GREENING NORTH AMERICA’S TRADE CORRIDORS “HOW TO GREEN NAFTA TRUCKS” April 22, 2008

1. GREENING NORTH AMERICA’S TRADE CORRIDORS “HOW TO GREEN NAFTA TRUCKS” April 22, 2008 Improving Profits + Reducing Environmental Impact

3. Diesel Emissions • What emissions are produced by diesel engines? • The annual emissions from a “Fleet Average” heavy-duty diesel truck relative to the annual emissions from a catalyzed “Fleet Average” gasoline car1 • California emissions data from EMFAC comparing a “fleet average” catalyzed car with a “fleet average” heavy-duty diesel truck (over 33,000# GVWR)

4. Controlling PM

5. Pre-Combustion Solution – Combustion Catalyst System • Reduces HC, PM, CO, and NOx • Introduces catalysts to combustion as an aerosol to complete combustion • PM reductions generally 40% - 80% • NOx reductions generally 13% - 27% • Reduces fuel consumption 8% - 15% or more • Bottle change (5 minutes) every 400 hours • Lower initial investment and cost of operation

6. Exhaust Aftertreatment – Oxidation Catalyst • Reduces HC, CO and some PM • Flow through that “converts” PM rather than “trap” PM • PM reductions can be on the order of 15% to 25% • No periodic cleaning necessary

7. Exhaust Aftertreatment – Turbulent Flow • Typically catalyzed to reduce HC, CO and lower PM regeneration temperature • Flow through “turbulent” path • Wire mesh or metal foil • PM reductions can be on the order of 50% to 70% • No periodic cleaning necessary

8. Non-catalyzed filter – Reduces PM Traps PM Catalyzed filter – Reduces PM, HC & CO Traps PM Catalyzes HC and CO Requires high heat to burn off PM (like a self-cleaning oven) Exhaust heat from engines under high load Electric elements or fuel burners Non combustible materials stay in filter and must be removed periodically Exhaust Aftertreatment – Filter (DPF)

9. Filter Maintenance Captured in tail pipe . . . Collected in filter bags . . . Stored onsite . . . May need to be handled as a hazardous material

10. Current Paradigm • EPA Verification is too restrictive • SmartWay relies too much on EPA verification. • Verified technologies are regulatory solutions, not business minded.

11. Perspective Many of the larger trucking companies in Mexico • Are at least as well run or better than their US counterparts • Drive only new trucks and trade them in before they go out of warranty • Would be willing to upgrade trucks to current EPA standards to drive into the US if they were able to cross the border • This would also help emissions in Mexico

12. Alternatives • Viable new technologies arriving on the scene • Reducing emissions in non-conventional ways • Reducing fuel consumption • EPA: 1 gallon of diesel = CO2 by 22.2 lbs • Create standards that permit companies to take advantage of innovative, validated technologies that are not EPA verified. • Encourage creation of “carrot based” rules rather than just “regulatory sticks.”

13. THANK YOU! Debra T. Johnson, President/CEO Eco-Edge, LLC 7400 W. Detroit, #150 Chandler, AZ   85226 Phone: 480-705-4444 Toll Free: 877-EPI-INTL www.ecoedgeco.com Improving Profits + Reducing Environmental Impact