1. Office of Transportation & Air Quality Voluntary Diesel Retrofit Program January 27, 2005 “Reducing emissions from all diesel engines”

2. Office of Transportation & Air Quality 2 EPA’s Clean Diesel Programs NonRoad National programs will address diesel emissions from new engines as standards phase inNational programs will address diesel emissions from new engines as standards phase in –NonRoad Rule published in May, 2004. Voluntary Diesel Retrofit ProgramVoluntary Diesel Retrofit Program Objective: By 2014 reduce emissions from the approx 11 million engines in the legacy fleet –Strategy has a sector-specific focus with a geographic emphasis where appropriate (i.e., Nonattainment areas, rural/urban, sensitive population) –Several sectors currently being targeted: School BusesSchool Buses FreightFreight ConstructionConstruction PortsPorts

3. Office of Transportation & Air Quality 3 Construction Sector Objective: Reduce emissions from major construction projects in non-attainment areas (public & private)Objective: Reduce emissions from major construction projects in non-attainment areas (public & private) Background: Major metropolitan areas have increasing major construction activity (highways, port and airport expansions, buildings)Background: Major metropolitan areas have increasing major construction activity (highways, port and airport expansions, buildings) Strategy :Strategy : –Partner with Association of General Contractors (AGC) to develop incentives for private fleets to engage in retrofit activity –Work with American Public Works Association and Association of Metropolitan Planning Organizations to develop guidance and equipment specifications for public projects and fleets –In 2005, EPA will initiate several pilot projects to demonstrate various innovative emission control strategies –Technology strategies: refuel, retrofit, rebuild, repower, replace

4. Office of Transportation & Air Quality 4 Ports Sector Objective : By 2014, achieve “no net increase” in emissions at ports that are expandingObjective : By 2014, achieve “no net increase” in emissions at ports that are expanding Background : US international waterborne freight is expected to triple by 2020Background : US international waterborne freight is expected to triple by 2020 –Ports are expanding, vessel size is increasing and diesel operations contribute significant emissions to local air quality StrategyStrategy –Partner with American Association of Port Authorities to develop appropriate incentives and programs for all US ports –Expand from public fleet leadership to influence tenants and other fleets in ports –Work to include cleaner diesel strategies into ISO 14001(Env. Mgmt Systems) certification –Direct emission controls: Cleaner fuels, retrofits, replacements, repower –Energy efficiency: Reduced idling, improved queuing, inter- model shifts, on-shore power

5. Office of Transportation & Air Quality 5 NonRoad Technologies Cleaner FuelsCleaner Fuels –ULSD, CNG, LSD Verified TechnologiesVerified Technologies –1 by EPA, 6 by CARB –Include Emulsified fuel, DOCs, Active DPFs, Crankcase controls, DPFs for stationary emergency generators, and SCR Range of Emissions ReductionsRange of Emissions Reductions –PM: 20% - 85% –NOx:20% - 80%

6. Office of Transportation & Air Quality 6 Funding Sources State Programs (Examples)State Programs (Examples) –Texas TERP (~$130M over 3 years) $42M spent-to-date for over 100 projects (‘02 - 8/04)$42M spent-to-date for over 100 projects (‘02 - 8/04) $81M for another 200 projects are subject to final negotiations$81M for another 200 projects are subject to final negotiations –California’s Carl Moyer ($61M secured this year) Approx $70M made available 98-03Approx $70M made available 98-03 –Washington ($5M/yr over 5 years) –New York (School Bus Program $5M/year) NYSERDA recently announced $2M to assist in the development and evaluation of retrofit technologiesNYSERDA recently announced $2M to assist in the development and evaluation of retrofit technologies FederalFederal –Over last 2 years, $12 M (CSB, SmartWay, Retrofit) Leverage at over 2:1Leverage at over 2:1 –Promoting SEPs targeting Construction and Ports Sectors Current State/Federal SEPs total over $35 MCurrent State/Federal SEPs total over $35 M

7. Office of Transportation & Air Quality 7 Coming Up Retrofit SIP GuidanceRetrofit SIP Guidance –Plan to release draft in next 2 months Retrofit Model for calculating reductionsRetrofit Model for calculating reductions –Spring release for highway vehicles –NonRoad release within 6 months ICF incentives study draft reportICF incentives study draft report –February/March of 2005 –Comparing grant programs vs. tax incentives vs. contract specifications (allowances) vs. non-monetary incentives.