As the state with the largest economy in the U.S., and the world's eighth largest, California relies on clean diesel as the backbone for many of the state's core industries.² Clean diesel technology powers tractors and water pumps in the fields, construction equipment on roads and building sites, and even power generators on movie sets and at hospitals. Thanks to California's leadership in promoting cleaner energy and environmental protection, clean diesel technology can help the state achieve its emission-reduction goals.

In recent years, technological advances have brought environmental progress to the diesel industry through a new clean diesel system - combining cleaner diesel fuel, advanced engines and effective exhaust control technology. Ever since 2010 heavy-duty trucks and buses have become virtually free of PM and NOx emissions and these same clean diesel technologies will be phased in for new off-road vehicles and equipment through 2015. Existing older diesel vehicles can be retrofitted with these technologies to significantly reduce emissions while greenhouse gas emission reductions are being realized through growing use of hybridization and renewable fuels.

132,000 diesel-powered construction vehicles are used in the state's construction industry, generating $65 billion annually and employing nearly 540,000 people.^{13 14 15}

The annual sales value of California's agricultural products are roughly $35 billion accounting for 12.3 percent of the country's total agricultural output and providing approximately 380,000 jobs.^{16 17}

Machines such as farm tractors, combines and irrigation pumps consume between 200 and 300 million gallons of diesel fuel annually.¹⁸

California's mining industry is the third largest in the country, producing $16.5 billion annually.¹⁹ Much of this is due to crude oil mining and petroleum refining, where the state's output accounts for 10 percent of the nation's total.²⁰

There are over 20,000 emergency backup diesel generators used across all industries in California, providing efficient, uninterrupted power to thousands of businesses to help save lives and money.²²

In fact, 75 percent of U.S. small business owners rate a power outage as a top threat to their business, which reinforces the crucial role of diesel as a back-up power source.²³

Port/Marine Traffic

More than 40 percent of the total containerized cargo coming into the United States enters through California ports.³ The ports of Los Angeles and Long Beach are the first and second busiest container ports in the United States and are together responsible for trade valued over $335 billion, supporting 4.7 million jobs across the U.S. and serving as the sixth busiest container complexin the world.⁴⁵ California also has the third largest ferry fleet in the country, which is 88 percent diesel powered.⁶

Ground Transportation

Approximately 165 million tons of cargo are carried over California's 5,200 rail miles each year. California has the largest trucking industry in the U.S., employing more than 862,235 workers.⁸ Most rail and truck transportation is powered by diesel technology.

Transit Buses

More than 7,900 public transit buses are used in California, and over half of these are powered by diesel or diesel hybrid engines.⁹ Santa Clara Valley Transportation Authority is adding 90 new diesel hybrid electric buses to its fleet thanks to a $53 million ARRA grant and $5.3 million from California's Prop. 1B funding.¹⁰

School Buses

California has approximately 23,700 school buses, making it the fourth largest school bus fleet in the country.¹¹ The Napa Valley School District received the state's first plug-in diesel hybrid school bus in 2007, which doubled the fuel efficiency and, in the first year alone, cut operational costs in half versus a conventional diesel school bus.¹²

Diesel Supports Public Health and Safety

CAL FIRE, the state's Department of Forestry and Fire Protection, owns and operates more than 3,000 emergency vehicles, ranging from fire engines, bulldozers, trailers, construction equipment, and mobile kitchen units, all of which are powered by diesel technology.²⁴

More than 3,737 ambulance vehicles are used across the state.²⁵ These emergency vehicles are virtually exclusively powered by diesel engines because of the durability and reliability of diesel.

Clean Diesel Passenger Cars Arrive in California

There are more than 530,000 registered diesel passenger vehicles in California. This compares to approximately 347,000 gasoline hybrids.²⁶

U.S. monthly sales of diesel cars doubled in 2010. Roughly 30 to 50 percent of consumers choose a diesel option over gasoline if it is offered for the specific vehicle they are purchasing. ²⁷

Nationally, if diesel vehicles made up 15 percent of the passenger fleet, they would save 17 billion gallons of fuel, 413 million barrels of oil and 205 million metric tonnes of CO2 by 2038.²⁸

California Policymakers Recognize the Value of Clean Diesel Technology

In 2000, the California Air Resources Board (CARB) adopted the Diesel Risk Reduction Plan to reduce particulate matter emissions - 75 percent from diesel vehicles and engines by 2010, and 85 percent by 2020 (from year 2000 baselines). Since 2001, CARB has approved new regulations for a variety of diesel fleets.

In December 2010, CARB amended its original regulations for on and off-road heavy-duty diesel vehicles and equipment, delaying the implementation schedule. Regulations for in-use agricultural equipment are still planned.

In addition to regulatory action, California has created the Carl Moyer program, one of the largest and oldest voluntary diesel retrofit incentive funding programs in the country. Over its first twelve years, the program has provided over $680 million from a mix of state and local funds to clean up approximately 24,000 engines. Cumulatively, this has reduced NOx and PM emissions by about 100,000 and 6,000 tons respectively.²⁹

In 2006, Californians significantly increased their funding for clean diesel technology through the passage of Proposition 1B, the highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Under this measure, the state was authorized to sell $20 billion in bonds, with $1 billion dedicated to the Goods Movement Emissions Reduction Program, and $200 million for the Low Emission School Bus Program.

In 2007, the Air Quality Improvement Program was signed into law, creating a voluntary incentive program administered by ARB to fund clean vehicle and equipment projects as well as air quality research and training. A majority of the program's annual $30-40 million has supported the hybrid Truck and Bus Incentive Project.

References

1 U.S. Census Bureau, 2009; R.L. Polk & Company, 2011; Energy Information Administration, http://www.eia.gov/dnav/pet/pet_cons_prim_dcu_SCA_a.htm; National Biodiesel Board (Plants are active or under construction) California Environmental Protection Agency, Air Resource Board, 2008 http://www.arb.ca.gov/cc/inventory/data/tables/ghg_inventory_scopingplan_00-08_2010-05-12.pdf; U.S. Environmental Protection Agency, 2008

2 Center for Continuing Study of the California Economy, 2009 California Economy Rankings (Numbers in the News, Dec. 2010), http://www.ccsce.com/PDF/Numbers-Dec10-CAEconomy-Rankings.pdf

3 California Association of Port Authorities, Economic Benefits, http://californiaports.org/capa-economic-benefits.shtml

4 The Port of Los Angeles, http://www.portoflosangeles.org/about/facts.asp

5 The Port of Long Beach, http://www.polb.com/about/facts.asp

6 Bureau of Transportation Statistics, National Census of Ferry Operators (Washington, DC: U.S. Department of Transportation, 2008), http://www.transtats.bts.gov/Tables.asp?DB_ID=616&DB_ Name=National%20Census%20of%20Ferry%20Operators&DB_ Short_Name=Ferry%20Census

7 Association of American Railroads, Freight Railroads in California, Rail Fast Facts 2008 , http://www.aar.org/KeyIssues/Railroads-States.aspx

8 American Transportation Research Institute, 2008.

9 American Public Transportation Association, 2010 Public Transportation Vehicle Database (Washington, DC: APTA, 2010)

10 Metro Magazine, November 4, 2010, http://www.metromagazine.com/News/Story/2010/11/Santa-Clara-Calif-transitunveils-new-hybrid-buses.aspx

11 School Bus Fleet, State by State Transportation Statistics, School Transportation: 2008-09 School Year

12 PRNewswire, Reuters, California’s Newest Green Product - A Hybrid School Bus - Saves Fuel, Reduces Emissions, 25 July 2008, http://www.reuters.com/article/pressRelease/idUS185734+25-Jul-2008+PRN20080725

13 California Environmental Protection Agency, Air Resources Board, Workshops on Information Regarding the Off-Road, Truck and Bus and Drayage Truck Regulations (Aug/September 2010 Workshop Series, September 3, 2010), http://www.arb.ca.gov/msprog/ordiesel/documents/emissions_inventory_presentation_handout_10_09_03.pdf.

14 Bureau of Economic Analysis, Regional Economic Accounts

15 Bureau of Labor Statistics, Employment, Hours, and Earnings

16 California Department of Food and Agriculture, 2009, Agricultural Statistical Review, http://www.cdfa.ca.gov/statistics/

17 California Employment Development Department, Agricultural employment in California, 2010, http://www.labormarketinfo.edd.ca.gov/?PAGEID=158.

18 Energy Information Administration, Distillate Fuel Oil and Kerosene Sales by End Use, California, http://www.eia.gov/dnav/pet/pet_cons_821use_dcu_SCA_a.htm.

19 The National Mining Association, Mining in California 2007, http://www.nma.org/pdf/states/econ/ca.pdf

20 Energy Information Administration, California State Energy Profile (EIA, 2010), http://www.eia.gov/cfapps/state/state_energy_profiles.cfm?sid=CA

22 California Environmental Protection Agency, Air Resources Board, Staff Report: Initial Statement of Reasons for Proposed Rulemaking, September 2010. 23 Will Gruver, Keeping Your Business Profitable into the 21st Century (Bloomington, MN: U.S. Power & Environment, 2007), http://www.uspowerco.com/keeping_your_business_profitable_into_ 21st_century.htm

24 California Department of Forestry and Fire Protection, Mobile Equipment (Sacramento, CA: CAL FIRE, 2008), http://www.fire.ca.gov/fire_protection/fire_protection_mobile_equip.php

25 California Emergency Medical Services Authority, EMS Systems Division - Transportation (Sacramento, CA: EMSA, 2006), http://www.emsa.ca.gov/systems/files/ambulance/2006_transport_p rov.xls

26 R.L. Polk and Company, 2011

27 The Diesel Driver http://www.thedieseldriver.com/2011/02/diesel-economics-2010/2/

28 The Martec Group, American Road: The Opportunity for Clean Light-Duty Diesel Vehicles, Prepared for the Diesel Technology Forum, July 2008, http://www.dieselforum.org

29 Charles Kersey, California Air Resources Board

30 Robb A. Barnitt, In Use Performance Comparison of Hybrid Electric, CNG, and Diesel Buses at New York City Transit,NREL/CP-540-42534, www.nrel.gov/vehiclesandfuels/fleettest/pdfs/42534.pdf