Dirty Diesel Truck Mini Project

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Dirty Diesel Truck Mini Project

• Professor Doug Cerf
• Donald Bren Graduate School of Environmental
  Science and Management
• Environmental Accounting Financial Management
  (ESM 284)
• Spring 2007

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Mini Project Objective

• The objective of this project is the reduction of
  diesel emissions from dirty diesel trucks through
  development and distribution of a basic financial
  model for the alternatives.
• This mini project will be done as a class and
  will be spread throughout the course.
• The focus is on a local approach for small
  organizations

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Project Logistics

• Each week we will
• Discuss the results from the team's work the
  previous week
• Generally, one team will work on the project each
  week
• The team working on the project for the week
  should spend 1-2 hours per team member (this is a
  mini project)
• The team will spend 10-15 minutes presenting
  their findings
• The team will send outlines to me by email after
  they have been annotated from class discussion
• I will post the outlines
• Discuss the next phase of the project

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Phase 1

• Plan the project
• Task for the first class

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Phase 2 Health Issue

• Write a draft one page proposal to a client on
  specifically why dirty diesel is a problem.
• How does it impact the people who use the truck?
• How does it impact others that breathe the diesel
  emissions?

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Phase 3

• Identify companies and government agencies that
  use dirty diesel.
• Focus is on small companies and agencies
• Focus on local organizations
• Examples
• California Conservation Corps
• Business Services Officer, Robert Mendoza
• rmendoza_at_ccc.ca.gov
• CDF California Department of Forestry and Fire
  Protection
• Garbage Companies
• School busses

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Phase 4

• Alternatives
• Existing vehicle
• Particulate traps and filters
• Alternative diesel fuels
• Replacement vehicle
• Alternative use of other owned vehicles

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Phase 5

• Funding Options
• State and Federal programs to replace or modify
  vehicles
• Example California Air Resources Board has a
  grant program to retrofit vehicles with
  particulate traps and filters

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Phase 6

• Develop a financial model for the three top
  alternatives
• Example Capital Budgeting model
• Model should include an example
• Flexible so firms can enter their own data
• This may be done by a few teams and may take a
  few weeks

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Alternatives

• Retrofit existing vehicle
• Alternative fuel
• Alternative vehicle (hybrid?)
• Source Phase 4 presentation

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Cash flows for financial models(if applicable)

• Proceeds from sale of existing vehicle
• Disposal cost of existing vehicle
• Difference in fuel costs
• Difference in maintenance costs
• Cost of retrofit
• Cost of new vehicle
• Subsidies from ARB/others
• Tax implications
• Cost of CO2, NOX, particular matter

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Phase 7

• Organize previous phases into a brief document
  that could be provided to a client

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Phase 8

• Discuss financial model and document with a
  client

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Assign teams to phases