DERA - Reducing Diesel Emissions

Adam PageSC DHEC – Bureau of Air QualityJuly 28, 2010

Diesel in the Southeast

Air Quality in Region 4

• Air quality concerns:

- 70 Counties have monitors reading above the 2008 8-hr ozone of .075 ppm, population ~16 million people

- 47 Counties not attaining PM2.5 standard, population ~8 million people

- 2010 Ozone standard in August

- Annual PM2.5 standard in November 2010

Why Reduce Diesel Emissions?

• Public Health concerns:– Premature death– Diesel exhaust identified as an asthma trigger and

a carcinogen– Other respiratory system effects– EPA estimates that every $1 spent on clean diesel

projects produces up to $13 of public health benefits

Why Reduce Diesel Emissions? Cont’d

• Children’s lungs still developing – more susceptible than healthy adults to exposure.

• Children breath 50% more air per pound of body weight than adults.

Why Reduce Diesel Emissions? Cont’d

High NOx emissions – critical to reduce to help meet tighter ozone standards.

Large contributor to PM pollution - reductions will help to meet standards.

Also Air Toxics These emissions can damage plants,

animals, crops, and water resources.

Southeast Diesel Collaborative

• Public-private partnership to address the impacts of diesel engines and fuel use in the Southeast.

• Leverage resources to maximize benefits

• Limit duplication of effort

• Pool intellectual capital

www.southeastdiesel.org

Collaborative Partners

• Government– Federal, State and local air quality,

transportation, energy and agriculture agencies

• Industry representatives

• Non-governmental organizations (e.g., ALA, environmental orgs, community groups, academia, etc.)

SEDC Sector Strategy

• Public Fleets

• Non-Road

• Freight

Non-Road

• Pilot projects

• Non-road retrofits can be some of the most cost effective

• Contract language

• Engage private sector in discussions, lots of interest here.

Focus Area Goal: Secure funding to establish retrofit projects, work with DOTs to create contract provision language

For example, a 175 horsepower bulldozer emits as much particulate matter (PM) as 500 new cars.

Retrofitted with a DPF – 50 new cars (~90% reduction)

National Clean Diesel Campaign (NCDC)

• EPA offers many strategies and programs to help make these engines cleaner, as well as funding to build diesel emission reduction programs that improve air quality and protect public health. www.epa.gov/cleandiesel

• To assist fleet owners, Congress authorized funding for clean diesel activities in the Diesel Emissions Reduction Act (DERA) as part of the 2005 Energy Policy Act.

Diesel Emissions Reduction Act (DERA)

2 Main Components:

• National Clean Diesel Program

- 3 Components: Funding Assistance Program, Emerging Technologies, and Innovative Finance Program (http://www.epa.gov/cleandiesel/grantfund.htm)

• State Clean Diesel Grant Program

- Funds are distributed directly to the States to establish their own diesel emissions reduction programs. (DHEC)

Legacy Fleet = Target

Why Target the Legacy Fleet?

As a result of EPA regulations, diesel engines manufactured today are cleaner than ever.

Although more stringent emissions standards are taking effect for on road and off road engines the “Legacy Fleet” is still in circulation.

These engines will continue to emit large amounts of pollutants for years to come having negative public health impacts as well as affecting many areas in our state and their ability to stay in attainment with National Ambient Air Quality Standards.

Eligible Entities

Private Organizations

Universities

Businesses

County, City, or other local government

Project Possibilities

Eligible Fleets and Equipment:o Buses, medium-duty or

heavy-duty trucks

o Marine engines or locomotives

o Off-road engines or vehicles used in construction, agriculture, mining, handling of cargo, or energy production (ex: generator sets)

Project Possibilities (cont’d)

Eligible Projects include:o Retrofit technologies (

http://www.epa.gov/otaq/retrofit/verif-list.htm) o Engine repowers, rebuilds, or replacementso Idle reduction technologies (APUs, Truck Stop

Electrification…http://www.epa.gov/smartway/transport/what-smartway/verified-technologies.htm)

o Emerging technologies (http://www.epa.gov/cleandiesel/prgemerglist.htmselect)

o Cleaner Fuels

State DERA Program

• DHEC has received over $2 million in funding from EPA, which has been leveraged to over $3 million to reduce emissions from on-road, non-road, marine and stationary diesel engines.

• Projects include retrofits, engine replacements or repowers, idle reduction, or use of cleaner fuels.

• Estimated reductions of 2000 tons of NOx and 78 tons of PM over the lifetime of the equipment from DHEC specific funding.

DERA (cont’d)

• Majority of funding awarded via competitive grant process; some targeted projects.

• Funding has been distributed to SC Public Railways, SC Trucking Assn., SC Dept. of Ed., SC Forestry, USC, SRS, Vulcan, CMC Steel, Bowers Nursery, Sutton Const., Carolina Contracting, Hanson Aggregates, Moran Towing, Blythewood High School, Charleston Co. School District, Greenville, Anderson, Lexington and Spartanburg Counties, the cities of Charleston and Columbia

Selection Criteria

Awards based on: Matching/In-kind funds Expected benefits (emissions reductions) Cost-effectiveness (emissions vs. cost of

implementation)Location of the planned projectSustainability and innovation

Currently…

• We just received our FY09 allocation and have ~$300,000 available for projects

• We will receive our FY10 allocation later this Fall. ~$300,000 available for projects

• Tracking and Monitoring FY08 grants and 09 ARRA DERA grants

• www.scdhec.gov/dera - for updates

Statewide Clean Diesel Efforts

Statewide Clean Diesel Efforts

• Over $11 million worth of projects are being implemented in SC using $6.2 million of federal funding from Clean School Bus USA and Diesel Emission Reduction Act (DERA) funding and $4.8 million in participant matching funds.

• SC Dept. of Education & SC State Ports Authority received funding via EPA Region 4 grant process in 2009.– SC SPA has received 2 grants (08 and 09) totaling $2.75

million and has leveraged the projects to total over $5 million.

– SC Dept. of Education received a grant for $500,000 and leveraged the project to total $800,000

Statewide Clean Diesel Efforts (cont’d)

• SC Dept of Education received Clean School Bus USA grants in 2005 and 2007 for $499,000 and $244,500 respectively and leveraged the projects to total approximately $750,000 and $500,000 respectively.– These projects included engine retrofits and

idle reduction technologies on school buses.

Statewide Clean Diesel Efforts (cont’d)

• SC also received 4 grants from the Grade+ Program through funding from Mecklenburg County, NC, who received an ARRA DERA grant. – York County, Chester County, Lake Wylie

Marina, and Ideal Logging, Inc.– These were repower and replacement projects

totaling over $222,000 and were leveraged to total over $790,000.

South Carolina Clean School Bus USA

• One of the largest school bus retrofit programs in the country

• $2M: several projects totaling almost 2000 school bus retrofits

• Used Department of Education leadership to leverage biodiesel for other state agencies

Regulatory Strategy

Diesel engines in all mobile source applications-• Regulations adopted; now focused on implementation:

• Rulemakings underway for:

• Current Regulations– Very large public health and environmental benefits will result– By 2030, PM reduced by ~250,000 tons/year, NOx by ~4 million tons/year

Heavy-duty trucks & buses

Nonroad Machines

Light – duty Vehicles

Loco-motives

Marine Vessels

Ocean-going Ships

Reconciling Diesels with the Environment: EPA’s National Clean Diesel Campaign

Nonroad Dieselsales over 650,000 / yr12B gallons / yrfinal rule 2004fully phased in 2015

Tier 2 Light-Dutyfinal rule 1999fully phased in 2009Diesels held to same stringent standards as gasoline vehicles

Heavy-Duty Highwaysales 800,000 / yr40B gallons / yrfinal rule 2000fully phased in 2010

Locomotive/Marinesales 40,000 (1,000 locomotives) / yr6B gallons / yrfinal rule 2008fully phased in 2017

Marine Regulations

• In March 2008, EPA finalized a 3 part program that will dramatically reduce emissions from marine diesel engines below 30 liters per cylinder displacement.

-includes recreational and small fishing boats to towboats, tugboats and Great Lake freighters, and marine auxiliary engines ranging from small generator sets to large generator sets on ocean-going vessels.)

-PM emissions reduced by as much as 90 percent and NOx emissions by as much as 80 percent when fully implemented.

• Part 1: 1st ever national emission standards for existing marine diesel engines, applying to engines larger than 600kW when they are remanufactured – effective 2008.

• Part 2: Tier 3 emissions standards for newly-built engines - phase in began in 2009.

• Part 3: Tier 4 standards for newly-built commercial marine diesel engines above 600kW - phasing in beginning in 2014.

Nonroad Diesel Rule Health Benefits

00 10,00010,000 20,00020,000

lost work dayslost work days

hospital hospital admissionsadmissions

ER visits byER visits bykids w/ asthmakids w/ asthma

nonfatalnonfatalheart attacksheart attacks

premature deathspremature deaths

# prevented annually (in 2030) # prevented annually (in 2030)

12,00012,000

15,00015,000

6,0006,000

8,9008,9001 1 millionmillion

$80B annual benefits vs. $2B cost (in 2030) $80B annual benefits vs. $2B cost (in 2030)

Mobile Source Diesel Emissions Inventory by Sector (2004)

NOx(6.3 million tons)

PM 2.5(305,000 tons)

freight 56%

ports4%

school bus1%transit

1%

agriculture 8%

construction 11%

non-port marine 13%

other nonroad4%

other highway3%

freight 32%

transit0%

school bus2%

other highway3%

ports5%

other nonroad9%

non-port marine9%

agriculture 19%

construction 21%

What is a Retrofit Technology?

• Retrofit technology can be: any change to an engine system above and beyond what is required by EPA regulations that improves the engine’s emission performance:

• Catalyst or filter

• Engine upgrade/repower

• Early engine replacement

• Use of cleaner fuels or additives

• Idling control equipment

• Combination of above

• The NCDC promotes innovative strategies that improves a particular fleet’s environmental performance

• NCDC’s website maintains a list of manufacturers and verified technology

Technology Verification

• EPA has a rigorous testing program for evaluating technologies

• EPA works with technology vendors, engine manufacturers, MECA

• Memorandum of Agreement between EPA and CARB

• Retrofit technologies to reduce PM and NOx emissions currently verified by EPA & CARB:

– DPFs, DOCs, Crankcase Filtration, Emulsified Fuel, Biodiesel, EGR and SCR systems.

• Information about EPA’s Verification program: http://www.epa.gov/otaq/retrofit/retroverifiedlist.htm

Cost Estimates for PM Reduction Measures

Measure Cost per Measure% Reduction in PM Emissions

Diesel Oxidation Catalyst $500 - $2,000 20-40%

Particulate Matter Filter $5,000 - $10,000 60-90%

Crankcase Filtration (school buses)

$500 - $1,000 5-10%

Idle Reduction (drayage trucks)

$0 2%

Direct Fired Heater (freight trucks)

$1,000 5%

Clean Fuels: ULSD, CNG, Biodiesel (B20/B100), Emulsified Diesel Fuel

varies varies

In Conclusion

• Need exists to reduce non-road diesel emissions

• Good position to leverage existing successes to expand efforts

• Region-wide network and technical resources already exist that can be utilized to achieve significant results in a timely manner

• Keep working together to build on past successes

Contacts:

Adam PagePhone: (803) 898-1423email: pageac@dhec.sc.gov

Lisa ClarkPhone: (803) 898-0717email: clarkmb@dhec.sc.gov

www.scdhec.gov/dera

Brian Barnes

Phone: (803) 898-7099

email: barnesbk@dhec.sc.gov