Transport Partnership
 U.b. ENVIRONMENTAL PROTECTION AGENCY
  A Glance at Clean Freight Strategies:
Gateway Cities  Diesel Fleet Scrappage
                          Program for Dray age
           The replacement of aging diesel trucks through the Gateway Cities Fleet Modernization Program
           has resulted in emissions reductions of 193 tons of nitrogen oxides and 43 tons of particulate matter
           annually in the South Coast Air Basin. The newer trucks also result in fuel savings for drivers.
     Introduction
     Fleet scrappage and modernization programs
     pay owners of older heavily polluting trucks to
     purchase newer, lower-emitting vehicles.
     Drayage fleets that serve U.S. ports and border
     facilities frequently use pre-1987 trucks that
     predate modern emissions control systems.
     These older trucks, which can remain in
     operation for decades, are a primary target of
     truck scrappage programs. The scrappage and
     replacement of pre-1987 diesel trucks with
     model year 1999 or newer trucks can result in
     up to 50 percent less NOX and 90 percent less
     PM being emitted. These replacement trucks
     can also reduce fuel consumption and
     greenhouse gas emissions associated with port
     facilities.

     Health Impacts
     According to the MATES II Study by the South
     Coast Air Quality Management District,  70
     percent of cancer-linked air toxics in California's
     South Coast Air Basin (SCAB) are the result of
     diesel emissions. The 27 cities that make up
     the Gateway Cities Council of Governments
     (GCCOG) are located in and around essential
     commerce centers, which rely heavily on diesel
     engines of all kinds to drive the area's economy.
     This subjects people living in and around the
     Gateway Cities to high levels of the harmful
     pollutants and air toxics found in diesel  exhaust.
     In 2002, the GCCOG initiated its Clean Air
     Program to address the challenges posed by
     diesel truck emissions at regional port facilities
     and throughout SCAB. Of particular concern is
     the large fleet of pre-1987 heavy diesel vehicles
     in use. It is estimated that within the SCAB
     there are approximately 10,000 model year
     1965 - 1987 heavy-duty trucks in operation.
     These vehicles severely impact air quality and
     human health, especially in areas of
     concentrated
            diesel engine operation such as intermodal
            freight facilities and port terminals.

            Program Description
            The Gateway Cities Diesel Fleet Modernization
            Program established a target of replacing 3,000
            existing heavy-duty trucks, or about one-third of
            the pre-1987 truck fleet in the greater Los
            Angeles area.  Under the program, these pre-
            1987 HDVs are retired and replaced with 1999
            and newer model years.

            Some of the replacement trucks are then
            retrofitted with diesel oxidation catalysts
            (DOCs), and other PM and NOX control devices
            to further reduce emissions. Under the Fleet
            Modernization Program, it is estimated that
            each replacement reduces on average 0.55
            tons per year of NOX and QA2 tons per year of
            PM. These estimates do not include any
            additional benefits resulting from retrofitting
            replacement vehicles with DOCs and NOX or
            PM control devices.

            Since the fleet modernization program's start in
            September 2002, more than 350 trucks have
            been replaced, at a cost of approximately $8
            million.  Of these, 230 awards were made under
            a special effort funded by the Port of Los
            Angeles (POLA) that focuses exclusively on
            truckers who frequently travel to and from POLA
            facilities.  Based on best available estimates,
            over 5 years of program involvement, the 350
            replaced vehicles can be expected to reduce
            emissions by approximately 193 tons per year
            of NOX and 42 tons per year of PM.

            The Gateway Cities program provides an
            average grant award of $25,000 toward the
            purchase of a  1999 or newer replacement
            vehicle. Awardees average about 45,000 miles
            per year of driving, of which 85 percent must  be
            within SCAB boundaries. Typically, awardees
         U.S. EPA Office of Transportation & Air Quality • EPA420-F-06-004 • (734) 214-4767 phone
                                         www.epa.gov/smartwav
                            smartway_transport@epa.gov

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Program
                                                Gateway Cities Fleet Modernization
finance the remaining cost of the replacement
truck (about $7,000-$10,000). At least some of
this investment can be recouped through fuel
savings that accrue through the use of a newer,
more reliable and fuel efficient truck.  For the
Fleet Modernization Program, on average, the
cost effectiveness for each five-year project is
less than $9,000 per ton of NOX reduced.
Program Funding
A total of $20,634,400 in funding has been
allocated to date for the Fleet Modernization
Program. By far the largest amount of funding
comes from the Port of Los Angeles. In June
2005, the Los Angeles  Board of Harbor
Commissioners voted to approve a
Memorandum of Understanding that added an
additional $4.7 million in funding to the fleet
modernization program, augmenting POLA's
original $10 million allocation. The specific
funding contributions of all four program
sponsors are shown below:

•  $14,740,000 from the Port of Los Angeles
   (exclusively dedicated to trucks that haul to
   and from the Port of Los Angeles)

.  $2,144,400 U.S. Environmental Protection
   Agency

•  $1,000,000 California Air Resources Board
   (CARB)

•  $2,750,000 in funds from the Mobile Source
   Air Pollution Reduction Review Committee
   (MSRC), which is administered through the
   South Coast Air Quality Management
   District

Off-Road  Program
In a second part of the  Gateway Cities Clean Air
Program, the Port of Long Beach (POLB)  has
taken a leadership role by facilitating efforts to
install new emissions reduction technology on
nonroad HDVs operated within POLB
boundaries. This Diesel Emissions Reduction
Program (DERP) introduces "clean diesel
technology" to port terminal operators by
retrofitting their HDVs with DOCs.  These DOCs
replace standard mufflers on heavy-duty
equipment and can provide cost-effective
emissions reductions. On nearly 200 nonroad
HDVs, POLB tenants are using a California Air
Resources Board (CARB) verified DOC and
emulsified diesel fuel (a diesel-water blend)
combination that provides a 50 percent
reduction in diesel particulate matter emissions
and a 20 percent reduction in NOX emissions.
On 445 nonroad HDVs, POLB tenants are using
a CARB-verified DOC combined with a
crankcase emissions filtration system that
reduces diesel particulate emissions by 25
percent (actual reductions are believed to be
higher).  Under POLB's full DERP effort, 638
nonroad HDVs have  been retrofitted with clean-
diesel technology resulting in annual reductions
of 14.7 tons of diesel particulate matter
emissions and 42.8 tons of NOX emissions.

The Port of Long Beach Diesel Reduction
Program has received $2,075,000 in funding, of
which $1,000,000 was a grant from CARB,
$1,000,000 was a match from the Port of Long
Beach, and $75,000 was  from the EPA (through
SCAQMD).

Conclusion
Nearly every major urban area and port in
America has air quality that is severely impacted
by a "legacy fleet" of  older heavy-duty diesel
vehicles. This program  can be a model for other
cities to follow. The cost effectiveness of the
program makes it an  attractive and voluntary
option for these urban areas and port facilities
to reduce emissions and improve air quality.

Contact Information
The Gateway  Cities Clean Air program provides
information on its Fleet Modernization Program
including program guidelines, emissions
calculation tools and  dealer information online
at:
www.qatewavcoq.orq/cleanairproqram/overview
/overview, html
For more information please contact the
Gateway Cities Clean Air Program at (800) 800-
4414.
    U.S. EPA Office of Transportation & Air Quality • EPA420-F-06-004 • (734) 214-4767 phone <
                                     www.epa.gov/smartwav
                 smartway_transport@epa.gov

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