Saving Fuel, Money and the Environment: EPAs SmartWay Transport

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Saving Fuel, Money and the EnvironmentEPAs
SmartWay Transport

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The freight industry is cornerstone of U.S.
economy

• Over 500,000 interstate trucking companies
  operating in the US
• 8,600,000 million jobs
• gt 3,000,000 truck drivers
• Heavy-duty freight industry transports more than
  9.1 billion tons of cargo each year worth more
  than 7 trillion

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But the industry is facing many challenges

• Increased fuel and maintenance costs
• Pressure to improve operations
• Need for new logistical arrangements
• Demand for smaller more frequent shipments
• Capacity shortfalls and congestion that can
  degrade predictability and reliability of freight
  service.

• Reliability and predictability are a shipper's
  most important criteria for freight
  transportation in an era of tightly integrated
  operations, limited inventory, and just-in-time
  manufacturing and retailing.
• Today, the freight services industry is seeing
  diminishing returns from deregulation and there
  are few remaining opportunities for further
  deregulation.

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The Rules are Changing
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Diesel Fuel Prices on the Rise

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Fuel Prices Impact the Industry

(Companies with 5 or more trucks)
Source A.G. Edwards, US Department of Energy,
and ATA
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And theres an environmental cost to the freight
industrys fuel consumption

• Currently, truck and rail
• Travel over 200 billion miles
• Consume over 35 billion gallons of fuel
• Account for nearly 20 of transportation related
  energy use
• Produce approximately 350 million metric tons of
  CO2

2012
2003
45 Billion Gallons
35 Billion Gallons
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Growing Concerns About Transportation Climate
Change
US Oil Consumption
Transportation accounts for about 2/3 of oil
consumption and about 1/3 of total CO2 emissions.
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Sources of US Carbon EmissionsIncludes all fuel
sources
US Carbon Emissions Includes all fuel sources
Personal Vehicles 19
Freight Transportation 13
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Transportation Greenhouse Gas Emissions Continue
to Increase
Source US Emissions Inventory (April 2005) EPA
430-R-05-003
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To address these challenges, EPA partnered
with industry leaders to create SmartWay
Transport
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What are the Goals of SmartWay Transport?

• Freight carrier goals
• Public recognition
• Better public image
• Better relationship with government

• EPA goals
• Reduced CO2 emissions
• Improve energy security
• Better relationship with the freight industry

• Freight shipper goals
• Better understanding and control of supply chain
  transportation foot print
• New ways to promote corporate citizenship and
  sustainable business practices

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• SmartWay Transport promotes cutting edge fuel
  efficiency technologies that save money, save
  fuel and protect the environment

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• Programs Under SmartWay Transport
• SmartWay Transport Partnership
• National Idle Free Corridors Program
• SmartWay Technologies
• SmartWay Innovative Financing and Upgrade Kits

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The SmartWay Transport Partnership

• The flagship program under this initiative,
  SmartWay Transport Partnership
  is an innovative collaboration between EPA
  and fleet owners, rail companies, shippers, 3PLs
  and truck stops to increase market penetration
  and use of fuel-saving technologies and smart
  strategies like long duration idling reduction
  and speed management.

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Who can Partner with SmartWay Transport?

• Carriers any size trucking firm
• Baseline performance of fleet commit to improve
  efficiency w/in 3 years
• Earn logo with 40 CO2 efficiency rating
• Shippers hire contract carriers
• Baseline freight shipped, commit to improve
  performance within 3 years
• Earn logo with 50 freight shipped (effectively)
  via SmartWay Carriers
• Logistics (3PLs) contracted by shippers
• Earn logo with 5 freight shipped or 20 new
  contract carriers per year
• Affiliates trade associations, NGOs,
  non-profits, etc.
• Promote goals of Partnership, help market Partner
  efforts and successes

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Hundreds of companies have partnered with EPAand
are saving money and protecting the bottom-line.
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What are the Carriers doing?
Carriers adopt fuel efficient technologies and
strategies

• Idle reduction
• Improved aerodynamics
• Improved freight logistics
• Automatic tire inflation

• Driver training
• Advanced lubricants
• Weight Reduction
• Speed Control
• Etc.

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Advanced Truck Stop Electrification
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Direct-Fired Bunk Heaters
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Auxiliary Power Units
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Single Wide Tires
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Trailer Aerodynamics
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Trailer Aerodynamics
Rear Fairing
Gap Fairing
Belly Fairing
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What are the Shippers doing?
Shippers implement facility and operational
measures to improve efficiency

• Intermodal shipping
• Pick-up delivery scheduling
• Full truck loads
• Preferential docking

• Warehouse improvements
• Electric forklifts
• Driver comfort stations
• Idle-reduction at docks
• Etc.

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Shipping more freight with SmartWay Transport
Carriers
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Intermodal Shipping
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Facility and Equipment Improvements
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No-Idling Polices at Loading Facilities
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SmartWay Partners are saving as much as 10-20 in
fuel costs.

• That means that fleet owners are saving as much
  as 4000 per truck per year
• CFI By outfitted 100 trailers with wide-base
  tires, In 2004 CFI estimated savings of
  approximately 805,000 gallons of fuel
• Styline For just 14 trucks with auxiliary power
  units, 23 trucks using truck stop
  electrification, and 118 trucks bypassing weigh
  stations, Styline is saving 86,442 gallons of
  diesel fuel per year. At the current price of
  diesel, this amounts to cost savings of
  approximately 191,000
• Whole Foods projects savings of 4 on total fuel
  costs due to the use of tractor belly fairings.
  Projected yearly savings are 16,931 gallons,
  based on 2,582,032 miles traveled by the fleet.
  At 2.50 per gallon of diesel, this equates to
  42,328 saved per year. Each gallon saved will
  reduce carbon dioxide emissions by 22 lbs, saving
  Whole Foods a total of 186 tons per year.

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New incentives are making these technologies are
more accessibleeven to the most cash-strapped
truck owner

• SmartWay Upgrade Kits
• Innovative bundles of technologies that save fuel
  and reduce emissions and, with creative low
  interest financing packages, put money in
  drivers pockets.

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SmartWay Partners are proud transport leaders,
promoting their participation and encouraging
everyone in the industryeven their
competitorsto sign up and start saving fuel
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What are the Partners saying?
The very worst thing that'll happen to you is
you'll save fuel, which means you'll make more
money. Dave Berry, VP, Swift Transportation
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• Many people believe that business and the
  environmental are mutually exclusive concerns.
  While this might have been the case in the past,
  I dont believe we can legitimately consider this
  to be the case today. Business must do its part
  to provide jobs and sustain out national and
  global economies. At the same time, we require a
  clean environment to provide the natural
  resources we are dependent upon.
• Bill Graves, President and CEO, American Trucking
  Associations.

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• SmartWay...incorporates elements that we feel
  are consistent with how we approach our business
  and how we want our service providers to approach
  things as well.
• Sabina Strautman,
• IKEA USA

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• "Our participation in SmartWay is an important
  piece of our global fleet strategy. With our
  first sustainability report issued last fall, we
  set aggressive goals for reducing emissions and
  increasing fuel efficiency. SmartWay provides
  another way to push ourselves to meet, and
  exceed, those company goals."
• Mike Herr, UPS Vice President of Environmental
  Affairs.

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Successful Partners Get Public Recognition and Use

• The SmartWay Transport logo
• The EPA SmartWay logo is a mark of cleaner
  transportation
• Like Energy Star, the SmartWay Transport Partner
  logo identifies the Partner as a responsible
  corporate citizen and environmental steward

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Partners are proudly displaying their
participation in SmartWay
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• Owens Corning ad in Transport topics

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And trade and public media are taking notice.

• The government is here to help you. Really.
  The U.S. Environmental Protection Agency has a
  programthats trying to save you money and clean
  Americas air at the same time.
  Tom Berg, Equipment Editor, Newports Heavy Duty
  Trucking.
• As it turns out, theres more to this worthwhile
  program than just saving fuel and dollars.
  Theres also the positive public relations bump a
  company gets by joining the partnership.
  Clyde E. Witt, Editor, Material Handling
  Management Magazine

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SmartWay PSAs are in major publications
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PSA Campaign
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PSA Campaign
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Public Recognition
Raises public awareness that trucks are integral
to the economy
Raises Public awareness that some trucking
companies shippers are doing more as corporate
citizens
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• SmartWay Transport Partnership
• is good for business.
• And, it helps EPA protect public health and the
  environment
• at the same time.
• SmartWay
• A Winning Way
• for everyone.

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www.epa.gov/smartway smartway_transport_at_epa.gov ph
one center [phone]