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Conference Proceedings

2008 Rail ConferenceMay 6-7, 2008
Toronto Marriott Bloor Yorkville Hotel
Forest Hill Ballroom

Table of Contents

Background

The 2008 Rail Conference, 'On Board for a Cleaner Environment' took place in Toronto, Ontario on May 6-7, 2008. The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities opened the conference with an announcement that the Government of Canada will invest $6.1M over two years to help the freight transportation sector limit the emission of greenhouse gasesi (GHG) and other air contaminants.

This conference was held under the terms of the Memorandum of Understanding (MOU) signed by Transport Canada (TC), Environment Canada (EC) and the Railway Association of Canada (RAC). The MOU established a framework for reducing air pollution and GHG emissions from railway locomotives operated by Canadian railway companies in Canada until regulations are in place in 2011. Some of the initiatives that the railways agreed to and have been working on include adopting voluntary targets to reduce GHG emissions and preparing an action plan for further GHG emissions reductions.

The event was held as a forum to exchange information on the newest approaches and best practices for reducing GHG and air pollutant emissions from rail transportation sources. Seven panels of experts representing a broad range of stakeholders gave presentations ranging from: government program overviews (both Canada and the United States); new technology design, development and demonstration reports; voluntary carbon markets; and what's in store for the future.

This report will provide a brief summary of each conference presentation.

PANEL 1 - Overview of the Railway Sector: Setting the Context

Since 1990, rail sector activity has increased while its emissions intensityii has decreased. In order to maintain this trend, the industry can take advantage of various programs and services to help it adopt new emissions-reducing technologies. The panel presented a broad outline of Canada's current status with railway air contaminants and emissions, and the governmental priorities and programs that are in place to deal with these concerns.

The Economic and Environmental Context
Bruno Jacques, TC Director of Environmental Analysis and Research provided an overview of emissions trends in the transportation sector and the challenges that lay ahead.

Although the rail sector creates a very small portion of emissions in Canada, there is still work to be done to reduce emissions. For example, transportation is only responsible for 3.2% of all SOxiii (sulphur oxide) emissions of which rail is only 0.3%. As a sector, transportation grabs a larger share of NOxiv (nitrogen oxides) and GHGs.

The transportation sector accounts for a full 50% of NOx emissions, of which rail produces 5%. However, NOx emissions are forecasted to decrease until at least 2015 while GHGs are expected to increase at least until 2020.

These growth trends can be calculated by a formula called the Kaya Identity, which measures the human impact on climate change in the form of GHGs. The equation is: GHG = population x Gross Domestic Product (GDP) per capita, x energy use per unit of GDP, x emissions per unit of energy consumed.

The government's objectives for 2012 to 2015 include a GHG reduction of 20% compared to 2006 levels, and a 60 to 70% reduction by 2050.

Partnering for Real Results
The next presentation came from Rick Whittaker, Vice President of Investments at Sustainable Development Technology Canada (SDTC). The SDTC was created to build partnerships with the private sector to develop new technologies for both economic and environmental benefits that will help build a strong and sustainable development technology infrastructure. With $1.05B in funding from the Government of Canada, it is a not-for-profit, non-share Capital Corporation operating as an arm's length, independent organization.

The SDTC operates two complementary funds that address different gaps in the innovation chain. The NextGen Biofuels Fund helps establish first-of-kind, large demonstration-scale facilities for producing next generation renewable fuels and co-products. The SD Tech Fund supports the late-stage development of technology solutions addressing climate change, air quality, clean water and clean soil.

Mr. Whittaker noted that the greatest challenge faced by technology providers is finding financing for each stage of development. SDTC steps in at the critical point where there is most often a funding gap: when a new technology moves from development into the demonstration stage. SDTC funding stops just short of project profitability, but is essential to fast tracking these innovations to the market.

One recipient of the SD Tech Fund is the Railpower Technologies Corporation, which is demonstrating an ultra-energy efficient switcher locomotive powered by custom-designed batteries kept at full charge by a computer-controlled, smokeless diesel generator.

These programs offer an excellent opportunity to promote the development and uptake of new technologies to help reduce GHG emissions and air contaminants. SDTC invests in all major economic sectors, and the major focus for its SD Business Case (a strategic priority-setting initiative) will be on transportation.

Opportunities to Reduce Air Emissions from Freight Transportation
Catherine Higgens, TC Director General of Environmental Programs, noted that freight GHGs are growing faster than the GDP. Although Canada's transportation system is a major enabler of economic activity, the challenge will be to separate economic growth from the associated rise in air emissions, particularly as transportation emissions are projected to increase by 24% from 2005 to 2020.

Canada is a trading nation whose exports account for 42% of our GDP. The US is currently our biggest trade partner, but the Asian market is growing: Canada imported more than $71 B of goods from Asian markets in 2006, the second highest value of imports behind the US. In addition, Asia is Canada's third market for exports, with the value of goods exported up to $29 B in 2006. While addressing the environmental pressures caused by transportation, we have to make sure that the system continues to serve its critical economic purpose.

According to the most recent federal government Natural Resources Canada (NRCan) Outlookv , transportation continues to have the highest emissions of all sectors. Within the transportation sector, freight movement is expected to increase significantly, with the largest growth in the aviation and trucking sectors.

TC's approach to reducing emissions is based on the entire transportation system and is multimodal, covering trucking, rail, air and marine. The tools we are using to achieve results include:

  • Voluntary agreements to manage issues in the short to medium term;
  • Regulations to provide longer-term certainty;
  • A broad range of program initiatives; and
  • Economic instruments such as trade credits, offsets, taxation, etc..

The government's ecotransport Strategy has approximately $2B in program measures across all sectors in Canada to support and accelerate innovation, technology, sustainability best practices and knowledge transfer.

The ecotransport Strategy is an important part of the federal government's ecoaction plan. Its goal is to reduce the environmental impacts of the transportation system as a whole, while securing Canada's future prosperity and competitiveness and making critical transportation infrastructure economically and environmentally sustainable.

As part of this strategy, the ecofreight program exists to reduce the growth of GHGs and other emissions from the freight sector. Its goal is to tackle some of the barriers to emission-reducing technologies and innovation in freight movement. The three contribution programs are the Freight Technology Demonstration Fund, the Freight Technology Incentives Program and the Marine Shore Power Program.

The Freight Technology Demonstration Fund provides the freight transportation industry with cost-shared funding for real-world testing of technologies that have the potential to reduce fuel consumption and GHG and air polluting emissions.

The Freight Technology Incentives Program provides cost-shared funding to support the purchase and installation of proven technologies throughout the freight transportation system that can reduce fuel consumption and GHG and air polluting emissions.

The third contribution program is the Marine Shore Power Program, which provides companies at Canadian ports with funding for technology trials and real-world testing of marine shore power technology for ships to reduce idling while docked at port. Canadian ports and terminal operators can apply for funding to install and test this technology.

The first round of the freight programs generated 110 applications. A Review Committee composed of 15 independent members agreed on 23 proposals (eight for the Freight Technology Demonstration Fund for a total of $2.4M and 15 for the Freight Technology Incentives Program for a total of $3.7M). The total funding for Round 1 was $6.1M. The second round for these contribution programs and the first round for Marine Shore Power will begin in the summer of 2008.

The Shippers Awareness initiative is designed to enhance shippers' understanding of the environmental impacts of their business decisions and improve uptake of transportation alternatives available, with the aim of reducing GHGs and air pollutant emissions. The target audience includes shippers, freight forwarders, brokers, logistics service providers and other transportation service clients.

A relatively new TC initiative, Shippers Awareness draws, in part, on the successful work of the U.S. Environmental Protection Agency (EPA) SmartWay Transport Program that engages leaders in more sustainable practices for moving goods. This initiative works more directly with the users of Canada's freight system to provide tools, information and support that can help them improve their transportation decision-making and increase their adoption of more sustainable modal choices and practices.

Although sustainable freight transportation won't be achieved overnight, technology is available now to begin incremental changes and to help us decouple economic growth from emission growth in the freight sector. We need to develop a better system-wide perspective to harness the full technology potential and reap system-wide efficiencies as modes interact together.

These TC initiatives, voluntary agreements such as the RAC MOU and other tools such as trade credits and carbon offsets, will help to reduce emissions and provide a stable business climate.

PANEL 2 - Voluntary Approaches and Regulations

Panel 2 speakers provided updates on emissions regulations on both sides of the border.

Update on Rail Emissions Regulations
Luc Bourdon, TC Director General of Rail Safety, provided an overview of locomotive emissions and a brief history of the MOUs between TC, EC and the RAC. The current MOU was developed under the umbrella of the Clean Air Regulatory Agenda, which provides a nationally consistent approach to reducing air emissions. The work being done now is voluntary, but will lead to TC regulations in 2011.

The Railway Safety Act gives TC jurisdiction over railway operations and railway companies that hold a Certificate of Fitness. The new regulations cover Criteria Air Contaminantsvi (CAC) and GHGs and will apply to federally regulated railways, with exemptions for some smaller Short Lines. Although the regulations will not apply to suppliers, the railways will impose their needs on the manufacturers.

The regulatory process includes stakeholder consultations (2009-2010) and the public can make comments after the regulations are published in Canada Gazette I (2010). Canada Gazette II will publish the regulations in their final form in 2011.

Efforts will be harmonized with work in the U.S. and will include industry standardization of equipment and operating practices, involving the use of the EPA guidelines for equipment. The 2007 MOU includes a voluntary compliance with EPA by major Canadian railways.

The highly successful MOUs have already prepared our industry for work currently being done on emissions and serve as an excellent lead-in to the upcoming regulations.

Canada Railways Initiatives: Improving Environmental Performance
Mike Lowenger, RAC Vice President of Operations and Regulatory Affairs, agreed with the remarks from Panel 1, emphasizing that railways are very important to Canada's economy. He then explained the role and responsibilities of the RAC as Canada's rail industry representative, which include collecting data and speaking on behalf of 56 freight, commuter and inter-city and tourist railways.

Mr. Lowenger provided a broad overview of Canada's railways with these facts: rail moves 65 M commuters and inter-city travelers, and 243B revenue ton-milesvii (or about 2/3 of domestic and international freight) annually. Despite this, rail only accounts for 3% of total GHG emissions from transportation sources, a small footprint for the level of service provided. Nevertheless, it is essential to continue work on emissions reductions and compliance.

The RAC has released a GHG calculator, intended to provide shippers with an estimate of the GHGs associated with moving their goods by Class 1, Short Line railways or by heavy trucks. The calculator will help shippers manage their emissions reduction cap, whether voluntary or regulated.

Mr. Lowenger outlined the RAC's five pillars for improving environmental performance:

  • Public awareness: with the environment a top public policy issue, industry and governments are responding with education (workshops, awards), communication initiatives, and programs such as changes in the Capital Cost Allowanceviii .
  • Investment in technology and infrastructure: railways are purchasing or retrofitting locomotives to be EPA-compliant, as well as testing hybrid locomotives and switchers under programs like TC's ecofreight program. Railways also invest over $2B (20%) of their annual revenue in their infrastructure.
  • Operational improvements: these initiatives include co-production arrangements, sharing tracks, idling control devices, track lubrication, and training personnel in best practices.
  • Market-based solutions: the principle market-based initiative is the nascent emissions credits and trading system. Credit methodology and standardized GHG calculation models are still under development around the world, but many provinces, states and nations are participating in this new market.
  • Voluntary approach to emissions reductions: RAC members took part in the highly successful, 10-year emission-reporting agreement from 1995 to 2005, and are participating in the 2006-2010 MOU, leading up to regulations in 2011. The rail industry is managing its carbon footprint well and is one of the few industries that produce an annual emissions reduction progress report.

The U.S. EPA's New Program to Reduce Locomotive Emissions
Donald Kopinski, U.S. EPA Senior Project Manager, Office of Transportation and Air Quality, briefly outlined the EPA's National Clean Diesel Campaign that covers autos, heavy-duty trucks, and locomotive and marine diesel and non-road diesel engines. He stated that the EPA worked closely with all of its stakeholders, noting that collaborative rule making can sometimes produce a complicated picture, but the ideas that come out of the process make it worthwhile.

The rail section of the campaign is a comprehensive three-part program that sets standards for the remanufacture of existing locomotives (beginning this year). This is an important piece of the program, as a sizable part of the fleet gets remanufactured every year. The other parts of the program apply to EPA's Tier 3ix standards beginning in 2012, and Tier 4 starting in 2015. All three parts of the program include idle emissions controls and automatic stop/start on engines. These rules will apply to Canadian and Mexican locomotives that are used well beyond border traffic; while any that do not meet these standards will require prior approval to operate in the US.

Mr. Kopinski summed up his presentation by noting that although the annual costs will be high, the benefits ratio is great, particularly in the health sector.

Railroads - The Environmentally Friendly Mode of Transportation
Bob Fronczak, Association of American Railroads (AAR) Assistant Vice-President, Environmental and Hazmat Safety and Operations, noted that railroad fuel efficiency in revenue ton-miles has increased by over 85% since 1980. Currently, railroads can move a ton of freight an average of 436 miles (700 km) on a gallon (3.78 litres) of diesel fuel, while a truck can move it only 100 miles (160 km). Railroads have invested several billion dollars to acquire close to 7,000 fuel-efficient and less polluting locomotives. Rail's limited land use is one of the industry's great benefits, as it uses far less land than highways or airports. Two railroads can carry the same number of people as 16 lanes of highway, while using 59 feet (18 metres) of right-of-way, as opposed to 400 feet (122 metres) for highways.

The AAR signed on as an affiliate with the EPA's SmartWay program in 2005, and has agreed to measure fuel efficiency in gross ton per mile gallon; to submit an action plan; and to deliver an annual progress report on progress.

Improvements include adopting idle reduction technology, getting more energy efficient locomotives, using leader technology, as well as pilot testing the new Consist Manager system that operates a train in the most efficient manner.

Operational changes include training engineers in energy conservation, adopting a shutdown policy where applicable, and offering a volunteer program that compares an engineer's fuel consumption performance against engineers in the same territory.

Mr. Fronczak concluded by stating that railroads are ready to be part of the solution to the air emissions problem.

PANEL 3 - Controlling Air Emissions

Panel 3 speakers reported on real-life applications and results of railroad voluntary emissions control.

Regulatory and Commercial Control of Railway Air Emissions: Overview and Developments at CP
Dr. Malcolm Cairns, Canadian Pacific (CP) Director of Business Research, explained the regulatory side of rail air emissions before describing CP's environmental developments. Dr. Cairns noted that reducing idling is the number one priority for CP because locomotives are idling approximately 50% of the time. About three-quarters of CP's current fleet have been retrofitted with an automatic shut down device when ambient conditions allow. The device has saved between 40 and 160 litres of fuel per day, per locomotive, which has reduced both GHGs and CACs. Automatic start/stop systems will be included in all new locomotives.

Locomotive fleet renewal is another major CP initiative, as one-quarter of the fleet has been upgraded to the EPA's Tier 2x standard. New locomotives will be coming in 2008, with the increase in the Capital Cost Allowance.

Changes in operational practices are widespread and include improved locomotive maintenance and locomotive handling. Some handling improvements include: using pacing charts, restricting train speed to 45 mph for non-expedited traffic and reducing use of power braking to encourage dynamic braking.

CP has produced route-specific, Train Handling Guideline books that help crews make decisions that result in fuel efficiencies. If an analysis of a locomotive event recorder proves there is improved fuel consumption, it can result in bonus pay for locomotive engineers. CP has also developed an incentive program for employees with "no exceptions" to safe and efficient train handling.

Other operational practice improvements include changing out the locomotive fuel injectors every three years. This has resulted in a 1% decrease in fuel consumption, which has more than covered the costs of the change out, as well as reducing emissions.

Another project that has brought many benefits was the addition of diesel oxidation catalysts to the locomotive engine. A nearby factory's complaint about fumes triggered the project. The project resolved the issue while also reducing emissions.

Recent and upcoming CP initiatives include installing 300+ lubricators to reduce rail/wheel friction. The benefits have major implications for improved safety, reduced wheel wear and increased capacity. This has lowered emissions and fuel consumption, saving more than $5M a year.

Another CP initiative is an integrated operating plan that will put cars with similar destinations into blocks. This might mean a delay before a car leaves for its destination as it can wait for a block to join, but it saves a lot of time in the switching yards since fewer actions are needed to get a car to its destination. Other initiatives include co-production agreements and track sharing with CN.

Locomotive Emissions Testing
Malcolm L. Payne, Engine Systems Development Centre (ESDC) Director of Technology and Business Development, demonstrated how emissions reductions are measured. The ESDC facility is now part of (CAD) Railway Industries Ltd. which greatly increases their testing capacity and diesel engine performance evaluation capabilities.

The test facility includes: two test cells consisting of load banks and auxiliary systems, one engine and locomotive. Emission testing is as per EPA standards. 40CFR part 92 and 1033.

Currently, the RAC MOU is the emissions guideline being followed in Canada, but in the future Mr. Payne expects regulations to harmonize with the U.S. EPA.

Mr. Payne concluded by noting that both ESDC and CAD Railway Industries have a corporate commitment to be the Canadian source of medium-speed diesel engine and locomotive research and development.

Please note that CAD Railway is now CAD Railway Industries Limited.

Energy Efficiency at Quebec Railway Corporation - Greenhouse Gas Reduction Project
The Quebec Railway Corporation (QRC) owns five railways, one rail ferry and is present in four provinces: Quebec, Ontario, New Brunswick and Nova Scotia. With over 800 miles of track, the QRC is a leader in regional railway transportation. Marc Laliberté, QRC President and CEO, made it clear that although short lines do not have the same resources as a Class 1, they can still do their part in reducing emissions by reducing fuel consumption.

The Greenhouse Gas Reduction Project began in 2003. In order to change their processes from an environmental perspective, QRC developed environmental policies to help prevent damages at the source, to reduce and recycle materials and to raise employee awareness.

Some project initiatives include optimizing train speeds and developing an operational plan to save fuel. The QRC also worked with TC's Freight Incentives Program (FIP) to convert six older locomotives to the SmartStart system.

These and other strategies resulted in saving 6,265,189 litres of fuel, which represents 19,224 tons less carbon dioxide (CO2). He concluded by emphasizing the fact that the project's benefits are not only environmental, but financial as well.

The Environmental benefits of VIA's New Capital Program
Roger Hoather, VIA Rail Canada (VIA) Director of Capital Programs, said that their approach to reduce their environmental footprint is to use less fuel and electricity. VIA's Capital Program has approval to overhaul 54 locomotives and 98 rail cars, to undertake some infrastructure projects in the Quebec/Windsor corridor and to design and build a prototype Transcontinental car.

The decision to rebuild equipment has saved 5,000,000 litres of fuel per year - 8% of VIA's annual requirement. These savings also translate into fewer air contaminants and emissions. More specifically, the rebuild of the 54 locomotives has saved 21,000 tons of CO2 and the rebuild of the 98 rail cars has saved 14,700 tons of CO2. The cost of purchasing new locomotives and cars would have been double the cost of the rebuilds that have added 20 years of life to the existing inventory.

PANEL 4 - Reducing Emissions in the Supply Chain

The moderator, Jay Nordemstrom from the Canadian Association of Railway Suppliers (CARS), introduced the panel by saying, "No company here today thinks that its carbon footprint begins or ends with its own operations." This panel provided an overview of intermodal freight transportation and the work being done to address emissions throughout the supply chain network.

A Vibrant Transport Network; A Cleaner Environment; Intermodal's future in a carbon- regulated world
Douglas Rubin, Moffat and Nichol Senior Economist, Surface Transportation, quoted studies that indicate intermodal rail is up to three times more efficient than truck transportation for freight, particularly for longer hauls. Profitability in the sector is driving investment into services and terminals. There are some questions as to whether being emissions-efficient is of universal concern. However, as corporations and governments want to be seen as 'green', work on reducing emissions will continue. The growing offset market is another financial incentive to continue reducing emissions.

Railways and the Environment: The Shipper's View
Bob Ballantyne, Canadian Industrial Transportation Association (CITA) President, offered a brief overview of the organization. Its 116 members purchase over $4B of transportation services from all industrial sectors every year. The results of CITA's Benchmarking Survey indicated that there are two principal concerns for a shipper: price and service. Considering these priorities, where do environmental considerations come into play? Although many companies now have environmental management plans, price and service will always take priority over environmental concerns. However, shippers would take reduced GHG emissions into consideration when selecting a transportation service provider, if there were financial incentives.

Mr. Ballantyne pointed out that although rail sector GHG emission levels were lower than those in the trucking sector, Less-Than-Truckload, intermodal marine and intermodal rail rated the lowest in the on-time service rating in the survey. Service reliability, limited routes, transit time and the lack of investment in equipment and terminals will continue to be barriers to a greater modal shift to rail.

Practical Solutions
Robert Bryson, Parrish & Heimbecker (P&H) Director, Eastern Canadian Grain Operations, gave his views as a purchaser of freight transportation services. He began by stating that P&H worked hard to reduce energy use, and thus energy costs, not just for environmental reasons, but because of the opportunity for profit it offers.

The company has taken a number of steps to reduce transportation costs. For shipping, they use multimodal (marine and rail) for long haul, and trucks as the primary transport for short-haul. Trucks are used in off hours - generally midnight to 6am - to avoid time delays and the use of extra fuel caused by idling in heavy traffic.

He noted that a shift in modes could make it possible to reduce energy use. For example, P&H are taking advantage of backhaul opportunities, as well as combining customers to increase the critical mass of the freight.

High Performance, Ultra-Clean Locomotives
José Mathieu, Railpower Technologies Corporation President, stated that Railpower offers technically advanced and economical products that can be customized to customer requirements. Advantages of their locomotives include:

  • 65% adhesion improvement
  • Fleet optimization - a one for two replacement with their technology
  • Up to 70% fuel savings
  • Up to 90% reduction in NOx
  • Up to 90% reduction in noise
  • Less maintenance and overhaul costs

Railpower has also developed the ecoCrane, using the Green Goat technology that offers 80% fuel savings and 90% emissions reductions.

PANEL 5 - Emissions Trading and the Rail Sector

Transportation is not currently covered in the proposed and existing emissions trading system (ETS) entities. Transportation could be the origin of some credits from offset activities, but protocols would have to be altered and approved by the appropriate authorities. This panel explored the current state of regulations, as well as a U.S. railroad's experience with the Ontario Emissions Trading System.

Turning the Corner: Regulatory Framework for Industrial Greenhouse Gas Emissions
Lynda Danquah, EC Head of Trading Policy, gave an overview of the compliance mechanisms that would be available to regulated entities to meet their legal obligations under the proposed federal GHG regulations.

The Regulatory Framework for Air Emissions was made public in April 2007, with further details about GHGs announced in March 2008. Some ways the Regulatory Framework would allow regulatees to comply would be to:

  • achieve in-house reductions
  • contribute to the Technology Fund (this option would end by 2018)
  • retire tradable units

The Offset System would provide an incentive for GHG reductions outside of regulated activities by issuing tradable offset credits that could be used to help regulatees meet their compliance obligations. Project proponents would have to demonstrate that they had met all Offset System requirements in order to be eligible for offset credits.

The development of quantification protocols and systems for registration, reporting and verification of Offset Credits was well underway. Project registration was expected to begin in the fall of 2008, which would mean that the first credit issuance could be as early as January 2009.

Examples of transportation project types that could be considered for domestic offsets include locomotive and truck idle reduction programs, intermodal shifts or a hydrogen fuel-injection project. Challenges would come in the form of record keeping, emissions monitoring and making sure that reductions are incremental to regulatory requirements.

The UN's Clean Development Mechanismxi had two transportation projects registered as of October 2008: the development of a rapid-transit system in Columbia, and upgrades to metro cars in India. Certain certified emission reductions from the Mechanism could be used for compliance with Canadian GHG regulations and for compliance in emissions trading abroad. The Canadian government plans to explore other international possibilities, such as linking with U.S. trading systems at the state/regional or national level.

Alberta and the Environment: Opportunities for Emissions Trading
Andy Ridge, Alberta Environment (Government of Alberta) Climate Change Unit Lead, noted that as North America's energy supplier, Alberta has a strong and growing export economy as well as an ongoing commitment to environmental stewardship. The province's 2008 Climate Change Strategy proposes to cut emissions in half by 2050.

Alberta's Specified Gas Emitters Regulations are the first of their kind in the world. The regulations apply to all facilities that release over 100,000 tons of CO2 per year. They outline the framework for setting targets and how compliance can be achieved.

Quantification protocols, the result of extensive consultation, help establish parameters to ensure that real reductions have occurred. Verified reductions can be bought and sold through bilateral contracts. The Credit Registry helps to facilitate trades, but is not involved in the trading.

As an alternative to purchasing credits, heavy emitters can pay into a climate change fund. Some of this money will go into a technology development fund that will help the push towards new emission reducing technologies.

Locomotive Emissions Reduction Credits Utilizing Ontario's Emissions Trading System
Carl Gerhardstein, CSX Director, Environmental Systems, gave an overview of the CSX Corporation. As one of seven Class 1 railroad companies in North America, CSX has approximately 3800 locomotives, 34,000 employees, and 22,000 miles of rail network. It runs over 1000 trains per day. CSX is making continuous improvements, such as longer trains and better tracks, and like CP, it is developing computer-generated driver guides that will improve fuel efficiency.

The CSX network serves 23 states, the District of Columbia and two Canadian provinces. It is eligible to take part in the Ontario Emission Trading System. Using a locomotive idle reduction example, CSX reduces NOx by an average of 961 to 1361 grams for every hour of shutdown. The credits earned must be verifiable and quantifiable, and can only be sold within one program.

Mr. Gerhardstein noted that among the many benefits of emissions trading, one of the most important is that it can accelerate the adoption of new technologies. CSX has invested over $1B to upgrade its fleet, and by 2009, it will have provided upgrades to over 1200 locomotives to reduce fuel consumption by 9.6M gallons.

Emissions Trading and the Transportation Sector
Erik Haites, Margaree Consultants Inc. said the current trend is to cover transportation emissions in GHG trading programs through the carbon content of fuels. Offset trading programs for GHGs and criteria air contaminants focus on stationary sources. The prospect for future offsets in the transportation sector will be small. Currently, the locomotive idling offsets in Ontario are the only rail offsets anywhere.

As the U.S. EPA regulates criteria contaminant emissions for engines including locomotives, perhaps the desire to link with U.S. programs could lead to including the transportation sector in Canadian programs.

PANEL 6 - Technological Advancements in Passenger and Freight Rail Transportation

Major Canadian and US railroads shared information on new technologies and best practices to reduce emissions. Rob McKinstry of the Railway Association of Canada moderated this panel.

Reducing Greenhouse Gas in the Commuter Environment
Peter Lloyd, GO Transit Manager of Rail Equipment, noted that the company's experiment of offering their services as an alternative to Highway 400 is expected to reduce traffic by 40M car trips per day, per person, every year.

GO Transit is pursuing other efficiencies such as:

  • putting trains up overnight in communities to avoid the deadhead trip at the end of the day's services. Their locomotives are Tier 2 compliant and 8% more fuel-efficient than the last generation.
  • switching to LED lighting which is brighter, lasts longer and less prone to vibrations than incandescent lighting.

Other efficiencies include regenerative braking. He described the Lakeshore line in Toronto where a locomotive can use up to 50 litres of fuel to get up to speed between stops that are five to seven minutes apart. Brakes need to be applied as soon as the desirable speed is reached.

Although emissions reductions and efficiencies are working well, GO needs more capital and experimental technology to achieve further reductions.

How Advancements Can Benefit Freight and the Environment
Normand Pellerin, Canadian National Railway (CN) Assistant VP, Environment, gave a brief history of the company. Following its privatization in 1995, CN began to acquire other railroad companies so it could ship all over North America and satisfy its customers' shipping needs.

He noted that being efficient means reducing the carbon footprint through a variety of measures, including comprehensive communications with customers to create more options for their shipping needs without making unnecessary runs. The most efficient system of all is using rail for long haul, and trucks for short haul, using hubs throughout North America. This emphasizes a real need to create partnerships with the trucking industry. Ideally, if a shipper can get credits for selecting the lowest GHG emitters, then it is a win-win situation for everyone.

Engines of Change
Michael Iden, Union Pacific Railroad (UP) General Director, Car and Locomotive Engineering, described the size and scope of UP with these facts: 32,000 miles (51,500 kilometres) of track in 23 states; 8,721 locomotives; and, over 50,000 employees.

In order to meet emissions reduction levels, Union Pacific (UP) has used more Genset technology than hybrids because of better fuel efficiency as well as reduced workload on the older switcher. UP also developed a Genset switcher prototype that was put into operation in 2005. UP currently has 160 units in operation. Its Genset technology surpasses the EPA's Tier 2 regulations by 63% for NOx and is close to surpassing the Tier 3 standards.

The Society of Automotive Engineers gave UP the Environmental Excellence in Transportation Award for its Genset locomotive technology in 2006. UP continues to investigate multiple technology options, including alternative fuels, aftertreatment and improved operational practices.

Amtrak and Greenhouse Gas Reductions
As the US's principal intercity rail passenger carrier, amtrak operates over 21,000 miles (33,800 kilometers) of track in 46 states and carried over 24M riders in 2006. Roy Deitchman, amtrak VP, Environmental Health and Safety, says the company has reduced its diesel fuel consumption, while increasing ridership through anti-idling practices, automatic stop/start installation, aerodynamic improvements of rolling stock and locomotive upgrades, among others.

amtrak has enjoyed a decrease in diesel fuel use from its base line (1998-2001) every year since 2003 as a member of the Chicago Climate Exchange (CCX). A CCX commitment of a 6 percent reduction from 2003-2010 is the largest percentage reduction of any voluntary commitment in the U.S. The company uses ultra-low sulphur diesel (ULSD) fuels that will allow for the use of advanced exhaust control systems, also reducing emissions.

Efficiencies other than rolling stock have included the repair of water leaks ($1M savings), and the use of fluorescent lighting at Penn Station - New York ($300,000 annual savings).

PANEL 7 - The Path Forward: Innovation and Research

The final panel explored TC's Innovation Strategy, which will contribute to the department's objective of a sustainable transportation system. It also shared some private sector views and initiatives on the path forward to greater emissions reductions.

Building an Integrated Innovation & Research Strategy: The Environment as a Pillar of Development
Sesto Vespa, TC Chief, Technological Application, Transportation Technology and Innovation Directorate, explained how environmental issues have caused a focus shift from safety and security to emissions reductions, alternative fuels and new technologies.

Transport Canada's strategic priorities include a transportation system that is efficient, clean, safe and secure. The department's strategic R & D priorities are focused on: the efficient movement of people and goods in Canada's gateways and corridors, as well as in the North; the needs of an aging population; improved energy efficiency; and reduced GHG emissions and air contaminants. Progress to date includes an Innovation Strategy that provides an overall framework for R&D, technology applications and skills development.

The pressures for improved environmental performance, coupled with the increased demands on our transportation system, have created unprecedented opportunities for industry growth as well as an array of new technologies nearing readiness- a level of innovation that has not been seen for over 50 years.

Canada has a host of R&D activities from different sectors, which presents the need to focus and integrate TC and other federal initiatives working towards the same goals. Canada must also work closely with key international governments and institutions, particularly in the U.S.

Powering Freight Railways for the Environment and Profit, Electrification-Why and How
Canadian Pacific Consulting Services (CPCS) Technologies President Glen Fisher, promoted the idea of electrification of railways as an alternative to the harmful emissions created by the 2.1B litres of diesel fuel that are currently consumed by Canadian railways every year.

The necessary engineering and technology are already available for three-phase to single-phase electrical conversion. The British Columbia Railway has used this technology in its operation. Locomotive manufacturers can design the circuits to provide traction and regenerative braking and the horsepower capacity needed to manage heavy freight trains, while recuperating wasted braking energy.

The main barrier to such a project has been the amount of capital needed to make the conversion. Mr. Fisher suggested options such as a Public-Private Partnership, because the required investment is beyond a reasonable size to add to the balance sheet of a major railway, even if a payback could be enjoyed within ten years.

The environmental benefits would be enormous, particularly if the source was non-fossil fuel electricity or an alternative energy source such as wind energy. Along with eliminating air contaminants, electrification would reduce noise levels, eliminate engine idling and warm-up, and remove the possibility of fuel spills. However, the investment would be substantial, despite a positive rate of environmental return.

The Innovation Cycle for Environment-Friendly Railway Technology
Peter Eggleton, Telligence Group Principal Consultant, spoke about the 5 D's of the innovation cycle for new transportation technology: Definition, design, development, demonstration and deployment.

When a current technology does not meet the needs of the transportation industry, a five-stage (5 D's) innovation program is embarked upon to bring new technology to fruition. The initiating stage is the definition of the concept, followed by the design stage. The development stage is the most challenging and cost-intensive because of the number of design changes and refinements generally required. This is known as the 'valley of death', where most innovations fail. The demonstration stage also poses some difficulties, as the new innovation comes with the risks inherent in using technology as yet unproven in operational service. With the necessity of adopting or developing new technologies to help reduce emissions and air contaminants, Mr. Eggleton felt that the time, resources and difficulties involved in getting new transportation technology to the stage of being deployed in operational service - and to achieve a return on investment - are generally under-estimated.

Locomotive Emissions, a Look Ahead
General Electric's (GE) ecoimagination program is working with its customers to meet the environmental challenge, as outlined by David Ducharme, GE Manager, Product Safety and Emissions Compliance. Overall strategies include doubling research and development expenditures, and working closely with customers to develop needed specifications for products. Innovation needs to dovetail with market demand so that railroad performance and reduced emissions go hand in hand.

GE's Evolution diesel locomotives meet the EPA's Tier 2 standards, and diligent engineering efforts will go into making Tier 3 locomotives attractive to customers. Tier 3 (2012) will focus on fuel system improvement, combustion- and turbo optimization, as well as ultra low sulfur diesel. Tier 4 (2015) standards will drive aftertreatment technology, such as a diesel particulate filter, NOx aftertreatment and further improvements on ultra-low sulphur diesel.

GE, like all suppliers, is under enormous pressure to meet the Tier 4, 2015 deadline, while research, product engineering, manufacturing, and supply chain remain fully engaged. Besides mainline locomotives, GE is working on regional and switcher applications and fuel efficiencies. The Trip Optimizer is another tool to improve system efficiencies. It evaluates an entire route for fuel savings, so with advance notice for hills, braking can be minimized. Ideally, the system could run without ever using brakes.

GE's prime focus is to move the Evolution Series Hybrid through the development cycle. It has passed the prototype phase and will proceed into real world testing over the next 18 months. It stores power utilized from dynamic braking to supplement the diesel-electric engine, thereby reducing emissions and fuel consumption. GE expects to have limited production by 2010.

Conclusion
In his closing remarks, Mike Lowenger, RAC, thanked all speakers and participants. He commented on the many exciting projects related to reducing emissions from the rail industry and highlighted the need to continue to share information at events such as this.

Comments from the post-conference survey ranged from good to excellent, with almost unanimous praise for the broad range of speakers and topics. Comments of note included expressions of interest in how smaller rail companies are reducing emissions and the fledgling carbon offset market. The conference delegates also noted that they would like to meet again within 18 months to two years, as more emissions-reducing technologies are developed to meet regulations in 2011.



i Greenhouse gases (GHGs) are gases in the atmosphere that trap energy from the sun. Naturally occurring GHGs include water vapour, ozone, carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Without them, the Earth's average temperature would be about 33°C lower than it is, making the climate too cold to support life (Schneider, 1989). While these naturally occurring gases make life possible, a serious concern today is the enhanced effect of increased levels of some of these gases in the atmosphere, due mainly to human activities on the climate system. http://www.ec.gc.ca/ges-ghg/default.asp?lang=En&n=1357A041-1

ii Emissions intensity is the level of GHG emissions per unit of economic activity, usually measured at the national level as GDP. pdf.wri.org/navigating_numbers_chapter5.pdf

iii Sulphur Oxides (SOx): This refers to all gaseous oxides of sulphur. Sulphur dioxide (SO2) is a gas for which national and provincial air quality objectives and regulations have been put into effect. In some cases, emissions may contain small amounts of sulphur trioxide (SO3) and sulphurous and sulphuric acid vapour. However, particulate or aerosol sulphate is excluded from emissions totals and is included under particulate matter. Sulphur oxides are expressed as sulphur dioxides (mass basis). http://www.ec.gc.ca

iv Nitrogen oxides include the gases nitrogen oxide (NO) and nitrogen dioxide (NO2). NOx is formed primarily from the liberation of nitrogen contained in fuel and nitrogen contained in combustion air during combustion processes. NO emitted during combustion quickly oxidizes to NO2 in the atmosphere. NO2 dissolves in water vapour in the air to form acids, and interacts with other gases and particles in the air to form particles known as nitrates and other products that may be harmful to people and their environment. http://www.ec.gc.ca

v NRCan Outlook available at this web address; http://www.nrcan-rncan.gc.ca/com/resoress/publications/peo/peo-eng.php

vi Criteria Air Contaminant (CAC): There are seven air pollutants that are considered Criteria Air Contaminants (CAC) They are Total Particulate Matter, Particulate Matter with a diameter less than 10 microns, Particulate Matter with a diameter less than 2.5 microns, Carbon Monoxide, Nitrogen Oxides, Sulphur Oxides, and Volatile Organic Compounds.

vii Ton-mile = one ton of freight shipped one mile

viii The Capital Cost Allowance is the cost of depreciable assets, such as buildings, furniture and equipment, acquired for use in business or professional activities that cannot be deducted as an up front expense when calculating net income for tax purposes. In recognition, however, of the fact that these assets wear out or become obsolete over time and are replaced, the federal government created the capital cost allowance (CCA). The CCA is a non-refundable tax deduction that reduces taxes owed, by permitting the cost of business-related assets to be deducted from income over a prescribed number of years.
http://www.parl.gc.ca/information/library/PRBpubs/prb0606-e.htm#what

ix EPA Tier 3 & 4
http://www.epa.gov/nonroad-diesel/regulations.htm

x EPA Tier 2
http://www.epa.gov/nonroad-diesel/regulations.htm

xi The Clean Development Mechanism (CDM) is one of the Kyoto Protocol's three flexibility mechanisms aimed at helping industrialized countries meet their greenhouse gas reduction targets. It is a project-based mechanism that allows public or private entities from countries with emission reduction targets (Annex 1 countries) to invest in emission reduction projects in developing countries in order to earn emission reduction credits (known as "certified emission reduction units" or CERs). These credits can be used against domestic emission reduction targets or sold to other interested parties.http://www.parl.gc.ca/information/library/PRBpubs/prb0558-e.htm

Date modified:
2012-01-09