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133 APPEN D I X F Environmental Freight Performance Measures: State of Practice

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134 Introduction produce a conformity estimate for those emissions. How- ever, EPA has used components of the models to produce The environmental impacts of freight performance can be estimates of greenhouse emissions such as carbon dioxide captured in several ways. Air-quality emissions can be esti- (CO2), methane (CH4), and nitrous oxide (N2O). It uses dif- mated for trucking, rail, air, and waterborne freight through ferent methodology to estimate hydrofluorcarbons (HFC), several extrapolations and interpolations conducted by EPA. which escape from air-conditioning and refrigeration units. Hazardous material releases attributed to trucking and rail Using slightly different methodology, it has produced com- accidents or spills are tracked through FMCSA and FRA. The parable estimates for rail, aviation, and water freight modes. energy use by sector is captured by several agencies. From These other modal estimates are produced by multiplying federal energy use data a "carbon footprint" can be calculated. total fuel use attributable to that mode by estimated emis- Localized impacts, such as petrochemical runoff from depots sion factors. or contaminated ballast releases from ships, are not subject These estimates are available from EPA at an aggregated to standardized national reporting and will not as easily lend national level. It relies on FHWA and the U.S. Energy Infor- themselves to calculating national performance measures mation Administration (USEIA) for the fuel estimates. Those until new reporting mechanisms are established. fuel estimates come from the refineries, not from the local retailers. This process greatly simplifies the estimates of fuel production for federal taxation purposes. However, it Greenhouse Gas Emissions Measures requires an estimation of how much fuel is attributable to Presently there are no national performance measures for each state for purposes of allocating federal fuel tax receipts. freight-related greenhouse gas emissions (GHE). However, EPA does not produce local or regional GHE emissions data there are estimates that could be monitored as general mea- for freight transport. However, because fuel use is estimated sures of the trends related to GHE generated by the freight by state, the same methodology EPA uses nationally could be sector. EPA generates these estimates by multiplying fuel-use estimated on a state basis. Also, because each metropolitan data by the emission factors generated from several sources.1 planning organization must produce conformity forecasts, it These factors are developed by EPA and then used by the probably would be possible to estimate from their existing states and metropolitan planning organizations when they models some regional GHE forecast similar to that produced conduct "conformity" analyses. A conformity analysis is a nationally by EPA. The models would not cover rural "attain- modeled estimate of whether the emission burden gener- ment" areas, which are not required to conduct conformity ated by transportation sources is within, or "conforms" to, analyses. the total allowable transportation emissions allowed for that As shown in Table F.1,2 the EPA report notes that the 77 region. The conformity models used by states and metropol- percent increase in truck-related GHE resulted from a dou- emissions data itan planning organizations for freight (MPOs) transport. were However, to not developed because fuel bling use ofisdiesel estimated fuelby state, the same consumption by trucking during the time methodology EPA uses nationally produce estimates of GHE emissions but were developed forcould be estimated on a state period. basis. It Also, reported because diesel each metropolitan consumption by medium- to heavy- planning organization must produce estimating ozone-related emissions of volatile organic com-conformity forecasts, it probably would be possible to estimate duty trucks increased from 18.5 billion gallons from to 36.0 billion their existing models some regional pounds (VOCs) and nitrogen oxides (NOx). Because there GHE forecast similar to that produced nationally by EPA. The between 1990 and 2008. Gasoline usage for passenger pur- models would not cover rural "attainment" areas, which are not required to conduct conformity analyses. 3 are still no national standards for GHE, the models do not poses rose 21 percent during the same period. Source: Table-101 Greenhouse Gas Emissions from Domestic Freight Transportation, pg. A-31 Methodology for Estimating Emissions of CH4, N2O, and Indirect Greenhouse Gases from Mobile Combustion and Methodology for and Supplemental Information on Transportation- Comment [JP1]: Related GHG Emissions Author: Please review this who sequence of text, source, table. Table F.1. Table F.1. Greenhouse Greenhouse gasgas emissions. emissions. You'll need to make an endnot the Source bit. It isn't clear wh table appeared in or who publis Greenhouse Gas Emissions from Domestic Freight Transportation (CO2 Megatons) how many docs are being cited of Methodology, etc.). The note indicate that all the foregoing te % Change based on this material. Mode 1990 1995 2000 2001 2002 2003 2004 2005 2006 19902006 Also, in Table F.1, delete the c You need an n.2 but not inside Does the whole Source para. go Truck 228.6 272.5 344.3 343.6 357.9 354.4 367.4 395.2 404.6 77% Rail Freight 34.1 39.6 44.9 45.5 45.6 47.0 49.8 50.4 51.5 51% Ships, Boats 32.8 40.1 50.6 29.8 47.8 20.7 29.5 33.2 30.2 -8% Source: EPA. As shown in Table F.1, the EPA report notes that the 77 percent increase in truck-related GHE resulted from a doubling of diesel fuel consumption by trucking during the time period. It reported diesel consumption by medium- to heavy-duty trucks increased from 18.5 billion gallons to 36 billion between 1990 and 2008. Gasoline usage for passenger purposes rose 21 percent during the same period.

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135 Transportation generates about 33 percent of all U.S. mation of particulates. Particulates are controlled because of GHE.4 About 66 percent of the transport-related GHE comes their ability to penetrate deep into the lungs and create nega- from passenger travel, about 25.3 percent from freight, and tive health effects. Carbon monoxide is a toxin particularly in the remaining from off-road sources such as agriculture or high-congestion locations. The effects of the control strate- mining.5 gies have been significant, with reductions of up to 80 percent USEIA predicts a gradual continued rise in transportation- in some of these transport-produced pollutants as shown in section energy use and a gradual rise in transport-related Figure F.1. GHE.6 It predicts that annual tons of CO2 related to transpor- These data provide a potential air-quality performance tation will rise from 1,948 million tons in 2005 to 2,145 mil- measure for these six pollutants. Performance measures using lion tons in 2030, or an approximate 10 percent increase. The these data can be produced regionally as part of the confor- increase is about .4 percent a year compared to an expected mity analyses or they can be aggregated nationally. In addi- energy-use increase of .7 percent. The lower rate of emission tion, 20-year forecasts for these emissions are produced for is attributed to improved emission-reduction technology. each non-attainment area's air-quality conformity analyses. Again, these data can be used to produce GHE perfor- Many air-quality measures can be calculated from basic mance measures for the freight system at a gross, national fuel data as shown in Table F.2, below. The EPA Emission level. Additional calculations could break out these estimates Factors web page7 notes that emission levels are generally cal- for state and regions. culated by a formula of : E = A EF (1-ER/100) Other Transport Emissions Since approximately 1970, various amendments to Where: E = Emissions the Clear Air Act have promulgated a series of emission- A = Activity Rate reduction strategies for the national vehicle fleet and its EF = Emission factor fuel. These strategies have been focused upon six primary ER = Overall emission reduction efficiency, % emissions, VOC, NOx, CO, lead, SO2, and particulates (PM). Lead was removed from fuel in the 1970s both because it Energy Use in Freight Transportation was a public health hazard and because it interfered with the vehicular catalytic converters that were an important USEIA produces a forecast of energy use for the transpor- emission-control strategy. NOx and VOCs are the precursors tation sector through 2030.8 This forecast serves, in effect, as a of ground-level ozone, or smog, which has been the focus leading indicator of fuel usage that can be used to extrapolate of significant emission-reduction efforts. Sulfur dioxide also a carbon footprint, emissions, and other related factors. The is a pollutant that contributes to "acid rain" and to the for- forecast for transportation addresses petroleum, natural gas, Transport Emissions 1970-2007 1.0 0.9 0.8 0.7 Percent 0.6 0.5 0.4 0.3 0.2 0.1 0.0 70 80 90 92 94 96 98 00 02 04 06 19 19 19 19 19 19 19 20 20 20 20 VOC NOX CO Figure F.1. Emission trends.

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136 Table F.2.Petroleum use for freight. Source: EPA, Table A-72, in Methodology for Estimating Emissions of CH4, N2O, and Indirect Greenhouse Gases, 2008. and electricity usage for the transportation sector. Again, as mance measures on the national level as well.9 Estimates can with other measures, it does not specifically address freight be made of fuel consumption for several types of U.S. com- but does so indirectly. The indirect forecast comes from fore- mercial truck operations through a national level analysis of casts for diesel usage, which can be assumed to be used pri- factors such as: marily for freight transport. USEIA predicts that transporta- tion sector energy consumption will increase at an average The effect of cargo tons per truck on fuel consumption; annual rate of 0.7 percent through 2030, which is significantly The effect of long-haul mileages driven by heavy trucks on lower than the 1.4 percent historic average annual rate from fuel consumption. 1980 to 2006. It attributes the lower rate of growth to vehicle fuel economy standards, slower economic growth, higher fuel The results of this analysis over a 20-year time period show prices, and lower demand. an improvement in efficiency measured in gallons-per-cargo Although light-duty passenger cars and trucks remain of ton-miles traveled. the largest consumers of energy, the largest rate of growth is Finally, industry-wide performance measures for emis- among heavy trucks. Heavy vehicles' use of energy will grow sions are calculated in Trucking Trends (thousands of short- from 18 percent of all transportation energy today to 20 per- tons) and address the following emissions types: cent of all transport energy in 2030, according to USEIA. Sulfur dioxide Nitrogen oxide Energy Price and Volatile organic compounds Efficiency Measures Particulate matter (PM-10) Energy is a large percentage of freight movement costs and is intuitively a greater cost as prices increase. Fuel prices are EPA produces fuel-use estimates for the major modes particularly important to the trucking and aviation modes, that are derived from FHWA, USEIA, and other sources (see although they are not insignificant to rail or water modes. Table F.2). either. For this reason, the trucking industry's consumption of fuel is an important element at both the national level and Hazardous Materials Releases within individual trucking operations. Two examples of such measures are the calculation of the quantity of diesel and Local and state governments are required to have systems gasoline consumed annually by the industry as a whole and in place to respond to hazardous material incidents because the basic analysis of energy performance (e.g., measures such such events often necessitate specialized equipment and as miles per gallon [mpg]). In fact, some trucking firms are greater expertise than standard highway incidents. Govern- so cognizant of energy performance that drivers are rewarded ment regulations also aim to decrease the number and sever- with fuel bonuses for attaining specific mpg levels, and driv- ity of hazmat incidents on highways. Public-sector program ers are trained to shift gears in a more fuel-efficient manner. goals therefore relate specifically to decreasing incidents and The ATA publication Trucking Trends offers basic indus- the effectiveness of incident preparedness and response; sev- try statistics related to fuel consumption, such as billions eral measures of the performance of public-sector entities to of gallons of diesel and gasoline used per annum as well as meet these goals are listed in the literature. comparisons of fuel consumption and vehicle miles trav- Regarding state-level activities, FMCSA10 identified several eled. Fuel efficiency is considered through freight perfor- outcome-based performance measures through a survey of

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137 state agencies that have authority over hazardous materials lowing measures (in addition to the number of serious transport, including: hazmat incidents): Measurement of Hazardous Materials Violations and En- Number of Hazmat Responders Trained; forcement Actions; Number of Emergency Plans Completed; Measurement of Severe Incident Trends; Number of Local Emergency Planning Committees Sup- Measurement of Hazardous Materials Carrier/Shipper ported; and Inspection Trends; Number of Training Exercises Conducted. Total Number of Hazardous Materials Incidents; and Budget/ Resources Record Trends. Finally, in response to federal regulations requiring hazmat security, FMCSA13 produced guidelines for the develop- At the federal level, USDOT's FY 2004 Performance Plan ment of comprehensive security plans for hazmat trucking assesses hazardous materials transportation safety through operations. Within these guidelines, it is suggested that per- one key measure: "the number of serious hazardous materials formance measures are put in place to assess hazmat car- incidents in transportation." 11 rier vulnerability levels as security plans are established and Additional measures are also employed by the fed- improved. Examples of such measures that are offered in eral government for program assessment purposes; the guidelines include changes in theft and property dam- USDOT's Hazardous Materials Transportation Safety-- age rates. Likewise, trucking companies that haul hazardous Emergency Preparedness Grants program, which aids materials have internal performance measures that rate the local hazmat responders, 12 is evaluated using the fol- outcomes of safety-related plans and procedures. Endnotes 9 Bertram, Kenneth M., D. Santini, J. Anderson, and A. Vyas. Trends in the Size Distribution, Highway Use, and Consumption of Gasoline and Diesel Fuels of 1EPA. Methodology for Estimating Emissions of CH4, N2O, and Indirect Green- the U.S. Commercial Truck Fleet, 19772002, presented at the Transportation house Gases from Mobile Combustion and Methodology for and Supplemental Research Board 87th Annual Meeting, Washington, D.C., 2008. Information on Transportation-Related GHG Emissions, 2008. 10FMCSA. Guide to Developing an Effective Security Plan for the Highway 2EPA. Methodology for Estimating Emissions and Methodology for and Supple- Transportation of Security Materials, prepared by Battelle and TotalSecurity. mental Information on Transportation-Related GHG Emissions, 2008. US, Washington, D.C., 2003. http://www.fmcsa.dot.gov/safety-security/ 3 EPA, Table-101 Greenhouse Gas Emissions from Domestic Freight Trans- hazmat/security-plan-guide.htm (accessed Feb. 18, 2011). portation, Methodology for Estimating Emissions of CH4, N2O, and Indirect 11USDOT. Hazardous Materials Safety, 2003. http://www.dot.gov/PerfPlan2004/ Greenhouse Gases from Mobile Combustion and Methodology for and Supple- safety_hazmat.html (accessed Feb. 18, 2011). mental Information on Transportation-Related GHG Emissions, p. A-31. 12 Office of Management and Budget. Detailed Information on the Hazardous 4AASHTO. A Primer on Transportation and Climate Change, 2008, p. 4. Materials Transportation Safety--Emergency Preparedness Grants Assessment, 5 EPA. Table A-72 in Methodology for Estimating Emissions of CH4, N2O, and 2008. http://www.phmsa.dot.gov/staticfiles/PHMSA/DownloadableFiles/ Indirect Greenhouse Gases, 2008. Files/HMEP_final_report_10_11_05.pdf (accessed Feb. 18, 2011). 6USEIA, Annual Energy Outlook 2008 with Projections to 2030: Growth in 13 FMCSA, Hazardous Materials Division. Hazardous Material Compliance Transportation Energy Use Is Expected to Slow, 2008. Effectiveness Study, prepared by Battelle Memorial Institute in collabora- 7 EPA, http://www.epa.gov/ttn/chief/ap42/index.html (accessed May 25, tion with the Commercial Vehicle Safety Alliance, Washington, D.C., 2003. 2010). http://www.fmcsa.dot.gov/safety-security/hazmat/hazmat-es-finaldoc.htm 8USEIA. Growth in Transportation Energy Use Is Expected to Slow, 2008. (accessed Feb. 18, 2011).