May 26, 2011 Northwest Clean Air Agency Attention: Laura Curley Re: information to Reduce Vehicle Miles Traveled and Promote Economic Vitality by Enabling Under Utilized Shipping Transactions Via Web based/cell Phone Platforms as part of the GHG Mitigation Program Dear Ms. Laura Curley: I am pleased to submit our Information for a project to Reduce Vehicle Miles Traveled and Promote Economic Vitality by Enabling Under Utilized Shipping Transactions Via Webbased/Cellular Platforms. The attached information describes our potential project and the anticipated benefits. It includes a brief description of our methods, estimated costs, and a schedule. I attended the Pitch Fest and happily observed numerous local projects presented that represented diverse ideas all aimed at reducing our current GHG emission status. It is inspiring, and I believe our community can accomplish all that we set out to do and I am honored to be a part of it. Our proposal is in its infancy, but we truly believe we can be successful and our concept can scale and have a far reaching impact on GHG reduction. Our team has an array of background experience in environmental science, engineering and technology. We have worked with and for local governments and businesses alike. We recognize that this multi disciplined experience brings strength and different perspectives to the depth of our collective experience. I also bring experience developing and working with partners and stakeholders through the planning and implementation of projects. I look forward to the challenges that we will undoubtedly encounter, for if it were easy it would have been done already. I will be your point of contact. We look forward to hearing you. Please feel free to contact me if you have any questions. Respectfully, Project Manager/Team Lead Page i 2321 Lynn Street Bellingham WA 98225
Information to Reduce Vehicle Miles Traveled and Promote Economic Vitality by Enabling Under Utilized Shipping Transactions Via Web based/cellular Platforms Submitted to Northwest Clean Air Agency GHG MITIGATION PROGRAM May 26, 2011 By Brad Martin Jacob Hartsoch (Submitting as Sole Proprietors) Page ii 2321 Lynn Street Bellingham WA 98225
1 Introduction 1.1 Problem Statement Greenhouse Gas emissions resulting from the transport of goods and services and private parties amounts to one of the greatest proportions of CO2 generation in the U.S. and in 2008 transportation generated 1,785.3 million metric tons, or 32% of the total CO2 generated (EPA, 2010). Fossil fuel consumption has increased over 18% since 1990. According to the EPA, changes in emissions from fossil fuel combustion have been the dominant factor affecting U.S. emission trends. To add to this problem, there is an under utilized transport capacity for the shipping of goods. Recent estimates suggest that shipping capacity is under utilized with 30% of trucks running empty, and of those carrying, 20% are under filled (USDOT, Omni Consulting Group). This trend occurs globally and the UN reports that trucks run empty 45% of the time. 1.2 Mitigation Goals Reduction of GHG emissions created by under utilized transportation capacity is a nationwide priority. Because transportation is such a large GHG emission producer, a small reduction of GHG emissions from the transportation sector would have a much greater effect than large reductions from some of the lesser CO2 producing activities. President Obama has targeted a 28% reduction of GHG pollution created by the Federal Government by 2020 (White House, 2010), and the Senate through the CLEAN TEA (S 575) and the American Power Act (2010) wish increase transportation efficiencies and attain an 80% reduction of net GHG by 2050. EPA and USDOT have been tasked with developing plans to meet these targets and three general methods have been proposed: Lower GHG Fuels Improved Vehicle Technologies Reduced Vehicle Miles Travels (VMT). 2 Opportunities 2.1 Global Vision There is an underutilization of existing transport capacity that inherently creates needless waste by duplicating efforts and miles driven. We believe there is an opportunity to reduce VMT by consolidation of trips and increasing capacity. We believe that this can be accomplished with existing technology and be available to individual shippers and large companies, and that it can be done in such a way as to create economic vitality. While voluntary reductions and awareness can bring about behaviors that promote conservation, true success of GHG emission reduction will be realized when it becomes economically advantageous. We have repeatedly observed that conservation efforts that impair economic vitality, even in perception, will forever be challenged and meet with resistance. A solution that can increase economic vitality and be successful at a local and regional level can be transferable to a global level, and Page 1 2321 Lynn Street Bellingham WA 98225
thus have far reaching and meaningful GHG reduction. With the additional motivation of creating economic advantages to both the supply and demand side, we predict greater participation than with a voluntary driven incentive, and therefore greater success in reaching the GHG reduction objectives. 2.2 Local Beginnings While global reduced VMT is an ambitious and noble target in the desired outcome to curb GHG emissions, an immediately available and implementable mechanism to accomplish this at the global level is not currently available. However, in the information era, small beginnings can have rapid global impacts. Development and implementation of a successful mechanism to reduce VMT at a local level can be easily and instantaneously transferred to the greater global community. We believe our proposal provides this opportunity. 3 Proposal to Reduce VMT and Promote Economic Vitality in Commercial Shipping 3.1 Proposal and Anticipated Benefits Our proposal is to reduce VMT in the commercial shipping industry. Current estimates show that truck run empty between 30 45% of the time. We suspect that this number is greater for small trucking companies who do not have centralized dispatch systems and that opportunities to increase their capacity are missed because of a lack of information. We also recognize that people who want to ship items may be willing to wait or assist with the coordination if they can ship an item at a reduced cost. Therefore, we believe there is simultaneously a vast demand for less expensive shipping and an under utilized shipping capacity, therefore by linking these opportunities we can promote economic activity that also reduces VMT. To accomplish our goal of increasing truck capacity and reducing VMT, we will create a database/website that connects locations and availability of supply (light/empty loaded trucks) to demand (parcels/items to be shipped). The objective is to provide small trucking companies with a community dispatch network that they can utilize to identify opportunities to increase load capacity on their routes. We recognize that small shipping companies may not have access to a central dispatch network nor frequent opportunities to monitor the internet. Therefore, we plan to utilize cellular platforms (cell phones, smart phones, tablets) that can easily notify truck drivers of available loads in their area with a simple interface. We believe that we can integrate existing and emerging technologies from cell phones into a living database that will identify when opportunities for connecting supply with demand exist, therefore enabling transactions between light load trucks and shipping needs. The anticipated benefits of this project are improved information that: identifies and communicates potential shipping transactions for light loads utilizes commonly available technology Page 2 2321 Lynn Street Bellingham WA 98225
notifies the users and provide them with real time information when transaction opportunities exist create economic benefits and opportunities for the participating users reduces GHG emissions, traffic, infrastructure wear, and operating costs by reducing VMT promotes self sustaining GHG reductions with potential global reach results in transferable technology with broad applications, at both local and global scales 3.2 Methods We propose to utilize existing locating devices (GPS and cellular devices cell phones, tablets, wifi devices, etc...), routing software, and spatial databases to identify opportunities between supply and demand to allow connections that can support potential transactions. The outcome will be fewer light loads and increased vehicle occupancy, therefore fewer trips traveled to accomplish the same net work. We propose to conduct the project in two phases: Phase 1 will be to develop a database and website prototype and test it locally; Phase 2 will be to expand to a regional scale. The resulting product will create a transferable platform that can be used to for a multitude of transportation services with both local and global applications. 3.3 Proposed Tasks We propose to accomplish the following tasks for Phase 1: Task 1: Discovery of Needs and Opportunities Identify and validate the improvement opportunity and define critical customer requirements Deliverable: Meet with a representative assortment of potential users to develop and document a usability model that would allow for easy access and understanding of the website interface that will allow users (small to mid size trucking companies, customers with loads, private parties) to easily share and find loads. Task 2: Development of Prototype Database Assess potential tools and techniques to develop a functioning prototype database and corresponding website that integrates the existing and emerging technologies necessary to enable the desired transactions Deliverable: Complete the publicly accessible web application, database, and mobile components necessary to facilitate the sharing of loads and increase transportation utilization. Page 3 2321 Lynn Street Bellingham WA 98225
Task 3: Implementation of System (Pilot) Initiate a working pilot in Northwest Washington to evaluate the database and website functionality Task 4: Measure and Improve Performance Assess the effectiveness and usability of the database and website using information from the pilot; identify flaws and product function and improve utilization as needed based on feedback and measurements Task 5: Control Performance Model potential outcomes and anticipated targets for implementation of Phase 2 Deliverables: Documentation of methods, assessment measures, and implementation strategies. 4 Estimated Project Costs and Schedule (Phase 1) Following are estimates for time and material costs. All work is estimated at a rate of $75/hour and work will be based on time and materials for actual work completed: Initial product design development and customer interviews 120 hours $9,000 Web application and database development 600 hours $45,000 Mobile component assessment and development 300 hours $22,500 Pilot initiation and marketing development 200 hours $15,000 Reports/Analysis 100 hours $7,500 Total Hours 1320 hours $99,000 Marketing expenses (Direct, no markup) $5000 Hosting, print materials, etc (Direct, no markup) $1000 TOTAL PHASE 1 COST ESTIMATE: $105,000 Delivery Schedule 1. Initial product design specification and customer evaluation report completed 2 months from initiation 2. Web application prototype completed 9 months from initiation 3. Mobile components completed 7 months from initiation 4. Pilot started 9 months from initiation 5. All reports and deliverables completed on Phase 1 12 months from initiation Page 4 2321 Lynn Street Bellingham WA 98225
5 Team Members and Contact 5.1 Project Team and Qualifications, Project Manager/Team Lead Mr. Pittman has over 17 years of experience managing projects locally in the field of earth and environmental sciences. The past decade of his experience was in obtaining, managing, administering and implementing grants for local governments (Whatcom County, Nooksack Tribe). He is well versed in public outreach and public processes. During past 17 years, he has also participated in developing numerous plans, alternatives analyses, feasibility assessments and plan implementation. He has experience developing and working collaboratively with partners and stakeholders as well as coordinating with agencies. References: Jon Hutchings Assistant Public Works Director, Whatcom County (360) 676 6876 Richard Grout Department of Ecology: (360) 715 5203 Elly Hale US Environmental Protection Agency: (206) 553 1215 Luke Loeffler Congressman Rick Larsen s Office: (425) 252 3188 Brad Martin, Transportation Lead Mr. Martin has over 14 years of experience in the field of asset management and civil construction. The past decade of his experience was in the field of equipment management: buy/sell analysis, implementation of machine maintenance best practices, mobilization and demobilization of large scale equipment spreads and increasing machine utilization through time study analysis. During that time, he has also participated in development and innovation committees for the implementation of emerging technologies in machine telematics and exhaust gas recirculation. References: Ron Morford General Construction Co., retired: (206) 915 0901 Rick Rasmussen Rasmussen Co.: (206) 762 3770 Brian Weller Pacific American Commercial Co.: (206) 762 3550 Dale Laurin Delcon Industries: (480) 518 5420 Jacob Hartsoch, Technical Lead Mr. Hartsoch has over 16 years of direct experience in the management and hands on development of software projects and has completed work for companies including Microsoft, Sierra Online, and WRQ. At current, he heads up the development of Mobile Technologies for Education Logistics, Inc. In this capacity, he has managed the development of a prototype mobile GPS application into a suite of support products and web based services for the Education Transportation Industry. Mr Hartsoch is familiar with both mobile application and web development and has personally created and also managed the development of commercial products in both areas. Page 5 2321 Lynn Street Bellingham WA 98225
Recently Mr. Hartsoch worked with Education Logistics, Inc to develop a mobile application on multiple platforms and a supporting web based user experience to allow public school districts to inexpensively track the location of their fleet and optimize their routing based on collected data. Alongside Education Logistic s industry leading transportation routing software, these tools have combined to reduce fleet traffic by an average of 15%. http://www.linkedin.com/pub/jacob hartsoch/3/767/303 5.2 Contact for this Project is the project lead contact for this proposal Mailing address: 2321 Lynn Street Bellinghman, WA 98225 Email: pablopittman@gmail.com Phone: 360 815 4177 6 Proposed Partnerships and Potential Funding In addition to working with the Northwest Clean Air Agency, we propose the following partnerships: Bellingham Innovations Group The Bellingham Innovations Group and the BIG Idea Lab is an early stage business accelerator based in Bellingham that specifically targets helping web based businesses get off the ground. The BIG Lab is a network of resources, advisors and entrepreneurs turning new ideas into successful businesses and is a natural partnership. For a small equity stake, the group provides resources, workspace, and connections to help local web based startups succeed. Northwest Economic Council Innovation Resource Center The IRC was established to connect innovative start up businesses to resources that will help them to grow and thrive in Whatcom County. Funding Opportunities (grants) EPA Climate Protection Partnerships Division (CPPD) Grant Program Page 6 2321 Lynn Street Bellingham WA 98225