The document discusses the history and development of National Railway Equipment Co.'s N-ViroMotive product line of low-emission locomotives. It describes the company's work since the 1990s to develop locomotives that meet increasingly stringent EPA emissions standards through the use of multiple diesel-electric gensets and advanced emissions control technologies. Test results show the N-ViroMotive locomotives reduce fuel consumption and emissions by 50-70% compared to conventional locomotives.

1. The N-ViroMotive Product Line: Multi-Engine GenSet Ultra Low Emissions Road-Switcher Locomotives National Railway Equipment Co.

2. H ISTORICAL B ACKGROUND 1995 EPA – Washington develops clean air initiatives modeled for the Class I railroads 1998 - Initial regulations are developed for Tier 0 / Tier I / Tier II emissions standards for the railway industry 1998 - Memorandum of Understanding between the Air Resources Board of California and the UP & BNSF 1998 -Commitments are made and critical paths are developed by the UP & BNSF to show good faith effort toward emissions reductions in the LA Basin (switchers) and intrastate transport (line haul). Overall objective is to meet Tier II emissions standards for the locomotive fleet average operating within California by January 1, 2010. 1999 - Timelines are established for implementing Tier 0 / Tier I / Tier II emission standards 2000-2001 UP and BNSF approach suppliers for developing an ultra low emitting road-switcher locomotive National Railway Equipment Co.

3. H ISTORICAL B ACKGROUND 2001-2005 Development phase for a GenSet diesel-electric locomotive utilizing IGBT technology and Tier III certified industrial engines 2005 – First GenSet locomotive to be EPA certified and to be recognized by ARB as an Ultra Low Emitting Locomotive 2005-2006 – First ULEL GenSet locomotive to be manufactured and field tested at the Port of Long Beach with the UP and the Pacific Harbor Lines 2006 – First ULEL GenSet locomotive to demonstrate high dispatch and continuous tractive effort parallel to a six axle locomotive in a 126 car double-stack train consist 2007 – First ULEL GenSet locomotives to be EPA certified to 3.0 GPBHP hour of NOx in both switching and line haul duty cycles 2008 – First ULEL GenSet locomotives to demonstrate 50%-65% fuel savings at more than thirty beta sites throughout North America National Railway Equipment Co.

4. EPA Certified ARB Recognized Fuel Reduction Average Savings of 50%+ TE Enhancement Efficiency of 65%+ Engine Durability Continuous HP Rating SOA Electronics Advanced Control Tech. Modular Design Reduced Lead-times National Railway Equipment Co. T ODAY’S E QUIPMENT

5. National Railway Equipment Co. EPA R EQUIREMENTS : S WITCHER D UTY C YCLE

6. National Railway Equipment Co. EPA R EQUIREMENTS : H ORSEPOWER /RPM

7. National Railway Equipment Co. EPA R EQUIREMENTS : M ULTIPLE D IESEL E NGINE G ENSETS EPA T IER II C OMPLIANT

8. USA EPA EMISSIONS LIMITS FOR LOCOMOTIVES VS. NREC LOW EMISSIONS SWITCHER COMPARISON CHART National Railway Equipment Co. 0.03 0.03 0.02 0.05 0.1 0.1 0.2 0.24 PM 1.5 2.4 0.93 1.51 1.5 2.4 1.5 2.4 CO 0.14 0.14 0.02 0.04 0.3 0.6 0.3 0.6 HC 1.3 1.3 2.88 3.37 5.5 5 5.5 8.1 NOx LINE HAUL SWITCHER LINE HAUL SWITCHER LINE HAUL SWITCHER LINE HAUL SWITCHER (G/BHP-H) TIER IV (2015-LATER) NREC SWITCHER TIER III (2012-2014) TIER II (2005-2011) EMISSIONS

9. USA EPA EMISSIONS LIMITS FOR LOCOMOTIVES VS. NREC LOW EMISSIONS SWITCHER COMPARISON CHART National Railway Equipment Co. 0.03 0.03 0.02 0.05 0.1 0.1 0.2 0.24 PM 1.5 2.4 0.93 1.51 1.5 2.4 1.5 2.4 CO 0.14 0.14 0.02 0.04 0.3 0.6 0.3 0.6 HC 1.3 1.3 2.88 3.37 5.5 5 5.5 8.1 NOx LINE HAUL SWITCHER LINE HAUL SWITCHER LINE HAUL SWITCHER LINE HAUL SWITCHER (G/BHP-H) TIER IV (2015-LATER) NREC SWITCHER TIER III (2012-2014) TIER II (2005-2011) EMISSIONS

10. USA EPA EMISSIONS LIMITS FOR LOCOMOTIVES VS. NREC LOW EMISSIONS SWITCHER COMPARISON CHART National Railway Equipment Co. 0.03 0.03 0.02 0.05 0.1 0.1 0.2 0.24 PM 1.5 2.4 0.93 1.51 1.5 2.4 1.5 2.4 CO 0.14 0.14 0.02 0.04 0.3 0.6 0.3 0.6 HC 1.3 1.3 2.88 3.37 5.5 5 5.5 8.1 NOx LINE HAUL SWITCHER LINE HAUL SWITCHER LINE HAUL SWITCHER LINE HAUL SWITCHER (G/BHP-H) TIER IV (2015-LATER) NREC SWITCHER TIER III (2012-2014) TIER II (2005-2011) EMISSIONS

11. USA EPA EMISSIONS LIMITS FOR LOCOMOTIVES VS. NREC LOW EMISSIONS SWITCHER COMPARISON CHART National Railway Equipment Co. 0.03 0.03 0.02 0.05 0.1 0.1 0.2 0.24 PM 1.5 2.4 0.93 1.51 1.5 2.4 1.5 2.4 CO 0.14 0.14 0.02 0.04 0.3 0.6 0.3 0.6 HC 1.3 1.3 2.88 3.37 5.5 5 5.5 8.1 NOx LINE HAUL SWITCHER LINE HAUL SWITCHER LINE HAUL SWITCHER LINE HAUL SWITCHER (G/BHP-H) TIER IV (2015-LATER) NREC SWITCHER TIER III (2012-2014) TIER II (2005-2011) EMISSION S

12. National Railway Equipment Co. F UEL R EDUCTION Engine efficiency through technology advancement 1954 to 2006 Idle Limiting electronically monitored and controlled Engine restart at 10 degrees F through ethylene-glycol coolant Power on demand: using only the HP required by the application Engine load sharing to achieve more optimum performance TE differential (IGBT) facilitates more work with less overall hp

13. FUEL CONSUMPTION SAVINGS Locomotive Duty Cycle Hours of Operation Daily Average Fuel Consumption Cost of Fuel Dollars Saved Per Day Above are calculated fuel savings utilizing the 3GS-21B N-ViroMotive locomotive in comparison to conventional EMD, GE and Alco four axle road-switching locomotives rated between 1,800 – 2,100 HP. National Railway Equipment Co. $315.00 $3.50 180 gallons 8 Road – Switchers Switchers $376.00 $3.50 215 gallons 10 Road – Switchers Switchers $438.00 $3.50 250 gallons 12 Road – Switchers Switchers $525.00 $3.50 300 gallons 16 Road – Switchers Switchers $683.00 $3.50 390 gallons 20 Road – Switchers Switchers

14. N-VIROMOTIVE BETA TEST SITES COMPARATIVE FUEL CONSUMPTION National Railway Equipment Co. Operational Fuel Savings Estimates Performance Testing Period N-ViroMotive Model Beta-Site Location Railroad Account Identification 50+% 60 Days 3GS-21B Alberta Canadian Pacific 67%+ 14 Days 3GS-21B Indiana Indiana Railroad 50%+ 14 Days 3GS-21B Indiana Indiana Harbor Belt 50%+ 365 Days 3GS-21B Texas Fort Worth & Western 50%+ 14 Days 3GS-21B Illinois EJ&E 40%+ 21 Days 3GS-21B Texas DGNO 50%+ 30 Days 2GS-14B California California Northern 50%+ 21 Days 3GS-21B Illinois Canadian National 50%+ 21 Days 2GS-14B Alaska Alaska Railroad

15. N-VIROMOTIVE BETA TEST SITES COMPARATIVE FUEL CONSUMPTION National Railway Equipment Co. Operational Fuel Savings Estimates Perf. Testing Period N-Viromotive Model Beta-Site Location Railroad Account Identification 50%+ 21 Days 3GS-21B Texas Volpe 65%+ 21 Days 2GS-14B Washington Tacoma Rail 50%+ 24 Days 3GS-21B Massachusetts Providence & Worcester 50%+ 30 Days 3GS-21B California Pacific Harbor Lines 50%+ 14 Days 2GS-14B British Columbia Pacific Elevator 50%+ 28 Days 3GS-21B Alberta Nova Chemical 45%+ 120 Days 3GS-21B Pennsylvania Norfolk Southern 50%+ 14 Days 3GS-21B Tennessee Nashville & Eastern 50%+ 210 Days 3GS-21B Massachusetts MBCR/MBTA

16. National Railway Equipment Co. T RACTIVE E FFORT IGBT Technology Individual Traction Motor Controls N-FORCE Microprocessor

17. National Railway Equipment Co. T RACTIVE E FFORT

18. Introducing N-GEN II Railroad Quality Marathon Alternator QSK 19L Engine Rated at 700 HP Available in Plate C’s with Dynamic Brakes National Railway Equipment Co.

19. Clean Air Intake for NGEN II electrical components Smaller Footprint then Plate L N-ViroMotive Locomotives Inclusive NGEN I features on Plate L N-ViroMotive Locomotives Up scaled Rectifier Assembly Introducing N-GEN II Mono Cyclone Filter Rectifier Assembly National Railway Equipment Co.

20. National Railway Equipment Co. T RACTIVE E FFORT

21. National Railway Equipment Co. T RACTIVE E FFORT

22. National Railway Equipment Co. T RACTIVE E FFORT

23. National Railway Equipment Co. T RACTIVE E FFORT

24. National Railway Equipment Co. ENGINE DURABILITY : C UMMINS QSK19 T IER III Engine Type = In-Line, 4-Cycle, 6-Cyl Displacement = 1159 cu. In. 19 Liters Rated Power = 510-700 BHP 379-522 kW Aspiration = Turbocharged Air-to-Air Charge Air Cooled Locomotive design certified as EPA Tier II Railroad Compliant (NREC EPA Certificate) Full Authority Electronic Controls Cummins Modular Common-Rail Fuel System Over 10,000 QSK19 Engines in Industrial Applications with over 500 installed in NREC Locomotives

26. National Railway Equipment Co. N-FORCE Microprocessor Electronic Control System N-Limit - idle limiting system N-Force – anti-wheel slip system N-Vision – Operator Interface Display with fault log N-Sure - Battery Sure Start N-Lights

27. National Railway Equipment Co. N-FORCE NRE Electronics “ N-FORCE ”

28. N-FORCE AXLE SPEED SENSING EQUIPMENT National Railway Equipment Co.

29. OPERATOR INTERFACE PANEL WITH FAULT LOG National Railway Equipment Co. N-VISION

30. N-SURE BATTERY SURE START National Railway Equipment Co.

31. N-LIGHT National Railway Equipment Co.

32. National Railway Equipment Co. M ODULAR D ESIGN : T HE G EN S ET I N P ROCESS

33. National Railway Equipment Co. M ODULAR D ESIGN : I NSTALLED G EN S ET

34. National Railway Equipment Co. L OCOMOTIVE I N P ROCESS Cab in Process

35. National Railway Equipment Co. Frame in Process L OCOMOTIVE I N P ROCESS

36. National Railway Equipment Co. Electrical Cabinet in Process L OCOMOTIVE I N P ROCESS

37. National Railway Equipment Co. Cab Console L OCOMOTIVE I N P ROCESS

38. LOCMOTIVE IN PROCESS Cab Console National Railway Equipment Co.

46. National Railway Equipment Co. T ODAY’S N-VIROMOTIVE GENSET E QUIPMENT Lowest emitting freight locomotive worldwide - 80%+ reduction in NOX & PM’s compared to other 4 axle units - Tier II Railroad compliant & Tier III Off-Highway Certified - ULEL Recognized by the Air Resources Board of California Dramatically improved tractive effort - 50% - 65% + improvement in TE adhesion efficiency Fuel Savings - 40% to 70% dependent on the locomotive duty cycle Reduction in on-going routine maintenance costs - 55% to 70% thru engine load sharing and modular design Ultra quiet operating locomotive - Cab sound level (throttle notch 8) at 79 dB(A)

47. Particulate Filter System Proposal NREC Advanced N-ViroMotive Locomotive

48. N-ViroMotive Application DPF System Architecture CARB – verified DPF Technology System Packaging Pressure Drop Prediction Emissions Performance Prediction Regen/Controls Stategy

49. DPF System Architecture

50. DPF Description The Universal Silencer DPF system uses CARB-verified catalyzed filter technology. The single-stage device is comprised of one or more particulate filters coated with catalytic material which promotes oxidation of particulate matter (PM), Hydrocarbons (HC) and Carbon Monoxide (CO) in the exhaust gas entering the filter. The significant chemical reactions which take place in the DFP are shown below. In addition to converting CO and hydrocarbons to CO2 and H2O, the catalyzed filter converts some of the NO from the engine exhaust to NO2 which then reacts with the carbon soot trapped in the filter to produce NO and CO.

51. DPF System Packaging Packaging of DPF & catalyst units in existing package space 3-10.5” dia X 12” long catalyzed filter elements Flow diffuser maintains proper flow distribution across filter elements Thermal management - Duty Cycle Assessment - Heat rejection Service access requirements

52. DPF Emissions Performance Engine – Out Levels Predicted DPF – Out Levels

53. SCR System Development

54. DPF + SCR System Architecture

55. Representative SCR System Skid-Mounted System for GenSet w/Cumins KTA50-G3 Engine

56. Representative SCR System Skid-Mounted System for Genset w/Cummins KTA50-G3 Engine