SmartWay Transport Partnership

1. SmartWay Transport Partnership Strategies to Reduce GHG Emissions from Freight: SmartWaySM Talking Freight Seminar January 17, 2007 Cheryl L. Bynum U.S. Environmental Protection Agency

2. What is SmartWaySM? SmartWay = clean and efficient transportation options • SmartWay vehicle designation = cleanest, most efficient vehicle technology • Passenger vehicles – www.epa.gov/greenvehicles • Commercial vehicles – in planning stage • SmartWay Transport Partnership designation = commitment to conserve fuel and reduce emissions in transport • SmartWay Partnership is free to join; open to companies of any size • Trucking companies join partnership and commit to improve fuel efficiency and reduce emissions over a 3 year period. • Shipping companies join partnership and commit to ship 50% or more of their product with SmartWay trucking partners, as well as improving their freight operations over a 3 year period.

3. Results to Date(As of 1/11/2007) • 476 Partners (after nearly 3 years) • Companies include: trucking fleets, shippers, rail road companies, logistics companies, associations, truck stops.

4. Lessen health impacts from diesel emissions: Exacerbates asthma, respiratory and cardiac illness Possible human carcinogen Improve air quality: 474 counties are out of compliance with the 8-hour ozone standard 225 counties are out of compliance with the particulate matter standard Lessen the impacts on our most vulnerable populations: Children, the elderly and people with existing health conditions Reduce CO2 emissions that contribute to climate change: Every gallon of diesel consumed creates 22.2 pounds of CO2 Improve energy security: Fuel prices, availability Benefits for the Environment

5. Benefits for Partners • Shippers and Logistics Companies: • Better info about transportation footprint • Demonstrate corporate citizenship by hiring environmentally minded carriers • Carriers: • Gain competitive advantage as shippers strive to move more goods with SmartWay Transport carriers • Track emissions and fuel consumption • Do cost benefit analyses for different technologies and/or strategies • Affiliates: • Access to tools for marketing and outreach • Public recognition for promoting environmental goals

6. How do Partners Measure Progress? • Freight Logistics Environmental and Energy Tracking (FLEET) Performance Model: • Carriers: • Calculate tons of CO2, NOx, and PM • Determine effectiveness of strategies used in the fleet (e.g., aerodynamics, idling reduction) • Project the effectiveness of strategies a fleet could add in the future. • Estimate cost savings and payback period for strategies • Shippers: • Track percentage of freight shipped with SmartWay Transport Carrier Partners • Measure their environmental footprint

7. Types of Shipper Strategies • Shippers ship more freight with SmartWay Transport Carriers • Shippers implement facility and operational measures to improve efficiency • Use of Intermodal Shipping • Full Truckloads • Idle Reduction Policies at Loading Facilities

8. Types of Carrier StrategiesFor New and Existing Trucks & Locomotives • Idling Reduction • Improved Aerodynamics for tractors and trailers • Low rolling resistance tires including super singles • Speed management • Increased/improved inter-modal operations • Exhaust after-treatment devices • Lightweight materials • Advanced lubes • Alternative and sustainable fuels • Hybrid technologies

9. EPA Technology Testing • EPA conducted tests on impacts of reducing long-duration truck idling • 42 tests on 9 class 8 trucks, using APUs and DFH • Tests conducted in an emissions laboratory • Tested with and without accessory load (A/C, heater) • Demonstrated a 50% to 80% per hour fuel savings, and NOx and PM reductions • EPA conducted tests on impacts of improving over-the-road truck fuel economy, by reducing aerodynamic and rolling resistance drag • 42 tests on 6 class 8 trucks, over 5 different drive cycles • Tests conducted on a test track, with PEMS • Tested with and without low rolling resistance, single wide tires and trailer aerodynamic fairings • Demonstrated a 10% per-mile fuel savings, and NOx reductions (PM not tested) • EPA working with ORD’s ETV program conducted tests on emission control equipment • Tests demonstrate diesel oxidation catalysts, PM filters, etc reduce NOx and/or PM • EPA combined these technologies it tested into “SmartWay Upgrade” kits

10. SmartWay Upgrade Kit ExampleFuel Savings Drive the Business Case • SmartWay Upgrade Kits: • Technologies (or bundles of technologies) that are proven to save fuel and reduce emissions • First example, trucks: • Idling control device • lower rolling resistance tires • improved aerodynamics • exhaust after-treatment (PM filter) • Other applications exist for: Port gantries, cranes, locomotives

11. Idle Reduction Technologies For Trucks and Locomotives Average fuel savingsEmissions Controlled Trucks: 1 gal/hr CO2, NOx, and PM Rail: 4 - 12 gal/hr • Automatic Shut-Down/Start Up System • Battery Powered Systems • Diesel Driven Heating System • Auxiliary Power Unit/Generator Set • Truck Stop Electrification

12. Trailer Aerodynamics Average fuel savingsEmissions Controlled Trucks: 5% CO2, NOx • Trailer Fairings, Side-skirts • Nose Cone and Trailer Tail

13. Low Rolling Resistance Tires Single Wide Base and Improved Duals Average fuel savingsEmissions Controlled Trucks: 4 - 5% CO2, NOx • Single-wide tires and aluminum wheels • Reduced rolling resistance • Reduced weight • Low rolling resistance duals can be as effective as singles

14. Exhaust After-Treatment Devices Average fuel savingsEmissions Controlled ---- PM • Diesel Oxidation Catalysts • Estimated cost: $1,000 • Reduce PM by 25% – 40% • Particulate Matter Filters • Estimated cost $6,000 • Reduce PM by 80% – 90%

15. SmartWay Upgrade Kit ExampleFuel Savings Drive the Business Case • Example of a SmartWay Upgrade Kit for Long Haul Trucks: • For a truck traveling 100,000 miles/year @ 6 mpg (16,667 gallons /year) • - Fuel savings: 2,333 gallons @ $2.80/gallon  $6,532/year • - Payback period: $14,500 / $6,532  ~2 years • - or a 5 year loan @ 12% APR:

16. SmartWay Upgrade Kit Financing OptionsNational SBA Loan Program EPA partnered with Small Business Administration to make loans available to purchase SmartWay Upgrade Kits SBA Express Loans from $5,000 to $25,000 Offered through Bank of America, Business Loan Express, Superior Financial Group and other SBA lenders Focus is smaller trucking companies who lack capital Benefits include: fast processing, no collateral, an easy on-line or telephone application, flexible loan terms More information at epa.gov/smartway/financing.htm

17. SmartWay Upgrade Kit Financing OptionsState Financing Programs Several states offer grants, loans, or tax credits to purchase the SmartWay Upgrade Kit, or components within the kit Arkansas – Small business loans for SmartWay Upgrade Kits Minnesota – Pollution Control Agency loans for SmartWay Upgrade Kits Oregon – Various tax credits and incentives for cleaner engine and idle reduction technologies Pennsylvania – Small business and pollution prevention loans for fuel-saving and idle reduction technologies Texas – TERP grants for pollution prevention technologies California – Carl Moyer grants for pollution prevention technologies Wisconsin – Grants for idle reduction technologies More information at http://www.epa.gov/smartway/financing.htm#fedgrants

18. SmartWay Upgrade Kit Financing OptionsNext Steps: Public-Private Financing to Buy Down Interest Rates Example: Multi-State SIBs Expand on initial success of Oregon State Infrastructure Bank (SIB) by creating large-scale I-95/I-5 multi-state projects • SIBs can finance transportation projects (as low as 0% APR) • Traditionally used for bridges, toll booths, etc. 33 states have SIBs with over $6 billion in available capital 10 w/SIBs along I-95: DE, FL, ME, NY, NC, PA, RI, SC, VT, VA Program would create significant amount of low-cost public capital Fund projects directly (as loans) Use low APR public funds to buy down interest rates of private capital (create sliding interest rate program) Will require coordinated efforts by multiple entities: • I-95: Regions 1, 2, 3, 4 • I-5: Regions 9, 10 • Federal and state DOT

19. SmartWay Assistance to States – SIP Projects For Trucks and Locomotives EPA published SIP guidance for idle reduction projects for trucks and locomotives in January, 2004 addresses reduction of long-duration idling of trucks and switch locomotives EPA plans to publish SIP guidance for other fuel-saving SmartWay technologies (improved aerodynamics and low rolling resistance tires) in early 2007 addresses use of these technologies on class 8 combination trucks in highway-type operation

20. Marketing and Recognition For SmartWay Partners

21. SmartWay Partner Awards EPA awarded 24 SmartWay Partners with SmartWay Excellence Awards in October, 2006 Awards were conferred at two large industry events: National Association of Environmental Management annual conference in Savannah, Georgia American Trucking Associations annual conference in Grapevine, Texas Award winners include large, for-hire truck fleets, small-to-mid-size for-hire truck fleets, privately-owned truck fleets, companies that ship goods (“shippers”), logistics companies, and affiliate partners For more information, see:http://www.epa.gov/smartway/awards.htm

22. SmartWay Grow and Go • Promotes the environmental benefits of renewable fuels • Launched Oct. 26, 2006 at the Future Farmers of America National Convention • Goal - 25 percent of SmartWay Transport partners using renewable fuels by 2012, and 50 percent by 2020 www.epa.gov/smartway/growandgo

23. www.epa.gov/smartway smartway_transport@epa.gov phone center (734)214-4767 bynum.cheryl@epa.gov 734-214-4844