The shift to Tier 4 emissions standards for non-road diesel engines has now been going on for nearly a decade, but it’s still prompting new questions, conversations and decisions as manufacturers and fleet managers adjust to the changes.
Beyond the talk around Tier 4 are lingering questions about what comes next. Is Tier 5 just around the corner? How much will all these changes cost and what will it take to keep up?
A few weeks before he was set to speak on the topic at the Independent Equipment Dealers
“I don’t think we’re going to see things get scaled back. It’s really, really tough to reverse an environmental regulation once it’s on the books, especially one that’s caused the manufacturers to spend as much as they had.”— Mike Buckantz, CEO, Associates Environmental
Association’s annual meeting in Orlando this February, consultant Mike Buckantz said he could already predict the top question he’d get from attendees: “Is the (Environmental Protection Agency) going to pull the trigger on another tier phase?”
In short, he said, the answer is no — at least not in the near future. With a new U.S. president pushing to review and roll back some vehicle emissions standards, it’s unlikely the federal government will be looking to advance beyond the latest slate of changes.
“There’s nothing on the radar that the EPA is going to start rule-making on a Tier 5 regulation,” said Buckantz, CEO of Huntington Beach, Calif.-based consulting firm Associates Environmental.
Tough to rollback regs
At the same time, however, Buckantz said manufacturers and fleet managers shouldn’t expect to see things go back to the way they once were in terms of engine technology.
“I don’t think we’re going to see things get scaled back,” he said. “It’s really, really tough to reverse an environmental regulation once it’s on the books, especially one that’s caused the manufacturers to spend as much as they had.”
The current Tier 4 standard refers to the latest in a series of emissions standards for non-road diesel engines that the EPA adopted in 1994 and began enacting in 1992. This has resulted in a dramatic shift for the engines of off-road equipment for construction, mining and other industries. The rules mandate upgraded technology that reduces particulate emissions by more than 85 percent — or in some cases 95 percent. Those improvements have come at a cost, often upping the price tag of Tier 4-compliant machinery by 50 percent over similar products that meet Tier 3 standards, Buckantz said.
“By and large it works,” he said. “We haven’t had a lot of problems with the new technology in the marketplace. But it is spendy.”
Jim Fier, Cummins Inc. vice-president of engineering, talks about the company’s new Stage V compliant engines after they were unveiled at the 2016 Bauma heavy equipment trade fair in Munich, Germany. Don’t expect similar Tier 5 engines in the U.S. anytime soon, says consultant Mike Buckantz.File photo: Keith Norbury
(A proposed Tier 5 standard would reduce those pollutants to zero. Several engine manufacturers, including Cummins, have already unveiled engines to meet a similar Stage V standard in Europe.)
Because the pricier equipment includes more efficient components, Buckantz said some of the added costs should be recouped over time. But whether or not someone thinks a Tier 4-compliant piece of equipment will pay off may be secondary to other concerns.
California leads way
Increasingly, companies hoping to work on government projects with public money will find that they’re required to use Tier 3 or Tier 4-compliant equipment.
“Contractors need to focus on bid specs,” Buckantz said. “Private owners trying to get projects through the environmental review process are really punting the ball to the contractors.”
Requirements can vary, depending on location. California continues to be the most aggressive state in terms of energy and environmental standards, but others are starting to look to the Golden State for ideas.
“Oregon has been casting about trying to find ways to get close to having California’s diesel off-road and on-road truck regulations,” Buckantz said.
He said other states with large urban areas could be next to follow suit. Elected officials from places like New York, New Jersey and South Carolina, with a considerable amount of diesel engine activity, may lead the charge, he said.
“If you’re building a pipeline in Nevada or building a pipeline in Massachusetts, the requirements for the construction equipment is going to look a bit different,” he said.
The shifting landscape has many fleet managers wondering if they can get help modernizing their equipment, Buckantz said.
Financial help expected
Until recently, there was little in the way of financial help. But he said local proceeds from the major legal settlement with Volkswagen over its failures in emissions testing could be a boon for fleets making upgrades.
“It will be up to the states on how they want to discharge some of the money they are getting,” Buckantz said. “Some of the state will make money available for grants to help companies, particularly small companies, help fund the cost of the new machines.”
As time goes by after the implementation of the new standards, Buckantz said buyers are likely to see more upgraded technology on the used equipment market. Growth in the economy and related surges in infrastructure projects has more companies buying new equipment and keeping the used market flush.
“A couple different things are rising the tide and the availability of the equipment in the used market,” he said. “Economic conditions are reasonably favorable right now.”
While the technology for engines may have changed in recent years, Buckantz said his top advice for fleet managers remains the same: good maintenance is key. He said sometimes that’s now easier because the machines are more efficient — or more challenging because they have so many complex bells and whistles working to make them cleaner.
“If you don’t want trouble on your job site, make sure your engines aren’t smoking,” he said. “The best way is to maintain them really well.”
— Erin Golden
Erin Golden is a writer based in Minnesota.