United States
Environmental Protection
Agency
martWay Transport
Helping the Freight Industry Save Fuel,
Money, and the Environment
2005 Annual Report
-------
(US t
ouss i
-------
Table of Contents
Introduction
Background
hat I:
2
2
What Is SmartWay Transport? 3
Summary of Key Accomplishments, 2004-2005 4
Program Activities..TS^. 5
The SmartWay Transport Partnership 5
National Transportation Idle-Free Corridors Project 10
SmartWay Innovative Financing Program 11
jmartWay Technologies Program 13
Looking Ahead 14
-------
Introduction
Background
Economic prosperity in the United States is inextri-
cably tied to the commercial movement of goods
by truck and rail. Trucks and locomotives move
more than 80 percent of the nation's freight—some 9
billion tons each year—valued at nearly $7 trillion.
While essential to business and consumers, the ground
freight transport system also consumes energy and pro-
duces pollution. Trucks and locomotives burn 35 billion
gallons of diesel fuel each year, representing 20 percent
of the fuel used in the transportation sector. Carriers
hauling the nation's goods produce more than 350 million
metric tons of carbon dioxide (CCM, a greenhouse gas,
annually. They also emit nitrogen oxides (NOx) and partic-
ulate matter (PM), air pollutants that have serious health
and environmental impacts.
With factors such as just-in-time manufacturing, faster
delivery services, and demand for imported products
increasing both the volume and value of freight shipments
in the United States, freight-related energy consumption
and pollution are also increasing. Based on current trends,
ground freight transportation will consume more than 45
billion gallons of diesel fuel and produce over 450 million
metric tons of CC>2 by 2012—an increase of more than 25
percent compared to today's levels.
SmartWay Transport — 2005 Annual Report
-------
^>
Transport Partnership
U.S. ENVIRONMENTAL PROTECTION AGENCY
What Is Smart Way Transport?
To address economic and environmental challenges
surrounding growth in the freight industry, the U.S.
Environmental Protection Agency (EPA) has developed
the SmartWay Transport program to reduce greenhouse
gas emissions and air pollution from the ground freight
transport industry. This innovative, voluntary program
promotes efficiency in the freight sector. Through public-
private partnerships, SmartWay Transport is helping
freight companies save money while also reducing fuel
consumption and harmful environmental impacts. This
new approach to government/industry cooperation
demonstrates that environmental protection and
economic progress can go hand in hand.
The objective of SmartWay Transport is to increase the
fuel efficiency and environmental performance of the
ground freight industry through four core components:
The SmartWay Transport Partnership
• A strong government/industry partnership among
freight shippers, carriers, and logistics companies.
The National Transportation Idle-Free
Corridors Project
• A partnership with federal, state, and local
government; industry; and other organizations com-
mitted to eliminating all unnecessary long-duration
truck and locomotive idling at strategic points along
major transportation corridors.
SmartWay Innovative Financing Program
• An innovative financial strategy that helps compa-
nies acquire fuel-efficient, low-pollution technologies
through creative financial mechanisms such as low-
interest loans.
SmartWay Technologies Program
• A testing and verification program designed to
quantify emissions reductions and fuel savings and
allow companies to assess environmental perform-
ance of products.
SmartWay Transport — 2005 Annual Report
-------
Summary
Accomplishments, 2004-2005
Since the program's inception, SmartWay projects
that its program activities will eliminate more than
3.2 million tons of C02, reduce diesel fuel consumption
by nearly 300 million gallons, and save participating
partners $850 million in fuel costs annually. In 2004 and
2005, the SmartWay Transport Partnership has also
achieved the following:
SmartWay Transport Partnership
• Established corporate partnerships with 261 freight
shippers, shipper-carriers (private fleets), carriers
(truck and rail), and logistics companies in the United
States and Canada (plus relationships with 22 asso-
ciations and nonprofit organizations) to promote
awareness and adoption of SmartWay strategies.
• Signed a Memorandum of Understanding with
Canada to expand SmartWay Transport Partnership
resources and reach.
National Transportation Idle-Free
Corridor Project
• Initiated pilot projects in 52 sites and distributed
$6 million worth of grants to 14 states and nonprofit
organizations.
SmartWay Innovative Financing Program
• Started coordination with Arkansas and Minnesota
to allow use of technology loans for SmartWay
Upgrade Kits.
SmartWay Technologies Program
• Conducted preliminary testing, which demonstrated
measurable improvements in fuel efficiency and
reductions in NOx emissions due to single-wide tires
and trailer aerodynamics.
Environmental Measures of Achievement
Smartway Corporate
Partnerships
National Transportation
Idle-Free Corridors Project
TOTALS
Projected
C02
(tons/year)
3,120,000
160,000
3,280,000
Projected
NOx
(tons/year)
22,000
3,000
25,000
Projected
PM
(tons/year)
111
64
841
Diesel Fuel
Savings Anticipated
(gallons/year)
283,000,000
15,000,000
298,000,000
Fuel Savings
($/year)
$807,000,000
$43,000,000
$850,000,000
Note: Fuel savings are based on a November 10, 2005, price of $2.85/gallon and do not include capital or labor costs.
SmartWay Transport — 2005 Annual Report
-------
Program Activities
In just over a year, SmartWay Transport has made a
major impact on the ground freight transport indus-
try. Hundreds of companies, state and local agen-
cies, and other organizations are recognizing the
progressive creativity of this program. SmartWay
Transport is setting an outstanding example of the
power and potential of government and industry work-
ing together to achieve mutual goals—environmental
protection and economic prosperity.
The structure, goals, and achievements of the four core
components of SmartWay Transport are described in
more detail in the following sections.
The SmartWay Transport
Partnership: Business and
Government Working Together
On February 9, 2004, EPA unveiled the SmartWay
Transport Partnership with the full support of the truck-
ing industry, including 15 charter partners and the
American Trucking Associations. The partnership element
of the broader SmartWay Transport program emphasizes
voluntary participation by progressive companies and
organizations that recognize that they can improve their
business and the environment at the same time.
Companies that provide and/or hire freight delivery and
SmartWay Transport — 2005 Annual Report
-------
logistics services become SmartWay Transport Partners
by committing to improve the environmental perform-
ance of their freight delivery operations. Environmental
performance is calculated using specially designed mod
els that compute reductions in fuel consumption, and
CC>2, NOx, and/or PM emissions.
•••
SmartWay Transport Partnership
Charter Partners
These companies helped design and develop the
SmartWay Transport Partnership:
Canon USA
CSX Transportation
Coca-Cola Enterprises
FedEx Express
IH-E-B
The Home Depot
IKEA North America
Interface
Nike
Norm Thompson Outfitters
Roadway Express
Schneider National
Swift Transportation
UPS
Yellow Transportation
How the Partnership Works
There are currently four categories of SmartWay
Transport Partners:
• Shipper Partners are companies that manufac-
ture or sell merchandise and ship those goods to
distribution centers or retail facilities.
• Carrier Partners are companies that own and
operate freight trucks or locomotives that are hired
to transport materials or merchandise; these include
truck and rail companies as well as "shipper-carri-
ers"—companies that ship their merchandise using
their own private fleets.
• Logistics Partners are companies that are hired
to facilitate the packaging and shipping of goods.
How Companies Join the SmartWay
Transport Partnership
When companies, such as freight shippers, carriers, or
logistics handlers, join the SmartWay Transport
Partnership, they commit to:
• Assessing the environmental performance of their
current operations using EPA's Freight Logistics
Environmental and Energy Tracking (FLEET)
Performance Models.
• Identifying a goal to improve their environmental per-
formance.
• Developing a plan detailing how the goal will be achieved.
• Reporting their progress annually to EPA.
• Affiliate Partners are organizations and associa-
tions that help spread the word about SmartWay
and encourage participation.
SmartWay Transport Carriers commit to integrate innova-
tive cost-saving strategies into their fleet operations.
These strategies include a variety of technologies that,
when added to trucks or locomotives in the carrier's cur-
rent fleet, provide significant fuel economy gains, espe-
cially when combinations of these technologies are
installed. In addition, carriers can adopt non-technology
strategies such as driver training and improved logistics
to save even more fuel. These strategies result in sav-
ings on fuel costs and maintenance, can improve driver
retention, and can result in more business from shippers
that are concerned about environmental stewardship
and corporate social responsibility.
SmartWay Transport Shippers commit to ship at least 50
percent of their goods with SmartWay Transport carriers.
Shippers also can further improve their environmental
performance by adopting strategies such as no-idling
policies at their docks, evaluating and modifying busi-
ness practices at their distribution centers and ware-
houses, and using a combination of truck and
SmartWay Transport — 2005 Annual Report
-------
locomotive transport to ship their goods. Companies
that meet SmartWay Transport Partnership requirements
will benefit from a reduced environmental footprint and
reduced operating costs.
Like shippers, SmartWay Transport Logistics Partners do
not generally own or directly operate freight trucks.
Instead, they act as intermediaries for shippers and carri-
ers, managing the shippers' inbound freight, customs,
warehousing, order fulfillment, distribution, and out-
bound freight to the shippers' customers. Logistics
Partners' role in the SmartWay Transport Partnership is
to inspire the fleets that they manage to join the partner-
ship and adopt the fuel-saving strategies and technolo-
gies SmartWay Transport promotes. Logistics companies
determine the percentage of freight shipped by SmartWay
carriers and commit to increase that percentage by at
least 5 percent per year or increase the number of
SmartWay carriers contracted by 20 companies per year.
All partners commit to improving their environmental
performance, and partners that demonstrate superior
performance are recognized through press announce-
ments, events, and award ceremonies. They also earn
Recommended Technologies to Improve Fuel Efficiency
TECHNOLOGY
Idle Reduction
Device - Bunk
Heater
Idle Reduction
Device -Auxiliary
Power Unit
Idle Reduction
Strategy -
Truck Stop
Electrification
Single-Wide
Tires
Auto Tire
Inflation
Trailer
Aerodynamics
DESCRIPTION
Small, lightweight, diesel fuel-fired device mounted in the cab
that provides heat for cab comfort. Does not include any air
conditioning capabilities.
Small diesel-powered generator mounted outside the cab that
provides heat, air conditioning, and electrical power to run
appliances.
The process of shutting down the tractor and trailer (for trans-
port refrigerated units) and using an external source for power
and other amenities.
Traditional dual tires are replaced with one single-wide tire and
aluminum wheel. Can be applied to all tractor and trailer tire
positions except for the steer tires.
Underinflated tires can cause significant losses in fuel efficiency,
plus dangerous blow-outs. Auto tire inflation systems can ensure
the safety of drivers and lower fuel costs.
Fairings added to the front, underside, and rear of the trailer to
reduce drag.
TYPICAL COSTS
Approximately
$1,000
Approximately
$6,000 - $8,000
$20 for the
adapter kit plus
$1.25 for each
hour of use
Approximately
$3,000
Up to $900
Approximately
$2,400
APPROXIMATE
PAYBACK
5 months
21 to 28
months
8 months
29 months
45 months
15 months
1 The payback period is defined as the number of months it would take for the reduced fuel costs to compensate for the cost
of the equipment. Fuel costs are calculated based on the November 10, 2005, diesel price of $2.85 per gallon.
SmartWay Transport — 2005 Annual Report
-------
Beyond Technology
SmartWay Transport promotes many practical policy and
operations strategies to reduce fuel consumption:
• Improved Freight Logistics can optimize
trucking operation efficiency, saving fuel and increas-
ing profits for trucking companies.
• Warehouse Improvements can be made in
and around warehouses and will facilitate improved
efficiency and emission reductions.
• Driver Training can improve fuel economy consid-
erably by encouraging such simple techniques as
cruise control, coasting whenever possible, limiting use
of cab accessories, smooth and gradual acceleration,
progressive shifting, reducing maximum freeway
speeds, and limiting truck idling and stops.
• Intermodal Shipping combines the fuel efficien-
cy of rail with the logistical strengths of trucking.
Standardized containers are easily transferred from rail
to truck, and vice versa.
• Preferential Docking privileges for SmartWay
Transport Partners: deliveries by partner carriers may
be given prime docking times and locales.
• Driver Comfort Stations at docking facilities
prevent the need for drivers to idle their trucks to stay
warm or cool, as necessary.
• Anti-Idling Policies at loading docks, combined
with driver comfort stations, ensure emission reduc-
tions and meet driver needs.
• Improved Pickup/Delivery Scheduling can
reduce excess idling and increase the on-time efficien-
cy of freight operations.
• Operating FullTruckloads instead of partial
loads not only improves efficiency but also helps
reduce congestion at docking facilities.
the right to display the SmartWay Transport logo on a
variety of promotional materials.
By defining clear and achievable goals and committing
to ambitious strategies, participants in the SmartWay
Transport Partnership are actively addressing concerns
about greenhouse gas reductions and air quality while
saving money.
Successes and Accomplishments
Since the partnership's inception in February 2004,
some of the largest national and international freight-
transport companies, product manufacturers, and cor-
porations in the United States and Canada have joined
the SmartWay Transport Partnership, along with many
small and medium-sized truck fleets, rail companies,
and logistics providers.
To date, 262 companies have joined the partnership.
From partner commitments during the first two years,
the SmartWay Transport Partnership projects annual
reductions of 3.1 million tons of CC>2, 777 tons of PM,
and 22,096 tons of NOx. These figures add up to an
annual fuel savings of 283 million gallons of diesel
fuel—worth $807 million per year to the industry.2
To date, SmartWay has enrolled 22 Affiliates, which are
spreading the message of improving fuel efficiency in
freight transport to hundreds of additional companies.
2 Based on the November 10, 2005, diesel price of $2.85 per gallon.
SmartWay Transport — 2005 Annual Report
-------
SmartWay Transport Partners,
Percentage by Type
11
Logistics 26
4% Shippers
10%
210
Carriers
80%
Shipper-Carriers
3%
262 Total Partners
At the current rate of company progress in the SmartWay
Transport Partnership, EPA's partners are well on their
way to achieving Smartway's goals of saving 6.6 billion
gallons of diesel fuel per year and eliminating 66 million
metric tons of C02 and as much as 200,000 tons of
NOx each year.
In addition to these notable environmental achieve-
ments, the SmartWay Transport Partnership has recently
developed relationships with the rail industry and with
Canada to further strengthen its efforts to transform the
way the freight industry does business.
In May 2005, all seven major freight railroads joined the
SmartWay Transport Partnership. These Class 1 freight
railroads transport more than 90 percent of all domestic
rail freight. Each railroad has committed to evaluate the
environmental impacts of its operations and work jointly
with SmartWay to develop and implement a plan to
improve fuel efficiency and reduce emissions over the
next several years. Strategies include reducing idling,
improving aerodynamics, applying new fuel-saving tech-
nologies, and installing emissions control devices.
The efforts of these seven railroads—BNSF Railway
Company, Canadian National Railway Company,
Canadian Pacific Railway, CSX Transportation, Kansas
City Southern, Norfolk Southern Corporation, and Union
Pacific Railroad—will further help SmartWay Transport
increase energy efficiency while reducing greenhouse
gas emissions and air pollution. More recently, after learn-
ing of the benefits of the partnership, Pacific Harbor Line,
a Class 3 railroad, also joined.
Why Are Companies Joining the
SmartWay Transport Partnership?
Direct economic benefits:
• Reduced cost of fuel use. A one-to-three year payback
period on most technologies.
• Up to $3,000 in savings per truck per year after
payback period.
• Reduced maintenance costs.
• Driver retention through driver incentive and training
programs, and comfort features such as truck stop
electrification and auxiliary power units.
Additional benefits:
• An enhanced reputation with the public and stockhold-
ers for environmental stewardship.
• An additional way to meet corporate environmental
sustainability goals.
• A way to demonstrate corporate values that matter to
employees.
• Business-to-business advantage.
SmartWay Transport — 2005 Annual Report
-------
In September 2005, SmartWay developed a new part-
nership with Canada to share information and technical
tools focusing on idle reduction, deployment of clean
technologies, and driver training and awareness. The col-
laboration brings together the complementary strengths
of EPA's SmartWay Transport Partnership and Natural
Resources Canada's FleetSmart Program, with
SmartWay emphasizing the deployment of innovative
technologies and FleetSmart specializing in driver educa-
tion and training. With more than 13 million truck border
crossings between Canada and the United States each
year, this partnership could save up to 440 million
gallons of fuel and prevent emissions of an estimated
5 million tons of CC>2 per year.
National Transportation
Idle-Free Corridors Project:
Working to Dramatically
Reduce Long-Duration Idling
Long-duration truck and locomotive engine idling has
a significant impact on the environment and economy.
Each year, more than 1 billion gallons of diesel fuel are
consumed, and 11 million tons of CC>2, 200,000 tons of
NOx, and 5,000 tons of PM are emitted due to long-dura-
tion truck and locomotive idling. In addition, long-duration
idling leads to increased engine maintenance costs and
shortened engine life, impaired driver rest and health, and
elevated noise levels, particularly in urban areas.
On June 10, 2003, in Atlanta, Georgia, EPA launched the
National Transportation Idle-Free Corridors Project. The
objective of this project is to eliminate all unnecessary
long-duration truck and locomotive idling at strategic
points along major transportation corridors.
How the National Transportation Idle'Free
Corridors Project Works
The National Transportation Idle-Free Corridors Project
addresses unnecessary idling, through studying, evaluat-
ing, and deploying technologies and infrastructure modi-
fications at truck stops, travel centers, ports, loading
docks, terminals, and even along the side of the road.
The program has installed truck stop electrification (TSE)
at truck parking facilities across the country along major
interstate corridors, such as I-95, I-40, I-5, I-35, 1-10, and
I-85.TSE provides for the heating, cooling, and power
needs of truck drivers on layovers between transport
trips. While most truck drivers idle their engines to sup-
ply the power for these purposes, TSE lets drivers turn
off their engines and plug into a grid—reducing fuel
waste and associated emissions. The program also pro-
motes mobile idle reduction technologies, such as
direct-fired heaters and auxiliary power units (APUs),
which are installed directly on trucks to provide power
and allow engine shutdown.
Successes and Accomplishments
The National Transportation Idle-Free Corridors Project
currently has 31 active anti-idling projects and 27 new
sites under construction to evaluate the potential bene-
fits of idle reduction technologies that provide power,
heating, and cooling without using the engine.
To help states assess the environmental benefits of idle-
reduction strategies in state air quality planning, the
National Transportation Idle-Free Corridors Project pub-
lished formal air quality guidance in January 2004 for
including idle reduction projects in state implementation
plans and conformity determinations. And during the
summer of 2005, the program began working with state gov-
ernments and industry representatives to develop a model
state or local idling law for heavy-duty trucks and buses.
Over the last two years, the SmartWay team has award-
ed 14 grants to states and nonprofit organizations total-
ing approximately $6 million for the deployment of idle
reduction technologies around the country. Once fully
10
SmartWay Transport — 2005 Annual Report
-------
implemented, these technologies are expected to yield
yearly reductions of 52,233 tons of C02, 877 tons of
NOx, and 22 tons of PM, saving 5.1 million gallons of
diesel fuel each year. These reductions will help states
and counties achieve their air quality goals.
SmartWay Innovative
Financing Program: Making
Technology Accessible
ost freight fleets are small. In fact, 96 percent of
all trucking companies operate 20 or fewer trucks,
and 87 percent operate six trucks or fewer. These small
businesses are the most affected by rising fuel prices
and the least able to absorb the added cost and high
competition in the freight industry. For these companies,
the SmartWay Transport Partnership represents a tremen-
dous opportunity to take advantage of technologies, corpo-
rate policies, and driver training programs, which save fuel
and money and help protect environmental quality.
For many of these companies, however, the major barri-
er to adopting these fuel and cost-saving strategies is a
lack of investment capital.
To help make these technologies more accessible to these
trucking companies, SmartWay Transport is establishing
the SmartWay Innovative Financing Program and Upgrade
Kit program.
"SmartWay Upgrade Kits." These kits, which can include
idle reduction devices, single-wide tires, and trailer
aerodynamics, along with the PM control device, will
be offered to trucking companies through flexible low-
interest loans managed through state and national
loan programs.
SmartWay Upgrade Kits create a monetary incentive for
trucking companies to retrofit their trucks because the
monthly fuel savings achieved from the technology
upgrade exceed the monthly cost of the loan. In effect,
these innovative financial packages actually put money in
a truck owner's pocket.
How SmartWay Innovative Financing
and Upgrade Kits Work
To assist these companies, SmartWay
has developed an innovative program,
bundling highly fuel-efficient technologies
with emission control devices, such
as an oxidation catalyst or PM filter, into
SmartWay Transport — 2005 Annual Report
-------
SmartWay Upgrade Kits
How Do SmartWay Upgrade Kits Work?
To receive a loan for a SmartWay Upgrade Kit, companies must choose one or more of the following technologies:
• Idling-Control Technologies (APU or bunk heater): 6 - 10% fuel savings
• Wide-Base Tires with Aluminum Wheels: 4 - 10% fuel savings
• Improved Aerodynamics: 5 - 7% fuel savings
• Emission Reduction Device: 20 - 90% PM reductions
Fuel and emissions savings begin as soon as the technologies are installed. Most companies will begin to see
financial benefits right away. The following example demonstrates the profitability of this type of loan program.*
Example Kit
Device
Direct-Fired Heater
Super Single Tires
w/Aluminum Wheels
Trailer Aero Kit
PM Filter
Totals:
Cost/Unit (Retrofit)*
$1,000
$3,500
$2,400
$7,000
$13,900
PM Reduction
—
—
90%
90%
NOx Reduction
7%
5%
5%
—
17%
Fuel Economy
Change
7%
5%
5%
—
17%
'For a truck traveling 100,000 miles/year @ 6 mpg (16,667 gallons/year)
Fuel savings: 2,833 gallons @ $2.75/gallon
Payback period: $13,900/$7790
or a 3-year loan @ 4.8% APR:
Monthly fuel savings: $649
Monthly loan payment: ($415)
Monthly cash for driver: $234
Successes and Accomplishments
The SmartWay Innovative Financing Program is coordi-
nating with small business loan programs in Arkansas
and Minnesota to offer SmartWay Upgrade Kits at
below-market interest rates. These two programs are
just the beginning—SmartWay Innovative Financing is
actively working with six to 10 additional states to
expand these programs.
The SmartWay Innovative Financing Program is also part-
nering with private lending institutions and other private
investors to expand these innovative financing strategies
into the private sector.
12
SmartWay Transport — 2005 Annual Report
-------
Smart Way Technologies
Program: Evaluating Fuel
Efficiency and Environmental
Performance
Numerous technologies designed to improve fuel
efficiency are available today. However, beyond
manufacturer specifications, little is known about the
actual effects these technologies have or how a combi-
nation of these technologies applied to a single truck will
cumulatively impact fuel consumption.
To better understand the fuel economy impacts of these
technologies and evaluate the relationship between fuel
economy improvements and NOx reductions, SmartWay
Transport initiated an ambitious testing program called
the SmartWay Technologies Program.
How the SmartWay Technologies
Program Works
The goals of the SmartWay Technologies Program are to:
• Develop a testing methodology and drive cycles
needed to evaluate and verify fuel-saving products
for heavy-duty trucks used in highway application;
• Better quantify the fuel-saving impacts of innovative,
emerging technology options; and
• Evaluate the potential to reduce per-mile NOx emis-
sions by retrofitting heavy trucks with the new tech-
nology options to reduce engine load.
The SmartWay Technologies Program began preliminary
testing of Class 8 tractor-trailers in late November 2004,
at a test track operated by the Department of Defense
in Aberdeen, Maryland. The purpose of the Technologies
Program was to determine whether or not it was possi-
ble to simultaneously measure fuel use, engine perform-
ance, and NOx emissions in a simulation of real-world
operating conditions. Two identical 2004 model year
Mack Vision CX-13 Class 8 trucks, with identical Wabash-
Fruehauf 53-foot box trailers, were loaded to a typical 65
SmartWay Transport — 2005 Annual Report
percent payload. The test truck was modified to include
single-wide tires (lower rolling resistance and reduced
weight) and trailer aerodynamic devices to reduce wind
resistance and drag. SmartWay used a Portable
Emissions Measurement System (PEMS) to quantify
NOx emissions, and used the industry-standard SAE
1321 fuel economy test. A total of 72 tests under vary-
ing speeds and in-use conditions were conducted.
This testing ran through January 2005, and was an
important first step to developing a technology verifica-
tion program for SmartWay Transport. The results have
been evaluated, and will be presented at the SAE
Commercial Vehicle Engineering Congress in November,
2006, and published in a peer-reviewed technical paper.
EPA plans to conduct additional tests to gather more
data and further refine a test methodology that could be
used by the freight industry to assess the environmental
benefits of innovative technologies.
Successes and Accomplishments
The testing done to date shows that components
designed to reduce power load and improve fuel econo-
my may also reduce NOx emissions. These test results
should be of particular interest to the freight industry
because most fleets and operators will be using existing
heavy-duty trucks for many years or even decades to
come, and could benefit significantly from upgrade tech-
nologies. These simple, cost-effective components not
only have the potential to reduce fuel costs; they may
also provide a method of NOx control "retrofit" that
pays for itself. Through this testing program, the
SmartWay Technologies program has demonstrated a
correlation between fuel efficiency improvements and
NOx reductions. This study is truly groundbreaking—
although the relationship between fuel efficiency and
NOx emissions has been assumed, it has never been
tested or quantified.
-------
Looking Ahead
Based on the first year's achievements and the
growing interest in and support for this initiative,
SmartWay Transport is expected to continue to
grow and expand its reach. Along with continued work in
the four core areas of the program, SmartWay Transport
is expanding into several new areas.
The foundation of the program has been, and will contin-
ue to be, the SmartWay Transport Partnership. The
actions of SmartWay Transport Partners, affecting more
than 300,000 vehicles, have reduced emissions at levels
exceeding the first year's goals. However, the fact that
most of the industry is made up of small to medium-size
fleets, and these fleets tend to comprise older trucks,
leaves considerable room for fuel efficiency improve-
ments through technology upgrades. To continue to
make progress towards the 33 million to 66 million met-
ric ton C02 reduction per year goal, the SmartWay
Transport Partnership will further emphasize enrollment
of small and medium-size fleets to help them benefit
from the technology and non-technology fuel efficiency
strategies the partnership endorses.
Because of their smaller size and tighter profit margins,
these companies often find it difficult to get information
and capital for the best available transport efficiency
technologies and strategies. To support these companies
and to increase the penetration of fuel-efficient technolo-
14
SmartWay Transport — 2005 Annual Report
-------
SmartWay Transport Indicators at a Glance
Projected C02 reductions (tons/year)
Projected NOx reductions (tons/year)
Projected PM reductions (tons/year)
Projected fuel savings (gallons/year)
Projected dollar savings through reduced fuel use
Partner companies
Trucks/rail/vehicles affected by SmartWay Transport
2004-2005
3.28 million
25,000
841
298 million
$850 million
217
300,000
gies into the market, SmartWay Transport will expand
the SmartWay Innovative Financing Program and is
actively working with six to 10 additional states to
increase the reach of these technology bundles and
funding strategies.
SmartWay Transport is exploring ways of distinguishing
low-emission, high-efficiency "SmartWay Trucks" that
represent the highest level of environmental perform-
ance in freight truck technology. Plans are in the works
to define criteria for outstanding truck performance and
to label these trucks with special identifiers.
Another way that SmartWay Transport is expanding its
reach is through the development of a new SmartWay
partnership category—SmartWay Transport Truck Stops.
By introducing truck stops as partners, the partnership
will be recognizing truck stops for going above the law
by creating non-idle zones and deploying electrified park-
ing spaces. In fall of 2005, SmartWay Transport launched
a pilot study in New York.
The SmartWay Technologies program will continue to
test technologies to verify fuel savings and emissions
reductions and to develop procedures with the ultimate
goal of being able to designate specific fuel-efficiency
technologies as "SmartWay Technologies."
To share the concept of SmartWay Transport with more
segments of the freight transport industry, the program
will continue to work with Smart Transport Affiliates to
promote the benefits of the SmartWay Transport and
encourage more companies to join the partnership. Also
planned are recognition and award ceremonies to honor
high levels of partner achievement, and other promotion-
al activities such as press events and public relations
campaigns.
With all trends pointing to future increases in freight
transport, fuel prices, and an increased need for com-
munities to find ways to reduce pollution, it is clear that
SmartWay Transport's voluntary, innovative, and econom-
ical strategies and technologies will become essential
assets for the freight industry—and the environment.
SmartWay Transport — 2005 Annual Report
-------
Appendix 1
Partnership Requirements
for Freight Shippers, Carriers,
and Logistics Companies
To meet their goals, all partners must:
• Sign the SmartWay Transport Partnership Agreement.
Create and submit an Action Plan describing how
shippers or carriers will achieve their goal.
Report progress toward achieving the goal to EPA
annually.
Carriers must:
• Measure current environmental performance with the
SmartWay Transport FLEET (Fleet Logistics Energy and
Environmental Tracking) Performance Model for carriers.
Commit to improve performance within three years.
Shippers must:
Assess the current proportion of goods dispatched
with SmartWay Transport partner carriers using the
FLEET Performance Model for shippers.
Commit to ship at least 50 percent or more of goods
with SmartWay Transport partner carriers.
Assess and commit to improve facility transportation
emissions within three years.
Logistics companies must:
Determine the percentage of freight shipped by
SmartWay carriers.
Increase the percentage of freight shipped by
SmartWay carriers by at least 5 percent per year, or
increase the number of SmartWay carriers contracted
by 20 companies per year, and report this information
in EPAs FLEET Performance Model.
Provide a link to the SmartWay Transport Partnership
Web site on the company Web site.
Inform contracted carriers about the partnership and
the benefits of participating in the partnership through
various means, such as including SmartWay member-
ship in contracting criteria, mailing brochures and pam-
phlets, and giving presentations at meetings.
SmartWay Transport — 2005 Annual Report
\
-------
Appendix 2
SmartWay Transport
Partnership Partner List
Freight Carriers (Trucking)
AAA Cooper Transportation (AL)
A&A Express, Inc. (SD)
Ace-Way Freight Systems 2003 Inc. (Canada)
Accelerated Freight Group (AL)
ADM Trucking, Inc. (IL)
AJ SaragusaTrucking Company Inc. (TX)
Alabama Motor Express, Inc. (AL)
Alert Motor Freight, Inc. (NJ)
Alvan Motor Freight (Ml)
American Cartage, Inc. (Canada)
AMI Transport Service (MA)
ArfstenTransfer Inc. (MN)
ArndtTrucking (SD)
Arnold Transportation Services (FL)
Arrow Trucking Company (OK)
A & STrucking Service, Inc. (MD)
ASLTransportation (NJ)
Atkinson Freight Lines (PA)
Averitt Express (TN)
B.R. WilliamsTrucking, Inc. (AL)
BartelsTruck Line, Inc. (MN)
Baxter Healthcare (IL)
Bear Cartage & Intermodal, Inc. (IL)
Behnke Dedicated (Ml)
Bell City Transport Systems (Canada)
Bison Transport, Inc. (Canada)
Braun's Express, Inc. (MA)
Brakebush Transportation (Wl)
Bright Transportation, L.R (TX)
Burns Motor Freight, Inc. (WV)
California Cartage Express (CA)
Camionnage C.R, Inc. (Canada)
Can-Am West Carriers Inc. (Canada)
Cardinal Freight Carriers, Inc. (NC)
Celadon Trucking Services, Inc. (IN)
Central Freight Lines (TX)
Circle City Transport, Inc. (AL)
Commercial Transportation, Inc. (PA)
ContainerFreight EIT, LLC (CA)
Contract Freighters, Inc. (MO)
Coomes Inc. (KS)
C. R. England, Inc. (UT)
Currier Trucking Corp. (NH)
Cynthia Wilson (MO)
DamianTrucking, Inc. (IL)
Dart Transit Co. (MN)
Davis Cartage Co. (Ml)
Davis Express, Inc. (FL)
DeecoTransportation (Ml)
Deep South Freight (AL)
Denmark Express, Inc. (Wl)
DHL Express (FL)
Dick LavyTrucking, Inc. (OH)
Diversified Transfer and Storage (MT)
Dizco, Inc. (SD)
Double NNTransport Ltd. (Canada)
Douglass Distributing Carriers (TX)
Eagle Motor Freight, Inc. (AL)
ECM Transport, LLC (PA)
Estes Express Lines (VA)
Excargo Services (TX)
FastraxTransportation (Canada)
Farruggio's Express (PA)
FedEx Express Corp. (Charter Partner) (TN)
FedEx Freight System, Inc. (TN)
Floyd & BeasleyTransfer Company, Inc. (AL)
Floyd Wild Trucking, Inc. (MN)
FMI,West(CA)
Food Lion, LLC (NC)
Frerichs Freight Lines, Inc. (IL)
Frito-Lay, Inc. (TX)
Frock Bros. Trucking, Inc. (PA)
Gangloff Industries, Inc. (IN)
Garufi Logistics, LLC (OH)
GenmarTransportation, Inc. (MN)
George's Foods, LLC (VA)
G.I. Trucking Company (CA)
Gordon Trucking, Inc. (WA)
Grand Island Express (NE)
Great Plains Trucking, Inc. (KS)
Green Mountain Coffee Roasters (VT)
Greenbush Logistics, Inc. (AL)
GTL Transportation (IA)
GwaltneyTransportation Co., Inc. (VA)
Hall's Fast Motor Freight, Inc. (NJ)
HannafordTrucking Company (ME)
H.F Campbell & Son, Inc. (PA)
Hilltop Transportation, Inc. (OH)
Hirschbach Motor Lines, Inc. (NE)
Hodges Trucking Co. (GA)
Hub Group, Inc. (IL)
Hudson's Bay Company (Canada)
SmartWay Transport — 2005 Annual Report
17
-------
HunkesTransfer, Inc. (MN)
Hospira Fleet Services, LLC (IL)
H.O.Wolding, Inc. (Wl)
I FA Trucking (FL)
International Motor Freight (NJ)
Interstate Distributor Co. (WA)
JKTrucking (Canada)
J&L Wilson Transportation, Inc. (IL)
J&MTank Lines, Inc. (GA)
J.B. HuntTransport, Inc. (AR)
John ChristnerTrucking, Inc. (OK)
Jones Brothers Trucking, Inc. (MT)
Joseph John Belovich, Jr. (TX)
J&R SchugelTrucking, Inc. (MN)
KBDTransportation (Canada)
KennesawTransportation, Inc. (GA)
Knight Transportation, Inc. (AZ)
Lakeville Motor Express, Inc. (MN)
Langford, Inc. (MN)
Lasco BathwareTrucking Company, Inc. (Ml)
LavigneTruck Lines, Inc. (Canada)
LBAS Transportation (GA)
Lester Fellows Co. (NJ)
Linde Gas, LLC (OH)
Li-Way Transfer and Storage (GA)
Mark IVTransportation and Logistics (NJ)
Maverick Transportation, Inc. (AR)
May Trucking Company (OR)
McFarlandTruck Lines, Inc. (MN)
McKelvey Trucking Company (AZ)
MDE&ETrucking (TX)
Metropolitan Trucking, Inc. (NJ)
Michel Distribution Services, Inc. (MD)
Midwest Specialized Transportation, Inc. (MN)
MST Freight Services, Inc. (FL)
Muir's Cartage Limited (Canada)
Muir's International, Inc. (Canada)
National Distributors, Inc. (IN)
National Freight, Inc. (NJ)
New Century Transportation, Inc. (NJ)
New England Motor Freight (NJ)
New Penn Motor Express, Inc. (PA)
NickStrimbu, Inc. (OH)
Overnite Express, Inc. (MN)
Overnite Transportation Company (VA)
PAFTransportation, Inc. (ME)
PA.M. Transport, Inc. (AR)
Panther 11 Transportation, Inc. (OH)
Paramount Truck Lines Ltd. (Canada)
PaschallTruck Lines, Inc. (KY)
PCC Logistics (CA)
Perdue Transportation, Inc. (MD)
Pike Transportation, Inc. (AL)
Pitt Ohio Express, LLC (PA)
Plains Transportation (TX)
Pottle's Transportation, Inc. (ME)
Quad/Graphics, Inc. (Wl)
Quantum Logistics, LLC (AL)
Rapid Freightways (CA)
Refrigerated Food Express, Inc. (MA)
R & E Enterprises of Mankato, Inc. (MN)
Reliable Liquid Transport (CA)
Rhett ButlerTrucking, Inc. (AL)
Rinchem Company, Inc. (NM)
R<rucking, Inc. (AL)
Roaco Logistics Services (IL)
RoadLink USA East (PA)
Rock Creek Transportation, Inc. (MD)
RoehlTransport, Inc. (Wl)
Schneider National, Inc. (Charter Partner) (Wl)
Shaw Transport, Inc. (GA)
Signature Truck Lines, Inc. (Canada)
Smithfield Packing Transportation Co., Inc. (VA)
Southeastern Freight Lines, Inc. (SC)
Southern CalTransport, Inc. (AL)
Sprint Recycling (NY)
Stevens Transport (TX)
StylineTransportation, Inc. (IN)
Sub Zero Transportation, Inc. (NE)
SummittTrucking, LLC (IL)
Swift Transportation Co., Inc. (Charter Partner) (AZ)
TazTrucking (Canada)
T.D.T., Inc. (FL)
Terra Renewal Services (AR)
Texas Department of Transportation (TX)
Texas Star Express (TX)
Tig Transportation (NY)
TP Freight Lines, Inc. (OR)
Transport America (MN)
Transport Industries, L.P (TX)
Transways Motor Express Co., Inc. (NJ)
Transport Robert LTEE (Canada)
TrailwoodTransportation, Inc. (MN)
Triple STrucking (NE)
Two Cool Trucking Corp. (NC)
Two Flags Transportation (Canada)
Unisource Worldwide, Inc. (GA)
UPS (Charter Partner) (GA)
US Xpress Enterprises, Inc/Xpress Global
Systems, Inc (TN)
iA Motor Express, Inc. (AL)
USA Cartage, Inc. (MD)
USA Truck, Inc. (AR)
VaughanTransport, Inc. (GA)
Vitran Logistics (Canada)
VOA Corporation (FL)
VTL Group (Canada)
Walgreen Co. (IL)
18
SmartWay Transport — 2005 Annual Report
\
-------
Watkins Motor Lines, Inc. (FL)
Watkins & Shepard Trucking, Inc. (MT)
Wausau Carriers, Inc. (Wl)
Wellborn Transportation, Inc. (AL)
Werner Enterprises, Inc. (NE)
Western Aries Co., LLC (NY)
Whitehead Bros, Inc. (AL)
Whole Foods Market, Midwest Distribution (IN)
WSETransportation, LLC (AR)
YellowRoadway Corporation (Charter Partner) (OH)
Freight Carriers (Rail)
BNSF Railway Company (KS)
Canadian National Railway Company (Canada)
Canadian Pacific Railway (Canada)
CSXTransportation (FL)
Kansas City Railway Company (MO)
Norfolk Southern Corporation (VA)
Pacific Harbor Line, Inc. (CA)
Union Pacific Railroad (NE)
Freight Shippers
American Clean Energy Systems, Inc. (OH)
Canadian Hydrogen Energy Company Ltd. (Canada)
Canon U.S.A., Inc. (Charter Partner) (NY)
Clean Diesel Technologies, Inc. (CT)
Cozort International, LLC (MO)
Dell Products L.P (TX)
DENSO Manufacturing Michigan, Inc. (Ml)
IdleAire Technologies (TN)
IKEA North America Services, LLC
(Charter Partner) (PA)
Interface, Inc. (Charter Partner) (GA)
JC Penney (TX)
J &J Industries, Inc. (GA)
Labat-Anderson, Inc. (VA)
Lowe's (NC)
Lubri-Loy (MO)
Michelin North America, Inc. (SC)
Nike, Inc. (Charter Partner) (OR)
OFS (IN)
Owens Corning (OH)
Philips &Temro Industries (MN)
Pressure Systems International (TX)
Sharp Electronics Corporation (NJ)
Shurepower, LLC (NY)
The Home Depot, Inc. (Charter Partner) (GA)
Transportation Systems Solutions, LLC (NC)
Volvo Logistics North America (NC)
ipper-Carriers
Bridgestone-Firestone North American Tire, LLC (TN)
Coca-Cola Enterprises, Inc (Charter Partner) (GA)
Dennis K. Burke, Inc. (MA)
H-E-B (Charter Partner) (TX)
Schwan's Logistics, LLC (MN)
Tyson Foods, Inc. (AR)
Wal-Mart Stores, Inc. (AR)
Logistics Companies
AFN (Advantage Freight
Network) (IL)
APL Logistics (FL)
BNSF Logistics (AR)
Bullet Freight Systems,
Inc. (CA)
Celtic International (CA)
CH Robinson Worldwide,
Inc. (MN)
CRST Logistics, Inc. (NJ)
NYK Logistics (Amends) (FL)
Pacer Global Logistics (OH)
The Radiant Group, LLC (KY)
Total Logistic Control, LLC (Ml)
Affiliates
Alliance to Save Energy (DC)
Association of American Railroads (DC)
Businesses for the Bay (MD)
California Trucking Association (CA)
Clean Air Minnesota (Ml)
Iowa Motor Truck Association (IA)
Iowa State University Center for Transportation
Research and Education (IA)
Lane Regional Air Pollution Authority (OR)
Maine MotorTransport Association, Inc. (ME)
Maryland Motor Truck Association (MD)
Michigan Trucking Association (Ml)
Mid-West Truckers Association, Inc. (IL)
Minnesota Trucking Association (MTA) (MN)
Nebraska Trucking Association (NE)
New Jersey Motor Truck Association (NJ)
Ohio Trucking Association (OH)
Pennsylvania Motor Truck Association (PA)
Texas Commission on Environmental Quality (TX)
Texas Motor Transportation Association (TX)
Washington Trucking Associations, Inc. (WA)
Wisconsin Motor Carriers Association (Wl)
Wisconsin Partners for Clean Air (Wl)
SmartWay Transport — 2005 Annual Report
19
-------
What Smart Way Partners Are Saying
"Our participation in SmartWay is an
important piece of our global fleet strategy.
With our first sustainability report issued last fall, we set
aggressive goals for reducing emissions and increasing
fuel efficiency. SmartWay provides another way to push
ourselves to meet, and exceed, those goals."
— Mike Herr, Vice President of Environmental Affairs
United Parcel Service (UPS)
'H-E-B has always believed in putting
customers and community first.
Being a good neighbor means safeguarding the health
and welfare of our customers and partners. SmartWay
Transport offers opportunities to learn and lead the way
toward a clean transportation future."
— Charles Butt, Chairman and CEO
H-E-B
"I encourage everyone to join Swift in
becoming a member of SmartWay.
The very worst thing that'll happen to you is you'll save
fuel which means you'll make more money."
— Dave Berry, Vice President
Swift Transportation
"SmartWay...incorporates elements that we
feel are consistent with how we approach
our business and how we want our service
providers to approach things as well."
— Sabina Strautman, Environmental Transport
IKEA USA
"By joining the SmartWay Transport
Partnership, BisonTransport demonstrates
its strong environmental leadership and
corporate responsibility.
SmartWay Transport is a perfect fit for us as an
organization, and its goals tie directly into Bison
Transport's ongoing mission of becoming more
efficient and environmentally responsible."
— Don Streuber, President & CEO
BisonTransport
"Averitt Express understands that the future
of our world rests on the investments we
make to care for the resources of today.
Whether that manifests itself as following safe driving
and freight handling procedures or fulfilling our obligation
to protect the environment through avenues such as
EPAs Smartway program, Averitt Express is answering
the future's call."
— Scott Wo If, Vice President of Corporate Services
Averitt Express
SmartWay Transport — 2005 Annual Report
-------
"Part of the mission of Interface, Inc. is
to honor the places where we do business
by endeavoring to become the first name
in industrial ecology.
We are striving for zero emissions in our operations,
including the transportation of our raw materials and
finished products. We believe that cooperative initiatives,
such as SmartWay Transport, are an important step
toward measuring and reducing our environmental
ground transportation footprint."
—Michael Bertolucci, Senior Vice President
Interface, Inc.
"I have good news for you.
New Environmental Protection Agency (EPA) programs
are providing some of these requirements that are a high
priority in the training business to achieve performance
improvements within the transportation industry.
These improvements can mean substantial savings for
transportation companies. Who would have thought that
EPA might become one of our best allies?"
— Richard Ross, President
Training Alternatives, Inc.
'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.
"This program gives us the opportunity to
work with our carriers and logistics centers
to develop practices and technologies that
significantly benefit the environment."
—Mark Servidio, Vice President
Sharp Electronics
"This EPA SmartWay grant is another step
forward in our nation's efforts to conserve
fuel, achieve energy independence, and
reduce emissions that contribute to soot
and smog.
By taking actions, both big, and small, to reduce our
facilities' energy usage, we are responding to the
President's call to conserve and promoting the common
sense efforts we can all make as individuals to reduce
our energy demand."
—Stephen Johnson
EPA Administrator
"The freight industry's achievements
in SmartWay are consistent with
President Bush's national call to conserve
our country's energy resources and use
collaborative, innovative approaches to
resolve environmental problems."
— Bill Wehrum, Assistant Administrator
EPA Office of Air and Radiation
SmartWay Transport — 2005 Annual Report
21
-------
United States
Environmental Protection Agency
Office of Transportation and Air Quality (6401 A)
EPA420-R-06-010
June 2006
www.epa.gov/otaq
------- |