SmartWaXT SmartWay Innovative Financing
Transport Partnership Program for the Trucking Industry
U.S. ENVIRONMENTAL PROTECTION AGENCY
For virtually every trucking company, fuel is the
second largest expense behind labor. Numerous
technologies are currently available to help these
companies reduce fuel consumption; however,
one of the major barriers to their widespread
adoption is a lack of investment capital. The
SmartWay Transportฎ Partnership is establishing
several innovative financing programs to make
these technologies more accessible to interested
trucking companies through SmartWay Upgrade
Kits. Greater use of these technologies will not
only reduce fuel consumption and related costs
to trucking companies, but it will also result in
reductions in emissions of greenhouse gases
and other harmful air pollutants.
The SmartWay Technology Upgrade Kit
What is the SmartWay
Transport Partnership? Transport Partnership
Voluntary partnership between the U.S.
Environmental Protection Agency (EPA)
and the freight industry to improve energy
efficiency and reduce emissions from
freight transportation.
What does the Partnership do?
Encourages trucking companies and
railroads to adopt technologies that reduce
fuel consumption and emissions.
Works with freight shippers (such as IKEA,
Nike, Lowe's, The Home Depot) to ship
more of their freight using trucking
companies participating in the Partnership.
SmartWay Upgrade Kits are highly fuel-efficient
technologies bundled with emission control
devices. These SmartWay Upgrade Kits create a unique incentive for trucking companies to retrofit their
trucks because the monthly fuel savings generally exceed the monthly loan payments. Fleet owners save
money immediately. Fleet owners can compare the costs and estimate the fuel savings associated with
various efficiency technologies by using the SmartWay Technology Package Savings Calculator, visit
www.epa.gov/smartway/calculator/loancalc.htm. The following table shows how the individual
components of the SmartWay Upgrade Kits can benefit the company and the environment.
Technology
Idle Reduction Device - Bunk Heater
$1,500
Benefit
(Monthly Fuel
Savings)
$215
nthly Loan
. ayment
9% for 48
months
$37
Net Monthly
Savings
Idle Reduction Device -Auxiliary
Power Unit (APU)
$8,500
$330
$212
$118
Aluminum Wheels for Single Wide
Tires
$5,600
$153
$139
$14
Trailer Aerodynamics
$2,400
$191
$60
$131
Exhaust Aftertreatment Device -
Diesel Oxidation Catalyst (DOC)
$1,200
$0 (20-50% PM
emission reduction)
$30
Exhaust Aftertreatment Device -
Particulate Matter (PM) Filter
$6,000
$0 (90% PM emission
reduction)
$149
Equipment cost may vary depending on vendor, equipment specifications, quantities purchased, etc.
2 Monthly fuel savings are estimated for a long-haul truck using 16,667 gallons of diesel per year and idling 1,200
hours per year for bunk heaters, and 2,400 hours per year for APUs. Fuel cost is $2.75/gallon.
U.S. Environmental Protection Agency Office of Transportation & Air Quality SmartWay Transport* Partnership
NVFEL 2000 Traverwood Dr. Ann Arbor Ml 48105 (734) 214-4767 www.epa.gov/smartway
EPA420-F-06-016 February 2006
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SmartWay Upgrade Kits that include an idling reduction device, exhaust aftertreatment device, tractor
and/or trailer aerodynamics, and low rolling resistance duals or single wide tires may improve fuel
economy up to 20%, reduce oxides of nitrogen (NOx) up to 20%, and reduce particulate matter (PM) up
to 90%. Upgrade Kits purchased by trucking companies can be customized to the specific needs of the
company. The following table provides some possible SmartWay Upgrade Kit options.
Possible SmartWay Upgrade
Kit Options
Heater, Tires, Aero, DOC
APU, Tires, Aero, DOC
Heater, Tires, Aero, PM Filter
Cost
$10,700
$17,700
$16,000
Benefits
Savings)
$520
$636
$520
Monthly Loan
48 months
$266
$440
$386
Net Monthly
Savings
$254
$196
$134
A SmartWay partner using single wide tires.
For additional idle reduction technologies, visit www.epa.gov/otaq/smartway/idlingtechnologies.htm. For
a list of exhaust aftertreatment devices, visit www.epa.gov/otaq/retrofit/retroverifiedlist.htm.
Financing Options
SmartWay is exploring a number of options to help trucking
companies reduce their fuel consumption and costs and make
funds available for the purchase of SmartWay Upgrade Kits.
These options include state loan programs and national loan
programs.
State Loan Programs:
Some states have existing loan programs through their
small business or environmental offices that may be
able to finance SmartWay Upgrade Kits.
These loan programs are often offered with terms that are more attractive than currently available
commercial loans (e.g., low-interest rates, flexible repayment terms).
SmartWay has partnered with loan programs in Arkansas, Minnesota, and Pennsylvania to offer
SmartWay Upgrade Kits and is working to partner with additional states.
SmartWay is working with Cascade Sierra Solutions, a non-profit organization headquartered in
Coburg, Oregon, to implement a loan program for upgrading trucks that travel along the I-5
Corridor (from Washington to California).
National Loan Programs:
Commercial banks or other organizations could develop programs aimed at providing capital to
trucking companies for the purchase of fuel saving and emission reduction devices.
Programs could be nationally available and offer below-market rates or preferred terms for
trucking companies.
If You Would Like to Learn More
Please contact: Annie Kee, 202-343-9218, kee.annie@epa.gov.
Information about SmartWay can be found on the program website: www.epa.gov/smartway.
U.S. Environmental Protection Agency Office of Transportation & Air Quality SmartWay Transport* Partnership
NVFEL 2000 Traverwood Dr. Ann Arbor Ml 48105 (734) 214-4767 www.epa.gov/smartway
EPA420-F-06-016 February 2006
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