Areas of the State not meeting Federal Air Quality Standards. Fleet Rule for Transit Agencies

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California Air Resources Board Mobile Source Regulation Overview Mobile Source Control Division Areas of the State not meeting Federal Air Quality Standards 8-Hour Ozone 15 areas violate the standard PM2.5 Annual 2 areas violate the standard Diesel Particulate Matter Exposure 70% of known cancer risk from all air toxics Trucks and buses largest source of diesel PM Diesel Risk Reduction Plan adopted in 2000 Risk reduction goals by 2010 and 2020 Stringent New Engine Standards Cleaner Diesel Fuel (< 15 ppm sulfur) Ensure In-Use Emissions Performance Aggressive Reductions from In-Use Engines Nonattainment Unclassified/Attainment 2 In-Use Diesel Regulatory Activity Urban Buses (2000) Garbage Trucks (2003) School Bus Idling (2003) Stationary Engines (2004) TRUs (2004) Truck and Bus Idling (2004) Portable Engines (2004) Transit Fleet Vehicles (2005) Public Fleets & Utilities (2005) Cargo Handling Equipment at Ports and Rail Yards (2005) Port Trucks () Off-Road Vehicles () Truck and Bus Regulation (2008) Off-Road Agricultural Vehicles (Planned for 2011) Fleet Rule for Transit Agencies Fleet Rule for Transit Agencies Requirement Review Urban Bus Transit Fleet Vehicles Fleet based requirements, not BACT Required Reporting by January 31st Urban Bus Compliance Deadlines Fuel Path 1/1/ 1/1/2008 1/1/ Diesel 8 5% o r meet.0 1g / b hp - hr st and ard Alternative Fuel - - - PM Reduction from January 1, 2002 Baseline As of October 1, 2002: NOx Fleet average not to exceed 4.8g/bhp-hr 8 5% o r meet.0 1g / b hp - hr st and ard 1

TFV Compliance Deadlines Date % PM reduction from 2005 baseline December 31, 40% December 31, 2010 80% Fleet NOx Average 3.2 o r ret ire 19 9 7 and earlier M Y 2.4 o r ret ire 2 0 0 1 and earlier M Y Annual Reporting Web based Due January 31 through 2017 Separate report for Urban Buses and TFV: Number, engine mfr & make, engine model year for all engines in buses, and fuel used as of January 1 st of that year Fleet Rule for Solid Waste Collection Vehicles Solid Waste Collection Vehicle Owners Municipalities Private Companies Solid Waste Collection Vehicles 1960-2006 Model Year Diesel Engines Greater than 14,000 lbs. GVWR Collects residential and commercial waste for a fee Not based on body type, but how it is used Fleet Rule for Solid Waste Collection Vehicles Apply BACT to each engine Model year specific implementation schedule Keep records and label each vehicle Remain in compliance SWCV Implementation Schedule Group Engine Model- Years Percentage to use BACT 1 1988-2002 10% 25% 50% 2a 1960 1987 15% (Total Fleet < 15) 40% 80% 2b 1960 1987 (Total Fleet > 15) 25% 50% 75% 3 2003 2006 50% Compliance Deadline 2004 2005 2006 2005 2006 2008 2005 2006 2008 2010 SWCV BACT Options Repower 0.01 g/bhp-hr PM Standard Alternative-Fuel Engine Retrofit with Highest Level Diesel Emission Control Strategy (DECS) Retire Vehicle Sell out-of-state Scrap Back-up (less than 1000 miles per year) 2

Compliance Extensions Available Available under certain circumstances Early Implementation No verified DECS available Dual-fuel or bi-fuel engine Engine one year from retirement Experimental DECS Solid Waste Collection Vehicle Record Keeping Requirements Fleet vehicle records Information on each vehicle Hard copy or computer records Vehicle labeling Install durable and legible labels On driver door jamb or location known to driver Compliance statement Statement certifying that engines are in compliance Signed by agency agent and dated Fleet Rule For Public Agencies and Utilities Vehicles owned, leased, or operated by a municipality or utility Diesel vehicles over 14,000 GVWR All heavy-duty engines* 1960 to 2006 model-year engines* *Approved changes to Public Fleet Rule to include all heavy-duty engines and - engines that do not meet the 0.01g/bhp-hr engine emission standard. Who is Covered? A municipality is a city, county, city and county, special district, or a public agency State of California, any department, division, public corporation, or public agency of this State or two or more entities acting jointly, or the duly constituted body of an Indian reservation or Rancheria A utility is a privately owned company that provides the same or similar services for water, natural gas, or electricity as a public utility operated by a municipality Not Telecommunications Vehicles Exempt From Rule Emergency vehicles Off-road vehicles School buses Vehicles subject to Fleet Rule for Transit Agencies, Fleet Rule for Solid Waste Collection Vehicles, Truck and Bus Rule (federal vehicles) Key Elements of the Fleet Rule for Public Agencies and Utilities Apply BACT to each engine Model year specific implementation schedule Keep records and label each vehicle Remain in compliance 3

Implementation Schedule for All Fleets Group Engine Model- Years Percentage of Group to use BACT 1 a 1960-1987 20% 2 1988-2002 20% 3 2003 2006 4 (Includes all dualfuel and bi-fuel engines) and newer certified above 0.01g/bhp-hr std. 50% Compliance Deadline as of December 31 2011 2011 2010 100 % 2012 a An owner may not use a Level 1 technology as BACT on Group 1 engines PAU BACT Options Repower 0.01 g/bhp-hr PM Standard Alternative-Fuel Engine Retrofit with Highest Level Diesel Emission Control Strategy (DECS) Retire Vehicle Sell out-of-state Scrap Low usage 2004-2006 municipality owned Dual-engine sweeper Low Population Counties Special provisions for low population counties (LPC) Population less than 125,000, as of July 1, 2005 23 counties identified in regulation Applied/Approved for LPC 31 counties 12 cities Implementation Schedule for Low Population Counties Group Engine Model- Years BACT % Deadline as of December 31 st 1 1960-1987 20% 40% 80% 2 1988-2002 20% 40% 80% 3 2003 2006 (Includes all dual fuel and bifuel engines) 4 and newer certified above 0.01g/bhp-hr std 20% 40% 80% 20% 40% 80% 2011 2013 2015 2017 2008 2010 2012 2014 2016 2011 2012 2013 2014 2015 2012 2013 2014 2015 2016 Compliance Extensions Available Available under certain circumstances Early Implementation No verified DECS available Dual-fuel or bi-fuel engine Engine one year from retirement Experimental DECS Accelerated turnover option (low-pop county) Light-heavy duty engines Optional Delay of Intermediate and Final Compliance Deadlines for Group 2 and Group 3 Privately-Owned Utility Vehicles Municipality and Utility Record Keeping Requirements Fleet vehicle records Information on each vehicle Hard copy or computer records Compliance statement Statement certifying that engines are in compliance Signed by agency agent and dated Vehicle labeling Install durable and legible labels On driver door jamb or location known to driver 4

Transport Refrigeration Units (TRU) Regulation TRUs equipped on trucks, trailers, shipping containers,or railcars that operate in California California Environmental Protection Agency Air Resources Board Current Status TRU Regulation Became Law Dec. 2004 Currently Enforced Planned Amendments to Board Fall 2010 Change in-use standard for model year 2003 engines that comply by December 31, 2010 Dealers shall provide ARBER registration information to end-users at point of sale for new units and engines Bill of sale must disclose to buyer if unit is noncompliant for use in California Basic Requirements TRU Regulation Report by July 31, Registered in ARBER All TRUs based in California Voluntary for TRUs based outside California Operator Reports Affects all California terminals where TRUs are assigned Meet in-use performance standards Affects all TRUs that operate in California Phased compliance schedule seven years after engine model year All TRU engines must eventually meet the Ultra-Low-Emission TRU (ULETRU) in-use standard Engine Model Year 2001 In-Use Performance Compliance Schedule Compliance Date (Delayed to Dec. 31, ) 2002 Dec. 31, 2003 Dec. 31, 2010 2004 Dec. 31, 2011 2005 Dec. 31, 2012 2006 Dec. 31, 2013 Dec. 31, 2014 2008 Dec. 31, 2015 Dec. 31, 2016 2010 Dec. 31, 2017 2011 Dec. 31, 2018 2012 Dec. 31, 2019 2013* Dec. 31, 2020 Requirement TRU Regulation Install Level 2 PM VDECS, then by Dec. 31, 2015, install Level 3 PM VDECS or replace engine Install Level 2 PM VDECS, then by Dec. 31, 2016, install Level 3 PM VDECS or replace engine Install Level 2 PM VDECS, then by Dec. 31, 2017, install Level 3 PM VDECS or replace engine Install Level 3 PM VDECS or replace engine 2014* Dec. 31, 2021 Note: Generally, the compliance date is December 31st of model year plus 7 years. * < 25 hp Tier 4 engines do not meet final requirement (ULETRU). For More Information TRU website: http://www.arb.ca.gov/diesel/tru.htm TRU List Serve: http://www.arb.ca.gov/listserv/listserv_ind.php?listname=tru ARBER website: http://arber.arb.ca.gov TRU Help Line: 1-888-878-2826 (1-888-TRU-ATCM) TRU Regulation Drayage Truck Regulation Affects class-eight diesel-fueled trucks entering California's ports and intermodal rail yards California Environmental Protection Agency Air Resources Board 5

Status Drayage Truck Regulation Compliance Schedule by Truck Engine Model Year Drayage Truck Registry (DTR) Became law - December 2008 In effect and enforceable Enforcement crews at ports Planned amendments, Fall 2010 Moving requirement back Truck Engine Model Year 1993 and older 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Emission Requirement Schedule Prohibited starting Jan. 1, 2010 Starting Jan. 1, 2010, Reduce PM emissions by 85% And Starting Jan. 1, 2014, meet engine emission standards Truck Engine Model Year 2004 2005 2006 (T&B Rule) 2008 (T&B Rule) (T&B Rule) Emission Requirement Schedule Starting Jan. 1, 2012, Reduce PM emissions by 85% And Starting Jan. 1, 2014, meet engine emission standards Starting Jan. 1, 2013, Reduce PM emissions by 85% And Starting Jan. 1, 2014, meet engine emission standards By Jan. 1, 2021, meet 2010 engine emission standards By Jan. 1, 2022, meet 2010 engine emission standards By Jan. 1, 2023, meet 2010 engine emission standards All trucks registered prior to entry Required for enforcement Optional truck labels available Check compliance status online - available to public www.arb.ca.gov/drayagetruck Additional Requirements Dispatching broker carriers have a responsibility to must use compliant vehicles and can be held liable For More Information Drayage Truck Regulation Drayage Website: www.arb.ca.gov/drayagetruck Drayage List Serve: http://www.arb.ca.gov/listserv/listserv_ind.php?listname=porttruck Drayage Truck Registry: http://arber.arb.ca.gov Drayage Truck Hotline: (888) 247-4821 Truck and Bus Regulation California Environmental Protection Agency Air Resources Board 6

Status Became Law January 2010 Planned Amendments, Fall 2010 Changes to deadlines Amendments to primary compliance options BACT, Percent of Fleet, Fleet Average Credits Higher usage thresholds Logging truck provision Staff Report available in Fall 2010 Workshops (June, July) Formal comment period 45-days prior to board hearing Applicability Diesel trucks and buses operating in California Greater than 14,000 GVWR Shuttle buses that frequent transit centers-any GVWR Agricultural use yard trucks with off-road engines Interstate, intrastate, international, and other Any person, business, or federal government agency who owns, leases, rents, or sells a vehicle in California California based brokers and dispatchers Must verify that each hired or dispatched vehicle is in compliance with the regulation Summary of Current Regulation Filter requirements to reduce PM emissions Phased in beginning January 1, 2011 Requires filters on all trucks by 2014 Requirements to reduce NOx emissions Phased in beginning January 1, 2013 Requires cleanest available engines by 2023 Three compliance options Best available control technology (BACT) schedule Percentage of fleet requirements Fleet average Special provisions, credits Sales disclosure requirement Special Provisions Summary Agricultural vehicles Manufacturer delays Attainment area operation Motor coaches Certain cab-over engine PM retrofit safety truck tractors Retirement credits Early PM retrofit credits School buses Low usage Small fleets Lower usage Three day pass Hybrid and alternative Two engine sweepers fueled vehicles credits Unique vehicles Sales Disclosure Requirement for disclosure on bill of sale Disclosure language: An on-road heavy-duty diesel or alternative-diesel vehicle operated in California may be subject to the California Air Resources Board Regulation to Reduce Particulate Matter and Criteria Pollutant Emissions from In-Use Heavy-Duty Diesel Vehicles. It therefore could be subject to exhaust retrofit or accelerated turnover requirements to reduce emissions of air pollutants. For more information, please visit the California Air Resources Board website at http://www.arb.ca.gov/dieseltruck. Additional Requirements Fleet Owner Exemption: Dealer s Vehicle Awaiting Sale For vehicles that you do not intend to operate or offer for hire Leased Fleet Requirement Less than 1 year Lessor 1 year or more Lessor or is written as Lessee California based brokers and dispatchers Must verify that each hired or dispatched vehicle is in compliance with the regulation 7

www.arb.ca.gov/dieseltruck Heavy Duty Vehicle Greenhouse Gas (Tractor Trailer GHG) Regulation Early Action Measure under AB 32 The Global Warming Solutions Act of 2006 Affects 53 foot and longer box-type trailers and the tractors that pull them operating in California. Reduce Green House Gas Emissions by Improving: Tractor Aerodynamics Streamlined hood, sleeper cab roof fairings, gap fairings, fuel tank fairings, aerodynamic bumper and mirrors Trailer Aerodynamics Side skirts, front gap fairings, rear trailer fairings Tire Rolling Resistance Low rolling resistance (LRR) tires Smartway Program Information: http://epa.gov/smartway/ Front Trailer Gap Fairings Side Skirts LRR Tires Aerodynamic bumper Aerodynamic mirrors Aero profile tractor Integrated roof fairing Fuel-tank skirts Cab side gap fairings Status Became Law January 1, 2010 Planned Amendments, Fall 2010 Additional phase-in option for large fleets Additional flexibility for fleets to report Additional delayed compliance for certain refrigerated vans Storage trailer exemption Drayage exemption clarified Modifications to verified equipment Other clarifying language Tractor Requirements Tractor Requirements 2011+ model year (MY) sleeper cabs: SmartWay certified as of 1/1/2010 2011+ MY day cabs: low rolling resistance tires by 1/1/2010 All pre-2011 MY sleeper cabs & day cabs: low rolling resistance tires by 1/1/2012 Trailer Requirements Trailer Requirements 2011+ MY 53-ft+ box-type: SmartWay certified or Retrofitted with SmartWay technologies by 1/1/2010 Low rolling resistance tires (1.5%+ fuel efficiency improvement) Aerodynamic devices» 5%+ fuel efficiency improvement for dry van» 4%+ fuel efficiency improvement for reefer van Pre-2011 MY 53-ft+ box-type Same requirements as 2011+ MY trailers Must comply by 1/1/2013 or choose delayed compliance option 8

Truck and Bus Regulation Sales Disclosure Requirement for disclosure on bill of sale Disclosure language: A heavy-duty tractor and 53-foot or longer box-type trailer operated in California may be subject to the California Air Resources Board Heavy-Duty Vehicle Greenhouse Gas Emission Reduction Measure. These vehicles may be required to use low-rolling resistance tires and meet aerodynamic equipment requirements to reduce greenhouse gas emissions. For more information, please visit the California Air Resources Board website at www.arb.ca.gov/cc/hdghg/hdghg.htm Definition of Owner The Owner is the person registered as the owner by the DMV, except in the following situations: Situation Tractor/trailer under third-party maintenance contract Tractor/trailer owned by Federal government (not registered by DMV) Leased tractor Leased trailer Owner Person contracted to maintain/install aero/lrr tires Federal Government Lessee: If lease or contract includes disclosure, otherwise lessor Lessee: If lease or contract includes disclosure and allows modification/ exchange of trailer for pre 1/1/2013 leases, otherwise lessor is owner Disclosure Language Leasing of Tractors The lessee of this heavy-duty tractor understands that when using a heavy-duty tractor to pull a 53-foot or longer box type trailer on a highway within California compliant with sections 95300-95311, title 17, California Code of Regulations, and that it is the responsibility of the lessee to ensure this heavy-duty tractor is compliant. The regulations may require this heavy-duty tractor to have low rolling resistance tires that are U.S. Environmental Protection Agency (U.S. EPA) Verified SmartWay Technologies prior to current or future use in California, or may entirely prohibit use of this tractor in California if it is a model year 2011 or later tractor and is not a U.S. EPA Certified SmartWay Tractor. Disclosure Language Leasing of Trailers prior to January 1, 2013 The lessee of this box type trailer understands that when using a heavy-duty tractor to pull a 53-foot or longer box type trailer on a highway within California, the box-type trailer must be compliant with sections 95300-95311, title 17, California Code of Regulations, and that it is the responsibility of the lessee to ensure this box-type trailer is compliant. The regulations may require this trailer to have low rolling resistance tires and aerodynamic technologies that are U.S. Environmental Protection Agency Verified SmartWay Technologies prior to current or future use in California. Additional Requirements California Based Shippers and Brokers Responsible for compliance with rule Taken proactive steps working with ARB, owners, and/or motor carriers to ensure goods are shipped in compliant tractors and trailers. GHG Regulation Page www.arb.ca.gov/cc/hdghg/hdghg.htm 9

Brochures & Fact Sheets the Truck Stop - Online Resource Tools For Customer Service www.arb.ca.gov/truckstop 10