VOLUNTARY DIESEL RETROFIT PROGRAM. STAPPA and ALAPCO Fall Membership Meeting October, 2003

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1 VOLUNTARY DIESEL RETROFIT PROGRAM STAPPA and ALAPCO Fall Membership Meeting October, 2003

2 Voluntary Diesel Retrofit Program A voluntary program designed to install pollution- reducing technology on existing diesel engines The program is building a market for clean diesel concepts Accelerating the delivery of ULSD Forging business partnerships and relationships Investing EPA resources to accelerate market growth Verifying retrofit technologies The program deals with existing engines today On-Highway and Proposed Nonroad rules address only future engines Existing diesel engines can last years

3 Retrofit Opportunities Highway Trucks & Buses Assuming 2 million engines (1995 and newer MY) in the fleet today are candidates for Diesel Particulate Filters (DPF) and ULSD Application: Class trucks, school & transit buses Applying a DPF & ULSD to those engines could potentially yield significant lifetime emission reductions: 70K tons PM 2.5, 260K tons HC, 1.1M tons CO Approximate cost for this DPF/ULSD strategy: $ 6 billion If all 2 million were retrofit, the reductions may prevent cumulatively (lifetime): 1,900 premature deaths 1,200 cases of chronic bronchitis 1,200 hospital admissions 350,000 work days lost

4 Retrofit Opportunities Nonroad Engines Assuming 4 million engines (1990 and newer MY) in the fleet today are candidates for Diesel Oxidation Catalysts (DOC) and ULSD Application: Construction & Ag equipment Applying a DOC & ULSD to those engines yields significant emission reductions per year: 20K tons PM 2.5,, 25K tons HC, 125K tons CO Approximate cost for this DOC/ULSD strategy: $ 4 billion If all 4 million were retrofit, the reductions may prevent annually: 1,500 premature deaths 900 cases of chronic bronchitis 1,300 hospital admissions 160,000 work days lost

5 Retrofit Target Areas Establishing a Retrofit Program will lead to immediate environmental benefit The retrofit technology is available now Target Areas PM 2.5 and 8 hour Ozone areas in violation Areas that currently have ULSD available

6 30 Largest Cities in Counties Violating PM2.5 and/or 8-Hour Ozone NAAQS Sacramento Fresno Milwaukee Chicago Indianapolis St. Louis Detroit Cleveland Philadelphia Pit tsburgh Columbus Baltimore Washington Cincinnati Los Angeles Santa Ana Long Beach San D ieg o Phoenix Mesa Tulsa Memphis Nashville-Davidson County Charlotte Atlanta Fort Worth Dallas Arlington Legend Austin Houston Counties Violating Both NAAQS City Population Counties Violating 8-Hour Ozone NAAQS < 500,000 Counties Violating PM 2.5 NAAQS 500,000-1 million > 1 million air quality data

7 ULSD Availability (Future Project and ULSD Expansion)

8 Retrofit Challenges What can we collectively (EPA/State/Local) do to bring this about? Costs are high; budgets are tight Examples: Public/private partnerships State SEP funding Foundations

9 Puget Sound as a Model Established a voluntary diesel retrofit program developed in collaboration laboration with EPA s Voluntary Retrofit Program Hosted a forum to discuss retrofit concepts Focused on introducing ultra-low low sulfur diesel fuel and retrofits into the 4 Puget Sound counties near Seattle RFP to introduce ULSD to the Seattle, King County area for transit, school bus, government & private fleets Received commitments to retrofit from various fleet partners Creating a voluntary program now may avoid the need for a mandatory retrofit rule like California s later As a result of this effort they won a legislative appropriation for 5 million dollars per year over the next five years for school bus retrofits, ts, despite shrinking budgets

10 Technology Verifications 10 Technologies Currently EPA-Verified DPFs, DOCs,, Crankcase Filtration, Emulsified Fuel, Biodiesel, Cetane Enhancers Recent Verification Donaldson, DOC & Crankcase Control Clean Diesel Technology, DOC & Fuel Borne Catalyst Upcoming Verification (within 2 months) Engine Control Systems (Lubrizol), DPF Currently working with CARB to harmonize verification procedures

11 FY03 Funding EPA Efforts $500K Available for Grant Competition 5 Applicants Recommended for Funding - To be announced soon $300K (FY03-04) 04) Contract for First Retrofit Project with Private Company Using OAR funding, we have been successful in leveraging additional resources Source OAR Market Investment # Retrofits $2.4 Million* ~2,000 $450 Million (est.) ~158,000 * OAR funds used to leverage matching funds in grant competition.

12 OAR Funded Retrofit Projects Bellingham Seattle Puyallup Portland Winnebago Denver Chicago Gary Boston New Haven Cleveland Philadelphia Washington Long Beach Asheville Charlotte Dallas Atlanta Birmingham Anchorage OAR funded retrofit projects in 17 states FY OAR Gran ts Tribal Grants FY03 FedEx Contract

13 Retrofit Funding Sources States are developing various funding mechanisms - Washington St. - $5M/yr for school bus retrofits over the next 5 yrs - New York - $5M/yr for school bus retrofits - Texas - $130M/yr for retrofits over the next 3 yrs - California $50M allocated to Carl Moyer Program for FY02/03 (funds unavailable) - Georgia & Oregon have tax credits in place Approximately $30M in SEPs for retrofit projects - Toyota, ADM, Alcoa, VEPCO, WMI Energy Bill - ~$300M under consideration

14 For Further Information epa.gov/otaq/retrofit Retrofit Program: Jim Blubaugh blubaugh.jim (202) epa.gov/cleanschoolbus Clean School Bus USA: Janet Cohen cohen.janet (734)