SmartWay Transport Partnership

1. SmartWay Transport Partnership EPA SmartWay Talking Freight Seminar June 18, 2008 Presented by Anthony Erb for Cheryl L. Bynum U.S. Environmental Protection Agency

2. Significant GHG Contribution from Transportation

3. Emission Standards for New Highway Heavy Trucks

4. 3.5 3.0 2.5 2.0 Highway VMT (trillion miles) 1.5 1.0 0.5 0.0 1950 1955 1965 1995 2000 1960 1980 1990 1970 1975 1985 Calendar Year Growth Threatens to Offset Gains from Cleaner Vehicles Source: U.S. Department of Transportation – Bureau of Transportation Statistics

5. EPA Clean Diesel Partnerships • Sectors: • Marine Ports • Construction • School buses • Freight • Agriculture • Objective: Reduce emissions from the over 11 million engines in use

6. What is SmartWay? SmartWay = clean and efficient transportation options • SmartWay vehicle designation = cleanest, most efficient vehicle technology • Passenger vehicles – www.epa.gov/greenvehicles • Commercial vehicles – SmartWay class 8 tractors and trailers • SmartWay Transport Partnership designation = commitment to conserve fuel and reduce emissions in transport • SmartWay 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.

7. SmartWay Reaches Out to Transportation End-Users • EPA SmartWay helps accelerate cleaner technologies into the market using business-friendly methods: • Information dissemination via web and industry events • Shipper relationships to reward high-performing fleets • Equipment availability through dealer networks • DERA funding for innovative emission-reduction technologies (including nonroad/ports with National Clean Diesel Campaign) • Expanded access to capital via new SmartWay finance center

8. Benefits for Partners • Shippers and Logistics Companies: • Better info about transportation footprint • Demonstrate corporate citizenship by hiring environmentally minded carriers • Carriers (rail and truck fleets): • 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/Truck stops: • Access to tools for marketing and outreach • Public recognition for promoting environmental goals

9. Tracking Tools • 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

10. Lessen health impacts from diesel emissions: Exacerbates asthma, respiratory and cardiac illness Possible human carcinogen Improve air quality: More than 100 million people live in counties with air quality that exceeds the national standards for ozone and PM2.5 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

11. Partner Commitments to Date • 882 Partners • Companies include: trucking fleets, shippers, rail road companies, logistics companies, affiliates, truck stops.

12. 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

13. Types of Carrier StrategiesFor Trucks & Locomotives • Idle reduction • Improved aerodynamics for tractors and trailers • Low rolling resistance tires including single wide tires • Speed management • Increased/improved inter-modal operations • Exhaust after-treatment devices • Lightweight materials • Advanced lubricants • Alternative and sustainable fuels • Hybrid technologies

14. SmartWay Freight Transport Technology Program • Testing & modeling to quantify technologies including: • Aerodynamic fairings • New low-rolling resistance tires • Idle reduction equipment • Emission control technologies • SmartWay tractors and trailers

15. Reducing Unnecessary Truck and Rail Idling • Guidance for states to implement idle reduction projects • Model state “idle reduction law” to provide consistency • Funding for TSE and APU installations • $5M in grants • 86 projects nationwide

16. Technology that Pays for Itself • Assume 100,000 miles/year @ 6 mpg = 16,667 gallons/year • Fuel savings : 2,833 gallons @$4.00/gallon = $11,332/year • Payback 1.5 years $16,500/$11,332 • Or can do a five year loan @ 12% APR:

17. SmartWay Finance Center: Banks Competing for Loans

18. Other Financing Options:National SBA Loan Program • EPA partnered with Small Business Administration to make loans available to purchase fuel-saving technologies • 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 • Several states offer financial assistance • More information at epa.gov/smartway/financing.htm

19. SmartWay Tractors and Trailers • Specifications include 2007+ engine, idle reduction, low rolling resistance tires, and aerodynamic equipment • 10% to 20% efficiency gain, • relative to a comparable • truck without these • fuel-saving features

20. The SmartWay Truck

21. SmartWay Passenger Vehicles • Web site, point of sale, manufacturer advertising, and PSA • Rental/leasing companies offer SmartWay cars in their “green” collection

22. Innovative Ways to Reach End-users

23. New PSA Campaign

24. Complementary Sustainability Initiatives • ATA announced sustainability initiative May 8 2008 • Outlines six measures that ATA and its task force members say can reduce fuel consumption by 86 billion gallons and CO2 emissions by 900 million tons for all vehicles over next 10 years • One recommendation is to join SmartWay • More information on www.trucksdeliver.org

25. Greening the Supply Chain

26. EPA Supply Chain Model - Concept

27. SmartWay Program Results • >530M gallons fuel • 5.9M tons less CO2 • 34K tons less NOx • 936 tons less PM After just 4 years, SmartWay and our 882 partners have committed to achieve the following annual reductions:

28. “SmartWay 2.0” • Expand shipper/supply chain models and tools • Streamline carrier tools • Finalize test protocol • Launch new PSA • Collaborate with stakeholders to evolve SmartWay in ways that add the most value for all our partners – trucking companies, shippers, states, the general public

29. Questions? Thank you! Cheryl L. Bynum Technology and Fuels Team Lead SmartWay Transportation Partnership 734-214-4844 Bynum.cheryl@epa.gov www.epa.gov/smartway