SmartWay Transport Partnership

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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
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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.

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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.

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Benefits for the Environment

• 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

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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

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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

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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

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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

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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 ORDs 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

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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

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Idle Reduction Technologies For Trucks and
Locomotives

• Average fuel savings Emissions 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

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Trailer Aerodynamics

• Average fuel savings Emissions Controlled
• Trucks 5 CO2, NOx
• Trailer Fairings, Side-skirts
• Nose Cone and Trailer Tail

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Low Rolling Resistance Tires Single Wide Base and
Improved Duals

• Average fuel savings Emissions 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

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Exhaust After-Treatment Devices
Average fuel savings Emissions
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

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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 _at_ 6 mpg
  (16,667 gallons /year)
• - Fuel savings 2,333 gallons _at_ 2.80/gallon ?
  6,532/year
• - Payback period 14,500 / 6,532 ? 2
  years
• - or a 5 year loan _at_ 12 APR

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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
  

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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/fi
  nancing.htmfedgrants

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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

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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
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Marketing and Recognition For SmartWay Partners
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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
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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
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www.epa.gov/smartway smartway_transport_at_epa.gov ph
one center [phone] bynum.cheryl_at_epa.gov
734-214-4844