSS  304.    The  ANSI  NGV2   standard  ensures  the  safety  of  gas  cylinders  and  the  FMVSS  304  standard  is  used  by  OEM’s  to  ensure   that  their  components  meet  the  same  safety  standards  as  other  vehicle  components.    A  related   standard  is  ISO  11439,  which  is  a  more  comprehensive  standard  for  gas  cylinders.    Mee.ng  it  does  not,   however,  ensure  that  the  cylinders  can  be  used  in  vehicles.    NGV  conversions  should  meet  both  the  ANSI   NGV2  and  FMVSS  304  standards. In  addi.on  to  the  requirements  for  gas  cylinders,  conversion  systems  must  also  meet  the  NFPA-­‐52   standard.    This  standard  is  promulgated  by  the  Na3onal  Fire  Preven3on  Associa3on  (NFPA)  and  is   designed  to  ensure  that  vehicle  components  meet  an  appropriate  level  of  fire  safety.    NFPA  is  a   subsidiary  of  ANSI,  and  most  Society  of  Automo.ve  Engineers  (SAE)  cer.fied  mechanics  should  be   familiar  with  the  standard  and  how  it  is  met.    Much  of  this  regula.on  concerns  the  installa.on  of  the   conversion.    It  also  relates  to  basic  design  issues  that  contribute  to  fire  protec.on. Installa.on  is  also  a  regulatory  issue.    The  EPA  specifies  that  cer.fied  systems  must  also  have  cer.fied   installa.ons  in  order  to  be  valid.    In  prac.ce  there  is  no  system  run  by  the  EPA  to  ensure  installers  have   creden.als  for  cer.fica.on.    If  cer.fied  systems  have  been  installed  according  to  the  direc.ons  of  the   manufacturer,  they  are,  for  all  intents  and  purposes,  considered  properly  installed  and  not  tampering.     The  rules  governing  proper  installa.on  are  laid  out  by  the  SAE  and  the  OEM’s  and  other  manufacturing   organiza.ons. A  list  of  other  important  regula.ons  and  advisories  can  be  found  at: hp://www.nexgenfueling.com/t_codes.html So  far,  manufacturers  offer  few  conversions  that  have  been  cer.fied  by  the  EPA  and  approved  for  use  in   on-­‐road  vehicles  within  their  useful  lives,  so  there  is  lile  data  on  how  these  other  regula.ons  have   been  met.    Up  to  this  point,  there  have  been  no  reports  of  widespread  failures  or  non-­‐compliance  with   automo.ve,  gas  storage,  or  fire  preven.on  standards.    Most  of  the  installa.ons  have  been  with  vehicles   classified  under  off-­‐road  use  or  beyond  their  useful  lives.    With  respect  to  these  vehicles,  lile  public   data  is  available  on  performance,  failure,  or  issues  of  compliance.    Private  data  likely  does  exist  but  is   difficult  to  find  or  not  widely  available.    Since  there  are  no  reports  of  widespread  failure  or  difficulty,  it   can  be  assumed  that  the  conversions  or  system  installa.ons  with  these  vehicles  has  been  largely   sa.sfactory. State  Regulations Sec.on  177  of  the  Clean  Air  Act  requires  that  states  adopt  one  of  two  emissions  regimes  for  new  cars:     the  federal  regula.ons  or  those  used  in  California  and  promulgated  by  CARB.    States  cannot  require   8
  • 9. vehicles  to  meet  regula.ons  that  differ  from  the  federal  or  CARB  standards.    Thus,  the  California   regula.ons  are  of  par.cular  note. CARB The  California  Air  Resource  Board,  or  CARB,  was  designated  as  the  state’s  agency  to  regulate  vehicle   emissions.    California  was  granted  a  waiver  by  the  EPA  to  develop  its  own  regula.ons,  as  long  as  they   met  certain  basic  standards  demanded  by  the  EPA.    California  was  eager  to  impose  regula.ons  on  a   quicker  .me  table  to  address  specific  issues  facing  the  state.    These  primarily  concerned  the  air  quality   and  smog  in  Southern  California  communi.es,  the  preserva.on  of  the  state’s  natural  resources,  and  the   preven.on  of  future  problems  in  other  metropolitan  areas.    Growth  and  significant  automobile  use  in   the  state  prompted  a  more  comprehensive  and  determined  approach  than  in  other  states  and  at  the   EPA,  where  Congressional  oversight  and  na.onal  priori.es  dictated  a  more  measured  approach.    Using   the  waiver,  California  produced  a  set  of  regula.ons  on  its  own  that  were  more  stringent  than  exis.ng   and  proposed  EPA  emissions  regula.ons.    As  a  result,  other  states  were  given  the  op.on  of  adop.ng  the   CARB  standards  or  the  EPA  standards  as  the  basis  for  their  emissions  regula.ons.    Fourteen  states,   including  Pennsylvania,  have  adopted  the  CARB  standards,  at  least  in  some  form. CARB  requires  cer.fica.on  of  vehicles  and  engine  systems  in  much  the  same  manner  as  the  EPA.    As   with  the  EPA,  there  are  excep.ons  for  off-­‐road  uses  and  applica.ons  that,  at  the  beginning  of  2012,  only   require  repor.ng  of  emissions  rather  than  a  formal  cer.fica.on  process.    CARB  also  requires  alterna.ve   fuel  conversions  to  follow  the  same  cer.fica.on  process  as  engines  and  related  technology.    The  CARB   regula.ons  have  not  been  streamlined,  so  there  are  no  limited  regulatory  or  cer.fica.on  regimes  based   on  the  age  of  the  vehicle  or  system.    Hence,  CARB  cer.fica.on  will  be  harder  to  achieve  in  some   circumstances  for  alterna.ve  fuel  conversions. The  costs  for  CARB  cer.fica.on  are  comparable  to  EPA  cer.fica.on,  if  somewhat  higher.    Generally,   mee.ng  the  CARB  standards  also  means  mee.ng  the  EPA  standards,  so  the  EPA  usually  accepts  CARB   cer.fica.on  as  a  basis  for  EPA  cer.fica.on.    This  is  part  of  the  working  agreement  between  EPA  and   California.    However,  there  appears  to  be  some  increase  in  cost  to  obtain  both  the  EPA  and  CARB   cer.fica.ons,  even  under  a  consolidated  tes.ng  regime.    Cost  reports  indicate  that  this  amounts  to  a   25%  to  35%  increase  in  cost.    This  means  that  full  cer.fica.on  costs  may  range  from  $300,000  to   $1,400,000  for  conversions  or  new  engines.    The  likely  reason  for  this  is  that  CARB  requires  aging   emissions  controls  for  the  life  of  the  vehicle,  which  would  add  to  tes.ng  and  development  costs. Pennsylvania The  Commonwealth  of  Pennsylvania  adopted  the  CARB  standards  in  2004  for  heavy  duty  trucks   (beginning  with  the  2005  model  year),  defined  as  vehicles  rated  at  over  14,000  lbs.  gross  vehicle  weight.     Passenger  cars  and  light  duty  trucks,  defined  as  vehicles  rated  below  8500  lbs.  gross  vehicle  weight,   were  brought  under  CARB  rules  in  2006  (beginning  with  the  2008  model  year).    Pennsylvania  does  list  a   number  of  excep.ons  to  the  CARB  standards,  based  on  off-­‐road  use,  emergency  vehicles,  military   vehicles,  and  other  special  circumstances,  which  are  iden.cal  to  exemp.ons  allowed  by  CARB.    In  short,   vehicles  rated  below  8500  lbs.  gross  vehicle  weight  or  above  14,000  lbs.  gross  vehicle  weight  must  meet   CARB  standards.    All  other  vehicles  must  meet  federal  emissions  standards  including  all  alterna.ve  fuel   9
  • 10. conversions  and  related  modifica.ons.    In  Pennsylvania  CARB  standards  apply  to  new  vehicles.     Pennsylvania  defined  “new”  vehicles  as  those  with  less  than  7500  miles  on  the  odometer.    Vehicles  with   more  mileage  are  covered  under  EPA  regula.ons  instead.    The  regula.ons  regarding  Pennsylvania   emissions  are  found  in  Title  25  Chapter  126,  Subchapter  D  (light  duty  vehicles)  and  Subchapter  E  (heavy   duty  vehicles). Late  in  2011,  Pennsylvania  developed  a  policy  document  to  encourage  more  alterna.ve  fuel   conversions.    This  was  done  in  response  to  public  interest  in  natural  gas  vehicles,  prompted  by   par.cularly  low  local  pricing  for  natural  gas  as  a  result  of  the  Marcellus  Shale  explora.on  and  extrac.on.     In  addi.on,  Pennsylvania  did  not  adopt  13  CCR  (California  Code  of  Regula.ons)  §2030,  which  relates  to   aVermarket  conversion  systems  for  alterna.ve  fuels.    As  a  result,  PA  DEP  determined  that  aVermarket   natural  gas  conversion  kits  for  light  duty  trucks  and  cars  must  have  either  CARB  or  EPA  cer.fica.on.     Therefore,  a  vehicle  conversion  would  be  valid  if  it  was  cer.fied  at  EPA  and  not  by  CARB  or  vice  versa.     This  was  intended  to  open  the  market  to  more  conversion  kits  and  engine  technology  whose   manufacturers  may  not  have  had  the  funds  to  cer.fy  under  both  systems.    Heavy  duty  vehicles  operate   under  similar  regula.ons:    new  vehicles  require  CARB  systems  and  those  with  over  7500  miles  require   EPA  or  CARB.    For  medium  duty  vehicles,  there  are  presently  no  specific  regula.ons,  so  only  EPA   cer.fica.on  is  required. All  newly  .tled  heavy-­‐duty  and  light-­‐duty  vehicles  in  Pennsylvania  must  be  CARB  cer.fied,  so  new   natural  gas  vehicles  will  need  to  be  CARB  cer.fied.    This  probably  poses  few  problems,  since  new  natural   gas  vehicles  will  generally  come  from  OEM’s  that  must  cer.fy  the  vehicles  in  order  to  sell  them.     Conversion  kits  for  vehicles  with  over  7500  miles  may  be  either  CARB  or  EPA  cer.fied.    In  addi.on,  all   new  heavy-­‐duty  and  light-­‐duty  vehicles  .tled  in  Pennsylvania  must  have  CARB  cer.fica.on  for  their   engine  technology.    Cer.fica.on  is  required  for  new  vehicles  to  obtain  a  Pennsylvania  .tle  regardless  of   whether  or  not  they  were  previously  .tled  in  another  state.    This  also  applies  to  new  vehicles  that  have   been  converted  for  natural  gas  use;  they  must  obtain  a  new  .tle  and  meet  CARB  requirements.     While  emissions  regula.ons  are  handled  by  the  PA  DEP,  the  Pennsylvania  Department  of  Transporta.on   oversees  other  regula.ons  with  respect  to  motor  vehicles,  including  .tling  and  vehicle  safety  inspec.on.     Pennsylvania  does  not  typically  require  re-­‐.tling  for  vehicles  that  undergo  significant  engine  repair  or   change.    However,  alterna.ve  energy  conversions—including  those  for  natural  gas  systems—are   considered  significant  enough  so  as  to  cons.tute  a  re-­‐building  of  the  vehicle  and  require  a  new  .tle.     This  new  .tle  for  the  vehicle  is  referred  to  as  a  modified  .tle.    Owners  must  apply  for  permits  to  obtain   modified  .tles  (This  is  the  same  process  to  obtain  Reconstructed,  TheV,  and  other  types  of  specialty   .tles),  and  modified  .tle  vehicles  must  undergo  a  different  inspec.on  regime  than  regularly  .tled   vehicles.    Hence,  adherence  to  cer.fica.on  requirements  is  likely  to  be  more  of  an  issue  under  these   circumstances.    These  inspec.ons  must  also  be  done  at  inspec.ons  sta.ons  cer.fied  for  modified   vehicles,  and  only  a  frac.on  of  inspec.on  sta.ons  are  cer.fied.    New  vehicles  must  meet  CARB   standards,  and  older  vehicles  (as  previously  defined)  may  meet  EPA  or  CARB  standards  to  obtain  a  .tle.     There  are  no  reports  of  difficul.es  in  this  process  at  present,  but  issues  may  arise  as  more  conversions   are  made,  inspected,  and  .tled.    Pennsylvania  also  does  not  relax  .tling  requirements  with  age,  as  many   other  states  do,  so  most  PennDOT  .tling  regula.ons  will  fully  apply  to  any  vehicle  that  requires  one.     10
  • 11. Titling  informa3on  is  available  at: hp://www.dmv.state.pa.us/pdouorms/fact_sheets/Modified_Vehicle.pdf  and hp://www.dmv.state.pa.us/pdouorms/mv_forms/mv-­‐426B.pdf The  EPA  enforces  an.-­‐tampering  regula.ons,  but  states  are  responsible  for  enforcing  .tling   requirements,  including  CARB  cer.fica.on  and  obtaining  modified  .tles  for  converted  vehicles,  as  well   as  other  state  regula.ons  such  as  safety  and  emissions  inspec.ons.  States  have  tended  to  focus  on   required  individual  emissions  tes.ng  and  other  safety  inspec.on  issues.    For  the  most  part,  states  have   not  rigorously  checked  engine  modifica.ons  of  any  kind  against  EPA  and  CARB  cer.fica.ons.    Because  of   this,  uncer.fied  conversions  have  been  made  and  are  in  use  throughout  the  country.    Based  on  the   number  of  cer.fied  systems,  the  percentage  of  uncer.fied  conversions  is  probably  rela.vely  high.    Part   of  this  is  due  to  the  rarity  of  these  conversions,  par.cularly  with  respect  to  other  inspec.on  issues.     However,  as  natural  gas  and  other  alterna.ve  conversions  gain  popularity,  there  will  be  more   opportunity  for  enforcement,  and  it  will  become  a  more  significant  enforcement  issue.    With  media  and   public  aen.on  on  these  conversions,  some  states  have  already  issued  leers  and  memoranda  clarifying   their  posi.ons  and  direc.ng  enforcement  officers  to  obtain  cer.fica.on  documenta.on  on  conversions   and  altera.ons.    This  includes  Pennsylvania.    Therefore,  cer.fica.on  will  become  much  more  important   in  the  near  future. Insurance  Regulation In  addi.on  to  the  public  regula.on,  there  will  likely  be  some  private  regula.on  of  natural  gas  vehicles,   primarily  from  the  insurance  industry.    In  order  for  operators  to  use  natural  gas  vehicles,  especially  for   on-­‐road  use,  there  must  be  some  means  of  insuring  them  against  loss.    The  insurability  of  natural  gas   vehicles  depends  upon  the  risks  associated  with  their  use.    If  there  are  too  many  risks,  the  premiums   must  be  set  very  high  (if  at  all),  which  will  make  the  cost  of  opera.ng  a  natural  gas  vehicle  prohibi.ve.     At  present  there  is  very  lile  loss  data  available  for  natural  gas  vehicles.    Most  that  are  used  exist  in   fleets  in  limited  use.    As  a  consequence,  insurance  companies  will  have  to  make  es.mates  of  poten.al   risks  and  losses  in  order  to  assign  premiums.     At  this  .me,  few  if  any  insurance  companies  have  official  posi.ons  on  natural  gas  vehicles,  other  than   that  they  must  fall  within  the  normal  governing  regula.ons  on  safety,  emissions,  and  other  aspects  of   opera.on  (EPA,  DOT,  State,  and  other  applicable  laws  and  regula.ons).    It  is  likely  that  vehicle   conversions  that  are  not  cer.fied  under  the  EPA  and  CARB  are  not  insurable.    Likewise,  an  insurance   company  would  almost  certainly  require  that  other  standards  like  ANSI  NGV2  and  NFPA  52  be  met  to   make  an  NGV  insurable.    Beyond  that  and  absent  other  data  on  losses,  most  insurance  companies  would   rate  a  converted  vehicle  in  the  same  way  as  the  un-­‐converted  or  tradi.onal  fuel  (gasoline  or  diesel)   vehicle.    Some  may  not  wish  to  rate  or  insure  the  vehicles  at  all,  ci.ng  the  unknown  risks  associated  with   the  technology  as  far  as  losses  and  safety  concerns.    Since  most  natural  gas  vehicles  in  use  are  presently   part  of  fleets,  they  are  most  likely  insured  by  commercial  insurers.    These  insurers  typically  use  different   parameters  to  assess  risk  than  retail  insurers  and  can  be  more  flexible  in  the  types  of  assets  they  insure,   11
  • 12. their  ra.ng  procedures,  and  risk  management.    Other  natural  gas  vehicles  are  classified  as  off-­‐road  use   and  would  be  insured  under  different  ra.ng  structures  that  primarily  take  into  account  the  special   circumstances  of  their  use,  or  they  might  not  be  insured  at  all. On  the  other  hand,  insurance  companies  are  able  to  respond  much  more  quickly  to  changes  in   informa.on  than  regulatory  bodies,  which  require  some  level  of  consensus.    Insurance  companies  may   react  quickly  to  new  data  on  losses  and  change  ra.ngs  posi.vely  or  nega.vely  as  experience   demonstrates.    An  example  of  this  in  the  alterna.ve  vehicle  market  is  the  ra.ng  structures  for  hybrids   and  electric  cars,  which  are  currently  in  a  state  of  flux.    When  they  were  introduced,  these  cars  received   comparable  ra.ngs  to  other  cars  of  their  size.    As  .me  went  by,  and  insurers  gained  accident  and  use   data  on  these  cars,  and  new  risks  were  iden.fied  which  must  now  be  included  in  their  ra.ngs.    The   baeries  in  hybrids  and  electric  cars  were  prone  to  damage  in  certain  types  of  accidents.    Once  damaged   the  baeries  had  to  be  replaced—which  turned  out  to  be  an  expensive  proposi.on.    As  a  result,  a  higher   propor.on  of  these  vehicles  are  totaled  aVer  accidents  than  comparable  cars  with  only  internal   combus.on  engines.    Damaged  baeries  can  produce  and  leak  hydrogen  gas,  which  can  cause  fires  in   the  vehicles  and  damage  adjacent  property.    Insurers  are  now  trying  to  include  the  cost  of  these  extra   losses  in  the  premiums  for  these  types  of  cars.    The  same  may  ul.mately  be  true  for  natural  gas  vehicles.     Therefore,  it  is  possible  that  natural  gas  vehicle  ra.ngs  could  change  drama.cally  once  experience  with   them  has  iden.fied  all  of  the  risks,  and  operators  must  be  aware  of  this  possibility. Conclusions The  combina.on  of  EPA  and  CARB  regula.on  presents  OEM’s  and  manufacturers  of  natural  gas  engine   and  vehicle  technology  with  a  confusing  and  daun.ng  set  of  obstacles.    To  date,  only  a  few  natural  gas   solu.ons  have  been  approved  under  EPA  or  CARB  regula.ons  for  use  in  on-­‐road  circumstances.    Those   that  have  are  typically  the  more  popular  engines  makes  and  models  that  will  achieve  the  largest  market   penetra.ons.    Helping  to  drive  this  concentra.on  is  the  fact  that  most  natural  gas  vehicles,  new  or   converted,  are  part  of  vehicle  fleets,  which  are  usually  comprised  of  more  popular  makes  and  models.     Despite  the  small  number  of  approved  solu.ons,  there  are  a  fairly  large  number  of  manufacturers   making  products.    Most  adver.se  that  they  are  only  intended  for  off-­‐road  applica.ons  in  the  U.S.,  a  less   burdensome  alterna.ve  to  on-­‐road  cer.fica.on.    Many  are  also  installed,  par.cularly  with  heavier  duty   applica.ons,  on  vehicles  that  are  beyond  their  normal  service  lives,  for  which  waivers  from  cer.fica.on   are  easily  obtained.    For  most  of  the  manufacturing  companies,  the  bulk  of  their  sales  come  from  foreign   countries,  where  cer.fica.on  and  approval  regula.ons  are  typically  less  intensive,  depending  on  the   exact  country.    The  cost  and  complexity  of  cer.fica.on  will  likely  prevent  many  new  entrants  over  the   next  few  years,  as  manufacturers  concentrate  on  the  popular  models  and  niche  applica.ons.    This   situa.on  is  analogous  to  drug  regula.on,  where  drug  makers  concentrated  on  widespread  illnesses  and   afflic.ons  like  diabetes  and  ignored  diseases  with  smaller  popula.ons  because  the  chances  of  recouping   the  development  and  regulatory  costs  at  reasonable  sale  prices  were  much  beer  with  larger  markets.     The  bulk  of  the  market  in  the  U.S.  will  likely  be  with  conversions  of  older  vehicles  that  are  beyond  their   service  lives,  since  there  is  less  scru.ny  and  an  easier  regulatory  framework. 12
  • 13. It  is  unlikely  that  this  situa.on  will  change  in  the  next  several  years.    The  current  year,  2012,  is  a  na.onal   elec.on  year  and  features  what  will  probably  be  two  widely  different  approaches  to  regula.ng  natural   gas  vehicles.    With  this  uncertainty,  it  is  unlikely  that  the  EPA  and  other  government  agencies  will   embark  on  any  substan.al  changes  in  policy  regarding  a  charged  topic  like  energy  use  and  consump.on.     The  regula.ons  will  probably  remain  the  same,  and  the  new  streamlined  versions  will  probably  not  be   clarified  un.l  2013  or  2014.    Furthermore,  should  the  elec.on  yield  a  President  and  Congressional   majori.es  more  sympathe.c  to  natural  gas  vehicle  use,  there  will  s.ll  undoubtedly  be  other  issues  of   higher  priority  to  address  in  2013,  puwng  off  any  reform  of  natural  gas  vehicle  technology  cer.fica.on   un.l  the  end  of  2013  or  2014.    Another  risk  is  that  regula.ons  could  become  more  stringent,  depending   on  poli.cal  direc.ons.    The  EPA  could  expand  the  number  of  compounds  that  it  currently  regulates  for   vehicle  emissions.    Of  par.cular  interest  to  companies  manufacturing  or  contempla.ng  using  NGV’s  is   unburned  methane.    Methane  is  a  potent  greenhouse  gas  and,  therefore,  may  become  a  target  of   regula.on.    Natural  gas  fuel  systems  and  engines  may  have  to  cer.fy  that  they  do  not  emit  significant   amounts  of  methane  from  opera.on.     These  facts  will  require  that  most  manufacturers  with  natural  gas  technology  work  with  an  OEM  or   strategic  partner  familiar  with  the  EPA  and  CARB  processes  for  engine  technology  or  remain  focused  on   off-­‐road  and  older  vehicles  for  conversion.    One  poten.al  bright  spot  is  that  industry  and  insurance   regula.on  may  quickly  adapt  to  this  market  and  set  the  standard  for  installa.ons.    Since  the  regula.ons   are  confusing  both  for  those  following  them  and  enforcing  them,  industrial  prac.ces  and  insurance   underwri.ng  may  begin  to  gain  weight  as  standards  and  influence  the  regulatory  interpreta.ons,   providing  an  organic  means  of  developing  a  posi.ve  regulatory  framework  to  develop  the  market   opportunity. The  regulatory  factors  discussed  above  will  slow  and  probably  cap  the  penetra.on  of  natural  gas   solu.ons  in  transporta.on.    The  requirements  of  the  cer.fica.on  process  mean  that  most   manufacturers  will  sell  to  off-­‐road  niche  markets  in  the  U.S.  or  manufacture  for  fleets  and  popular   vehicle  types  while  pursuing  foreign  sales  in  La.n  America,  Poland,  and  other  places  that  are  developing   shale  gas  resources.    The  regula.ons  also  place  a  bias  on  new  vehicles  that  must  be  qualified  regardless   of  fuel  type.    This  will  favor  OEM’s  who  will  manufacture  natural  gas  vehicles  for  fleet  applica.ons  at  the   expense  of  conver.ng  exis.ng  vehicles  and  fleets.    For  the  near  future,  natural  gas  vehicles  will  remain  a   small  part  of  the  market  but  an  expanding  one,  despite  the  cost  savings  and  other  benefits  rela.ve  to   diesel  fuel  and  gasoline.    However,  if  this  limited  use  produces  savings,  beer  emissions,  and  the   poten.al  for  beer  energy  security,  public  pressure  will  likely  force  policy  to  more  readily  accommodate   natural  gas  vehicles,  and  more  op.ons  will  become  available.    This  will  allow  natural  gas  vehicles  to   expand  into  all  of  the  markets  where  their  use  makes  sense. Paper  Authored  by: The  Shale  Gas  Innova.on  &  Commercializa.on  Center  (www.sgicc.org)   Mr.  Brian  Krier,  Energy  Programs  Manager,  Ben  Franklin  Technology  Partners  of  Central  and  N.  PA  (CNP) 13
  • 14. 115  Technology  Center  Building University  Park,  PA  16802 For  ques.ons,  contact  Bill  Hall,  SGICC  Director  at  either  814-­‐933-­‐8203  or  billhall@psu.edu   References EPA  regula.ons  on  alterna.ve  fuel  conversions:    hp://epa.gov/otaq/consumer/fuels/aluuels/ aluuels.htm Na.onal  Clean  Diesel  Campaign:    hp://epa.gov/cleandiesel/index.htm EPA  Guidance  to  fuel  converters:    hp://iaspub.epa.gov/otaqpub/display_file.jsp?docid=23319&flag=1 EPA  Vehicle  Fuel  Emissions  Lab:    hp://ofmpub.epa.gov/otaqpub/display_file.jsp?docid=26974&flag=1 Loca.on  of  Regula.ons  in  the  U.S.  Code:    42  USC  Sec  7522  (a)(3) Natural  Gas  Vehicles  for  America  Trade  Group:    www.ngcv.org Conversion  Kit  Resource:    www.skycng.com California  Regula.ons:    www.arb.ca.gov Pennsylvania  Clean  Vehicles  Program:    hp://www.dep.state.pa.us/dep/deputate/airwaste/aq/cars/ cleanvehicles.htm Pennsylvania  Portal  for  Natural  Gas  Vehicles:    hp://www.portal.state.pa.us/portal/server.pt/ community/act_13/20789/natural_gas_vehicle_program/1157504 14