Deere Confident That It Can Meet New EPA Guidelines

MOLINE, Ill., May 12, 2004 -- Deere & Company said today that new regulations for off-road diesel engines announced by the U.S. Environmental Protection Agency would be challenging to meet but that John Deere Power Systems is confident in its ability to do so.

"We have a proven track record for producing off-road diesel engines offering increased fuel economy and power as well as improved environmental performance," said James D. White, senior vice president, John Deere Power Systems Group. "John Deere has long been known for its environmental stewardship and product innovation."

The new EPA Tier 4 rule continues the progression toward cleaner off-road diesel engines. Since EPA first adopted off-road regulations in 1996, emissions have been significantly reduced. The new standards, when fully implemented, will provide a 90 percent reduction in NOx and more than a 95 percent reduction in particulates, as compared to uncontrolled emission levels.

The EPA has recognized differences between on-highway and off-highway engines in the new Tier 4 rule -- a move that was supported by Deere and others.

"Off-road engines have lower sales volumes, broader power ranges, more diverse equipment use and harsher operating conditions," White said. "We support the EPA's plan of a phase-in provision, allowing for emission reductions to be achieved in the earliest year that is technically and economically feasible, while allowing additional time for those engines or machines for which compliance is particularly difficult or expensive."

White said a phase-in provision helps promote better air quality while reducing compliance costs for manufacturers and enabling consumers to replace their older engines with newer, more affordable, cleaner emitting ones.

Deere also supports the 2007 technical feasibility review and harmonization of the rule with the European Union, White said.

The 2007 technical feasibility review will ensure that those after treatment technologies necessary to comply with the standards, many of which have yet to be developed, will keep pace with the rule's implementation dates, allowing for midcourse corrections, if necessary.

Harmonization of the rule with the European Union provides consistency between the U.S. and European standards that will help reduce compliance costs by spreading development expenses across a greater number of engines.

Technical and economic feasibility are critical elements toward a successful rollout of the rule, White said. He said that Deere fully supports the feasibility review and urges the EPA to continue working with the EU to ensure harmonization.

"Although a number of technical issues remain to be resolved, such as the measurement and certification procedures, we are pleased with the overall direction taken by the agency in crafting the rule," White said. "John Deere will continue working with the EPA and others to address these remaining issues and will continue to be a leader in the progress that has been made over the years toward cleaner, more efficient, off-road engines."

John Deere is the world's leading manufacturer of agricultural and forestry equipment; a leading supplier of equipment used in construction and in lawn, grounds and turf care. John Deere Power Systems produces diesel and natural gas engines and other power train components for nearly 200 Deere models and 1,000 models of machines made by other manufacturers, primarily for off-highway and marine applications. Throughout its history John Deere has been recognized for its leadership in environmental stewardship and product innovation.