Climate 411

Clean Trucks Turn Five and Bring Far-Reaching Economic and Environmental Benefits

By Jason Mathers / Published: August 9, 2016
One of Walmart's aerodynamic trucks

One of Walmart’s aerodynamic trucks

Five years ago today, President Obama announced final fuel efficiency and greenhouse gas standards for heavy duty trucks. These new Clean Truck standards are helping to keep Americans safe from climate change and from unhealthy air pollution, reduce our country’s reliance on imported oil, and save money for both truckers and consumers.

On the fifth anniversary of their release, it is unequivocally clear that this program has been an enormous success for manufacturers, truck fleets, freight shippers, and the American people. It is also clear that more is needed and that more is possible.

The first generation Clean Truck standards were created with the broad support of the trucking industry and many other key stakeholders. Among the diverse groups that supported them were the American Trucking Associations, Engine Manufacturers Association and the Truck Manufacturers Association, the United Auto Workers — and of course EDF. With the benefit of five years of hindsight, it’s clear that this support was well deserved.

The Clean Truck standards went into effect in 2014, which was a banner year for new truck sales. These new standards drove a wave of innovation for fuel efficiency. Cummins brought forward an engine that was seven percent more efficient. Volvo improved its engine by three percent compared to just the previous year’s model. Numerous component manufacturers brought forth new fuel saving solutions.

We are now seeing this same pattern repeat itself as manufacturers announce their 2017 product lines. Volvo just introduced an engine capable of improving fuel efficiency by 6.5 percent over its 2013 model in part because of its use of waste-heat recovery. Cummins base 2017 engine is three percent more efficient than its 2016 engine and it offers a model that is 10 more efficient than one made just five years ago.

The progress we made toward fuel efficiency in 2014 and 2017 is the result of a Clean Trucks program that strikes an important balance between protective, long-term standards and the ability of manufacturers to bring new solutions to market. As Martin Daum, president and CEO of Daimler Trucks North America has noted, these standards “are very good examples of regulations that work well.”

The new trucks built under the 2014-to-2018 program are delivering tens of billions of dollars in savings for truck owners. Individual consumers are benefiting too, as passed-through truck fuel use expenditures cost Americans more than $1100 per household annually.

The U.S. Environmental Protection Agency (EPA) and Department of Transportation (DOT) are now building on this record of success with a new round of standards. These second-round standards were proposed last summer and are expected to be finalized soon. The proposed second-round standards were a good first step, but significant opportunities remain to strengthen and improve on the proposal. Chief among these is the need for a more robust engine standard.

The 2014-to-2017 program, which has been incredibly successful, required a nine percent engine efficiency improvement over the course of four years. In comparison, the proposed 2021-to-2029 program would require only a four percent improvement over the course of nearly a decade. Failing to strengthen these standards would be an enormous lost opportunity. Leading engine experts have found that fuel savings of fifteen percent beyond the 2017 standards are technically feasible and cost effective over the course of the 2021-to-2029 program.

The U.S. Energy Information Administration released a recent analysis of the emissions impacts of the 2021-to-2029 standards as proposed. It found that the standards would cut direct emissions by 100 million tons in 2040 compared to a business-as-usual scenario. Even with these impressive reductions, freight trucks are projected to directly emit nearly 400 million tons of climate pollution in 2040. This doesn’t have to be so.

We are seeing significant investments in potential solutions and technologies that can dramatically reduce future truck emissions.

High-profile examples of this innovation include:

  • Tesla’s intention of bringing forward an electric semi-truck, noting that a prototype truck will be unveiled in 2017
  • Walmart’s introduction of its W.A.V.E. truck
  • The U.S. Department of Energy’s SuperTruck team road-testing trucks capable of getting 10.7 and 12.2 miles per gallon

By building on the foundation of the 2014-to-2017 standards with truly strong 2021-to-2029 standards, EPA and DOT will provided needed wind in the sails to get breakthrough innovations like these to market. The benefits have been, and will be, far reaching — in fuel cost savings for trucker and shippers alike, job creation, pollution reductions, and the technological innovation that is the foundation of a strong, vibrant economy.

Also posted in Clean Air Act, Economics, Greenhouse Gas Emissions, Partners for Change, Policy / Read 1 Response

Clean Trucks: Much Needed and Ready to Deliver

By Jason Mathers / Published: June 28, 2016

There was some good news from the U.S. Energy Information Agency recently. It found that the Clean Trucks program, which is expected to be jointly finalized this summer by the Environmental Protection Agency (EPA) and the Department of Transportation (DOT), will deliver huge carbon emission reductions.

"Kenworth truck" by Lisa M. Macias, U.S. Air Force via Wikipedia

The Clean Trucks program is designed to improve fuel efficiency and reduce greenhouse gas pollution from the freight trucks that transport the products we buy every day, as well as buses, heavy-duty pickup trucks and vans, and garbage trucks. The program’s first performance standards went into effect in 2014. The EPA and DOT are currently developing a second phase of performance standards. Strong standards can help keep Americans safe from climate change and from unhealthy air pollution, reduce our country’s reliance on imported oil, and save money for both truckers and consumers.

Without the Clean Trucks program, big trucks are on pace to increase emissions more than nearly any other end-use source of emissions between 2014 and 2040.

The proposed program charts a new course. The overall impact is 1.5 billion metric tons avoided (including upstream) through 2040.

The final program, which is currently being reviewed by the Office of Management and Budget, is expected to be announced this summer. EDF and a broad collation of clean air advocates, consumer groups, equipment manufacturers, trucking fleets, and freight shippers have called for the EPA and DOT to finalize strong standards.

Traffic Light TrucksIt is well documented that fuel saving solutions for heavy trucks exist today and can be cost-effectively deployed over the coming decade. Moreover, making trucks more fuel efficient will reduce lifecycle costs for truckers, freight shippers and consumers. We understand that stringent long-term fuel efficiency and greenhouse gas standards are necessary to overcome a range of barriers that prevent cost-effective solutions from reaching scale.

We are hopeful that the overall emissions savings from the Clean Trucks program will be even greater than expected benefits modeled in EIA’s analysis. EDF and others have called on the agencies to reduce new truck fuel consumption by 40 percent by model year 2025 beyond 2010 levels. This would increase annual emission reductions by an additional 40 million tons annually in 2035.

Others see the potential for greater efficiency levels, too:

The proposed Clean Truck program is a critical milestone on the journey to the truly transformative emission reductions we need from the freight sector. As we noted in 2013, trucks were on the path to account for 80 percent of the growth of freight emissions by 2040. The Clean Trucks program is set to offset this growth and start us on the long-term path towards substantial emission reductions.

This is indeed an achievement worthy of celebrating.

Also posted in Greenhouse Gas Emissions, Policy / Read 1 Response

Go Farther, Faster to Cut Truck Pollution

By Jason Mathers / Published: March 9, 2016

The U.S. has put in place well-designed policies to cut climate pollution, and, with adopted and proposed policies, the nation’s 2025 climate reduction goals are within reach.  However, we are not there yet, and important work remains.

Big trucks have a critical contribution to make in cutting emissions now and well into the future. Cost-effective technologies are available to significantly reduce fuel use. Conversely, if we don’t take common sense steps today to cut climate-destabilizing emissions from this sector, climate emissions are projected to rise by approximately 15 percent by 2040. This is particularly problematic when you consider that the nation must reduce carbon emissions by at least 83 percent below 2005 levels by 2050 to prevent severe, potentially catastrophic, levels of climate change. Without further action to cut emissions from heavy-trucks, the sector would consume nearly 40 percent of our national 2050 emissions budget – a level that is clearly not sustainable.

Pepsi truck

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The good news is that there is much that can be done to reduce emissions from trucks while also saving money; this year we have a unique opportunity to get started. As EPA Administrator McCarthy recently noted, finalizing new greenhouse gas (GHG) standards for heavy-duty vehicles is a priority in 2016.

Given the combination of environmental and economic benefits that strong GHG standards will provide, many leading companies have already shown public support. PepsiCo and Walmart – two of the largest trucking fleets in the U.S. — support strong standards. General Mills, Campbell’s Soup, IKEA and many other companies that rely on trucking support strong standards. Innovative manufacturers support strong standards.

So, where do we go from here?

The draft proposal issued jointly by the Environmental Protection Agency (EPA) and the Department of Transportation (DOT) in June 2015 is a good step, particularly because it maintains a sound, enforceable structure of separate engine and vehicle standards. However, the proposal leaves significant emission reductions on the table, specifically in its engine standard.

The first generation of heavy truck fuel efficiency standards required engines to reduce fuel use and emissions by 6 percent from 2010 to 2017, or roughly 1 percent per year. The current draft would require reductions of only 4.2 percent from 2017 through 2030. Nearly all of this progress occurs between 2021 and 2024. Between 2025 and 2030 these standards increase by only 0.5 percent.  The hill we need to climb to achieve our 2050 emissions goals is steep enough without losing critical time to such nominal progress.

We can do more.

  • Finalizing stronger standards today will deliver more than just near-term emissions reductions. Trucks are long-lived assets. Some trucks manufactured in 2025 will still be on the road well into the middle of this century. The trucks we put on the road in 2030 will impact our ability to meet 2050 targets – and to avoid catastrophic climate change.
  • Stronger standards also enable a virtuous cycle of improvement. A higher bar for these next standards will drive additional investments in research and development and expedite market entry of the next generation of solutions. This, in turn, drives the innovation we will need to enable this sector to contribute to achieving our 2050 targets. All while creating an annual economic benefit of $50 billion dollars.

The savings potential we are seeing now is only the tip of the iceberg. As an executive with the Volvo Group – a leading global producer of heavy-trucks — recently highlighted, “there are no real limits” to our technical ability to reduce greenhouse gas emissions from trucks.  Our limitations are societal choices.

When it comes to trucks, we know that much greater emission savings than have been proposed are eminently reasonable. We know more protective standards are readily within reach – one of the largest truck makers created a truck that gets 12.2 MPG and another leading manufacturer and engine company teamed-up to create a 10.7 MPG truck.

These breakthroughs and others have come through the Department of Energy’s SuperTruck program — a leading public-private partnership that has delivered impressive results over the past decade and is investing another $80 million to develop more fuel saving solutions. Included among its current research investments are a medium-duty plug-in hybrid vehicle powertrain that reduces fuel consumption by 50 percent; a class 6 plug in hybrid delivery truck that reduces fuel consumption by 50 percent; and a class 6 delivery truck with a scalable, innovative, lightweight, low-cost, and commercially-viable plug-in electric drive system that improves fuel economy by 100 percent.

Here’s hoping the EPA and DOT, recognizing the clear potential of existing and emerging technology, will finalize the protective standards we need to cut truck pollution farther, faster, strengthen our economy and achieve U.S. climate goals.

This post originally appeared on our EDF+Business blog.

Also posted in Partners for Change, Policy / Comments are closed

Driving Truck Efficiency with Smart Standards: Innovative Companies On How It Can Be Done

By Christina Wolfe / Published: September 30, 2015

(This post originally appeared on EDF+Business)

The deadline to provide public comment on new greenhouse gas and fuel efficiency standards for large highway trucks and buses—jointly proposed by the U.S. Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA)—is quickly approaching. Overall, the proposed new fuel economy and greenhouse gas emissions standards have been heralded by shippers and others. And a majority of Americans — 71 percent — favor requiring truck manufacturers to increase the fuel efficiency of large trucks because it would reduce fuel costs, with much of the savings passed on to consumers.

DTNA Super Truck HighOne of the most interesting developments, however, has been how innovative companies are stepping forward to remind EPA and NHTSA that the technologies needed to meet the proposed standards are already available and the agencies should go further to drive the deployment of more advanced technologies.

What’s being said?

It’s critical to consider the perspective of the companies that are actively developing and deploying advanced transportation technologies – these are the companies that will help lead the way towards cleaner and more efficient transportation. These companies are calling on the agencies to finalize a stronger program that will advance innovative technologies and drive down costs.

  • Achates Power: “We support the EPA’s intent to establish standards based not only on currently available technologies, but also based on technologies now under development or not yet widely deployed. We view the proposed engine standard, however, as too modest – so modest that it may not achieve the agencies’ explicit objective of spurring advanced technology deployment.” “We propose an engine standard requiring a 15 percent decrease in fuel consumption and emissions. That goal is not only attainable with the technology we have already demonstrated but is, in fact, our plan.”
  • Orange EV: “We support the efforts by EPA and NHTSA to address greenhouse gas emissions and fuel efficiency in this proposed rule, but encourage the agencies to adopt stronger standards and full implementation as soon as possible. Targeting incremental improvements by 2027 may be slower than achievable.” “Orange EV has been driving innovation and sustainability in the transportation industry, now filling customer orders and deploying zero-emission, battery powered trucks.”
  • Parker Hannifin Corporation: “It is important to note that the 40% reduction in fuel consumption and emissions in Class 6-8 vehicles proposed in the new rule is not something for the future. It is happening now. Parker has developed and is actively marketing a hydraulic hybrid medium- and heavy-duty vehicle transmission that is currently achieving and surpassing the 40% reduction in fuel consumption and emissions sought in the new rule.”
  • Prevok Solutions Company, the exclusive US sales and market development entity for Smith Electric Vehicles: “[Prevok] strongly supports the Phase 2 Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles as proposed by EPA and the National Highway Traffic Safety Administration (NHTSA). In fact, we encourage the agencies to adopt stronger standards and full implementation by 2024.” “Rulemaking by EPA and NHTSA should serve to help the US thrive economically and sustainably, while advancing clean technologies and driving innovation.”
  • Transportation Power: “We are demonstrating today that zero-emissions transportation technology in the freight sector is viable, achievable, and even preferable for fleets to traditional technologies.” “The rule, as is, would lock the status quo for technology until 2030. Please consider strengthening the proposed standards and revising the timeline for full implementation to 2024.”
  • Momentum Wireless Power: “Strong fuel efficiency standards are good for American manufacturing because they stimulate innovation, making U.S. businesses more competitive globally. Through partnerships with the Department of Energy, major manufacturers have proven fuel economy ratings of over 12 mpg are achievable for combination tractors through advanced technologies.”

Other leaders in sustainable transportation have emphasized that the standards should “further support zero emission technologies” (US Hybrid, Long Beach public testimony), and in fact, Transportation Power drove to one of the public hearings on the proposed standards in a zero emission Class 8 heavy-duty truck to showcase that solutions for vocational trucks are available today.

Why more robust truck efficiency standards are being heralded

The proposed new standards will build on the first-ever Phase 1 fuel economy and greenhouse gas standards finalized in 2011 for model year 2014-2018 heavy-duty trucks and buses. As proposed, the standards will provide significant benefits to consumers and businesses by reducing transportation costs and cutting harmful climate and air pollution.

However, the performance standards proposed do not reflect – and mobilize —  the full suite of cost-effective innovative technologies available to improve efficiency across the heavy-duty fleet. Instead, the standards will lock in today’s technologies until 2030 – meaning we’ll have to wait another 15 years before we can accelerate advanced technologies. And we know the difference fifteen years can make (in 2000, for example, trucks were 90+ percent dirtier than they are today, and barely half of the US population was online, compared to 84 percent today!).

Strong standards unleash potential of these and other companies to innovate and bring new solutions to market.  As these solutions scale, these companies will grow and create more, high-quality jobs. That’s why so many innovative companies are calling on the US government to seize this opportunity to finalize standards that drive American innovation and ingenuity.

EDF agrees with these innovators that more can be done, and we urge EPA and NHTSA to finalize robust standards that provide the economic, environmental and public health benefits needed to protect our communities and families.

Also posted in Clean Air Act, Partners for Change, Policy / Read 1 Response

Accelerating the Shift to More Efficient Trucks

By EDF Blogs / Published: June 23, 2015

By Tom Murray, Vice President, Corporate Partnerships, Environmental Defense Fund

Freight transportation is the work horse of the global economy, ensuring that the products consumers want get on the shelves where and when they want them. With 70 percent of U.S. goods being moved by truck, freight is a key source of U.S. fuel consumption and corporate greenhouse gas (GHG) emissions. Today, freight also offers companies a key opportunity to drive us toward a lower carbon future.

pepsico-logoIn a Wall Street Journal op-ed with EDF President Fred Krupp, Pepsico Chairman and CEO Indra Nooyi voiced the company’s strong support of the new fuel efficiency and GHG standards for medium and heavy duty trucks released today by the U.S. Environment Protection Agency and Department of Transportation. Over the life of the program, these robust standards will cut fuel consumption in new trucks by 1.8 billion barrels of oil and reduce carbon emissions by one billion metric tons.

Leading companies like General Mills, Walmart and Anheuser-Busch have made reducing fuel use and emissions from freight a priority in setting their internal supply chain performance goals. But Pepsico’s willingness to step forward with this op-ed is a prime example of how companies can extend their leadership by aligning their public policy stances on with their sustainability goals – what EDF has been referring to as the business-policy nexus.

Freight affects all of us, but business is in the driver’s seat

EDF - Building better trucksFreight transportation exists to serve companies that make or sell physical goods, from brands and manufacturers using trucks to bring in supplies and ship out final products, to technology companies needing trucks to deliver the hardware that powers their online services. While medium- and heavy-duty trucks only make up 7 percent of all vehicles on the road, they consume 25 percent of the fuel used by all U.S. vehicles.

Inefficient movement of goods wastes fuel, raises costs and increases environmental impacts. For firms like Pepsico, who maintain their own fleets, as well as those that contract out for freight moves, fuel is the single largest cost of owning and operating medium- and heavy-duty trucks. Truck fuel prices have increased 58 percent since 2009, a strong incentive for increasing the efficiency of trucks that move freight. Consumers are counting on businesses to solve this problem, as those costs are passed on to consumers. Through everyday purchases, the average U.S. household spends $1,100 a year to fuel big trucks. Strong standards can cut this expense by $150 on average a year by 2030.

Supporting strong truck standards is good business

PrintStrong standards will help companies meaningfully reduce their supply chain costs and carbon footprint. In an update of analysis originally produced last year, EDF and CERES found that under strong heavy truck fuel efficiency standards, companies could see freight rates fall nearly 7% as owners of tractor-trailer units see their costs fall by over 20 cents per mile. A big consumer goods company, for example, could save annually as much as 3 billion gallons of fuel and $11.5 million in freight costs per year in 2030 by using newer trucks produced under strong truck standards.

Supporting strong truck efficiency standards is also an important way for companies to proactively mitigate risk. In a world with higher oil prices, we could see freight costs double; however, even in a scenario where oil prices remain low, savings would still be significant.

Standing against or keeping quiet about the proposed rule is essentially committing to higher long-term costs, more greenhouse gas emissions and greater fuel use than would be the case under stronger efficiency standards.

Strong truck standards are achievable now

Manufacturers continue to prove that strong standards are feasible now. Leading fleets are already achieving more than 10 MPG through a combination of driver techniques and leveraging current technology, and component manufacturers continue to bring efficiency solutions to the market each year.

Who will speak up next?

In addition to speaking out in the Wall Street Journal, in a press release issued on June 19th, Pepsico joined companies like Cummins Inc., Eaton Corporation, FedEx, Waste Management and IKEA in voicing their support for the standards to both the White House and the EPA.

Because freight touches many points along the corporate supply chain, companies have a responsibility to push for strong standards that minimize the environmental impacts of moving goods in the U.S. This is smart business, and it’s another piece of the climate puzzle we’re racing to solve. Every company voicing support will help us all move down the road towards a cleaner future.

To learn more about the heavy truck fuel efficiency and GHG standards, join EDF’s Jason Mathers July 21st for our latest Business-Policy Nexus webinar, which will review the proposed standards and why companies should support these common-sense standards, which will not only protect our air quality and the climate overall, but save companies transportation costs. Register now for this informative webinar

This post originally appeared on our EDF + Business Blog.

Also posted in Greenhouse Gas Emissions, Jobs / Comments are closed

More Efficient Trucks Will Improve the Bottom Line

By Jason Mathers / Published: June 3, 2015

Here in the United States, the Environmental Protection Agency and the Department of Transportation will unveil new fuel efficiency and greenhouse gas standards for big trucks soon, according to the New York Times. At first glance, many companies might conclude that these new polices do not impact them. They’d be mistaken.

In fact, they would be overlooking an enormous opportunity to cut costs while delivering real-world progress on sustainability.

The fact is that nearly every company in the United States is reliant on heavy trucks, which move 70% of U.S. freight. Brands and manufacturers use trucks to bring in supplies and ship out final products. Retailers and grocers count on trucks to keep the shelves stocked. Technology companies need trucks to deliver the hardware that powers their online services. Even Major League Baseball has turned its dependence on trucking into a quasi-holiday.

More efficient trucks matter to all business because they will cut supply chain costs.

Last year, American businesses spent $657 billion dollars on trucking services. A lot of that money went to pay for fuel – the top cost for trucking, accounting for nearly 40% of all costs.

EDF and Ceres teamed up with MJ Bradley and Associates to assess how strong heavy truck fuel efficiency standards would benefit businesses that rely on trucking. In an update of analysis originally produced last year, we found that companies could see freight rates fall nearly 7% as owners of tractor-trailer units see their costs fall by $0.21/mile. Given that class 8 trucks logged nearly 170 billion miles last year, that $0.21 per mile savings, for example, equates to $34 billion dollars less in annual freight costs.

The magnitude of the savings in this update was consistent with our findings from last year; however, there are important changes in the underlying cost structure. In this new analysis we modeled significantly lower future U.S. diesel prices, in light of new fuel cost projections by the Energy Information Administration. We also updated the cost of more efficient equipment based on recent analysisby the International Council on Clean Transportation.

These savings add up for large shippers. A big consumer goods company, for example, could save over $10 million a year in 2030 by using trucking companies with newer trucks. As an added kicker, these trucks also would help meet the supply chain sustainability targets that leading brands are increasingly setting.

So, while your company may not own or make big trucks, cleaner, more efficient trucks hold a big opportunity for its triple bottom line.

This post originally appeared on our EDF + Business Blog.

Also posted in Energy, Greenhouse Gas Emissions / Comments are closed