Page 246 - Peterson 85 Years and Going Strong

THE LAST STRAW FOR CATERPILLAR
CARB’s 2010 ruling of an 85 percent carbon emissions reduction plus a lower NOx level finally pushed Caterpillar over the edge. “When they reached 85 percent reduction, the next thing CARB wanted to address was NOx levels,” explains Galindo. “Ironically, reducing particulate matter actually boosts NOx levels. So the next goal from the EPA was to lower the NOx levels while keeping PM at 85 percent.” That’s where Caterpillar drew the line—choosing to not build a 2010 emissions-compliant product. That’s when they exited the on-highway engine business altogether.
EMISSIONS REGULATIONS AND COMMERCIAL ENGINES
Providing power is a core service that goes back to Peterson’s founding in 1936. But sixty years later, the EPA’s diesel emissions mandates changed the rules for the entire industry. From EPG and in- dustrial engines to trucking and marine, Peterson customers have all felt the bite of CARB’s man- dates. The emissions regulations have affected ev- ery combustion engine in California.
On the industrial side of the house, commer- cial engines like standby generators, ag pumps, air compressors, and chippers all require annual permits, much like DMV registration for auto- mobiles. Thousands of standby generators in Pe- terson’s territory cost roughly $1,400 per unit per year for a use permit, paid to their local air-quality district. But with the changing emissions land- scape, commercial engine owners were staring at major changes. California developed the Carl Moyer program to incentivize owners to make those changes. However, for the Electric Power Generation (EPG) standby market—which com- prises the vast majority of Peterson’s commercial engine business—the incentive programs haven’t been much help. “It just doesn’t make sense to
Top to bottom: Cogeneration application at Gresham Wastewater Plant, Oregon in 2015; Standby generator at Good Samaritan Hospital,
San Jose, California in 2018
244 | PETERSON: 85 YEARS AND GOING STRONG