BLOG: Through The Pipeline

[#1]

Caterpillar must invest heavily in research and development as emissions limits for existing regulations become more stringent and new regulations are introduced. Green house gas (GHG) legislation and revisions to the national ambient air quality standards (NAAQS) are examples of Federal actions that may challenge engine manufacturers and owners and operators in the future.

Complicating the regulatory landscape, many States have enacted or proposed to enact new regulations. These regulations not only impact engine manufactures, but also owners and operators of existing engines and equipment. While states are “preempted” by the Federal Clean Air Act (CAA) from setting emissions limits for mobile engines, most conventional and unconventional petroleum related activities require local permitting. Through the permitting process, states may limit maximum release of various criteria and HAP pollutants that result from activities such as drilling, well service, and compression sites.

Caterpillar employees work hard to stay abreast of the latest Federal and State regulations to ensure our products are capable of maintaining compliance and meeting customers needs. With that said, early identification of new and emerging regulations help to ensure our development efforts and support services meet the needs of our dealers and end users. In some cases it’s our customers who make us aware of regional regulations as they come to us with questions about a local news story or a local air quality board meeting.

I’d like to encourage our blog readers to stay informed, get involved, and to share your experiences addressing engine exhaust emissions issues. So, are you aware of any state or regional level regulatory activities that impact your business opportunities? Have you had challenges with your local permitting process? Please share your experiences, offer advice, and post questions or offer answers to others questions.

[#2]

Eric,

Im curious to know how you see CAT Emissions Solutions evolving to meet your customer's needs?  Does CAT ever plan to develop CES aftertreatment for all markets or only the retrofit areas?  And what about lobbying and dealer education for regulatory issues?  Most dealers I feel are not in a position to create a position that demands an extremely talented and educated individual to deal with Emissions laws both state and federal.  What are your toughts on how to handle and develop these areas?  

Regards,

Nick C.

[#3]

Hi Nick C.,

Thanks for the question and comments. To address your question regarding CES product offerings I recruited Brian Huffman, the O&G Industry Segment Manager at Caterpillar Emissions Solutions, who provided the following reply.

"Cat Emissions Solutions has a portfolio of aftertreatment products that can utilized to meet many existing and pending emissions requirements. Among these products are DOCs, OCs, TWCs, DPFs and our integrated SCR system, the E-POD. These products can be utilized for both retrofit and first fit opportunities pending the specific regulation or requirement in place. We are constantly assessing the various industry segments down to sub-segment level for future product development needs just as we assess state, local, and federal regulations to ensure that if a profitable opportunity presents itself we do the necessary product development to provide a durable and reliable product that meets the market needs. If you have any specific opportunities where aftertreatment equipment is needed, please don't hesitate to let us know and we will do our best to find a solution. "

Regarding your other comments about dealer education for regulatory issues I'd like to offer my experience since joining Caterpillar December 2012. Part of my job is to develop relationships not only within Caterpillar Inc, but also within our dealership network. Not necessarily to "educate" our dealers, but rather to share information and coordinate efforts to gain increased understanding and influence within regulatory activities.

Towards that goal of developing cooperative relationships, I've began to meet and talk with dealership level regulatory  experts that act as internal consultants within their organizations. So far, everyone that I've met at the dealership level has been an excellent source for regulations within their region including understanding of the relevant Federal regulations.  Additionally, they each had direct phone numbers to the same internal Caterpillar subject matters experts that I consult when I have questions.  With that said, I understand your comments and will keep these in mind in my efforts and work with the dealers and internal groups within Caterpillar.

As a matter of fact, next week I'm participating in a meeting that will include employees from Caterpillar Global Petroleum, Caterpillar Emissions Solutions, Caterpillar Electric Power Division,  and Caterpillar Emissions Regulations & Conformance Division.  The primary goal of this meeting is to share information, foster discussion, and engage in group  regulatory analysis. The agenda for this meeting will  also include a discussion on dealer coordination and support.  I'll follow-up on this topic in future blog posting to announce and discuss efforts initiated to improve regional coordination.

Regards

Eric

[#4]

Eric- 

I am all too familiar with the products as I used to be a rep for the company before the CAT acquisition.  CAT in my mind will have to become a solutions provider in unifying their emissions business with one brand oppose to the mixture of JM and CAS products you currently offer.  More importantly, advertise retrofits and new factory (Tier/EPA/CARB certified) product with a solid A & I, warranty system, and part logistics to ensure the brand recognition.  In my experience Mining & Oil/Gas has the dominant influence of choice to make these applications happen.  Which is one the reasons I was interested in seeing how your position fit into play.  Unifying EPG/MARINE/Earthmoving  and other markets seems to be challenging still.  Granted, the business and evolution of regulations are evolving, but this to me is a heavy area that has been challenging for years to come.   By having a blanket offering for all your product lines you will ensure customers are aware of the CAT brand, service committment, and backing.  Having a myriad of offerings and diferent support systems can be cumbersome to customers and dealers alike.  I am hopeful CAT will continue to evolve in this area with the right technologies for their dealers and customers.

Regards,

Nick C. 

[#5]

Xtreme Fuel Treatment from Syntek Global has been proven to decrease harmful emissions by up to 33%.

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