Employer Options for Improving Air Quality

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Employer Options for Improving Air Quality

• Alan Jones
• Tennessee Department of
• Environment and Conservation

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The Challenge

• About 3.8 million people in state ozone
  nonattainment areas
• EPA rules will reduce emissions but not enough
  for urban areas
• More reductions needed from
• Diesel trucks, SUVs, and cars
• Construction equipment
• Gas-powered lawn equipment

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Crucial For Success

• Many different measures needed
• No silver bullet
• No single sector can do it alone
• We all must do our part
• All levels of government
• Business and industry
• Citizens

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Employers - Essential Clean Air Partners

• Community leadership
• Unique relationship with employees
• Efficient message delivery
• Employees pay more attention

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Employer Options To Reduce Emissions

• Trip reduction programs
• Commute benefits for employees
• Air quality action alerts
• Operations and maintenance
• Energy efficiency/green power
• Cleaner fuels/vehicles for fleets
• Urban forestry

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Commuting and Employees

• Nearly 50 of workers describe their commute as
  unsatisfying or stressful
• 36 say they would take a 10 pay cut or more for
  a shorter commute
• 2001 Career Builder Survey, HR Magazine, October
  2001

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Establish A Trip Reduction Program

• Reduce frequency that employees drive alone
• Make transportation alternatives easier to use
• Transit, vanpools, carpools, walk, bike, telework

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Trip Reduction Actions

• Establish employee rideshare program
• Provide lunch options onsite
• Offer telework option
• Adopt flextime policy and alternative work
  schedules

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Encourage Use Of Transportation Alternatives

• Offer commuter benefits
• Employees with commuter benefits are 8 times more
  likely to use transit
• 2001 Xyla Survey
• With good commuter benefits, 10 to 30 of
  employees will shift transportation modes

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Commute Benefits For Employees

• TEA-21 (title 9, section 910, PL 105-178)
• Section 132(f) - Qualified Transportation Fringe
  Benefits
• Benefit options for transit, vanpools and parking
  cash out
• Requires employer involvement

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Transit Passes

• Up to 100/month to commute by
• Transit
• Eligible vanpools
• No payroll or income tax on benefit
• Employer tax deduction
• Completely tax-free for employees

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Commute Benefits Tax Savings Make a Difference
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Commute Benefits Tax Savings Make a Difference
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Commute Benefits Tax Savings Make a Difference
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Pre-Tax Benefits

• Allow employees to set aside pre-tax income up to
  100/month for
• Transit
• Eligible vanpools
• Employee saves payroll and income taxes
• Employers save payroll taxes

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Potential Annual Cost and Savings for Pre-Tax
Payroll Deduction
W-2 is reduced by 1,200 (Employee sets aside
100/month)
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Cash In-lieu Of Parking

• Parking cash out - employees agree not to park
• In return, they receive
• Cash value of parking space (taxable) OR
• Transit or vanpool pass (nontaxable)
• Save money with fewer employee parking spaces

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Best Workplaces For CommutersSM

• EPA program recognizes employers that meet a
  National Standard of Excellence for commute
  benefits
• Goal - 14 of employees non-SOV
• 14 do something other than drive to work alone
  (transit, carpool, telework, etc.)

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Air Quality Alert Days

• Public education on air quality
• How government, business and citizens can help
• Ozone forecasting
• Alerts when high levels predicted
• Community action

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Employers and Air Quality Alert Programs

• Get involved in regional effort Clean Air
  Nashville
• Inform the public about clean air
• Publicize ozone alerts
• Develop air quality action plan for high ozone
  days

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Operations Maintenance

• Reduce use of gasoline and diesel engines (e.g.,
  less mowing)
• Develop anti-idling policy
• Delay refueling until after 7 p.m.
• Keep engines well-tuned
• Reduce use of paint sprayers
• Shift to water-based paints

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Energy Efficiency

• Energy audits
• Performance contracting
• Building energy improvements
• Lighting upgrades
• Energy-efficient equipment
• Support Green Power

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Cleaner Fuels and Vehicles

• For existing fleets
• Use cleaner alternative fuels (biodiesel,
  ethanol, natural gas, propane)
• Use cleaner traditional fuels (ultra-low sulfur
  diesel fuel)
• Add emission control devices (retrofits) to
  diesel engines

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New Fleet Vehicles

• Purchase cleaner vehicles and equipment
• Alternative fuel vehicles (AFVs)
• Hybrid-electric vehicles (e.g., Toyota Prius,
  Honda Civic Hybrid)
• Cleaner diesel engines (in 2007)
• Propane commercial lawn mowers
• Electric forklifts

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Urban Forestry

• Trees provide air quality benefits
• Cooling effect of their shade
• Reduces evaporative emissions
• Reduces power generation
• Reduces ozone formation
• Trees sequester certain pollutants
• Ozone, NOx, particulate matter

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Web Resources

• www.tdec.net/apc/eac
• Ozone Early Action Compacts
• www.cleanairnashville.org
• Middle TN air alert program
• www.bwc.gov
• Best Workplaces for Commuters
• www.afdc.doe.gov
• Alternative Fuels Data Center

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For More Information
Alan Jones, Senior Policy Analyst Tennessee
Department ofEnvironment and Conservation Phone
615-253-1436 Email Alan.Jones_at_state.tn.us