2007 Heavy-duty Highway & Nonroad Tier 4 Programs

1. 2007 Heavy-duty Highway & Nonroad Tier 4 Programs Office of Transportation and Air Quality October 24, 2004

2. Key Elements of HD2007 Fuel Program • Reduces diesel fuel sulfur levels nationwide • Enables use of advanced emission control technology • Highway diesel fuel sulfur cap of 15 ppm • 80% by 2006 • 100% by 2010 • Flexibility for small and Western refiners

3. Key Elements of HD2007 Engine & Vehicle Program • Applies new NOx and PM standards to heavy-duty engines and vehicles • 90%+ emission reductions—gasoline-like levels • Based on high efficiency emission control devices (like passenger vehicle catalysts) • 0.01 g/bhp-hr PM standard in 2007 • Phase-in of 0.2 g/bhp-hr NOx standards 2007-2010 • Incentives for early technology introduction

4. 2006 2007 2008 2009 2010 2011 2012 PM 100% at 0.01 g/hp-hr 50% at 0.20 g/hp-hr NOx 100% at 0.20 g/hp-hr 80% at 15 ppm maximum sulfur Fuel 100% at 15 ppm (under temporary compliance option) Heavy-duty 2007: Basic Program Requirements

5. without new standards with new standards Calendar Year Nationwide Heavy-Duty NOx Emissions

6. without new standards with new standards CalendarYear Nationwide Heavy-Duty PM Emissions

7. Costs and Benefits of 2007 Program • Compliance costs Long-term Costs: • Estimated at $1,200-1,900 per engine (pick-up truck -> line-haul) • 4-5 cents per gallon fuel, partially off-set by maintenance savings of ~ 1 cent per gallon • Total costs are $4.3 billion/year • Health benefits The program will prevent annually: • Over 8,300 premature deaths • Over 750,000 respiratory illnesses • 1.5 million lost work days • 2.6 million tons of NOx, 110,000 tons of PM, and 17,000 tons of toxic pollutants • Monetized benefits: $70.3 billion/year

8. HD 2007 Implementation Status • HD Engine Manufacturers on track for 2007 • Proven technologies selected for 2007 • PM filters to meet the 0.01 g/bhp-hr PM std • Incremental improvements of 2004 NOx technologies to meet 1.2 g/bhp-hr averaging standard • Prototype vehicles being demonstrated today • Customer fleet testing in 2005 • EPA will continue to monitor this progress • Additional progress review reports • Beginning work to ensure smooth implementation and certification processes for 2007

9. SmartWay Transport Partnership Overview U.S. EPA

10. Introduction to SmartWay Transport Partnership • Voluntary partnership with the ground freight industry • Challenges companies to improve the environmental performance of their freight operations • Currently, truck and rail: • Travel over 200 billion miles • Consume over 35 billion gallons of fuel • Account for nearly 20% of transportation related energy use • Produce approximately 350 million metric tons of CO2 • Will increase dramatically over the next decade • Faster delivery schedules • Increasing internet sales 45 Billion Gallons 2012 35 Billion Gallons 2003

11. Introduction to the SmartWay Transport Partnership • Emission Reduction Goals • 150 million barrels of oil each year (12 million cars off the road) • 33 million metric tons CO2 annually by 2012 • 200,000 tons NOx annually, plus PM and air toxics benefits • Three major SmartWay Transport components: • Corporate Partnerships • 92 freight shippers and carriers in 24 States and Canada • National Transportation Idle-Free Corridors • 42 idle reduction projects nationally • Rail/Intermodal (Still Developing) • Demonstration projects for idling locomotives in Chicago and Vancouver

12. Current SmartWay Transport Partners Carriers FedEx Express* Metropolitan Trucking Burns Motor Freight, Inc. HEB Grocery* Southeastern Freight Lines Knight Transportation Inc. Roadway Express* Texas DOT Dennis K. Burke, Inc. Schneider National, Inc.* Texas Star Express H.O. Wolding Company Swift Transportation* TP Freight Lines United Parcel Service* CSX* Yellow Transportation* Braun’s Express Shippers American Cartage GI Trucking Company The Home Depot* Averitt Express Arnold Transportation Services Dell Bison Transport Estes Express Volvo Logistics North America Camionage C.P. Inc. Vitran Logistics Michelin North America Commercial Transportation AMI Leasing Canon, Inc.* FMI International Arnold Transportation Services H-E-B* International Motor Freight Bridgestone/Firestone N. American Tire IKEA* Lakeville Motor Express Cardinal Logistics Management Interface* McKelvey Trucking Company Coca-Cola Enterprises, Inc. Nike* Paschall Truck Lines Inc Central Freight Lines Norm Thompson* DHL FedEx Freight Clean Diesel Technologies IdleAire Technologies Interstate Distributor Co. J.B. Hunt Transport USA Cartage Vaughan Transportation Container Freight EIT New England Motor Freight JK Trucking J&J Industries Hudson’s Bay Company * notes Charter Partner

13. Current SmartWay Transport Partners Since February 2004, 92 companies have joined the partnership.

14. SmartWaySM Idle-Reduction Projects by EPA Region Active Projects Developing Projects Developing Projects as Result of $1M in Grants

15. How Do Shippers and Carriers Become Partners? • Within first 3 year phase, shippers are required to: • Commit to ship over 50% of goods with SmartWay carriers • Assess and commit to improve their facility emissions • Forklifts, generators, loaders • Truck idling at warehouses • Within first 3 year phase, carriers are required to: • Measure current environmental performance with FLEET Model • Commit to improve that performance within 3 years • Sign Partnership Agreement and report annual progress • Carriers and Shippers can use the EPA SmartWay logo when they can demonstrate superior environmental performance as defined by EPA.

16. What is Superior Environmental Performance? No environmental strategies

17. What is Superior Environmental Performance? • Effect of adding strategies: • Speed @ 62 mph - Aerodynamics - Eliminate Idling - Double trailers No environmental strategies:

18. What is Superior Environmental Performance? 40% • Effect of adding strategies: • Speed @ 62 mph - Aerodynamics - Eliminate Idling - Double trailers - Intermodal use - Weight reduction - Auto tire inflation - Super single tires - Synthetic lubes - Engine upgrades

25. Environmental Challenge of Idling • Long-duration truck and locomotive idling contributes significantly to air pollution and fuel waste • TrucksLocomotives • Diesel fuel consumption: 1 billion gal/yr 68 million gal/yr • CO2 emissions: 11 million tpy 800,000 tpy • NOx emissions: 180,000 tpy 20,000 tpy • Idle-free transportation corridors address this challenge • Deploy idle-reduction technologies along major interstates, at truck stops, freight hubs, rail yards, ports, and borders • Issue guidance for States to quantify and use emission benefits from idle reductions in air quality plans • Promote idle-reduction deployment with testing, contracts & grants

26. National Transportation Idle-Free Corridors • New EPA guidance allows credit in SIPs and conformity for truck and locomotive idle reduction projects • Funding Opportunities: • EPA $1 million Grant Program to States and non-profits • DOT Congestion Mitigation and Air Quality • DOE Clean Cities Grant Program • DOT State Infrastructure Bank • EPA, DOT, & ATA’s Truck Maintenance Council are developing national electrical standards for truck stop electrification

27. Contact the SmartWay Transport Partnership Team Contact Info: www.epa.gov/smartway smartway_transport@epa.gov (734) 214-4767

28. Addressing diesel emissions from existing heavy-duty fleets • The Retrofit program deals with existing, in-use engines today • Existing diesel engines can last 20-35 years • 2007 Highway & Proposed Nonroad rules address only future engines • A voluntary program designed to: • Retrofit - install pollution-reducing technology on existing diesel vehicles and equipment • Replace existing engines with cleaner ones (CNG/Diesel) • Reduce idling • The program is building a market for clean diesel concepts • Accelerating the delivery of Ultra Low Sulphur Diesel • Forging business partnerships and relationships

29. ULSD Availability

30. OTAQ Funded Retrofit Projects