Good day, ladies and gentlemen.
Welcome to the freight transportation and air quality notable projects seminar.
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I will now like to turn over to your host for today's call, miss Jennifer.
Good afternoon, welcome to the talking freight seminar series.
I will moderate today's seminar.
Today's topic is freight transportation and air quality, notable practices.
Please be advised to today's seminar is being recorded.
Today we'll have two speakers, Sergio Ostria and Mike Zatz.
Sergio Ostria is senior vice president with ICF consulting.
He has over 18 years of experience working with federal, state, local transportation agencies in the U.S., as well as government agencies in numerous countries.
His research focused on virtually every single and multiple mode of freight and passenger transportation
with special emphasize sis on the nucleus between transportation policy, planning and economic development environmental and energy consumption poll says.
Mr. Ostria has developed frameworks for assessing the need for transportation investments resulting from changes in regional economies.
Most recently, he distracted an environmental impact study and general conform ti determination of regulations
designed to allow Mexico-domiciled carriers to operate in the U.S. beyond border area commercial zones as required by NAFTA.
That work involved the development of comprehensive analysis system to estimate the emissions affects of proposed rules in every air quality nonattainment maintenance area of the country.
He is currently supporting FHWA with a comprehensive study.
Mike Zatz as an MS in environmental science and policy from johns Hopkins university and a BS in engineering and public policy from Washington university in St. Louis.
Mike joined EPA in September, 2004, after nearly 14 years with ICF consulting, including three years as director of ICF 's office in Bangkok, Thailand.
Mike has over 14 years of experience working with industry from around the world to identify methods for reducing impacts of various businesses on the environmental.
Smartway is an innovative voluntary effort to reduce green house gas and other air emissions primarily through the implementation of fuel saving technologies and techniques.
The partnership has grown from 50 partners at a launch in 2004 to over 125 partners today.
I'd like to go over a few logistical details.
Today's seminar will last 90 minutes with 60 minutes aloe indicated for speakers and the final 30 for audience question and answer.
Operator will give you instructions on how to q a during the Q and A period.
However, if during the presentations you think of a question, you can type it into the smaller text box underneath the chat area on the lower right side of the screen.
I will use questions typed into the chat box to start off the question and answer session.
Those questions not answered will be posted to the freight planning lift SERV, an e-mail list,
a great forum to post questions to find out what other subscribers have learned in the area of freight planning.
The web address is provided on the slide showing on the screen.
To zoom in, you can click on the zoom icon at the top of the screen.
Finally boy like to remind you session is being recorded.
A file containing audio and portion of this seminar will be posted to the talking freight web site web site within the next week.
To access the recorded seminar, please visit talking freight.webex.come and click on recorded events link on the left side of the screen.
We encourage to you direct other who's have not been able to attend to access the recorded seminar.
The power point presentations will be available within the next week.
I'll notify all attendees of the power points, recording and a transcript of the seminar.
We're not going to hang on a few minutes until 1:00 and wait for a few others to join in.
At 1:00 we'll begin.
At this point the operator going to put you back in hold.
We'll start up again at 1:00, eastern time.
good day, ladies and gentlemen, welcome to the freight transportation and air quality notable practices webbing NAR.
At this time, all participants are in a listen-only mode.
We'll conduct a live question and answer session at the end of the presentation.
You may submit questions vee yat web at any time by using the chat feature in the lower right hand corner of the screen.
If at any time you require audio assistance press star, followed by zero.
Should you experience technical difficulties with the presentation, please contact webex technical support.
I would now like to turn the presentation over to your host for today's call.
Miss Jennifer Seplow.
It's now about 1:00.
I see that many others have joined us.
We're going to begin with our first presentation.
Again, today's topic for those of of you is who have just joined us is freight transportation and air quality.
The first presentation will be that of Sergio Ostria of ICF consulting.
If you think of questions during the presentation, please type them into the chat area of the screen.
The presenters will not be able to answer during the presentation but we'll use those questions in the last half hour of the seminar, Sergio I'm going to get you set up here.
You can go ahead.
Great, thank you very much.
I'm happy to be here today and hopefully, you'll find this interesting.
I think it's a very important issue, one that is going to grow in importance as the years go by here.
What I'm going to be talking about today I've structured this presentation into the following sections, first, you know, we'll go over a little bit what the setting is.
In essence, why will freight air quality issues become more important into the future, then,
I'll go over the results of a study that was recently conducted by the federal highway administration I see us supported FHWA on.
We'll review results of that by showing freight contributions to the air quality problem both at the national and regional levels,
we'll review analysis challenge that's need focus add tension as we move forward.
We'll talk about mitigation strategies.
Then, we'll briefly discuss other issues that are relevant to the nexus between freight transportation and the environment, then, have closing thoughts on what needs to be done, moving forward.
So, the setting.
In essence there is a growing concern about the future performance of the freight system.
It's pretty clear that freight transportation is becoming more and more important, not only from the perspective of transportation planning, but also programming and project development.
Truck traffic is be contributing to worsening highway congestion at a faster rate then passenger traffic.
There is no abaitment in site with respect to growth and the plan for truck transportation.
We'll talk about that.
And likewise, the capacity of the freight rail system had been drink shrinking in the past, since 1975, ton miles moved by nearly 100%, road and track miles decreased by 40%.
So when you think about things from an internodal or multi modal context, you know,
freight transportation becomes even more important in that regard since the modes work together often to provide services that are needed by shippers.
In addition, globally signs is stretching our contain trained port system.
And container storage at the port of Los Angeles doubled between 199 and 2004.
And then, finally in the air sector there has been significant growth in air freight which could begin to strain our aviation system
and certainly, before September 11th, when our airports were facing significant capacity issues, that had started to become an issue.
So, in essence, the performance of our freight system is being strained
and there is significant challenges that have to be addressed not only from the context of planning through to project development.
We'll talk more about that.
Why is performance such an everybody issue?
In other words why should we be concerned about this significant strain on the freight system?
Reality is that there are important links between an efficient and reliable freight transportation system and economic performance.
It's -- I'm not sure how many economists are on the phone or in the seminar, but if you think about freight transportation as an input factor in the production of things, or products,
it become as parent, much like labor and capitol, transportation is a necessary element in the production and distribution of goods and services.
As costs go down, they have potentially significant affects on economic product activity at the firm level and at the national level.
In essence, shippers and carriers optimize around logistics and supply-chain management.
They optimize around transportation system performance.
What has been going on in the past, the advent of technology led to just in time deliveries,
and shippers have been organizing their logistics around a high level of system performance from transportation.
Carriers and service providers.
Congestion, however, could really force costly resigns of logistics systems that could affect, again in a negative way, economic productivity.
Moving forward in our economy from a global context.
And when you couple the importance of an efficient, reliable and safe freight system, with economic performance, and then, overlay on that,
the significant demand pressures we are facing and will likely face into the future, then, the nexus between these trends
and the need to start really thinking about how air pollution needs to be handled within that context becomes very, very important.
In particular, needed investments may be difficult to implement.
In other words, areas continue to face significant capacity challenges,
it will become more p more important to ensure that the contribution of the freight secretaries to air pollution is addressed in a very proactive way
if you're too implement needed investments and address conform ti.
Well, in order to meet the challenge, if you will, we need to improve our fundamental understanding of freight emissions.
As regions and main streams into our planning, programming and project development processes it will become more apparent that our current understanding of freight emissions
needs to be improved in order to address not only the problem, but develop solutions to minimize the contribution of freight to air quality considerations.
In essence, air quality is a regional issue.
Yet, most previous studies really have looked at things at the national level.
There hasn't been a lot of work comparing across regions.
In many cases a lot of the thinking has been done as part of the emission inventory work that supports state implementation plans developed by states.
And that are coordinated with transportation decisions and plans.
Yet, the process really doesn't -- there is no distinction between mission and categories.
There is no distinction between passenger rail or freight rail.
Isolating the affect of freight rail in particular has not been done as effectively as it needs to be at we move forward into the future.
There is no distance of non-road equipment use for freight ports and airports, for instance N addition, you know,
the processes don't estimate emissions by operational mode such as idling, which is important when you start looking into trucking strategies to reduce the contribution of trucking to air pollution.
Now, I'm going to turn my attention to FHWA's recent study, which is -- has been, was completed this month and will be available shortly from FHWA.
It is entitled assessing the improvements on air quality at the national and regional level.
There were a number of objectives.
And the leadership in this area, I think is very important N essence, objectives were as follows, one,
there is a need to fill the void in the current understanding of the air quality impacts of freight transportation.
There is a need to evaluate current methods, regulations and the types of freight transportation demand treads that are likely to be coming down the pike
so that we have a better understanding of where we can get the biggest return for investments when it comes to mitigation and analysis efforts.
There is -- the study looked to assess the contribution of freight movements by mode to seemless in six areas to get at this fundamental consideration that air quality is a reasonable issue
and the contribution to the air quality situation in this specific region is going to be -- going to different across regions based on the system, for instance,
those region was port activity will have a different freight foot print, if you will, than those that don't.
And the study looked to investigate emission reduction strategies that state and local practitioners could implement both in the near term and in the long term,
now, certainly a lot of the reduction strategies are technology orient that had are being pushed by regulation.
But then there is some important operational consideration that's can be implemented by state and local practitioners and decision makers.
Folks on the front line of confronting these challenges.
And then, the study looked to recommend needed progression and methods given likely trends and demands and the affects of regulation for instance.
So... Now, I'm going to turn to what we found as a result of our work.
I think it's, again, important to note that this is really one of the few efforts,
if not the only effort out there that has tried to isolate the contribution of freight activities to total emissions at the national and regional levels
because isolating freight activities has not been really the focus of a lot of the efforts that have been related to state implementation plans for example.
This slide gives you a sense of what we're dealing W if you look at the total row, freight contributes about 50% to all mobile source emissions, including passenger vehicle asks so forth.
As we know mobile sources are a significant component of emission inventories.
That is in 2002.
So we're dealing with half of the problem Whit comes to Knox.
When you start thinking about the contribution of freight.
When you expand across all sources we're dealing with over a quarter of the problem, about 27%.
In other words freight transportation activities contribute about 27% to Knox emissions across all sources in 2002.
And the picture changes a little bit with PM 10.
It's certainly significant as well.
Heavy duty vehicles, in this case, trucks contribute about 23% of the all mobile sources emissions.
So, it's an important consideration when it comes to structuring not only the air quality and transportation decision making but looking at mitigation options.
In essence this is a very important freight transportation is an important component of the problem.
And I believe it can be a very important component of the solution.
Moving to the next slide, there are -- in recognition of the contribution of, in particular, diesel engines to emission problems across the country,
there have been progress in the development of the emission standards this, slide shows the standards affecting freight, obviously.
In the case of trucks, very stringent Knox and PM standards will be taken affect in 2007.
They're both tail pipe and fuel oriented for, with a low sulphur diesel fuel provisions.
By 2020 it's expected Knox and PM emission factors will be five to 15 times lower than current levels.
So that kind can't progress.
On the rail side, EPA announced plans for stringent standards similar to those for trucks in the future.
Yet, you know, we know there is slow fleet turnover.
That has an important ramification in terms of when these types of standards will start to have significant impacts in emissions and air quality at the regional levels.
On the marine side, first standards took affect in 2004.
EPA announced plans for stringent standards in the future, similar to those of trucks.
EPA have authority to regulate foreign flag vessels.
They are significant part of the activity that is seen in our ports in the United States.
In other words, they make a lot of calls to the ports so they account for a lot of the traffic.
The fact that EPA does not have authority to regulate emissions from those vessels is something that needs to be looked into when you're thinking about,
you know, understanding better the situation when it comes to the marine side of things.
On the aircraft side, there is some difficult technical tradeoffs between Knox and noise, noise is a very important consideration when it comes to air port planning,
and assessing aircraft activity and the unwanted associations with those activities.
This next slide shows, however, that there is going to be significant progress from the perspective of emission rates from the base line, which is 2002 in this case.
We see some significant decreases in emission rates across all of the modes, here, from trucks to locomotives for Knox and PM in --
by 2020, the emission rates of trucks for instance will have decreased by over 80% that.
Is important progress that we have to think through in terms of what it means from assessing the contribution of freight to emissions and air quality and also, thinking about mitigation options.
You know you have to look at activity on the other hand and demand is expected to grow significant into the future.
This slide is based on some projections that ICF made as part of a study.
They're similar, for instance on the trucking side to what FHWA's framework forecasted to 2020.
But in essence, we're going to likely see an increase on the mileage basis of trucking for instance in the order of 60% to 70% between 2000 and 2020.
Likewise, roughly about 50% on the rail side and barge traffic which has been decreasing actually is expected to increase into the future.
On the air side, it represents a small percentage of over all freight activity, it's expected that air cargo is expected to double by 2020.
When you coupled the significant progress that is going to be made on the emission rates side for the fact
that fleet turnover will affect how quickly we'll be able to see the benefits of those regulations and then, overlay on that the significant increases in demand.
We start to see the picture that freight transportation is a really important element of the air quality picture in the future,
and will likely grow in importance as transportation agencies develop their plans, programs and look to move forward with projects under the process.
Now, one of the thing that's we wanted to do is get a sense of how the contribution across modes to freight emissions, per se,
would be changing over time given the projections of activity as well as regulations driving changes in emission rates this, next slide gives a few tour freight Knox emissions at this stage.
It's one important finding is that you kind of go through time, certainly, trucking is a major contributor today.
Roughly accounting for 67% of freight Knox emissions in this case.
As you move forward into the mu tour, by 2020, commercial marine is expected to grow in importance.
That is largely because of the significant progress that is going to be made on the emission rates on the trucking side.
And the relatively faster vehicle turnover relative to trucks.
But importantly, the fact that foreign flag vessels not under the control of EPA of the the commercial marine sector, ships calling on our ever expanding ports are going to be growing in importance.
From a regional context, as states grapple with air quality challenges, then look to develop institutional relationships to address them,
certainly working with this nursing will hopefully help to drive outcomes that are suit the initial goals
and object being sought when it comes to reusing freight Knox emissions into the future.
The missed similar on the PM 10 side of things.
Today, heavy duty truck as for 65% of the freight emissions into the future, your starting to see a modal change, where commercial marine, again, becomes more important.
For very similar reasons than I discussed earlier.
Now, when you start thinking about the regional level, significant part of the study, as I mentioned earlier was oriented towards trying to get a sense of freight emissions at the regional level.
We got in on six areas, palt more, Chicago, Dallas, forth worth, Detroit, Houston and Los Angeles.
The report that will be available from FHWA articulates a rationale for picking these sides.
But the work entailed compilation,
if you will of the fleet system in each of these regions and looked at all of the information available not only from state implementation plans but the planning process,
transportation planning process, on that we can use to isolate freight emissions.
Now, so if you look at freight emissions you see that it's somewhat consistent with the picture we saw at the fashionable level.
Across all mobile sources, freights contribution ranges from 40% to 52% in these regions which is close to what we're talking about at the national level.
Across all sources, however, it's higher.
It ranges from about 29% to 39%, Los Angeles being 39%.
So, the picture actually gets a little more interesting when you start isolating the issue at the regional level.
Now, again, within freight, where there isn't well in other words, other than Chicago, freight rail accounts for less than 10% of all freight emissions.
Now, Chicago is a major rail hub N Chicago that freight rail contribution is higher than that.
But in essence, marine Knox emissions are large in region was major portions.
On the PM side, you see a similar picture, it's pretty consistent with what we found at the national level.
A little higher when you compare thing as cross all sources.
But nonetheless, freight PM 10 emissions in these regions are very important pieces of the puzzle.
When it comes to PM 10 trucking is still the largest contributor.
It's less so than Knox.
Again, in Chicago, because of the importance of the rail activity in that region, freight rail accounts for about 20% of total freight emissions,
marine contributes about 40% of freight PM 10 emissions in Los Angeles and Houston, where there really significant ports, obviously.
A container port and the port of Los Angeles and Long Beach and the bulk port in Houston, for instance.
So now I'm going to talk a little bit about some of the estimation challenges that we found as part of our work.
The importance of going through this is to lay the ground work for the types of -- Mike, do you mind if you put your phone on mute, please?
The emission is -- I'm going to go over the emission estimation challenges relevant to each of the modes.
The importance of this as practitioners I'm sure a lot of folks on the phone are going to be working in the front lines, if you will of trying to grapple with these issues moving forward
given the importance that freight is getting when it comes to planning and programming and project development.
On the trucking side, as most of you probably know, mobile six model is used predominantly other than in California, which uses another model,
but mobile six requires vehicle miles traveled by 16 truck classes but most transportation data identifies one or two truck classes.
There is a reliance on default values.
As we know that, cloud picture when you start looking at things at a localized level.
Like-wise, Knox emissions rates vary with speed.
Yet, mobile six uses an average speed for each roadway link.
There are potential thing that's can be done to improve field of inputs that used in 9 in the process.
Importantly in some ways, idling is often ignored.
The typical analysis process doesn't account for extended truck I'd idling.
It is a important contributor to the problem of emissions and one that can be addressed, I think creatively and readily in terms of mitigation or reduction.
So, the fact it's often ignored in the analysis processes I think short changes potentially the process
and really should be much more effectively integrated into the decision making white comes to air quality and transportation planning.
Congestion affects are also very difficult to assess.
The mobile model does not account for a celebration which obviously is affected by congestion.
It's also difficult to distinguish between frequent starts and stopping, high emission rates, and moderate speeds, low emission rates.
And this issue is actually very important when you start considering the tool box that folks swirl available to them to better --
to reduce emissions from the freight sector, particularly, trucking in this case.
That tool box is comprised as I mentioned earlier with technology oriented strategies but also, with operations oriented strategies, certainly,
our ability to better assess the affects of operations oriented strategies in terms of reducing freight emissions, needs to improve significantly into the future.
Now I'm going to turn may tension to freight some of the emissions challenges we confronted there.
First, agencies very on data provided by the private railroads, obviously.
Gross ton miles by county or fuel used by county are used necessary.
But, the data provided by the railroads may be incomplete or inaccurate, or may not really represent the situation potentially as well as it could.
Many railroads can't provide data on switch yard locomotive for instance and often, national defaults are used.
Emission factors in general are relatively poor.
And then, finally, class two and class three railroads are often ignored.
Because mostly there is little or no data available from these types of carriers so.
we're missing part of the picture of the fundamental components that have to do with the emission factor side of things and needs improvement.
We can improve Fidelity of the data we get when it comes to activity sides of the picture.
So there is a lot of work to be done on the freight rail side Whit comes to emissions estimation.
On the marine freight side, we found many regions obtain data on fuel sales by county,
they assumed fuel sales or representative of activity which isn't necessarily through for ocean-going vessels that may buy fuel anywhere.
The development is time consuming but some ports have done an add memorable job.
The ports of Los Angeles, Long Beach, New Jersey and portland stepped up and tried to improve
and come up with a marine freight emissions estimation process that is more robust than what would you see in other parts of the country.
But in doing so, it's pretty clear that a sophisticated approach requires a lot of data.
And specific types of data in order to improve activity and emission factor side of the process .
And port cargo handling equipment are important pieces of the puzzle but often ignored.
State implementation plans lump this source in with other non-road equipment.
I'm going to move on more quickly into the interest of time.
Air cargo, as I mentioned earlier is a relatively smaller piece of the puzzle.
What we found is that in order to estimate the of air cargo or air activities in general, FAA's emissions and December modeling system is often used for all airport inventories.
As we discussed it's difficult to separate passenger and freight activity
in that poses a significant challenge when you think about the fact that passenger planes carry a third of air freight ton miles in their bellies.
Then, like on the port side, air port ground support equipment is often not considered as effectively as it should be.
So where does that leave us?
Now, I'm going to turn to some of the strategy that's may be available for reducing freight fuel use and emissions.
We talked with some of the challenges, but certainly there are mitigation options that are very important to consider,
if you're sitting on the side of a transportation agency that has operational responsibilities for instance.
I mentioned earlier there is a significant amount of work being done on the technology oriented straight .
I'm not going to go over those, mostly because given most of the people probably on the phone are representatives from state DOTs and other transportation agencies.
I figured it would be more important to kind of stress operational oriented strategize listed here.
I'm not going to go through all of these.
But on the trucking side, and we'll hear a little bit more from Mike Zatz about this as part of a smart way program from.
Trucking side, the one that is very important is reducing overnight idling.
And just reducing idling in general.
There are a lot of both technological, as well as operational options available.
To reduce idling significantly, which would have a very important affect on local emissions as well as hot spot emission is important.
And but there is also things oriented around port access improvements, and reducing empty mileage.
Industry tries to reduce empty mileage as much as possible from a business perspective.
Likewise, in rail, there are some switch yard idling opportunities, as well as double tracking and train clearance improvements, thing that's are smooth and flow.
And more importantly, elimination of routings could be a very important consideration moving forward.
You find similar types of operations oriented strategies for reducing freight fuel use and emissions.
The fuel use component is important when you start thinking about the contribution of climate to green house gases and climate change.
There is also a very significant global emissions issue as well.
So, now, in essence, I'm going to quickly summarize some of our conclusions we found.
But as you will be able to see from the report, freight of transportation as we've shown here also is a major source of national and regional Knox and PM 10 emissions.
There is a lot to be done.
It's an important element that requires significant attention.
Especially given the focuses of freight and planning programming and project development.
There is a significant need to improve emission inventory processes.
And as I el you'ded to, there are opportunities on the operations side that aren't yeel really that well understood and not captured properly in the tools for estimating emissions.
I think there is potentially a lot of work to be done in that area so that we get a better understanding of what we're dealing with and how to reduce the contribution of freight to emissions.
Now, as I close, I wanted to point out and of the other environmental impacts that are relevant to freight projects.
I think this is very important from the NEPA side.
And looking at it from the air quality side, as no doubt very important, but let's not lose sight of the other types of operation that's need to be addressed.
The first is community livable and environmental justice.
The fact that is that many facilities are situated near minority or economically disadvantaged communities.
As we're thinking about freight improvement projects, for instance, where he to account for environmental justice considerations and just community cohe'siveness types of issues.
There is a significant push on the part of both industry and some researchers towards things like city logistics or freight villages.
Freight villages and relationship between them to community cohesiveness and livable will become an important issue in the future.
Also, in something very important, again, location of freight villages outside of city centers could lead to more spread.
As we know, indirect improvements have been a major point of contention in many of our highway EISs in the recent past there.
Is noise hazardous waste and hazardous materials types of considerations as well as invasive species.
But we'll not get into those in detail.
So what do we need to do moving forward?
I think, and I've made this point repeatedly.
But I think we have to increase the likelihood that transportation plans conform with air quality plans.
In order to do that we have to take freight into consideration in a proactive and organized fashion.
We have to increase the awareness and effectiveness of strategies on the operations side, when you're sitting on the -- when you're sitting in a transportation agency and grappling with this issue.
We have to invest and expand the use of tools and models for impact assessment and mitigation evaluation.
That is a important component in, essence we need better data
and we need to not so much rely on the modeling regimes that have been developed for us thus far, but really understand what those models tell us.
And what types of indicate data and new approaches are needed to really refine our understanding of the problem.
We need to ensure they adhere to environmental goals and air quality is a very important component of that.
And in doing so, hopefully, that will allow us to stream line the implementation of projects, certainly the environmental review of them so we can more --
deliver needed projects that once you think about the significant pressures on demand that are going to be needed in a timely fashion that.
Is what I had for today.
I would be happy to answer any questions, I guess, after Mike's presentation.
Yes, sounds good, thank you, Sergio.
Again, I do want to encourage everybody out there if you do think of questions to type them in the chat area of the screen F you could indicate which presenter the question is for,
and also make sure you send it out to all participants.
Let's move on to Mike Zatz of the U.S. Environmental Protection Agency.
Mike, just a moment, I'll get you set up okay.
I have to apologize to Sergio.
One of my colleagues came by and was fascinating on how this works.
I thought we were on listening mode, maybe not the presenter autos that is okay.
Okay, Mike, you can begin when you're ready.
I wanted to thank everybody for taking the time tout to attend this afternoon, and especially happy to be here with Sergio who is a former colleague of mine for those that heard the introduction.
I was with ICF for 14 years.
I can vouch for the good work they do.
And what I wanted to talk about today was the smart way transport partnership.
Sergio set it up very nicely in talking about the contributions of the various modes and freight industry to air emissions.
Mostly what I'm going to talk about today is the trucking side, which is what smart way focused on.
I'll mention a little bit of what we're doing in other modes.
Three things summarize what Smartway is meant to do and what companies do and why they join is that they're looking to save fuel, save money and able to clean the air at the same time.
I would like to lead off with just a number of quotes.
I wanted to highlights the first two here.
These are quotes from various partners, the companies that participate in the program.
The first one we're very proud of this, just came to us in a letter from a medium-sized trucking company.
You fled it.
It shows these companies are worried that EPA are concerned about business as well as clean air that.
Is not something we're accused doing is worrying about businesses.
Our business is clean air in this case.
But Smartway has been designed to really focus on making the business case to the companies and to encourage them to reduce their fuel consummation and emissions.
We try and present a win, win situation.
The second quote here from swift transportation which is one of the largest trucking companies in the country, really sums it up,
that he told his peers at the launch of Smartway the very worst thing that will happen to them if they join and take advantage is that they're going to save money.
We like to just highlight those to give people a sense of what Smartway is all about.
There are other quotes here from other companies that are participating with us more about how this fits within their environmental initiatives.
Just a quick overview of how it came about, Smartway was launched a little over a year ago in February, 2004 at the American trucking association's winter Lee leadership meeting.
It took two years to develop it 69 -- before that.
The first is a corporate partnerships.
That is what I'm going to mostly talk about today.
That is the program where carriers and shippers work to reduce fuel consumption and emissions, second is transit transportation idle free quarters.
And how maybe it hasn't been addressed adequately.
We have a part dedicated only to I'd idling and looking at ways to reduce unnecessary idling.
The third is rail and interior model.
That is under development.
We're getting set to launch smart way rail at the end of may at the annual awards for the environmental excellence in the rail industry.
Now I'll talk about the voluntary partnership portion, what it is, how it works and what we're getting out of it.
This is a voluntary partnership.
It's designed to complement the activities which most people are aware of.
Smart way was developed over a period of about two years leading up to the launch in February, 2004.
It was developed jointly by EPA a fum of carriers and shippers.
Some are mentioned here.
The mention trucking association was a key partner in the development of Smartway.
During the discussions and what it would address, what we noticed was that there were differing interests.
The freight industry came into this, primarily interested in reducing fuel consummation that.
Is their primary goal here.
Second to labor, fuel is their biggest cost.
They were also very interested in public recognition and improved public image.
ATA's was concerned with that.
They noted the trucking industry is generally seen as dirty and unsafe.
They feel that that is not the case.
They were hoping participation and active participation would help to demonstrate their committment improving the environment at the same time.
And EPA was focused our interest was reduced emissions and this program looks at C02, Knox and PM.
Then, of course, as with most thing that's EPA does now, we're interested in improved energy security that comes with reducing the amount of oil that we use.
We had been working closely with, I know a lot of people are here from the states.
With state trucking associations, in particular, right after the launch of the program.
So get word out to trucking companies.
How to reach out to them.
We've had a very good partnership with a number of state trucking associations, some of the most active ones include Minnesota, New Jersey, Montana, Kentucky.
We're working with a couple dozen state trucking associations now, very actively to try and get the word out to their members about Smartway and encourage them to join.
This slide here just shows you the logos, which many of recognizable to most people.
These are the charter partners, which are the company that's helped us design Smartway.
The next slide shows more logos as well.
We were especially happy if you look on the top lefthand corner, first two on the left, Wal-mart and Tucson who both joined together.
Both joined at the same time in October.
That was a very big achievement for us.
This just shows you headquarters of our partners, this has 126 on it.
As of April 4 just in the last couple weeks we added seven new partners, you can sort of see the activity of the state trucking association in here by looking at Minnesota,
then, you'll see with have about 13 partners in Minnesota.
Roughly 10% of the partners.
Not something you might suspect.
Thinking about Minnesota Z trucking.
But it just shows that the active participation of the state trucking association helps to get fleets involved.
It's going to help the people in Minnesota, New Jersey as well.
I see six, seven partners there.
That is growing, also.
How does the partnership work?
As I mentioned it is for both carriers and shippers.
Carriers, it's probably fairly obvious.
They are the trucking companies.
They agree to work over a period of three years years to reduce their fuel consummation.
They do that through a lot of different methods that I'm going to go over in just a moment.
Shippers hire carriers to trance pore goods for them.
These are companies like Nike, home depot.
What they agreed to do once they sign up and join the partnership is work towards shipping more product with Smartway carriers.
They commit to working over a three-year period to get to a point where they ship 50% of the product using only Smartway carriers.
We ask shippers to take a look at their operations.
And see if there are things they can do themselves to reduce emissions by looking at things like cranes, fork lifts, loaders and also, what's happening at their loading docks.
Are trucks idling there?
How carriers achieve the savings that they're shooting for and meet goals?
There are a lot of different methods.
Idle reduction is the holy grail here.
The biggest one.
It's something everybody can address.
There are a lot of different ways to do it.
I'll show you pictures of a few here.
Some people will be familiar and some will not this, is the scene you might see as a typical truck stop.
The trucks park to rest, sleep.
And this goes on for eight hours now, maybe 10 hours.
And that is the typical scenario.
One method of reducing idling.
EPA doesn't endorse any one method over another is addition of these devices abuse trucks, truck stop electric fiction.
There are a number of ways to accomplish it.
Some are simple plugins.
And these devices here actually provide heating, cooling, satellite TV, internet access, telephone and a bunch of other benefits.
And they, drivers pay by the hour.
Rate runs about $1.50 an hour.
When you consider I'd idling they're burning fuel, it ends up cheaper for them.
Many of the drivers really like this.
The problem is is that it is not available in very many places.
I'll talk about what EPA is doing in this regard later.
Another method for reducing I'd idling in a similar way allowing truck drivers to turn often gins while they sleep is through on board strategies.
On the left here, simple direct fired heaters, on the right a power unit, providing heating and air conditioning.
All of these have different characteristics.
We're informing companies about this and encouraging them to take a look and figure out what may be right for their fleet and operations.
There is no one solution for everybody.
Next another thing that really has been known to reduce fuel consumption is something called single wide tires.
This might be a typical configuration of tractors.
Single wide tires replace every set two of tire was a single one.
Only place it st not work is on the front of the tractor.
But what you would be doing is eliminating eight tires from the mix here.
And by going to single wide, you're reducing rolling resistance of the tires.
There is a slight aerodynamic benefit to it as well.
It's very small.
Most people are familiar with the aerodynamics of the tractors and the devices they have on it and that have been developed over recent years.
One place people haven't looked is to the trailers.
There is quite a bit that could be done .
I have a couple pictures this is the typical tractor trailer configuration.
You can see, it looks stream lined.
But the trailer still just a big box.
If you look where the white arrows are in this picture, the next will show you a few additions.
Gap farings, reducing the gap between the tractor and the trailer.
The tractor here as extenders going back from the tractor .
The belly faring underneath.
The next picture shows a better version of that.
The next two slides show another tractor trailer and a different version of trailer aerodynamics on the trail this, is an inflatable...
Have you to deflate it and take it off to get in the doors.
The previous version here, the rear faring is a new design by another company that you don't need to take this off as you open the doors.
They just collapse.
There has been an increasing interest in these types of devices.
Are a number of other things we encourage people to take a look at.
Driver training is a very big one.
And often low cost.
Things like progressive shifting.
Training in terms of just instructing dryers to turn off the engine, not idle.
Drivers are creatures of habit.
They're used to idling.
Improved freight logistics is one way to reduce the amount of idling that goes on, also.
Automatic tire inflation systems.
Reducing highway speed.
And interior modal shipping is something we're interested in through this program Baudz rail shipping is so much more efficient trucking.
So, our carrier partners take a look at these things.
We encourage them to look at them, consider them and figure out what is going to be best for them.
We provide them with a way to evaluate these things.
That is what we call the fleet model.
There are two versions.
A carrier version and a shipper version.
These are big spread sheet models.
Our partners fill in the carrier version with their base line data, the operation of their fleet today.
Giving us information on how many trucks they have, model years, how many miles they drive on average per year, how much fuel they use, then, devices on the truck.
They tell us about the aerodynamics on the trucks, idling reduction programs they have in place, and technologies they use fuel they use those strategies.
If so, how much.
What we do is the model then calculates their environmental foot print.
It shows them their CO 2, Knox and PM emissions.
And we then ask them to take that base line and then, project it three years into the future.
They set a goal for what they want to be doing and accomplishing in the next three years.
We asked them to then modify numbers, add trucks if they think they're going to expand.
Also, take a look at adding aerodynamics or single wide carries or something else to reduce their fuel usage and emissions.
Paced on the data they have in the model on their operations it will them to figure out back periods and come up with what makes sense for their base.
That is something partners tell us they enjoy and are getting a lot out of.
They have not been able to sit down and compare different things.
We indicate most of them are surprised to see how much fuel they're saving through the different things they have on trucks right now.
That is helping in terms of education.
The shippers don't trucks.
What they put in their model is they list each carrier, then, how much freight they ship with.
Most of them use weight or mile .
They put in each carrier and how much they ship with each carrier.
It converts into a percentage basis, then, a score for them as well.
The use of Smartway carriers is rated higher than the use of non-Smartway carriers, then, the same with them,
ask them to project three years in the future and show us what is going to change to increase the use of Smartway carriers.
A lot of people ask us, especially companies thinking about joining is what is in it for them?
They save money by saving fuel that.
Is people are very excited about.
There is a public relations type component there, which is the smart way logo.
They want to meet predetermined criteria.
They qualify to use the logo.
Most people are probably familiar with energy star.
Smartway was designed based on the energy star model.
We hope it will become the energy star of the freight transportation .
We hope they'll know that that company is implementing cleaner freight transportation.
So the logo for now can be used on corporate materials and advertising to indicate that they're employing cleaner transportation.
The ones owe the UPS box with the logo on it, we're finishing pilot projects with Federal Express and UPS to look at them putting logo on the boxes we all use every day.
And part of the public relations as suspect that we need to get awareness out to the public.
And to that end we launched a PSA campaign in December.
We have advertisements showing up now in trade journals like fleet owner and trance pore topics and others.
And also making their way into the main stream media.
We have a full page ad in the current issue of Forbes magazine.
It happens to be about hydrogen vehicles.
And also, in the current version of business week and a few markets in California and New York.
Word is starting to get out there.
We're looking to expand this campaign.
We have five ads with similar messages but a different look.
Here is an example of two of them.
Now I'll talk for a minute or two about idling programs which is the national transportation idle free quarters program.
We've initiated 5 projects in 17 states.
They have focused on truck stop electric fiction.
We gave out grants, over $1 million in grants.
Those funded the installation of a thousand new electrified parking spaces at truck stops this nine states.
We're excited to receive a congressional earmark for $5 million to promote deployment of idle reduction of summaries.
Also parks dressing idling another effort I'll give you more detail on in just a moment and a to the extent this is something you want to be paying attention to.
This map just shows location of our projects.
I'll skip past that quickly.
And this next slide is just a sum Marie of where we are a year after the launch.
107 carriers, 0 sippers.
Six are shipper-carriers.
Those are companies like Wal-mart.
They hire carriers to ship for them.
We a lot of the big ones.
If you take a look at transport topics top 20 list, it is a publication of the American trucking association.
In total for our partners we have accounted for about well over 250,000 tractors traveling over 14 billion miles a year.
So that is a real good start.
We're near about 5% in the in this story.
We're very excited about.
We're growing all the time N terms of shippers, shippers are starting to incorporate Smartway membership into the hiring and contract bidding process.
Most exciting is that Ikea announced in order to carry product for Ikea in North America you must be a Smartway carrier.
They're expanding that to Mexico.
We're to going to put together Spanish language materials now, too.
Nevertheless we're very excited they made that a criteria.
And carrier partners are interested inputting that Smartway logo on their trucks.
That creates a little bit of a issue for us in that we can't have a truck going down the road with a logo that maybe had a malfunction and is belching black smoke.
What we're doing is trying to come up with criteria that will allow us to put the logo on trucks that are low emissions and high fuel efficiency trucks.
Lastly, we're attempting to develop guidance for states to use in their development of the sips.
To quantify and use emission reductions from Lang haul trucks.
That is at the very early stages of development.
In the coming year this, is just a highlight.
First bullet I'll talk about in just a moment.
We're also going true the process of developing technology verification program.
We'll be able to have a test procedure where vendors can bring them and contest them using our protocol and partners and others can know these are very fine technologies.
And also in the next year we're going took launching the partnership into new categories including rail, chi mentioned before.
We're going to be signing up affiliates, groups like state trucking associations and others who help us to promote the program.
Truck parking locations like stops and others, they will be joining by agreeing to set aside a certain number of spaces as no idle zones.
Logistics companies starting to join already.
And that is going to help us very much as we also are moving into Smartway into ports.
Something that will take more time to develop, though.
So I'm going to conclude with a highlight of idling programs.
The first is the $5 million earmark we've received.
That is going to be used for three projects.
The first one is a small trucking company grant program.
We're going to subSidize the purchase of technologies like APUs for small trucking companies.
The second is a truck fleet technology vendor program.
We're going to work with the truck OEMs to help design a template that will allow companies to install power units on their own in a shorter amount of time.
It takes the trucks out of revenue service.
So this will allow them to do knit less than a day.
Finally our ports, borders, terminals and truck programs.
The request for April politics supposed to be out today.
Is it's been delayed slightly.
I was told we hope it will be out tomorrow.
We can't be sure, but in the near future that will be hitting the streets.
And the last thing is something of interest, I think will be of great interest to the states is our development of a model state idling regulation.
How this came about is that we had heard about half of the states have some form of an idling regulations.
And further states have had these on the books 30 years never enforced them, now, all of a sudden they're being enforced.
Some is that their spotty in enforcement to address this we've decided to put together a model regulation that states could use if they wish to adopt idling regulations
or looking to re-legislate their regulations.
We're not looking at doing a national regulation.
We're just saying if they're interested we're going to develop a model we recommend they use to be most effective.
What we're going to do to parish this is bringing together states, environmental agencies, trucking associations, and trucking companies for round table discussions.
These will be small meetings, 0-15, 20 people to get to the heart of the matter and discuss details, we're going attempt to reach consensus on things like time limits, how enforcement should be done.
What penalties should be, et cetera.
We're going to hold five work shops from May to July.
The first one in Baltimore on May 6.
Then hoping to issue a model by late summer.
We're happy to say a number of states indicated they're going to hold off on development of regulations or on their review of existing ones until this effort is finished.
That is what we were hoping for.
That is basically it.
I'll end there.
That is an overview what smart way is all about.
I guess I'll just turn it back over.
Thank you, Mike.
I'll go ahead and leave this slide up on the screen so everybody can copy down information.
We're going to start the question and answer session.
I'm going to start questions typed in the chat area.
Mike since you finished we'll go ahead and start with questions for you.
First question is just kind of following up on what you closed with, do you plan to offer the grant program in future years, too?
To the extent we have the funds to do it, absolutely.
This year, we were able to do it because by received this fairly large earmark.
We hope that similar funds will be able in the future.
If they are, we'll be going ahead to do things like that.
And with regards to the idling reduction grant is an 80-20 split?
Do carriers need a governmental sponsor?
Small business grants, we, I can't say, unfortunately now, yet, what it's going to be.
What we're going to be doing is putting out this RSA looking for an entity to run this design and program for us.
So we have not decided and by ourselves probably will not be decide what those breakdowns will be.
80-0 or 50-50 or what.
Outside of the second part was...
Do the carriers need a governmental sponsor?
This RSA is going to be open to nonprofit type organizations to run this program for us.
Each individual company does not need a sponsor.
Are there any coordination efforts between EPA Smartway and the clean cities programs?
We do work some with clean cities which participated in a number of clean cities work shops.
I think the recent one was in mun.
I think it focused on smart way.
Interest there has blood pressure discussions and some work on the idling side of things.
That is basically it.
Next question is what happens after smart way participants participated for the three-year period?
How does EPA monitor and ensure continuity of the program?
Are there incentives provided?
I'll answer the last one first.
Incentives is like, I said it's largely the benefits of saving money for the trucking companies.
For shippers, like Nike and Ikea and home depot it's the public relations side of things.
If they can qualify they can let the public know they ship to the store was cleaner transportation modes.
In addition to the computer tool I mentioned and when they joined.
We assign one of our staff to work this them so they have benefit of our help.
What is going to happen after three years is a great question.
We're starting to think about that right now.
We don't have an answer.
It's something we're looking at.
We envision the program will continue.
It could look a little bit different.
Depending on how many partners we have.
It will tee pend on how many partner as chief their goals already.
We are asking them to accomplish more.
So, it's something I don't have an answer to right now.
Something we're starting to think of now that we have two years still to go on that.
Then, the second part of the question was about monitoring?
How does EPA monitor and ensure continuity of the program?
We're working closely with partners all the time.
They are required to do two things once they sign up.
Give us base line data, an action plan in the fleet model, and then, we do require annual reports from them,
also so we can see what they've done in the past year, we aren't going to be verifying it.
This is a voluntary program.
But we're going to have an awards program and we'll be doing more verification for anybody that would win those awards.
the next question is are carrier freight modules scenario spread sheets available for down load?
If they're talking about the fleet model, yeah.
If you go to our web site, which is on the screen here now, you can find the fleet model in there if you go to the partner section.
The carrier one is a very big excel spread sheet.
A bit scary looking.
What we do is we call them up and we walk them through, give them a tutorial.
It takes about 20 minutes.
Next question is does the single wide tire lower the contact area of the tire?
If so, the PM 0 and PM 2.5 could be lowered by lowering part cell matter thrown from the tires.
The surface area that hits the road is lower.
That will ring resistance in lowered in that way.
We -- I don't believe -- looked into the matter from the tire itself.
But it's an interesting comment, I think.
It's something I can pass on to our technology team looking at the impacts of tires.
We just completed some testing, a single wide tires in terms of fuel economy and had good results but, like I said, having to address this issue.
And we're now going to move on to some questions for Sergio.
I know that you typed in comments in the chat area.
I'm going to ask questions that way, you can expand on comments and people have called in but aren't on the web site with hear as well.
The first question is you mentioned that impacts of operational strategize are not well understood.
Are there any examples of a region that has done a decent job quantifying emission benefits?
I think in general, operations oriented strategies have been looked at, I think closely often under the umbrella of congestion management.
We didn't conduct a broad assessment across a large amount of regions but it's likely there isn't that much there.
And on the emission affects of freight oriented strategies, that other than things that have been done on the idling side, which there is a body of literature associated with that.
And obviously the importance of that is to be noted.
But I think there more work to be done.
More conventional operations strategies that look at smoothing traffic flow, speed and parking restrictions.
And that type of stuff.
next question is the international maritime organization has a treaty going into effect that regulates ship emissions,
15 countries control over a half of the world shipping fleet have approved their participation in the treaty.
Does the U.S. government has V.plans to sign this treaty?
The U.S. has not ratified MAR pole annex 6 which is what is relevant here.
If it does, then that can be enforced against basically any foreign flag ship that visits a U.S. port, whether or not the state of that ship, the flag that have ship has ratified the treaty.
But until that happens, only a small fraction of what is called category three marine diesel engines that are operating in U.S. waters are subject today to emissions regulations.
The U.S. Senate has a decision in front of them.
I should mention there was a mini discussion going on in the chat area that began with a question we don't allow substandard aircraft into the air ports so why can't we regulate ships into ports?
We found this also doing work allowing Mexico truckers to operate beyond commercial zones.
And the issue is that because that was required by NAFTA, trade treaties are under the executive branch, I guess the President of the United States.
So EPA didn't have the authority to regulate those trucks.
Nor do they regulate the ones coming from Canada.
It's kind of parallel to that.
When you're talking about trade.
The political process, I think is a little different.
Thank you. jumping back to you, Mike, another question for you in the meantime.
Question is if the tire contact with the pavement is lessened, that translates into more damage from the roadway from single tires as opposed --
if the tire contact with the pavement is lessen that had translates into more damage to the roadway from single tires as opposed to the current configurations.
As EPA done research open the costs for the highways as a result of using single wide tires?
Your phone might be on mute.
It was on mute, thank you.
A good question.
I was typing a response.
I'll still send it in just a moment.
That is absolutely true.
Is that in tier 30, we believe that the increased pressure on each tire, and then on the pavement could result in some additional damage to the roadway.
We haven't done any research that I know of.
And in fact we have been talking with federal highway about this issue last week we had a meeting and we'll be continuing those discussions to look into this.
In fact, I believe Canada not allow single wide tires to be used for this reason.
We haven't been able to find research done to show what the impacts are.
It definitely an important point and something we're looking into.
I just sent that anyway.
It's up there.
Go going back to Sergio.
During the presentation you talked about a tool box that uses operations and technology strategies to reduce emissions.
Can you elaborate?
Is it available to everyone?
Well, my -- I refer to a tool box from a conceptual perspective.
I think that is something that could be developed in a more formal way down the road.
The report that will be coming out chapter four talks about emissions mitigation strategies, going through some details technology oriented strategies, and operations oriented strategies.
And Arctic are pretty retro fit, repair, rebuild types of things.
On the operations side we discussed a little bit and they're really, I think, at this stage,
mostly you know a laundry list of the types of thing that's could be done with an assessment of whatever may be available.
And as we move forward, I think we need to move toward that tool box that provides more concrete information
on not only implementation considerations about awe long the lines of operational strategies but on very concrete information of the types of reduction potential attributable do-to-an approach.
The development is a worth while activity.
Okay, thank you.
At this point we don't have anymore questions typed into the chat area.
But we do have a few more minutes.
We can open up the phone lines and see if anybody has questions over the phone.
Ladies and gentlemen if you would like to ask a question please press star followed by one on the touch tone telephone F your question has been answered
or would like to withdraw press star followed by two.
Questions taken in the order they are received.
We'll wait a minute for a list to compile, Ma'am.
Ma'am at this time have you noI'd audio questions.
Before we close, then, I'll give you a chance with closing thoughts.
Sergio did you have anything else you wanted to add?
Eye wanted to note the report I referenced dr dr referenced, the final version if delivered in April.
Person 9 you may want to contact to ask questions or get a copy.
Her name is Diane Tershetta.
Mike was there anything you wanted to add?
Thanks for joining us and encourage anybody who is interested in investigating how their organization might be able to work with Smartway to get in touch with me.
We're looking for new partners to help news accomplishing goals for the program.
And in particular, also on the idling work shops we're going to be putting together.
Well, thank you to both of you and thank you everybody who attended today.
As I mentioned before, this event was recorded and the recording will be available within the next week on talking freight web site.
The power point presentations will be available and I will be sending out an e-mail to let you know when everything is available.
The next seminar held May 18th will focus on context sensitive design.
I encourage to you visit the talking freight web site and sign up for this seminar as well as June seminar posted as well.
I encourage you to join the freight planning list service.
Thank you; enjoy the rest of the day.
Thank you for your participation.
This concludes your presentation.
You may now disconnect.