Funding the Movement of Freight Towards Financial & Environmental Rewards

1. Funding the Movement of Freight Towards Financial & Environmental Rewards December 4, 2007 Canadian Association of Movers Annual Conference -Toronto, ON Lynda Harvey - FleetSmart

2. Today’s presentation: • ecoACTION • ecoENERGY for Fleets • Results

3. Canada’s GHG Emissions Distribution by Sector (2004)

4. Canada’s Transportation GHG Emissions by Mode (2004)

5. Chicken or Egg? Government concerns for – • Oil supplies • Carbon emissions • Global Climate Change

6. Chicken or Egg? General Public / Consumer concerns demonstrating – • Emerging consumer preferences for locally produced products • Consumer choices in purchasing decision

7. Voluntary Programs Little opportunity for gains from changes in structure / modal shifts, most obvious gains will come from logistics, training & technology • Utilization of trucks, truck size & capacity to cargo load • Optimizing locations where goods are produced & loaded / unloaded • Driver training • Proven vehicle technologies • Fuels

8. ecoTRANSPORT ecoFREIGHT - Joint $61m initiative with NRCan & Transport Canada • Consists of six components: • National Harmonization Initiative for the Trucking Industry (TC) • Freight Technology Demonstration Fund (TC) • Freight Technology Incentives (TC) • ecoFREIGHT Partnerships (TC) • Marine Shore Power (TC) • ecoENERGY for Fleets (NRCan)

9. ecoFREIGHT funding envelopes ■Freight Technology Demonstration Fund ($10m) Reduce GHG and air pollutant emissions by funding the demonstrating of new technologies in real world conditions ■Freight Technology Incentives ($10m) Reduce GHG and air pollutant emissions by funding the purchase & installation of proven technologies • Funding Terms: Max $500k per project, up to 50% of eligible costs limit of 50% federal funding per project – all four modes • Timeline: April 1, 2007 – March 31, 2011 Expected first round of funding Nov 1, 2007

10. Federal Strategy & Programs for Fuels Four key elements to Canada’s biofuels strategy • Regulation to establish demand • Incentive to encourage domestic production (ecoEnergy for Biofuels) • Support for deployment of next-generation technologies (NextGen Biofuels FundTM) • Support for agricultural producer participation in the production of biofuels

11. What isFleetSmart ?(ecoENERGY for fleets) A program at Natural Resources Canada to help commercial & institutional fleets reduce fuel consumption & emissions through improved energy efficient practices. Programs for on-road vehicles • Trucks – highway, forestry, urban • Bus – highway coach, transit, school buses • Urban – municipalities, utilities, light-duty fleets (ie. taxi, courier)

12. ecoENERGY for fleets FleetSmart - $22 m • Fuel Management Plans (FM101) • SmartDriver • Technology & Information Workshops • Truck Stop Idle-free Quiet Zone Campaign • U.S. Government partner - EPA - SmartWay Transport Partnership

13. Fuel Management • Fuel prices are volatile • New emissions standards are changing the engines and the fuel • The environmental impact of transportation is a concern

14. Fuel Management Plan • How do I start tracking fuel use? • What information do I need to know? • Where can I get that information? • How do I analyze it? • How do I cost my options? • How do I decide which option is best?

15. Factors for calculating GHG emissions

16. HOW BIG IS 1 TONNE OF GHG? Just picture the size of a 2-storey home

17. FleetSmart’s SmartDriver Series

18. FleetSmart con’t Maximizing on–board technologies THE DRIVER The investment in fuel-efficient technology will not pay off if the driver is not trained to drive efficiently

19. What is SmartWay Transport? • Voluntary partnership between EPA and the freight industry: (Mix of shippers, carriers, logistics companies) • Designed to create a demand for cleaner, more fuel efficient freight transportation • Add environmental performance to the list of criteria used to contract business • Developed jointly by EPA and 15 Charter Partners • EPA interests: Reduced emissions (CO2, NOx, PM) and improved energy security • Freight industry interests: Reduced fuel consumption, public recognition, improved public image, driver retention • No fees to participate • Open to companies of all sizes

20. Program Results Data tracking: • 5 – 8 % in Trucking operations & greater reductions in idle time • 5 – 8 % reduction in Transit operations • 12% reduction in School bus operations In depth study is planned

21. Program Results ETS (averages)

22. Program Resultscon’t… Transit: • System wide to date improvements are showing a 5 – 8% reduction in fuel consumption • Improved job satisfaction • Reduced hard braking therefore smoother ride for passengers; • Less stress on drives • Improved spirit of cooperation for initiative

23. Program Resultscon’t… Early School Bus indicator (B.C.): • A 12% reduction in fuel consumption via improved practices & driver training • Idling policy reduced daily idling from 110 minutes per day to 25 minutes • New policy for pre-trip & post-trip inspections • Implemented into the student school bus safety program – so students are reminding drivers!

24. TRUCK IDLING What’s your fleet’s idling average? In Canada cost of idling 150,000 trucks per day • Cost of 110 min • 1.83hr x 4 litres fuel = 7.32 ltrs x 150,000 trucks • = 1,098,000 litres • @ $0 .95 = $1,043,100.00 • Cost of 25 min • .42hr x 4 litres fuel = • 1.68 ltrs x 150,000 trucks • = 252,000 litres @ $0 .95 = $1,043,100.00 3,052 tons GHG • @ $0.95 = • $239,400.00 • 700 tons GHG

25. Speed Histogram 60 Idle Time - 57% Overall MPG - 4.59 49.7% 40 Speed Histogram 100 Idle Time - 3.5% Overall MPG - 7.76 20 80 15.2% 12.6% 60 57.2% 6.6% 6.0% 4.6% Time Hours 40 3.3% 1.3% 0.7% 0 19.9% 20 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+ Speed - mph Time Hours 6.2% 3.1% 2.3% 1.6% 2.1% 1.9% 0.6% 0.6% 0.6% 0.8% 1.2% 0.5% 0.9% 0.5% 0 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+ Speed - mph Truck Idling - Resell Situation Truck # 1 Truck # 2 Same model truck & engines, both with 650,000 km: Truck 2: Hours of service: 6601 hours Driving time: 6370 hours Idling time: 231 hours % idling time:3.5% Fuel cost: $877.80 Truck 1: Hours of service: 14,815 hours Driving time: 6370 hours Idling time: 8445 hours % idling time: 57% Fuel cost: $32,091 @ $0.95 per litre of diesel

26. Truck Idlingcon’t Truck Stop Idle-free Quiet Zone campaign Dec 1, 2007 – Feb 28, 2008 Over 60 truck stops in Canada & Region 5 of the US EPA (Mid-west states)

27. CO-BENEFITS Corporate: • Employee Retention Programs • Creates funds for reinvestment via • reduced fuel & maintenance costs • extending purchase cycle Social: • Corporate Social Responsibility trends • Reduction in emissions

28. BUY- IN • Misinformation & myths are prevalent & an impediment to the industry • Informed drivers, technicians, dispatchers, managers are more likely to change their behaviour & share with family & community

29. What do FLEETSmart Fleets have in common? • Management commitment & Action Plan • Staff education & training • Use of technology • Monitoring performance • Coaching to improve weak performers • Incentives / recognition program

30. Natural Resources Canada - FleetSmart Thank You Lynda Harvey lharvey@nrcan.gc.ca 613-947-4291