In December 2007, JCPenney and one of our key port transportation providers, Pacer Distribution Services, Inc., joined the Coalition for Responsible Transportation (CRT) and committed to convert the Pacer truck fleet carrying our imports at the ports of Los Angeles and Long Beach to low-emissions, clean-diesel technology. Los Angeles and Long Beach are the ports of entry for a substantial portion of the merchandise we import from the Asia-Pacific region.

CRT’s voluntary truck replacement program is based on a leasing model providing owner-operators with new, clean trucks through a private-sector financial arrangement.

In December 2008, Pacer took delivery of more than 20 clean-diesel tractors under this joint initiative. The new trucks, which replace aging diesel trucks currently in use by independent owner-operators in Pacer’s port network, are powered by clean-diesel engines capable of operating on ultra-low-sulfur diesel fuel or B20 biodiesel. Each truck reduces nitrogen oxide emissions by 78 percent and particulate matter emissions by 90 percent compared with a typical truck it replaces.

Currently, 100 percent of the fleet hauling JCPenney merchandise meets the LA and Long Beach ports’ emissions goals, well ahead of the ports’ 2012 deadlines for replacing older trucks. We anticipate implementing clean truck programs at additional ports, with the goal of being ahead of any planned changes in state or port requirements.