Wisconsin Diesel Truck Idling Reduction Program

Idling Reduction Workshop State Energy Office June 10, 2014

Wisconsin Diesel Truck Idling Reduction Program

• Assist motor carriers in the purchase and installation of

idle reduction equipment • Cost sharing program to reduce diesel truck idling • The primary goals:

• Reduce air pollution emissions • Reduce fuel consumption • Promote field testing

Why was the Program Created? • Trucking Industry worked with the state legislature to

address the: • Rising fuel costs • Anti-idling laws throughout the country • A need to field test before making the investment • Motor carriers pay a significant amount of fuel and road

taxes; return on investment

Idling Reduction Program

• Created by the Governors Budget Bill, 2005 Wisconsin Act 25 – nine years of success!

• WI motor carriers that own and operate their truck tractors are eligible for up to 50% reimbursement of the cost of the unit and installation

• Long-haul diesel trucks with a sleeper

What is the Funding Source? • Petroleum Environmental Clean Up Fund Award (PECFA)

–funded by the states petroleum inspection fees (PIF) of $0.02 gallon

• Funding is appropriated in the states biennial budget and has a sunset date of June 30, 2015

• SEO is working to remove that provision of the statute

Why Use Idling Reduction Technologies? • In Wisconsin more than 13,000 long-haul heavy-duty

trucks idle overnight for required rest stops at least some fraction of the time, using almost 14 million gallons of fuel per year.

• Can be reduced without compromising driver comfort or vehicle equipment operations.

• Provides significant fuel savings. Reducing fuel consumption will minimize the financial impact of costly diesel fuel to businesses as well as reduce the effects of diesel fuel pollution, which can negatively impact human health.

Application Process • Funding Allocations – Large and Small fleets • Eligibility • Tiered system • Technology types – Research • Applications are accepted for six weeks • Bids from vendors • Average the cost of unit and installation • Lottery • Reporting

Allocations • Allocations for small fleets. The department may

annually allocate up to 25 percent of the grant funding, for awarding to applicants who own and operate 50 or fewer truck tractors

• In any fiscal year the department may not pay to any one applicant more than 20 percent of the amount appropriated

• $1 Million available • Up to 50% of the cost of the unit and installation

Who is Eligible to Apply? • Applicants must meet certain requirements:

• Common, contract or private motor carrier transporting freight • Headquartered in Wisconsin

• Applicants principal central administrative office is located in WI, or • Applicant business pays at least 80% of its payroll to employees

employed in Wisconsin

• Owns and operates their truck-tractor • Leased on vs. Leased to?

• Complies with grant conditions • Must pay at least 50% of the cost of the unit and installation

How Many Units Am I Eligible For? *Only trucks with post-1998 diesel truck engines are eligible. Applicant’s Number of Eligible

Trucks Maximum Number of Units Funded

1 1

2 to 10 2 11 to 50 2 or 10% of the applicants eligible

truck tractors* 51 to 250 6 or 7% of the applicant’s eligible

truck tractors* 251 to 500 18 or 6% of the applicant’s eligible

truck tractors* 501 to 2,500 30 or 5% of the applicant’s eligible

truck tractors* Over 2,500 125 or 3% of the applicant’s eligible

truck tractors *Whichever is greater

Types of Idling Reduction Technologies • APU – Auxiliary Power Units • BP – Battery Powered Units • ERS - Energy Recovery Systems • DFH- Direct Fired Heaters • Combinations (must be installed simultaneously) • SmartWay Verified Technologies List (recommend but

not required) • http://www.epa.gov/smartway/technology/idling.htm • Vendor Quote form is included in the application and

must be filled out and signed by the vendor

Guidelines…

• Purchases must occur after funding has been received by the State Energy Office

• Anticipated funding on July 1, 2014, purchase and installation must occur on or after this date

• $1 Million available with separate ‘pots’ of money for small fleets vs. large fleets

• Reimbursement for up to 50% of the cost of the unit and installation

• Applications must be completed and received by the deadline date

Awards from 2007-2012 • More than 2,143 idling reduction technologies have been

funded • $7.8 million dollars has been allocated to participating

fleets • Each year more than 1 million gallons of diesel fuel are

saved • Environmental health • Human health

Fiscal Year Fleet Size Units Award AmountFY07 Large Fleet 185 747,274.64$ FY07 Small Fleets 49 252,725.36$

Total 2 1,000,000.00$ FY08 Large Fleet 431 1,469,092.17$ FY08 Small Fleets 121 457,788.66$

Total 552 1,926,880.83$ FY09 Large Fleet 130 482,170.10$ FY09 Small Fleets 116 442,105.09$

Total 246 924,275.19$ FY10 Large Fleet 456 1,593,316.71$ FY10 Small Fleets 106 406,683.29$

Total 562 2,000,000.00$ FY12 Large Fleet 211 756,556.88$ FY12 Small Fleets 60 242,833.44$

Total 271 999,390.32$ FY13 Large Fleet 223 748,402.35$ FY13 Small Fleets 55 251,597.65$

Total 278 1,000,000.00$ Grand Total 2,143 7,850,546.34$

Diesel Truck Idling Reduction Grant Program Award Totals

Application Process • Checks and Balances:

• After all of the applications are received each application is examined for:

• Completeness • Eligibility (WI based/ # of Employees) • Department of Financial Institutions • Safety & Fitness Reporting System • Trans Union financial reports

• state/federal taxes owed • child support • Bankruptcy

• Maximum awards are determined for each type of technology

Awards • Computer-based lottery system is generated

• Each eligible truck gets a ‘ticket’ in the lottery • Utilizing the tiered system fleets are awarded • Utilizing the 20% maximum cap

• As funds are declined or only partially used, those funds are returned to the “pot” and redistributed in a later lottery

• Sometimes five lotteries per year • Purchases made after July 1, 2014 are eligible, even if the award

happens after the purchase

• Preliminary Awards • $1 million will be awarded, 30 days to sign the contract, 120 days

to install the technology • Subsequent lotteries allow less time for installation as the

program year progresses

If Awarded: Reporting • Grant recipients are required to submit a baseline, six, and twelve

month report provided by the department • The baseline and twelve month reports will include an engine

download (ECM) • Data requested includes

• Miles per gallon • Idling time • Vehicle usage • Drivers opinions

• Compare the baseline report (twelve months of data prior to installation) to the twelve month report (twelve months of data after the installation)

In Summary • Provides a financial incentive for trucking companies

to experiment with idling reduction units • What have you got to lose? Apply!

• Funding has been approved in the state biennial budget, the application will become available on or around July 1, 2014

• Sign up on our website to be notified of when the application will be available

State Energy Office The State Energy Office is committed to supporting Wisconsin's policy of assisting in the deployment of reliable, balanced, cost-effective and environmentally responsible energy projects. The

Office assists business, industry, and local governments with information and financial assistance with clean energy projects.

www.stateenergyoffice.wi.gov/dieselgrantprogram Jean.Beckwith@wisconsin.gov

Ph:608-261-2517