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National Clean Diesel Campaign Assistance for State Programs Peter Murchie WRAP Mobile Sources Forum Workshop on Developing and Implementing State Funded Retrofit Program June 7, 2007 Overview • National Clean Diesel Campaign (NCDC) • NCDC Tools and Technical Assistance for: – Illustrating the need for clean diesel programs – Designing a clean diesel program – Implementing a program – Evaluating performance • Funding Opportunities 2 National Clean Diesel Campaign2 Components • Regulations – Heavy-Duty Highway New Engines – Nonroad New Engines – Locomotive and Marine Engines • Innovative Program to address existing diesel fleet – – – – – Construction Ports Agriculture School Bus Freight 3 A Comprehensive and Collaborative Approach to Diesel Emissions Reduction Common Aspects-- Highway Tier 2 Lightduty (1999) • Systems approach– ULSD enables clean technologies. • Very large environmental and public health benefits. • Current regulations: by 2030, PM reduced by ~250,000 tons/year, NOx by ~4 million tons/year. Annual benefits are expected to exceed $175 billion versus costs of approximately $11 billion. • Responsive to needs of states to meet NAAQS. • Collaborative process. 2007/2010 Heavy-duty (2001) Clean Nonroad Diesel (2004) Locomotive/Marine Nonroad 4 National Clean Diesel Campaign Goal: Reduce emissions from the legacy fleet of over 11 million diesel engines by 2014 NCDC Program activities: • Technology verification • Providing technical and policy analysis • Coalition-building and outreach • Establishing projects through grant competitions EPA’s Clean Diesel Collaboratives • 7 clean diesel collaboratives across the nation • diverse coalition of businesses, government, environmental groups and community organizations, industry, and others • identify innovative, incentive-based projects • grant EPA clean diesel funds 5 Clean Diesel Progress • 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. • More than two million children ride to school in cleaner buses, and approximately 30,000 school buses are cleaner • School bus retrofits will lead to 20,000 fewer respiratory symptoms and 14,000 fewer asthma exacerbations in children • More than 500 shipping and trucking companies representing more than 300,000 diesel trucks have joined the SmartWay Transport Partnership • More than 9,000 machines were retrofitted and more than $300 million was committed to make construction engines cleaner 7 The Case for Clean Diesel Protecting Public Health • Diesel exhaust is likely to be carcinogenic to humans • Diesel emissions cause: – thousands of premature deaths, – hundreds of thousands of asthma attacks, – millions of lost work days and – numerous other health impacts every year. 8 The Case for Clean Diesel Clean diesel is cost-effective: • Diesel retrofits can provide a health benefit-to-cost ratio of up to 13:1 • Diesel retrofits can result in PM reductions as low as $11,100/ton • Retrofit NOx reductions can be as low as $2,000/ton • Fuel savings technologies can result in net financial gains NCDC Resources: • Three reports on cost effectiveness available • Diesel Emissions Quantifier (DEQ)- an online emissions calculation tool for specific projects 9 The Case for Clean Diesel Meeting Air Quality Plans • Emission reductions from diesel retrofits can help states meet 8-hour ozone and PM2.5 air quality standards • Clean diesel strategies offer cost-effective, immediate reductions • EPA has developed three SIP and conformity guidance documents for control measures that reduce diesel emissions – Diesel retrofits – Long-Duration truck idling – Locomotive idling 10 The Case for Clean Diesel • Broad Stakeholder Support – Industry, government, community and environmental groups agree - cleaning up diesel emissions is important – Shared responsibility for clean air and public health – Clean diesel collaboratives foster partnerships and support • Implementation Advantages – Diesel retrofits can be implemented quickly – Several projects and programs to learn from – Resources and leveraged funds available 11 NCDC Tools for Designing a Program Identifying and Targeting fleets • EPA emissions inventory and models: (http://www.epa.gov/otaq/models.htm) • Info on technology options and tools for specific sectors on our website Supporting proven technologies • EPA’s Technology Verification Program • CARB’s Technology Verification Program 12 NCDC Tools for Designing a Program Resources for designing incentives • Reports: – "Recommendations for Reducing Emissions from the Legacy Diesel Fleet" and – “Emission Reduction Incentives for OffRoad Diesel Equipment Used in the Port and Construction Sectors” • Construction Air Quality Language Clearinghouse • Case studies and model programs 13 Tools for Implementing a Program Regional Clean Diesel Collaboratives • Provide technical assistance • Help promote a program • Foster partnerships • Identify additional resources for leveraging • Provide recognition for successful programs 14 Tools for Implementing a Program EPA and CARB’s Verified Technology List • Provides list of proven technologies • Identifies engine operating criteria and conditions necessary for technologies to achieve expected results • Depicts the estimated emissions reduction of a technology • Vendor contact information Diesel Emissions Quantifier (DEQ)- User friendly tool for estimating emissions reductions and cost effectiveness • Allows fleet managers and others to evaluate different technologies for their fleet • Allows potential grant applicants to provide emissions reductions and cost effectiveness information in applications 15 Results Screen • Divided into 2 Sections – Annual/Daily – Lifetime 8 Evaluating Program Performance • Verification levels for EPA and CARB verified technologies • For SIP and conformity emissions credit, EPA recommends using the National Mobile Inventory Model (NMIM) – EPA will review alternative approaches on a case-by-case basis – For more information, consult EPA’s SIP and Conformity Guidance for diesel retrofits 17 Federal Funding Opportunities National Clean Diesel Campaign • FY 2003-2007 – $32 million for Clean School Bus USA – $6.1 million for other clean diesel activity • FY 2008 budget – President request: $35M – House subcommittee: $50M – Final funding amount to be – determined 18 Diesel Emissions Reduction Program Energy Policy Act of 2005: • Authorizes more than $1B over 5 years for grants and loans that support clean diesel activities Program divided into Federal and State components – 70% for federal grant/loan programs – 30% for State programs • All fleets eligible for assistance from both Federal and State components • Program funding, allocations, criteria, eligibility, etc. will be subject to final Congressional appropriation language 19 Diesel Emissions Reduction Program Federal Component • 70% to the Federal Component • Eligible entities – Regional, state, local, tribal or port agency with jurisdiction over transportation or air quality; – Nonprofit entities (air, diesel, transportation related) • Use of funds – – – – >= 90% for verified/certified technologies <=10% for emerging technologies 50% to benefit public fleets Retrofit Technology, Engine Replacement, Engine Repower, Engine Rebuild, & Reduction of long-duration idling • The criteria for prioritizing projects is in EPAct. 20 Diesel Emissions Reduction Program Priority Projects • Section 792(c)(3) states that priority goes to projects that: – Maximize public health benefits – Are the most cost-effective – Are in areas with high population, air quality issues, and air toxic concerns – Are in areas that receive a disproportionate quantity of air pollution (i.e. truck stops, ports) – Maximize the useful life of the engine – Conserve diesel fuel and utilize ULSD (nonroad projects) 21 Diesel Emissions Reduction Program State Component • 30% to the States • 20% to States with EPA approved application – If all 50 States qualify, 2% for each – If less than 50 States qualify, 2% plus population formula • 10% for State matching incentives – If a State matches their allocation, they can receive an additional 50% of their allocation • Unclaimed funds go to the federal program 22 Innovative Financial Strategies are Necessary! • Grant programs and other government funding programs will not achieve our clean air goals. • We need creative, sustainable funding and financing strategies for emission control technologies for all sectors: Trucks, school buses, locomotives, freight, construction, agriculture, ports, etc. 23 11 Innovative Financing Smartway Truck Loans: • EPA and SBA National Environmental Loan Program is now available • Will finance fuel saving strategies (APUs, aerodynamics, tires) Smartway PLUS Loans: Low interest, more flexible loans – More environmental controls = Better financing rates and/or terms – Trucks with after-treatment are less expensive that those without – Community Investment Banks, Public/Private investment blends Information available at: http://www.epa.gov/otaq/smartway/index.htm 24 For More Information Visit EPA’s National Clean Diesel Campaign Website www.epa.gov/cleandiesel