Attachment 1

Final Regulation Order 1

Submitted to OAL: July 28, 2006 Hearing Dates: September 17, and October 20 and 27, 2005 FINAL REGULATION ORDER

Amend the following sections of title 13, Californi a Code of Regulations, to read as set forth in the following pages:

Amend : Section 1956.1 Exhaust Emission Standards and Test Procedures – 1985 and Subsequent Model Heavy Duty Urban Bus Engines and Vehicles. Section 1956.8(a)(2)(A)&(B) Exhaust Emissions Stand ards and Test Procedures – 1985 and Subsequent Model Heavy Duty Urban Bus Engines and Vehicles Section 2023.1(a)(4)&(5) Fleet Rule for Transit Age ncies – Urban Bus Requirements Section 2023.4(b) Reporting Requirements for Transi t Agencies

Notes: The amendments are shown in underline to indicate additions and strikeout to indicate deletions. The symbol “* * * * *” means that intervening text not being amended is not shown. “[No Change]” means that no changes are being made to a specified subsection, the text of which is not show n.Attachment 1

Final Regulation Order 2

Submitted to OAL: July 28, 2006 Hearing Dates: September 17, and October 20 and 27, 2005 Amend Section 1956.1 to read as follows:

§ 1956.1 Exhaust Emission Standards and Test Procedures – 19 85 and

Subsequent Through

- 2006 Model-Year Heavy Duty Urban Bus Engines and Vehicles.

(a) The exhaust emissions from new 1985 and subsequ ent model heavy-duty diesel cycle urban bus engines and vehicles fueled by methanol, natural gas, liquefied petroleum gas, and petroleum shall not ex ceed the following, by model year:

(1) [No Change]

(2) [No Change]

(3) [No Change]

(4) [No Change]

(5) [No Change]

(6) [No Change]

(7) [No Change]

(8) October 2002-2006 optional standards – Except for diesel-fueled, dual-fuel, and bi-fuel engines but including heavy- duty pilot ignition engines, manufacturers may choose to certify 2002-2 006 model year bus engines produced beginning October 1, 2002, to an optional 1.8 g/bhp-hr to 0.3 g/bhp-hr NOx plus NMHC standard, me asured as the arithmetic sum of the NOx and NMHC exhaust componen t certification values, without restriction on individual component certification values; provided that engines certified to this optional re duced-emission NOx plus NMHC standard may not participate in any avera ging, banking, or trading program set forth in the test procedures do cument incorporated by reference in subdivision (c) of this section. A manufacturer may certify to any standard between the values of 1.8 g /bhp-hr to 0.3 g/bhp-hr, by 0.3 g/bhp-hr NOx + NMHC increments

.

(9) [No Change]

(10) 2004-2006 : – Except as provided in paragraph (11), below, the required standard shall be 2.4 g/bhp-hr NOx + NMHC measured as the arithmetic sum of exhaust component certification v alues for theseAttachment 1

Final Regulation Order 3

Submitted to OAL: July 28, 2006 Hearing Dates: September 17, and October 20 and 27, 2005

pollutants, without restriction on individual compo nent values, 15.5 g/bhp-hr CO, and 0.05 g/bhp-hr PM (0.07 g/bhp- hr PM in-use).

(A) Manufacturers may choose to certify to a 2.5 g/ bhp-hr optional combined NOx + NMHC standard, provided that the NMH C exhaust component certification value shall not exc eed 0.5 g/bhp-hr.

(B) Emissions averaging may be used to meet the com bined NOx + NMHC standard, the optional combined NOx + NM HC standard set forth in paragraph (A), and the PM sta ndard.

(C) The combined NOx + NMHC standard and the option al combined NOx + NMHC standard described in paragraph (A) may serve as the certification standard for the hig her emitting fueling mode of an engine certified under the dual fueling mode certification process set forth in section 1956.8(a )(4), title 13,

CCR.

(11) [No Change]

(12) 2007 and subsequent

– 0.2 g/bhp

- hr NOx, 0.01 g/bhp

- hr PM, 0.05 g/bhp

- hr NMHC, 5.0 g/bhp

- hr CO, and 0.01 g/bhp

- hr formaldehyde.

(b) 2003

- 2006 2003-2006 bi-fuel heavy-duty pilot ignition engine s – A bi-fuel engine meeting the definition of a heavy-duty pilot ignition engine set forth in section1956.2 (b)(4) may be certified to the standa rds in section1956.1 (a)(8) and (a)(10), provided that the engine is certified to an optional PM standard of 0.03, 0.02, or 0.01 g/bhp-hr.

(c) Test Procedures

. The test procedures for determining compliance wi th standards applicable to 1985 and subsequent through 2006 model-year heavy-duty diesel cycle urban bus engines and vehic les and the requirements for participation in the averaging, banking and tra ding programs, are set forth

in the "California Exhaust Emission Standards and T est Procedures for 2004 and Subsequent Model Heavy-Duty Diesel Engines and Vehicles," adopted December 12, 2002, and the “California Interim Cert ification Procedures for 2004 and Subsequent Model Hybrid-Electric Vehicles, in the Urban Bus and Heavy-Duty Vehicle Classes,” adopted October 24, 20 02, which are incorporated by reference herein.

NOTE: Authority cited: Sections 39600, 39601, 43013 , 43018, 43100, 43101, 43104 and 43806, Health and Safety Code; and Section 28114, Vehicle Code. Reference: Sections 39002, 39003,
39017, 39033, 39500, 39650, 39657, 39667, 39701, 40 000, 43000, 43000.5, 43009, 43013, 43018, 43102 and 43806, Health and Safety Code; and Sectio n 28114, Vehicle Code.Attachment 1

Final Regulation Order 4

Submitted to OAL: July 28, 2006 Hearing Dates: September 17, and October 20 and 27, 2005 Amend section 1956.8 (a)(2)(A)&(B) to read as follo ws:

§ 1956.8. Exhaust Emissions Standards and Test Pro cedures – 1985 and Subsequent Model Heavy-Duty Engines and Vehicles.

(a)(1) [No Change]

(2)(A) The exhaust emissions from new 2004 and subs equent model heavy-duty diesel engines, heavy-duty natural gas-fueled and l iquefied-petroleum-gasfueled engines derived from diesel-cycle engines, a nd heavy-duty methanolfueled diesel engines, and the optional, reduced-em ission standards for 2002 and subsequent model engines produced beginning Oct ober 1, 2002, except in all cases engines used in medium-duty vehicles, shall not exceed:

Exhaust Emission Standards for 2004 and Subsequent Model Heavy-Duty Engines, and Optional, Reduced Emission Standards for 2002 a nd Subsequent Model Heavy-Duty Engines Produced Beginning October 1, 20 02, Other than Urban Bus

Model-Year Engines Produced From October 1, 2002 Through 2006 L (grams per brake horsepower-hour [g/bhp-hr])

Model Year Oxides of Nitrogen Plus

Non-methane Hydrocarbons Optional Oxides

of Nitrogen Plus

Non-methane Hydrocarbons Oxides

of Nitrogen Non-methane

Hydrocarbons Carbon

Monoxide Particulates

2004-2006 H 2.4 A,C,E,J 2.5 B,C,E,J n/a n/a 15.5 0.10 C

October 1, 2002-2006 n/a 1.8 to 0.3 A,D,F n/a n/a 15.5 0.03 to

0.01 G

2007 and subsequent M n/a n/a 0.2 I 0.14 15.5 0.01 K

Footnotes A-K [No Change]

L For 2007 and subsequent model-year urban bus engin es, this section applies. For urban bus model-year engines produced from October 1, 2002 through 2006, refer to

section 1956.1.

M For model years between 2007 and 2009, transit age ncies purchasing urban buses and/or urban bus engines shall meet the requirement s set forth in section 2023.1.

(B) Phase

- in Options Phase-in Options

. (i) 1. Early NOx compliant engines Early NOx compliant engines

. For model years 2007, 2008, and 2009, a manufacturer may, at their option, certify one or more of their engine families to the combined NO x plus NMHC standard or FEL applicable to model year 2006 engines under sec tion 1956.8 (a)(2), in lieu of the separate NOx and NMHC standards or FELs applicable to theAttachment 1

Final Regulation Order 5

Submitted to OAL: July 28, 2006 Hearing Dates: September 17, and October 20 and 27, 2005

2007 and subsequent model years, specified in secti on 1956.8 (a)(2). Each engine certified under this phase-in option must co mply with all other emission requirements applicable to model year 2007 engines. To qualify for this option, a manufacturer must satisfy the U.S.-d irected production requirement of certifying no more than 50 percent o f engines to the NOx plus NMHC standards or FELs applicable to 2006 engines, as specified in 40 Code of Federal Regulations, part 86, section 86.00 7-11 (g)(1), as adopted January 18, 2001. In addition, a manufacturer may reduce the quantity of engines that are required to be phased-in using the early certification credit program specified in 40 Code of Federal Regulations , part 86, section 86.007-11 (g)(2), as adopted January 18, 2001, and the “Blue Sky” engine program specified in 40 Code of Federal Regulations , part 86, section 86.007-11 (g)(4), as adopted January 18, 2001.

(ii) 2. Early PM compliant engines Early PM compliant engines

. A manufacturer certifying engines to the 2007 and subsequent model year PM standard listed in section 1956.8 (a)(2) (without using credits, as determined in any averaging, banking, or trading program described in “California Exhaust

Emission Standards and Test Procedures for 1985 and Subsequent Model Heavy-Duty Diesel Engines and Vehicles,” to comply with the standards) before model year 2007 may reduce the number of eng ines that are required to meet the 2007 and subsequent model year PM stand ard listed in section 1956.8 (a)(2) in model year 2007, 2008 and/or 2009. To qualify for this option, a manufacturer must satisfy the PM emission requirements pursuant to the methods detailed in 40 Code of Federal Regul ations, part 86, section 86.007-11 (g)(2)(ii), as adopted January 18 , 2001.

* * * * *

NOTE: Authority cited: Sections 39600, 39601, 43013 , 43018, 43100, 43101, 43104, 43105 and 43806, Health and Safety Code; and Section 28114, V ehicle Code. Reference: Sections 39002,
39003, 39500, 43000, 43013, 43018, 43100, 43101, 43 102, 43104, 43106, 43202, 43204, 43206, 43210, 43211, 43212, 43213 and 43806, Health and Sa fety Code; and Section 28114, Vehicle Code.Attachment 1

Final Regulation Order 6

Submitted to OAL: July 28, 2006 Hearing Dates: September 17, and October 20 and 27, 2005 Amend section 2023.1(a) to read as follows:

§ 2023.1. Fleet Rule for Transit Agencies – Urban Bus Requirements

(a) To encourage transit agencies that operate urba n bus fleets to purchase or lease lower emission alternative-fuel buses, while also p roviding flexibility to such fleet operators to determine their optimal fleet mix in c onsideration of such factors as air quality benefits, service availability, cost, e fficiency, safety, and convenience, two paths to compliance with this fleet rule are av ailable: the alternative-fuel path and the diesel path.

(1) [No Change].

(2) [No Change]

(3) [No Change]

(4) A transit agency within the jurisdiction of the So uth Coast Air Quality Management District shall follow the alternative-fu el path. If the transit agency had previously stated its intent to follow t he diesel path, the change to the alternative-fuel path shall be effect ive on [Insert effective date of subsection].

(5) Transit agencies on the diesel path with more than 30 buses in their fleets purchasing model year 2007 through 2009 urban buses that are not certified at or below 0.2 g/bhp-hr NOx emission lev el shall:

(A) Mitigate the increased NOx emissions for each u rban bus purchased by retrofitting an existing urban bus or transit fl eet vehicle within the fleet with a level 3 particulate matter (PM) verifi ed diesel emission control strategy with an oxides of nitrogen (NOx) r eduction efficiency of at least 40 percent, if available, otherwise, with a NOx reduction efficiency of at least 25 percent. This retrofit r equirement applies on a

one-to-one basis until all diesel urban buses and t ransit fleet vehicles within the transit agency’s fleet are either retrof itted or are determined to be unable to be retrofitted as specified in (B) below.

(B) Obtain Executive Officer approval for purchasin g a 2007 through 2009 model year urban bus not subject to (A) above by su bmitting to the Executive Officer a report 90 days prior to the del ivery of the urban bus. The report shall provide information that dem onstrates that all vehicles in the transit agency’s fleet have been re trofitted or are determined to be unable to be retrofitted including when the inability to

retrofit occurs for reasons other than a device not verified for the specific urban bus or transit fleet vehicle engine family.Attachment 1

Final Regulation Order 7

Submitted to OAL: July 28, 2006 Hearing Dates: September 17, and October 20 and 27, 2005

(C) Submit annual reports that meet the requirements i n section 2023.4(b)(4).

* * * * *

NOTE: Authority cited: Sections 39600, 39601, 39667 , 43013, 43018 and 43701(b), Health and Safety Code. Reference: Sections 39002, 39003, 39017, 395 00, 39650, 39667, 40000, 43000, 43000.5, 43013, 43018, 43701(b), 43801 and 43806, Health and Safety Code; and Sections 233 and 28114,

Vehicle Code.

Amend section 2023.4(b) to read as follows:

§ 2023.4 Reporting Requirements for Transit Agencie s.

(a) [No Change]

(b) The following reports on new urban bus purchase s and/or leases by transit agencies on the diesel path shall be submitted as d escribed below:

(1) [No Change]

(2) [No Change]

(3) [No Change]

(4) As set forth in section 2023.1(a)(5), transit agen cies with more than 30 buses in their fleet that purchase model-years 2007 through 2009 urban buses not certified at or below 0.2 g/bhp-hr NOx em issions shall submit the following information for each urban bus purcha sed: the manufacturer, make, and model year of the engine of the urban bus or transit fleet

vehicle retrofitted and for each diesel emission co ntrol strategy applied, the date of installation, the device’s product seri al number, and its Diesel Emission Control Strategy Family Name in accordance with the requirements of section 2705(g)(2), title 13, CCR. The first report shall be submitted by January 31, 2007. Subsequent reports shall be submitted annually by January 31 through the year 2016.

* * * * *

NOTE: Authority cited: Sections 39600, 39601, 39659 and 39667, Health and Safety Code. Reference: Sections 39667, 39700, 43000, 43000.5, 4 3013, 43018, 43801 and 43806, Health and Safety Code.