SmartWay Transport Partnership

1. SmartWay Transport Partnership Moving Goods the “SmartWay” Saving Fuel, Money, and the Environment Sarah Froman, U.S. EPA February 25, 2008

2. The SmartWay Transport Partnership Partnership between EPA and industry stakeholders to drive demand for cleaner, more fuel-efficient transportation • 2012 Goals: • 150 million barrels of oil each year (12 million cars off the road) • 33-66 million metric tons CO2 annually • SmartWay for the Freight Sector • Capitalizing on shipper-carrier relationship to promote cost-effective strategies • idle control, single wide tires, improved aerodynamics, PM/NOx after treatment devices • Over 650 Partners committing to reduce emissions • truck and rail operators, freight shippers, logistics companies, technology vendors and manufacturers, trucks stops, ports, banks, dealer and service centers • SmartWay certified tractors and trailers • SmartWay for Consumers • www.epa.gov/greenvehicles • SmartWay certified passenger cars & light trucks • SmartWay Grow & Go – renewable fuels

3. What are the commitments? • Freight industry • Companies that own trucks, locomotives (Carriers) agree to integrate innovative fuel and emission savings technologies into their freight operations • Companies that hire Carriers (Shippers) agree to do at least 50% of their business with SmartWay Carriers >>> Carrier and Shipper partners are given a score based on performance • Tailored commitments from logistics companies, technology vendors and manufacturers, trucks stops, ports, banks, dealer and service centers • USEPA • Guidance and measurement tools • Technology research and demonstration • Project and policy facilitation • Innovative financing • Marketing and recognition

4. Idle Reduction Technologies For Trucks and Locomotives Average fuel savingsEmissions Controlled Trucks: 4 liters/hr CO2, NOx, and PM Rail: 12 - 45 liters/hr • Automatic Shut-Down/Start Up System • Battery Powered Systems • Diesel Driven Heating System • Auxiliary Power Unit/Generator Set • Truck Stop Electrification

5. Low Rolling Resistance Tires Single Wide Base and Improved Duals Average fuel savingsEmissions Controlled Trucks: 4 - 5% CO2, NOx • Single-wide tires and aluminum wheels • Reduced rolling resistance • Reduced weight • Low rolling resistance duals can be as effective as singles

6. Trailer Aerodynamics Average fuel savingsEmissions Controlled Trucks: 5% CO2, NOx • Trailer Fairings, Side-skirts • Nose Cone and Trailer Tail

7. The SmartWay Truck A SmartWay Truck is 20 to 25% more efficient than an average truck on the road today.

8. Other Strategies for Carriers • Engine efficiency (power) • Proper maintenance • Speed management • Automatic tire inflation • Low-viscosity lubricants • Driver behavior training • Better routing • Improved pickup and delivery scheduling • Weight reduction • Improved logistics e.g. fuller loads

9. GHG Inventory ToolsFLEET Model

10. Case Studies: Carrier Partners • Bison Transport’s Fuel Economy Incentive Program • All trucks (~500) equipped with onboard computer and satellite communication system enabling Bison to track each unit and driver • Fuel economy benchmark for each trailer type • Bonuses paid to drivers that exceed target • based on 3-month average fuel economy to average out weather, load, routing factors • Results: 3% fuel economy improvement • Con-Way Truckload Efficient Tire Program • Purchased 750 tractors and 100 trailers with low rolling resistance, wide-based tires (out of ~2500 tractors, 7000 trailers) • $40 incremental cost; improvement of 2/10 to 3/10 of a mile per gallon • Paid back after 2500 miles • Close to achieving 100% single-wide tires • Expected to save $4.6M per year • Styline’s Idle Reduction Program • Auxilary power units, engine shutdown devices, truck stop electrification, no idling policies in loading zones, bypassing weigh stations • Expected to save $1.3M per yer (~150 tractors, 300 trailers)

11. Shippers ship more freight with SmartWay Transport Carriers

12. No-Idling Polices at Loading Facilities

13. Intermodal Shipping

14. Other Strategies for Shippers • Driver comfort stations • Warehouse improvements • Improved pickup and delivery scheduling • Weight reduction • Improved logistics e.g. fuller loads

15. Case Studies: Shipper Partners • Ikea – 100% SmartWay Carriers (30 new SmartWay Partners) • Visits SmartWay Carriers to review strategies • Sharp Electronics Highlights • Ships 99% of freight with SmartWay carriers • No idling policy at loading docks • Reducing emissions from forklifts • Pioneering work with ocean-going vessels; (cold-ironing, speed reduction) • Lowe’s Highlights • Increased intermodal shipping by over 4000 shipments per year • Reduced 36,000 truckloads and 25 million miles per year by increasing full use of trailers

16. For More Information www.epa.gov/smartway Sarah Froman Froman.sarah@epa.gov

17. Extra Slides

18. The Transportation Sector

19. Transportation GHG Emissions Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2005 and Annex I Inventory Data submitted to the UNFCCC (see http://unfccc.int/ghg_emissions_data/items/3800.php). Note: U.S. statistics reflect GHGs from all transportation-related sources; Annex I statistics reflect only GHGs from transportation-related fuel combustion.

20. Transportation GHG Emissions GrowthFreight is Growing the Fastest U.S. GHGs by Major Source, 1990 and 2005 * 69.4% 23.3% 14.8% *Other GHGs include emissions from HFCs, which were introduced beginning in the early 1990s to replace ozone depleting substances; increase from 1990 is not meaningful. Source: U.S. EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2005

21. Freight Trucks +69.4% Light-Duty Vehicles +23.3% Commercial Aircraft +14.8% U.S. Transportation GHG Emissions Growth1990-2005 * Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2005

22. What’s Going on in the Freight Sector?

23. The Future of Freight Activity

24. World Oil Consumption from Transportation is Growing

25. Projected Growth in Transportation GHG Emissions

26. 3 Drivers of Transportation Emissions Activity levels (VMT, ton-miles) Technology (Energy Efficiency) Fuel Type

27. GHG Inventory ToolsFLEET Model

28. GHG Inventory ToolsFLEET Model

29. The Battle Against Energy Losses • Engine system (58%) • Parasitic losses (42%) • Aerodynamic drag • Rolling resistance • Drivetrain • Auxilary • Other variables • Weight • Driving behavior Source: Technology Roadmap for the 21st Century Truck Program (U.S. DOE, 2000)

30. Renewable Fuels

31. Truck Technology Package Savings Calculator

32. SmartWay Upgrade Kit Example • For a truck traveling 100,000 miles/year @ 6 mpg (16,667 gallons /year) • - Fuel savings: 2,833 gallons @ $2.50/gallon  $7,083/year • - Payback period: $16,500 / $7,083  ~2.3 years • - or a 5 year loan @ 12% APR:

33. Supply Chain Model

34. Other Supply Chain Strategies • For Ocean Going Vessels: • Cold Ironing at port • Advanced emissions controls • Retrofits for existing vessels • Low sulfur bunker fuels • Salt Water Injection • Mobile SCR • For Ports Equipment: • - Advanced technologies • - Hybrid Electrics • For Drayage trucks: • - Fleet turnover grants • - Scrappage of older trucks • - Retrofits for remaining trucks • - Idle controls • - Chassis pools

35. Strategic Marketing & Recognition Chrome Shop Mafia