Puget Sound Diesel Solutions Program

1. Puget Sound Diesel Solutions Program Dennis J. McLerran Executive Director Puget Sound Clean Air Agency DennisM@pscleanair.org www.pscleanair.org/dieselsolutions

2. Puget Sound Diesel Solutions • A voluntary diesel retrofit program developed in collaboration with EPA’s Voluntary Retrofit Program • Focused on introducing ultra-low sulfur diesel fuel and retrofits into the 4 Puget Sound counties near Seattle • A partnership with many - but EPA, Phillips Petroleum, King County and Seattle have been critical • Without the fuel from Phillips and EPA support there would not be a program Diesel Solutions Dennis McLerran

3. Why Diesel Solutions? • Recent health studies are compelling • National Air Toxics Assessment and local monitoring show mobile source air toxics for Puget Sound are in the 95th. percentile – cancer risk from diesel exhaust alone is 500 in a million • EPA 2007 engine and fuel rules will address only new engines - we want results sooner • The voluntary program now may avoid the need for a mandatory retrofit rule like California’s later Diesel Solutions Dennis McLerran

4. Partners

5. Partners Diesel Solutions Dennis McLerran

6. Partners • Johnson Matthey • Unique, patented CRTTM particulate filter system Diesel Solutions Dennis McLerran

7. Partners • King County Metro commitments • Switch to ultra-low sulfur fuel for all 1,100 Metro buses between 2001 and 2003 • Equip 800 buses with retrofit hardware over the next 2 1/2 years • Meet the 2007 EPA standards for new bus purchases • Help recruit others in the public and private sectors Diesel Solutions Dennis McLerran

8. Partners • City Of Seattle commitments • Switch to ultra-low sulfur fuel throughout its diesel fleet • Begin to retrofit its heavy duty diesel fleet in 2001 with the goal of retrofitting 400 vehicles by the end of 2003 • Make ultra-low sulfur diesel fuelavailable at city refuelingstations for other agencies Diesel Solutions Dennis McLerran

9. Partners Boeing Company commitments Use ultra-low sulfur diesel fuel for all Seattle-based heavy-duty diesel fleet vehicles Retrofit 70 heavy-duty diesel vehicles Take a leadership role in demonstrating the viability of retrofit hardware and fuel to the private sector Diesel Solutions Dennis McLerran

10. Partners: Commitments from others • The Everett School District And Durham Transportation use ultra-low sulfur diesel & have equipped 20 school buses with retrofits. They will do more as funding is available. • Emerald City Disposal And The Pacific Rim Enterprise Center will pilot retrofits and are interested in retrofitting all 400 Emerald City refuse vehicles. • The Washington State Department Of Transportation is developing a pilot retrofit project. • The Port Of Seattle is using ultra-low sulfur diesel and is developing a project to install retrofit hardware on diesels associated with construction of a new third runway at Sea-Tac Airport. Diesel Solutions Dennis McLerran

11. How we got started

12. How we got started • A Stappa/Alapco meeting like this one got us interested • We approached the 5 refiners in our region to see if they would make ultra-low sulfur diesel available before 2006 • Phillips said they would if we developed a market Diesel Solutions Dennis McLerran

13. How we got started • We went to key political leaders with large fleets to see if they would take a leadership role and made our case Diesel Solutions Dennis McLerran

14. How we got started • Greg Green, Mitch Greenberg and the EPA retrofit staff made key commitments to help us develop and promote the program Diesel Solutions Dennis McLerran

15. FleetOperators

16. Fleet Operators: Arranging a meeting • We knew we needed the added credibility of engine manufacturers, retrofit manufacturers, fuel suppliers and people with retrofit experience • EPA helped us bring the Diesel Technology Forum, MECA, Cummins, Johnson Matthey, Detroit Diesel, Engelhard and other national players to the meeting • To generate interest we arranged a meeting with key fleet operators Diesel Solutions Dennis McLerran

17. Fleet Operators: Arranging a meeting We brought in local political leaders to endorse the effort at the meeting EPA made a grant funding commitment at the meeting Boeing and several other key partners committed to the program as a result and we created momentum Diesel Solutions Dennis McLerran

18. Fleet Operators: Frequently asked questions • What will the costs be? • We underestimated both fuel and retrofit costs initially • Fuel has been 8 cents per gallon higher at the refinery and transport costs are added on top • Retrofits have varied from $5500 to $8000 for particle filters to $1500 to $2500 for oxidation catalysts • Will warranties be affected? • Ultra-low sulfur fuel alone is usually not an issue • Warranties with retrofit devices are more problematic Diesel Solutions Dennis McLerran

19. Fleet Operators: Frequently asked questions • Will there be engine or other problems from the fuel? • We had some filter plugging from tank contamination early on and Phillips changed the lubricity additive to eliminate the issue • Fleet managers remember issues with the change to 500 ppm fuel like fuel pump failures, so they need assurances • Phillips designed the fuel to have the same specs as its regular diesel except for sulfur content Diesel Solutions Dennis McLerran

20. Fleet Operators: Frequently asked questions • How do the devices work? • A clear explanation of the device options and how they work is important. • An explanation that fleet analysis is necessary up front is helpful • Will the devices work? • Sharing the results from other demonstration projects is very important in building credibility – the New York Transit and BP ECD-1 pilots have been very useful for us • Having local distributors and national engine manufacturer reps describe their company’s experiences is extremely important Diesel Solutions Dennis McLerran

21. Fleet Operators: Frequently asked questions • What type of installation and maintenance issues are there? • Installations have been straightforward, but need to be engineered for each application • Maintenance and longevity descriptions from manufacturers are helpful • Local manufacturer reps are very helpful here Diesel Solutions Dennis McLerran

22. Key questions…key answers

23. Key questions… key answers:What have key challenges been? • The economy – Seattle, King County and Washington state all have major budget deficits • Retrofit devices have cost more than MECA estimates Diesel Solutions Dennis McLerran

24. Key questions… key answers:What have key challenges been? • Fuel distribution costs and logistics • Costs have been higher than original estimates for fuel • The distribution network is not set up for an additional fuel • Separate truck racks and distribution facilities are needed to avoid contamination • Truck and trailer transport costs are significant • Higher volumes of fuel are needed to use lower cost options of barging and pipeline transport • Some fuel distributors see a business opportunity and some see this as a nuisance and want to add on extra handling charges or extra profit margins Diesel Solutions Dennis McLerran

25. Key questions… key answers:What have key challenges been? • Initial difficulties in getting competitive bids • Some early fuel filter plugging due to contamination in storage tanks and at fleet sites – lubricity additive changed to address this issue • Myths and fears of new fuel and technology • Competition from biodiesel Diesel Solutions Dennis McLerran

26. Key questions… key answers:What have we learned? • You can do a program like this • There are many people who want to help make retrofits work • People know that diesel pollution is a problem that needs to be addressed, they just need help in finding solutions • It takes substantial funding to make an effort like this get off the ground, but others are willing to spend a lot more if there is a little seed money to get them going • It takes a very sustained effort at a high organizational level to get a program up and running – you have to be willing to push through major challenges • Rewards and recognition are motivators Diesel Solutions Dennis McLerran

27. Key questions… key answers:What have we learned? • Fleet analysis is important • A nearly uniform fleet like a transit agency’s is easiest. You can map a few engines and duty cycles and design devices appropriately. • Mixed fleets require more effort, but are still manageable with a little help • EPA can help identify the general approach and possibilities • Age of engines is an issue • Duty cycles are important – not all are amenable to particle filters • Some 2 cycles are just too dirty to be retrofitted • Some engines have a short remaining useful life and just need to be replaced with new vehicles equipped from the start with particle filters Diesel Solutions Dennis McLerran

28. Key questions… key answers:What have we learned? • Particle Filters Are Still Custom Designs • We are not at a stage where off-the-shelf devices are the norm • Until that is the case, the costs for particle filters will remain relatively high • Working In Advance With Potential Bidders Is Desirable • Price Competition On Fuel Won’t Happen Without Multiple Producers Diesel Solutions Dennis McLerran

29. Key questions… key answers:What have we learned? • Flexibility in retrofit approach is necessary • Some fleets can only afford simple options like oxidation catalysts or alternate fuel now • Some will opt for biodiesel and you need to find ways to promote that too • Meeting the needs and budget of each fleet is necessary • Having enough subsidy money to give a little to everyone is helpful • Helping each fleet operator evaluate options is a partnership with EPA and is a great showing of good faith Diesel Solutions Dennis McLerran

30. Key questions… key answers:Where are we now with our program? • We are adding new partners slowly but steadily – two more transit agencies, additional school districts and garbage fleet operators are imminent • School buses are a key opportunity area • Fuel pricing and distribution challenges need to be met • Increased fuel volumes to get terminals closer to users are needed to reduce transport costs • Price competition would be helpful • More joint marketing efforts would be helpful Diesel Solutions Dennis McLerran

31. Key questions… key answers:Where are we now with our program? • We are hopeful of getting 5 million dollars in CMAQ funding and some additional grants for outreach and subsidies • We are using contract specifications, utility contracts and the project environmental review process to leverage new partners Diesel Solutions Dennis McLerran

32. Key questions… key answers:Where are we now with our program? • We’re integrating our program with Clean Cities’ efforts to bring in biodiesel and CNG – our gold standard is Seattle which is using ultra low sulfur diesel, 10% biodiesel and retrofits • Starting with simple improvements like idling reduction can also be beneficial • We’ve gotten national recognition for the program from EPA through a Clean Air Act Advisory Committee Award • We’ve set a program goal of reaching 50% of public fleets and 30% of private fleets over 5 years – we’ve already got 15% of total public fleets in our region • This will get easier as we get closer to June 2006 Diesel Solutions Dennis McLerran

33. Conclusions • This program offers great opportunities for avoiding additional regulations • We are making significant, necessary environmental and public health improvements • This has been a great opportunity for successful collaboration between the public and private sectors Diesel Solutions Dennis McLerran

34. Web resources • www.pscleanair.org/dieselsolutions • www.epa.gov/otaq/retrofit/ • www.ecdiesel.com • www.dieselforum.org/retrofit/retrofit.html • www.dieselnet.com • www.jmcsd.com (Johnson Matthey) • www.engelhard.com • www.meca.org Diesel Solutions Dennis McLerran