The U*S* Freight Sustainability Summit:


                Meeting Summary
                           THE U.S. FREIGHT
                         SUSTAINABILTYSUMMI1
                      ENHANCING OUR NATION'S ENERGY SECURITY, GROWING THE ECONOMY
                              PROTECTING JOBS
                             NOVEMBER 17-18. 2011
&EPA
United States
Environmental Protection
Agency

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   The U*S* Freight Sustainability Summit:


                    Meeting Summary
                    Transportation and Climate Division
                   Office of Transportation and Air Quality
                   U.S. Environmental Protection Agency
United States
Environmental Protection
Agency
EPA-420-S-12-002
March 2012

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U.S. Freight Sustainability Summit
Meeting Summary
The U.S. Freight Sustainability Summit, held November 17-18, 2011 at the Ronald Reagan Building and
International Trade Center in Washington, DC, examined the critical role that goods movement plays in
growing our nation's economy, protecting the environment, and reducing energy consumption through
technology investment and business strategies that significantly improve efficiency. The conference also
addressed the value of "SmartWay,"  a public/private collaborative jointly developed by the trucking
industry, shipping community and U.S. Environmental Protection Agency (EPA) to assess and promote
Sustainability in the management of freight.

EPA, in collaboration with the American Trucking Associations (ATA), Environmental Defense Fund (EOF),
and Retail Industry  Leaders Association (RILA) hosted the summit.  Leaders from government, the
transportation and freight, retail and manufacturing industries, and environmental community, shared
their insight and experience in working towards Sustainability in the movement of goods.

Key goals of the Summit were to:

    •   Share best practices  and  highlight existing  strategies and technologies that are effectively
       moving freight more Sustainability (i.e., achieving greater efficiency, using less fuel and releasing
       fewer emissions);

    •   Discuss industry progress  and  the emergence of  new  strategies needed to stay on a path
       toward Sustainability;

    •   Review measurement tools and data that  provide industry with a foundation for understanding
       performance and the motivation to change and adopt new business practices that will result in
       increased productivity and greater Sustainability; and

    •   Create new opportunities for future collaboration through discussion and networking to identify
       common  goals for industry, government, and the  environmental  community, leading to  a
       stronger SmartWay partnership and greater Sustainability.

Nearly 200 freight industry and Sustainability leaders participated over the course of the one and one-
half day meeting. Featured speakers included Gina McCarthy, assistant administrator of EPA's air office;
Bill  Graves,  ATA's president and chief executive officer; Fred Krupp, EDF's president; David Matsuda,
administrator of the  U.S.  Department  of Transportation's Maritime Administration;  and Drew Sloan, a
fellow with the Truman National Security Project and former U.S. Army Captain, Iraq and  Afghanistan
veteran.

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Other key speakers participated in panels and represented a good cross-section of the freight industry,
including a small single  owner-operator business, mid-size firms  servicing  ports and targeted  U.S.
regions, railroads, trade associations, and large multinational corporations that operate in the U.S. and
abroad.  Leaders from EPA regional offices also led and participated in panels.

A key theme that emerged  during the summit is the tremendous growth that is projected to occur
within the freight sector in the coming decades.  Participants agreed that this growth creates an urgent
need for improvements in technology, operational strategies, and policies that will support the sector's
economic success while also contributing to sustainability.

Speakers and  participants outlined several  key components of a strategy  to meet this challenge,
including:

    •   Continue  building  partnerships  and opportunities for collaboration  among  government,
       industry, and environmental stakeholders;
    •   Leverage  the  relationship between  shippers and  carriers to drive further efficiency  and
       sustainability in trucking, rail and other modes of freight transportation;
    •   Increase intermodal  cooperation and optimization  (e.g., between truck, rail, and  marine) to
       achieve greater efficiency  across the supply chain and at key "nodes" such as  ports, rail yards,
       border crossings and major distribution centers;
    •   Look to operational strategies as well as emerging technologies to achieve greater efficiencies;
    •   The pursuit of  opportunities (information sharing, cooperation) that will facilitate incremental
       changes that can  save fuel and reduce costs for all organizations engaged in the freight sector,
       recognizing that small incremental changes  at the  organizational level add up to significant,
       industry-wide improvements and benefits;
    •   Maintain and develop programs aimed at encouraging sustainability  efforts among small and
       mid-size trucking firms; and
    •   Recognize and  communicate the global security benefits of  increasing freight  efficiency and
       reducing dependence on petroleum-based fuels.

There was broad recognition that SmartWay plays a key role in encouraging positive, sustainable change
in the industry.  Specifically, the program has:

    •   Set the standard for how the freight sector measures, benchmarks,  and reports emissions
       through a consistent methodology that "levels the playing field" among companies and modes;
    •   Made freight supply chain sustainability part of the business  case and incentive structure for
       industry;
    •   Promoted innovation by encouraging and verifying emerging technologies;
    •   Created partnerships and opportunities for collaboration across the industry; and
    •   Served as an example of an effective,  voluntary, and market-based government  program.

Participants recognized that there  are still huge potential supply chain  savings that can be derived from
more fleets, more shippers,  more modes and enhanced operational strategies. To help achieve these
savings, there was consensus that EPA, the freight industry, and environmental community continue to:

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    •   Build SmartWay across modes and continue to extend it to companies of all sizes throughout
       the supply chain;
    •   Develop and refine SmartWay tools and methods, including tools for multiple modes;
    •   Drive technological and operational innovation with "industry-standard" verification  methods
       and measurement tools;
    •   Increase shipper participation with targeted outreach;
    •   Create more visibility for SmartWay and its partners to strengthen stakeholder support; and
    •   Support more events like the U.S.  Freight Sustainability Summit to enhance collaboration and
       build support and visibility for freight sector sustainability.

The remainder of this summary provides an overview of key themes presented and discussed in each of
the sessions. Attachment 1 provides the meeting agenda. Attachment 2 provides a list of organizations
that were represented at the meeting.

Presentations are available at: http://www.epa.gov/smartway/partner-resources/summit.htm.

Thursday, November  17, 2011

Welcome. Opening Remarks, and Keynote

Margo T. Oge, Director, Office of Transportation and Air Quality, U.S. Environmental  Protection Agency
provided opening remarks.  She noted that the U.S. EPA and its SmartWay partners in the freight sector
have a common goal of enhancing the sustainability of our transportation sector.  Ms. Oge described the
vital importance of the freight sector for  the economy, and also how the transportation industry is
responsible for roughly one-third  of U.S.  greenhouse  gas emissions. SmartWay's  public-private
partnership, she said, has allowed participating  businesses to save $6.1 billion in fuel and operating
costs and has given EPA an extremely valuable understanding of opportunities for sustainability in the
freight industry.

Ms. Oge's opening remarks were followed by a keynote from Gina McCarthy, Assistant Administrator for
the Office of Air and Radiation at the U.S. Environmental Protection Agency.

Key themes covered by Gina McCarthy included:

    •   SmartWay is a critical component of EPA's transportation sector strategy because it focuses on
       fleets  that are already  on the road and leverages  existing technologies and operational
       strategies that can reduce emissions.
    •   The collaborative approach used in  SmartWay has supported EPA's policy direction by serving as
       a technical test bed in support of the agency's GHG emission standards for heavy-duty trucks.
    •   Growth in the transportation sector does not mean there has to be growth in pollution.  The
       sector can innovate and grow, and simultaneously drive down pollution.
    •   In addition to complementing EPA's core mission to protect public health and the environment,
       SmartWay has taught the agency how to collaborate with partners to grow the economy
    •   EPA asks partners to be  a  positive voice for reducing greenhouse gas emissions, making the
       country less dependent on foreign oil, and helping to make it more secure.

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       SmartWay and its partners need to make a concerted effort to continue to drive innovation and
       increase demand for advanced technologies and improved operational practices.
       Key EPA priorities moving forward include accelerating investment in new fleets, reducing port-
       related emissions (especially in low-income  communities), and bringing more manufacturers
       that ship goods into the SmartWay partnership.
Panel Discussion:

Supporting the Economy,  Environmental Sustainability, Jobs, and Energy
Independence: Part I

This  session focused on  how leading companies are  creating value, achieving  environmental  and
economic sustainability, and contributing to energy security and job growth by improving productivity,
lowering costs, and reducing emissions.  The session was moderated by James Jack, Executive Director,
Coalition for Responsible Transportation. Presentations were given by:
   •   Randy Mullett, Vice President Government Relations and Public Affairs, Con-way Inc.
   •   Jim Butts, Senior Vice President Transportation, CH  Robinson
   •   Lindsay Chason, Senior Manager, Environmental Innovations, The Home Depot

Key themes presented and discussed during the session were:
   •   Economic growth cannot be decoupled from the growth of transport; the population is growing
       and people love "stuff." If we  constrain transportation for any reason, we will hurt the economy.
       Freight is expected to increase by 25% over the next decade and the challenge for all of us is to
       grow sustainably.
   •   Trucking will continue to be a key component of the freight sector. 80% of communities in the
       U.S. are only served by trucks. One in thirteen people in the U.S. private sector  hold a truck-
       related job.
   •   Strategies that companies are using to  be more sustainable and improve the bottom line include
       reducing vehicle speeds,  re-engineering networks to reduce miles traveled, advanced planning
       for better coordination  among  modes, load  optimization  and consolidation, reduced idling,
       driver education, and new technologies (e.g., undertray systems to increase aerodynamics).
   •   SmartWay's emphasis on information sharing and transparency has attracted  many freight
       sector businesses; it has also spurred  information sharing within the industry—Con-Way, for
       example is willing to share anything any time on safety, security, and sustainability.
   •   SmartWay has been the first foray into the sustainability world for many companies.
   •   Measurement is a key strength of SmartWay; key future needs are carbon footprint calculators
       for international supply chains and tools for measuring alternative fuels.
   •   Going forward,  the freight sector needs to continue to bring new partners into  the effort to
       increase sustainability, including shippers, environmental groups, and others.
   •   Natural gas is a compelling fuel for the  freight sector, but there needs to be a concerted effort to
       build infrastructure for natural gas fueling with a focus on key corridors.
   •   Truck size  and weight reform—such as  adding a sixth axle and increasing truck weights to 97,000
       pounds—could potentially save billions of gallons of fuel per year.

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    •   Leveraging relationships among shippers and suppliers can  increase efficiency by combining
       loads and reducing empty truck trips.
    •   Ports are an important focus of sustainability efforts because they concentrate freight activity
       and link modes.

Remarks:

Finding the  Ways that Work:  Synergies for Advancing Sustainable Freight
Transport

Fred Krupp  of the Environmental Defense Fund spoke to participants  about the successes of Americans
working together to boost the economy and  serve the environment.  He provided an overview of the
Environmental  Defense Fund's work to reduce greenhouse gas emissions from the transportation sector
and beyond. Key themes included:
    •   Recent accomplishments to reduce greenhouse gas emissions  include the new 2017 to 2025 fuel
       economy rules as well as  activities in other sectors, such as emissions trading for the power
       sector in the Northeast.
    •   Work by the Environmental  Defense Fund's  "Climate Corps" has identified $650  million  in
       operational savings at 78 companies and  institutions that also reduce hundreds of thousands  of
       tons of greenhouse gases.
    •   The country should be in a race to get  these technologies deployed on a grand scale.
    •   There is still much untapped potential for sustainability innovation in  the transportation sector,
       in areas such as rail, marine vessels and off-road vehicles.

Interview and Discussion:

Sustainable Goods Movement

This session focused on how supply chains balance environmental stewardship and growth. The session
was moderated by Richard Kassel, Senior Attorney and Director, Natural  Resources Defense Council.
Discussants were:
    •   Victor LaRosa, President, Total Transportation Services, Inc.
    •   Adam Siegel, Vice President of Sustainability and Retail Operations,  Retail Industry  Leaders
       Association
    •   William Nurthen, General Manager, Port Authority of NY and NJ, Port Commerce Department,
       Environment and WaterWay Development Program
    •   Ken Dorsey, Association of American Railroads

Discussants  represented port drayage  trucking (i.e., "the last mile" for  many  goods), retail, port
operations and management, and rail. Key themes discussed during the session were:
    •   Environmental sustainability  and economic growth go hand in hand; any time we use extra fuel,
       we're wasting emissions and money.  Although the recession has created some challenges, it
       has also created opportunities.  For example, rail companies have retired many of their older,
       less efficient, and more polluting engines.
    •   Regulations  are  necessary  but  not  sufficient  in  this sector;  it  also takes  collaboration,
       partnerships, innovation, and better information flows among links in the global supply chain.

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    •   Increased collaboration and decision-making among modes is a critical strategy.  Strategies for
       increasing collaboration include building multimodal centers,  improving tools that support
       choices and  coordination  among modes,  and  developing  measurement tools that allow
       transparency and consistent comparison across modes.
    •   Increasingly businesses in the freight sector are taking greenhouse gas footprints into account as
       they make decisions about how to move goods from suppliers to final customers.  They are
       recognizing that these efforts  also save money:  the retailer Best Buy has a  philosophy that
       "carbon is cost." In the rail sector, shareholders are increasingly asking companies about their
       carbon footprints and carbon reduction strategies.
    •   Local issues  can impact  decisions throughout the global supply chain.   For example, ports are
       generally in densely populated areas. Air is impacted around every port in the U.S., and drayage
       trucks  are responsible for  a great deal  of that pollution. Working with local stakeholders and
       communities on air quality issues at ports is critical to improved public  health.  Some strategies
       are regulatory, but benefits can also be achieved through strong and transparent public/private
       partnerships.
    •   The sector  needs a better way to organize information and identify pollution  "hotspots" in
       supply chains.
    •   Maritime transport is  a  critical area for future focus because ocean-going ships  are the single
       largest emitters in  global supply chains.  There needs to be more coordination between ports
       and ships (e.g., on  infrastructure and port emissions management) and between shippers and
       ocean carriers.
    •   To help retailers understand and reduce the impacts of goods movement through logistics and
       mode selection, it is helpful to  have protocols for sharing information as goods are transferred
       along the supply chain to end-users.

Luncheon Keynote

Over lunch, Maritime Administrator David Matsuda (U.S. Department of Transportation) described the
key role that the Maritime  Administration plays in making sure the U.S. maritime industry is capable of
meeting U.S. economic and security needs. He  also described future needs and trends for inter-modal
collaboration. Key themes included:
    •   In the near term, economic uncertainty creates challenges for all transportation  sectors.  Over
       the long term, the  key challenge—and opportunity—will be efficiently and sustainably moving
       goods for a U.S. population expected to grow by 100 million people over the next 40 years.
    •   As demand for goods  movement grows, every mode of  transportation will need to be utilized
       and will increasingly  need to be coordinated to take advantage of each  mode's  relative
       strengths and efficiencies.
    •   There is much room for the water transport sector to grow because U.S. waterways are one of
       the most underutilized transportation routes. The new initiative  "America's Marine Highways"
       has designated  18 marine highway corridors around the country as key opportunities to reduce
       land congestion and move goods more efficiently. At the same time, the sector is pursuing
       initiatives to test and utilize new types of engines and alternative fuels, and U.S.  ports are
       pursuing many strategies for reducing emissions.
    •   Much coordination among modes is already happening.  For example, trucking and logistics
       companies often use marine routes in New England, across Long-Island  Sound, and from Florida
       to Texas. To support this kind of coordination, the Department of Transportation has developed

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       the Geospatial  Intermodal Freight Transport tool to determine optimal multi-modal freight
       pathways.
    •   Moving forward, all modes will need each other to succeed, and the Maritime Administration
       sees SmartWay as a model for bringing sustainability to all modes of transportation.

Panel Discussion:

Building an Efficient, Competitive and Environmentally Sustainable Freight
Supply Chain in North America

This session focused on perspectives for accelerating the adoption of advanced technologies and energy
savings for the multimodal,  North  American supply chain.   The session was moderated  by Dennis
McLerran, EPA Regional Administrator, Region 10. Presentations were given by:
    •   Allen Schaeffer,  Executive Director, Diesel Technology Forum
    •   Dave Berry, Vice President, Swift Transportation
    •   Susan Alt, Vice President, Strategy and Industry Relations, Volvo Trucks

Key themes presented and discussed during the session were:
    •   Ports  and the freight that passes through ports are essential to our way of life. In  2010, U.S.
       imports and exports totaled  over $4 trillion.  At the same time, people who live near ports are
       traditionally low-income communities, and are more susceptible to asthma and other pollution-
       related health effects. At-berth clean fuel incentives, drayage truck scrappage programs, and
       other strategies  are all being used to reduce port emissions.
    •   A key challenge  is to move more freight  with the same amount of infrastructure, and less fuel.
       This  requires a  combination  of strategies  that  encompass fuels, vehicle  technology, and
       operations.
    •   Diesel fuel is a key leverage  point in the freight sector.  83% of freight value that is shipped is
       shipped using diesel.  Given  the size of the sector, many small changes in fuel quality and use
       can have big results.
    •   The average age of trucks on the road is increasing, and SmartWay is a key program for reaching
       these older "legacy" vehicles. A key opportunity is  modernizing and upgrading trucks owned by
       individual owner-operators (which tend to be the oldest trucks).
    •   The best  way to reduce emissions may come from optimizing how we use trucks, not the trucks
       themselves.  Better information flows about  optimal routes and mode choices is an important
       foundation  for operational improvements.  Driver education and accountability (e.g., through
       "scorecards") are also important operational strategies.
    •   Freight consolidation  reduces shipments  and puts fewer trucks on the road, saving money and
       reducing  emissions. Some competitors are working together to combine loads; for example, the
       "Confection Connection"  allows candy companies to reduce supply chain costs by sharing loads.
    •   For lighter loads (e.g., pillows and potato chips), adding extra trailers can move more goods and
       still keep vehicles under current weight limits.
    •   SmartWay is an effective partner in these efforts because it is based on sound science and
       common  sense.  SmartWay tools have become the definitive carbon measurement tools in the
       sector.

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Remarks:

Trucking Today: Traveling the Clean-Green Road

In his  remarks,  Governor Bill Graves,  of the American  Trucking Associations, drew  on personal
experience with the trucking industry to describe its evolution over the last 70 years from the "old days
of trucking" when care for the environment was non-existent.  Key themes included:
    •   Forward-thinking actions of traveling down the "clean green road/' will not only reduce carbon
       emissions, but increase profitability and improve the public image of the trucking industry.
    •   Important areas of change include the introduction of sophisticated  technology and route
       optimization.
    •   Increasingly, sustainability has become a moral imperative for the industry and a cornerstone of
       its "social license to operate."
    •   The  American Trucking Associations  has  a six  point sustainability plan,  including being  a
       SmartWay partner.
    •   SmartWay is the right voluntary approach for an industry not traditionally eager for government
       programs.  It has created a  model of cooperation that translates into  other aspects of EPA
       programs, including an open and inclusive regulatory development process.

Interview and Discussion:

Supporting the Economy, Jobs, and Energy Independence: Part II

This session focused on  how small firms can innovate and compete in a rapidly changing global market.
The session was moderated by Coralie Cooper,  U.S. Department of  Transportation, Volpe Center.
Discussants were:
    •   Paul Fouts, Independent owner/operator, Paul Fouts Trucking
    •   Andy Garcia, Chairman of the  Board, GSC Logistics
    •   Paul Esposito, Chief Executive Officer, Railex

Discussants represented third-party logistics companies,  independent owner operators, and rail.  Key
themes discussed during the session were:
    •   Smaller  carriers are a significant component of the trucking  industry. There are more than
       500,000 trucking companies in the U.S. and a vast majority of them have fewer than 20 trucks
    •   Owner-operators have a vested in "going green" because they directly pay fuel costs. For bigger
       companies, company drivers  may need additional incentives to improve efficiency and lower
       fuel consumption, because they do not directly pay for fuel.
    •   Operational and maintenance strategies are relatively low cost and key for smaller companies.
       Strategies include researching the  shortest routes and  lowest cost fuel locations, reducing
       driving speeds to save fuel, checking tire pressure and alignment, and using fans and heaters for
       climate control rather than idling. All of these small efforts add up.
    •   Increasingly, logistics companies need drivers that have technology skills for activities such as
       providing information for tracking systems; this means that there is value in maintaining a stable
       and skilled trucking fleet.

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    •   Challenges for small  companies include staff training, volatile fuel prices,  maintenance costs,
       and equipment upgrades.
    •   Port strategies are driving upgrades for many owner-operators and smaller companies.  For
       example, by Jan 1, 2014, no truck that is older than 2007 will be allowed into any of the ports in
       California.  Part of these strategies is to create incentives and financial assistance for upgrades.
    •   While some companies see increasing load weight as a strategy for improving efficiencies, it can
       also result in higher fuel and maintenance costs for independent drivers. Also, small companies
       often get paid by the  load rather than by its weight.
    •   A key challenge for both rail and trucks  is reducing idling during loading and  unloading times
       (e.g., at retail facilities, marine terminals, etc.).  Hours of service rules have improved loading
       efficiency somewhat.  At marine terminals, communications strategies have helped save idling
       time by alerting trucks and logistics companies about schedules and congestion.
    •   Going forward, key strategies include creating a more effective network of "long-haul  by rail,
       short-haul by truck" and creating intermodal facilities.

Remarks:

Addressing the Nation's Energy Security Challenges

In his remarks, Drew Sloan, former U.S. Army Captain and veteran of Iraq and Afghanistan wars, spoke
about the importance of reducing U.S. dependency on foreign oil from a national security standpoint,
and the effect that our oil dependency has on deployed U.S. troops throughout the world.  Key themes
included:
    •   Oil dependency limits the choices that Americans have—both for the fuels that we buy and for
       the international agreements and relations we are compelled to keep.
    •   Oil  dependency  has  a personal impact on  everyone through rising fuel  prices, a national
       economic impact through defense spending and broader economic dependency on oil, and a
       global  impact  as we  provide revenue to countries whose values and interests  are often in
       opposition to our own.
    •   The war  on terror is the first  war  in which we are supporting both sides—on the one  hand
       paying to fight the war and on the other hand buying oil from countries (and sustaining oil prices
       generally) that provide funding  for terrorist regimes.
    •   Our ability to reduce oil dependency relies critically on technology and operational innovation
       and collaboration to advance new sustainable strategies.

Closing Remarks for the Day

Jim Blubaugh,  Deputy Division Director, Office of Transportation and Air Quality,  U.S. Environmental
Protection  Agency, closed the  day  by observing that there  is no  "silver  bullet" for increasing
sustainability in the freight sector but that speakers throughout the day identified many individual fuel,
vehicle technology, and operational strategies that collectively will have a big impact.  Collaboration is
vital, he said,  and SmartWay has created  an  important foundation for collaboration going forward.
Working together,  EPA and the industry can leverage these relationships to save energy, reduce cost,
improve local air quality,  and  reduce the carbon footprint of the global supply chain.

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Friday,  November 18, 2011
Welcome and Opening Remarks

In his opening remarks,  Glen  Kedzie, Vice  President and Environmental  Counsel for the American
Trucking Associations, described the rapid growth and continued successes of SmartWay. He noted the
impressive growth of the SmartWay partnership, which now includes more than 3,000 partners as a
result of nearly doubling growth since the program's inception. He also described the bi-partisan nature
of program support and the need to continue to educate policymakers about the importance of the
program.

Panel Discussion:

Achieving Sustainability through SmartWay Verified Technologies and
Operational Practices

This  session focused  on the future  of SmartWay tractors and trailers, and how SmartWay verified
equipment,  information technology and   operational  practices  are  contributing  to  sustainable
transportation. The session was moderated  by Sam Waltzer, Transportation and  Climate Division, U.S.
Environmental Protection Agency. Presentations were given by:
   •  John Emerson, Director of Standards and Government Relations, Michelin
   •  Elizabeth Fretheim, Director, Business Strategy and Sustainability, Walmart
   •  Dan Kieffer, Director, Emissions Compliance, PACCAR
   •  Jeff Sims, Truck Trailer Manufacturer Association

Key themes presented and discussed during the session were:
   •  SmartWay has focused  on technologies that make large, long-haul, combination trucks  more
       fuel efficient through strategies such as increased aerodynamics, lower rolling resistance, and
       idle reduction.
   •  EPA's standardized  technology verification protocols used  in  SmartWay, support objective,
       consistent,  and transparent  review of emerging technologies, and they  help  companies
       overcome uncertainties about technology performance, payback, and residual value  to the used
       truck market. Verification also helps companies understand how a technology might affect  other
       aspects of an operation, such as driver acceptance and maintenance.
   •  Several technologies and operational  practices can improve fuel efficiency, including:
           o  Advanced low rolling  resistance tires, which can improve fuel economy regardless of the
              age of the truck. New wide  base single tire technology can turn  an 18-wheeler into a
              10-wheeler  by  replacing double  tires with  a  single  tire, generating a  significant
              improvement in fuel economy and making it easier to check and maintain tire pressure.
           o  Improved aerodynamics through front fairings ("gap reducer"), rear fairings ("boat  tail"),
              and side fairings ("side skirt").
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           o  Tuning engines to operate efficiently for specific types of routes.  For example, trucks
              that  are tuned  to operate on flat  routes are not as efficient for routes with high
              elevation gain and vice versa.
           o  Optimized route selection, which can identify not just the shortest route, but also the
              one with the least congestion or stop-and-go traffic.
           o  Driver training and accountability. For example, one company gave drivers information
              on metrics that helped them see how operational changes reduced fuel use.
    •   Challenges for companies trying to reduce emissions include size and weight restrictions, traffic
       congestion (an estimated 3.9 billion gallons of fuel are wasted every year from vehicles sitting in
       traffic), and uncertainties about the benefits of alternative fuels.
    •   Industry can continue to drive innovation forward by sharing best practices and lessons learned.
       Successful companies are committed to sharing what they are learning about technologies and
       operational practices that reduce fuel use.

Remarks:

How are EPA's Partnership and Regulatory Programs Addressing our Nation's
Economic, Energy and Environmental Needs?

Karl Simon, Division  Director, Office of  Transportation and Air Quality, U.S. Environmental Protection
Agency, described key EPA and partner accomplishments in the freight sector. Key themes included:
    •   EPA and the freight sector have achieved significant human health benefits through cleaner and
       more efficient vehicles that reduce criteria pollutants—in addition to  reducing carbon emissions.
    •   EPA, industry, SmartWay partners and  other  stakeholders all have  the opportunity  and
       obligation to overcome challenges of increasing sustainability as the sector grows.
    •   SmartWay has created  important  levels  of trust and  transparency between the  public  and
       private sectors, which provides a strong foundation for moving forward.

Panel Discussion:

Supply Chain Performance Benchmarking and Carbon Accounting

This session focused  on  how SmartWay's second-generation tools  meet the need for performance
benchmarking and carbon accounting in the  supply chain.  The session was moderated  by  Beverly
Banister, Director of the Air, Pesticides and Toxics Management Division, U.S. Environmental Protection
Agency Region 4. Presentations  were given by:
    •   Tony Craig, Massachusetts Institute of Technology Center for Transportation & Logistics
    •   Matt Payne, U.S. Environmental Protection Agency
    •   Gail Barnes, Marketing Director,  Innovation Center for U.S. Dairy

Key themes presented and discussed during the session were:
    •   Calculating carbon footprints of goods (including the transportation component) can be highly
       complex, with results varying significantly based on issues of scope and methodology.
    •   There is  a key role for third parties to provide standardized  methodologies  and tools  for
       consistent measurement and benchmarking across an industry and throughout the supply chain.
       Third parties also play a critical role in verifying claims about environmental performance.
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    •   SmartWay provides the freight industry with standardized methods, tools, and data about fuel
       use and emissions so that companies can make informed emissions optimization choices and
       conduct internal and external benchmarking.  SmartWay now has the best freight database
       available globally.
    •   Partners  have  integrated  SmartWay into their  corporate operations  for  both  internal
       optimization and to  inform business-to-business interactions.  This has helped  companies
       reduce carbon dioxide, NOX, and Particulate Matter (PM) emissions.  It has saved  millions of
       gallons of fuel,  improved  supply chain  efficiencies,  and helped  companies become  more
       profitable.
    •   Industry can leverage SmartWay tools and  methods to customize sector-specific  tools.  For
       example, the dairy industry uses advanced data collection technology (i.e., on-board recorders)
       and customized tools that allow dairy shippers and carriers to compare their performance to
       industry-specific benchmarks.

Closing Remarks

Cheryl L Bynum, Manager of the SmartWay Transport Partnership at the U.S. Environmental Protection
Agency, provided concluding remarks. She emphasized that everyone across the global supply chain—
from single owner-operators to large multinational companies—has a role to play in increasing freight
sector sustainability. It is the job of government, she said, to address interests along this spectrum.  Ms.
Bynum reminded the audience that many small changes throughout the sector can add up to  significant
reductions in emissions. Freight sector sustainability, she noted, has many additional benefits such as
economic growth, job creation, and increased global security through  reduced dependence on foreign
oil. In closing, Ms. Bynum underlined that SmartWay works—and will continue to work—through
powerful  collaboration, and that EPA looks forward to sustaining and building the partnership that has
already produced substantial benefits for the economy and the environment.

Presentations  from   the   summit   are   available  at:    http://www.epa.gov/smartwav/partner-
resources/summit.htm.   Attachment 1  provides  the meeting agenda. Attachment 2 provides a list of
organizations that were represented at the meeting.
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Attachment 1:  Meeting Agenda
Thursday November 17, 2011
08:30am- 09:00am
09:00 am - 09:30 am
09:30 -10:45 am
10:45 -11:00 am
11:00-11:15 am
11:15-12:15 pm
12:20 -1:20
Welcome, Opening Remarks
MargoT. Oge, Director, Office of Transportation and Air Quality, U.S. Environmental
Protection Agency

Keynote
Featured Speaker: Gina McCarthy, Assistant Administrator, Office of Air and Radiation
U.S. Environmental Protection Agency

Supporting the Economy, Environmental Sustainability, Jobs, and
Energy Independence: Part I
How leading companies are creating value, achieving environmental and economic
sustainability, and contributing to energy security and job growth  by improving
productivity,  lowering costs, and reducing emissions

Moderator: James Jack, Executive Director, Coalition for Responsible Transportation
Panel:
        Randy Mullett
        Vice President Government Relations and Public Affairs, Con-way Inc
        Jim Butts
        Senior Vice President Transportation, CH Robinson
        Lindsay Chason
        Senior Manager, Environmental Innovations, The Home Depot

Break
Remarks: Finding the Ways that Work: Synergies for Advancing Sustainable Freight
Transport
Featured Speaker. Fred Krupp, President, Environmental Defense Fund

Interview and Discussion: Sustainable Goods Movement
How supply chains balance environmental stewardship and growth

Moderator:  Richard Kassel, Senior Attorney and Director, Natural Resources Defense
Council
Panel:
        Victor La Rosa
        President, Total Transportation Services, Inc.
        Adam Siegel
        Vice President of Sustainability and Retail Operations, Retail Industry Leaders
        Association
        William Nurthen
        General Manager, Port Authority of NY and NJ, Port Commerce Department,
        Environment and WaterWay Development Program
        Ken  Dorsey
        Association of American Railroads
Lunch
Keynote Speaker: David Matsuda, Administrator, Maritime Administration, U.S.
                                                13

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                         Department of Transportation

1:30 - 2:30 pm            Building an Efficient, Competitive and Environmentally Sustainable Freight Supply
                         Chain in North America
                         Perspectives on accelerating the adoption of advanced technologies and energy
                         savings for the multimodal,  North American supply chain

                         Moderator: Dennis McLerran, EPA Regional Administrator, Region 10
                         Panel:
                                Allen Schaeffer
                                Executive Director, Diesel Technology Forum
                                Dave Berry
                                Vice President, Swift Transportation
                                Susan Alt
                                Vice President, Strategy and Industry Relations, Volvo Trucks

2:30 pm - 2:45 pm         Break

2:45 pm - 3:00 pm         Remarks: Trucking Today: Traveling the Clean-Green Road
                         Featured Speaker: Governor Bill Graves, President and CEO, American Trucking
                         Associations

3:00 - 4:00 pm            Interview and Discussion: Supporting the Economy, Jobs, and Energy Independence:
                         Part II
                         How can small firms and innovative U.S. businesses compete in a rapidly changing
                         global market?

                         Moderator: Coralie Cooper,  U.S. Department of Transportation, Volpe Center
                         Panel:
                                Paul Fouts
                                Independent owner/operator, Paul Fouts Trucking
                                Andy Garcia
                                Chairman of the Board, GSC Logistics
                                Paul Esposito
                                Chief Executive Officer, Railex

4:00 - 4:15 pm            Remarks: Addressing the nation's energy security challenges
                         Featured Speaker: Drew Sloan, former U.S. Army Captain, Iraq and Afghanistan
                         veteran, Operation Free, Fellow, Truman National Security Project

4:15 - 4:30 pm            Closing Remarks for the Day
                         Jim Blubaugh, Deputy Division Director, U.S. Environmental Protection Agency, Office
                         of Transportation & Air Quality

4:30 - 6:00 pm            Reception
                         Remarks:  Jerry Widner, Lowe's, Freight Sustainability Summit VIP Steering Committee
                                                  14

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Friday, November 18, 2011
08:45 - 09:00 am
09:00 -10:15 am
10:15-10:30 am
10:30 -10:45 am

10:45 -12:00 pm
Noon
Welcome, Opening Remarks
Glen Kedzie, Vice President & Environmental Counsel, American Trucking Associations

Achieving Sustainability through SmartWay Verified Technologies and Operational
Practices
The future of SmartWay tractors and trailers, and how SmartWay verified equipment,
information technology and operational practices are contributing to sustainable
transportation

Moderator: Sam Waltzer, U.S. Environmental Protection Agency, Transportation and
Climate Division
Panel:
        John Emerson
        Director of Standards and Government Relations, Michelin
        Elizabeth Fretheim
        Director, Business Strategy & Sustainability, Walmart
        Dan Kieffer
        Director, Emissions Compliance, PACCAR
        Jeff Sims
        Truck Trailer Manufacturer Association

Remarks: How are EPA's Partnership and Regulatory Programs Addressing our
Nation's Economic, Energy and Environmental Needs?
Featured Speaker: Karl Simon, Division  Director, U.S. Environmental Protection Agency,
Office of Transportation and Air Quality

Break

Supply Chain Performance Benchmarking and Carbon Accounting
How SmartWay's second-generation tools meet the need for performance
benchmarking and carbon accounting in the supply chain

Moderator: Beverly Banister,  U.S. Environmental Protection Agency, Region 4,
Director, Air, Pesticides and Toxics Management Division
Panel:
        Tony Craig
        Massachusetts Institute of Technology Center for Transportation & Logistics
        Matt Payne
        U.S. Environmental Protection Agency
        Gail Barnes
        Marketing Director, Innovation Center for U.S. Dairy

Closing Remarks
Cheryl  L Bynum, Manager, SmartWay Transport Partnership, U.S. Environmental
Protection Agency Office of Transportation and Air Quality
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 Attachment 2:  Companies and Organizations Represented
ABF Freight System, Inc.
AireDock
AJW, Inc.
American Association of Port Authorities
American Council for an Energy Efficient Economy
American Shipper Magazine
American Trucking Associations
APL
Argonne National Laboratory
Association of American Railroads
Big 5 Trucking
BNA
Braun's Express
California Multimodal LLC
CALStart
Cascade Sierra Solutions
Caterpillar
CH Robinson
CJ Lake
Clean Air Council
Coalition for Responsible Transportation
Coalition for Transportation Productivity
Con-way, Inc.
Diageo
Diesel Technology Forum
Dynamic Worldwide
Emissions Advantage
Environmental and Energy Study Institute
Environmental Defense Fund
Evans Delivery
Exel
Federal Highway Administration
Fringe Embassy
General Services Administration
George Washington University
Greenwire
GSC Logistics
Harris Corp. PSPC
Heavy Duty Trucking
Idle Air
IKEA Distribution Services
Industry Action Group
Innovation Center for U.S. Dairy
Inside Washington Publishers
International Brotherhood of Teamsters
International Council on Clean Transportation
International Warehouse Logisitics Association
J.B. Hunt Transport
JCPenney Co.
Journal of Commerce
Kimberly-Clark Corporation
Kohl's Department Stores
Kraft Foods
Lowe's Companies, Inc.
Manufacturers of Emission Controls Association
Maryland Port Administration
Massachusetts Institute of Technology
Menlo Worldwide  Logistics
Metropolitan Washington Council of Governments
Michelin
Mid-Atlantic Regional Air Management Association, Inc.
National Automobile Dealers Association
National Logistics Management
National Resources Canada
National Retail Federation
Natural Resources Defense Council
Navistar
New West Technologies
Norfolk Southern Corporation
North American Council for Freight Efficiency
Northeast States for Coordinated Air Use Management
Old Dominion Freight Line, Inc.
Owner-Operator Independent Drivers Association
PACCAR
Paul Fouts Trucking
Penske Truck Leasing
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PITT OHIO
Politico
Port Authority of New York and New Jersey
Railex USA
Retail Industry Leaders Association
Ruan Transport Corporation
Ryder Integrated Logistics
Schneider National, Inc.
Stanley, Black & Decker
Stratacomm
StreetTurn.net
SunEnergyl
Swift Transportation
The Aluminum Association
The Causeway Agency
The Home Depot
The Waterfront Coalition
Total Transportation Services
Transplace
Transport Topics
Truck Trailer Manufacturers Association
Truman National Security Project
U.S. Department of Energy
U.S. Department of Transportation
U.S. Department of Transportation Maritime Association
U.S. Environmental Protection Agency
UPS
Virginia Tech Transportation Institute
Volvo Trucks
Wai-mart
Walsh Transportation Group
Webasto
Werner
Werner
Williams Mullen
YRC Worldwide, Inc.
Yusen Logistics, Inc.

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