Transcript Slide 1

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
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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
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Construction
Ports
Agriculture
School Bus
Freight
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A Comprehensive and Collaborative
Approach to Diesel Emissions Reduction
Common Aspects--
Highway
Tier 2 Lightduty (1999)
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Systems approach– ULSD enables clean
technologies.
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Very large environmental and public
health benefits.
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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.
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Responsive to needs of states to meet
NAAQS.
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Collaborative process.
2007/2010
Heavy-duty (2001)
Clean Nonroad
Diesel (2004)
Locomotive/Marine
Nonroad
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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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
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Results Screen
• Divided into 2 Sections
– Annual/Daily
– Lifetime
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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
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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
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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
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Diesel Emissions Reduction Program
Federal Component
• 70% to the Federal Component
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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
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>= 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.
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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)
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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
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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.
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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
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For More Information
Visit EPA’s National Clean Diesel Campaign
Website
www.epa.gov/cleandiesel