1. Jan. 11, 2006 1 EPA’s SmartWay ® Transport Partnership – Overview and Border Issues

2. Jan. 11, 2006 2 Why Do Companies Join the SmartWay Transport Partnership? Save Fuel Save Money Clean the Air

3. Jan. 11, 2006 3 What Partners are Saying “By designing this program, it shows me and other carriers that EPA is concerned about our business as well as clean air.” -- Rick Coomes, President, Coomes, Inc. “The very worst thing that'll happen to you is you'll save fuel, which means you'll make more money.” -- Dave Berry, Vice Pres., Swift Transportation “The SmartWay Transport Partnership has been very helpful in assessing the value of some of the strategies we have or have thought of implementing over the next few years.” -- Pam Mullin, Chief Financial Officer, KBD Transportation

4. Jan. 11, 2006 4 What is the SmartWay Transport Partnership? Launched February 9, 2004 3 Major SmartWay Transport Components: Corporate Partnerships – carriers and shippers working to reduce fuel consumption and emissions. National Transportation Idle-Free Corridors – goal to eliminate unnecessary idling along major transportation routes. Rail/Intermodal – promote greater use of appropriate intermodal strategies.

5. Jan. 11, 2006 5 What is the SmartWay Transport Partnership? Voluntary partnership between EPA and the freight industry: Developed jointly by EPA and 15 Charter Partners. Freight industry interests: reduce fuel consumption, public recognition, improved public image. EPA interests: reduced emissions (CO2, NOx, PM) and improved energy security. No fees to participate. Open to companies of all sizes.

6. Jan. 11, 2006 6 How Does the Partnership Work? Carriers (Rail and Truck): Agree to work toward improved efficiency and reduced fuel consumption over a 3 year period. Shippers: Agree to work toward shipping more of their product with SmartWay Carrier Partners, as well as improving their operations over a 3 year period. Logistics: Agree to work toward shipping more freight with SmartWay Carrier Partners, as well as bringing more of their contracted carriers into the Partnership. Affiliates: Work to promote the Partnership to their members and support the activities of the Partnership. Texas Motor Transportation Association and TCEQ are SmartWay Affiliates.

7. Jan. 11, 2006 7 Selected SmartWay Partners Shippers H-E-B J.C. Penney Dell Wal-Mart IKEA Sharp Electronics Home Depot Lowe’s Tyson Foods Owens Corning Nike Texas Carriers H-E-B Dart Transit Co. Frito-Lay Central Freight Lines Texas DOT Arrow Trucking Co. Plains Transportation BNSF Railway Company Kansas City Southern Railway Company Union Pacific Railroad Trucking Associations Texas New Jersey Washington Michigan Wisconsin Nebraska Maine Pennsylvania Ohio Minnesota

8. Jan. 11, 2006 8 The SmartWay Transport Partnership Today 294 Partners – 215 Trucking Carriers, 8 Rail Carriers, 26 Shippers, 7 Shipper-Carriers, 11 Logistics, 27 Affiliates 9 of Transport Topics Top 20 For-Hire Carriers Represent nearly 5 percent of the trucking industry, with over 300,000 tractors and 500,000 trailers traveling over 14 billion miles per year. Shippers incorporating SmartWay participation into carrier hiring decisions IKEA North America shipping only with SmartWay Partners. Sharp Electronics strongly encouraging carriers to become Partners.

9. Jan. 11, 2006 9 How Can Trucking Carriers Achieve Savings and Meet Goals? Idle Reduction Single Wide Tires Improved Aerodynamics Driver Training Improved Freight Logistics Automatic Tire Inflation Systems Reducing Highway Speed Low Viscosity Lubricants Intermodal Shipping

10. Jan. 11, 2006 10 How Can Rail Carriers Achieve Savings and Meet Goals? Idle reduction (automatic start/stop systems or auxiliary power units) Low-emission switchers Improved wheel/rail interaction Improved aerodynamics Potentially retrofit with PM control

11. Jan. 11, 2006 11 Benefits for Outstanding Performance The SmartWay Logo –Carriers, shippers, and logistics companies who meet predetermined criteria for outstanding performance are awarded the SmartWay Transport Partnership logo. –Logo may be used on corporate materials and advertising to indicate the company’s use of cleaner transportation. The SmartWay Truck –Developing plans to allow the SmartWay logo to be put on low- emission, high fuel-efficiency trucks.

12. Jan. 11, 2006 12 Examples of Logo Use by Partners

13. Jan. 11, 2006 13 Examples of Logo Use by Partners

14. Jan. 11, 2006 14 Examples of Logo Use by Partners

15. Jan. 11, 2006 15 Raising Industry and Public Awareness About SmartWay Campaign launched in Dec. 2004. Goal of raising awareness of the Partnership among the carrier and shipper communities, and the public. Placements in dozens of publications/outlets.

16. Jan. 11, 2006 16 SmartWay Technology Financing Programs and Tools Many fleets expressed an interest in investing in fuel saving equipment, but lack of capital is often cited as a major barrier. SmartWay is attempting to address this issue by developing a number of innovative financing programs: State loan programs National loan programs Performance contracting arrangements

17. Jan. 11, 2006 17 SmartWay Technology Financing Programs – State Loan Programs Some states have existing loan programs through their small business or environmental offices that are able to finance SmartWay Upgrade Kits. These loan programs are often include terms that are more attractive than currently available commercial loans (e.g., low-interest rates, flexible repayment terms). SmartWay is partnering with loan programs in Arkansas, Minnesota, and Oregon to offer SmartWay Upgrade Kits and is working to partner with additional states.

18. Jan. 11, 2006 18 SmartWay Technology Financing Programs – National Loan Programs Several commercial banks (Wachovia, Wells Fargo) and other finance organizations have expressed interest. Would be nationally available to trucking companies of all sizes. Might offer below-market rates or preferred terms due to the environmental benefits of the technologies. Exploring working with truck financing programs and truck purchasing services to incorporate technologies into the purchase of new or used trucks.

19. Jan. 11, 2006 19 SmartWay Technology Financing Programs – Performance Contracting Arrangements based on the Energy Service Company (ESCO) model from the buildings sector. ESCOs purchase technologies for use by companies, with no initial capital outlay required by the company. Companies pay a portion of the value of their energy savings to the ESCO for a pre-determined period of time. SmartWay is planning a pilot project to develop this concept for the trucking industry. Working with a private company, Envirofunding, to explore making this type of financing widely available with backing from private investors.

20. Jan. 11, 2006 20 The SmartWay Technology Upgrade Kit Suite of technologies that result in significant fuel savings and substantial emission reductions –Idle Reduction Device (e.g., Bunk Heater or Auxiliary Power Unit) –Trailer Aerodynamics –Aluminum Wheels for Single-Wide Tires –Emission Control Devices (Diesel Oxidation Catalyst or Particulate Matter Filter) Currently investigating the potential for a SmartWay Drayage Technology Upgrade Kit. Partnering with EPA Region 6 to offer a grant to evaluate the effectiveness of the Upgrade Kit.

21. Jan. 11, 2006 21 SmartWay and U.S.-Mexico Border Issues Active program to look at opportunities to reduce emissions from diesel trucks in the border area. –Recently hosted a ½-day workshop in El Paso to discuss potential methods to reduce truck idling at border facilities. –Investigating possible projects to install technologies or processes that will reduce wait time for trucks or provide alternatives to idling while waiting for border inspections. Exploring the possible expansion of SmartWay into Mexico. –Request received from SEMARNAT to provide information and potential training for a Mexican SmartWay Program. –Exploring with several SmartWay Shipper Partners the possibility of expanding their participation to include their Mexican freight operations.

22. Jan. 11, 2006 22 For More Information Michael Zatz SmartWay Transport Partnership E-mail: zatz.michael@epa.gov Tel: 202-343-9035 Fax: 202-343-2800 http://www.epa.gov/smartway