Railways and the Environment Workshop - University of Manitoba
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Railways and the Environment Workshop June 21-23, 1999 Winnipeg, Manitoba Overview............................................................….Page 1 Survol: la version française..................................Page 19 Workshop Proceedings Index.......................…...Page 40 Proceedings by Transport Institute University of Manitoba
Overview Railways and the Environment - Workshop A Renaissance The Railways and the Environment Workshop gathered all the major players involved in the railway industry to develop a broad scale view of the future. The result was an assessment of the challenges that must be faced in meeting Canada’s environmental concerns. The general conclusion of the workshop is that the rail industry offers a means to reduce the environmental impact of moving freight in Canada. The major remedies for reducing transportation originated emissions fall in the areas of human activity change, modal shifts and technology. Changes in human activity are extremely difficult to accomplish, however, a modal shift from truck back to rail is practical, feasible and a concrete solution to a significant part of the transportation related emissions problem. As we learned during the workshop, the application of existing technology will make a major contribution to emissions reduction. The future portrays a renaissance for railways. The Problem Richard Gilbert, The Centre for Sustainable Transportation, set the stage for the workshop by identifying the need for all parties to focus on emissions by defining the relationship between transportation and the environment and by describing what the centre is about. The starting point for the discussion is a common understanding of “sustainable transportation”. The centre describes it as follows: “Transportation that meets our economic and social needs without harming human health or the environment or, more simply stated, transportation that does not mess up the planet for our grandchildren.” The centre is a federally chartered, non-profit organization sponsored by Environment Canada and Transport Canada. Its role is to provide leadership in achieving sustainable transportation in Canada by facilitating cooperative actions, and thus contributing to Canadian and global sustainability. The importance of addressing the transportation emissions problem in Canada was crystallized in the following points: transportation is responsible for • most of Canada’s local pollution • about 1/3 of our contribution to global pollution • more than half of the current increase in greenhouse gases 1
• more than 2/3 of Canadian oil consumption Dramatic changes in the environment and oil consumption are expected. The graph of surface temperature of the Northern Hemisphere over the past 1,000 years demonstrates the warming since 1900. A new benchmark was set in 1998 as the warmest year in recorded history and the largest incremental increase year over year. Global warming is no longer disputed in knowledgeable circles. The need to address the issue has been defined. The demand for petroleum products for transport purposes has steadily grown with worldwide access to cheap oil. This is about to change dramatically because major oil discoveries peaked about 1960. Prediction models indicate that the access to cheap oil will end in the next decade. Consequently, oil production will shift to more expensive sources such as the oil sands projects and the use of more costly mechanical means to extract oil from conventional wells. The graph of predicted discovery, extraction and demand curves highlights the problem. 2
Actual and projected world-wide discovery, extraction, and demand for conventional oil, 1920-2040 (in billions of barrels per year) 40 DEMAND 30 DISCOVERY 20 EXTRACTION 10 0 1920 1940 1960 1980 2000 2020 2040 Data sources:Oberle Oil Corporation; International Energy Agency CST A negative economic impact of higher oil prices can only be avoided if demand for fuel is reduced. Current research suggests that technology is likely to be less than half the solution. The other half must come from profound changes in mode shares and activity changes. The OECD sees the effort to attain sustainable transportation concentrated in these areas: Area Passenger Freight Technology 41 % 47 % Occupancy 15 % 10 % Mode shifts 7% 24 % Activity 26 % 19 % Downsizing 11 % 0 Increasing oil prices will have significant effects on oil production. As prices rise, unconventional oil production will increase which could ultimately result in the cost of energy extraction becoming greater than the energy extracted. Correspondingly, the environmental impact of energy production is likely to increase too. Canada’s Railways Today and Tomorrow Bob Ballantyne , Railway Association of Canada, introduced the workshop to Canada’s railways, clarified the problem and placed Canada’s railways in the transportation emissions 3
environment. Canada must reduce its greenhouse gas emissions by 6 % under the Kyoto accord. Transportation contributes to 27 % of the emissions while railways represent only 4 % of the transportation sectors emissions. Railways have been operating in Canada for 162 years on privately financed infrastructure. Change in the industry reflects the major economic changes of history; trade unions, world wars, bankruptcies and nationalization, highway construction, civil aviation, seaway construction, dieselization, free trade, partial deregulation and recently, the privatization of Canadian National. In reacting to the changes and the development of the global economy, the North American railways have consolidated into 4 “mega” class 1’s and 500 short-line or regional carriers in the United States and 2 class 1’s and 42 short-line or regional carriers in Canada. One very significant result of change is a reduction in the revenue per tonne kilometer from 2.54 cents in 1989 to 2.35 cents in 1997, a drop of 7.5 %. This benefit to shippers has been accomplished through major productivity gains, an increase in revenue tonne kilometer (RTK) per employee of 93% since 1988 while generating an all-time high of 304.2 billion RTK. A major implication of the reduction in revenue per RTK is the large portion, 19.5 billion RTK of the 304.2 billion RTK, required to pay the $ 458.9 million bill for fuel, property and other sales taxes. Rail fuel taxes are disproportionate across Canada, do not reflect infrastructure investment and ignore the reality of the emissions problem in the transport sector. Having set the stage for the railway environment, Bob positioned the railways in the movement of freight tonnage in Canada and the greenhouse gas emissions problem that we are facing. Billion RTK Fuel Consumption (litres) Rail 304 2.15 billion Truck 233 10.9 billion The more efficient rail performance is a result of lower rolling resistance that is expressed as a per cent of weight on the axles. Rolling resistance for trains is approximately 0.1 %, for trucks 0.5 % to 1.5 % depending on tire and road conditions. Rail is inherently 10 times more fuel- efficient than truck, based on rolling resistance. It is estimated that rail is 3 times more fuel- efficient than truck for competitive traffic. Having addressed the issue of fuel efficiency, Bob then introduced rail greenhouse gas performance. Rail carbon dioxide emissions have declined from 39.86 Kg/1000 RTM in 1975 to 27.956 in 1997. Fuel consumption has declined at an average rate of 1.9 % per 1000 GTK since 1990. Numerous technological changes have contributed to the emission and consumption improvements including; new locomotives, train handling, rail lubrication, more productive freight cars, increased gross weights and continuous research and development on all aspects of rail operations. 4
The Railways in Canada recognize the importance of the greenhouse gas emissions problem and are actively working towards solutions. In 1995 a voluntary MOU between Environment Canada and the RAC was reached to limit NOx to 115 KT/year subject to traffic growth levels of 1.5 % per year. In 1997, NOx emissions were 121 KT with traffic growth averaging 4.3 % since 1990. A number of other environmental issues relating to rail operations were highlighted. Most significant was land use in relation to increasing levels of traffic. The railways have the ability to double track a single-track corridor and expand capacity without further land requirements. This is not possible in congested truck corridors. With over a 100 year history of unregulated land use, the rail yards contain contaminated soils that must be mitigated. Growing cities have enveloped most rail yards in Canada necessitating measures to mitigate contamination and to address noise pollution issues. Bob then addressed the dramatic shift in market share between the railways and the trucking industry over the past 50 years. In 1955 rail enjoyed just over 80 % of the market. By 1995, rails share had dropped to less than 40 % with trucks share increasing to slightly over 60 %. The shift from rail to truck has been strongly influenced by public policy. The driving issues of public policy are the pricing policy for the use of publicly provided infrastructure, taxation levels and regulations. The combination of fuel taxes and capital cost allowance rules disadvantaged the railways versus other modes and limited the railways’ ability to invest in new equipment. A comparison of tax burdens between industries graphically highlights the disparity between modes within Canada and between Canada and the United States: Industry Tax as a % of revenue USA Marine 2.9 % Manufacturing 4.9 % Air 6.3 % 3.2 % Motor Carrier 7.9 % 8.1 % Railway 14.2 % 8.1 % The dilemma of meeting Canada’s greenhouse gas emission targets takes focus as we address these differences between the trucking industry and the rail industry. Clearly, continuation of the shift from rail to truck would increase greenhouse gas emissions. Reversing the trend will go a long way towards Canada achieving its goals. Trucks produce 22.8 % of the GHG from approximately half of the GTK; rail produces 3.8 % of GHG from the other half of the GTK. On this basis rail is achieving a performance that is six times better than truck. Harry Gow, Transport 2000 Ottawa, urged the workshop to focus its attention on the passenger side of the modal shift equation. In doing so he raised a number of public policy 5
issues in Canada including taxation and policies affecting the railways ability to make needed investments. According to Mr. Gow, the decline of rail passenger service in Canada (VIA) is attributable to public policy decisions and is thus “politically driven”. In response to a greater focus on passenger rail travel, Bob Ballantyne stated that the rail passenger industry is important and has a place in the rail environment. We are in fact seeing a renaissance in recent times. New operations are entering the market such as Great Canadian Rail Tours. The passenger business has suffered from public policy decisions over the past several decades, however, there is now 1 auto for every 2 people in Canada. The railways are no longer the universal mode of transportation and we must look to passenger rails future as filling niche markets. Anthony Perl, University of Calgary, fleshed out the definition of sustainable transportation and expanded the concept into comprehensive sustainability where society, the economy and the environment must interact harmoniously to create community livability, sustainable development and social and economic equity. He more particularly focused on three distinct advantages that rail has over other modes: • Energy use - railways are 3-5 times more energy efficient than other modes and have the best potential to use alternative energy sources (e.g. electrification); railways therefore have the inherent potential to reduce greenhouse gases. • Land use and impacts - because they own their own infrastructure, railways make the most efficient use of land (the least amount in fact) and thus can prevent such things as urban sprawl. In these and other ways railways create "green and livable cities." • Infrastructure financing - because they provide their own infrastructure, railways offer the best opportunities to save on social costs compared to other modes. These savings can in turn enable lower taxes and/or reinvestment in other social programs. Perl suggested that new rules for all modes must be established in which there are no monopolies on mobility. Private infrastructure cannot be placed off limits to legitimate mobility needs (e.g., rail passenger transport). Canada has a very difficult balancing act to resolve. It must deal with sources of infrastructure investment, regulation, taxation, population densities and distribution and compensation for ownership of infrastructure. However, the evidence clearly demonstrates that the rail industry has distinct advantages in terms of efficiency and its ability to reduce greenhouse gas emissions. It can enjoy a renaissance as modal shifts and human activity changes take place. The American Perspective. New Regulations, Their Origins and Impacts 6
Charles Moulis, USEPA Office of Mobile Sources, noted at the outset that the primary focus for emissions standards (promulgated on April 17, 1998) in the United States was NOx emissions. Locomotives emit 5 % of all NOx in the US or about 1 million tons per year. These standards apply to all locomotives at the time of manufacture or remanufacture with some exemptions such as locomotives built prior to 1973, historic steam locomotives and exported locomotives. Of note is the dramatic reduction in NOx required by the standards: Tier 0 (units built between 1973-2001) 34 % NOx reduction Tier 1 (2002-2004) 49 % NOx reduction Tier 2 (2005 + ) 62 % NOx reduction 50 % PM & HC reductions Locomotives for passenger service are not required to comply until the 2002-2006 period for new manufacture and until 2007 for units built between 1973-2007. The main focus is on freight units because it is believed that the financing would be too fragile for the passenger industry. Key to these standards is a rigorous maintenance system during remanufacture. Both manufacturers and railroads are responsible for compliance to this system. Moulis believes that based on current technological advances, standards at all three levels and periods can and will be met. Walter Brown, Engine Manufacturers Association, substantiated Charles Moulis’ belief that technology would be able to deal with the emissions standards that have been set. The main concern raised by Walter is the balancing act that will take place between lowering fuel consumption and reducing NOx emissions. Current diesel engines lower fuel consumption but produce more emissions per litre of fuel consumed. A second concern is that Tier 1 limits are based on On-Highway capabilities rather than experience with the rail industry. In addition, secondary and tertiary limits have already been set without the experience of the first set of limits being examined. Steven Fritz, Southwest Research Institute, reviewed the capabilities of the Southwest Institute for engine testing. He particularly noted the shift in testing from 1987 to today. During the period 1978-1987, testing focused on fuels research, what “goo” could be run through the engine. From 1989 to today testing has focused on emissions research. Three types of testing; pre- production certification, production line testing and in-use testing will be used to ensure that locomotives meet guidelines. Because of the standards that have been set, the future for the institute and testing includes the creation of retrofit kits, a CARB fuel study and the working out of standards for replacement parts with respect to emissions. Based on these presentations, U.S. regulations will be met. Canadian regulations have not yet been established, however, the manufacturers are focused on the U.S. with the U.S. fleets totaling 30,000 units. The solutions will have to take into account the railways need for fuel- efficient locomotive units. 7
The Locomotive Unit Presentations made by representatives of Alstom, Bombardier and Cummins, signaled that their organizations have locomotive units that meet standards today. Key to the presentation by Alain Mercier, Alstom, was the practical reality of railroading in Canada. Alain drew the scenario that of all the locomotives in service in Canada, most (about 2000 units) will continue to be in service for at least the next ten years. He also noted that most of the remanufactured units are sold to other operations either in Canada or abroad. The need to meet emission standards will therefore have a dramatic economic impact as all of these units will have to be remanufactured to meet standards. A driver of this scenario is Canada’s depreciation rates that extend the life of locomotive units rather than opting for early replacement. A unit built after 1970 has a 40-50 year life expectancy. Alain concluded his presentation by stating that Alstom engines achieve Tier 1 standards now and will achieve Tier 2 standards based on technological changes that can and will be available. Daniel Hubert, Bombardier Corporation, introduced the workshop to the High Speed NEL (non-electric locomotive). The NEL is designed for passenger service and would run at 125 mph. The benefits of such a train would be a reduction in upgrade costs for high-speed rail, while ensuring that it would be able to use existing track infrastructure without significant improvement costs. The High Speed NEL already meets EPA 2004 emissions rates. Lloyd Crocker, Cummins Eastern Canada Inc., presented the K2000E, a medium speed engine that is both fuel efficient and EPA compliant. The engine produces some 15-30 % fuel savings over older medium speed engines and meets EURO 2 (On-Highway) standards. In addition to efficiency gains and emission reductions that the industry is looking for, other forms of new technology can be introduced to improve rail operations. Chris Holloway, The Trans Group, introduced the use of GPS (global positioning systems) to aid railways in the development of automatic train control and collision avoidance mechanisms. Discussion revealed that the AAR has completed a cost benefit analysis of implementing GPS technology. Costs prohibit use of this technology for the whole industry. However, we have examples in Canada where the system is being productively used in special markets. A strategic application may be to concentrate on passenger operations. Fuel Cell technology provides a fascinating opportunity for reducing emissions in the transportation industry. Martin Hammerli, Natural Resources Canada, gave a broad overview of the development of fuel cell technology. The technology is not new, however, the fuel cell remains only at the (costly) prototype stage. Many questions revolve around the fuel cell regarding cost, cold climate operation and the cost of ensuring the supply of materials, i.e. hydrogen. Martin stated that most of the problems with fuel cell technology are “engineering” 8
problems. As such, they will, in time, be solved. The game is only starting and many breakthroughs are yet to come. Steven Fritz, Southwest Research Institute, reviewed the development of the LaCHIP or Late Cycle High Injection Pressure Dual-fuel engine developed by GasRail USA. The goal was to develop and demonstrate liquified natural gas locomotives that outperform today’s diesel locomotives in terms of emissions and operating costs. The LaCHIP was demonstrated on a commuter operation in California with interesting results. The goal was a 75 % reduction in NOx without fuel efficiency penalties. The test indicated that only a 50 % reduction could be achieved with no loss in efficiency. At 75 %, fuel efficiency was penalized by 8-10 %. In each case, other emissions were kept at current baseline diesel levels. The project is currently in limbo. The $ 2 million in financing is in the bank, but non-technical issues are holding the project back. The review of the technology side of the equation clearly leads us to believe that the locomotive unit of the future will be compliant with the standards that have been set and that developments will take place to improve the emissions from existing units. Bob Dunn, National Research Centre, brought the reality of railway operating results to the table. Diesel fuel is the largest single line item in a railway’s operating budget. Consequently, efficiency and performance concerns must be balanced with, or traded off against, emission concerns. Increasing fuel consumption to achieve emission reductions is not an option in today’s environment. Most of the railways’ efforts in North America have been to reduce fuel consumption. However, the industry is highly competitive and, any solutions followed to improve emissions will have to be cost effective. Policy makers must be critically aware that the railways want to achieve the emissions reduction objectives. Bob suggested that encouraging the industry to achieve the objective through proactive measures rather than regulation would be a productive exercise. A critical issue raised by the Brotherhood of Locomotive Engineers was air quality in the cab, particularly when crew must ride in the second and third units of a consist. Although industry presentations were silent on this issue, the representatives supported initiatives to improve the workplace for the crew. There was no answer to the question of whether CO emissions were a factor in crew fatigue. The TSB conducted a 5-sector study on factors affecting fatigue on crews and CO issues were not included in the recommendations. It was pointed out that the cabs of 99 % of new locomotives in the United States are air-conditioned. Therefore, decisions on cab air quality are a railway operations issue. Bob Ballantyne highlighted the Canadian industry’s expenditure of $ 3 million on fatigue management studies that focused mostly on circadian rhythms (time on duty). A number of fatigue management strategies are currently being implemented. The Environment 9
The environment is affected by much more than the emissions from motive power units. The railways have existed in Canada for 162 years. They have had a lot of opportunity to affect the environment in many ways. Fortunately, they are also well advanced in understanding the effect that they have had on the environment, developing measures to reduce pollution and mitigating existing problems. Anne Tennier, CP Rail, outlined the new Responsible Care program at CPR. The program, which has been adopted by the chemical industry in 43 countries, involves the company, outreach and partnership with local communities and its customers. It takes into account environmental, safety and health considerations at a voluntary level. Its guiding principle is to provide a framework to improve environmental health and safety performance in chemical management. The system has a code of practice in six areas including distribution, manufacturing, hazardous waste, transportation, research and development and emergency response/community awareness. Each Code within CPR has a ‘champion’ – a senior level official who is responsible for the implementation of this practice across the country. All codes require thorough assessments of the process of management in that given area. For example, in the ‘distribution’ code, the selection of suppliers, distributors, the short-line companies and its facilities are assessed with respect to a given ‘code of practice’. The ultimate goal is to integrate this type of thinking and process throughout CPR in its Safety Plan Process. Chris Ludwig, CP Rail, spoke of how CP is learning how to deal with site management environmental issues. Environmental issues had a low profile pre-1990. Awareness of the environmental impact of the actions of the rail industry has grown since 1990. To this end an environmental engineer was hired and Environmental Affairs was created to meet stringent environmental regulations, identify environmental issues for liability reasons and move to a proactive stance with respect to these issues. The process followed seven steps including questionnaires, historical review, subsurface investigation, qualitative risk assessment, remediation planning, remediation implementation, and monitoring and closure. Sites were classified into five classes with action being taken in all with high-risk sites. Work is underway with the assessment, development of plans and remediation activity in each class of site. A number of key lessons have been learned in the process to date. At the forefront is the need to spend up front to characterize the site properly, follow the phased approach in sequence (do phase 1 & 2 before you dig) and set realistic, obtainable and measurable remediation goals. In response to a question about whether the problem was best left in place, or moved, Chris recommended that it is wise to transfer the material from a sensitive site to a safe site. This lowers the risk in the future. 10
Bill Aird, Canadian Transportation Agency, detailed the process through which citizen complaints on noise pollution are handled. In cooperation with the RAC, the Canadian Transportation Agency has developed a voluntary complaint process to allow amicable settlement between the railway and the complainant. The most important measure for mitigating noise is the amount of land separation between the rail area and the population. Topography can only effect noise to a certain extent. Both CPR and CNR follow a 950- foot benchmark and noise complaints have been reduced because of this strategy. Another means by which the rail companies have been more proactive and conscious of environmental issues is with respect to working near waterways and water in general. A proactive approach by CPR has been taken by the hiring of an environmental biologist, and introduction of a process that, when implemented on-site, can reduce negative environmental issues for the company. Pam Ladyman, CP Rail, notes that the rail companies are guided by the Fisheries Act, with broad definitions with respect to working near fish-related water. The Act is stringent with respect to the harming of water and adding man-made elements to an area with a negative impact on the fish population and the environment as a whole. Environmental knowledge of working with/near water rules must be incorporated into the planning, design, construction and operation of a site from the outset. As with site management, up front expenditure entails fewer costs on the back end of a project. Penalties are severe. CP Rail is not the only company interested in environmentally sound processes throughout its company. Rick Masterton, CN Rail, presented the new waste management program that CN has introduced. Historically, waste has been a low priority. It has been subject to complexity and confusion because of the large number of service providers and local responsibility for waste management. Liability and environmental issues went hand in hand to make this an issue of concern. Under the new program, CN developed a baseline understanding of their need in the area of waste management. Through the collection of site-by-site data, it was noted that a national strategy was required to make sense of waste management for safety, environmental and liability issues. A major benefit of the new national waste management contract is that local contractors are again being used, but national guidelines and policies are now followed with respect to cleanup standards and liability. Savings of $ 0.5-1.0 million per year are being achieved. Similar environmental and liability concerns have driven Environment Canada to create a database and guidelines with respect to new and used railway ties. Barry Munson, Environment Canada, revealed the problem that exists with respect to creosote in wooden railway ties, 1.4 million of which are replaced each year and another 1 million are treated. The preservative materials in the ties are in fact pesticides. 11
A comprehensive approach involving prevention, continuous improvement and a verification/accountability aspect is required to mitigate the problem. It is expected that a system will be implemented in 2002. All stakeholders will provide report cards in 2003 and 2005. The critical message in Barry’s presentation is that we cannot eliminate all the ties and poles in service today. The life cycle of these materials is too long for planned phase out in the short and medium terms. Our approach will have to be one of continuous improvement over the long term. Transport Canada’s Edgar Ladouceur described a program to create a database of emergency response contractors who can provide a full range of services. To date, knowledge has been ad hoc and uncertain as no system exists to establish the capability of contractors. The four-step identification process included self-identification via classification standards, self- assessment; verification and cooperation through the trade association. Issues including modes of transportation, mitigation, remediation, dispute resolution, training processes and procedures and equipment used were examined at various points during these stages. The main challenge has been to develop a process to encourage a highly competitive industry to cooperate and develop proactive solutions for the future. Future developments will include involvement from the trucking and marine sector and development of equipment and training standards including approval and certification procedures. Brent Laing, CP Rail, noted that no national policy exists for brownfield site cleanup. Brownfields are abandoned, idle or underused sites that could be redeveloped which have certain environmental conditions that must be cleaned up prior to redevelopment. Typically we will find all the historically hazardous materials at these sites, creosote, asbestos, fuels, heavy metals and an unbelievable number of foundations. Brownfield sites have become an issue given changes in the rail industry. The move from steam to diesel, industry decline and related track abandonment and relocation to non-urban areas has left a company like CPR with a number of unused facilities that, if made environmentally sound, could be redeveloped for commercial use. Laing highlighted two case studies of brownfield redevelopment. In both instances, these were large sites with a tremendous history of use, and abandonment over time. A staged process was implemented starting with a survey of previous use that estimated the leftover materials and chemicals on the site. In both instances, several lessons were learned. Original plans change over time, detailed studies are at times but rough guides. Expect the unexpected with respect to what may be found. In all instances, proactive measures by the rail companies, as well as the taking of an inclusive and voluntary approach will mitigate overt government involvement and regulation, as well as create good outreach with clients and citizens. Day to day business for the railway operators will be more complex and costly. They must be cognizant of the environment in which they operate and not only stop polluting activities, but mitigate problems created over their 162 year history. Mitigating the problems of the past 12
cannot be achieved overnight. It takes time, planning and money to move one of the oldest major industries in Canada to an environmentally clean operation. Passenger Rail The presentations in the passenger rail session delivered two critical messages: • As cities exceed their capacities to handle automobile traffic, alternative passenger systems must be built. • Do not dispose of old railway rights of way, particularly ones that carried passengers before we modernized our passenger movement systems. Peter Lloyd, GO Transit, presented a history of GO Transit, its successes and its future. GO has been tremendously successful since the first train ran on May 23, 1967 and currently achieves an operating ratio approaching 85-90 %. However, GO Transit faces a combination of capacity, funding and political issues at a time when forecasts indicate a near doubling of ridership on existing services in the next 20 years. John Pearce, Transport 2000 Atlantic and Tim Lane, Transport 2000, Ottawa discussed the opportunities that have been looked at for commuter rail in Western Canada and the problems that we face in introducing light rail projects in Canadian cities. Key to these developments is the access to rail corridors. Once they are lost, the opportunity for this type of passenger transportation system is also lost. Climate Change and Air Quality Issues The Process Lionel King, Environment Canada, explored the current context in which locomotive emissions monitoring takes place in Canada by addressing the origins of the monitoring program, the reporting requirements, results to date and the future direction of emissions monitoring in Canada. Emissions monitoring began in November 1990 when the Canadian Council of Ministers of the Environment (CCME) published Phase 1 of a management plan for NOx and VOCs, which called for a 115,000 tonne cap on total NOx emissions from locomotives effective in 1992. In December 1995 an MOU was signed between EC and the RAC calling for the implementation of a number of monitoring and reporting activities. First and foremost, between 1990 and 2005 the RAC will collect data to calculate and report annually on total NOx emissions from its members. The MOU includes the 115,000 tonnes voluntary cap on NOx emissions. In addition, the RAC report will include gross and net ton-miles, total fuel consumption, total HC, SOx, PM, CO and CO2, provide projections for the years 2000 and 2005 and composition of locomotive fleet and progress in N0x technology introduction. Reporting is focused on three 13
Tropospheric Ozone Management Areas (TOMAs); Quebec/ Windsor Corridor, B.C. Lower Fraser Valley and Saint John N.B. The reports on data to 1997 show NOx reductions of 25 % (1975 - 0.8 Kg NOx per 1,000 NTM; 1997 - less than 0.6). NOx emissions have fluctuated with economic cycles but are reducing over time and are almost meeting the 115,000 tonne cap despite the current economic upturn. N0x emissions will likely be reduced by a further 15 percent during the next decade. Similarly, CO2 emissions have been reduced by more than 25 percent over the same period. The main focus of the monitoring program is a refinement of the Emissions factors through testing and to account for technical progress that is being made in the industry. Forecasts will be improved and we will monitor the results of the EPA regulations in the U.S. With progress being made on NOx, more attention will be given to particulates (PM). Key to the process is a continuation of industry and government working together to maintain a consistent set of rules for monitoring. Catherine Conrad, Federal Climate Change Secretariat, discussed the Kyoto challenge and the national process, the progress made towards achieving goals set during the 1990s, the National Implementation Strategy (NIS) and the critical steps in the year ahead. The Kyoto challenge was very defined in terms of megatonnes of CO2 equivalent emissions. In 1990, baseline emissions were 599 Mt. If business was left to its own endeavors (business as usual), it was predicted that CO2 emissions would rise to a range of 703-748 Mt in 2010, a gap of 20-25 % above the Kyoto target of 563 Mt. Both provincial and federal governments recognize that climate change is an important global issue that must be addressed. Conrad explored the unequal distribution of greenhouse gas emissions between regions and sectors of the economy. In terms of sheer volumes, Ontario and Alberta are the greatest polluters and have exceeded their 1990 levels by 23 and 35 percent respectively. Although at much lower levels, every province and territory had exceeded 1990 levels of CO2 equivalent emissions. Transportation was by far the most significant contributor to the generation and release of CO2. In discussing the disparity between regions, Conrad stated that it is fully understood that no region of the country should be asked to bear an unreasonable burden of action. Furthermore, the key to ensuring equity and fairness lies in our ability to understand the impact and the costs/ benefits associated with implementation. The National Climate Change Process is led by the First Ministers working closely with the energy and environment ministers, steering committees, federal-provincial councils, a national secretariat and an integrative group composed of the chairs of each Issue Table. Progress to date has been substantial. The 16 Issues Tables are aggressively working towards developing and prioritizing options for presentation to the first ministers later this year. The prime focus of the options being developed is on mitigation activities. The National Implementation Strategy (NIS) has two key components: 14
• Alternate future paths that will meet the -6% Kyoto target • An initial package of immediate measures (common to all paths) The NIS is not a ‘one pass’ approach. Its business plan recognizes that climate change is a long-term issue that must be responsive to changing decisions made in the international and domestic context. It is an iterative process that involves ongoing options analysis and requires regular monitoring and evaluation of existing and new measures. By the end of the year it is hoped that an agreement will have been reached by the Ministers on the key elements of the process: an approach to strategy, immediate measures for 2000-02, selection of alternate paths and an implementation plan. John Spacek, Government of Manitoba, focused on the Issues Tables dealing specifically with the mandate, challenges and the work plan of the Transportation Table. The Issues Tables included eight Horizontal Tables (International Mechanisms, Analysis & Modeling, Public Education, Technology, Emissions Trading, Sinks, Credit for Early Action and Voluntary Actions) and seven Sector Tables (Transportation, Electricity, Agriculture, Industry, Municipalities, Forestry and Buildings). The Transportation Table’s mandate is twofold: • To identify and assess costs, benefits and impacts of greenhouse gas reduction measures and • To build incremental packages to reach the Kyoto target and beyond The idea is to begin with the easier, cheaper options and to progress to more difficult, more expensive options. Spacek stressed that ‘everything is on the table’: regulation, incentives, taxation, technology, promotion, emissions trading and modal shifts. The beginning point for the Transportation Table was its foundation paper written in December 1998. The Table has devised an analytical work plan to study vehicle technology and fuels, freight and passenger services. To date, 24 analytical studies have been conducted on such diverse topics as freight, fuels, vehicle, infrastructure, technology, taxation, competitiveness, urban/inter-city passenger and emissions trading. Mid way through the summer the table will produce its options paper. Two rail freight studies are now in draft report form: • Review the socio-economic, regulatory, policy or taxation issues affecting the railway’s ability to improve greenhouse gas emissions performance • Survey of rail industry technological and operation improvements and alternatives. 15
The conclusions are favourable. Anticipated savings will come from ongoing cost effective measures such as: new locomotives, automatic shut down devices/ reduced idle time, lubrication between rail gauge and wheel flange and freight car improvements (heavier payload & less tare weight). Changes have been recommended in capital cost allowance rates that would serve as added incentives for further introduction of new technologies and infrastructure improvements needed to reduce greenhouse gases. The main goal of the Options Paper is to establish effective measures to reduce the emission of greenhouse gases. The challenge is serious as demand is currently outstripping efficiency. In establishing these mitigating measures, government must assess the costs of the measures and upon whom the major portion of the associated burden will lay. As Conrad stated earlier, no region or sector should be asked to bear an unreasonable burden of action. The ministers will review and assess the Options Paper in the fall of 1999. The Political Reality Darren Praznik, Minister of Highways and Transportation, Province of Manitoba, brought 6 key messages to the workshop. The highway system is tired. The Province has a total of 12,000 km in its road network. Each year about 200 km or roughly 1/60th of the system is replaced. However, the average life of a road in the Province is 20 years. In sum, we should be replacing three times as much road as we are in any given year simply to maintain them. Development of short-line railways is critical. In transport, few areas have been more significantly impacted by change than rail. The future story of the industry, in part, will be about the development of short-line railroads. A prime example in Manitoba will be the growth, development and expansion of the Churchill line and the Port of Churchill that presents an alternative to the Mississippi River system. When we consider the replacement rate of highways and the current rate of rail line abandonment, it is essential that the Province work to promote and support the short-line industry. Our current highway structure cannot take the added traffic from the abandonment of rail branch lines. Common running rights on rail lines. A key recommendation of the Estey Report is the need to establish common running rights on the existing main lines in Canada. The Minister believes that there is a need to protect the ability of shippers to access markets through this type of policy initiative. Highway funding must be resolved. A major problem that all provinces face is federal road fuel taxation and its failure to support the maintenance of the road infrastructure. While the province collects approximately $147 million, it returns roughly the same amount to roads. The federal government collects $5 billion from fuel taxes and only returns $300 million, virtually 16
none of it for the Western Provinces. There is a clear need to firmly establish in principle and practice a dedicated system of taxation for highways and road infrastructure and in fact, for the entire transportation system. We need good infrastructure planning. The Minister spoke about trends and future developments. In particular, he referred to Mayor Glenn Murray’s interest in good infrastructure planning and the need to ensure that Winnipeg and Manitoba are well served by its infrastructure. The current topic on this agenda is intermodal infrastructure. We must ensure that the facilities in Manitoba will meet the needs of the future. Increasing fuel taxes is not a political reality. There is a thin line to be negotiated between reality and responsibility when addressing the issue of transportation and the environment. The Minister brought the practical reality of the equation to the forefront when he stated that no elected public official is going to support a flat out increase of 10 cents per litre for fuel. In fact, this issue is not even on the table for a province and a country where so many people commute daily upwards of an hour or more. The key to solving much of the environmental problems in transport is to become leaner and more competitive; maximizing efficiencies and reducing delays. The Minister left us with a challenge; we must find ways to reduce costs because first and foremost, Manitoba must remain competitive in its marketplace. As we address the environmental issues, the solutions that are found must fit within this context. Observations The discussion about whether global warming is fact or fiction has come to an end. The scientific data supports the notion that our climate is changing and that man is contributing to the change. Our governments have accepted this reality and have begun the process of mitigating the problem and creating a better environment for the future. The objective of this workshop was to establish where the rail industry fits in the overall equation and assess its ability to achieve the aggressive targets that have been established under the Kyoto accord for greenhouse gas emissions. The evidence presented by the railways, the regulators, the locomotive manufacturers and remanufacturers, and the locomotive engine testing experts support the conclusion that in many areas the industry is well on its way to meeting emissions standards today. With continued development of existing technologies, the industry will meet the EPA standards for greenhouse gas emissions. All parties are actively engaged in the process and the goals appear to be achievable. Bob Ballantyne stated in his concluding remarks to the workshop that “railways are part of the solution rather than the problem”. Their ability to move freight tonnage with the least impact on the environment has been established. The long term modal shift from railways to trucking has 17
been identified as one of the major problems in the transportation sectors contribution to greenhouse gases. The railway industry will meet the challenge of achieving the emission standards. In doing so, it can look forward to reversing the trend and enjoying the benefits of the required modal shifts necessary for Canada to meet its goals. All the industry requires to achieve this goal is equitable treatment in relation to its competing modes. Change will continue for the rail industry. As in the past, the regulators will play a significant role in shaping the future of the industry. As they shape that future, the regulators must recognize a number of fundamental issues that were highlighted during the workshop: Timing The transportation industry in Canada has been driven by public policy over a long period of time. Fundamental changes to the system cannot take place quickly. Options must be designed to reflect the current reality that our transportation systems compete in the global economy. Taxation The Minister of Highways and Transportation brought political reality to the workshop with the statement that an increase in fuel taxes was not on. In fact the political agenda for the short term is tax reduction. The public will no longer stand for the level of taxation that exists in Canada. The problem of using fuel taxation for general purpose funding must end. Taxation must be balanced with transportation infrastructure requirements. Cost effectiveness The importance of fuel cost to a railway’s operating budget was emphasized by several of the participants in the workshop. The option of increasing rail expenses to achieve the emission targets is not a viable option. The railways, like any other business enterprise, must make a good return on their investment and cannot be used for public policy decisions as they have been in the past. Regulation Regulation is not the answer to the problem. Public policy must be established to set the direction and identify the standards that the industry must strive to achieve. Our industry operates within the open world economy. We depend on trade. Any regulation must reflect this reality and provide the rail industry with equal access and a level playing field. A framework for self-monitoring should be a key element of any implementation strategy. Doug Duncan Transport Institute University of Manitoba 18
Survol Les chemins de fer et l’environnement – Atelier de travail Une renaissance L’atelier de travail des chemins de fer et de l’environnement a réuni tous les principaux participants de l’industrie du chemin de fer afin d’élaborer une vision très large du futur. Le résultat a été une évaluation des défis devant être relevés pour mettre fin aux préoccupations environnementales du Canada. La conclusion générale de l’atelier de travail est que l’industrie du chemin de fer offre un moyen de réduire l’impact environnemental causé par le transport des marchandises au Canada. Les principaux moyens permettant de réduire les émissions entraînées par le transport relèvent des domaines des changements dans l’activité humaine, des virages modaux et de la technologie. Les changements dans l’activité humaine sont très difficiles à accomplir, toutefois, un virage dans le mode de transport, soit des camions vers les chemins de fer, s’avère pratique, réalisable et constitue une solution concrète à une importante partie du problème des émissions découlant du transport. Comme nous l’avons appris au cours de l’atelier de travail, l’utilisation de la technologie existante apportera une importante contribution à la réduction des émissions. Le futur dépeint une renaissance pour les chemins de fer. Le problème Richard Gilbert, du Centre pour un transport durable, a ouvert la voie pour l’atelier de travail en mentionnant la nécessité pour toutes les parties de se concentrer sur les émissions en définissant la relation entre le transport et l’environnement et en décrivant le Centre. Le point de départ de la discussion est une compréhension commune du « transport durable ». Le Centre le décrit comme suit : « Un transport répondant à nos besoins économiques et sociaux sans mettre en péril la santé humaine ou l’environnement, ou, plus simplement, un transport qui ne ruine pas la planète pour nos petits-enfants ». Le Centre est un organisme canadien à charte, sans but lucratif, parrainé par Environnement Canada et Transports Canada. Son rôle consiste à assurer une direction dans le cadre de la recherche d’un transport durable au Canada, en facilitant les actions collectives, contribuant ainsi à la durabilité canadienne et mondiale. L’importance de s’attaquer au problème des émissions liées au transport au Canada a été démontrée dans les points suivants : le transport est responsable 19
• de la plus grande partie de la pollution interne canadienne • d’environ 1/3 de notre contribution à la pollution mondiale • de plus de la moitié de l’augmentation actuelle des gaz à effet de serre • de plus des 2/3 de la consommation de pétrole canadienne De remarquables changements dans l’environnement et dans la consommation de pétrole sont prévus. Le graphique de la température en surface de l’hémisphère Nord au cours des 1000 dernières années démontre le réchauffement depuis 1900. Un nouveau point de référence a été établi en 1998 en tant qu’année la plus chaude dans l’histoire écrite et l’augmentation incrémentielle la plus importante d’année en année. Le réchauffement de la planète ne constitue plus une question litigieuse au sein des cercles avertis. Le besoin d’aborder cette question a été défini. Température en surface de l’hémispère Nord au cours du présent millénaire LA TEMPÉRATURE (° C) ANOMALIES DANS Erreur estimée _ _ _ reconstruction (apr. J.-C. 1000-1980) ____ données instrumentales (apr. J.-C. 1902-1998) …… période de calibrage (apr. J.-C. 1902-1980) moyens moyens moyens ____ reconstruction (continue durant 40 ans) __ . __ tendance linéaire (apr. J.-C. 1000-1850) continus estimés Année De Mann, Bradley et Hughet.- Geophysical Research Letters, 15 mars 1999. La demande pour des produits pétroliers pour le transport a augmenté de façon continue en raison de l’accès mondial au pétrole bon marché. Ceci est sur le point de changer de façon saisissante étant donné que des importantes découvertes relatives au pétrole ont été faites à partir des années 60. Les modèles prédictifs indiquent que l’accès au pétrole bon marché ne sera plus possible au cours de la prochaine décennie. Par conséquent, la production de pétrole passera à des sources plus coûteuses, telles que les projets de sables pétroliers et l’utilisation de moyens mécaniques plus coûteux pour extraire le pétrole des puits classiques. Les segments du graphique des découvertes prévues, de l’extraction et de la demande mettent le problème en relief. 20
Découvertes, extraction et demande réelles et prévues Actual pour and le pétrole projected classique, world-wide de 1920 discovery, à 2040 extraction, (en milliards and demand de barils par oil, for conventional année) 1920-2040 (in billions of barrels per year) 40 DEMANDE DEMAND 30 DISCOVERY DÉCOUVERTES 20 EXTRACTION EXTRACTION 10 0 1920 1940 1960 1980 2000 2020 2040 Data sources: Oberle Oil Corporation; International Energy Agency CST Sources pour les données: Oberie Oil Corporation; Agence internationale de l’ l'énergie Un impact économique négatif découlant des prix plus élevés du pétrole peut être évité seulement si la demande pour le carburant est diminuée. La recherche actuelle indique que la technologie semble constituer moins de la moitié de la solution. L’autre moitié doit provenir de changements profonds dans les partages de modes et dans l’activité. L’OCDE remarque que les efforts pour atteindre le transport durable sont concentrés dans ces domaines : Domaine Passagers Marchandises Technologie 41 % 47 % Occupation 15 % 10 % Virages dans les modes 7 % 24 % Activité 26 % 19 % Coupures 11 % 0 L’augmentation des prix du pétrole aura des effets importants sur la production de pétrole. Tandis que les prix augmenteront, la production de pétrole non classique augmentera, ce qui en bout de ligne, pourrait entraîner un coût d’extraction de l’énergie plus élevé que l’énergie extraite. De ce fait, l’impact environnemental de la production de l’énergie est susceptible d’être également plus important. 21
Les chemins de fer du Canada, aujourd’hui et demain Bob Ballantyne , de l'Association des chemins de fer du Canada, a présenté les chemins de fer du Canada à l’atelier de travail, a clarifié le problème et a placé les chemins de fer du Canada dans le contexte des émissions liées au transport dans l’environnement. Le Canada doit réduire ses émissions de gaz à effet de serre de 6 % en vertu de la Convention de Kyoto. Le transport contribue à 27 % des émissions tandis que les chemins de fer représentent seulement 4 % des émissions liées aux secteurs du transport. Les chemins de fer fonctionnent depuis 162 ans au Canada et sont financés par le secteur privé. Les changements dans l’industrie reflètent les principaux changements économiques dans l’histoire; les syndicats, les guerres mondiales, les banqueroutes et les nationalisations, la construction d’autoroutes, l’aviation civile, la construction de voies maritimes, la conversion au diesel, le libre-échange, la déréglementation partielle et récemment, la privatisation de Canadien National. En réaction aux changements et au développement de l’économie mondiale, les chemins de fer nord-américains se sont regroupés en 4 « méga » chemins de fer de catégorie 1 et 500 transporteurs de courtes lignes ou régionaux aux États-Unis et en deux chemins de fer de catégorie 1 et 42 transporteurs de courtes lignes ou régionaux au Canada. Un résultat très important du changement est la réduction de la tonne/kilomètre payante, soit de 2,54 cents en 1989 à 2,35 cents en 1997, une baisse de 7,5 %. Cet avantage pour les expéditeurs a été obtenu par le biais d’accroissements importants de la productivité, d’une augmentation de 93 % de la tonne/kilomètre payante (TKP) par employé depuis 1998, tout en entraînant un record de tous les temps de 304,2 milliards de TKP. Une conséquence grave de la diminution de la TKP est la portion importante, soit 19,5 milliards de TKP sur un total de 304,2 milliards, nécessaire pour payer la facture de 458,9 milliards de dollars pour la taxe sur les carburants, la taxe foncière et les autres taxes de vente. Les taxes sur les carburants pour les chemins de fer ne sont pas identique partout au Canada, ne reflètent pas l’investissement d’infrastructure et ne se préoccupent pas de la réalité du problème des émissions dans le secteur du transport. Ayant ouvert la voie pour l’environnement des chemins de fer, Bob a placé les chemins de fer dans le contexte du transport du tonnage de marchandises au Canada et du problème des émissions de gaz à effet de serre auquel nous faisons face actuellement. Milliards de TKP Consommation de carburant (litres) Chemin de fer 304 2,15 milliards Camions 233 10,9 milliards La performance plus efficace des chemins de fer est le résultat d’une résistance au roulement inférieur, exprimée en tant que pourcentage du poids sur les axes. Pour les trains, la résistance 22
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