John Mikulin. US EPA, Region 9. Tucson Clean Cities Coalition Arizona Clean Diesel Workshop February 19, 2016 REGION 9

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1 REGION 9 John Mikulin Regional Lead, Electric Vehicle Deployment Public Fleets Sector Lead, West Coast Collaborative Clean Energy & Climate Change Office Air Division US EPA, Region 9 Tucson Clean Cities Coalition Arizona Clean Diesel Workshop February 19,

2 Presentation Topics 1) West Coast Collaborative (WCC) a) National Clean Diesel Campaign (NCDC) b) Funding & Partnership Opportunities 2) Air Quality in Arizona a) Air pollution in your area. 3) Diesel Emissions Reduction Act (DERA) a) Eligible emissions reduction strategies b) DERA grant project examples & requirements 4) Heavy-Duty GHG Emissions a) Partnerships & Rule Development 5) Plug-in Electric Vehicle (PEV) Deployment a) Why electrification? 2

3 REGION 9 REGION 10 3

4 Public-Private Partnership EPA Regions 9 & 10 AK, AZ, CA, HI, ID, NV, OR, WA, Pacific Islands & 419 Native Tribes Over 1,000 Partners 4

5 West Coast Collaborative Goals 1) Help meet National Ambient Air Quality Standards (NAAQS) by reducing diesel emissions along the West Coast. 2) Support Greenhouse Gas (GHG) Reductions. 3) Improve Energy Security and Clean Energy Production. 5

6 WCC Sectors - Trucking Locomotives & Rail Agriculture & Biofuels Marine Vessels & Ports Public Fleets Construction & Distributed Generation 6

7 REGION 9 Air Quality in Arizona NAAQS Attainment Designations 8-hr Ozone, 24-hr PM2.5 NEI 2011 Data Analysis Arizona: Maricopa, Pima, Pinal & Santa Cruz Counties 7

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11 Arizona - NOx (%) 2% 5% 8% 24% Mobile - On-Road Diesel Heavy Duty Vehicles Mobile - Non-Road Equipment - Diesel 16% Mobile - Locomotives 9% Mobile - Gasoline, Aircraft, LD Diesel, Other Non-Road 27% 9% Fuel Combustion - Stationary Biogenics - Vegetation & Soil Relevant Clean Diesel Finding Mobile HD Diesel = 42% of Arizona NOx Emissions Note - Waste Disposal + Solvents + Miscellaneous < 1% Source: US EPA, NEI (2011) Industrial Processes Fires - Wild, Prescribed, Ag Burning 11

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14 1% 3% 1% 1% 1% 0.4% 2% 2% 10% Mobile - On-Road Diesel Heavy Duty Vehicles Mobile - Non-Road Equipment - Diesel Mobile - Locomotives 6% Dust - Construction, Roads Industrial Processes 72% Fires - Prescribed, Wild, Ag Burning Fuel Combustion - Stationary Waste Disposal Relevant Clean Diesel Finding Mobile HD Diesel = 3.4% of Arizona Primary PM2.5 Emissions Note Solvents + Miscellaneous < 1% Source: US EPA, NEI (2011) Agriculture - Crops, Livestock Dust & Waste Mobile - Gasoline, LD Diesel, Aircraft, Other Non-Road Commercial Cooking 14

15 REGION 9 Diesel Emissions Reduction Act (DERA) 15

16 Diesel Emissions Reduction Act (DERA) US EPA National Clean Diesel Program (NCDC) National Competitive (70%) State Allocation (30%) Funding Assistance Program Tribal Program Rebate Program 16

17 DERA Reauthorization January 2011 H.R.5809 (Inslee D-WA1) Reauthorized U.S. EPA DERA funding at up to $100M per year through FY2016 for diesel retrofit, repower and replacement grant projects. New authorization for clean diesel rebate program. Funding Status Depends on annual appropriations. FY2016 Funding = $50M nationwide / ~$5M in Region 9 Congressional Debate Uncertainty regarding DERA appropriations beyond 2016 due to scheduled sunset of authorizing legislation. 17

18 Historic DERA Funding ARRA

19 DERA Funding Eligible Entities Public Agencies w/ jurisdiction over transportation or air quality State, regional & local Tribes governments & intertribal consortia Port authorities Nonprofit Organizations that: Represent or provide pollution reduction, or Educational services to persons, or That own or operate diesel fleets, or Have, as their principal purpose, the promotion of transportation or air quality. 19

20 Diesel Emission Reduction Strategies Retrofits with emission control devices DPFs, DOCs, CCVs, SCR, EGR, LNC 20

21 Diesel Emission Reduction Strategies Engine Repower (new engine) Replacing an old diesel engine with a new diesel engine Replacing an old diesel engine with: battery-electric, fuel cell electric, hybrid-electric, CNG, LNG, LPG/propane, etc. Equipment Replacements Replacing old diesel equipment with new diesel equipment Replacing old diesel equipment with: battery-electric, fuel cell electric, hybrid-electric, CNG, LNG, LPG/propane, etc. 21

22 Diesel Emission Reduction Strategies Cleaner Fuels Ultra-Low Sulfur Diesel (ULSD) Required: 2007 on-highway, 2010 nonroad, 2012 locomotive & marine Biodiesel/Renewable Diesel Can be manufactured from vegetable oils and animal fats. Blend 20% biodiesel + 80% petroleum diesel (B20) can be used in unmodified diesel engines. B100 can be used, but may require certain engine modifications to avoid maintenance and performance problems. Pure blends of biodiesel may not be suitable for cold climates. Other Alternative Fuels Emulsified Diesel Liquefied Petroleum Gas (LPG) or Propane Natural Gas - CNG, LNG, RCNG, RLNG Zero Tailpipe Emission - Electricity & Hydrogen 22

23 DERA Eligible Projects Grant funds can be used to pay for up to: 100% of verified exhaust control devices 40% of an engine repower* 25% of vehicle/equipment replacements* 50% for drayage trucks* Replacement engines & vehicles must be certified to new emission standards (or be zero-emission) Cost share can be matched with other non-federal funding sources Cannot pay for fueling infrastructure *requires scrappage 23

24 DERA Eligible Control Strategies Verified Technologies US EPA Verified Technologies List Technologies Overview SmartWay Technology California Air Resources Board (CARB) - Technology Verification Reciprocity

25 National Clean Diesel RFP Generally released in Spring Available to state/local agencies and non-profit organizations (transportation/air quality) Private fleet owners can be project partners 2015 RFP Closed on June 15, 2015 $2.1M for Region 9 projects Focus on: Engines involved in goods movement, including freight & ports Poor air quality areas (NAAQS nonattainment, NATA) Community engagement and partnerships Project sustainability Awards expected to be announced in Fall

26 National RFP Eligible Projects Grant funds can be used to pay for up to: 100% of verified exhaust control devices 40% of an engine replacement (repower)* 25% of vehicle/equipment replacements* 50% for drayage trucks* Replacement engines/vehicles must be certified to new emission standards (or be zero-emission) Cost share can be matched with other non-federal funding sources Cannot pay for infrastructure *requires scrappage 26

27 DERA Funding Competitive Project Elements Strong Partnerships clear financial commitments, letters of support, etc. Community Benefits identify county(ies) and local community(ies) that will benefit from reduced diesel emissions exposure. Community Engagement demonstrate process for fostering community support and involvement in project implementation. Past Performance demonstrate competence and success in implementing projects similar to those being proposed for DERA funding. 27

28 Clean Diesel Rebate Program Past Projects School Bus Replacements Nonroad Replacements & Retrofits School Bus Replacements 2015 School Bus Replacement & Retrofit Program Provided up to $25K/bus for up to 20 replacements Replacement bus powered by engine; or ZEV Old bus must be scrapped Provided up to $3k/bus for up to 20 DOC+CCV retrofits School districts and private fleets with active contracts 9 month project period Applicants randomly selected 28

29 DERA Project Examples 29

30 Gila River Indian Community Agricultural Engine Replacement Project Replace 4 pieces of heavy-duty diesel agricultural equipment owned and operated by Gila River Farms with new Tier 4 nonroad equipment. Greatest Impact: Maricopa & Pinal Counties Lifetime Emission Reduction 1.4 tons PM tons NOx 1.2 tons HC 9.7 tons CO Funding Source $389,465 $389,000 EPA Gila River Farms Project located in a non-attainment area for PM10 & 8-hour Ozone 30

31 Salt River Pima Maricopa Indian Community Mining Equipment Retrofit Project Retrofit 7 pieces of heavy-duty diesel mining equipment owned and operated by the Salt River Materials Group with diesel particulate filters (DPFs). Greatest Impact: Maricopa County Annual Emission Reduction 0.2 tons PM 0.45 tons HC 1.25 tons CO Funding Source $150k $10k EPA Leveraged Project located in a non-attainment area for PM10 & 8-hour Ozone 31

32 Pima Association of Governments Alternative Fuel School Bus Replacements Replace 6 heavy-duty diesel school buses with 4 compressed natural gas (CNG) and 2 propane (LPG) buses. Greatest Impact: Pima & Maricopa Counties Lifetime Emission Reduction 0.41 tons PM tons NOx Funding Sources $805,118 $150, tons CO 2 EPA Schools

33 City of Phoenix Department of Public Works Refuse Haulers DPF Retrofits, Hybrid & CNG Replacements Retrofit 32 refuse haulers with diesel particulate filters (DPFs), replace 1 refuse hauler with a hydraulic hybrid launch assist refuse hauler, and replace 2 diesel refuse haulers with compressed natural gas (CNG) refuse haulers. Annual Emission Reduction Funding Sources 66.4 tons CO tons PM 6.32 tons NOx $679k $830k Hybrid Refuse Hauler EPA Leveraged 33

34 Arizona Department of Environmental Quality Truck Stop Electrification (TSE) Install 81 truck stop electrified (TSE) parking spaces, which provide heating, cooling, electrical outlets and internet access at two truck stops in Cochise County, AZ. Love s Truck Stop in Benson with 51 spaces and Sunmart Truck Stop in San Simon with 30 spaces. Annual Emission Reduction 512 tons CO tons PM 8.69 tons NOx Funding Sources $1.03M Overhead truck stop electrification system EPA 34

35 Sacramento Metropolitan Air Quality Management District Irrigation Pump Electrification Project Establish a voucher program to replace 200 diesel agricultural irrigation pump engines with new electric motors. Annual Emission Reduction 4.58 tons PM tons NO x 4.52 tons HC 12.1 tons CO 11,100 tons CO 2 Funding Source Greatest Impact: Sacramento, CA Impacted agricultural lands located in an ozone non-attainment area 35

36 CALSTART California Airports Partnership - Retrofit, Electric Repower & Biodiesel Fueling Retrofit, repower, and fuel heavy-duty diesel equipment at 4 airports in California (i.e., SFO, OAK, SJC & LAX). Retrofit 12 pieces of on-field equipment and 5 transit buses with DPFs, repower 9 aircraft pushback tugs with allelectric motors, and purchase 123,480 gallons of B20 biodiesel. Annual Emission Reduction 0.45 tons PM 2.03 tons NOx 0.56 tons HC 3.89 tons CO 70 tons CO 2 Funding Sources $454k $896K EPA Leveraged Pushback tug & ground support equipment 36

37 San Joaquin Valley Air Pollution Control District Repowering Locomotives in the San Joaquin Valley Repower two Tier 0 locomotives with Tier 2 engines. Greatest Impact: SJV Rail Yards Annual Emission Reduction 0.82 tons PM Funding Source tons NO x 0.67 tons HC 0.18 tons CO 222 tons CO2 Generator set switch locomotives significantly reduce PM & NOx 37

38 Idaho Department of Environmental Quality Emission Controls for On Road and Nonroad Vehicles Retrofit 20 pieces of non-road construction equipment and 12 school buses with DOCs, CCVs and DPFs. Greatest Impact: Statewide Lifetime Emission Reduction 2 tons PM 7.6 tons NOx 4.7 tons HC 16.3 tons CO 252 tons CO 2 Funding Source $148k EPA Uncontrolled emission on a school bus Construction Equipment will be identified by their proximity to priority areas. 38

39 FHWA Congestion Mitigation & Air Quality (CMAQ) Funding FY16 Funding Estimate = $2.3B nationwide Diesel retrofits & outreach. Electric or natural gas fueling. Alternative Fuel Vehicles - transit, school bus & refuse. CMAQ in Arizona ADOT Main Page MAG Project Selection Criteria PAG Transportation Planning FHWA CMAQ Resources Main Page 39

40 REGION 9 Lauren Maghran Project Officer - State, Tribal & Local Air Grants Grants & Program Integration Office Air Division US EPA, Region 9 Tucson Clean Cities Coalition Arizona Clean Diesel Workshop February 19,

41 Award Timeline (FY15 National) April 30, 2015 RFP opens Posted to grants.gov All questions must be submitted to National Diesel Hotline Informational webinars held June 15, 2015 RFP closes proposals due Proposals reviewed by EPA Regional Offices Selections reviewed by EPA HQ August 2015 notification of selection Selected grantees notified by or letter Unselected grantees notified by letter, may request a debrief October 22, 2015 awards publicly announced Project and budget period is usually 2 years, beginning October 1 NCDC webinars conducted each year for DERA grantees & EPA staff Sign up for NCDC listserv

42 Award Process Selected grantees receive a guidance letter aka Please Apply Letter Total amount of funding available Workplan modifications that must be negotiated with Project Officer Forms that must be submitted in Grants.gov Grantees revise the workplan and budget and submit required assurances and certifications Revised application is approved by EPA EPA issues award document Funds are legally obligated to recipient Work may begin once award is signed by recipient and returned to EPA 42

43 Managing Your Grant Read your grant agreement Amount of matching or cost sharing (varies by type of equipment/project) Programmatic and financial reporting requirements and deadlines Terms and conditions SCRAPPAGE 43

44 Managing Your Grant Manage day to day operations of grant supported activities Activities are included in workplan Request reimbursement as grant funds are utilized ASAP or hard copy payment requests Consequences if grant funds are drawn down too quickly or too slowly 44

45 Managing Your Grant (cont.) Complete quarterly (due 30 days after the end of each quarter) and final programmatic reports (due 90 days after the end of the grant Fleet spreadsheet and diesel emissions quantifier (DEQ) Report templates are provided by EPA 45

46 Managing Your Grant (cont.) Complete financial reports and audits as required Identify potential problems and areas where project officer or technical assistance might be necessary Request budget or workplan changes that require prior approval Communicate with EPA Project Officer: Programmatic lead Grant Specialist: Fiscal lead WCC Sector Leads: Technical lead 46

47 NCDC Main Page DERA National Funding Assistance Program DERA Rebate Program DERA Tribal Program DERA Grant Reporting Templates 47

48 US Greenhouse Gas (GHG) Emissions Source: US EPA (2015) 2013 = 6,673 MMT CO 2 e 48

49 US Transportation Energy & GHGs 3% 2% 6% Light-Duty Vehicles 9% Heavy-Duty Trucks and Buses Aircraft 20% 60% Ships and Boats Rail Other (Motorcycles, Pipelines, Lubricants) Source: U.S. Energy Information Administration (2014) 49

50 What is SmartWay? Launched in 2004, the SmartWay Program is a public-private initiative between the Environmental Protection Agency (EPA), large and small trucking companies, rail carriers, logistics companies, commercial manufacturers, retailers, and other federal and state agencies. Its purpose is to improve fuel efficiency and the environmental performance (reduction of both greenhouse gas emissions and air pollution) of goods movement in supply chains 50

51 What has SmartWay achieved? Since 2004 SmartWay Partners: Saved million barrels of fuel ($24.9 billion in fuel costs saved) Cut 72.8 million metric tons of CO2 Eliminated 1,458,000 tons of Nox Cut 59,000 tons of PM Contributing to cleaner air, a stronger economy and fewer oil imports. 51

52 Global Growth in Freight CO 2 Emissions Global Growth by Transport Mode Goods movement Is fastest growing source of transport emissions. MMT CO 2 International Transport Forum

53 SmartWay Freight Modes SmartWay Today Air & Marine Complete Freight footprint 53

54 SmartWay provides an integrated system SHIPPER Truck Rail Barge Multimodal Logistics Air OGV

55 Recognizing sustainability via SmartWay brand/logo Partner profiles Case studies SmartWay Excellence Awards 55

56 HD GHG Phase 1 + Phase 2 Proposal GHG (MMT CO 2 eq) Phase 1 Reduction Phase 2 Proposal Reduction Calendar Year 56

57 HD GHG Phase 2 NPRM MY2027 vs. MY2017 < 24% combination tractors < 8% trailers < 16% vocational vehicles < 16% pick-up trucks & light vans < 4% diesel engines 57

58 HD GHG Phase 2 Proposal: Costs & Benefits GHG Emissions Reductions Reductions in Fuel Use Proposed Phase 2 MY (beyond Phase 1)* 1 billion metric tons (CO 2 -equivalent) 1.8 billion barrels of oil Billions of 2012$ Fuel Savings $170 Cost to Industry $25 Net Benefits to Society $230 *Preamble and Draft Regulatory Impact Analysis present a range of estimates of costs and benefits to reflect range of analytical baselines, discount rates and modeling approaches. 58

59 HDT NOx Reduction in the US 59

60 HD CI Engine Exhaust Standards Engine Model Year NMHC NMHC + NOx NOx PM CO Idle CO Smoke Useful Life Warranty Period (g/bhp-hr) (g/bhp-hr) (g/bhp-hr) (g/bhp-hr) (g/bhp-hr) (% exhaust gas flow) a,b,c d (%) 20 / 15 / 50 e (hours/years/mil es) HHDDE: 22,000 / 10 / 435,000 (years/miles) LHDDE: 5 / 50,000 All other HDDE: 5 / 100,000 a Starting in 2006, refiners must produce highway diesel fuel that meets a maximum sulfur standard of 15 parts per million (ppm) b Subject to a Supplemental Emission Test (1.0 x FTP standard FEL for NOx, NMHC, & PM) and a NTE test (1.5 x FTP standard or FEL for NOx, NMHC, & PM) c Adopted lab-testing and field-testing specifications for 2010 and later model years heavy-duty highway engines, including both diesel and Otto-cycle engines. d or 2.5 with a limit of 0.5 on NMHC [ABT] 60 e Percentages apply to smoke opacity at acceleration/lug/peak modes.

61 CARB Optional Low NOx Standards 61

62 REGION 9 WCC & PEV Deployment 62

63 Diesel-to-Electric = Lower Mobile Emissions Compliments mobile source regulatory strategies. Electric Projects DERA-Funded Projects State of Arizona Truck Stop Electrification SMAQMD BEVs for regional delivery, HEV buses & electric ag pumps. SCAQMD BEVs for regional delivery. Ports of SF, LA, LBC OGV Shorepower & electric cargo handlers Outreach & Partnerships WCC Partners Meetings & Sector Calls + External Events Partnerships DOE Clean Cities Coalitions, CALSTART Electric Truck Task Force, CEC Hybrid, Efficient & Advanced Truck Research Center, Plug-In Electric Vehicle Collaborative, Fuel Cell Partnership, and many others. Technical & Economic Analysis Business Case Analyses for PEVs 63

64 PEV Terminology & Benefit Metrics PEV = Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) BEVs Large emissions, petroleum, and cost reductions w/ grid, or renewable electricity. PHEVs Lower emissions, petroleum, and costs + greater range per fueling event. Benefit Metrics o Emissions = tons reduced/yr vs. gasoline & diesel o Petroleum = gallons of gasoline & diesel saved/yr o Operational Costs = $ saved/yr vs. gasoline & diesel 64

65 Why electrification? Emissions, energy security & cost savings. 65

66 US Petroleum Dependence 66

67 Qualitative Benefits of PEV Deployment 1) Fuel Cost Certainty 2) Public Preferences 3) Positive Public Exposure 4) Improved Driving Performance 5) Driver Recruitment & Retention 6) Supports U.S. Energy Security 7) Social Responsibility Source: U.S. EPA West Coast Collaborative, Fleet Partner Testimonials (2015) 67

68 Criteria for Optimal Deployment BEV 1) Average Route < 90 mi/day; 2) Operate on predictable/fixed routes; 3) Access to centralized fueling facilities; 4) High idling time; and, 5) Frequent stop-and-go driving conditions. 68

69 Criteria for Optimal Deployment PHEV 1) Average Route < 35 mi/day; 2) Occasional Route = mi/day; 3) Access to gasoline fueling for longer trips; 4) High idling time; and, 5) Frequent stop-and-go driving conditions. 69

70 PEVs in Arizona Average Emissions Reductions Diesel-to-AZ Grid Electricity= CO 2 e Reduction Payback from Operational Savings $ Incremental Cost / $ Annual Operational Savings Light-Duty = Variety of BEVs & PHEVs Medium-Duty BEV = Class 3-6 Trucks & Shuttle Buses, Type A-D School Buses Distributed Renewable Energy & Electric Vehicle Charging Greater emissions reductions, petroleum conservation, and cost savings than grid-based electricity. 70

71 WCC Partnership Opportunities 1) WCC Announcements & Events a) Join/Sign Up CLICK HERE b) Participate in WCC Sector Workgroups (ad hoc) c) Participate in WCC Partners Meetings (biennial) a) Tacoma Convention Center - b) Early Bird Registration by 2/19 (enter sponsor code: wccpm16 = $49/person) - 2) SmartWay Transport Partnership a) Join - 3) Diesel Emissions Reduction Act (DERA) a) Support DERA implementation b) Apply for Grants

72 Ideas, Comments, Questions? John Mikulin Regional Lead, Electric Vehicle Deployment Public Fleets Sector Lead, West Coast Collaborative Clean Energy & Climate Change Office Air Division US EPA, Region 9 (415) mikulin.john@epa.gov Lauren Maghran Project Officer - State, Tribal & Local Air Grants Grants & Program Integration Office Air Division US EPA, Region 9 (415) maghran.lauren@epa.gov