United States
     Environmental Protection
     Agency
Toward a Cleaner Future
             Office of Transportation and Air Quality
                           Progress Report 2005

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Table  of  Contents
  Executive Summary	3
  \What is OTAQ?	6
   The National Vehicle and Fuel Emissions Laboratory	7
  Clean Cars and Fuels	8
  Clean Trucks, Buses, and Diesel Fuels	12
  Clean Nonroad (Off-Highway) Engines and Fuels	14
  Certification and Compliance	"s"s>1»^<^	17
  The National Clean Diesel Campaign	20
  Transportation and Global Climate Change	23
  International Programs	27
  Looking Forward	29

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Executive   Summary

       Controlling pollution from mobile sources is vital
       to improving the quality of our air and protecting
       public health. The Clean Air Act of 1990 empow-
ered the U.S. Environmental Protection Agency (EPA) to
take a variety of actions that has achieved significant
results. For example, EPA reduced the sulfur in gasoline
and diesel fuels and established successively more strin-
gent emission standards, both of which brought about
cleaner and better performing vehicles and engines.

Several programs have resulted in substantial emission
reductions and health benefits. In fact, the emission
reductions resulting from the clean fuel and vehicle
standards finalized  over the past several years will pre-
vent more than 24,000 premature deaths,  19,000 hospi-
talizations, and 3.2 million work days lost. When fully
implemented in 2030, the annual net benefits of these
programs will be approximately $175 billion, compared
to $11 billion in costs.

This report presents the most recent developments in
the EPA Office of Transportation and Air Quality's
(OTAQ's) key program areas, as EPA continues to
progress under the Clean Air Act. These accomplish-
ments would not have been possible without our stake-
holders' involvement and support. This report is a tribute
to their concerted efforts on behalf  of the environment.

Clean  Cars and Fuels. One of OTAQ's top  priorities
is making sure that new cars, and the fuels they use,
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are meeting what is known as the "Tier 2 vehicle stan-
dards." Starting in 2004, with plans to be fully imple-
mented in 2009, EPA's Tier 2 Vehicle and Gasoline
Sulfur Program represents a groundbreaking pollution
control strategy for motor vehicles. This program will
make new cars, sport utility vehicles (SUVs), pickup
trucks, and vans 77 to 95 percent cleaner than 2003
models, while reducing sulfur levels in gasoline by 90
percent. Manufacturers are bringing to market the
cleaner vehicles faster than required, with 35 percent
of vehicles meeting the new standard in the first year.

     Cars are getting cleaner, but people are
     driving more.
                                             4000
                                            -3000
        Average Per-vehicle Emissions
        (grams hydrocarbons per mile)
                           Vehicle Miles Traveled
                               (in billions)
     1960  1970   1980  1990   2000  2010
Clean Trucks, Buses, and Diesel Fuels. Heavy-
duty trucks and buses are significant sources of air pol-
lution. EPA's Clean Diesel Truck and Bus Program sets
stringent emission standards for diesel engines and
calls for the introduction of clean, ultra low-sulfur diesel
fuel. Beginning in 2007, new highway diesel engines
will be as much as 95 percent cleaner than current
   Dramatic Emission Reductions

   OTAQ's programs have resulted in dramatic emission
   reductions. Compared to 1995 baselines, these programs
   reduced pollutants by the following amounts in 2004:

   • 1.85 million tons of volatile organic compounds

   • 1.45 million tons of nitrogen oxides

   • 25,000 tons of particulate matter

   • 18,000 tons of fine particulate matter

   • 11.3 million tons of carbon monoxide
models, and sulfur levels in fuel will be reduced by
more than 97 percent, to 15 parts per million (ppm).
OTAQ is working closely with engine manufacturers,
trucking companies, and refiners to ensure the smooth
implementation of these new standards.

Clean Nonroad Engines and Fuels.  From large
agricultural machines to residential  leaf blowers, non-
road engines emit large quantities of harmful particu-
late matter and nitrogen oxides. OTAQ has developed a
comprehensive set of fuel and engine requirements
that will reduce sulfur in nonroad diesel by more than
99 percent by  2010. More stringent standards for loco-
motive, large marine diesel, and small gasoline (e.g.,
lawn and garden)  engines are currently being devel-
oped. In addition,  EPA has established standards for
recreational and other nonroad engines, such as those
found on motorcycles, all-terrain vehicles, and snow-
mobiles, that will  reduce nitrogen oxides, particulate
matter, hydrocarbons, and carbon monoxide by 20 to
99 percent, depending on the vehicle engine type.

Certification and Compliance. EPA's certification
and compliance programs ensure that vehicles and
engines are designed to meet emission standards
when they first enter the market and that they contin-
ue to meet those standards throughout their useful
life. OTAQ monitors the environmental performance of
vehicles on the road and works with manufacturers to
recall vehicles that fail to meet standards.  In 2004, auto-
motive manufacturers voluntarily recalled 2.7 million
vehicles, representing 35 different emission-related
problems. These recalls will prevent the release of thou-
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sands of tons of pollutants into the air. OTAQ also now
certifies 2,300 engine models, up from about 300 in the
early 1990s.

The National Clean Diesel  Campaign.  In 2004,
EPA crafted a comprehensive initiative to implement
diesel regulations for future engines and address the
emissions of the 11 million diesel engines in use today.
With this campaign, EPA is targeting specific diesel
applications. For example, under Clean School Bus
USA, more than 15 million residents and 2 million chil-
dren in 150 school districts now benefit from cleaner
air due to cleaner buses.

Transportation and Global Climate Change.
In addition to emissions that contribute to urban air
pollution, the transportation sector accounts for
30 percent of U.S. greenhouse gas emissions.
EPA is working on solutions. For example,
OTAQ's automotive engineers are developing
advanced technologies, such as clean diesel
combustion and hydraulic hybrids, and working
with commercial  partners to bring these
hybrids to market. In addition, OTAQ's voluntary
initiatives are helping thousands of partners save
billions of gallons of fuel—and thereby reduce car-
bon dioxide emissions—by implementing best shipping
and delivery practices and by encouraging employers
to offer outstanding commuter benefits.

International Programs. Nearly every
country in the world suffers from air pol-
lution, and each year more and more
of it is generated from the trans-
portation  sector. During the 2002
World Summit for Sustainable
Development (WSSD) in Johannesburg, South Africa,
EPA led the development of the Partnership for Clean
Fuels and Vehicles (PCFV), which is made up of more
than 70 members from  around the world. As a leading
and founding member of the PCFV, EPA participates in
numerous international  efforts to reduce air pollution
from vehicles, such as helping countries remove lead
from gasoline, reduce emissions from engines, and
lower sulfur in fuels.
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What  Is  OTAQ?
The Office of Transportation and Air Quality (OTAQ) is
housed within  EPAs Office of Air and Radiation. OTAQ's
mission is to protect public health and the environment
by reducing air pollution from motor vehicles, engines,
and the fuels used to operate them and by encouraging
business practices and travel choices that minimize
emissions. OTAQ's programs address emissions from
the range of mobile  sources: cars,  light trucks, large
trucks, buses, nonroad recreational vehicles (e.g., dirt
bikes and snowmobiles), farm and  construction equip-
ment, lawn and garden equipment, marine engines, air-
craft, and locomotives.

OTAQ operates with an annual  budget of more than
$100 million and a staff of more than 350 technical, poli-
cy, and support personnel. Working out of EPA head-
quarters offices in Washington, DC, and the National
Vehicle and Fuel Emissions Laboratory in Ann Arbor,
Michigan, OTAQ's primary activities include:

•   Assessing  mobile source-related air  quality problems
    and developing and using sophisticated modeling
    tools to develop solutions and measure results.
                                   Establishing national standards to reduce
                                   emissions from on-road and nonroad mobile
                                   sources of pollution.

                                   Implementing national mobile source standards
                                   through certification processes and in-use monitor-
                                   ing strategies.

                                   Coordinating transportation and air quality policies
                                   with state, local, and federal agencies.

                                   Developing fuel efficiency programs and technolo-
                                   gies to reduce the emission of greenhouse gases
                                   from the transportation sector.

                                   Developing clean and efficient automotive technolo-
                                   gies and transferring them to the  marketplace.

                                   Operating  state-of-the-art models to support nation-
                                   al, state, and local emission inventories.

                                   Managing  international activities that leverage U.S.
                                   clean air experience and export technology solutions
                                   to developing countries.
                                               Office of Air
                                               & Radiation
         Office of
        Air Quality
         Planning
       & Standards
        Advanced
        Technology
         Division
     Office of
   Atmospheric
    Programs
        Office of
     Transportation
      & Air Quality
 Office of
Radiation &
 Indoor Air
Assessments
     &
 Standards
   Division
Compliance     Laboratory     Transportation   Transportation
     &          Operations          &              &
 Innovative        Division         Climate         Regional
 Strategies                        Division        Programs
  Division                                         Division
                                                           Office of Transportation and Air Quality — Progress Report

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The National Vehicle and Fuel
Emissions Laboratory

  Po carry out its mission, EPA established the National
    Vehicle and Fuel Emissions Laboratory in 1971 in
Ann Arbor, Michigan—near the birthplace of the automo-
bile industry and home to some of the world's most
advanced vehicle manufacturing, testing, and research
facilities. Since its founding, the Lab has been at the
forefront of developing clean automotive technology and
designing programs to reduce and prevent air pollution.

The Lab's original  mission was to test cars, light trucks,
and heavy-duty engines to make sure they met estab-
lished emission and fuel economy  standards before
entering mass production. While this work remains a
core function, the Lab is now recognized as a  leader in
advanced testing and automotive technology.

The Lab is also responsible for:

•   Determining whether vehicles and engines comply
    with emission standards and fuel economy require-
    ments.

•   Testing fuels as well as highway and nonroad vehi-
    cles and engines to verify compliance with regula-
    tions designed to reduce emissions.

•   Researching, evaluating, and developing advanced
    technologies for controlling emissions, as well as
    developing new strategies for improving fuel effi-
    ciency.

The Lab has recently undergone extensive moderniza-
tion and is now home to some of the most sophisticat-
ed instrumentation systems for emissions measure-
ment in the world. EPA can now test more types of
vehicles and engines under a broader range of operating
conditions than ever before. For example, the Lab has
instruments capable of accurately measuring emissions
from the newest, ultra low-emitting Tier 2 vehicles, along
with post-2007 heavy-duty engines  and hydrogen-fueled
(fuel cell) vehicles. This facility also houses the first four-
  What is a Dynamometer?
  I
  A dynamometer functions as a treadmill for vehicles.
  Vehicles on a dynamometer run on rollers to simulate
  driving conditions so that technicians can measure
  tailpipe emissions.
wheel drive dynamometer site in the nation, specifically
designed for certification testing of a wide range of vehi-
cles, including four-wheel drive vehicles, chassis-certified
heavy-duty vehicles, and hybrids.

As new needs arise, the Lab will continue to maintain
its position as a global leader in emissions testing and a
resource to other nations as they develop stronger emis-
sion standards and associated testing requirements.
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Clean  Cars  and Fuels
Pairing Engine  Technology Innovations with Cleaner Fuels
for Optimal  Results
     For more than 30 years, EPA has been working to
     reduce emissions from passenger vehicles. These
     efforts were accelerated with the passage of the
1990 Clean Air Act Amendments. By the mid-1990s, EPA
had set new emission standards for vehicles, developed
a process to allow states to seek even further reduc-
tions, and implemented new controls on fuel  quality.
Together these actions dramatically reduced vehicle
emissions and paved the way for the Agency to imple-
ment even more stringent regulations, known as the
Tier 2 vehicle standards.
EPAs first action following the passage of the 1990 Clean
Air Act Amendments was to implement the new tailpipe
standards set by Congress. This regulation, called the
Tier 1 standards, required auto manufacturers to meet
new emission standards, which reduced overall nitrogen
oxide emissions by up to 70 percent and particulate mat-
ter emissions by 54 to 69 percent, depending on the
vehicle. Manufacturers began  to meet these standards
in 1994—the same year that EPA also phased in require-
ments that new cars be equipped with onboard diagnos-
tic (OBD) systems to alert drivers to malfunctioning
emission control equipment.
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National  Low Emission
Vehicle  Program
  In 1997, EPA negotiated an agreement between states,
  auto manufacturers, and environmental groups to
allow seven Northeast states to surpass the Tier 1 stan-
dards. Under the resulting voluntary agreement, called
the National Low Emission Vehicle (NLEV) program, auto
manufacturers voluntarily agreed to produce vehicles
that were 70 percent cleaner than average Tier 1 cars.
  Tier 1, NLEV, and RFG:
  An Emissions Success Story

  As of 2003, these important programs together eliminated
  over 2.2 million tons and over 21,000 tons of harmful
  emissions of NOx and PM respectively each year.

  The RFG program alone prevents 24,000 tons of toxic air
  pollutants, as well as 100,000 tons of other smog-forming
  air pollution, each year.
Cleaner Fuels

  In the 1990 Clean Air Act Amendments, Congress
  included fuel along with vehicle technology as a
potential source  of emission reductions. In particular,
Congress asked  EPA to use fuels as an additional con-
trol strategy in areas with poor air quality or unique sea-
sonal conditions. For example, carbon monoxide forms
more easily in cold weather and at high altitudes, where
diminished oxygen in the air results in less complete
combustion. Denver pioneered a wintertime oxygenate
program in the 1980s, requiring its gasoline to contain
an oxygenated additive, such as ethanol. Significant
reductions in carbon monoxide were  achieved. This suc-
cess was reflected in the 1990 Amendments with the
requirement that carbon monoxide nonattainment areas
implement similar programs.

Similarly, EPAs highly successful "reformulated" gasoline
(RFG) program mandated cleaner-burning fuel for areas
with the worst smog pollution. While  initially mandated in
nine metropolitan areas with the worst smog, 17 states


Office of Transportation and Air Quality —  Progress Report
and the District of Columbia currently use RFG, either to
comply with the Clean Air Act or on a voluntary basis.
Today, about 30 percent of the gasoline sold in the
United States is reformulated, and, as a result, roughly
75 million Americans are breathing cleaner air.
The Tier  2  Program: A New
Generation  of Vehicle
and Fuel  Standards
    The Tier 2 Vehicle and Gasoline Sulfur Program repre-
    sents a new approach to EPAs pollution control
strategies for motor vehicles. Tier 2 addresses fuels and
engines as one interrelated system. This cost-effective
approach was found to be so successful that EPA later
applied it to the landmark Heavy-Duty Diesel and the
Nonroad rules.

Tier 2 requires manufacturers to produce vehicles that
emit significantly less harmful emissions than cars and
light trucks produced even as recently as model year
2003. Because sulfur in gasoline, like lead, is a fuel con-
taminant that inhibits the function of advanced catalytic
converters, Tier 2 also requires refiners to reduce sulfur
levels by 90 percent.

UnderTier 2, vehicle regulations were applied equally for
the first time—so that even the largest SUVs, pickup
trucks, and vans must meet the same national emission
standards as cars.  UnderTier 2, vehicles and fuels are
treated as a single system, so that the cleaner vehicles
run on the cleaner fuels. These standards  apply regard-
less of whether vehicles operate on gasoline, diesel
fuel, or alternative  fuels.

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  Tier 2's Lasting Public Health Effects

  EPA estimates that a national fleet of Tier 2 vehicles will
  prevent annually:

   • 683,000 missed workdays from pollution-related
     illnesses

   • 4,300 premature deaths

   • 10,000 cases of chronic and acute bronchitis

   • Tens of thousands of respiratory problems
Tier 2's success was accomplished by fostering creative,
effective partnerships to secure widespread support
from a diverse group of stakeholders, including the auto-
mobile industry, the oil industry, states, and environ-
mental groups. Because Tier 2 includes an incentive for
companies to meet Tier 2 pollution reductions quickly
and sooner than required, the auto industry began pro-
ducing a significant number of very clean vehicles earlier
than required by the program—despite the challenging
technical requirements and implementation schedule.
The refining industry is also successfully completing the
process, reducing sulfur levels by 90 percent in  U.S.
gasoline.
   Reductions in Gasoline Sulfur
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Empowering the  Public
EPA also provides consumers with environmental infor-
mation about vehicles so they can make informed deci-
sions when buying a vehicle. For example, OTAQ
developed and maintains the Green Vehicle Guide
(www.epa.gov/greenvehicles). This Web-based tool
helps consumers find the cleanest, most fuel-efficient
vehicle that meets their  needs. Users can select a spe-
cific vehicle to see its performance on a scale of 0 to
10,  with 10 being the best, and compare it to others.
Today, the Green Vehicle Guide is one of OTAQ's most
visited Web sites. Over the past year, the site has
received an average of nearly  1 million hits per month.
  Improving Fuel Economy Estimates

  EPA is revising the way it calculates the fuel economy
  estimates posted on all new vehicles. Working with con-
  sumer groups and auto manufacturers, EPA is developing
  new procedures that will better account for real-world
  driving conditions. The goal is to ensure that the fuel econ
  omy information for all new vehicles reflects actual vehi-
  cle performance on the road.
EPA, along with the Department of Energy, also pub-
lishes the Fuel Economy Guide booklet every year. It
contains information about vehicles' fuel economy so
consumers can make clear comparisons. EPA also
                  Green Vehicle Guide
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maintains the nation's most extensive database on
vehicle fuel economy. The annual Fuel Economy Trends
report, which EPA has issued every year since 1975,
includes detailed information on each manufacturer's
fuel economy and summarizes key trends in automo-
tive technology.
Office of Transportation and Air Quality — Progre

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Clean  Trucks,  Buses,  and Diesel  Fuels
Cleaning Up America's Transportation Workhorses
      The nation's more than 2 million heavy-duty trucks
      and buses play an essential role in the U.S. econ-
      omy and transportation network. They are also a
major source of nitrogen oxides and particulate matter.
These emissions create significant health problems for
millions of Americans. For this reason, one of OTAQ's
major goals is to clean up heavy-duty vehicles and the
fuels that power them.

Since the 1990 Clean Air Act Amendments, OTAQ has
taken several critical steps to reduce pollution from
heavy-duty vehicles. For example, in 1993, a 500 parts
per million (ppm) limit on sulfur in diesel fuel took effect.
As of 2004, truck and bus manufacturers were required
to meet more stringent emission standards—an action
that will reduce particulate matter by 55,000 tons per
year. The standards required gasoline trucks to be 78
percent cleaner and diesel trucks to be more than 40
percent cleaner than existing models. These standards
represented a more than 40 percent reduction in emis-
sions of nitrogen oxides, as well as reductions in hydro-
carbons, from diesel trucks and buses. These standards
laid the groundwork for the comprehensive 2007 Clean
Diesel Truck and Bus Program.
12
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 Highway Diesel Standards
 12

 10

 F8
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  6

  4

  2

  0
1985  ~ uncontrolled levels
                          1988
                                     PM Standards

The 2007  Clean  Diesel Truck
and Bus Program
    The 2007 Clean Diesel Truck and Bus Program is
    EPA's latest and most ambitious strategy to reduce
emissions from heavy-duty vehicles. This program pairs
engine technology changes with fuel changes to achieve
significant reductions at the least cost to society.

Under the new standards, fuel sulfur will be cut from
the current  level of 500 ppm to 15 ppm—a 97 percent
reduction. This step will enable advanced emission con-
  New Standards Yield Many Benefits

  The 2007 Clean Truck and Bus Program's standards will
  mean huge reductions in ozone and ambient particulate
  matter, which are major air pollutants. In 2030, these
  reductions will prevent annually:

   • 8,300 premature deaths

   • More than 9,500 hospitalizations

   • 1.5 million work days lost

  The total health benefits are worth more than $70 billion
  each year, with costs of only $4 billion.
trol technologies to be installed that virtually eliminate
particulate matter and nitrogen oxide emissions from
diesel engines. These standards were successfully
developed in partnership with oil and engine companies,
state and local governments, and the public health and
environmental community.

The combination of cleaner vehicles and cleaner fuels
will result in dramatic environmental improvements. By
2030, EPA expects annual reductions of 2.6 million tons
of nitrogen  oxides, 115,000 tons of hydrocarbons, and
nearly 17,000 tons of air toxics.  EPA's new program will
result in particulate matter and nitrogen oxide emission
levels that are 90 percent and 95 percent below today's
levels, respectively. These enormous air quality improve-
ments will translate into significant health benefits for
the American public.
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Clean Nonroad  (Off-Highway)
Engines and Fuels
Achieving  Reductions from Nonroad Mobile Sources,
Large and Small
     From lawnmowers and boats to tractors and quarry
     trucks, nonroad vehicles, sometimes referred to
     as "off-highway" vehicles, are America's work
engines and play engines. But like trucks and buses,
nonroad diesel engines are also a significant source of
harmful particulate matter and nitrogen oxides, which
contribute to ground-level ozone (smog) and other perva-
sive air quality problems. These pollutants can travel
hundreds of miles so that a rural farm tractor can con-
tribute to poor air quality in a distant city or national
park. Worse, these machines often operate in close
proximity to construction workers, farm families, and
nearby residents, emitting pollutants directly into peo-
ple's breathing space.

In the 1990 Clean Air Act Amendments, Congress
directed EPA to study emissions from all nonroad
engines and vehicles, and to set emission standards if
14
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these sources were found to cause or significantly con-
tribute to air pollution. In the early 1990s, EPA focused
on completing this emission study and building  consen-
sus around the need for pollution controls.

The Agency then set to work developing the first-ever
emission standards for nonroad engines. Because of the
wide variety of nonroad engines, EPA has had to tailor
its rulemakings to both engine size and purpose. OTAQ
also issued these regulations in a series of steps, or
"tiers," in order to take advantage of advancements in
control technology.  For example, between 1995 and
1999, OTAQ issued a series of regulations affecting lawn
and garden equipment. A later rulemaking set standards
for recreational vehicles (e.g., snowmobiles and all-ter-
rain vehicles) and certain industrial equipment. Today,
there are emission standards affecting virtually every
type of nonroad engine—from chainsaws and snowmo-
biles to yachts and backhoes.
  Large Benefits from a "Small" Source

  Together, EPA's rules affecting lawn and garden equip-
  ment, fork lifts, and recreational vehicles will cut particu-
  late matter and nitrogen oxide emissions by about 500,000
  tons peryear. The recreational vehicle regulation alone
  will bring about an estimated $8 billion in annual health
  benefits by 2030.
engines used in most construction, industrial, and agri-
cultural equipment and sets the stage for comparable
reductions from locomotives and marine vessels.
Cleaning  Up America's
Workhorses
    Like EPA's regulation affecting heavy-duty trucks and
    buses, the Clean Air Nonroad Diesel Program inte-
grates engine and fuel controls as a system to gain the
greatest emission reductions. Engine standards take
effect for most new engines in 2008 and final standards
phase in starting in 2011, coinciding with the availability
of the clean fuel. These standards will reduce particulate
matter and nitrogen oxide emissions by 90 percent.

In addition, new fuel requirements decrease the allow-
able levels of sulfur in fuel used in  nonroad diesel
engines, locomotives, and marine vessels by more than
99 percent. These fuel improvements will create imme-
diate and significant environmental and public health
benefits by reducing particulate matter from engines in
the existing fleet of nonroad equipment. They also make
it possible for engine manufacturers to use advanced
emission control technologies, similar to those upcom-
ing  for highway diesel trucks and buses.
Large Nonroad Engines
    Pollution emitted by large nonroad diesel vehicles
    such as bulldozers, locomotives, and  marine vessels
has been a particular concern to the Agency. These high-
ly durable engines can operate for decades and emit
large amounts of nitrogen oxides, particulate matter, and
air toxics, each of which contributes to serious public
health problems. Over the last several years, OTAQ has
developed a series of regulations to reduce emissions
from these engines. These efforts were advanced signif-
icantly in 2004 with the completion of the Clean Air
Nonroad Diesel  Program. This landmark program
achieves dramatic reductions from large nonroad
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  EPA's Clean Air Nonroad Diesel Program:
  A 40:1 Benefit-Cost Ratio

  The long-term annual health benefits of this important pro-
  gram include the prevention of approximately:

   • 6,000 children's asthma-related emergency room visits

   • 8,900 hospitalizations

   • 12,000 premature deaths

   • 15,000 heart attacks

   • 280,000 cases of respiratory symptoms in children

   • 1 million lost work days

  When fully implemented, the annual monetized health  and
  welfare benefits of this program will exceed $80 billion,
  compared to implementation costs of $2 billion.
The Clean Air Nonroad Diesel Program marks the first
time a major mobile source regulation was not legally
challenged in court. This is a tribute to OTAQ's extensive
collaboration with the nonroad industry, environmental
and public health groups, and state governments. These
groups committed to help EPA design a solution that
was good for the environment and good for business.
Keeping Locomotives on Track
for Reductions
     About 25,000 diesel-electric locomotives currently
     operate in the United States, and in general they
produce extremely high levels of pollution. Because a
typical locomotive lasts 40 years or more, the turnover
to new locomotive models takes decades. In 1997,
OTAQ established standards requiring that current loco-
motives be made cleaner when they are remanufactured
to "as new" condition—a step that will cut nitrogen
oxide emissions for much of the existing locomotive fleet
by 33 percent between 2007 and 2009. This rule also set
the first emission standards for newly manufactured
locomotives.

In May 2004, EPA announced its intent to propose even
more stringent locomotive engine emission  standards.
These standards would require the use of advanced
emission-control technologies similar to those required
by the Clean Air Nonroad Diesel Program. The availability
of clean nonroad diesel fuel required under the  new
nonroad fuel standards will enable the use of this tech-
nology on locomotive engines.
Managing Marine Vessels
     Unlike land-based diesel vehicles, many large marine
     vessels travel the globe. For this reason, EPA has
used two separate processes to achieve reductions.

For large ocean-going vessels, EPA has worked with the
International Maritime Organization (IMO) to set emis-
sion standards. The IMO was established in 1948 under
the United Nations to address safety, navigation, and pol-
lution prevention for ships engaged in international trade.
Current  EPA standards are equivalent to the levels deter-
mined by the IMO. OTAQ is also considering a second
tier of standards that would reflect additional reductions
that can be achieved through engine-based controls.

For smaller vessels, EPA has adopted regulations similar
to land-based nonroad and  locomotive engines. The cur-
rent standards  take effect starting between 2004 and
2007,  depending on the size of the engine, and will
reduce nitrogen oxide emissions by about one-third and
particulate matter emissions by about 25 percent. As
with  locomotives, EPA has  announced its intention to
propose more stringent emission standards for all new
commercial, recreational, and auxiliary marine diesel
engines, except the very large engines used for propul-
sion on deep-sea vessels.
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Certification and Compliance
Keeping Vehicles Clean
   Implementing regulatory programs is an important
   part of EPA's overall air quality strategy. OTAQ not
   only works to ensure that vehicles are designed to
meet emission standards when they first enter the mar-
ket, but also that they continue to meet those standards
throughout their useful life—which, for most passenger
vehicles,  is more than 100,000 miles.

Because  the vast majority of cars and trucks on the
road today are not new,  and therefore do not meet
EPA's Tier 2 standards, OTAQ  expends significant effort
to ensure that vehicles are in compliance with the
emission standards.

To help vehicles stay clean, EPA works with state agen-
cies to implement inspection and maintenance (I/M) pro-
grams in areas with serious air pollution problems to
ensure that emission control systems continue to oper-
ate optimally. Still in place today, I/M programs identify
and  clean up the most polluting vehicles by alerting
motorists when repairs are needed.
Office of Transportation and Air Quality — Progress Report

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  Keeping New Cars Clean in 2004

   • Manufacturers conducted approximately 2,000 emis-
     sions tests to show that their new vehicles meet the
     emission standards.

   • EPA conducted random and selective test audits on
     more than  150 car models and found 15 that had emis-
     sions problems. Manufacturers corrected these prob-
     lems before the vehicles were mass-produced.

   • Manufacturers voluntarily recalled 2.7 million vehicles
     due to 35 emission-related problems. These recalls will
     prevent the release of thousands of tons of pollutants
     into the air.
Testing  Emissions  Before
Mass Production
    Before vehicles are mass-produced, EPA requires
    auto manufacturers to test prototype vehicles to
ensure they will minimize emissions throughout their
useful life. EPA audits these tests to confirm that they
are accurate and reliable. If the tests reveal a problem,
the manufacturer must fix it and demonstrate that the
modified prototype will pass the test before mass pro-
duction can begin. After completing the tests and other
                 analyses, prototypes that pass receive a certificate of
                 conformity from EPA, which enables the manufacturer
                 to sell vehicles of similar design in the United States.
                 This program prevents pollution by ensuring that all new
                 cars are designed to meet emission requirements
                 before they are even produced and sold.
                  Post-Production Emissions
                  Monitoring
                      Once vehicles are on the road, EPA requires manu-
                      facturers to report any emission-related defect that
                  is found on 25 or more vehicles for any given model
                  year. OTAQ reviews these defect reports to assess the
                  seriousness of the defect and the manufacturer's solu-
                  tions. These reports are one of the most useful tools to
                  help identify potential problems with vehicles warranting
                  further attention.

                  Both OTAQ and manufacturers test customer-owned
                  vehicles for emission problems. In addition to random
                  selections, OTAQ selects vehicles for testing by taking
                  into account information gleaned through its pre-produc-
                  tion audits, manufacturer defect reports,  and consumer
                  tips. In response to data collected from these tests, vir-
                  tually all of the emissions-related vehicle recalls over the
                  past decade have come from voluntary actions by
                  manufacturers.
  Tier 2 Clean Vehicles Hit the Roads Sooner
  Than Expected
       100%
                   Clean Vehicles Expected
                   Clean Vehicles Delivered
                                       60%
                   2004
2005
Engine Testing and Monitoring
     OTAQ also works closely with diesel truck, bus, and
     other engine manufacturers to ensure that these
engines meet emission standards and stay clean
throughout their useful lives. Similar to the vehicle certi-
fication process, engine manufacturers perform  emis-
sion tests on their engines and submit certification data
to EPA for review. OTAQ then analyzes the emissions
data and assesses whether the engine is clean enough
to meet the required specifications. If an engine meets
the standards, OTAQ issues a certificate of conformity,
which enables the engine to be sold within the United
States. In 2004, OTAQ issued a record number—approx-
18
                      Office of Transportation and Air Quality — Progress Report

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imately 1,800—certificates of conformity for heavy duty
and nonroad engines, including marine engines and
lawnmowers. In addition, OTAQ performs several hun-
dred emissions tests each year on heavy-duty diesel
trucks and equipment in normal operating conditions to
see how performance and emissions are affected.
   Marathon Tests

   OTAQ tests engines in a variety of conditions and settings to
   gain a better understanding of how a variety of factors
   affect an engine's emissions performance. In 2004, OTAQ
   conducted eight "marathon tests," so called because of the
   extreme distances covered. These tests totaled more than
   4,000 miles and provided about 75 hours worth of test data.
   Results from these tests help OTAQ determine how factors
   such as altitude, temperature, terrain, and driving habits
   affect an engine's emissions while the vehicle is in use.
Portable Emissions Measurement System
(PEMS)

PEMS, a breakthrough technology that OTAQ helped
develop, consists of miniaturized versions of the same
analyzers that OTAQ uses in labs. These portable systems
are installed in selected vehicles driven under real-world
conditions and collect a wide variety of information,
including:

 • Emissions concentrations of nitrogen oxides, carbon
   dioxide, and non-methane hydrocarbons.

 • Exhaust mass flow rate so that grams of emissions can
   be calculated.

 • GPS information so that grams-per-mile emissions can
   be calculated.
Starting in 2007, EPA will require a manufacturer-run
emissions testing program for heavy-duty diesel trucks.
Under this program, heavy-duty truck manufacturers will
start conducting their own tests  using a Portable
Emissions Measurement System in 2005 as part of a
pilot program, complementing EPA's own testing. The
program will expand nationwide with 2007 model year
diesel trucks. This cooperative effort among EPA, the
state of California, and industry represents a significant
advance in helping to ensure that the benefits of more
stringent emission standards are realized under real-
world driving conditions.
                                \
 • Engine electronic control module information so that
   grams-per-brake horsepower-hour emissions can be
   calculated.

 • Ambient weather information.

This information is used to build and verify OTAQ's  emis-
sions inventory models, confirm in-use compliance of vehi-
cles and engines, and determine real-world fuel economy.
The success of PEMS in vehicles has led experts to con-
sider adapting it for emissions testing of large engines
such as locomotive and marine engines, which are difficult
to test in a lab.
Office of Transportation and Air Quality — Progress Report



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The  National  Clean Diesel  Campaign
Cleaning Up  Today's  Diesel Engines
      Reducing emissions from diesel engines is one of
      the most important air quality challenges facing
      the country. Even with EPA's new heavy-duty
highway engine standards, over the next 20 years mil-
lions of diesel engines already in use will continue to
emit large amounts of nitrogen oxides and particulate
matter, both of which contribute to serious public health
problems. These problems are manifested by thousands
of instances of premature mortality, hundreds of thou-
sands of asthma attacks, millions of lost work days, and
numerous other health impacts.
In order to maximize reductions from all diesel engines,
EPA launched a comprehensive initiative called the
National Clean Diesel Campaign. The Campaign uses a
multi-pronged approach. First, the Campaign is commit-
ted to the successful implementation of the 2007 Clean
Diesel Truck and Bus Program and the Clean Air Nonroad
Diesel Program. Second, EPA will develop new emis-
sions requirements for locomotives and marine diesels,
including large commercial marine engines. Lastly, to
address engines already in use today that are not sub-
ject to the new regulations, the Campaign is promoting
2(1
    Office of Transportation and Air Quality — Progress Report

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the reduction of emissions through a variety of
cost-effective and innovative strategies, including
switching to cleaner fuels and "retrofitting" engines
through the addition of control devices. The Energy
Policy Act of 2005 also includes grant provisions and
other incentives to help facilitate voluntary clean diesel
actions nationwide.

                                                                                           ly      '   »
Sector-Based Voluntary
Programs  Leading  the Way
    The National Clean Diesel Campaign is focused on
    leveraging local, state, and federal resources to
install cost-effective retrofit technologies on diesel
engines, adopt best practices, develop demonstration
projects, and track and report results. More than 500
partners are involved  in approximately 220 voluntary
projects nationwide.
The partnerships are organized around sectors that pro-
vide the best opportunity to obtain significant reduc-
tions, produce emissions with immediate impacts on
public health, or comprise a relatively large portion of
the country's diesel emissions inventory.
                    Distribution of National Clean Diesel Campaign Projects in 2004
       Tacoma
  Lane Regional  Portlan
                                             Winnebago  Stateof|owar
                                               Lincoln
                            Santa Fe

              San Diego    phoen
                 /^
                 r    jL
 A    Milwaukee   Okemos     Corning  Maybn
 Kettle Moraine       } *• AAl>n Arb°| NewYork City
        „. .            /  XF Edinboro
                                                                                                 Augusta

                                                                                        ambridge  Medford
                                                                                      Albany.   A   Boston
                                                                                               NewHaven
                                                                                              Stamford
                                                        ouston
Office of Transportation and Air Quality — Progress Report
                                                 21

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  Clean Ports USA Demonstrates Success

  The Port of Houston Authority, the Port of Tacoma, and
  Massachusetts Port Authority have received EPA grant
  funding to demonstrate how retrofitting trucks,yard equip-
  ment, straddle carriers, and rubber-tired gantry cranes
  with diesel oxidation catalysts and using ultra low-sulfur
  diesel and emulsified diesel fuel at terminals reduces local
  air pollution.
The National Clean Diesel Campaign partnerships
include:

•  Clean School Bus USA. Partners with school
   transportation officials and local and state govern-
   ments to reduce diesel pollution from the nation's
   school bus fleets.

•  Clean Ports USA. Helps reduce diesel emissions
   at U.S. ports.

•  Clean Construction USA. Encourages the use
   of retrofit technologies and engine replacement  in
   construction equipment at major construction
   projects  in  areas that do not meet the national air
   quality standards.

•  Clean Agriculture USA. Joins with the farming
   community, government agencies, and nongovern-
   mental organizations to promote clean diesel strate-
   gies, including biofuels and renewable fuels across
   the country.

•  SmartWay Transport.  Partners with both ship-
   pers and carrier fleets to create highly fuel-efficient,
   low-emissions trucks that deliver freight in the
   United States. Companies involved with the pro-
   gram include Federal Express, UPS, IKEA, and The
   Home Depot.
                                                       Regional  Efforts
A     critical component of the National Clean Diesel
     Campaign is to promote regional initiatives that use
a proactive, incentive-based approach to achieve results.
Regional partners agree to collectively leverage addition-
al funds and take a local approach to reducing harmful
emissions. One of the first such efforts is the West
Coast Diesel Emissions Reductions Collaborative,  in
which a number of partners are working together  to
reduce air pollution emissions from diesel engines along
the West Coast. In addition to EPA, partners include:

•  U.S. Department of Agriculture/Natural Resource
   Conservation Service

•  U.S. Department of Energy

•  U.S. Department of Transportation

•  State,  local, non-profit, and private sector partners
   from California, Alaska, Washington, and Oregon

•  Canada and Mexico

Other regional collaboratives are working to reduce
diesel emissions in their respective regions.  For exam-
ple, the Midwest Diesel Initiative is a new public-private
effort to reduce diesel emissions along major transporta-
tion corridors and in various sectors, including trucking,
locomotive, construction, and ports, with emphasis on
urban areas. The Northeast Diesel Collaborative encour-
ages participants to engage in projects that will reduce
transportation-related air pollution to help address high
asthma rates.
22
     Office of Transportation and Air Quality — Progress Report

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Transportation  and Global  Climate  Change
Tackling Challenges with Technical Innovations and Partnerships
        While the transportation sector is crucial to the
        nation's economy and personal mobility, it is
        also a significant source of greenhouse gas
emissions. In 2002, almost one-third of all greenhouse
gases released in the United States came from the trans-
portation sector, mostly from carbon dioxide released
through the combustion of diesel and gasoline fuels.

OTAQ is working both to improve the Agency's knowl-
edge about the transportation sector's contribution to
greenhouse gas emissions and to reduce the amount of
greenhouse intensity of this sector. These efforts are
focused in three areas:

•  Developing new automotive technologies that
   improve fuel efficiency.

•  Reducing nationwide fuel consumption through vol-
   untary programs that encourage Americans to drive
   wisely and trucking companies to enhance the fuel
   efficiency of their fleets.
Office of Transportation and Air Quality — Progress Report
                                       23

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•   Developing inventories and models to help track
    emissions and evaluate the potential costs and ben-
    efits of reducing the greenhouse gas intensity of the
    transportation sector.

These efforts are an important part of the
Administration's broader strategy to reduce greenhouse
gas emissions through voluntary programs and invest-
ments in emerging technologies.
Developing Clean Automotive
Technology
    Engineers at OTAQ's National Vehicle and Fuel
    Emissions Lab are working to develop a new gener-
ation of clean, efficient vehicles. To date, EPA has
received 29 advanced patents in the fields of engine
design and automotive technology and has 19 more
patents pending. To transfer this technology to the mar-
ketplace as quickly as possible, OTAQ has developed
formal partnerships with private companies like Ford
Motor Company and Eaton Corporation to help test and
commercialize EPAs technologies. Currently, OTAQ is
focused on  developing two promising technologies—
hydraulic hybrids and clean diesel engines.

Hydraulic  Hybrid Vehicle

Research

OTAQ's automotive engineers are leading the nation in
the development of hydraulic hybrid vehicles. This tech-
nology uses a hydraulic energy storage and propulsion
system to capture and store energy normally wasted in
vehicle braking. This energy is used to help propel the
vehicle during the next acceleration.

OTAQ has focused its efforts on improving two kinds of
hydraulic hybrids: "mild" and "full." A mild hydraulic
hybrid uses hydraulic components that are "added on"
to a conventional vehicle engine system and do not fun-
damentally change the way the vehicle is powered. A
full hydraulic hybrid  completely integrates the hydraulic
components into the powertrain system and can thus
  Fuel Efficiency Facts
     Since 1997 fuel economy for passenger vehicles has
     been relatively constant, ranging from 20.6 to 21 miles
     per gallon (mpg).

     Model year 2005 vehicles are estimated to average 21
     mpg. This is 0.2 mpg higher than 2004, but 5 percent
     below the fleet-average fuel economy peak value of
     22.1  mpg achieved in 1987.

     This year, cars and light trucks are each projected to
     account for 50 percent of vehicle sales.
maximize the full potential of the energy storage and
propulsion systems of the technology.

Using mild hydraulic hybrid technology, OTAQ recently
built a delivery truck that operates at 25 to 30 percent
more miles per gallon than a comparable standard deliv-
ery truck. OTAQ is now building a full hydraulic hybrid
delivery truck with UPS and other partners to allow a
fuller demonstration and evaluation of the technology.
This vehicle is expected to attain 60 to 70 percent more
miles to the gallon than comparable delivery trucks.
OTAQ also built the world's first full hydraulic hybrid
SUV, which averages 55 percent more miles per gallon
than its conventional counterparts.

Clean Diesel Combustion

Engine

Clean  diesel vehicles, together with hybrids, offer prom-
ising near-term improvements in fuel economy and
greenhouse gas reductions. OTAQ is working with
International Truck & Engine Corporation and Ford Motor
Company to develop an extremely efficient, clean, and
cost-effective diesel combustion engine for cars, SUVs,
and light pickup trucks.  In 2004, OTAQ developed a
clean diesel combustion engine and deployed it suc-
cessfully in a minivan. This is a promising technology for
reducing nitrogen oxides—without the need for any
exhaust treatment for nitrogen oxides. Results so far
24
     Office of Transportation and Air Quality — Progress Report

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also indicate that clean diesel combustion engines can
maintain the excellent fuel economy, performance, and
reliability of conventional diesel engines.
Reducing Fuel Consumption
and Emissions
    Reducing fuel consumption is a win-win situation for
    business, private individuals, and the environment.
Fewer gallons of fuel burned means reduced green-
house gas emissions, lower fuel costs, and less depen-
dence on imported oil. OTAQ's voluntary programs help
reduce fuel consumption in two key sectors—freight
transport and workplace commuting.

SmartWay Transport

Announced in February 2004, SmartWay is a voluntary
partnership between various freight-industry sectors and
EPA that establishes market-based incentives for fuel
efficiency improvements and greenhouse gas emission
reductions. By 2012, this initiative aims to eliminate 33
million to 66 million metric tons of carbon dioxide emis-
sions and up to 200,000  tons of nitrogen oxide emis-
sions per year. At the same time,  the initiative will result
in fuel savings of up to 150 million barrels of oil annually.
Approximately 160 shipping, truck, and rail companies


  Reducing Unnecessary Idling

  Reducing unnecessary idling is a major component of EPA's
  SmartWay program. As a part of their daily routine, countless
  drivers sit and idle their vehicles, wasting valuable fuel and
  money and polluting the air. SmartWay partners are adopting
  innovative idle reduction technologies, taking advantage of
  proven systems that provide drivers with power, heat, and air
  conditioning without using the engine.

  To date, there are 50 stationary anti-idling projects, and
  mobile technology has been installed on  nearly 20,000
  trucks. These efforts will save nearly 40 million  gallons of
  diesel  fuel every year and reduce more than 440,000 tons
  of carbon dioxide, 7,000 tons of nitrogen oxides, and nearly
  200 tons of particulate matter annually.


Office of  Transportation and Air Quality — Progress Report
    SmartWay Partners are on track to eliminate
    1.75 million tons of carbon dioxide annually
    by 2007.
                                                          17
     16
  C,
  g
  |  15
  V)
  c.
  •-  14
  
  o
  o
     12
            C02 Emissions from SmartWay Partners
1.75 million
 tons C02

| C02 Emissions without SmartWay Commitments
| C02 Emissions with SmartWay Commitments

                                                                2004       2005      2006
                                                                                Year
                                          2007
are enrolled in the program—representing more than
255,000 trucks.

As a partner, each company creates an action plan
detailing the technologies and policy measures it will
use to reduce fuel consumption, greenhouse gas emis-
sions, and air pollution. These measures include reduc-
ing truck idling, employing advanced aerodynamic fea-
tures on the tractors and trailers of their trucks, replac-
ing traditional tires with next-generation super single
tires, and increasing the amount of freight delivered by
rail. As SmartWay partners work towards achieving
these environmental goals, they are also improving their
corporate bottom line. Most of the innovative technolo-
gies and strategies implemented in SmartWay will quick-
ly pay for themselves in just a few years and continue to
save these companies money for years to come.

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Best Workplaces for
Commuters5™ Tackle the
Daily Commute

  In addition to being stressful for workers, the daily
  commute represents another significant source of
emissions. In 2002 alone, 5.7 billion gallons of fuel were
wasted in traffic congestion—more than 500 times the
amount of oil spilled by the Exxon Valdez—unnecessarily
releasing 50  million tons of carbon dioxide into the
atmosphere.

In response,  EPA is working with employers across the
country to reverse the trend of longer, single-occupancy
vehicle commuting. OTAQ has created a list of the Best
Workplaces for Commuters to formally recognize
employers that offer outstanding commuter benefits—
from providing free transit passes to offering the flexibili-
ty of working from home. More than 1,100 employers
representing more than 2 million workers have made
the list so far. In 2004, these exemplary commuter ben-
efits prevented the release of more than 900,000 metric
tons of carbon dioxide into the air. Each year, these
employers also reduce the need for roughly 275,000
parking spaces, reduce the number of miles driven by
more than 2  billion, and save more than 100 million gal-
lons of gasoline.
  Making an Impact with the FORTUNE 500

  In September 2004, EPA released the inaugural list of Best
  Workplaces for Commuters from the FORTUNE 500 compa-
  nies. The announcement was big news: more than 240
  media outlets across the country provided positive media
  exposure and recognition in 340 stories to these commuter-
  friendly companies. In October 2005, a second list of nearly
  90 FORTUNE 500 companies was released. These compa-
  nies include many household names, such as Intel,
  Microsoft, Boeing, and Nike, and their efforts are helping to
  reduce annual gasoline usage by 30 million gallons.
Developing New Tools and
Models

    The third component of OTAQ's climate-related work
    is to provide information on the impact of the trans-
portation sector to total greenhouse gas emissions and
to help evaluate the potential of technology advance-
ments and alternative fuels to help reduce emissions
from this sector. These efforts involve a range of activi-
ties, including:

•  Calculating greenhouse gas emissions from the
    transportation sector for inclusion in EPAs Inventory
    of U.S. Greenhouse Gas Emissions and Sinks. This
    information provides a common and consistent basis
    for policy analysis, and supports the development of
    cost-effective greenhouse gas mitigation strategies.

    Evaluating economic models to ensure that these
    models incorporate the most recent transportation-
    related information and accurately evaluate the  inter-
    action between transportation and other sectors of
    the economy.

•  Assessing the potential of vehicle technologies,
    including advanced gasoline, diesel, and gasoline
    hybrids, to significantly and cost-effectively improve
    vehicle fuel economy and reduce U.S.  dependence
    on foreign oil. This work also considers potential sav-
    ings to consumers in the form of reduced fuel and
    operating costs. EPA is also examining the green-
    house gas and criteria pollutant impacts of various
    renewable fuels.
26
     Office of Transportation and Air Quality — Progress Report

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                                                            -""-V1-,
                                                                                     ife I
International Programs
Working with the  World
       Nearly every country in the world suffers from air
       pollution, and each year more and more of it is
       generated from cars, trucks, and other mobile
sources. Huge growth in population and the number of
vehicles on the road is the new norm in most large
cities in developing countries. While these vehicles have
led to greater mobility, they have also created severe air
pollution problems. And, like so many other environmen-
tal problems, air pollution doesn't stop at borders.

Working in conjunction with other offices at EPA and in
the federal government, OTAQ has been engaged in
international sustainable transportation efforts to reduce
air pollution. Building on its successes in the United
States, OTAQ offers technical and policy assistance,
shares its 30 years of experience, and sponsors clean
fuel and vehicle projects with partners in four conti-
nents. Bilateral discussions and cooperation between
the United States and other countries are an important
part of this effort.
A Global Player
EPA is an active participant in several key international
environmental efforts including the United Nations'
World Forum for Harmonization of Vehicle Regulations
and the Partnership for Clean Fuels and Vehicles. At the
UN's World Forum, OTAQ has played a leadership role in
Office of Transportation and Air Quality — Progress Report

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  Air Quality and Health Across the Globe

   • 85 percent of the largest cities in developing countries
     have unacceptable air quality. Many cities in Asia,
     such as Bangkok, are faced with levels of suspended
     particulate matter that are at least twice as high as
     international health guidelines recommend. The pri-
     mary reasons: an abundance of vehicles without mod-
     ern emission control standards and the low quality of
     available fuel.

   • In China, the vehicle population doubled between 2002
     and 2004 and contributes 79 percent of the country's air
     pollution. About 1,000 vehicles a day are added in
     Beijing alone.

   • In Santiago, Chile, the transportation sector is the pri-
     mary source of air pollution, contributing 92 percent of
     the city's carbon monoxide emissions, 71  percent of
     nitrogen oxide emissions, and 46 percent of volatile
     organic compounds.

   • In Mexico City, the transportation sector is responsible
     for nearly all carbon monoxide emissions, more than 80
     percent of nitrogen oxides, and 40 percent of volatile
     organic compounds.
the development of global technical regulations. This
work is initially focusing on harmonizing test procedures
for diesel engines and motorcycles. When adopted,
these environmentally beneficial procedures will
improve compliance determinations worldwide and
allow developing countries to move more quickly to
state-of-the-art emission standards, bypassing the years
of development experienced in the United States and
elsewhere.  It will also reduce the costs of compliance
for engine manufacturers.

The Partnership for Clean Fuels and Vehicles (PCFV) was
developed as one of the Bush Administration's initiatives
adopted at the World Summit on Sustainable
Development in Johannesburg, South Africa in 2002.
Through the PCFV, OTAQ works collaboratively with
other countries, industry, and public health organizations
to eliminate lead in fuels and reduce sulfur in gasoline
and diesel fuels, leading to the introduction of clean
vehicles and engines. The partnership helps establish
demonstration  projects that show  how installing  emis-
sion control equipment on diesel buses and trucks,
along with using low-sulfur fuels, can reduce local air
pollution cost-effectively.  For example, in Mexico City, a
group has installed emissions-reducing equipment on 30
buses and trucks, which run on clean low-sulfur diesel
imported from  Texas.
  China and OTAQ: A Working  Partnership

  As in many other countries, the large increase of vehicles
  in China's major cities has brought severe air pollution. In
  response, OTAQ and China's State Environmental
  Protection Administration are working to improve fuel
  quality, enable cleaner new vehicles, and increase the
  compliance of vehicles that are on the road now. For
  example, OTAQ and China are working together to reduce
  sulfur in fuels and launch a retrofit demonstration project
  in Beijing. These projects are integral to Beijing's
  Environmental Protection Bureau's goal  of significantly
  reducing air pollution before the 2008 Olympic Games.

  OTAQ has attracted many partners to work on these proj-
  ects, including Harvard's  John F. Kennedy School of
  Government, Tsinghua University in Beijing, Energy
  Foundation China, Corning, Cummins, GM, and Ford. These
  partners are offering their expertise, consultation, equip-
  ment donations, funding,  and other assistance. OTAQ antici-
  pates that other groups will join in these efforts as well.
                                                               Office of Transportation and Air Quality — Progress Report

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Looking  Forward


Toward a Cleaner Future

      There is no question that significant progress has
      been made in reducing the transportation sec-
      tor's impact on the environment. Tens of mil-
lions of tons of pollutants have already been reduced,
with tens of millions of tons more reductions expected
in the years to come. Cars, trucks, buses, and the full
range of nonroad engines, such as construction and
farm equipment, are cleaner than they have ever been,
and there are regulations and standards in place to
keep these sources clean well  into the future.
However, the nation  still has notable challenges in
meeting the health-based air quality standards, with
more than 100 million people living in  areas that are
not attaining clean air quality levels.
Therefore, OTAQ will continue its efforts to reduce the
transportation sector's impact on the environment. By
setting and implementing cost-effective standards, estab-
lishing policies to address greenhouse gas emissions,
developing and bringing innovative clean technologies to
market, and expanding voluntary emission reductions
programs, EPA will reduce harmful emissions and pro-
tect public health and the global environment.

Future challenges for OTAQ include:

•  Successfully implementing the ultra low-sulfur diesel
   fuel program, the 2007 Clean Diesel Truck and Bus
   Program, and the Clean Air Nonroad Diesel Program.
Office of Transportation and Air Quality — Progress Report

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    Develop proposals for a new generation of locomo-
    tive and large marine engine standards, as well as
    small-spark ignition engine standards.

    Address air toxic emissions from mobile sources.

    Implement provisions of the 2005 Energy Policy Act
    and the Transportation Act (SAFETEA-LU).

    Expand the National Clean Diesel Campaign.

    Move clean automotive technologies from the lab to
    the road.

    Develop, strengthen, and expand EPAs innovative,
    market-based approaches to reduce fuel consump-
    tion and greenhouse gas emissions.
•   Export EPAs experience and U.S. technology to
    developing countries.

    Update models and other tools that provide assis-
    tance to state, local, and tribal governments in their
    efforts to achieve air quality goals.

With the demand for transportation and related services
growing every year, OTAQ's work has never been more
important. We look forward to reporting on these and
other accomplishments in the next progress report.
30
     Office of Transportation and Air Quality — Progress Report

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Clean  Transportation Milestones
1966
   Congress requires minimal emission controls on all
   model year 1968 and later cars.
1970
   EPA is established by a Presidential Executive Order.
                  Congress adopts the first major
                  Clean Air Act, and gives the new
                  Agency broad responsibility for reg-
                  ulating motor vehicle pollution. The
                  law calls for 90 percent reductions
                  in auto emissions and the phaseout
                  of lead from gasoline.
   Approximately 89 million passenger cars are driven
   on 1.7 million paved roads in the United States.
1971
   The National Vehicle and Fuel Emissions Laboratory
   opens.
1974
   Congress adopts the Energy Policy Conservation Act,
   which establishes fuel economy standards for cars.
1975
   The first catalytic converters appear in vehicles.
   Unleaded gasoline is available in the United States for
   the first time.
1980
   Between 1976 and 1980, as the amount of lead in
   gasoline dropped by 50 percent, blood-lead levels in
   children dropped 37 percent.
1981
   New cars meet the amended Clean Air Act standards
   for the first time. Sophisticated three-way catalysts
   with on-board computers and oxygen sensors appear
   in most new cars.
1983
   Inspection and maintenance programs are established
   in 64 cities, requiring passenger vehicles to undergo
   periodic testing for
   malfunctioning emis-
   sion control systems.

1985
   EPA establishes
   stringent emission
   standards for diesel-
   powered trucks and
   buses to take effect between 1991 and 1994.

1990
   Congress amends the Clean Air Act to require passen-
   ger vehicles to meet further reductions in hydrocar-
   bons, carbon monoxide, nitrogen oxides, and particu-
   late matter emissions. Areas with severe ozone prob-
   lems are required to use reformulated gasoline.

1991
   EPA sets more stringent hydrocarbon and nitrogen
   oxide tailpipe standards for passenger vehicles. These
   standards, known as the Tier 1  standards, take effect
   beginning with 1994 models. U.S. blood-lead levels
   decrease 78 percent compared to 1978.

1993
   EPA requires the sulfur content of highway diesel fuel
   be reduced from 2,000 parts per million (ppm) to 500
   ppm.
1994
   Manufacturers of nonroad engines, including construc-
   tion, agricultural, airport, and industrial equipment, are
   required to reduce emissions for the first time.
1996
                                                    The Clean Air Act's ban on
                                                    leaded gasoline officially
                                                    takes effect.
                             FEDERAL LAW PROHIBITS
                              THE INTRODUCTION OF
                            ANY GASOLINE CONTAINING
                             LEAD, OR PHOSPHORUS
                            INTO ANY MOTOR LABELED
                            UNLEADED GASOLINE ONLY"
Office of Transportation and Air Quality — Progress Report
                                                31

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1997
   EPA establishes standards for nitrogen oxides,
   hydrocarbon, carbon monoxide, particulate matter,
   and smoke for new and re-manufactured diesel-
   powered locomotives and locomotive engines.

                            EPA finalizes the National
                            Low Emission Vehicle
                            program, which achieves
                            substantial air pollution
                            reductions while provid-
                            ing the auto industry
                            flexibility to meet new
                            requirements in the most
                            efficient manner.
1998
   OTAQ requires further emission reductions from new
   nonroad diesel engines.
1999
   OTAQ finalizes Tier 2 regulations for passenger cars,
   SUVs, and light-duty trucks, lowering gasoline sulfur
   levels by 90 percent.

   OTAQ requires new large marine diesel engines (e.g.,
   fishing, tug, and tow boats) to reduce nitrogen oxides
   and particulate matter emissions. Similar standards
   are applied to recreational marine engines in 2002.
2000
   OTAQ's Clean Diesel Trucks and Buses Rule requires
   90 percent emission reductions from engines and
   cuts sulfur levels in highway diesel fuel by 97 percent
   (to 15 ppm).

   OTAQ launches the Voluntary Diesel Retrofit Program
   to encourage fleet owners to install pollution-reducing
   devices and use cleaner-burning fuel in current fleet
   of diesel vehicles.
2001
   OTAQ's Best Workplaces for Commuters5*'
   program is launched, formally recognizing  Workplaces
   employers who provide outstanding com-
   muter benefits to their employees.
for Commuters8"
2002
   The first restrictions on gasoline toxics take effect.
   Traffic congestion costs U.S. travelers a combined
   3.5 billion hours of delay.
2003
   OTAQ establishes the
   Clean School Bus USA
   Program to reduce chil-
   dren's exposure to diesel
   exhaust by encouraging
   idling reduction and
   cleaner school buses.

   The first hydrogen fuel cell vehicle receives OTAQ's
   approval for mass production.

   Approximately 135 million passenger cars are driving
   on 2.6 million miles of paved roads in the United
   States.
2004

   EPA's landmark Clean Air Nonroad Diesel Rule takes
   effect, requiring 90 percent reductions in emissions
   from nonroad diesel  equipment and reducing sulfur
   levels in nonroad diesel fuel by 99 percent.

2005

   OTAQ launches the National Clean Diesel Campaign
   to reduce emissions from existing and future
   diesel engines.
32
     Office of Transportation and Air Quality — Progress Report

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