Reducing Emissions through Innovative Clean Diesel Programs

1
Reducing Emissions through Innovative Clean
Diesel Programs

• Southeast Diesel Collaborative
• Second Annual Partners Meeting
• June 26-27, 2007
• Lori Stewart, Deputy Director
• Transportation and Regional Programs Division
• Office of Transportation and Air Quality

2
The National Clean Diesel Campaign and SmartWay
Transport Partnership

• National Clean Diesel Campaign
• Deploying cleaner technologies and strategies for
  school buses, ports, construction, agriculture
  and other highway and nonroad vehicles/equipment
• Reduce emissions from the legacy fleet of over 11
  million diesel engines by 2014
• SmartWay Transport Partnership
• Creating a demand for cleaner and more energy
  efficient freight transportation through
  public-private partnerships
• By 2012, the program aims to save between 3.3 and
  6.6 billion gallons of diesel fuel per year which
  translates to eliminating between 33 - 66 million
  metric tons of CO2 emissions and up to 200,000
  tons of NOx emissions per year

3
The National Clean Diesel Campaign - Regulations

• Common Aspects--
• Systems approach ULSD enables clean
  technologies.
• Very large environmental and public health
  benefits.
• Current regulations by 2030, PM reduced by
  250,000 tons/year, NOx by 4 million tons/year.
  Annual benefits are expected to exceed 175
  billion versus costs of approximately 11
  billion.
• Responsive to needs of states to meet NAAQS.
• Collaborative process.

Tier 2 Light-duty (1999)
Highway
2007/2010 Heavy-duty (2001)
Clean Nonroad Diesel (2004)
Locomotive/Marine
Proposed April 2007 PM reduced by 250,000
tons/year, NOx by 4 million tons/year.
Nonroad
4
NCDC/SmartWay Program Highlights

• To date, non-regulatory programs have resulted
  in
• Emission reductions nearly 30,000 tons PM, over
  215,000 tons NOx
• 3.97 Million tons CO2/year (.358 billion gallons
  of diesel/year)
• Over 5 billion in health benefits over the life
  of these programs
• Technical Support
• New nonroad verifications, 27 technologies now on
  EPAs verified list
• In-use testing results technologies effective in
  the field
• Fuel saving technology verification
• Release of the SmartWay Tractor and Trailer
  specifications
• Currently developing the first Heavy-duty fuel
  economy testing protocol
• Diesel Emissions Quantifier (web-based calculator
  released)
• Support to states developing clean diesel programs

5
NCDC/SmartWay Program Highlights

• Financing/Funding
• Competed and awarded 40 million since 2003,
  resulting in about175 EPA diesel grants
• Innovative Financing Programs
• Recruiting Partners
• Recruited over SmartWay 500 partners, both
  shippers and carriers,
• making corporate-wide commitments
• Marketing/Communications (PSAs)
• Received over 13 million in SmartWay pro bono ad
  placements (television, print, airports)
• SmartWay Excellence Awards recognizing our high
  performing partners
• Fall release of Magic School Bus childrens book
• Launched Smartway Grow and Go - Biofuels

6
EPA Greenhouse Gas Rulemaking

• Recent US Supreme Court decision in Mass. v. EPA
  has caused EPA to begin consideration of
  regulatory action
• GHGs are pollutants under the Clean Air Act
• CO2, CH4, HFCs, N20
• Focus on transportation sector
• Passenger cars and light trucks
• Proposal will also include fuels program
• Starting point is Presidents Twenty in Ten
  announcement
• 35 B gallons of renewable and alternative fuel by
  2017
• Improve efficiency of cars and light trucks by 4
  per year
• Looking at entire range of issues and analyses,
  including feasibility, costs, program structure,
  emissions credit systems, technology pathways,
  and biofuels modeling
• Working with DOE, USDA, and NHTSA on proposal
  targeted for the end of this year
• Executive Order 13,432 guiding interagency process

7
SmartWay Grow Go

• Launched in October, 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
• Grow Go was a participant in the annual Ethanol
  Summit hosted by the Ethanol Promotion and
  Information Council (EPIC) in May of 2007
• First wave of Biofuels Companies to be showcased
  at Dallas truck show this summer
• NCDC also promotes biofuels as retrofit strategy

8
SmartWay Innovative Financing StrategiesSupport
Both Fuel Efficiency and Emissions Reduction

• Goal Create innovative and sustainable
  financing for energy efficient and emission
  control technologies
• Smaller fleets cannot afford the upfront cost of
  even the most cost-effective technologies with
  very quick paybacks (2 years or less)
• Phase 1 SmartWay Loan for Energy Saving Devices
• Lower interest rates (for owner-operators) and
  flexible terms
• Finance fuel saving strategies only (e.g., idle
  reduction devices, tractor/trailer aerodynamics,
  low-rolling resistance tires, automatic tire
  inflation)
• Difficult to finance emission control devices
• Phase 2 SmartWay Plus Loan for cleaner trucks
• Very low interest rates (4-6)
• Finance purchase of used trucks with verified
  emission controls
• Environmental control Better financing rates
  and/or terms
• Make trucks with emission control devices less
  expensive than those without

9
CMAQ Funded Programs

• CMAQ eligibility includes
• Replacement, repowering, rebuilding, advanced
  emission control technologies, cleaner fuels (in
  limited scenarios), idle reduction technologies
  and outreach activities
• On-road fleets such as school buses, trucks and
  transit fleets are eligible as well as
  construction equipment used in transportation
  projects.
• Tennessee DOT Diesel Workgroup recently
  recognized by SEDC and EPA for using CMAQ funding
  for nonroad and locomotive clean diesel activity
• CMAQ funds are instrumental in leveraging funding
  by other partners for projects.
• Example 22.5 M dedicated by Massachusetts to
  equip 8,400 public school buses and transit buses
  with pollution control technology. This includes
  18M in CMAQ funds.
• Example 105 K received by Rogue Disposal
  Recycling, Inc. in OR from the Rogue Valley COG
  for the retrofit of 18 waste haulers. This
  includes 55K in CMAQ funds.

10
FY08 EPA Budget

• EPAct 2005 Diesel Emission Reduction Program
• President proposed 35M, nonattainment (NA) areas
• House and Senate Subcommittee Marks 50 M
• Program divided into Federal and State components
• 70 for federal grant/loan programs
• 50 to public fleets
• Funds will be distributed through RFPs by EPA
  Regions
• Up to 10 for emerging technologies
• 30 for State programs (not in House mark-up)
• Program funding, allocations, criteria,
  eligibility, etc. subject to final Congressional
  appropriation language

11
EPAs Clean Diesel Collaboratives

• Seven regional collaboratives are highly active
  in promoting and deploying clean diesel programs.
• - Northeast (R1,2) -Midwest (R5) -West Coast
  (R9/10)
• - Mid-Atlantic (R3) -Blue Skyways (R6/7)
• - Southeast (R4) -Rocky Mountain (R8)
• The Southeast Diesel Collaborative has made
  substantial progress
• Over 50 growth in partnership
• Over 4500 school buses retrofitted
• South Carolina legislation to retrofit all school
  buses
• Construction equipment initiatives

12
Outlook for Innovative Clean Diesel Programs

• SIP and cost-effectiveness guidance is available
  to quantify the emissions reductions
• Substantial growth anticipated in EPAs FY 08
  Budget
• More areas are using CMAQ funding for clean
  diesel
• Successful innovative financing programs will be
  expanded
• Its a shared responsibility federal, state,
  private, local organizations all have to do their
  part