1. U.S. EPA SmartWay Transport Partnership
GSA Transportation Forum
Denise Kearns
March 21, 2011
Good Afternoon. Thank you for inviting me to speak today about EPA’s SmartWay Transport Partnership. Briefly, for those who may not be familiar with SmartWay, SmartWay is a VOLUNTARY public-private initiative developed in collaboration with the transportation industry. EPA launched SmartWay in 2004, and the primary goal of the program is to improve efficiency and lower emissions from the freight sector.

2. Overview Executive Order 13514
Improve federal government’s environmental, energy and economic performance
Supply chain, transportation & goods movement
Reduce CO2 emissions and energy efficiency
EPA SmartWay and Goods Movement
Tools to track, report & improve supply chain performance
EPA SmartWay Partnership & Transportation Sustainability
Achieving progress through collaboration
In my presentation today, I will briefly address the directives President Obama outlined in EO 13514, where he called on federal agencies to strengthen their environmental, energy and economic performance. We will take a look at the supply chain, specifically how important transportation and goods movement are to improving the sustainability of organizations, including the federal government. Next, I will provide some background on the tools and resources EPA’s SmartWay program has developed to track, report and improve supply chain performance through transportation and logistics management practices. Last, we will look at the overall progress EPA and its SmartWay partners are making.

3. Executive Order 13514 Requires federal Agencies to measure, manage and
reduce greenhouse gas GHG
Develop sustainability plans that reduce emissions,
save money and create a clean energy economy
Lead by example: leverage federal purchasing power
to promote environmentally responsible products,
technologies and practices
Presidential Executive Order 13514
I am sure many of you in the audience are much more familiar than I with Executive Order It was issued by President Obama almost 3 years ago to reduce carbon emissions and save on energy costs and use. Specifically the order directed federal agencies to develop a plan to measure, manage and reduce carbon emissions. These reductions are to be achieved by reducing energy consumption – both the electricity used to heat buildings and the petroleum used to fuel vehicles – conserving water, reducing waste and contributing to sustainable communities.
At another level, the order also was designed to encourage federal agencies to lead by example. As one of the largest consumers of energy, the President asked us to leverage our position and to collaborate with our suppliers and customers and find ways to promote environmentally responsible products, technologies and practices.
NOTE:: federal govt:
Occupies nearly 500,000 buildings
Operates more than 600,000 vehicles
Employs more than 1.8 million civilians
Purchases more than $500 billion goods and services annually

4. Common Sources of Federal GHG Emissions*
My understanding is that under executive order and GSA policy guidance, federal agencies are now reporting emissions associated a broad range of activities that fall within their organizational boundaries – As shown here – GHG emissions are to be inventoried and categorized as Scope 1, Scope 2 or Scope 3 emissions.
Scope 1 emissions: direct GHG emissions from sources owned or controlled by federal agencies
Scope 2 emissions: direct GHG emissions from consumption of purchase electricity, heat or steam
And Scope 3 emissions: other indirect emissions from sources not owned or directly controlled by a federal agency:
- such as emissions from employee commuting and travel, consumption of purchased electricity, AND
EMISSIONS GENERATED IN THE FEDERAL SUPPLY CHAIN, including emissions from the transportation of goods procured with federal funds.
Focus of my talk will be on how EPA’s SW program is supporting private and public sector in reducing CO2 emissions from the freight industry, which has the twin benefit of increasing energy efficiency and reducing fuel use in trucking fleets.
*Source: EO Working Group 4

5. Sustainable Supply Chain Management
Goods movement,
Transportation & delivery
Product concept, design
Parts and raw materials
Manufacturing processes
Inventory
Product Disposal
There are several elements of the supply chain –
Starting with the initial concept and design of product,
Use of raw materials and parts
The manufacturing process
The transportation and delivery of products and goods
All the way through to inventory and disposal.
EPA water, waste and toxic substances offices partner with industry and other federal agencies in all of these areas. SmartWay is the agency’s flagship voluntary program developed specifically to addressing emissions from the freght and goods movement industry, that is emissions that are generated by trucks and rail to transport and deliver goods.

6. U.S. Transportation Sector GHG Emissions
Transportation accounts for roughly one-third of total U.S. GHG emissions
Transportation is critical to the health of our economy – we depend on it for the delivery of goods and services, our quality of life – including our freedom of mobility – a personal freedom that is especially important to Americans – these benefits, however, are not free – transportation does impose costs – considerable costs to public health and the environment.
Transportation – cars, trucks, aircraft and boats -- accounts for roughly one-third of total U.S. GHG emissions – and also is a source of many other pollutants, including particulate matter, nitrogen oxides and many different toxics. Pollution from freight movement, also can affect communities and neighborhoods.
GHG (1,820 mmt CO2-eq, 2009)
DRAFT INVENTORY OF U.S. GREENHOUSE GAS EMISSIONS AND SINKS: 1990 – 2009
FEBRUARY 2011

7. Heavy-Duty GHG Contribution by Category Represents ~20% of Mobile Source GHGs
Within transportation – the heavy duty trucks – the long haul freight tractors, combination day cabs and vocational trucks that haul the majority of our goods, account for about 20 percent of all mobile source greenhouse gas emissions.
Improving the efficiency and reducing emissions from heavy duty trucks are at the heart of EPA’s SmartWay program. We also are working with the rail sector, but to date the focus – and success of the program – has been to reduce emissions and improve sustainability within the freight trucking sector.
EPA MOVES, 2005

8. Business Case for Sustainable Freight
As I mentioned earlier – by helping to reduce carbon emissions – SmartWay offers its partners the twin benefit of reducing fuel use and costs – which within the freight industry are one of the largest – if the not the largest -- operating cost that a freight company has.
In fact persistently high diesel costs – along with corporate commitments to improve supply chain sustainability – are what’s driving shippers and their carriers – including GSA and other federal agencies – to initiate new and creative strategies to move goods more efficiently, at lower cost and with smaller environmental footprints.

9. Transportation Sustainability Starts with SmartWay A Value Proposition
Carriers:
Gain competitive advantage:
Fuel efficiency, savings
Preferred status
Reduce emissions
Motivated to improve fleet performance and operations
Recognition and PR value with SmartWay brand
Shippers & Logistics Management:
Top of the supply chain, motivated to reduce carbon footprint
Drive marketplace demand
Give preferred status to SmartWay Carriers
Better data improve their operations
Recognition and PR value with SmartWay brand
For many carriers, transportation sustainability starts with SmartWay.

10. SmartWay Tools Calculate Freight Emissions
Measure
Benchmark
Improve

11. EPA SmartWay Achievements
3,000 Partners
Top 100 U.S. truck carriers Fortune 500 Shippers from every
All Class 1 Rail lines from every business sector
- Major logistics firms
Since 2004, SmartWay Partners have saved:
16.5 million metric tons of CO ,000 tons NOx
9,000 tons PM million barrels of oil
$6.1 billion dollars in fuel costs
Equivalent to taking over 3 million cars off the road for 1 year

12. Some of SmartWay’s Partners
U.S. General Services Administration
Freight Transportation Management

13. U.S. General Services Administration Transportation Services
First SmartWay Partner within federal
civilian government
Joined as logistics management partner
Gives GSA access to performance metrics of
Transportation Service Providers (TSP)
Benchmark and track efficiency, energy use,
emissions 13

14. U.S. General Services Administration Transportation Services
Enables GSA to easily identify “green”
Transportation Service Providers
Provide TSP performance information to
other federal agencies
Drive environmental efficiency; lead by example
Achieve EO objectives

15. Questions?
(helpline)