SmartWay Transport Partnership FHWA Talking Freight Seminar – April 20, 2005

1. SmartWay Transport Partnership FHWA Talking Freight Seminar – April 20, 2005

2. Why Do Companies Join the SmartWay Transport Partnership? • SAVE FUEL • SAVE MONEY • CLEAN THE AIR

3. What Partners are Saying “By designing this program, it shows me and other carriers that EPA is concerned about our business as well as clean air.” -- Rick Coomes, President, Coomes, Inc. “The very worst thing that'll happen to you is you'll save fuel, which means you'll make more money.” -- Dave Berry, Vice Pres., Swift Transportation “SmartWay Transport offers opportunities to learn and lead the way toward a clean transportation future” -- Charles Butt, Chairman and CEO, H-E-B Grocery Co.

4. What Partners are Saying “As a responsible member of the communities in which we operate and as a desirable employer, we view the SmartWay Transport Partnership as an integral part of our operations.” -- Dennis Damman, Dir. of Engineering, Schneider National Inc. “SmartWay provides another way to push ourselves to meet, and exceed . . . company goals.” -- Mike Herr, Vice President of Environmental Affairs, UPS “We believe that cooperative initiatives, such as SmartWay Transport, are an important step toward measuring and reducing our environmental ground transportation footprint.” -- Michael Bertolucci, Senior Vice President, Interface, Inc.

5. What is the SmartWay Transport Partnership? • Launched February 9, 2004 • 3 Major SmartWay Transport Components: • Corporate Partnerships – carriers and shippers working to reduce fuel consumption and emissions. • National Transportation Idle-Free Corridors – goal to eliminate unnecessary idling along major transportation routes. • Rail/Intermodal (still developing) – promote greater use of appropriate intermodal strategies.

6. What is the SmartWay Transport Partnership? • Voluntary partnership between EPA and the freight industry: • Developed jointly by EPA and several carriers and shippers, including Schneider, Swift, Yellow Roadway, UPS, Fedex, Coca Cola, Home Depot, and IKEA. • Freight industry interests: reduce fuel consumption, public recognition, improved public image. • EPA interests: reduced emissions (CO2, NOx, PM) and improved energy security. • Work closely with State Trucking Associations to get the word out to trucking companies.

7. The Charter Partners Norm Thompson Outfitters

8. Partial List of SmartWay Transport Partners

9. SmartWay Transport Partners (as of April 4, 2005) Headquarters locations of 126 SmartWay Transport Partners by EPA Region

10. How Does the Partnership Work? • Carriers: • Join the Partnership and agree to work toward improved efficiency and reduced fuel consumption over a 3 year period. • Shippers: • Join the Partnership and agree to work toward shipping more of their product with SmartWay Carrier Partners, as well as improving their operations over a 3 year period.

11. How Can Carriers Achieve Savings and Meet Goals? Idle Reduction

14. Idle-Reduction StrategiesDirect-Fired Heaters and APUs

15. How Can Carriers Achieve Savings and Meet Goals? Idle Reduction Single Wide Tires

18. How Can Carriers Achieve Savings and Meet Goals? Idle Reduction Single Wide Tires Improved Aerodynamics

19. Trailer Aerodynamics

20. Trailer Aerodynamics

21. Gap Fairing Rear Fairing Belly Fairing

24. How Can Carriers Achieve Savings and Meet Goals? Idle Reduction Single Wide Tires Improved Aerodynamics Driver Training Improved Freight Logistics Automatic Tire Inflation Systems Reducing Highway Speed Low Viscosity Lubricants Intermodal Shipping

25. How Do Carriers Evaluate Options and Measure Progress? • Freight Logistics Environmental and Energy Tracking Performance Model – Carrier Module: • Measures the environmental performance of any fleet: • Tons of CO2, NOx, and PM. • Effectiveness of strategies used in the fleet (e.g., aerodynamics, idling reduction). • Projects the effectiveness of strategies a fleet could add in the future. • Estimates cost savings and return-on-investment for strategies.

26. How Do Shippers Evaluate Options and Measure Progress? • Freight Logistics Environmental and Energy Tracking Performance Model – Shipper Module: • Tracks percentage of freight shipped with SmartWay Transport Carrier Partners – by weight, mileage, ton-mileage, $ value, or customized metric. • Calculates emissions from a shipper’s freight activities: • Truck idling at the company’s facilities. • Mobile sources at a company’s facilities (forklifts, loaders, cranes, generators). • Use of intermodal operations.

27. Benefits for Partners Meeting Partnership Goals • The SmartWay Logo: • Carriers and shippers who meet predetermined criteria for emissions reductions are awarded the SmartWay Transport Partnership logo. • Logo may be used on corporate materials and advertising to indicate the company’s use of cleaner transportation.

28. The SmartWay Transport Partnership Logo

29. SmartWay PSA Campaign • Raise awareness of the Partnership among the carrier and shipper communities, and the public. • Initial efforts aimed at carriers and shippers. • Campaign launched in Dec. 2004 • Placements in more than 20 publications/outlets: • Forbes • Business Week • Fleet Owner • Transport Topics • Overdrive • Numerous logistics and shipper publications

30. SmartWay PSA Campaign

31. SmartWay Transport National Idle-Free Transportation Corridors • 52 Projects in 17 States • Over 1,000 new electrified parking spaces to be created at truck stops as a result of $1 Million Awarded in Grants to 9 States and Non-Profits • FY 2005 Congressional earmark of $5 million to promote deployment of idle reduction technologies. • Developing model state idling regulation.

32. SmartWay Transport – Location of Idle Reduction Projects Active Projects Developing Projects U.S. Environmental Protection Agency ! Office of Transportation & Air Quality ! EPA420-F-04-057! www.epa.gov/smartway

33. SmartWay – One Year Later • 133 Partners – 107 Carriers, 20 Shippers, 6 Shipper/Carriers • 9 of Transport Topics Top 20 For-Hire Carriers • Well over 250,000 tractors traveling over 14 billion miles per year consuming more than 2 billion gallons of fuel per year • Shippers incorporating SmartWay membership into hiring decisions • IKEA North America moving to 100% shipping with SmartWay Carriers • Developing plans to allow the SmartWay logo to be put on low-emission, high fuel-efficiency trucks • Attempting to develop guidance for States to quantify and use emission reductions from long-haul trucks.

34. SmartWay – Highlights for 2005 • Issue Idling Control Grants and Develop Model State Idling Regulation • Continue development of Technology Verification Program • Develop and launch new Partner categories, possibly to include: • Rail • Affiliates (State Trucking Associations, NGOs, etc.) • Truck Parking Locations (Truck Stops, Travel Centers, Rest Stops, etc.) • Logistics Companies • Ports

35. 2005 SmartWay Idling Control Grant Program • The $5 million idling control grant program. • Program will include three components: • Small Trucking Company Grant Program (Mobile Technology) • Truck OEM/Fleet/Technology Vendor Grant Program (Mobile Technology) • Ports, Borders, Terminals and Truck Stop Grant Program (Stationary Technology) • Release of Request for Applications (RFA) planned for April 20.

36. Model State Idling Regulation Development • State Idling Regulations • Industry voiced concerns about state/local idling regulations • Inconsistent from state-to-state • List of states with laws is growing • Inhumane, impractical • Minimal input from trucking industry • Spotty enforcement • Possible ticketing use of APUs • Lack of outreach/education

37. Model State Idling Regulation Development • State Idling Regulations: EPA’s Response • Develop Model State Idling Regulation for states to adopt (or re-legislate) if they wish. • Bring together states, trucking associations, and trucking companies for discussions • Attempt to reach consensus on specifics of a model regulation: time limit, exemptions, etc. • 5 Focus group meetings in May – July 2005 • Issue model by late-Summer 2005

38. For More Information www.epa.gov/smartway Mike Zatz Tel: 202-343-9035 E-mail: zatz.michael@epa.gov