2007 Down, 2010 to Go

With the 2007 EPA emission requirements met, engine and school bus OEMs are working on staying ahead of the game to meet the next round of standards

Stephane Babcock | Associate Editor

A finished product is a beautiful thing. And although end users can appreciate the hard work and sweat put into it completion, they often fail to fully understand all the steps taken to pass go and collect the proverbial $200.

“Cummins follows a structured, disciplined approach to technology development, which requires many years,” said Cummins spokesperson Cyndi Nigh. “Once a certain technology path has been determined, the company pursues another methodic, multi-year process gathering and incorporating customer input, conducting thousands of hours of analysis-led design work and exhaustive testing and evaluation to design, verify the design and validate the product.”

This extensive research has paid off, as the company has already met the 2010 requirements with its Cummins Westport ISL G natural gas engine. But, research has continued for its 5.9 litre B Gas Plus and B LPG Plus engines certified for 2007.
Although they are ahead of the curve, some districts may be wary of purchasing CNG buses because of the initial institutional costs related to fueling stations and safety measures.

“The first thing they need to do is look at their infrastructure,” said Antonio Rodriguez, transportation director for Los Angeles Unified School District. “In L.A. county, fire department regulations require that garages have an air evacuation system. Also, fueling stations must be built. It’s not just about the cost of buses, its also the cost of the infrastructure.”

Companies can also benefit from complying early or, in some cases, over-complying.

“If a manufacturer can over-comply or comply early with one engine, they receive average banking and trading (ABT) credit that they can use on engine that may not comply in time,” said Cleophas Jackson, assistant director of the Environmental Protection Agency’s compliance and innovative strategies division. “But it depends on the amount of credit they have available.”

Some companies have been working on the 2010 deadline since as early as 2004. But small bumps continue to present problems, which companies also faced while completing their 2007 upgrades. Specifically, they concern additional costs to their customers.

“Meeting the requirements set by the EPA for 2004, 2007 and 2010 have required the introduction of new hardware and technology into the engine and exhaust systems of school buses,” said Keith Kladder, marketing manager for IC Corp.

IC, unlike other school bus OEMs, is an integrated manufacturer, which can ease the process of determining costs and communication between the different departments. But, the company cannot escape the reality of rising costs due to new technologies and steadily increasing commodity prices.

“The good news for the customer is that there continues to be plenty of competition in the diesel engine business,” said Kladder. “In the short term, prices may rise. Over the long run, innovation and the maturing of current technologies should help bring prices back down.”

According to Kitco, a leading precious metal dealer, many metals that are used in the construction of school buses, including platinum and palladium, are steadily rising. Since 2002, platinum has jumped from a little more than $500 per ounce to almost $1,300 an ounce.

One of the most effective tools in keeping costs from affecting the customer is open communication between the different levels of manufacturing. For Blue Bird, the open relationship between it and the engine supplier has helped smooth the process.

“Blue Bird purposefully and significantly improved our communication and cooperation with our engine supplier partners,” said Ron Smith, director of marketing for Blue Bird. “We are proactively sharing information with the engine suppliers as soon as the information becomes available to work towards 2010.”

The company will use this bond with the engine manufacturers to help control the increased costs affecting the industry. In the end, it believes its customers understand the need for the increases caused by the more stringent emission standards.

The EPA has also kept the lines of communication open since the program’s inception. It has had an on-going dialogue with the industry, according to Jackson.

“We have used a collaborative process to come up with the standards and we continue to do this with the industry,” said Jackson, adding he hasn’t heard from any manufacturer not being able to meet the 2010 standards.

School districts have also kept on eye on the changes in the engine industry, watching the price changes very closely. Some districts, financially conscious of the increase in prices between the 2006 and 2007 engines, worked with the bus dealers to plan ahead.

“A lot of districts bought forward last year,” said Brad Searcy, a salesman for Rivers Bus Sales, Inc., in Jacksonville, Fla. “I can applaud the districts for buying up front to save money. It’s a good expenditure when money is tight.”

Rumors of a rush to buyout the 2007 models was met with little fanfare.

“We were able to meet the demands because IC Corp. was well positioned to meet the demands,” said Ed Joyce, vice president of operations for Leonard Bus Sales in Deposit, N.Y. “We certainly had customers interested in the $6,000 savings and others who were interested in running the cleanest buses available.”