Reducing Emissions through Innovative Clean Diesel Programs

Reducing Emissions through Innovative Clean Diesel Programs Southeast Diesel Collaborative Second Annual Partners Meeting June 26-27, 2007 Lori Stewart, Deputy Director Transportation and Regional Programs Division Office of Transportation and Air Quality 1 The National Clean Diesel Campaign and SmartWay Transport Partnership • National Clean Diesel Campaign – Deploying cleaner technologies and strategies for school buses, ports, construction, agriculture and other highway and nonroad vehicles/equipment – Reduce emissions from the legacy fleet of over 11 million diesel engines by 2014 • SmartWay Transport Partnership – Creating a demand for cleaner and more energy efficient freight transportation through public-private partnerships – By 2012, the program aims to save between 3.3 and 6.6 billion gallons of diesel fuel per year which translates to eliminating between 33 - 66 million metric tons of CO2 emissions and up to 200,000 tons of NOx emissions per year 2 The National Clean Diesel Campaign - Regulations Common Aspects-• Systems approach– ULSD enables clean technologies. Very large environmental and public health benefits. Current regulations: by 2030, PM reduced by ~250,000 tons/year, NOx by ~4 million tons/year. Annual benefits are expected to exceed $175 billion versus costs of approximately $11 billion. Responsive to needs of states to meet NAAQS. Collaborative process. Highway Tier 2 Lightduty (1999) 2007/2010 Heavy-duty (2001) • • • Clean Nonroad Diesel (2004) • Locomotive/Marine Proposed April 2007 PM reduced by ~250,000 tons/year, NOx by ~4 million tons/year. Nonroad 3 NCDC/SmartWay Program Highlights • To date, non-regulatory programs have resulted in: – Emission reductions: nearly 30,000 tons PM, over 215,000 tons NOx – 3.97 Million tons CO2/year (~.358 billion gallons of diesel/year) – Over $5 billion in health benefits over the life of these programs • Technical Support – New nonroad verifications, 27 technologies now on EPA’s verified list – In-use testing results: technologies effective in the field – Fuel saving technology verification • Release of the SmartWay Tractor and Trailer specifications • Currently developing the first Heavy-duty fuel economy testing protocol – Diesel Emissions Quantifier (web-based calculator released) – Support to states developing clean diesel programs 4 NCDC/SmartWay Program Highlights • Financing/Funding – Competed and awarded ~$40 million since 2003, resulting in about 175 EPA diesel grants – Innovative Financing Programs • Recruiting Partners – Recruited over SmartWay 500 partners, both shippers and carriers, making corporate-wide commitments • Marketing/Communications (PSAs) – Received over $13 million in SmartWay pro bono ad placements (television, print, airports) – SmartWay Excellence Awards – recognizing our high performing partners – Fall release of Magic School Bus children’s book • Launched Smartway Grow and Go - Biofuels 5 EPA Greenhouse Gas Rulemaking • • • Recent US Supreme Court decision in Mass. v. EPA has caused EPA to begin consideration of regulatory action GHGs are pollutants under the Clean Air Act – CO2, CH4, HFCs, N20 Focus on transportation sector – Passenger cars and light trucks • Proposal will also include fuels program – Starting point is President’s “Twenty in Ten” announcement • 35 B gallons of renewable and alternative fuel by 2017 • Improve efficiency of cars and light trucks by 4 % per year • Looking at entire range of issues and analyses, including feasibility, costs, program structure, emissions credit systems, technology pathways, and biofuels modeling Working with DOE, USDA, and NHTSA on proposal targeted for the end of this year – Executive Order 13,432 guiding interagency process 6 • SmartWay Grow & Go • Launched in October, 2006 at the Future Farmers of America National Convention • Goal - 25 percent of SmartWay Transport partners using renewable fuels by 2012, and 50 percent by 2020 • Grow & Go was a participant in the annual Ethanol Summit hosted by the Ethanol Promotion and Information Council (EPIC) in May of 2007 • First wave of Biofuels Companies to be showcased at Dallas truck show this summer • NCDC also promotes biofuels as retrofit strategy 7 SmartWay Innovative Financing Strategies Support Both Fuel Efficiency and Emissions Reduction • Goal: Create innovative and sustainable financing for energy efficient and emission control technologies – Smaller fleets cannot afford the upfront cost of even the most costeffective technologies with very quick paybacks (2 years or less) • Phase 1: SmartWay Loan for Energy Saving Devices – – – Lower interest rates (for owner-operators) and flexible terms Finance fuel saving strategies only (e.g., idle reduction devices, tractor/trailer aerodynamics, low-rolling resistance tires, automatic tire inflation) Difficult to finance emission control devices • Phase 2: SmartWay ‘Plus’ Loan for cleaner trucks – – – – Very low interest rates (4%-6%) Finance purchase of used trucks with verified emission controls Environmental control = Better financing rates and/or terms Make trucks with emission control devices less expensive than those without 8 CMAQ Funded Programs • CMAQ eligibility includes: – Replacement, repowering, rebuilding, advanced emission control technologies, cleaner fuels (in limited scenarios), idle reduction technologies and outreach activities On-road fleets such as school buses, trucks and transit fleets are eligible as well as construction equipment used in transportation projects. Tennessee DOT & Diesel Workgroup recently recognized by SEDC and EPA for using CMAQ funding for nonroad and locomotive clean diesel activity CMAQ funds are instrumental in leveraging funding by other partners for projects. – Example: $22.5 M dedicated by Massachusetts to equip 8,400 public school buses and transit buses with pollution control technology. This includes $18M in CMAQ funds. – Example: $105 K received by Rogue Disposal & Recycling, Inc. in OR from the Rogue Valley COG for the retrofit of 18 waste haulers. This includes $55K in CMAQ funds. 9 • • • FY08 EPA Budget EPAct 2005: Diesel Emission Reduction Program: • President proposed $35M, nonattainment (NA) areas • House and Senate Subcommittee Marks: $50 M • Program divided into Federal and State components – 70% for federal grant/loan programs • 50% to public fleets • Funds will be distributed through RFPs by EPA Regions • Up to 10% for “emerging technologies” – 30% for State programs (not in House mark-up) • Program funding, allocations, criteria, eligibility, etc. subject to final Congressional appropriation language 10 EPA’s Clean Diesel Collaboratives • Seven regional collaboratives are highly active in promoting and deploying clean diesel programs. Northeast (R1,2) Mid-Atlantic (R3) Southeast (R4) -Midwest (R5) -Blue Skyways (R6/7) -Rocky Mountain (R8) -West Coast (R9/10) • The Southeast Diesel Collaborative has made substantial progress – Over 50% growth in partnership – Over 4500 school buses retrofitted – South Carolina legislation to retrofit all school buses – Construction equipment initiatives 11 Outlook for Innovative Clean Diesel Programs • SIP and cost-effectiveness guidance is available to quantify the emissions reductions • Substantial growth anticipated in EPA’s FY 08 Budget • More areas are using CMAQ funding for clean diesel • Successful innovative financing programs will be expanded • It’s a shared responsibility – federal, state, private, local organizations all have to do their part 12