National Clean Diesel Campaign

1. National Clean Diesel Campaign Projects, Programs and Funding Southeast Diesel Collaborative Conference Atlanta, Georgia April 26-27, 2006 Sally Newstead National Clean Diesel Campaign Office of Transportation and Air Quality

2. Presentation Overview • Diesel Engines & Emissions • Overview of the NCDC • Program Successes • Costs and Benefits • NCDC Funding, Energy & Transportation Bills

3. Diesel Engines & Emissions • Reducing emissions from diesel engines is one of the most important air quality challenges facing the country • Even with more stringent standards set to take effect in the next decade, over the next 20 years, millions of in-use engines will continue to emit large amounts of pollution • This pollution will continue to contribute to numerous instances of premature mortality, asthma attacks, lost work days and many other health impacts

4. school bus other highway school bus other highway 1% 3% 2% 3% ports ports transit transit 4% 5% 0% 1% other nonroad 4% other nonroad freight 9% agriculture 32% 8% non-port marine 9% freight construction 56% 11% non-port marine agriculture construction 13% 19% 21% Mobile Source Diesel Emissions Inventory by Sector (2004) NOx (6.3 million tons) PM 2.5 (305,000 tons)

5. Overview of National Clean Diesel Campaign • Regulations for new engines • Heavy-Duty Highway • Nonroad • Light-duty Tier 2 • Upcoming standards for Marine/Locomotives • Future Sulfur Emission Control Area & International Maritime Organization/Ships • Voluntary Programs to address existing diesel fleet • Clean School Bus USA • Clean Ports USA • Clean Construction USA • Clean Air Agriculture • SmartWay Transport

6. Regulatory StrategyStandards for New Engines Diesel engines in all mobile source applications -- • Regulations adopted; now focused on implementation: • Rulemakings underway for: • Current Regulations • Very large public health and environmental benefits will result: • By 2030, PM reduced by ~250,000 tons/year, NOx by ~4 million tons/year • Annual benefits expected to exceed $150 billion versus costs of approximately $7 billion • 15 ppm sulfur cap gets immediate PM and SOx reductions from existing fleet of diesels • Highway (2006) • Nonroad (500 ppm in 2007, 15 ppm in 2010) • Locomotive and marine (500 ppm in 2007, 15 ppm in 2012) Heavy-duty trucks & buses Nonroad machines Light-duty vehicles Ocean-going ships Locomotives Marine vessels

7. Voluntary Program Strategy • Goal: reduce emissions from the legacy fleet of over 11 million diesel engines by 2014 • Focus on five sectors: • School Buses • Ports • Construction • Agriculture • Freight • Program activities: • Technology verification • Providing technical and policy analysis • Coalition-building and outreach • Establishing projects through grant competitions

8. Focus on Key Sectors • We chose sectors based on: • Levels of emissions • Public health impacts • Non-attainment zones • Proximity to sensitive populations • Cost-effectiveness of reduction strategies • Timely opportunities • e.g. Expansion of ports and major road construction • Support from stakeholders and the public

9. Sector-Based Programs • Clean School Bus USA • Aims to modernize 100% of the nation’s school bus fleet by 2010 • Clean Ports USA • Encourages port authorities and terminal operators to reduce emissions and provide economic incentives to operate more efficiently • Clean Construction USA • Encourages reducing emissions from major public and private construction projects in non-attainment areas • SmartWay Transport Partnership • Challenges freight companies to improve the environmental performance of their fleets • Clean Air Agriculture (newest sector) • Promotes biofuels/renewables & retrofit in farming • communities in non-attainment areas in partnership with USDA

10. What is the SmartWay Transport Partnership? • Voluntary partnership between EPA and the freight industry: • Developed jointly by EPA and 15 Charter Partners • Freight industry interests: reduce fuel consumption, public recognition, improved public image • EPA interests: reduced emissions (CO2, NOx, PM) and improved energy security • Open to companies of all sizes • Major Program Components: • Corporate Partnerships • National Transportation Idle-Free Corridors • Rail/Intermodal • Innovative Financing

11. Program Successes • Over 600 Partners • 20 States (and DC) using ULSD early • Over 200,000 engines are being retrofitted • 17 emissions control technologies verified • Partners have contributed significant resources • Over 2 external dollars for every 1 federal dollar invested • States have established programs with funding > $400M • Specifically, • As a result of Clean School Bus USA: • Over 2 million children in 150 school districts are riding approx. 20,000 cleaner buses • As a result of SmartWay Transport: • 53 idle reduction projects are in place along major interstate corridors (I-95, I-40, I-5, I-35, I-10, I-85) • 381 Total Partners

12. NCDC Projects to Date

14. Costs and Benefits • Clean diesel voluntary programs currently underway will: • Reduce over 20,000 tons of PM • Provide nearly $5 billion in health benefits • Provide a benefit-to-cost ratio of up to 13:1 • Technology Costs/Benefits • Aftertreatment (DOC, DPF) $500 - $8000 • 20-90% PM reduction • Crankcase filtration ~ $500 • 5-10% PM reduction

15. Federal FundingNational Clean Diesel Campaign • 2005 National Clean Diesel Campaign Grants • $7.5 Million for Clean School Bus. 37 grants awarded. • 172 applications (up from 103 in 2003) from 36 states • Requested $50 million • $1.1 for ports & construction. 10 grants awarded. • 25 applications from 16 states • Requested $4 million • 2005 SmartWay Transportation • $5 Million for idle reduction demonstration projects. 5 grants awarded. • FY06 budget • $5 Million for National Clean Diesel Campaign • $7 Million for Clean School Bus grants • Funding will be distributed through EPA’s Regional Clean Diesel Collaborative network • FY07 budget • President requested $50 million to support clean diesel activity

16. Future Federal Funding: Energy and Transportation Bills Overview • Authorized Funding – Energy Policy Act Diesel Emission Reduction Act (DERA) • $1 Billion over 5 years • Expect to fund 150-200 projects • 70% of the funds to be distributed by EPA in National Grants and Loans • 20% of the funds to establish State grant/loan programs • An optional 10% of the funds can be used to increase state allocations for states that match federal funds Fleet Modernization • $100 Million over 3 years (focus on ports) Clean School Bus • $110 Million over 2 years with more funds thru FY2010 • Expect to fund 40 - 75 projects Idle Reduction • $140 Million over 3 years for idle reduction

17. Future Federal Funding: Energy and Transportation Bills Overview • Transportation Bill - • Congestion Mitigation and Air Quality (CMAQ) • Priority for diesel retrofits in construction • In partnership with DOT, EPA must provide guidance to states on effectiveness of technologies and strategies • $1.7 Billion per year for 6 years

18. For More Information Visit EPA’s National Clean Diesel Campaign Website www.epa.gov/cleandiesel Visit EPA’s SmartWay Transport Partnership Website www.epa.gov/smartway/ The Southeast Diesel Collaborative Website will be available soon at www.southeastdiesel.org