National Clean Diesel Campaign

1. National Clean Diesel Campaign Clean Diesel: How, Why, and the Money Wes McQuiddy Environmental Protection Agency Blue Skyways Collaborative Coordinator 2007 Statewide Clean Cities Conference January 26, 2007

2. Presentation Overview • Diesel Engines and Emissions • Overview of NCDC • Retrofit Technology & Verification • Why Diesel Retrofit? • Funding Opportunities 2

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 3

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) 4

5. Overview of National Clean Diesel Campaign • Regulations for new engines • Heavy-Duty Highway • Non-road • 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 5

6. Regulatory StrategyStandards for NEW Diesel 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 Loco-motives Marine Vessels Ocean-going Ships 6

7. NCDC’s Voluntary Programs for Existing Engines • Goal: reduce emissions from the legacy fleet of over 11 million diesel engines by 2014 • Focus on five sectors: • School Buses - Clean School Bus USA • Ports - Clean Ports USA • Construction - Clean Construction USA • Agriculture - Clean Air Agriculture • Freight - SmartWay Transport • Program activities: • Technology verification • Providing technical and policy analysis • Coalition-building and outreach • Establishing projects through grant competitions 7

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 8

9. Retrofit Technology & Verification • Retrofit technology can be: any change to an engine system above and beyond what is required by EPA regulations that improves the engine’s emission performance: • Aftertreatment (catalyst, filter, etc…) • Engine upgrade and Early engine replacement • Use of cleaner fuels or additives • Idling control equipment and other reduced idling strategies • Combination of above, others • Technology Verification • EPA has a rigorous testing program for evaluating technologies • Memorandum of Agreement between EPA and CARB • Collaboration with Texas • Retrofit technologies to reduce PM and NOx emissions currently verified by EPA & CARB: • DPFs, DOCs, Crankcase filtration, EGR , SCR, Engine upgrades and cleaner fuels 9

10. Why Diesel Retrofit? Protecting Public Health • The public can have high exposures to diesel emissions, such as children and school buses or workers and urban construction sites • Current clean diesel programs will reduce more than 20,000 PM tons over their lifetime • These reductions will provide nearly $5 billion in health benefits 10

11. Why Diesel Retrofit? Cost Effective Emissions Reductions • Diesel retrofit can provide a benefit-to-cost ratio of up to 13:1 • Nonroad retrofit can be some of the most cost effective • For example, a typical bulldozer may emit as much PM as 500 cars • Diesel retrofit costs can average $5,630/ton of NOx reduced.* • Median cost for traffic signalization estimated at $20,100/ton of NOx/HC.** • Median cost for park and ride lots estimated at $43,000/ton of NOx/HC** • For particulate matter, diesel retrofit can range from $11,000 - $70,000/ton of PM * From the Texas Emissions Reduction Plan’s 2004 Biennial Report to the Legislature ** Transportation Research Board Special Report 264 “Congestion Mitigation and Air Quality Improvement Program: Assessing 10 Years of Experience” 11

12. Why Diesel Retrofit? Broad Stakeholder Support • Industry, government, community and environmental groups agree - cleaning up diesel emissions is important Implementation Advantages • Diesel retrofits can be implemented quickly • Plenty of retrofit experience to capitalize on • Technical assistance at the national, regional and often local level • Resources and leveraged funds available 12

13. Why Diesel Retrofit? Public Fleet Leadership • Areas with air quality issues often look to cleaning their public fleet first • Example: New Jersey utilizing corporate business tax revenues to reduce emissions from refuse trucks, publicly owned nonroad and highway vehicles/equipment as well as school buses • Demonstrating clean diesel technologies • Example: Los Angeles County - Public Works using ULSD in all diesel vehicles and equipment three years prior to mandates 13

14. Federal FundingNational Clean Diesel Campaign • 2005 National Clean Diesel Campaign Grants • $7.5 M 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 Transport • $5 M 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 14

15. NCDC Projects to Date

16. Future Federal Funding: Energy and Transportation Acts Overview Energy Policy Act of 2005 • Diesel Emission Reduction Program • $200 million authorized annually over 5 years • President’s budget request includes $50M • House level $28M, Senate level $20M • 50% of funding for Public Fleets!!! Transportation Act of 2005 • Congestion Mitigation and Air Quality (CMAQ) • Priority for diesel retrofits • ~$1.6 billion per year for 6 years 16

17. Clean Diesel Collaboratives Carrying out the National Clean Diesel Campaign's mission regionally: • Northeast Diesel Collaborative- CT, MA, ME, NH, NJ, NY, PR, RI, VI, VT http://www.northeastdiesel.org/ • Mid-Atlantic Diesel Collaborative- DC, DE, MD, PA, VA, WV http://www.dieselmidatlantic.org • Southeast Diesel Collaborative- AL, FL, GA, KY, MS, NC, SC, TN http://www.southeastdiesel.org • Midwest Clean Diesel Initiative- IL, IN, MI, MN, OH, WI http://www.epa.gov/midwestcleandiesel/ • Blue Skyways Collaborative- AR, IA, KS, LA, MN, MO, NE, NM, OK, TX http://www.blueskyways.org • Rocky Mountain Clean Diesel Collaborative is in the works- CO, MT, ND, SD, UT, WY • West Coast Collaborative- AK, AZ, CA, HI, ID, NV, OR, WA, Canada and Mexico http://www.westcoastcollaborative.org 19

19. For More Information Visit EPA’s National Clean Diesel Campaign Website www.epa.gov/cleandiesel