SmartWay Transport Partnership

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

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Emission Standards for New Highway Heavy Trucks
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Growth Threatens to Offset Gains from Cleaner
Vehicles
Source U.S. Department of Transportation
Bureau of Transportation Statistics
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EPA Clean Diesel Partnerships

• Sectors
• Marine Ports
• Construction
• School buses
• Freight
• Agriculture
• Objective Reduce emissions from the over 11
  million engines in use

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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.

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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

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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

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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

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Benefits for the Environment

• 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

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Partner Commitments to Date

• 882 Partners
• Companies include trucking fleets, shippers,
  rail road companies, logistics companies,
  affiliates, truck stops.

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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

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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

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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

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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

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Technology that Pays for Itself

• Assume 100,000 miles/year _at_ 6 mpg 16,667
  gallons/year
• Fuel savings 2,833 gallons _at_4.00/gallon
  11,332/year
• Payback 1.5 years 16,500/11,332
• Or can do a five year loan _at_ 12 APR

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SmartWay Finance Center Banks Competing for
Loans

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Other Financing OptionsNational 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

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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

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The SmartWay Truck
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SmartWay Passenger Vehicles

• Web site, point of sale, manufacturer
  advertising, and PSA
• Rental/leasing companies offer SmartWay cars in
  their green collection

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Innovative Ways to Reach End-users
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New PSA Campaign
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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

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Greening the Supply Chain
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EPA Supply Chain Model - Concept
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SmartWay Program Results
After just 4 years, SmartWay and our 882 partners
have committed to achieve the following annual
reductions

• gt530M gallons fuel
• 5.9M tons less CO2
• 34K tons less NOx
• 936 tons less PM

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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

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Questions? Thank you!

• Cheryl L. Bynum
• Technology and Fuels Team Lead
• SmartWay Transportation Partnership
• 734-214-4844
• Bynum.cheryl_at_epa.gov
• www.epa.gov/smartway