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. 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

4. 4 Mobile Source Diesel Emissions Inventory by Sector (2004) NO x (6.3 million tons) PM 2.5 (305,000 tons) freight 56% ports 4% school bus 1% transit 1% agriculture 8% construction 11% non-port marine 13% other nonroad 4% other highway 3% freight 32% transit 0% school bus 2% other highway 3% ports 5% other nonroad 9% non-port marine 9% agriculture 19% construction 21%

5. 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

6. Regulatory Strategy Standards 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. 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

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. 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 Why Diesel Retrofit?

11. 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 Why Diesel Retrofit?

12. 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. 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 Why Diesel Retrofit?

14. Federal Funding National 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/ http://www.northeastdiesel.org/ –Mid-Atlantic Diesel Collaborative- DC, DE, MD, PA, VA, WV http://www.dieselmidatlantic.org http://www.dieselmidatlantic.org –Southeast Diesel Collaborative- AL, FL, GA, KY, MS, NC, SC, TN http://www.southeastdiesel.org http://www.southeastdiesel.org –Midwest Clean Diesel Initiative- IL, IN, MI, MN, OH, WI http://www.epa.gov/midwestcleandiesel/ http://www.epa.gov/midwestcleandiesel/ –Blue Skyways Collaborative- AR, IA, KS, LA, MN, MO, NE, NM, OK, TX http://www.blueskyways.org 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.orghttp://www.westcoastcollaborative.org 19

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