2007 Heavy-duty Highway Nonroad Tier 4 Programs

2007 Heavy-duty Highway & Nonroad Tier 4 Programs Office of Transportation and Air Quality May 25, 2004 Draft Presentation 1

Key Elements of HD 2007 Fuel Program n Reduces diesel fuel sulfur levels nationwide n n Enables use of advanced emission control technology Highway diesel fuel sulfur cap of 15 ppm n n n 80% by 2006 100% by 2010 Flexibility for small and Western refiners 2

Key Elements of HD 2007 Engine & Vehicle Program n Applies new NOx and PM standards to heavy-duty engines and vehicles n n n 90%+ emission reductions— gasoline-like levels Based on high efficiency emission control devices (like passenger vehicle catalysts) 0. 01 g/bhp-hr PM standard in 2007 Phase-in of 0. 2 g/bhp-hr NOx standards 2007 -2010 Incentives for early technology introduction 3

Heavy-duty 2007: Basic Program Requirements 2006 PM 2007 2008 2009 2010 2011 2012 100% at 0. 01 g/hp-hr NOx 50% at 0. 20 g/hp-hr Fuel 80% at 15 ppm maximum sulfur (under temporary compliance option) 100% at 0. 20 g/hp-hr 100% at 15 ppm 4

Nationwide Heavy-Duty NOx Emissions without new standards with new standards Calendar Year 5

Nationwide Heavy-Duty PM Emissions without new standards with new standards Calendar Year 6

Costs and Benefits of 2007 Program n Compliance costs Long-term Costs: n n Estimated at $1, 200 -1, 900 per engine (pick-up truck -> line-haul) 4 -5 cents per gallon fuel, partially off-set by maintenance savings of ~ 1 cent per gallon Total costs are $4. 3 billion/year Health benefits The program will prevent annually: n n n Over 8, 300 premature deaths Over 750, 000 respiratory illnesses 1. 5 million lost work days 2. 6 million tons of NOx, 110, 000 tons of PM, and 17, 000 tons of toxic pollutants Monetized benefits: $70. 3 billion/year 7

HD 2007 Implementation Status n HD Engine Manufacturers on track for 2007 n Proven technologies selected for 2007 n n n PM filters to meet the 0. 01 g/bhp-hr PM std Incremental improvements of 2004 NOx technologies to meet 1. 2 g/bhp-hr averaging standard Prototype vehicles being demonstrated today Customer fleet testing in 2005 EPA will continue to monitor this progress n n Additional progress review reports Beginning work to ensure smooth implementation and certification processes for 2007 8

Smart. Way Transport Partnership Overview U. S. EPA 9

Introduction to Smart. Way Transport Partnership • Voluntary partnership with the ground freight industry • Challenges companies to improve the environmental performance of their freight operations • Currently, truck and rail: –Travel over 200 billion miles –Consume over 35 billion gallons of fuel –Account for nearly 20% of transportation related energy use –Produce approximately 350 million metric tons of CO 2 –Will increase dramatically over the next decade ØFaster delivery schedules ØIncreasing internet sales 45 Billion Gallons 35 Billion Gallons 2003 2012 10

Introduction to the Smart. Way Transport Partnership • Emission Reduction Goals – – – • 150 million barrels of oil each year (12 million cars off the road) 33 million metric tons CO 2 annually by 2012 200, 000 tons NOx annually, plus PM and air toxics benefits Three major Smart. Way Transport components: – Corporate Partnerships Ø – National Transportation Idle-Free Corridors Ø – 92 freight shippers and carriers in 24 States and Canada 42 idle reduction projects nationally Rail/Intermodal (Still Developing) Ø Demonstration projects for idling locomotives in Chicago and Vancouver 11

Current Smart. Way Transport Partners Carriers Fed. Ex Express* Metropolitan Trucking HEB Grocery* Inc. Burns Motor Freight, Inc. Southeastern Freight Lines Knight Transportation Roadway Express* Texas DOT Dennis K. Burke, Inc. Schneider National, Inc. * Texas Star Express H. O. Wolding Company Swift Transportation* TP Freight Lines United Parcel Service* CSX* Yellow Transportation* Braun’s Express Shippers American Cartage GI Trucking Company The Home Depot* Averitt Express Arnold Transportation Services Dell Bison Transport America Estes Express Camionage C. P. Inc. Vitran Logistics Commercial Transportation Volvo Logistics North Michelin North America AMI Leasing Canon, Inc. * FMI International Arnold Transportation Services International Motor Freight Bridgestone/Firestone N. American Tire IKEA* Lakeville Motor Express Cardinal Logistics Management Mc. Kelvey Trucking Company H-E-B* Interface* Coca-Cola Enterprises, Inc. Paschall Truck Lines Inc Central Freight Lines DHL Technologies Fed. Ex Freight Idle. Aire Technologies Interstate Distributor Co. J. B. Hunt Transport USA Cartage Vaughan Transportation Container Freight EIT Nike* Norm Thompson* Clean Diesel 12

Current Smart. Way Transport Partners Since February 2004, 92 companies have joined the partnership. 13

Smart. Way. SM Idle-Reduction Projects by EPA Region Active Projects Developing Projects as Result of $1 M in Grants 14

How Do Shippers and Carriers Become Partners? • Within first 3 year phase, shippers are required to: – Commit to ship over 50% of goods with Smart. Way carriers – Assess and commit to improve their facility emissions – – • Forklifts, generators, loaders Truck idling at warehouses Within first 3 year phase, carriers are required to: – – Commit to improve that performance within 3 years – • Measure current environmental performance with FLEET Model Sign Partnership Agreement and report annual progress Carriers and Shippers can use the EPA Smart. Way logo when they can demonstrate superior environmental performance as defined by EPA. 15

What is Superior Environmental Performance? No environmental strategies 16

What is Superior Environmental Performance? No environmental strategies: Effect of adding strategies: - Speed @ 62 mph - Eliminate Idling - Aerodynamics - Double trailers 17

What is Superior Environmental Performance? 40% Effect of adding strategies: - Speed @ 62 mph - Eliminate Idling - Intermodal use - Auto tire inflation - Synthetic lubes - Aerodynamics - Double trailers - Weight reduction - Super single tires - Engine upgrades 18

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Environmental Challenge of Idling Long-duration truck and locomotive idling contributes significantly to air pollution and fuel waste Diesel fuel consumption: CO 2 emissions: NOx emissions: Trucks 1 billion gal/yr 11 million tpy 180, 000 tpy Locomotives 68 million gal/yr 800, 000 tpy 20, 000 tpy Idle-free transportation corridors address this challenge • • • Deploy idle-reduction technologies along major interstates, at truck stops, freight hubs, rail yards, ports, and borders Issue guidance for States to quantify and use emission benefits from idle reductions in air quality plans Promote idle-reduction deployment with testing, contracts & grants 25

National Transportation Idle-Free Corridors • New EPA guidance allows credit in SIPs and conformity for truck and locomotive idle reduction projects • Funding Opportunities: – – • EPA $1 million Grant Program to States and non-profits DOT Congestion Mitigation and Air Quality DOE Clean Cities Grant Program DOT State Infrastructure Bank EPA, DOT, & ATA’s Truck Maintenance Council are developing national electrical standards for truck stop electrification 26

Contact the Smart. Way Transport Partnership Team Contact Info: www. epa. gov/smartway_transport@epa. gov (734) 214 -4767 27

Addressing diesel emissions from existing heavy-duty fleets • The Retrofit program deals with existing, in-use engines today • Existing diesel engines can last 20 -35 years • 2007 Highway & Proposed Nonroad rules address only future engines • A voluntary program designed to: • Retrofit - install pollution-reducing technology on existing diesel vehicles and equipment • Replace existing engines with cleaner ones (CNG/Diesel) • Reduce idling • The program is building a market for clean diesel concepts • Accelerating the delivery of Ultra Low Sulphur Diesel • Forging business partnerships and relationships 28

ULSD Availability 29

OTAQ Funded Retrofit Projects 30