April 2007 Border to Border Transportation Conference 2007

Our Mission Mandated Scope Certification Criteria Comprehensive Project Cycle Expertise and Services BECC Overview

Our Mission BECC works to preserve, protect and enhance human health and the environment of the U.S. - Mexico border region, by strengthening cooperation among interested parties and supporting sustainable projects through a transparent binational process in close coordination with the NADB, federal, state and local agencies, the private sector, and civil society.

Mandated Scope

BECC’s Certification Criteria Criterion NameIntent of the Criterion 1.GENERALDetermines eligibility and defines the project scope and work tasks. 2. HUMAN HEALTH & ENVIRONMENT Addresses human health and environmental needs and reviews and verify compliance with applicable environmental laws and regulations. 3. TECHNCIAL FEASIBILITY Projects that are consistent with appropriate technologies, operation and maintenance manuals, and industry design standards to meet current and future needs. Seeks appropriate, proven and non-polluting technology, with low operation and maintenance costs. 4. FINANICAL FEASIBILITY To provide the information required to assess the financial feasibility, project management, and sustainability required to achieve financing approval through the BECC/NADB. Viable financial structure with limited impact on user fees and balance in sources of funding. 5. PUBLIC PARTICIPATION Provide the community an opportunity to comment based on understanding the benefits and impacts of the project and to achieve the community’s commitment with the development of the project. 6. SUSTAINABLE DEVELOPMENT Consider and implement, to the extent possible, sustainable development principles throughout the development of projects. 14 minimum requirements and green building practices.

BECC/NADB Comprehensive Project Cycle

Expertise and Services Strengthening Institutional Capacity. BECC’s close coordination with utilities along the US/Mexico border has provided an opportunity to induce institutional capacity building throughout the project development process. Technical Services. A specialized project development team which includes experts in project management, engineering, public participation, quality control and contract management is assigned to each project. This multi-disciplinary group has the experience to help a project with a wide range of needs. These no-cost services include: Technical Assistance. To aid project sponsors, BECC has a limited amount of money available from its operations budget to support activities required to achieve project development and certification. The tasks for which BECC can provide these funds include: Project ScopingBi-National Coordination Project Coordination with funding and regulatory agencies. Strategic Planning including efforts with each of the 10 states. Procurement ServicesTechnical Reviews Public Participation GuidanceReference Resource Environmental Impact StudiesCommunity Participation Programs Technical, Economic and Financial Feasibility Studies O&M Programs and Institutional Strengthening Preliminary and Final DesignEvaluations of Sustainability Issues

BECC in a Nutshell Technical Assistance Certified Projects Paving Projects Highway and Bridges Projects Smartway Border Accomplishments

BECC in a Nutshell 132 TECH ASSISTANCE PACKAGES $33.62 Million 118 CERTIFIED PROJECTS $2.69 Billion 132 CITIZEN’S COMMITTES 65 PROJECTS IN THE PIPELINE $1.28 Billion 10 0 YEARS ACTIONS BECC Pipeline includes: 22 W/WW BEIF Projects; 7 W/WW Non-BEIF Projects; 15 Solid Waste Projects; and 21 New Sector Projects

Supporting Border Communities – Technical Assistance Baja California $ 1.56M Sonora $ 2.38M Chihuahua $ 1.95M Coahuila $ 0.79M Nuevo Leon $ 0.09M Tamaulipas $ 1.90M 59 Mexico Communities $ 8.67M 59 Mexico Communities $ 8.67M California $ 1.9M Arizona $ 3.39M New Mexico $ 3.28M Texas $ 11.48M 71 US Communities $ 20.05M 71 US Communities $ 20.05M Total PDAP Technical Assistance: $28.72M Total PDAP + other BECC Technical Assistance: $33.62M

Certified Projects California 11 projs. $ 182 mil. Arizona 12 projs. $ 145 mil. New Mexico 8 projs. $ 57 mil. Texas 340projs. $ 666 mil. Baja California 11projs. $ 734 mil. Sonora 14 projs. $ 111 mil. Chihuahua 7 projs. $ 210 mil. Coahuila 3 projs. $ 157 mil. Nuevo Leon 2 proj. $ 67 mil. Tamaulipas 6 projs. $ 336 mil. 69 in the US $ 1.08 bill. 69 in the US $ 1.08 bill. 46 in Mexico $ 1.61 bill. 46 in Mexico $ 1.61 bill. 118 Projects to date. Total estimated investment -- $2.69 bill. Benefiting over 13 million border residents

Paving Projects in Mexico ProyectosPromotor Costo Total MDD Población Beneficiada Status Proyecto de Pavimentación en Agua Prieta, Sonora Municipio de Agua Prieta ,236Certificado Proyecto de Pavimentación en Ciudad Juárez, Chihuahua Municipio de Ciudad Juárez ,217,818Certificado Proyecto de Pavimentación en el Estado de Baja California Estado de Baja California ,500,000Certificado Proyecto de Pavimentación en Nogales, Sonora Municipio de Nogales ,057Certificado Proyecto de Pavimentación en San Luis Río Colorado, Sonora Municipio de SLRC, Sonora ,413Certificado Proyecto de Pavimentación en Sonoyta, Sonora Municipio de Sonoyta ,000Certificado

Paving Projects in Mexico Proyectos de Mejoramiento de la Calidad del Aire Promotor Costo Total MDD Población Beneficiada Status Proyecto de Pavimentación en Reynosa, Tamaulipas Municipio de Reynosa ,463Certificado Proyecto de Pavimentación en Tijuana, Baja California Municipio de Tijuana ,310,000Certificado Proyecto de Pavimentación en Ciudad Acuña, Coahuila Municipio de Acuña ,000En Desarrollo Proyecto de Pavimentación en Naco, Sonora Municipio de Naco 1.186,108En Solicitud TOTAL ,025,095

Highway and Bridge Projects in US-Mexico Proyectos de Mejoramiento de la Calidad del Aire Promotor Costo Total MDD Población Beneficiada Status Sistema vial metropolitano playas de Rosarito, BC Municipio de Rosarito ,652En Desarrollo Puente Internacional Brownsville- Matamoros Ciudades de Brownsville- Matamoros ,236En Desarrollo Puente Internacional Donna- Río Bravo Ciudades de Donna-Rio Bravo ,000En Desarrollo Puente Internacional Sullivan- Díaz Ordaz Ciudades de Sullivan- Diaz Ordaz ,998En Solicitud TOTAL ,886

EPA’s SmartWay Transport Partnership is a collaborative, public- private program between EPA and the freight industry (truck and rail) that will increase the energy efficiency and security in the U.S. while significantly reducing air pollution and greenhouse gases. The Partnership is voluntary and creates strong market based incentives that challenge companies shipping products (“shippers) and the truck and rail companies delivering these products (“carriers”), to improve the environmental and energy performance of their freight operations. To date, the Partnership has almost 500 partners including some of the largest companies in the country (Wal-Mart, Home Depot, Coca-Cola, J.B. Hunt, Schneider, Swift). SMARTWAY

One area that the SmartWay program has not yet addressed is border truck activity. Air quality and increased traffic is a growing problem at the U.S.-Mexico Border. Since the implementation of the North America Free Trade Agreement (NAFTA), the number of commercial vehicles crossing the border has increased by 40 percent. Each year approximately 90 million cars and 4.3 million trucks cross into the U.S. from Mexico. This volume of traffic can result in lengthy delays at ports of entry, which wastes fuel and increases vehicle emissions. From a public health perspective, emissions from older diesel trucks are of particular concern.

EPA’s SmartWay Transport Partnership has begun exploring ways to reduce emissions and conserve fuel from border trucks. This approach involves identifying shipping companies that arrange to send goods across the border (northbound) and the trucking companies that actually carry the goods across the border. Traditionally, the SmartWay program recruits shipping companies into the program through a partnership agreement, and shippers agree to ship 50% or more of their goods with trucking companies that meet SmartWay’s truck goals (trucking companies are also recruited separately). SmartWay truck goals involve adopting technologies that have been proven to conserve fuel and reduce emissions, such as: idle reduction, trailer aerodynamics, wide- based tires, and exhaust after-treatment devices (e.g., particulate matter filter). However, these technologies are more effective for long haul trucking operations. Border (or drayage) trucks typically operate on shorter routes and lower speeds, and may not benefit from idle control and trailer aerodynamics.

Due to the complicated nature of border truck crossings, a combination of technologies and strategies is necessary to reduce emissions from border fleet operations. EPA is interested in exploring the feasibility of the following approaches to comprise the SmartWay Border Truck Upgrade Kit. Technology Solutions Aluminum Wheels for Single Wide Tires, low-rolling resistance tires, or upgrade to radial tires if using older polyester tires. Low-viscosity lubricants in rear chassis axle, transmission, and low- viscosity crankcase oil. Larger Capacity Trailers - Double and Triples. Diesel particulate matter filter and ultra low sulfur diesel **Retrofit or replacement of older engines (pre MY 1990) We believe that the single, most effective strategy for reducing emissions from border trucks is to provide a financial incentive for the truck owner to scrap their pre-1990 truck and buy a used truck between 1994-present. For example, a used model year 2000 truck costs $40 K in the U.S. We believe an appropriate financial incentive would be a loan or grant to cover at least 50% of the purchase price of a newer, used truck. SMARTWAY

Strategy Solutions Participate in the U.S. Customs and Border Protection’s Free and Secure Trade (FAST) Program. Use of eManifests and transponders to streamline Customs paperwork submissions Reduce empty truck crossings Shift to intermodal operations Engine maintenance program Operate during off-peak hours, when possible Incentive Opportunities Trucking companies that implement of SmartWay technologies and strategies identified above will accrue a benefit based on fuel savings. However, the initial cost expenditure for some of the technologies and strategies ranges from $10,000-$20,000 per truck. As is often the case, many trucking companies committed to border activity lack the capital to purchase and/or participate in the technologies and strategies.

We are exploring innovative, market-based and sustainable means to allow trucking companies to purchase SmartWay. In the U.S., we are working with banks and other financial institutions to offer zero-interest, low-interest, and revolving loan accounts for truck owners interested in purchasing SmartWay technologies. For Mexican based fleets, we are looking for the certification by BECC in order to have access to the loan program managed by the North American Development Bank as a means to assist Mexican based companies with their participation in the SmartWay program. We are committed to recruiting Mexican based shipping companies (exporters to U.S.), and when these Mexican shipping companies join and commit to shipping 50% or more of their goods on SmartWay qualified carriers, their Mexican trucking companies will need to purchase SmartWay technologies or participate in programs like the FAST lane program. BECC and the NADBank are developing a program whereby attractive loan packages that can be offered to Mexican trucking companies as a means to reducing emissions at border crossings.

Thank You