Reducing Diesel Emissions From Road Construction

1. Reducing Diesel EmissionsFrom Road Construction Alan Jones, Manager Environmental Policy Office Tennessee Department of Transportation

2. NOx 4% 4% 33% 33% 57% 57% 6% 6% 37% 46% 14% 3% Contribution of Non-road Emissions PM 2.5 On-road mobile sources, e.g., cars, trucks Area sources, including open burning, small businesses, household activities Source: Tennessee 2002 Draft Emissions Inventory Point sources, e.g., factories and utilities Non-road mobile sources, e.g., construction equipment, agricultural equipment, lawn and garden equipment

3. Non-road Diesel Emissions—PM 2.5Percent Contribution by Category Diesel sources make up 73% of non-road emissions from all fuels Source: Tennessee 2002 Draft Emissions Inventory

4. 18 Nonattainment Counties in Tennessee • 17 counties in 8-hour ozone nonattainment* • 9 counties in ozone Early Action Compacts • 6 counties in PM 2.5 nonattainment* • Knoxville region (5 counties) and Chattanooga (1 county) * Some counties nonattainment for both ozone and PM 2.5 Note: County totals include partial county designations

5. TDOT’s Clean Transportation Initiative • Comprehensive effort to reduce on- and off-road mobile source emissions • Reduce congestion (ITS, multimodal investments) • Increase use of transportation alternatives and reduce growth rate of VMT • Encourage cleaner fuels and vehicles(biofuels, retrofits, etc.) • Partner with state/local governments, MPOs and private sector on air quality projects

6. Clean Transportation Innovations Incentives Fund • Dedicates up to $4.8 M (total FY 2005-2007) in CMAQ Program funds • Partner with owners of heavy-duty diesels to reduce emissions (existing fleets) • Project options include after treatment (retrofits), replacement, repowering, rebuilding • Encourage idling reduction and cleaner fuels • Public/private partnerships essential

7. Clean Transportation Innovations Incentives Fund • Pilot projects for FY 2006 • Retrofit road construction equipment • Retrofit public fleets • School buses • Transit vehicles • Waste hauling vehicles • City and county public works vehicles • Idling reduction options for switchyard locomotives • Develop competitive program for FY 2007

8. Congestion Mitigation and Air Quality Improvement Program (CMAQ) • Primary purpose improving air quality • Transportation projects that reduce mobile source emissions in nonattainment and maintenance areas • Non-federal match required (generally 20%) • State DOTs/MPOs - priority on diesel retrofits and other cost-effective emission reduction projects

9. CMAQ and SAFETEA-LU • SAFETEA-LU authorized CMAQ to fund • On-road and non-road diesel vehicles or construction equipment projects • Outreach activities to diesel owners regarding diesel retrofits • Primary project selection criteria • Estimated emission reductions • Cost-effectiveness of emission reduction • EPA preparing guidance on cost-effectiveness of CMAQ projects

10. TDOT Diesel Emissions Road Construction Pilot • TDOT pilot project in East Tennessee aims to • Assess feasibility and effectiveness of diesel retrofits for construction equipment • Develop technical information to share with other companies • Work with partner firms with existingor recently awarded contracts in PM 2.5 nonattainment counties

11. Road Construction Pilot - Announcement and Applications • TDOT identified firms now under contract • Projects underway or recently awarded • TDOT will announce the opportunity • Partner firms will • Inventory equipment for emissions rate, hours of use, and remaining useful life • Identify specific equipment to retrofit • Select verified retrofit technologies from EPA list (e.g., diesel oxidation catalysts)

12. Project Selection and Public-Private Partnership Agreements • TDOT will • Review applications and select projects to be funded • Develop public-private partnership agreements with successful applicants • Partner firms will • Purchase and install technologybased on the agreement • Send TDOT an invoice for 80 percentof project costs

13. Partner Commitments • Partner firms will • Commit to use retrofitted equipment in nonattainment area for limited period • Establish idling reduction policy • Use low-sulfur fuel (<500 ppm sulfur) with oxidation catalysts or ULSD (<15 ppm sulfur) with particulate filters • Verify installation of retrofit devices and use of cleaner fuel • Notify TDOT when equipment is removed from nonattainment area

14. Reporting Requirements • Partners will track actual equipment usage in nonattainment area to verify emission reductions • Report amount of fuel consumed or number of service hours for non-road equipment • Report miles traveled for each heavy-duty on-road vehicle • TDOT will use EPA’s retrofit calculator to develop better estimates of expected emission reductions

15. Insights and Issues • Difficult for firms to make extended commitment to keep retrofitted equipment in nonattainment area • Because of replacement policies, larger companies tend to use fairly new equipment • Greatest emission reductions from older engines, especially unregulated engines • Earthmovers, large scrapers • Large equipment rarely used in urban projects (e.g., road widening, intersection improvements)

16. Insights and Issues • Even with government cost-sharing, for-profit companies are reluctant to incur added expenses • Incentives necessary to encourage participation • Increased cost of cleaner fuels another barrier • Must consider engine-specific information in selecting the appropriate technology match • Older equipment a major issue • Higher emissions • Limited financial resources – equipment owners and funding opportunities

17. Needs and Opportunities • Need for dedicated funding to share costs • CMAQ may fund pilot projects, but other dedicated funding sources are badly needed • Increased use of biodiesel • Greater emphasis on idling reduction • Future option - Contract bid specifications that require use of cleaner equipment and cleaner fuels • Raises costs of road projects when states already face highway funding shortages