1 Funding the Movement of Freight Towards Financial & Environmental Rewards December 4, 2007 Canadian Association of Movers Annual Conference - Toronto, ON Lynda Harvey - FleetSmart

2 Today’s presentation: ecoACTION ecoENERGY for Fleets Results

3 Canada’s GHG Emissions Distribution by Sector ( 2004)

4 Canada’s Transportation GHG Emissions by Mode (2004)

5 Chicken or Egg? Government concerns for – C Oil supplies C Carbon emissions C Global Climate Change

6 Chicken or Egg? General Public / Consumer concerns demonstrating – Emerging consumer preferences for locally produced products Consumer choices in purchasing decision

7 Voluntary Programs Little opportunity for gains from changes in structure / modal shifts, most obvious gains will come from logistics, training & technology Utilization of trucks, truck size & capacity to cargo load Optimizing locations where goods are produced & loaded / unloaded Driver training Proven vehicle technologies Fuels

8 ecoFREIGHT - Joint $61m initiative with NRCan & Transport Canada Consists of six components: 1. National Harmonization Initiative for the Trucking Industry (TC) 2. Freight Technology Demonstration Fund (TC) 3. Freight Technology Incentives (TC) 4. ecoFREIGHT Partnerships (TC) 5. Marine Shore Power (TC ) 6. ecoENERGY for Fleets (NRCan) ecoTRANSPORT

9 ecoFREIGHT funding envelopes ■ Freight Technology Demonstration Fund ($10m) Reduce GHG and air pollutant emissions by funding the demonstrating of new technologies in real world conditions ■ Freight Technology Incentives ($10m) Reduce GHG and air pollutant emissions by funding the purchase & installation of proven technologies  Funding Terms: Max $500k per project, up to 50% of eligible costs limit of 50% federal funding per project – all four modes  Timeline: April 1, 2007 – March 31, 2011 Expected first round of funding Nov 1, 2007

10 Federal Strategy & Programs for Fuels Four key elements to Canada’s biofuels strategy 1.Regulation to establish demand 2.Incentive to encourage domestic production (ecoEnergy for Biofuels) 3.Support for deployment of next-generation technologies (NextGen Biofuels Fund TM ) 4.Support for agricultural producer participation in the production of biofuels

11 What is FleetSmart ? (ecoENERGY for fleets) A program at Natural Resources Canada to help commercial & institutional fleets reduce fuel consumption & emissions through improved energy efficient practices. Programs for on-road vehicles > Trucks – highway, forestry, urban > Bus – highway coach, transit, school buses > Urban – municipalities, utilities, light-duty fleets (ie. taxi, courier)

12 ecoENERGY for fleets FleetSmart - $22 m  Fuel Management Plans (FM101)  SmartDriver  Technology & Information Workshops  Truck Stop Idle-free Quiet Zone Campaign  U.S. Government partner - EPA - SmartWay Transport Partnership

13  Fuel prices are volatile  New emissions standards are changing the engines and the fuel  The environmental impact of transportation is a concern Fuel Management

14 Fuel Management Plan 1.How do I start tracking fuel use? 2.What information do I need to know? 3.Where can I get that information? 4.How do I analyze it? 5.How do I cost my options? 6.How do I decide which option is best?

15 Fuel TypeGreenhouse Gases (CO 2 + CH 4 + N 2 O) Diesel2.76 kg/litre Gasoline2.43 kg/litre Propane1.53 kg/litre E kg/litre E kg/litre CNG2.13 kg/m 3 CNG3.06 kg/kg Factors for calculating GHG emissions

16 HOW BIG IS 1 TONNE OF GHG? Just picture the size of a 2-storey home

17 FleetSmart’s SmartDriver Series

18 FleetSmart con’t Maximizing on–board technologies THE DRIVER The investment in fuel- efficient technology will not pay off if the driver is not trained to drive efficiently

19 What is SmartWay Transport? Voluntary partnership between EPA and the freight industry: ( Mix of shippers, carriers, logistics companies) –Designed to create a demand for cleaner, more fuel efficient freight transportation  Add environmental performance to the list of criteria used to contract business –Developed jointly by EPA and 15 Charter Partners –EPA interests –EPA interests: Reduced emissions (CO 2, NOx, PM) and improved energy security –Freight industry interests –Freight industry interests: Reduced fuel consumption, public recognition, improved public image, driver retention –No fees to participate –Open to companies of all sizes

20 Data tracking: 5 – 8 % in Trucking operations & greater reductions in idle time 5 – 8 % reduction in Transit operations 12% reduction in School bus operations In depth study is planned Program Results

21 Program Results ETS (averages)

22 Program Results con’t… Transit: –System wide to date improvements are showing a 5 – 8% reduction in fuel consumption –Improved job satisfaction –Reduced hard braking therefore smoother ride for passengers; –Less stress on drives –Improved spirit of cooperation for initiative

23 Program Results con’t… Early School Bus indicator (B.C.):  A 12% reduction in fuel consumption via improved practices & driver training Idling policy reduced daily idling from 110 minutes per day to 25 minutes New policy for pre-trip & post-trip inspections Implemented into the student school bus safety program – so students are reminding drivers!

24 Cost of 110 min 1.83hr x 4 litres fuel = 7.32 ltrs x 150,000 trucks = 1,098,000 $0.95 = $1,043, Cost of 25 min.42hr x 4 litres fuel = 1.68 ltrs x 150,000 trucks = 252,000 litres What’s your fleet’s idling average? In Canada cost of idling 150,000 trucks per day TRUCK $0.95 = $1,043, ,052 tons $0.95 = $239, tons GHG

25 Speed Histogram Speed - mph Time Hours 4.6% 0.7% 3.3% 6.0% 6.6% 12.6% 15.2% 49.7% 1.3% Idle Time - 57% Overall MPG Speed Histogram Speed - mph Time Hours 2.3% 1.6% 0.6% 0.5% 0.6% 0.8%1.2% 2.1% 3.1% 19.9% 57.2% 6.2% 1.9% 0.9%0.5% Idle Time - 3.5% Overall MPG Truck Idling - Resell Situation Truck 1: Hours of service: 14,815 hours Driving time: 6370 hours Idling time: 8445 hours % idling time: 57% Fuel cost: $32,091 Truck # 1Truck # 2 Same model truck & engines, both with 650,000 km: Truck 2: Hours of service: 6601 hours Driving time: 6370 hours Idling time: 231 hours % idling time:3.5% Fuel cost: $0.95 per litre of diesel

26 Truck Idling con’t Truck Stop Idle-free Quiet Zone campaign Dec 1, 2007 – Feb 28, 2008 Over 60 truck stops in Canada & Region 5 of the US EPA (Mid-west states)

27 Corporate: > Employee Retention Programs > Creates funds for reinvestment via  reduced fuel & maintenance costs  extending purchase cycle Social: > Corporate Social Responsibility trends > Reduction in emissions CO-BENEFITS

28 BUY- IN  Misinformation & myths are prevalent & an impediment to the industry  Informed drivers, technicians, dispatchers, managers are more likely to change their behaviour & share with family & community

29 What do FLEETSmart Fleets have in common? Management commitment & Action Plan Staff education & training Use of technology Monitoring performance Coaching to improve weak performers Incentives / recognition program

30 Natural Resources Canada - FleetSmart Thank You Lynda Harvey