Employer Options for Improving Air Quality

1. Employer Options for Improving Air Quality Alan Jones Tennessee Department of Environment and Conservation

2. The Challenge • About 3.8 million people in state ozone nonattainment areas • EPA rules will reduce emissions but not enough for urban areas • More reductions needed from • Diesel trucks, SUVs, and cars • Construction equipment • Gas-powered lawn equipment

3. Crucial For Success • Many different measures needed • No silver bullet • No single sector can do it alone • We all must do our part • All levels of government • Business and industry • Citizens

4. Employers - Essential Clean Air Partners • Community leadership • Unique relationship with employees • Efficient message delivery • Employees pay more attention

5. Employer Options To Reduce Emissions • Trip reduction programs • Commute benefits for employees • Air quality action alerts • Operations and maintenance • Energy efficiency/green power • Cleaner fuels/vehicles for fleets • Urban forestry

6. Commuting and Employees • Nearly 50% of workers describe their commute as unsatisfying or stressful • 36% say they would take a 10% pay cut or more for a shorter commute • 2001 Career Builder Survey, HR Magazine, October 2001

7. Establish A Trip Reduction Program • Reduce frequency that employees drive alone • Make transportation alternatives easier to use • Transit, vanpools, carpools, walk, bike, telework

8. Trip Reduction Actions • Establish employee rideshare program • Provide lunch options onsite • Offer telework option • Adopt flextime policy and alternative work schedules

9. Encourage Use Of Transportation Alternatives • Offer commuter benefits • Employees with commuter benefits are 8 times more likely to use transit • 2001 Xyla Survey • With good commuter benefits, 10% to 30% of employees will shift transportation modes

10. Commute Benefits For Employees • TEA-21 (title 9, section 910, PL 105-178) • Section 132(f) - Qualified Transportation Fringe Benefits • Benefit options for transit, vanpools and parking cash out • Requires employer involvement

11. Transit Passes • Up to $100/month to commute by • Transit • Eligible vanpools • No payroll or income tax on benefit • Employer tax deduction • Completely tax-free for employees

12. Commute Benefits: Tax Savings Make a Difference

13. Commute Benefits: Tax Savings Make a Difference

14. Commute Benefits: Tax Savings Make a Difference

15. Pre-Tax Benefits • Allow employees to set aside pre-tax income up to $100/month for • Transit • Eligible vanpools • Employee saves payroll and income taxes • Employers save payroll taxes

16. Potential Annual Cost and Savings for Pre-Tax Payroll Deduction W-2 is reduced by $1,200 (Employee sets aside $100/month)

17. Cash In-lieu Of Parking • Parking cash out - employees agree not to park • In return, they receive • Cash value of parking space (taxable) OR • Transit or vanpool pass (nontaxable) • Save money with fewer employee parking spaces

18. Best Workplaces For CommutersSM • EPA program recognizes employers that meet a National Standard of Excellence for commute benefits • Goal - 14% of employees non-SOV • 14% do something other than drive to work alone (transit, carpool, telework, etc.)

19. Air Quality Alert Days • Public education on air quality • How government, business and citizens can help • Ozone forecasting • Alerts when high levels predicted • Community action

20. Employers and Air Quality Alert Programs • Get involved in regional effort – Clean Air Nashville • Inform the public about clean air • Publicize ozone alerts • Develop air quality action plan for high ozone days

21. Operations & Maintenance • Reduce use of gasoline and diesel engines (e.g., less mowing) • Develop anti-idling policy • Delay refueling until after 7 p.m. • Keep engines well-tuned • Reduce use of paint sprayers • Shift to water-based paints

22. Energy Efficiency • Energy audits • Performance contracting • Building energy improvements • Lighting upgrades • Energy-efficient equipment • Support Green Power

23. Cleaner Fuels and Vehicles • For existing fleets • Use cleaner alternative fuels (biodiesel, ethanol, natural gas, propane) • Use cleaner traditional fuels (ultra-low sulfur diesel fuel) • Add emission control devices (retrofits) to diesel engines

24. New Fleet Vehicles • Purchase cleaner vehicles and equipment • Alternative fuel vehicles (AFVs) • Hybrid-electric vehicles (e.g., Toyota Prius, Honda Civic Hybrid) • Cleaner diesel engines (in 2007) • Propane commercial lawn mowers • Electric forklifts

25. Urban Forestry • Trees provide air quality benefits • Cooling effect of their shade • Reduces evaporative emissions • Reduces power generation • Reduces ozone formation • Trees sequester certain pollutants • Ozone, NOx, particulate matter

26. Web Resources • www.tdec.net/apc/eac • Ozone Early Action Compacts • www.cleanairnashville.org • Middle TN air alert program • www.bwc.gov • Best Workplaces for Commuters • www.afdc.doe.gov • Alternative Fuels Data Center

27. For More Information Alan Jones, Senior Policy Analyst Tennessee Department ofEnvironment and Conservation Phone: 615-253-1436 Email: Alan.Jones@state.tn.us