Document ID: EPA-HQ-OAR-2004-0008-0506
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2007-01-16T05:00Z

U.S. Environmental Protection Agency

Small SI Engine 

Technologies and Costs

Draft Report

August 2006

021348

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U.S. Environmental Protection Agency

Small SI Engine 

Technologies and Costs

Final Report

August 2006

Prepared for

	U.S Environmental Protection Agency

Office of Transportation and Air Quality

2000 Traverwood Drive

Ann Arbor, Michigan 48105

Prepared by:

	Louis Browning and Seth Hartley

ICF International

394 Pacific

San Francisco, CA 94111

(415) 677-7100

	

This page intentionally left blank.

Table of Contents

  TOC \o "1-2" \h \z \t "Heading 3,3"    HYPERLINK \l "_Toc142199223" 
1.	Introduction	  PAGEREF _Toc142199223 \h  1-1  

  HYPERLINK \l "_Toc142199224"  2.	Background	  PAGEREF _Toc142199224 \h
 2-1  

  HYPERLINK \l "_Toc142199225"  3.	Technology Description	  PAGEREF
_Toc142199225 \h  3-1  

  HYPERLINK \l "_Toc142199226"  3.1.	Baseline Technologies	  PAGEREF
_Toc142199226 \h  3-2  

  HYPERLINK \l "_Toc142199227"  3.2.	Advanced Technologies	  PAGEREF
_Toc142199227 \h  3-2  

  HYPERLINK \l "_Toc142199228"  3.2.1.	Engine Improvements	  PAGEREF
_Toc142199228 \h  3-2  

  HYPERLINK \l "_Toc142199229"  3.2.2.	Overhead Valve Configurations	 
PAGEREF _Toc142199229 \h  3-4  

  HYPERLINK \l "_Toc142199230"  3.2.3.	Pressurized Oil Systems	  PAGEREF
_Toc142199230 \h  3-4  

  HYPERLINK \l "_Toc142199231"  3.2.4.	Cylinder Liners	  PAGEREF
_Toc142199231 \h  3-4  

  HYPERLINK \l "_Toc142199232"  3.2.5.	Electrically-Controlled
Carburetion	  PAGEREF _Toc142199232 \h  3-5  

  HYPERLINK \l "_Toc142199233"  3.2.6.	Mechanical Fuel Injection	 
PAGEREF _Toc142199233 \h  3-5  

  HYPERLINK \l "_Toc142199234"  3.2.7.	Electronic Fuel Injection	 
PAGEREF _Toc142199234 \h  3-6  

  HYPERLINK \l "_Toc142199235"  3.2.8.	Catalysts	  PAGEREF _Toc142199235
\h  3-6  

  HYPERLINK \l "_Toc142199236"  4.	Cost Methodology	  PAGEREF
_Toc142199236 \h  4-1  

  HYPERLINK \l "_Toc142199237"  4.1.	Hardware Costs	  PAGEREF
_Toc142199237 \h  4-1  

  HYPERLINK \l "_Toc142199238"  4.2.	Fixed Costs	  PAGEREF _Toc142199238
\h  4-2  

  HYPERLINK \l "_Toc142199239"  4.2.1.	Design and Development	  PAGEREF
_Toc142199239 \h  4-3  

  HYPERLINK \l "_Toc142199240"  4.2.2.	Certification Testing	  PAGEREF
_Toc142199240 \h  4-3  

  HYPERLINK \l "_Toc142199241"  4.2.3.	Durability Testing	  PAGEREF
_Toc142199241 \h  4-4  

  HYPERLINK \l "_Toc142199242"  4.2.4.	Tooling Costs	  PAGEREF
_Toc142199242 \h  4-8  

  HYPERLINK \l "_Toc142199243"  4.3.	Operating Costs	  PAGEREF
_Toc142199243 \h  4-8  

  HYPERLINK \l "_Toc142199244"  5.	Results	  PAGEREF _Toc142199244 \h 
5-1  

 

List of Figures

  TOC \h \z \c "Figure"    HYPERLINK \l "_Toc142199245"  Figure 2-1
Examples of Class I Non-Handheld Small SI Engine Uses	  PAGEREF
_Toc142199245 \h  2-2  

  HYPERLINK \l "_Toc142199246"  Figure 2-2 Examples of Class II
Non-Handheld Small SI Engine Uses	  PAGEREF _Toc142199246 \h  2-2  

 List of Tables

  TOC \h \z \c "Table"    HYPERLINK \l "_Toc142199247"  Table 1-1 Small
Non-Handheld SI Engine Classes	  PAGEREF _Toc142199247 \h  1-2  

  HYPERLINK \l "_Toc142199248"  Table 3-1 Engine Parameters Used for
Costing	  PAGEREF _Toc142199248 \h  3-2  

  HYPERLINK \l "_Toc142199249"  Table 3-2 Catalyst Characteristics for
Small SI Engines	  PAGEREF _Toc142199249 \h  3-9  

  HYPERLINK \l "_Toc142199250"  Table 4-1 Annual Production Levels
(units per year)	  PAGEREF _Toc142199250 \h  4-3  

  HYPERLINK \l "_Toc142199251"  Table 4-2 Design and Development Costs
per month	  PAGEREF _Toc142199251 \h  4-4  

  HYPERLINK \l "_Toc142199252"  Table 4-3 Certification Testing Costs	 
PAGEREF _Toc142199252 \h  4-4  

  HYPERLINK \l "_Toc142199253"  Table 4-4 Class I Engine Dynamometer
Durability Testing Costs	  PAGEREF _Toc142199253 \h  4-5  

  HYPERLINK \l "_Toc142199254"  Table 4-5 Class II Engine Dynamometer
Durability Testing Costs	  PAGEREF _Toc142199254 \h  4-6  

  HYPERLINK \l "_Toc142199255"  Table 4-6 Class I Engine Field Aging
Costs	  PAGEREF _Toc142199255 \h  4-7  

  HYPERLINK \l "_Toc142199256"  Table 4-7 Class II Engine Field Aging
Costs	  PAGEREF _Toc142199256 \h  4-8  

  HYPERLINK \l "_Toc142199257"  Table 4-8 Fuel Savings for Class I
Engines	  PAGEREF _Toc142199257 \h  4-10  

  HYPERLINK \l "_Toc142199258"  Table 4-9 Fuel Savings for Class II
Engines	  PAGEREF _Toc142199258 \h  4-10  

  HYPERLINK \l "_Toc142199259"  Table 5-1 Costs for Certification and
Durability Testing	  PAGEREF _Toc142199259 \h  5-1  

  HYPERLINK \l "_Toc142199260"  Table 5-2 Costs for Engine Modifications
for Small SI Engines	  PAGEREF _Toc142199260 \h  5-2  

  HYPERLINK \l "_Toc142199261"  Table 5-3 Costs for Converting Side to
Overhead Valve Configurations for Class I Engines	  PAGEREF
_Toc142199261 \h  5-3  

  HYPERLINK \l "_Toc142199262"  Table 5-4 Costs for Converting to a
Pressurized Oil System	  PAGEREF _Toc142199262 \h  5-4  

  HYPERLINK \l "_Toc142199263"  Table 5-5 Costs for Converting to
Electronic Carburetors	  PAGEREF _Toc142199263 \h  5-5  

  HYPERLINK \l "_Toc142199264"  Table 5-6 Costs for Converting to
Mechanical Fuel Injection	  PAGEREF _Toc142199264 \h  5-6  

  HYPERLINK \l "_Toc142199265"  Table 5-7 Costs for Converting to
Electronic Fuel Injection	  PAGEREF _Toc142199265 \h  5-7  

  HYPERLINK \l "_Toc142199266"  Table 5-8 Costs for Adding Cast iron
Cylinder Liners	  PAGEREF _Toc142199266 \h  5-9  

  HYPERLINK \l "_Toc142199267"  Table 5-9 Costs for Dual Mufflers for
V-Twin Engines	  PAGEREF _Toc142199267 \h  5-10  

  HYPERLINK \l "_Toc142199268"  Table 5-10 Three-Way Catalyst Costs for
Single Cylinder Small SI Engines	  PAGEREF _Toc142199268 \h  5-11  

  HYPERLINK \l "_Toc142199269"  Table 5-11 Three-Way Catalyst Costs for
V-Twin Small SI Engines	  PAGEREF _Toc142199269 \h  5-12  

  HYPERLINK \l "_Toc142199270"  Table 5-12 Three-way Catalysts Cost
Estimates	  PAGEREF _Toc142199270 \h  5-13  

  HYPERLINK \l "_Toc142199271"  Table 5-13 Three-way Catalyst Unit Cost
Estimates for V-Twin Engines	  PAGEREF _Toc142199271 \h  5-14  

 .

Introduction

	The United States Environmental Protection Agency (EPA) began
regulating emissions from small, nonroad spark-ignited (SI) engines with
Phase 1 standards beginning in 1997.  Small SI engines are designated as
those less than 19 kilowatts (kW) (25 horsepower [hp]) and are broken
into Class I and II for non-handheld engines and Classes III through V
for handheld engines, depending on the intended use and engine
displacement.   In March 1999, EPA finalized new, more stringent Phase 2
regulations for small, non-handheld SI engines, and in March 2000, EPA
finalized Phase 2 regulations for small, handheld SI engines.  EPA is
now considering new exhaust emissions standards for small, non-handheld
SI engines that may include technologies such as engine redesign,
improved fueling techniques and exhaust after-treatment.

	Engine redesigns could include improved machining tolerances and
gaskets, better oil control, migrating from side valve (SV) to overhead
valve (OHV) combustion chamber design, modified cylinder liners, and/or
use of a pressurized oil system.   Improved fueling techniques could
include electronically controlled carburetion, mechanical fuel injection
or electronic fuel injection.   Exhaust after-treatment includes the use
of catalysts in the muffler.  

	The purpose of this report is to provide details on technologies and
estimated costs for small, non-handheld SI engines that could be used to
meet reduced emission levels.  ICF International priced the technologies
mentioned above.  Because the technology mix needed to comply with
reduced emission standards varies for the range of Small SI non-handheld
engines, the array of technologies discussed in this report encompasses
what will likely be available for manufacturers to meet any new
standards over the engine range.  All technologies considered for small,
non-handheld SI engines are currently found in the marketplace to a
limited degree. Table 1-1 provides definitions of Class I and II small
non-handheld engines.

	The cost estimates include fixed and variable costs and rely on
information gathered from engine and equipment manufacturers and ICF
International’s experience in costing other SI engine technologies. 
Representative engine models of different sizes are used to develop
incremental technologies and are discussed in Section 3.  

Table   STYLEREF 1 \s  1 -  SEQ Table \* ARABIC \s 1  1  Small
Non-Handheld SI Engine Classes

≥100 and < 225 cubic centimeters (cc)	> 225 cc

Examples 	Walk behind mowers, Pressure washers, Air pumps, Generators
Riding mowers, Commercial turf equipment, Generators

Source: EPA Phase 2 Standards for Small SI Engines

	The following sections discuss background information on small,
non-handheld SI engines (Section 2), describe baseline and advanced
technologies (Section 3), and present the cost estimate methodologies
(Section 4) and the results obtained (Section 5). 

Background

Small SI engine manufacturers may purchase components from other
manufacturers, but typically produce and assemble the engine system
themselves.  Engine manufacturers will be largely responsible for
additional costs associated with advanced technologies for exhaust
emissions mitigation in the United States. 

	Small, non-handheld SI engines in the U.S. are generally only available
in a four-stroke configuration.  (Some two-stroke engines are still
available for snow throwers.)  Fuel delivery is typically carburetion,
although a few systems employ fuel injection.  Although many use
overhead valve (OHV) induction technology, side valve (SV) induction is
still common in Class I engines.  Most small SI engines do not have
after-treatment of exhaust gases from the engine. 

	Figure 2-1 shows some current examples of Class I small, non-handheld
SI engine applications.  The first example is a 6.5 hp Briggs and
Stratton residential-grade power washer.  It has a retail price of about
$400.  The second piece of equipment is a 5.5 hp Honda residential-grade
walk behind mower with OHV configuration.  It retails for around $340. 
The third example is a 5.5 hp consumer generator from Yamaha.  It offers
OHV configuration and retails for about $1,140.  

	Figure 2-2 shows some current examples of Class II small, non-handheld
SI engine applications.  The first piece of equipment is a Toro riding
lawnmower with a 17 hp OHV Briggs and Stratton Vanguard engine.  It has
a retail price of around $2,850.  The second example is a 5 kW Kohler
marine generator with a 16 hp Kawasaki liquid-cooled 2-cylinder engine. 
It retails for $3,394.

Figure   STYLEREF 1 \s  2 -  SEQ Figure \* ARABIC \s 1  1  Examples of
Class I Non-Handheld Small SI Engine Uses

 

Gen Set

Sources: 

 1.   HYPERLINK "http://www.briggsandstratton.com/" 
http://www.briggsandstratton.com/ 

 2.   HYPERLINK "http://www.hondapowerequipment.com/" 
http://www.hondapowerequipment.com/ 

 3.   HYPERLINK "http://www.yamaha-motor.com/" 
http://www.yamaha-motor.com/ 

Figure   STYLEREF 1 \s  2 -  SEQ Figure \* ARABIC \s 1  2  Examples of
Class II Non-Handheld Small SI Engine Uses

Marine Generator Set

Sources: 

1.   HYPERLINK "http://shop.briggsandstratton.com/" 
http://shop.briggsandstratton.com/

 2.   HYPERLINK "http://www.kohlerpowersystems.com" 
http://www.kohlerpowersystems.com Technology Description

	Because engine manufacturers are expected to use a mix of technologies
to meet future, more stringent emission standards, this study focuses on
a range of technologies and develops incremental costs in migrating from
the Phase 2 engine baseline to these technologies.  The range of
technologies that could be employed varies significantly, from refined
engine designs, to improved fuel delivery, to exhaust after-treatment. 
The baseline package consists of a Phase 2 compliant carbureted
four-stroke engine without exhaust after-treatment.

	Advanced technologies considered in this analysis include all of the
following.  For improved engine design, we considered improved oil
control, improved casting and machining processes, improved combustion
chamber designs, reduced crevice volumes, improved cooling, calibration
changes, better gaskets and fuel filtering, and larger induction coils. 
Other engine improvements considered separately are migration from SV to
OHV configurations, a pressurized oil system, and cast iron cylinder
liners.  For fuel induction, we considered migrating from traditionally
carbureted fuel induction to both open and closed loop electronic fuel
injection, open loop electronically controlled carburetors with
electronic governors, and mechanical fuel injection systems.  For
exhaust after-treatment, we considered the addition of three-way
catalysts in the exhaust muffler for both SV and OHV engines.  

	Sales weighted sizes (cc), power ratings (hp), and sales volumes were
used per Phase 2 useful life category of Small SI engines for costing
purposes.   These metrics are shown in Table 3-1 and are based upon
information provided to EPA by engine manufacturers as part of the
certification process for small SI non-handheld engines. Other engine
models of similar sizes will have similar changes and costs.  Note that
not all manufacturers produce engines in the configurations shown in
Table 3-1, and not all configurations are available for all sizes today
from all manufacturers.  Where not available, estimates were made based
on similar sized engines and comparable technology.  

Table   STYLEREF 1 \s  3 -  SEQ Table \* ARABIC \s 1  1  Engine
Parameters Used for Costing

Class	Valve Configuration	Useful Life (hours)	Engine Power (hp)	Average
Units per Year per Engine Family

Class I	SV	125	3.3	1,400,000

	OHV	125	5.1	110,000

	OHV	250	5.0	20,000

	OHV	500	5.2	30,000

Class II	OHV	250	12.2	70,000

	OHV	500	12.0	60,000

	OHV	1000	15.6	25,000

	OHV

(water cooled)	2000	21.4	3,000

		

Baseline Technologies

	As shown in Table 3-1, the advanced technology considered will vary
with the baseline technology to which it is compared.  However, nearly
all baseline engines are air-cooled, carbureted, lack any exhaust
after-treatment and have either one or two cylinders.   Class II water
cooled engines were placed in a useful life of 2,000 hours and typically
have two to four cylinders. 

Advanced Technologies

	A mix of advanced technologies is likely to be applied to the suite of
new engines produced to comply with any new emission standards.  As
discussed above, likely candidates to be employed include engine
modifications, improved fuel delivery, and exhaust after-treatment.
These technologies could be marketed individually or in combination. 
The technologies are discussed below.

Engine Improvements 

	Improved engine design and construction enhances engine performance and
durability, improves fuel economy, and reduces emissions.  Engine
improvements can include several different processes and components.  We
focused on the following improvements: 

Casting and machining tolerances

Combustion chamber modifications

Reduced crevice volumes

Improved oil control

Improved cooling

Better gaskets and fuel filtering

Larger/better induction coil

Improved calibrations

	Improvements in casting and machining tolerances generally allow
engines to meet more restrictive emissions levels over a longer
lifetime, reduce variance between engines, and further ensure quality in
engines produced. However, additional costs can be incurred through
redesign and possibly from slowing down the manufacturing process and
the requirement of additional tools.  Improvements in combustion chamber
design focus on improved combustion chamber geometry to produce a more
uniform charge distribution, more complete charge burning, and better
efficiency. Modifying the chamber design generally does not require
additional parts.   Reducing the crevice volume between the compression
ring and the top of the piston greatly reduces the amount of unburned
fuel trapped in that region and helps minimize unburned fuel emissions. 
Improved cooling on SV engines helps to reduce bore distortion which
results in improved oil control.  This will reduce the amount of
fugitive oil that leaks into the combustion chamber (which degrades the
combustion and emissions characteristics over time) and limits catalyst
poisoning.  Improved cooling also helps reduce nitrogen oxides (NOx)
emissions and results in extended engine life.  Better gaskets reduce
air leaks in the intake manifold and carburetor and minimize lean
air/fuel ratio shifts as the engine ages.  By placing a fuel screen at
the inlet to the carburetor, large contaminants such as rust particles
are captured before entering the carburetor, which reduces the
possibility of clogging jets and needle valves. Larger induction coils
would insure enough spark energy to ignite the air/fuel mixture in the
cylinder on a more consistent basis.

Overhead Valve Configurations

	SV four-stroke engines are mechanically simpler and cheaper to
manufacture than OHV four-stroke engines; although, SV design dictates
that cylinder cooling is much less efficient than in OHV configurations.
 Because of this, SV engines have to run rich, and the cylinders tend to
distort, resulting in higher hydrocarbon (HC) emissions.  Also, the
larger surface-to-volume ratio in SV engines provides more surface area
for flame quenching and has poorer mixing and combustion than in OHV
engines, both of which lead to greater emissions.  Although
traditionally most small SI engines have used SV technology for its
reduced cost and weight, OHV engines are becoming more common as
emissions mitigations become more important.  Most Class II engines are
OHV engines.

Pressurized Oil Systems

Pressurized oil systems are superior to non-pressurized because they
provide positive oil delivery to the internal components.  Instead of
just splashing oil onto the bearings, lubrication is delivered as a
light mist to the bearings, thus increasing bearing life, decreasing
temperature, and reducing maintenance.  This improved lubrication system
will result in enhanced performance and decreased emissions; although,
increased costs are associated with the increased complexity of the
system.  Pumping the oil in a pressurized system does involve a small
paralytic load on the engine, but this is likely to be more than offset
by calibrations that are possible with the improved cooling potential
that comes with pressurized oil systems.   Several engines use a
pressurized oil system with an oil pump and filter, but do not have
passageways to bearings and valve guides.  The pressurized oil systems
proposed in this document include channels that transfer oil to the
bearings and valve train. 

Cylinder Liners

Some engines use cast-iron or other cylinder liners to better regulate
temperature and shape of the cylinder bore during operation.  Cast iron
cylinder liners are used to create equal cylinder wall thickness and
provide a better finished surface than the aluminum of the block itself.
 The better shaped and harder cylinder liners resist distortion and
vibration, reducing the risk of cavitation. The reduced vibration and
cavitation allow piston rings to follow liner surfaces smoothly,
resulting in lower oil consumption.  A smoother engine cylinder has the
benefit of increased reliability, low wear characteristics, and reduced
emissions from oil in the combustion chamber.  Engines with cylinder
liners need to be designed properly to ensure that the liners are
positioned in the block such that they are held firmly in place and they
maintain sufficient contact with the block to dissipate heat.  

Electrically-Controlled Carburetion

	The technology behind carburetors has changed little over time. 
Generally, any improvement in the efficiency of carburetors has been
obtained by reducing tolerances in the manufacturing process, thus
directly enhancing control over the air-fuel mixture.  In the case of
engines with multiple cylinders (approximately one-third of Class II
engines), carburetion provides fuel to the cylinders unevenly.  It also
involves less control of air/fuel ratio, particularly during transients
and may require the user to operate a choke.  Also typically carburetors
are designed with an initial setting for relatively rich air-fuel ratios
to compensate for eventual air leaks in the intake system.   All of
these factors tend to make carburetion less attractive than advanced
fuel delivery systems.  However, carbureted systems are less expensive
and mechanically and electrically simpler than advanced systems, such as
fuel injection.  

	An electronic carburetor usually includes an air valve placed ahead of
the carburetor that controls air flow through the carburetor.  Air flow
is controlled through the use of a simplified electronic control module
(ECM) which uses a manifold air pressure (MAP) sensor and a crankshaft
speed sensor for input.  The crankshaft speed is usually derived from
the inductive ignition coil, so no additional sensor is needed.  The
additional regulation of fuel provides a more sensitive response of the
carburetor to dynamic engine loads and can help compensate for any
default overly rich setting of the carburetor and allow electronic
governing through air flow control.   

Mechanical Fuel Injection

As discussed above, carburetion is less ideal than fuel injection for
delivering an appropriately mixed charge to the cylinder(s) for
combustion.  Particularly in response to sudden increases in load,
carbureted systems on small SI engines are susceptible to stalling due
to inefficient management of the air/fuel mixture.  For larger engines,
electronic fuel injection has been employed successfully to address the
problems associated with carburetion.  However, electronic fuel
injection systems tend to require a battery and alternator not present
on most Class I engines.  One possible solution for delivering a more
precise, metered amount of fuel evenly to the cylinder(s) without needed
excess electronics and significant cost and weight increases is
mechanical fuel injection (MFI).  

A MFI system works by employing a mechanical fuel pump to pressurize and
deliver fuel to a fuel injector that then sprays a precise amount of
fuel into the mixing chamber, based on air flow rate and speed.  Fuel
metering is determined through an air bellows, which moves a rack based
upon air pressure and flow.  The fuel pump is operated by the mechanical
energy of the engine, typically through the use of the cams.  MFI was
commercially developed for automobile use in the 1950s, but later
replaced by electronic fuel injection.  For small SI engines, MFI offers
the promise of more controlled fuel delivery than carburetion.  

Electronic Fuel Injection

	The performance advantages of fuel injection over carburetion are
discussed above.  Electronic fuel injection (EFI) offers superior
performance over MFI because it allows the ability to change more
instantaneously and create more precise metering of fuel charge for
given loads.   

	For small SI engines, EFI systems will most likely use a throttle body
with the ECM and MAP sensor built in to reduce space requirements and
costs.  Because these engines usually operate at steady state, the MAP
sensor could be eliminated.  Instead, the air flow rate could be
inferred from the speed and throttle position sensors.  The speed signal
can be obtained from the inductive ignition coil.

	The injector can be mounted in the throttle body or the intake
manifold.  For two-cylinder engines, two injectors are used.  Based upon
certification information provided to EPA by engine manufacturers,
approximately one-third of Class II engines are two-cylinder engines.  A
pressure regulator and higher pressure fuel pump are also required.  
For closed loop systems, an oxygen sensor also is required.  These
systems are now becoming available on small motorcycles and scooters,
and the technology is being considered in the small SI engine arena. 
For Class I engines, a battery and alternator also are required, as
these are not standard equipment on most Class I engines; although, at
least one system has been developed that runs off the existing engine
magneto and thereby, requires no battery.  EFI systems can also be
calibrated to provide better fuel economy than carbureted engines.  

Catalysts

Three-way catalysts are likely to be incorporated on some small engine
models as an additional control mechanism for emissions reduction.  The
catalyst expected to be used in these applications could be purchased by
engine manufacturers as small substrates from catalyst manufacturers and
added into a redesigned exhaust muffler or could be purchased as a
complete catalyst/muffler that would be added into the exhaust stream. 
The catalyst volume would range from about 18% of the total engine
displacement for the smallest engines with the shortest useful lives to
about 50% of the total engine displacement for the largest
commercial-grade air cooled engines with long useful lives.  Catalysts
are currently being incorporated in handheld equipment, however are in
only on a few non-handheld applications.   Catalysts for both small
handheld and small non-handheld SI engines have begun to be commercially
available from companies such as Engelhard, Delphi, Umicore, Johnson
Matthey and others. 

	Table 3-2 describes the three-way catalysts envisioned for small SI
engines.  Platinum/Rhodium (Pt/Rh) precious metal catalysts will most
likely be used for Class I engines due to concern with oil sulfur
content, while Palladium/Rhodium (Pd/Rh) catalysts will be used for
Class II engines.  Precious metal loadings of between 30 and 50 grams
per cubic foot (g/cu ft) of catalyst size are expected, depending upon
useful life.  Washcoat material is expected to be a 30%/70% mixture of
cerium and alumina oxide, respectively.  Passive secondary air injection
is also envisioned for Class I engines only. HC + NOx conversion
efficiencies of 35% to 50% for Class I and Class II engines are expected
over the regulatory useful life of these catalysts.

	Metallic substrates provide better resistance to vibration and
temperature and are more desirable where the muffler/catalyst is mounted
directly on the engine block, as is usually the case with Class I
engines.  In addition, metallic substrates can be built using lower cell
densities, which reduces back pressure.  On the other hand, ceramic
substrates are significantly less expensive and can be used in Class I
and Class II applications where engine vibration is not a problem,
provided the catalyst is properly assembled and has the appropriate
matting.   

	Due to the variety of small SI equipment types and the variety of
catalysts offered in the marketplace, catalyst substrate costs are
estimated with the assumption that 50% of the production of each engine
type having metallic substrate catalysts with a cell density of 200
cells per square inch and 50% of the production having ceramic substrate
catalysts with a cell density of 400 cells per square inch.  

	Techniques for applying catalysts to Class I and Class II engines are
presented in EPA’s Safety Study (  HYPERLINK
"http://www.epa.gov/otaq/equip-ld.htm" 
http://www.epa.gov/otaq/equip-ld.htm ).  For Class I engines, the
catalyst bricks are placed in a redesigned muffler which incorporates a
system to provide supplemental air in desired engine operating modes. 
Focused effort in design of the engine/catalyst muffler system will
allow the engine manufacturer to assure acceptable exhaust system
surface temperatures.  This can be achieved in a four step process: 1) 
design the muffler to result in maximum heat transfer to the muffler
surface (this reduces exhaust gas temperatures),  2) modify the engine
shroud so that cooling air is forced over the muffler, 3) design the
heat shield such that it directs the cooling air around the muffler, and
 4) add an air ejector to the heat shield in the area of the muffler’s
exhaust gas exit in order to blend the exhaust gases with ambient air to
result in reduced exiting exhaust gas temperatures.    For Class II
engines, the muffler is designed to transfer the heat to the muffler
surface and an air ejector is added to the exhaust gas outlet of the
muffler.  The use of the engine fan’s cooling air will be available in
a number of applications, however may be limited for some
engines/equipment due to the placement of the muffler in the equipment
which may be away from the engine.  The heat shield design will need to
take into account these considerations.  Class II carbureted V-twin
engines which may employ catalysts are envisioned to have one catalyst
muffler per cylinder.  This would be done to reduce excess heat
production in the catalyst muffler in the case of a one cylinder
misfire.   

	For the water cooled engines, which are listed under the 2000-hour
Class II engine category, less development time is needed because those
engines are water cooled and may be leaned sufficiently to meet emission
standards – thereby limiting their need to a lower efficiency catalyst
or no catalyst at all.  Some liquid cooled engines are 3 or 4 cylinder
engines.   We did not include this fact in this analysis for nearly all
of the 4 cylinder engines already meet the emission standard and the
three cylinder engines can likely employ fuel injection to meet the
emission standard.  

	The total cost of adding a catalyst includes the catalyst, catalyst
housing, retooling the exhaust manifold, labor, mark-up, and warranty
costs.  Substrate costs are calculated based on standard sizes being
used for a variety of applications beyond small SI engines.      

Table   STYLEREF 1 \s  3 -  SEQ Table \* ARABIC \s 1  2  Catalyst
Characteristics for Small SI Engines 

Single Cylinder

Engine	Class	I	II

	Useful life (hrs)	125	125	250	500	250	500	1000	2000

	Valving	SV	OHV	OHV	OHV	OHV	OHV	OHV	OHV

	Power	3.3 hp	5.1 hp	5.0 hp	5.2 hp	11.3 hp	11.1 hp	9.5 hp	21.4 hp

	Displacement 	178 cc	180 cc	167 cc	166 cc	406 cc	338 cc	329 cc	498 cc

Catalyst	Volume 	45 cc	32 cc	55 cc	83 cc	134 cc	135 cc	165 cc	374 cc

	Washcoat	500 g/cu ft	500 g/cu ft	500 g/cu ft	500 g/cu ft	1100 g/cu ft
1100 g/cu ft	1100 g/cu ft	1100 g/cu ft

	Pt/Pd/Rh Ratio	5/0/1	5/0/1	5/0/1	5/0/1	3/1/1	1/4/1	0/5/1	0/5/1

	PM Loading	40 g/cu ft	40 g/cu ft	50 g/cu ft	50 g/cu ft	30 g/cu ft	30
g/cu ft	50 g/cu ft	50 g/cu ft

V-Twins

Engine	Class	II

	Useful life (hrs)	250	500	1000	2000

	Valving	OHV	OHV	OHV	OHV

	Power	16.3 hp	21.0 hp	17.1 hp	20.5 hp

	Displacement 	605 cc	632 cc	627 cc	678 cc

	Per Cylinder Displacement	302 cc	316 cc	314 cc	339 cc

Catalyst	Volume 	100 cc	126 cc	157 cc	254 cc

	Washcoat	1100 g/cu ft	1100 g/cu ft	1100 g/cu ft	1100 g/cu ft

	Pt/Pd/Rh Ratio	3/1/1	1/4/1	0/5/1	0/5/1

	PM Loading	30 g/cu ft	30 g/cu ft	50 g/cu ft	50 g/cu ft

This page intentionally left blank.

Cost Methodology

As discussed above, costs were determined for advanced technologies
relative to a baseline that could differ for each technology type and
regulatory useful life.  In order to determine costs for technologies
that manufacturers may employ to comply with potential future emission
regulations, representative models of the four Class I and four Class II
small SI engines were determined, as listed in Table 3-1.  Certification
and durability testing costs are broken out separately and will be
applied to a group of technological improvements used to meet a given
emission level.  In addition, because some parts can be used on a number
of engine models, the costs for producing these parts are calculated at
a larger volume than warranted for a single engine line.  No single
manufacturer’s costs were used to develop the estimates presented in
this report, but rather representative averages of all costs collected
were used for each technology to maintain confidentiality of the
information gather. 

	All costs are reported in 2005 dollars and represent the incremental
costs associated with various technology packages engine manufacturers
might employ in different aspects of their production lines to meet new
emission standards. 

Hardware Costs

	The hardware cost to the manufacturers varies with the emission
technologies considered.  All of the technologies discussed in Section 3
are already in production, to some degree, on a limited number of engine
lines in the US (  HYPERLINK
"http://www.epa.gov/otaq/certdata.htm#smallsi" 
http://www.epa.gov/otaq/certdata.htm#smallsi ) and in Europe (catalysts
on more engines than indicated in the US certification data). 
Manufacturer prices of all components were estimated from various
sources, including confidential information from engine manufacturers
and previous work performed by ICF International on spark-ignited engine
technology.  Discounted dealer and parts supplier prices were used to
verify the range of component prices, as were prices obtained directly
from engine and fuel system manufacturers.

	Three-way catalyst component information was obtained directly from
catalyst manufacturers and current ICF work with three-way catalyst
technology and costs for other applications.  The prices of precious
metal per troy ounce represent average prices over the last five years. 
Washcoat and steel prices represent current estimates. The labor cost is
based on small-scale production of catalysts of similar sizes and
includes the retooling costs associated with modifying the muffler
design, the costs associated with additional heat shielding and engine
shroud modifications, and the costs of the catalyst itself.  To minimize
costs, all manufacturers with similar-sized engines will most likely use
a similar catalyst.  Labor rates used are estimated at $17.50 per hour
plus a 60% fringe rate for a total labor cost of $28 per hour.

	All hardware costs to the engine manufacturer are subject to a 29%
mark-up.  This mark-up includes manufacturer overhead, manufacturer
profit, dealer overhead, and dealer profit.  A separate supplier mark-up
of 29% also is applied to items, such as fuel injection systems and
catalysts, typically purchased from a supplier.  The 5% warranty mark-up
is added to hardware cost of specific technologies, such as electronic
technologies (electronic carburetor and EFI), to represent an overhead
charge covering warranty claims associated with new parts.

Fixed Costs

	The fixed costs to the manufacturer include the cost of researching,
developing, and testing a new technology.  It also includes the cost of
retooling the assembly line for the production of new parts.  Listed
costs are estimates of what would be required to add the particular
technologies, based on a judgment of the level of effort and capital
requirements.  The fixed costs are listed separately for the development
and durability testing costs.  All technologies needed to reduce
emissions are already present in many current product lines; thus,
significant new development needed is minimal. 

	The number of units per year and the number of years to recover
up-front costs are used to determine the fixed cost per unit in 2005
dollars. The present cost estimate uses the average engine sales shown
in Table 4-1.  The average numbers of units per year per engine family
are estimates derived from confidential information received by EPA from
manufacturers.  The numbers reflect the variation in average production
between large and small businesses that share the market.  Five years is
typical as the length of time to recover an investment in a new
technology for the small SI engine industry.

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  1  Annual
Production Levels (units per year)

Engine Class	Useful Life (hrs)	Valve Configuration	Average Units per
Year per Engine Family

I	125	SV	1,400,000

	125	OHV	110,000

	250	OHV	20,000

	500	OHV	30,000

II	250	OHV	70,000

	500	OHV	60,000

	1000	OHV	25,000

	2000	OHV	3,000

	Fixed costs can be broken into design and development, certification
testing, durability testing, and tooling costs.  Each category is
described below.

Design and Development

	The research and development costs for engine manufacturers consist of
the engineering design costs, the product development costs, and the
prototype testing costs for the first engine line built.  Table 4-2
details the monthly design and development costs.  Design is calculated
in engineer months with a full time engineer at $66,000 per annum and a
45% fringe and 40% overhead mark-up.  Development is calculated as one
engineer and two technicians full time for a month.  The technician is
calculated at $42,900 per annum with a 45% fringe and 40% overhead
mark-up. These represent current Wisconsin salaries and fringe from  
HYPERLINK "http://www.salary.com/"  http://www.salary.com/  as Wisconsin
represents a Midwest center for small engine production.  Dynamometer
test time (20 tests at $250 per test) for the month also is included in
development.

Certification Testing

	Certification testing is also required for new technologies.  The cost
of test fuel is taken as $5.00 per gallon (gal).  A dynamometer testing
cost of $500 per test is added.  Calibration testing costs per test are
shown in Table 4-3.  The total is a cost per test.  A minimum of two
tests are performed for certification testing (new and end of useful
life to calculate emission deterioration factors).

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  2  Design and
Development Costs per month

Design Costs per month

Hours	Rates	Cost

Engineer	160	$64.41 	$10,306

Development Costs per month

Hours	Rates	Cost

Engineer	160	$64.41	$10,306

Technicians	320	$41.87	$13,398

Dynamometer Test Time	20 tests	$250	$5,000

                 Total	$28,704

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  3  Certification
Testing Costs

	Hours	Fuel

Gals	Costs	TOTAL

	Techs	Engrs

Techs	Engrs	Fuel

	Test Set-up	5

	$209 	$0 	$0 	$209 

Calibration 	2

	$84 	$0 	$0 	$84 

Dynamometer 

	$500 

Perform Test	10	4	6	$419 	$258 	$30 	$706 

Prepare Report	3	6

$126 	$386 	$0 	$512 

TOTAL	28	11	6	$837 	$644 	$30 	$2,012 

Durability Testing

Durability testing is required on new technologies to ensure that the
engine meets the emission standard over the useful life of the engine. 
Durability testing potentially could be done on a dynamometer or in the
field, and costs have been developed for each approach.  Dynamometer
testing costs for Class I engines for the various useful lives are shown
in Table 4-4 and for Class II engines in Table 4-5.  Estimated costs for
service accumulation and testing are based on estimated rates for
contracting the work.  Performing this testing in-house would involve a
similar level of effort, but would avoid some of the costs associated
with overhead and administrative expenses.  In durability testing, the
engine is run on the dynamometer over the useful life of the engine. 
For the 2000-hour case, the costs were estimated for the engine being
run for half the useful life with the results extrapolated.   

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  4  Class I Engine
Dynamometer Durability Testing Costs

Dynamometer Durability Testing Prep, Set-up and Data Analysis

	Hours	Costs

	Techs	Engrs	Techs	Engrs	TOTAL

Test Set-up	5	2	$209 	$129 	$338 

Analyze data

4

$258 	$258 

     TOTAL	5	6	$209 	$386 	$596 

Dynamometer Durability Testing Operating Costs (per 125 hours)

	Hours	Costs

	Techs	Engrs	Techs	Engrs	TOTAL

Operate equipment (125 hrs) 	135

$5,652 

$5,652 

Scheduled Maintenance	20

$837 

$837 

Dyno Costs

	$1,100 

Other

3

$193 	$193 

     TOTAL	155	3	$6,490 	$193 	$7,783 

Total Durability Testing Costs

Useful

Life	Labor Cost	Fuel	Prototype

Engine	Total Cost

125	$8,379 	$153 	$1,000 	$9,532 

250	$16,162 	$301 	$1,000 	$17,462 

500	$31,727 	$625 	$1,000 	$33,353 

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  5  Class II
Engine Dynamometer Durability Testing Costs

Dynamometer Durability Testing Prep, Set-up and Data Analysis

	Hours	Costs

	Techs	Engrs	Techs	Engrs	TOTAL

Test Set-up	6	2	$251 	$129 	$380 

Analyze data

4

$258 	$258 

     TOTAL	6	6	$251 	$386 	$638 

Dynamometer Durability Testing Operating Costs (per 250 hours)

	Hours	Costs

	Techs	Engrs	Techs	Engrs	TOTAL

Operate equipment (250 hrs) 	270

$11,305 

$11,305 

Scheduled Maintenance	32

$1,340 

$1,340 

Dyno Costs

	$2,500 

Other

3

$193 	$193 

     TOTAL	302	3	$12,644 	$193 	$15,338 

Total Durability Testing Costs

Useful

Life	Labor Cost	Fuel	Prototype

Engine	Total Cost

250	$15,975 	$938 	$1,500 	$18,413 

500	$31,313 	$1,845 	$1,500 	$34,658 

1000	$61,988	$4,797	$1,500	$38,285

2000	$61,988 	$6,581 	$2,000 	$70,569 

	Field aging, while not currently required by EPA, may be used for
verification of certification deterioration factors from products that
enter the marketplace.  Estimated costs for field aging of Class I
engines are shown in Table 4-6 for Class I engines and in Table 4-7 for
Class II engines.  As described for laboratory testing, field aging
involves running engines over the full useful life, except for the
1000-hour and 2000-hour Class II engines, which operate for half of the
full useful life to generate measurements that can be extrapolated. 

	Costs are based on an operator running equipment for field testing.  
For every 1 hour of field operation, the operator rests for 15 minutes. 
Operator salaries are taken as $23,400 per annum with a 45% fringe and
40% overhead mark-up.  Engines primarily used in pumps or generators
that would have limited operator involvement would have reduced operator
costs.   Production equipment costs include the purchase of the
equipment in the marketplace.  These costs would increase if prototype
engines were used.

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  6  Class I Engine
Field Aging Costs

Set-up and Data Analysis

	Hours	Costs

	Techs	Engrs	Techs	Engrs	TOTAL

Test Set-up	4	2	$167 	$129 	$296 

Analyze data

2	$0 	$129 	$129 

     TOTAL	4	4	$167 	$258 	$425 

Field Aging Operating Costs (per 125 hours)

	Hours	Costs

	Operator	Techs	Engrs	Operator	Techs	Engrs	TOTAL

Operate equipment (125 hrs) 	156

	$3,568	 	 	$3,568 

Scheduled Maintenance

20

	$837 	 	$837 

Unscheduled Maintenance

2

	$84 	 	$84 

Other

	4

$0 	$258 	$258 

     TOTAL	156	22	4	$3,568	$921 	$258 	$4,747 

Total Field Aging Costs

Useful

Life	Labor Cost	Fuel	Production

Equipment	Total Cost

125	$5,172 	$153 	$200 	$5,526 

250	$9,919 	$301 	$500 	$10,720 

500	$19,4141 	$625 	$1,000 	$21,039 

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  7  Class II
Engine Field Aging Costs

Set-up and Data Analysis

	Hours	Costs

	Techs	Engrs	Techs	Engrs	TOTAL

Test Set-up	4	2	$167 	$129 	$296 

Analyze data

2	$0 	$129 	$129 

     TOTAL	8	6	$167 	$258 	$425 

Field Aging Operating Costs (per 250 hours)

	Hours	Costs

	Operator	Techs	Engrs	Operator	Techs	Engrs	TOTAL

Operate equipment (250 hrs) 	313

	$7,137	 	 	$7,137 

Scheduled Maintenance

32

	$1,340 	 	$1,340 

Unscheduled Maintenance

2

	$84 	 	$84 

Other

	4

$0 	$258 	$258 

     TOTAL	313	34	4	$7,137	$1,424 	$258 	$8,818 

Total Field Aging Costs

Useful

Life	Labor Cost	Fuel	Production

Equipment	Total Cost

250	$9,243 	$938 	$1,000 	$11,181 

500	$18,061 	$1,845 	$2,000 	$21,906 

1000	$18,061	$2,399	$6,000	$26,459

2000	$35,697	$6,581	$8,000	$50,277



Tooling Costs

Tooling costs cover the cost of purchasing new tooling and the set-up of
new tooling to manufacture a new technology.  Listed costs are estimates
of what would be required to add the particular technologies based on a
judgment of the level of effort and capital requirements. 

Operating Costs

Migration to advanced engine technologies may lead to reduced fuel
consumption, thus saving money in operating expenses.  Fuel cost savings
have been analyzed using a five year average gasoline price, excluding
taxes, of $1.92 per gallon and a nominal volumetric brake-specific fuel
consumption (BSFC) reduction of 10% (measured in gallons per
horsepower-hour [gal/hp-hr]).  Actual operating expenses can be scaled
up or down based upon actual percent reductions.  A load factor of 0.37
was used for all Class I engines and 0.50 for all Class II engines. 
Additionally, an annual activity of 20% of the useful life of each
engine was used, consistent with the 5-year average lifetime of the
engine. These values ranged from 25 to 400 hours per year.  A discount
rate of 7% per annum over the life of the engine was used to calculate
present values.  The fuel cost savings that would be achieved by
migrating to advanced technologies for Class I and Class II engines that
result in a 10% reduction in fuel consumption are presented in Table 4-8
and Table 4-9, respectively.  

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  8  Fuel Savings
for Class I Engines

Useful life (hr)	125	125	250	500

Valving	SV	OHV	OHV	OHV

Engine Power (hp)	3.3	5.1	5.0	5.2

BSFC (gal/hp-hr)	0.154	0.139	0.130	0.117	0.130	0.117	0.130	0.117

Load Factor	0.37	0.37	0.37	0.37	0.37	0.37	0.37	0.37

Life (yrs)	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0

Hours/year	25	25	25	25	50	50	100	100

Gallons per year	4.7	4.2	6.1	5.5	12.0	10.8	25.0	22.5

Gasoline cost/yr	$9.03 	$8.12 	$11.77 	$10.60 	$23.09 	$20.78 	$48.02 
$43.22 

Total Cost discounted 7%	$37 	$33 	$48 	$43 	$95 	$85 	$197 	$177 

Cost Savings	 	$4 	 	$5 	 	$9 	 	$20 

Table   STYLEREF 1 \s  4 -  SEQ Table \* ARABIC \s 1  9  Fuel Savings
for Class II Engines

Useful life (hr)	250	500	1,000	2,000

Valving	OHV	OHV	OHV	OHV

Engine Power (hp)	12.2	12.0	15.6	21.4

BSFC (gal/hp-hr)	0.123	0.111	0.123	0.111	0.123	0.111	0.123	0.111

Load Factor	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50

Life (yrs)	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0

Hours/year	50	50	100	100	200	200	400	400

Gallons per year	37.5	33.8	73.8	66.4	191.9	172.7	526.4	473.8

Gasoline cost/yr	$72.03 	$64.83 	$141.70 	$127.53 	$368.41 	$331.57 
$1,010.76 	$909.69 

Total Cost discounted 7%	$295 	$266 	$581 	$523 	$1,511 	$1,359 	$4,144 
$3,730 

Cost Savings	 	$30 	 	$58 	 	$151 	 	$414 



Results

Table 5-1 shows costs per engine for Certification and Durability
Testing.

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  1  Costs for
Certification and Durability Testing

Engine Class	I	I	I	I	II	II	II	II

Useful life, hrs	125	125	250	500	250	500	1000	2000

Valving	SV	OHV	OHV	OHV	OHV	OHV	OHV	OHV

Certification Testing	$8,046	$8,046	$8,046	$8,046	$8,046	$8,046	$8,046
$8,046

  Number of Tests	4	4	4	4	4	4	4	4

Durability Testing 	$9,532	$9,532	$17,462	$33,353	$18,413	$34,658
$68,285	$70,569

   Useful Life (hrs)	125	125	250	500	250	500	1,000	2,000

Total Testing Costs per Engine Line	$17,703	$17,703	$25,758	$41,899
$26,709	$43,204	$77,331	$80,615

Units/yr.	1,400,000	110,000	20,000	30,000	70,000	60,000	25,000	3,000

Years to recover	5	5	5	5	5	5	5	5

Fixed cost/unit	$0.00	$0.05	$0.36	$0.39	$0.11	$0.20	$0.87	$7.51

	Tables 5-2 to 5-11 show detailed development of cost estimates for each
of the technology packages for each small SI engine category considered.
 Each of these tables has the cost summary in the uppermost portion,
followed by a breakdown of the research and development and tooling
costs for each engine category in the lower portions.  The majority of
these tables have engine categories broken into 3 lines describing
engine Class, engine useful life (in hours), and valve configuration (SV
or OHV).  

	Table 5-2 shows the cost of engine modifications for the various
classes and useful lives of small SI engines.  Potential engine
modifications include improved machining and casting tolerances,
improved combustion chamber configuration, reduced crevice volumes,
better cooling, improved carburetion and gaskets, improved fuel
filtering, and larger induction coils.  For the 125 hours useful life
engines, a fan screen is also added.  For the 2000-hr useful life Class
II engines, most of these modifications have already been made, so
variable, design, development, and tooling costs have been set to zero.

	Table 5-3 shows the cost for converting a Class I SV engine to an OHV
configuration.  Because changing the valving configuration of an engine
will require major modifications to the engine block and head, an
additional cost of upgrading the factory is added and amortized over ten
years of production.

	Table 5-4 shows the costs for converting to a pressurized oil system. 
This includes the addition of an oil pump, an oil pump screen, an oil
pressure switch, an oil filter adapter, and oil 

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  2  Costs for
Engine Modifications for Small SI Engines

Engine Class	I	II

Useful life (hrs)	125	125	250	500	250	500	1000	2000

Valving	SV	OHV	OHV	OHV	OHV	OHV	OHV	OHV

Hardware Cost to Manufacturer

Improved Intake Gaskets	$0.03 	$0.03 	$0.03 	$0.04 	$0.05 	$0.05 	$0.05 
$0.00 

Fuel Filter Screen	$0.02 	$0.02 	$0.02 	 	 	 	 	 

Fan Screen	$0.45 	$0.45 	 	 	 	 	 	 

Spark Arrestors	$0.05 	$0.05 	$0.05 	$0.05 	 	 	 	 

Larger Induction Coil	$0.10 	$0.10 	$0.10 	$0.10 	$0.10 	$0.10 	$0.10 
$0.00 

OEM Mark-up @ 29%	$0.19 	$0.19 	$0.06 	$0.06 	$0.04 	$0.04 	$0.04 	$0.00

Component Costs	$0.84 	$0.84 	$0.26 	$0.25 	$0.19 	$0.19 	$0.19 	$0.00 

Fixed Cost to Manufacturer 

R&D Costs	$213,450	$213,450	$213,450	$213,450	$213,450	$213,450	$213,450
$0

Tooling Costs	$486,000	$243,000	$243,000	$243,000	$243,000	$243,000
$243,000	$60,000

Units/Yr	1,400,000	110,000	20,000	30,000	70,000	60,000	25,000	3,000

Years to Recover	5	5	5	5	5	5	5	5

Fixed Cost/Unit	$0.13	$1.12	$6.16	$4.10	$1.76	$2.05	$4.92	$5.22

Total Costs ($)	$0.97 	$1.96 	$6.41 	$4.35 	$1.95 	$2.25 	$5.12 	$5.22 

R&D Costs

Design	$41,225	$41,225	$41,225	$41,225	$41,225	$41,225	$41,225	$0

   Months	4	4	4	4	4	4	4	-

Development	$172,225	$172,225	$172,225	$172,225	$172,225	$172,225
$172,225	$0

   Months	6	6	6	6	6	6	6	-

R&D Costs  per Engine Line	$213,450	$213,450	$213,450	$213,450	$213,450
$213,450	$213,450	$0

Tooling Costs

Cylinder head	$50,000 	$25,000 	$25,000 	$25,000 	$25,000 	$25,000 
$25,000 	 

Piston	$50,000 	$25,000 	$25,000 	$25,000 	$25,000 	$25,000 	$25,000 	 

Connecting Rod	$30,000 	$15,000 	$15,000 	$15,000 	$15,000 	$15,000 
$15,000 	 

Camshaft	$16,000 	$8,000 	$8,000 	$8,000 	$8,000 	$8,000 	$8,000 	 

Carburetor	$120,000 	$60,000 	$60,000 	$60,000 	$60,000 	$60,000 
$60,000 	$60,000 

Flywheel	$70,000 	$35,000 	$35,000 	$35,000 	$35,000 	$35,000 	$35,000 
 

Setup Changes	$150,000 	$75,000 	$75,000 	$75,000 	$75,000 	$75,000 
$75,000 	 

Tooling Cost per Engine Line	$486,000 	$243,000 	$243,000 	$243,000 
$243,000 	$243,000 	$243,000 	$60,000 

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  3  Costs for
Converting Side to Overhead Valve Configurations for Class I Engines

Side Valve to Overhead Valve	SV	OHV

Hardware Cost to Manufacturer

Rocker Arms and Assembly	 	$3.60 

Push Rods	 	$1.20 

Push Rod Guides	 	$0.50 

Valve Cover	 	$1.50 

Miscellaneous Hardware	 	$0.50 

OEM Mark-up @ 29%	$0.00 	$2.12 

Component Costs	$0.00 	$9.42 

Fixed Cost to Manufacturer

R&D Costs	 	$1,675,147 

Tooling Costs	 	$335,000 

Units/Yr	 	1,400,000

Years to Recover	 	5 

Upgrading Factory	 	$15,000,000 

Years to Recover	 	10 

Fixed Cost/Unit	$0.00 	$1.92 

Total Costs ($)	$0.00 	$11.34 

R&D Costs

Design	 	$247,348 

   Months	 	24 

Development	 	$1,377,799 

   Months	 	48 

Training/Technical Support	 	$50,000 

R&D Costs per Engine Line	 $0	$1,675,147 

Tooling Costs

Cylinder Head	$0 	$60,000 

Cylinder/Crankcase	$0 	$40,000 

Connecting Rod	$0 	$15,000 

Piston	$0 	$25,000 

Crankshaft	$0 	$25,000 

Rocker Arm	$0 	$30,000 

Rocker Cover	$0 	$50,000 

Push Rod Guide	$0 	$10,000 

Setup Changes	$0 	$80,000 

Tooling Costs per Engine Line	$0 	$335,000 

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  4  Costs for
Converting to a Pressurized Oil System

Engine Class	I	II

Useful life (hrs)	125	125	250	500	250	500	1000	2000

Valving	SV	OHV	OHV	OHV	OHV	OHV	OHV	OHV

Hardware Cost to Manufacturer

Oil Pump	$4.25 	$4.25 	$4.25 	$4.25 	$4.50 	$4.50 	$4.75 	$4.75 

Pump Screen	$1.15	$1.15	$1.15	$1.15	$1.20	$1.20	$1.25	$1.25

Oil Cooler & Bracket

$8.90

	$9.50	$9.50

Oil Pressure Switch	$0.75	$0.75	$0.75	$0.75	$0.80	$0.80	$0.90	$0.90

Oil Filter Adaptor	$3.00 	$3.00 	$3.00 	$3.00 	$3.25 	$3.25 	$3.40 
$3.40 

Oil Filter	$1.00 	$1.00 	$1.00 	$1.25 	$1.25 	$1.25 	$1.25 	$1.25 

Hoses/Hardware	$0.90	$0.90	$0.90	$0.90	$1.00	$1.00	$1.25	$1.25

OEM Mark-up @ 29%	$3.20 	$3.20 	$3.20 	$5.86 	$3.48 	$3.48 	$6.47 	$6.47

Component Costs	$14.25 	$14.25 	$14.25 	$26.06 	$15.48 	$15.48 	$28.77 
$28.77 

Fixed Cost to Manufacturer

R&D Costs	$135,429 	$135,429 	$135,429 	$135,429 	$135,429 	$135,429 
$135,429 	$135,429 

Tooling Costs	$150,000 	$75,000 	$75,000 	$75,000 	$75,000 	$75,000 
$75,000 	$75,000 

Units/Yr	1,400,000	110,000	20,000	30,000	70,000	60,000	25,000	3,000

Years to Recover	5 	5 	5 	5 	5 	5 	5 	5 

Fixed Cost/Unit	$0.06 	$0.52 	$2.87 	$1.91 	$0.82 	$0.96 	$2.30 	$19.15 

Total Costs ($)	$14.31 	$14.78 	$17.13 	$27.97 	$16.30 	$16.44 	$31.06 
$47.92 

R&D Costs

Design	$20,612 	$20,612 	$20,612 	$20,612 	$20,612 	$20,612 	$20,612 
$20,612 

   Months	              2 	              2 	              2 	           
  2 	              2 	            2 	            2 	            2 

Development	$114,817 	$114,817 	$114,817 	$114,817 	$114,817 	$114,817 
$114,817 	$114,817 

   Months	              4 	              4 	              4 	           
  4 	              4 	            4 	            4 	            4 

R&D Costs per Engine Line	$135,429 	$135,429 	$135,429 	$135,429 
$135,429 	$135,429 	$135,429 	$135,429 

Tooling Costs

Modified Crankshaft	$50,000 	$25,000 	$25,000 	$25,000 	$25,000 	$25,000
	$25,000 	$25,000 

Modified Engine Sump	$20,000 	$10,000	$10,000	$10,000	$10,000	$10,000
$10,000	$10,000

Modified Cylinder Block	$80,000 	$40,000 	$40,000 	$40,000 	$40,000 
$40,000 	$40,000 	$40,000 

Tooling Costs per Engine Line	$150,000 	$75,000 	$75,000 	$75,000 
$75,000 	$75,000 	$75,000 	$75,000 

filter, as well as various hoses and other hardware.  For the 500-hour
Class I and 1000- and 2000-hour Class II engines, an oil cooler also is
added to improve cooling.  In addition, tooling includes modifying the
crankshaft and oil sump, plus providing additional oil passageways in
the cylinder block.  

	Table 5-5 shows the cost of converting to electronic carburetion. 
Costs are shown for open loop carburetion with an electronic governor
for Class I and Class II engines.  A battery and alternator/regulator
are added to Class I engines, as they typically do not have these items.
 Class II engines usually do have batteries and alternators, so both
items have been left out of the incremental cost considerations.  The
cost of low-permeation hoses is not calculated here but part of another
analysis. 

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  5  Costs for
Converting to Electronic Carburetors

Electronic Carburetor	Baseline Carburetor	Open Loop with Governor

	Class I	Class II	Class I	Class II

Electronic Carb Air Valve	 	 	$0.40 	$0.40 

Electronic Fuel Shut-off Valve	 	 	$2.00 	$2.00 

Tubing	 	 	$0.05 	$0.05 

ECM/Map Sensor	 	 	$10.00 	$12.50 

Mechanical governor	$1.00	$2.16

Electronic governor	 	 	$2.50 	$2.50 

Battery	 	 	$6.50 	 

Magneto	$3.15 	 	 	 

Alternator/Regulator	 	 	$6.00 	 

Wiring	 	 	$0.50 	$0.50 

Hardware Cost to Manufacturer	$4.15 	$2.16 	$27.95 	$17.95 

OEM Mark-up @ 29%	$1.20 	$0.63 	$8.11 	$5.21

	$0.21 	$0.11 	$1.40 	$0.90 

Component Costs	$5.56 	$2.89 	$37.45 	$24.05 

Incremental costs	 	 	$31.89 	$21.16 

	Table 5-6 shows the costs of converting from carburetion to MFI. 
Design, development, testing, and tooling costs have been amortized over
five years of production.  Different production levels are given for the
various engine classes and useful lives.  In addition, injector 

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  6  Costs for
Converting to Mechanical Fuel Injection

	Carburetor	Mechanical Fuel Injection

Engine Class	I	II	I	II

Hardware Cost to Manufacturer

Carburetor	$3.35 	$6.45 	 	 

Injectors	 	 	$6.00 	$8.00 

Pressure Regulator	 	 	$3.75 	$3.75 

Throttle Body/Position Sensor	 	 	$3.50 	$4.75 

Fuel Pump	 	$3.35 	$10.50 	$10.50 

Air flow bellows	 	 	$5.50 	$5.50 

Related Hardware	 	 	$5.00 	$5.00 

OEM Mark-up @ 29%	$0.97 	$2.84 	$9.93 	$10.88 

Component Costs	$4.32 	$12.64 	$44.18 	$48.38 

Fixed Cost to Manufacturer

R&D Costs	$0	$0	$270,858	$270,858

Tooling Costs	$0	$0	$0	$0

Years to Recover	5	5	5	5

Useful Life (hrs)	125

125

	Units/Yr	110,000

110,000

	Fixed Cost/Unit	$0.00

$0.69

	Total Cost per Unit	$4.32

$44.87

	Incremental Cost

	$40.55

	Useful Life (hrs)	250	250	250	250

Units/Yr	20,000	70,000	20,000	70,000

Fixed Cost/Unit	$0.00	$0.00	$3.79	$1.08

Total Cost per Unit	$4.32	$12.64	$47.97	$49.46

Incremental Cost

	$43.65	$36.82

Useful Life (hrs)	500	500	500	500

Units/Yr	30,000	60,000	30,000	60,000

Fixed Cost/Unit	$0.00	$0.00	$2.52	$1.26

Total Cost per Unit	$4.32	$12.64	$46.71	$49.64

Incremental Cost

	$42.39	$37.00

Useful Life (hrs)

1,000

1,000

Units/Yr

25,000

25,000

Fixed Cost/Unit

$0.00

$3.03

Total Cost per Unit

$12.64

$51.40

Incremental Cost

$38.76

Useful Life (hrs)

2,000

2,000

Units/Yr

3,000

3,000

Fixed Cost/Unit

$0.00

$25.25

Total Cost per Unit

$12.64

$73.62

Incremental Cost

$60.98

R&D Costs 

Design	 	 	$41,225	$41,225

   Months	 	 	4	4

Development	 	 	$229,633	$229,633

   Months	 	 	8	8

R&D Costs per Engine Line	$0 	$0 	$270,858	$270,858

costs for Class II engines are calculated based on 33% of the engines
being two-cylinders and thus, requiring two injectors.

	Table 5-7 shows the costs for converting to EFI.  Fuel injection
systems normally come from a supplier, so a supplier mark-up is also
added for the injectors, pressure regulator, throttle body, ECM/MAP
sensor, fuel pump, air temperature sensor, and oxygen sensor.  For Class
II engines, injector costs have been calculated based on 33% of the
Class II engines being two-cylinders and, therefore, requiring two
injectors.  For the 2000-hour Class II carbureted engine, the fixed
costs are set to zero because most of the modifications have already
been completed on current liquid-cooled engines in this category.  Also,
minimal R&D is needed for Class II closed loop EFI engines as closed
loop makes calibration significantly simpler.

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  7  Costs for
Converting to Electronic Fuel Injection

Fuel Delivery System	Carburetor	Open Loop EFI	Closed Loop EFI

Engine Class	I	II	I	II	I	II

Hardware Cost to Manufacturer

 Carburetor	$3.35 	$6.45 	 	 	 	 

 Injectors 	 	 	$6.00 	$8.00 	$6.00 	$8.00 

 Pressure Regulator	 	 	$3.75 	$3.75 	$3.75 	$3.75 

 ECM/MAP Sensor	 	 	$27.00 	$27.00 	$27.00 	$27.00 

 Throttle Body	 	 	$2.75 	$4.00 	$2.75 	$4.00 

 Air Temperature Sensor	 	 	$1.50 	$1.50 	$1.50 	$1.50 

 Fuel Pump	 	$3.35 	$10.50 	$10.50 	$10.50 	$10.50 

 Oxygen Sensor	 	 	 	 	$7.00 	$7.00 

 Magneto	$3.15 	 	 	 	 	 

 Battery	 	 	$6.50 	 	$6.50 	 

 Alternator/Regulator	 	 	$6.00 	 	$6.00 	 

 Wiring/Related Hardware	 	 	$12.00 	$12.00 	$12.00 	$12.00 

OEM Mark-up @ 29%	$1.89 	$2.84 	$22.04 	$19.36 	$24.07 	$21.39 

Warranty Mark-up @ 5% 	$0.33 	$0.49 	$3.48 	$2.85 	$3.83 	$3.20 

Component Costs	$8.71 	$13.13 	$101.52 	$88.96 	$110.90 	$98.34 

Fixed Cost to Manufacturer

R&D Costs	$0 	$0 	$270,858 	$270,858 	$213,450 	$78,021 

Tooling Costs	$60,000 	$35,000 	$0 	$0 	$25,000 	$25,000 

Years to recover	5 	5 	5 	5 	5 	5 

Useful Life, hrs	        125 	 	        125 	 	        125 	 

Units/yr.	  110,000 	 	  110,000 	 	  110,000 	 

Fixed cost/unit	$0.14 	 	$0.69 	 	$0.60 	 

Total Cost per Unit	$8.85 	 	$102.20 	 	$111.50 	 

Incremental Cost	 	 	$93.35 	 	$102.64 	 

Table 5-7 Costs for Converting to Electronic Fuel Injection (continued)

Fuel Delivery System	Carburetor	Open Loop EFI	Closed Loop EFI

Engine Class	I	II	I	II	I	II

Fixed Cost to Manufacturer

Useful Life (hrs)	250 	        250 	250 	        250 	250 	        250 

Units/Yr	    20,000 	    70,000 	    20,000 	    70,000 	    20,000 	   
70,000 

Fixed Cost/Unit	$0.78 	$0.13 	$3.79 	$1.08 	$3.31 	$0.40 

Total Cost per Unit	$9.49 	$13.26 	$105.30 	$90.04 	$114.21 	$98.74 

Incremental Cost	 	 	$95.81 	$76.77 	$104.71 	$85.48 

Useful Life(hrs)	500 	        500 	500 	        500 	500 	        500 

Units/Yr	30,000	    60,000 	30,000	    60,000 	30,000	    60,000 

Fixed Cost/Unit	$0.52 	$0.15 	$2.52 	$1.26 	$2.21 	$0.47 

Total Cost per Unit	$9.23 	$13.28 	$104.04 	$90.22 	$113.10 	$98.81 

Incremental Cost	 	 	$94.81 	$76.93 	$103.87 	$85.52 

Useful Life (hrs)	 	1,000 	 	     1,000 	 	     1,000 

Units/Yr	 	25,000	 	25,000	 	25,000

Fixed Cost/Unit	 	$0.37 	 	$3.03 	 	$1.13 

Total Cost per Unit	 	$13.50 	 	$91.98 	 	$99.47 

Incremental Cost	 	 	 	$78.49 	 	$85.97 

Useful Life (hrs)	 	     2,000 	 	     2,000 	 	     2,000 

Units/Yr	 	     3,000 	 	     3,000 	 	     3,000 

Fixed Cost/Unit	 	$0.00 	 	$25.25 	 	$9.45 

Total Cost per Unit	 	$13.13 	 	$114.20 	 	$107.78 

Incremental Cost	 	 	 	$101.07 	 	$94.65 

R&D Costs 

Design	 	 	$41,225 	$41,225 	$41,225 	$20,612 

   Months	 	 	            4 	            4 	            4 	           
2 

Development	 	 	$229,633 	$229,633 	$172,225 	$57,408 

   Months	 	 	            8 	            8 	            6 	           
2 

R&D Costs per Engine Line	$0 	$0 	$270,858 	$270,858 	$213,450 	$78,021 

Tooling Costs

Modified Exhaust Manifold for O2 Sensor	$0 	$0 	$0 	$0 	$25,000 	$25,000

Carburetor Modifications	$60,000 	$35,000 	 	 	 	 

Tooling Costs per Engine Line	$60,000 	$35,000 	$0 	$0 	$25,000 	$25,000

	Table 5-8 shows the incremental costs of adding cast iron cylinder
liners.  Costs are provided for cylinder liners 6 millimeters (mm)
thick.  Incremental costs are shown only for Class I and Class II
engines with 250- and 500-hour useful lives.  Most engines with 1000-
and 2000-hour useful lives already have cast iron cylinder liners.

	Table 5-9 shows costs for replacing a single muffler with two mufflers
on V-twin engines, for reasons described in Section 3.2.8.   The muffler
replacements are each sized at 65% of the original muffler volume. 
Mufflers on V-twin engines are of various sizes due to the fact that
most, if not all, of these engines are sold without mufflers and
original equipment manufacturers put on their own mufflers.  Due to lack
of information in this area and the assumption that the total volume
will increase 30% overall, the cost of the muffler is estimated to
increase 30% in addition to tooling changes required.

	Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  8  Costs for
Adding Cast iron Cylinder Liners

Engine Class	I	I	I	I	II	II

Useful Life, hr	125	125	250	500	250	500

Displacement, cc	178	180	167	166	406	338

Valving	SV	OHV	OHV	OHV	OHV	OHV

Cast Iron Sleeve (each)	$4.76 	$4.77 	$4.72 	$4.72 	$5.26 	$5.13 

OEM markup @ 29%	$1.38 	$1.38 	$1.37 	$1.37 	$1.53 	$1.49 

Total Component Costs	$6.13 	$6.15 	$6.09 	$6.09 	$6.79 	$6.62 

Fixed Cost to Manufacturer

R&D Costs	$203,143 	$203,143 	$242,154 	$281,164 	$320,174 	$203,143 

Tooling Costs	$80,000 	$40,000 	$40,000 	$40,000 	$40,000 	$40,000 

Years to recover	5 	5 	6 	7 	8 	9 

Units/yr.	 1,400,000 	  110,000 	    20,000 	    30,000 	    70,000 	   
60,000 

Fixed cost/unit	$0.06 	$0.61 	$3.36 	$2.26 	$0.98 	$0.71 

Total Cost per Unit	$6.19 	$6.76 	$9.45 	$8.35 	$7.77 	$7.33 

R&D Costs

Design	$30,918 	$30,918 	$41,225 	$51,531 	$61,837 	$30,918 

   Months	              3 	            3 	            4 	            5 	
           6 	            3 

Development	$172,225 	$172,225 	$200,929 	$229,633 	$258,337 	$172,225 

   Months	              6 	            6 	            7 	            8 	
           9 	            6 

Total R&D per Engine Line	$203,143 	$203,143 	$242,154 	$281,164 
$320,174 	$203,143 

Tooling Costs

Modified Cylinder Block	$80,000 	$40,000 	$40,000 	$40,000 	$40,000 
$40,000 

Total Tooling per Engine Line	$80,000 	$40,000 	$40,000 	$40,000 
$40,000 	$40,000 

Material Costs (per liner)

   Bore (mm)	65	65	65	65	85	80

   Stroke (mm)*	78	79	75	75	96	92

   Thickness (mm)	6	6	6	6	6	6

   Weight (gm)	       16.71 	      16.92 	      16.06 	      16.06 	    
 26.89 	      24.25 

   Cost per gram	0.05	0.05	0.05	0.05	0.05	0.05

Total Material Cost	$0.84 	$0.85 	$0.80 	$0.80 	$1.34 	$1.21 

Labor	$2.80 	$2.80 	$2.80 	$2.80 	$2.80 	$2.80 

Overhead	$1.12 	$1.12 	$1.12 	$1.12 	$1.12 	$1.12 

Total Fixed Cost	$4.76 	$4.77 	$4.72 	$4.72 	$5.26 	$5.13 

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  9  Costs for Dual
Mufflers for V-Twin Engines

Engine Class	II	II	II	II

Useful life, hrs	250	500	1000	2000

Valving	OHV	OHV	OHV	OHV

Engine Power	16.3 hp	20.1 hp	17.1 hp	20.5 hp

Engine Displacement (cc)	605	632	627	678

Current Muffler Cost (1)	($20.24)	($23.13)	($22.57)	($22.57)

New Muffler Costs (2)	$26.31 	$30.07 	$29.34 	$29.34 

OEM Mark-up @ 29%	$1.76 	$2.01 	$1.96 	$1.96 

Total Component Costs	$7.83 	$8.95 	$8.73 	$8.73 

Fixed Cost to Manufacturer

Tooling Costs	$100,000 	$100,000 	$100,000 	$100,000 

Units/yr.	70,000	60,000	25,000	3,000

Years to recover	5 	5 	5 	5 

Fixed cost/unit	$0.37 	$0.43 	$1.04 	$8.70 

Total Costs ($)	$8.21 	$9.39 	$9.78 	$17.43 

Tooling Costs

Modified Muffler Stamping	$50,000 	$50,000 	$50,000 	$50,000 

Exhaust Pipe Changes	$25,000 	$25,000 	$25,000 	$25,000 

Setup Changes	$25,000 	$25,000 	$25,000 	$25,000 

Total Tooling per Engine Line	$100,000 	$100,000 	$100,000 	$100,000 

	Table 5-10 shows the incremental costs for adding a three-way catalyst
to single cylinder engines.  Tooling costs include muffler redesign for
incorporation of the catalyst and secondary air.  Engine shroud
modifications are made to allow cooling air from the engine fan to flow
over the muffler in a most efficient manner.  Table 5-11 shows the
incremental costs for adding two three-way catalysts to V-twin Class II
engines.  

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  10  Three-Way
Catalyst Costs for Single Cylinder Small SI Engines

Engine Class	I	I	I	I	II	II	II	II

Useful life (hrs)	125	125	250	500	250	500	1000	2000

Valving	SV	OHV	OHV	OHV	OHV	OHV	OHV	OHV

Hardware Cost to Manufacturer

Catalyst (Table 5-12)	$7.43 	$6.20 	$9.15 	$12.14 	$13.88 	$12.24 
$15.14 	$29.38 

Thermal Cutoff Switch	$0.50 	$0.50 	$0.50 	$0.50 	$0.50 	$0.50 	$0.50 
$0.50 

Heat Shield	$0.50 	$0.45 	$0.51 	$0.57 	$4.23 	$3.96 	$4.05 	$5.65 

OEM Mark-up @ 29%	$2.44 	$2.07 	$2.95 	$3.83 	$5.40 	$4.84 	$5.71 
$10.30 

Component Costs	$10.87 	$9.22 	$13.11 	$17.05 	$24.00 	$21.55 	$25.39 
$45.83 

Fixed Cost to Manufacturer

R&D Costs	$164,133	$164,133	$164,133	$164,133	$164,133	$164,133	$164,133
$78,021

Tooling Costs	$240,000	$120,000	$120,000	$120,000	$120,000	$120,000
$120,000	$120,000

Units/Yr	1,400,000	110,000	20,000	30,000	70,000	60,000	25,000	3,000

Years to Recover	5	5	5	5	5	5	5	5

Fixed Cost/Unit	$0.08	$0.70	$3.86	$2.57	$1.10	$1.29	$3.09	$17.71

Total Costs ($)	$10.95 	$9.92 	$16.97 	$19.62 	$25.10 	$22.84 	$28.48 
$63.54 

R&D Costs 

Design	$20,612	$20,612	$20,612	$20,612	$20,612	$20,612	$20,612	$20,612

   Months	2	2	2	2	2	2	2	2

Development	$143,521	$143,521	$143,521	$143,521	$143,521	$143,521
$143,521	$57,408

   Months	5	5	5	5	5	5	5	2

R&D Costs per Line	$164,133	$164,133	$164,133	$164,133	$164,133	$164,133
$164,133	$78,021

Tooling Costs

Modified Muffler Stamping*	$100,000 	$50,000 	$50,000 	$50,000 	$50,000 
$50,000 	$50,000 	$50,000 

Heat Shield Stamping	$60,000 	$30,000 	$30,000 	$30,000 	$30,000 
$30,000 	$30,000 	$30,000 

Engine Shroud Modification	$30,000 	$15,000 	$15,000 	$15,000 	$15,000 
$15,000 	$15,000 	$15,000 

Setup Changes	$50,000 	$25,000 	$25,000 	$25,000 	$25,000 	$25,000 
$25,000 	$25,000 

Tooling Costs  per Line	$240,000 	$120,000 	$120,000 	$120,000 	$120,000
	$120,000 	$120,000 	$120,000 

Heat Shield Costs

Length (centimeter [cm])	5.1	3.7	4.8	5.7	24.8	19.1	17.1	23.5

Width (cm)	12.5	12.5	14.0	15.5	31.5	36.0	42.0	54.0

Thickness (cm)	0.121	0.121	0.121	0.121	0.121	0.121	0.121	0.121

 Vol. of Steel (cc) 

     w/ 20% scrap	9.23	6.64	9.81	12.92	113.23	99.98	104.27	184.13

 Weight of Steel (g)	72.2	51.9	76.7	101.0	885.1	781.5	815.1	1,439.4

TOTAL MAT. COST	$0.18	$0.13	$0.20	$0.26	$2.27	$2.00	$2.09	$3.69

Labor	$0.22	$0.22	$0.22	$0.22	$1.40	$1.40	$1.40	$1.40

Labor Overhead @ 40%	$0.09	$0.09	$0.09	$0.09	$0.56	$0.56	$0.56	$0.56

Total Heat Shield Costs	$0.50	$0.45	$0.51	$0.57	$4.23	$3.96	$4.05	$5.65

* includes muffler modification to provide secondary air for Class I
engines only

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  11  Three-Way
Catalyst Costs for V-Twin Small SI Engines

Engine Class	II	II	II	II

Useful life, hrs	250	500	1000	2000

Valving	OHV	OHV	OHV	OHV

Catalysts (2) (Table 5-13)	$22.45 	$23.36 	$29.19 	$42.63 

Thermal Cut-offs (2)	$1.00	$1.00	$1.00	$1.00

Heat Shields (2)	$8.53	$9.76	$10.50	$13.70

OEM markup @ 29%	$9.27	$9.89	$11.80	$16.63

New Muffler Costsa (2 mufflers) (Table 5-9)	$8.21	$9.39	$9.78	$17.43

Total Component Costs	$49.46	$53.39	$62.27	$91.40

Fixed Cost to Manufacturer

R&D Costs	$164,133	$164,133	$164,133	$164,133

Tooling Costs	$100,000	$100,000	$100,000	$100,000

Units/yr.	70,000	60,000	25,000	3,000

Years to recover	5	5	5	5

Fixed cost/unit	$1.03	$1.20	$2.88	$24.00

Total Costs ($)	$50.49	$54.59	$65.15	$115.40

R&D Costs

Design	$20,612	$20,612	$20,612	$20,612

   Months	2	2	2	2

Development	$143,521	$143,521	$143,521	$143,521

   Months	5	5	5	5

Total R&D per Engine Line	$164,133	$164,133	$164,133	$164,133

Tooling Costs

Heat Shield Stamping	$50,000	$50,000	$50,000	$50,000

Engine Shroud Modification	$25,000	$25,000	$25,000	$25,000

Setup Changes	$25,000	$25,000	$25,000	$25,000

Total Tooling per Engine Line	$100,000	$100,000	$100,000	$100,000

Heat Shield Costs (each)

      Length (cm)	26.4	33.5	34.3	46.8

     Width (cm)	30.0	30.0	33.0	36.0

      Thickness (cm)	0.121	0.121	0.121	0.121

      Vol. of Steel (cm^3) w/ 20% scrap	115.16	145.82	164.39	244.42

      Wt. of Steel (g)	900.2	1,139.9	1,285.0	1,910.7

TOTAL MAT. COST	$2.31	$2.92	$3.29	$4.89

Labor	$1.40	$1.40	$1.40	$1.40

Labor Overhead @ 40%	$0.56	$0.56	$0.56	$0.56

Total Heat Shield Costs	$4.27	$4.88	$5.25	$6.85

   a Already includes 29% OEM Mark-up

Table 5-12 details catalyst prices per unit for single cylinder
engines.  The total catalyst price depends on the number of units used
for each engine, although the current layout envisions only one catalyst
per engine.  Catalyst costs are calculated based upon 50% of the
production of each engine type will have metallic substrates and 50%
will have ceramic substrates.  Manufacturer prices vary between about $7
and about $30 for each catalyst unit. 

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  12  Three-way
Catalysts Cost Estimates

Catalyst Material Costs

Material	$/troy oz	$/lb	$/g	Density (g/cc)

Alumina

$64.00 	$0.141 	3.9

Ceria

$22.00 	$0.049 	7.132

Platinum	$811.16 

$26.08 	 

Palladium	$210.34 

$6.76 	 

Rhodium	$1,120.93 

$36.04 	 

Stamped Steel

	$0.003 	7.817

 Single Cylinder Catalyst Unit Costs

Engine Class	I	I	I	I	II	II	II	II

Useful life (hrs)	125	125	250	500	250	500	1000	2000

Valving	SV	OHV	OHV	OHV	OHV	OHV	OHV	OHV

Engine Power (hp)	3.3	5.1	5.0	5.2	11.3	11.1	9.5	21.4

Engine Displacement (cc)	178	180	167	166	406	338	329	498

Catalyst Volume (cc)	45	32	55	83	134	135	165	374

Substrate Diameter (cm)	3.50	3.50	4.00	4.50	5.25	6.00	7.00	9.00

Washcoat (g/cu ft)	500	500	500	500	1100	1100	1100	1100

   ceria/alumina (%)	30/70	30/70	30/70	30/70	30/70	30/70	30/70	30/70

PM Loading (g/cu ft)	40	40	50	50	30	30	50	50

     Pt/Pd/Rh	5/0/1	5/0/1	5/0/1	5/0/1	3/1/1	1/4/1	0/5/1	0/5/1

Hardware costs using 50% ceramic and 50% metallic substrates

     Metallic substrate cost	$1.89 	$1.59 	$2.12 	$2.64 	$3.41 	$3.42 
$3.80 	$5.88 

     Ceramic substrate cost	$2.04 	$1.47 	$2.52 	$3.80 	$6.14 	$6.19 
$7.53 	$17.11 

Washcoat cost	$0.09 	$0.06 	$0.11 	$0.17 	$0.59 	$0.60 	$0.72 	$1.64 

Precious Metal cost	$1.74 	$1.25 	$2.70 	$4.07 	$3.44 	$2.13 	$3.38 
$7.68 

Substrate Diameter (cm)	3.50	3.50	4.00	4.50	5.25	6.00	7.00	9.00

Substrate Length (cm)	4.6	3.3	4.4	5.2	6.2	4.8	4.3	5.9

TOTAL MAT. COST	$3.80 	$2.85 	$5.13 	$7.45 	$8.80 	$7.53 	$9.77 	$20.82 

Labor	$1.40 	$1.40 	$1.40 	$1.40 	$1.40 	$1.40 	$1.40 	$1.40 

Labor Overhead @ 40%	$0.56 	$0.56 	$0.56 	$0.56 	$0.56 	$0.56 	$0.56 
$0.56 

Supplier Mark-up @ 40%	$1.67 	$1.39 	$2.06 	$2.73 	$3.12 	$2.75 	$3.40 
$6.60 

Manufacturer Price	$7.43 	$6.20 	$9.15 	$12.14 	$13.88 	$12.24 	$15.14 
$29.38 

	Table 5-13 details catalyst unit costs for V-Twin Class II engines. 
The total catalyst price depends on the number of units used for each
engine, although the current layout envisions only two catalysts per
engine for V-Twins.  Catalyst costs are calculated based upon 50% of the
production of each engine type will have metallic substrates and 50%
will have ceramic substrates.  Manufacturer prices vary between about
$11 and $22 for each catalyst unit.  Engines with 2000 hour useful life
are water-cooled V-twin engines.  

Table   STYLEREF 1 \s  5 -  SEQ Table \* ARABIC \s 1  13  Three-way
Catalyst Unit Cost Estimates for V-Twin Engines

Engine Class	II	II	II	II

Useful life (hrs)	250	500	1000	2000

Valving	OHV	OHV	OHV	OHV

Engine Power (hp)	16.3	21.0	17.1	20.5

Engine Displacement (cc)	605	632	627	678

Catalyst Volume (cc)	100	126	157	254

Substrate Diameter (cm)	5.00	5.00	5.50	6.00

Washcoat (g/cu ft)	1100	1100	1100	1100

   ceria/alumina (%)	30/70	30/70	30/70	30/70

PM Loading (g/cu ft)	30	30	50	50

     Pt/Pd/Rh	3/1/1	1/4/1	0/5/1	0/5/1

Hardware costs using 50% ceramic and 50% metallic substrates

     Metallic substrate cost	$2.91 	$3.30 	$3.70 	$4.79 

     Ceramic substrate cost	$4.57 	$5.79 	$7.18 	$11.64 

Washcoat cost	$0.44 	$0.56 	$0.69 	$1.12 

Precious Metal cost	$2.56 	$1.99 	$3.22 	$5.23 

Substrate Diameter (cm)	5.00	5.00	5.50	6.00

Substrate Length (cm)	5.1	6.4	6.6	9.0

TOTAL MAT. COST	$6.74 	$7.09 	$9.35 	$14.56 

Labor	$1.40 	$1.40 	$1.40 	$1.40 

Labor Overhead @ 40%	$0.56 	$0.56 	$0.56 	$0.56 

Supplier Mark-up @ 40%	$2.52 	$2.63 	$3.28 	$4.79 

Manufacturer Price	$11.23 	$11.68 	$14.59 	$21.32 

 Note that the regulations further differentiate engines into Class I-A
and Class I-B.  Class I-A includes nonhandheld engines with displacement
below 66 cc.  In this report, we treat these as handheld engines that
would not be subject to new exhaust emission standards for nonhandheld
engines.  Class I-B includes nonhandheld engines with displacement at or
above 66 cc and below 100 cc.  In this report, we treat these as Class I
engines. 

 Improved cooling also allows operation at leaner air-fuel ratios and
reduces cylinder bore distortion, both of which reduce HC emissions. 
Bore distortion on a lower cost SV engine has also been found to result
in oil leakage into the air filter.  Increased pressure past the piston
rings result in a failed crankcase reed valve and thereby oil leakage
into the air filter increasing emissions.

 “Update of EPA’s Motor Vehicle Emission Control Equipment Retail
Price Equivalent (RPE) Calculation Formula,” Jack Faucett Associates,
Report No. JACKFAU-85-322-3, September 1985.

 National average retail gasoline prices for 2005 without taxes from the
Energy Information Administration.

 Load factors are consistent with values used in EPA’s NONROAD model

021348

Table of Contents

ICF International	  PAGE  ii 	EPA Contract No.  68-C-01-164/WA 4-7

021348		August 2006

ICF International	  PAGE  i 	EPA Contract No.  68-C-01-164/WA 4-7

021348		August 2006

Introduction

ICF International	  PAGE  2-2 	EPA Contract No.  68-C-01-164/WA 4-7

021348		August 2006

ICF International	  PAGE  3-1 	EPA Contract No.  68-C-01-164/WA 4-7

021348		August 2006

Background

Technology Description

Technology Description

ICF International	  PAGE  3-9 	EPA Contract No.  68-C-01-164/WA 4-7

021348		August 2006

ICF International	  PAGE  4-1 	EPA Contract No.  68-C-01-164/WA 4-7

021348		August 2006

Cost Methodology

ICF International	  PAGE  4-1 	EPA Contract No.  68-C-01-164/WA 3-1

021348		December 2004

Cost Methodology

ICF International	  PAGE  4-10 	EPA Contract No.  68-C-01-164 / WA 4-7

021348		August 2006

ICF International	  PAGE  5-1 	EPA Contract No.  68-C-01-164/WA 3-1

021348		December 2004

Cost Methodology

ICF International	  PAGE  4-11 	EPA Contract No.  68-C-01-164 / WA 3-1

021348		December 2004

ICF International	  PAGE  4-11 	EPA Contract No.  68-C-01-164/WA 3-1

021348		December 2004

Results

ICF International	  PAGE  5-2 	EPA Contract No.  68-C-01-164 / WA 4-7

021348		August 2006

ICF International	  PAGE  5-1 	EPA Contract No.  68-C-01-164/WA 4-7

021348		July 2006

ICF International	  PAGE  5-5 	EPA Contract No.  68-C-01-164 / WA 3-1

021348		December 2004

Results

ICF International	  PAGE  5-3 	EPA Contract No.  68-C-01-164/WA 4-7

021348		August 2006

ICF International	  PAGE  5-4 	EPA Contract No.  68-C-01-164/WA 4-7

021348		August 2006

ICF International	  PAGE  5-7 	EPA Contract No.  68-C-01-164 / WA 4-7

021348		August 2006

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ጌഀೆ䠂递Ȥᥐ㇬ȁ摧曟ጀICF International	  PAGE  5-5 	EPA
Contract No.  68-C-01-164/WA 4-7

021348		August 2006

ICF International	  PAGE  5-14 	EPA Contract No.  68-C-01-164 / WA 4-7

021348		August 2006

ICF International	  PAGE  5-8 	EPA Contract No.  68-C-01-164 / WA 4-7

021348		August 2006