LOGISTICS 2009 February 8-11, 2009 Gaylord Texan Dallas, Texas SmartWay 2.0 February 9, 2009 Buddy Polovick USEPA
Outline Energy, Environment, Economy SmartWay Transport Partnership SmartWay 2.0
U.S. Transportation Sector GHG Emissions Buses & Motorcycles 0.8% Boats & Ships 3.2% Aircraft 9.4% Pipelines Rail 1.5% 2.5% Refrigerants & Lubricants 3.8% Passenger Cars 31.4% Freight Trucks 19.1% Light-Duty Trucks 28.1% Light-Duty Vehicles 59.5% Inventory of U.S. GHG emissions, 2005
Rapid Increase in Transportation Greenhouse Gas Emissions Source: US Emissions Inventory (April 2008) EPA 430-R-08-005
Energy Costs
Energy Security I drink your milkshake I drink it up! Who uses the oil?
Pending Legislation on Climate Change http://www.pewclimate.org/docuploads/chart-and-graph-120108.pdf
SmartWay is at Nexus of Key Concerns Environment GHG Critera Pollutants Regulations Energy Oil dependency Alternative fuels New Technologies SmartWay Economy Cost savings Competitive advantage Modal shifts
The Partnership
SmartWay Transport Partnership What is SmartWay? Successful government/industry collaboration Voluntarily achieves improved fuel efficiency Reduces environmental impacts from freight transport Partnership Categories Carriers Shippers Logistics Rail Partners use models: Benchmark freight operations Measure transportation footprint Identify technologies & strategies to reduce emissions Track emissions reductions and project improvement Equipment Manufacturers SmartWay certified cars & trucks Auto manufacturers Tractor manufacturers Trailer manufacturers
How Does SmartWay work? Shippers: Top of the supply chain, drive marketplace demand Give preferred status to SmartWay Carrier Partners Get better data to improve their own shipping operations Modify logistics operations to improve efficiency and reduce emissions, for example: Inter-modal Shipping Full Truck Loads Warehouse Improvements Idle-Reduction at Docks Get recognition and PR value with SmartWay brand Carriers: Gain competitive advantage: Preferred status, plus Fuel efficiency, savings Reduce emissions Integrate fuel saving technologies and strategies into fleets, such as: Idle Reduction Improved Aerodynamics Efficient Tire Systems Driver Training Renewable Fuels Advanced Lubricants Get recognition and PR value with SmartWay brand
SmartWay Transport Partnership About 1,400 Partners (by end of 2008) Drive approximately 600,000 trucks (7% of industry) Travel over 51 billion miles per year (24% of industry) Consume over 12 billion gallons of fuel (24% of industry) Estimates for 2008: reduce greenhouse gas and pollutant emissions by: 6 million tons of CO 2 (carbon dioxide); 800 tons of PM (particulate matter); 30,000 tons of NOx (oxides of nitrogen); Save over 540 million gallons of diesel fuel this year; Save the freight industry over $2 billion in annual fuel and maintenance costs.
Partner Recognition
PSA Campaign: TV, Radio, Print
SmartWay Certified Vehicles
SmartWay Certified Tractors &Trailers
SmartWay 2.0
A Smarter SmartWay SmartWay 1.0 Domestic ground freight, i.e., trucking and rail Non-dimensional partner scoring process Detailed technology survey for carrier scoring Carbon footprinting limited to default national averages US-based operations covered SmartWay 2.0 Multimodal operations, including maritime, short sea, air cargo, drayage, port, etc. More transparent and granular carbon-based scoring Streamlined, performance based scoring based on actual miles, fuel, volume Carbon footprint based on provider and modal choices Globalized SmartWay program quantifies supply chain emissions
Multimodal Supply Chain Model Shippers Key Model built, needs revisions Software Company Research/ Consultants Existing Outside Systems Under Construction Database 3 rd Generation SmartWay Trucking Rail Aircraft Ocean Going Vessels Short Sea Shipping/ Barge Logistics Drayage Airports Transfer Terminals Ports/ Terminals
Carbon Based Carrier Scoring Systems SmartWay 1.0 SmartWay 2.0 SmartWay Shipper FLEET Model SIF Score Score 0 0.01 -.74 0.75.75 -.99 1 1.00+ 1.25 These emission factors may be adopted by commercial logistics software developers 10 Bin System Grade CO2 g/mile 1 1,271.72 2 1,522.03 3 1,593.60 4 1,651.06 5 1,688.79 6 1,722.27 7 1,771.09 8 1,823.70 9 1,932.25 10 2,160.86
Streamlined Model and Scoring Systems
Comparison SmartWay Shipper Scoring Yes, a score of 0.59 qualifies you to use the logo Provider SCAC Code Provider's Total Mileage with Fleet Provider's Total Weight w/ Fleet Custom Metric # of Trips SIF Score for Provider Score based on Miles (miles) (tons) 0.59 Alpha Transport 10,000 0.75 0.07 Beta Systems 20,000 1.00 0.18 Gamma Carriers 10,000 1.02 0.09 Delta Trucking 20,000 1.00 0.18 Epsilon Brothers 10,000 0.75 0.07 Non-SmartWay 40,000 0.00 0.00 The current system provides a nondimensioned environmental score The new system will provide multiple efficiency metrics and total inventories for CO2, NOx, and PM: g/mile g/avg payload ton-mile g/avg cubic foot volume Provider No, an efficiency of 1776.18 g/mile does not qualify for the SmartWay logo SCAC Code Provider's Total Mileage w ith Fleet Provider's Total Weight w / Fleet Custom Metric # of Trips CO2 g/mile Overall g/mile efficiency Transportati on Carbon Footprint (miles) (tons) 1776.18 (tons) Alpha Transport 10,000 1,271.00 115.55 14.01 Beta Systems 20,000 1,522.00 276.73 33.56 Gamma Carriers 10,000 1,593.00 144.82 17.56 Delta Trucking 20,000 1,651.00 300.18 36.40 Epsilon Brothers 10,000 1,688.00 153.45 18.61 Non-SmartWay 40,000 2,160.00 785.45 95.26 110,000 215.41 g/truckload
Improved Carbon Footprinting National default average emission factor
Globalizing SmartWay: What Have We Learned in the U.S.? There is a strong business case for more sustainable supply chains Transportation is a significant piece of corporate emissions footprint Transportation becoming greater portion of operating costs All companies want to save fuel Globalization of supply chains introduces new challenges and opportunities Multinational corporations linking their operations across more of the worlds ports and borders Longer, multimodal supply chains can also mean more emissions from trade Increased pressure to reduce embedded carbon emissions Government/Industry Partnerships can move the marketplace EPA s SmartWay Transport Program is a business friendly mechanism to reduce GHG emissions from supply chains
The SmartWay International Summit Dec 2-4, Ann Arbor at NVFEL and University of Michigan Developed in response to countries asking for guidance to develop and launch their own SmartWay programs Government and Trade groups from 12 countries NGOs included WRI, EDF, Carbon Trust US government officials, Academia Key themes: Developing harmonized supply chain accounting methods Broadening SmartWay to cover other modes of transport Developing an international SmartWay exchange network Next steps to keep the momentum going: Follow up discussions with stakeholders on establishing and international platform to share data, best practices Link these resources to SmartWay Supply Chain modeling
Measuring & Reducing Supply Chain Emissions
www.epa.gov/smartway smartway_transport@epa.gov phone center 734-214-4767 Buddy Polovick 734-214-4928