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    I N G R A M B A R G E C O M P A N Y

    Marine Engine Emissions

    David Sehrt

    SVP & Chief Operations Officer

    January 28, 2010

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    EPAs New Marine Diesel Engine Rule

    In 1999, EPA adopted regulations requiring new marine

    diesel engines to comply with emission standards

    beginning in 2004 (tier 1) and 2007 (tier 2)

    ,

    reducing air pollution from marine diesel engines.

    particulate matter (PM) emissions by 90%n rogen ox e x em ss ons y

    2

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    EPAs Multi-Tiered ApproachFor New Engines

    Tier 1 and Tier 2emission standards currently applicable to new marine diesel engines

    Tier 1 limits NOx emissions only, and applies to model years 2004 and

    laterTier 2 limits NOx, CO, and PM, and applies to model years 2007 and later

    Tier 3near term emission standards for existing engines

    for most towboats, Tier 3 standards become effective in 2014

    Tier 4long term emission standards for newly-built engines

    - -

    technology

    for most of our towboats, Tier 4 standards become effective in 2016

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    Marine Emission Levels

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    Note: EPAs new emission standards, which generally apply to

    new vessels onl , ma also a l to existin vessels

    which undergo the following kinds of changes:

    en ine remanufacturerthe replacement of all cylinder liners, either in one maintenance

    event or over the course of five years

    either with a new or, in certain circumstances, an existing engine

    vessel refurbishin

    vessel that has been modified such that the value of themodifications exceeds 50 percent of the value of the modified

    vessel

    5

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    Provisions for Remanufactured Marine

    Engines

    Remanufacture = overhaul

    er an ear er eng nes

    Maximum engine power > 600kw = 800 HP

    Built after 1972

    Not subject to the standards if no certified remanufacturingsys em s ava a e

    A certificate of conformity is required before an over-hauled

    There are also engine labeling requirements

    6

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    Here

    Built Replace allYes Yes Yes

    or more?etween 7

    And 2012?

    y n er ners

    in 5 years?

    Available?

    No NoNoYes

    No

    No ChangeInstall

    Certified

    System

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    EMD Overhaul Kit Comparison

    EMD Overhaul Kit Comparison

    16 Cylinder 645 Turbocharged Engine

    Pre-Regulation EPA Approved Kit

    Power Assemblies Required Required

    Injectors Required Required

    Aftercoolers Required Required

    Aftercooler Piping Not Required Required

    Not Required Required

    Total Cost er en ine

    $80,807 $116,943

    8Pricing is for hardware, per engine, only.

    EPA approved k it.

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    EMD Certified Overhaul Kit

    EMD Certified Overhaul Kits

    EPA Effective Dates

    EMD Engine Model Date Available

    645 non-turbocharged 11/27/2009

    645 turbocharged 3/5/2010

    710 turbocharged 2/25/2010

    Note: The "Date Available" is the date after which the Certi fied Kits must

    be used at overhaul.

    Avai lable means that the k it can be obtained and installed in a

    timely manner consistent with business practices.

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    -

    10Diesel Oxidation Catalyst

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    -

    11Diesel Oxidation Catalyst

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