SACAQMD RULE 1003 REDUCED-EMS. FLEET VEH./ALT.FUELS
LAST REVISED 07/19/94

          SACRAMENTO METROPOLITAN AQMD                RULES AND REGULATIONS
                  RULE  1003  - REDUCED-EMISSION FLEET VEHICLES/ALTERNATIVE
                                FUELS
                                       (Adopted 7-19-94)
                                
          
          
          NOTE:  THE TABLES IN THE APPENDIX TO THIS RULE CANNOT BE READILY
          CONVERTED TO ASCII.  SOME OF THEM ARE FORMATTED WITH A LARGE VOLUME 
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                                       INDEX
          
          
          
          
          100 GENERAL
              101  PURPOSE
              102  APPLICABILITY
              110  EXEMPTION - GENERAL
              111  EXEMPTION - VEHICLE AVAILABILITY/PERFORMANCE
              112  EXEMPTION - FLEETS OF MIXED VEHICLE WEIGHT
              113  EXEMPTION - TRANSITORY VEHICLES
              114  EXEMPTION - EXCHANGE VEHICLES

          200 DEFINITIONS
              201  ACTIVE VEHICLE
              202  AFFECTED POLLUTANTS
              203  ALTERNATIVE FUEL
              204  BASE VEHICLE
              205  CERTIFICATE OF ADVANCE PLACEMENT (CAP)
              206  COMMERCIAL PURPOSE
              207  COMMERCIALLY AVAILABLE
              208  COMMON OPERATION
              209  COMMON OWNERSHIP
              210  COMPLIANCE OPTION
              211  DAILY RENTAL VEHICLE
              212  DIESEL-CYCLE ENGINE
              213  EMERGENCY VEHICLE
              214  EMFAC
              215  EXCHANGE VEHICLE
              216  FLEET
              217  FLEET CLASSES
              218  FLEET - OPT-IN
              219  FLEET OPERATOR
              220  FLEXIBLE FUEL VEHICLE
              221  INDIRECT SOURCE
              222  MOBILE SOURCE EMISSION REDUCTION CREDIT (MERC)
              223  MODEL YEAR
              224  MOTOR VEHICLE, OR VEHICLE
              225  NEW VEHICLE
              226  OBLIGATION
              227  OTTO-CYCLE ENGINE
              228  PM10
              229  PREVIOUSLY CLAIMED REV
              230  PUBLIC PURPOSE
              231  REACTIVE ORGANIC GAS (ROG)
              232  REBUILT ENGINE
              233  REDUCED-EMISSION VEHICLE
              234  REGISTER
              235  REPOWER
              236  RETROACTIVE CREDIT
              237  STACKING
              238  TRANSITORY VEHICLE
              239  URBAN BUS
              240  USED REV
              241  USED VEHICLE
              242  VEHICLE WEIGHT CLASSIFICATION

          300 STANDARDS
              301  OBLIGATION
              302  UNMET OBLIGATION
              303  MOBILE     SOURCE      EMISSION     REDUCTION     CREDIT
                   (MERC)/CERTIFICATE OF ADVANCE PLACEMENT (CAP)
              304  USE OF CAP
              305  MERC/CAP LIFE
              306  CAP VALUE
              307  ALTERNATIVE FUEL CREDIT
              308  VEHICLE MAINTENANCE

          400 ADMINISTRATIVE REQUIREMENTS
              401  CALCULATION OF COMPLIANCE
              402  ISSUANCE OF CAP
              403  CAP TRACKING
              404  OPT-IN/OPT-OUT REQUIREMENTS
              405  REV/ALTERNATIVE FUEL AVAILABILITY/PERFORMANCE

          500 MONITORING AND RECORDS


          APPENDIX A
              TABLE 1:
              OBLIGATION FOR LIGHT-DUTY AND MEDIUM-DUTY VEHICLES

              TABLE 2:
              LIFETIME  AVERAGE EMISSIONS FOR  LIGHT-DUTY  AND  MEDIUM-DUTY
              GASOLINE AND DIESEL POWERED VEHICLES

              TABLE 3:
              LIFETIME AVERAGE  EMISSIONS  FOR  LIGHT-DUTY  AND MEDIUM-DUTY
              METHANOL,  NATURAL  GAS,  AND  LIQUID  PETROLEUM GAS  POWERED
              VEHICLES

              TABLE 4:
              NOx   CERTIFICATION   STANDARDS,  CONVERSION   FACTORS,   AND
              OBLIGATION FOR HEAVY DUTY VEHICLES

              WORKSHEET 1:
              WORKSHEET FOR CALCULATION  OF  COMPLIANCE  WITH RULE 1003 FOR
              LIGHT-DUTY AND MEDIUM-DUTY VEHICLES

              WORKSHEET 2:
              WORKSHEET FOR CALCULATION OF COMPLIANCE WITH  RULE  1003  FOR
              HEAVY DUTY VEHICLES

              WORKSHEET 3:
              WORKSHEET  FOR  CALCULATION  OF  CREDIT  FOR  THE  USE  OF AN
              ALTERNATIVE FUEL

          100 GENERAL:

              101  PURPOSE:
                   101.1   To reduce the emissions of reactive organic  gas
                           (ROG)   and   oxides   of  nitrogen  from  fleet
                           vehicles,  by  requiring  fleet   operators   to
                           include   reduced-emission  vehicles  (or  zero-
                           emission vehicles,  or  conversion  technologies
                           certified by the California Air Resources  Board
                           as  low-emission  or zero-emission) when adding,
                           replacing, rebuilding,  or  repowering vehicles;
                           and
                   101.2   To  encourage,  to  the  extent possible,  these
                           vehicles  to  be  operated  on  cleaner  burning
                           alternative fuels, or electric power.

              102  APPLICABILITY
                   102.1   The   provisions  of  this  rule  shall   become
                           effective January 19, 1995.
                   102.2   Except  for the provisions of Sections 110, 111,
                           112, 113  and  114, this rule shall apply to all
                           fleet operators  within  the District, including
                           operators   of   fleets  used  by   governmental
                           entities  (including   special  districts,  U.S.
                           Postal  Service,  and  the  military),  commerce
                           (including taxicab fleets), and industry.
                   102.3   If the owner and operator  of  the fleet are two
                           or more separate persons, companies, businesses,
                           organizations,  or  public entities,  this  rule
                           shall be applicable only  to the operator of the
                           fleet.

              110  EXEMPTION - GENERAL:  This rule shall not apply to:
                   110.1   Evaluation of test vehicles  operated by vehicle
                           manufacturers    for    vehicle    certification
                           purposes.
                   110.2   Emergency  vehicles  which,  if  REV/ALTERNATIVE
                           FUEL   vehicles,   cannot   meet   the  required
                           emergency vehicle performance standards  adopted
                           by the state of California.
                   110.3   Museums  in  relation to any collection of motor
                           vehicles for display and/or demonstration.
                   110.4   Vehicles at vehicle  dealerships  or  sales lots
                           which  are  for sale or lease to the public  and
                           which are not  used  in  the dealership or sales
                           lot operations.
                   110.5   Daily rental vehicles.
                   110.6   Urban buses operated by the  Sacramento Regional
                           Transit District, which are replacement vehicles
                           for  the  urban  buses  receiving   MERC   under
                           District  Application ERC 00168, shall not incur
                           an obligation during the term the application is
                           valid.
                   110.7.  Privately owned  personal vehicles that are used
                           for business purposes except those vehicles used
                           for common operation as defined in Section 208.

              111  EXEMPTION - VEHICLE AVAILABILITY/PERFORMANCE:   A  fleet
                   operator  shall  be  exempt from the requirement of this
                   rule to introduce medium-duty and/or heavy-duty REV into
                   a fleet if REV are not  commercially available and/or do
                   not meet applicable performance  standards,  pursuant to
                   Section 405.

              112  EXEMPTION  -  FLEETS  OF  MIXED  VEHICLE WEIGHT:  Fleets
                   which  include  a  mix of vehicle weights,  wherein  the
                   percentage of heavy-duty vehicles comprise less than ten
                   (10) percent of the  total  number  of  vehicles  in the
                   fleet, shall be exempt from the obligation to add heavy-
                   duty REV into the fleet.

              113  EXEMPTION  -  TRANSITORY  VEHICLES:  Transitory vehicles
                   are exempt from the provisions  of  this  rule, provided
                   they do not comprise more than ten percent  (10%) of the
                   fleet (excluding the transitory vehicles), under  common
                   operation within the District in any period of time.  In
                   order  for  this  exemption to apply, the fleet operator
                   must report and maintain  the  records  required by Rule
                   1002 - FLEET INVENTORY.

              114  EXEMPTION  - EXCHANGE VEHICLES:  Exchange  vehicles  are
                   exempt from  the  provisions of this rule, provided they
                   do not comprise more than five percent (5%) of the fleet
                   vehicles (excluding  the  exchange vehicles), or one (1)
                   vehicle (whichever is greater),  under  common operation
                   within the District in any period of time.  In order for
                   this exemption to apply, the fleet operator  must report
                   and maintain the records required by Rule 1002  -  FLEET
                   INVENTORY.

          200 DEFINITIONS

              201  ACTIVE  VEHICLE:   A  fleet motor vehicle which has been
                   driven one hundred (100)  miles  or  more, in fleet use,
                   during the reporting year established  by  Rule  1002  -
                   FLEET INVENTORY.

              202  AFFECTED  POLLUTANTS:   Reactive  organic  gas (ROG) and
                   oxides of nitrogen (NOx).

              203  ALTERNATIVE  FUEL:   A motor vehicle fuel consisting  of
                   methanol, ethanol (including  methanol and/or ethanol in
                   combination with gasoline as approved  by the California
                   Air  Resources Board as an alternative fuel),  liquified
                   petroleum  gas  (LPG),  compressed  natural  gas  (CNG),
                   liquified natural gas (LNG), or electricity.

              204  BASE   VEHICLE:    Any  motor  vehicle  that  is  not  a
                   California   Air  Resources   Board-certified   reduced-
                   emission vehicle.

              205  CERTIFICATE OF  ADVANCE PLACEMENT (CAP):  Acknowledgment
                   of   potentially  surplus   emissions   reductions   for
                   exceeding  the  obligation  established by this rule for
                   light-duty and medium-duty vehicles.

              206  COMMERCIAL  PURPOSE:   Any  activity   facilitating  the
                   manufacture,    alteration,    distribution,    storage,
                   marketing, rental, sale, provision or transportation  of
                   goods  or  services,  or  the  transportation of people;
                   whether for profit or nonprofit.

              207  COMMERCIALLY   AVAILABLE:    A  reduced-emission   motor
                   vehicle  and/or  motor  vehicle engine  is  commercially
                   available if it is produced  by  two or more competitive
                   manufacturers, and is available for  purchase  or lease.
                   As used in this Section, a "manufacturer" is the  entity
                   that  certifies  the  vehicle and/or vehicle engine with
                   the federal Environmental  Protection  Agency and/or the
                   California Air Resources Board.

              208  COMMON OPERATION:  Fleet vehicles under common operation
                   means vehicles that are controlled by a person, company,
                   business, corporation, organization, public  entity,  or
                   any combination thereof, in the following manner:
                   208.1   Vehicles that are dispatched from and maintained
                           at  a  central  location  at  the  direction and
                           expense  of  the operator, and are, or  can  be,
                           repowered or replaced  at  the  direction of the
                           fleet operator;
                   208.2   Vehicles leased or purchased for  an  individual
                           by  the operator for use in the conduct  of  the
                           business  of  the operator, and that are, or can
                           be, repowered or  replaced  at  the direction of
                           the fleet operator, or;
                   208.3   Vehicles owned or leased by employees of a fleet
                           operator where the employee receives  a payment,
                           or a series of payments, from the fleet operator
                           for  the  purpose  of  leasing  or purchasing  a
                           vehicle for use in the conduct of  the  business
                           of  the fleet operator, and that are, or can  be
                           repowered  or  replaced  at the direction of the
                           fleet operator, or;
                   208.4   Vehicles regulated by this  rule  that are added
                           to  any  fleet  at  the  direction of the  fleet
                           operator.

              209  COMMON OWNERSHIP:  Fleet vehicles under common ownership
                   are those vehicles for which legal  title is held by the
                   same    person,    company,    business,    corporation,
                   organization, or public entity.

              210  COMPLIANCE  OPTION:   A program implemented by  a  fleet
                   operator who is regulated  by  this  rule, that achieves
                   emissions reductions.  The program, either alone or with
                   the  use  of  MERC and/or CAP, reduces emissions  to  at
                   least the same  level,  over  the  same  time  frame, as
                   required by this rule.

              211  DAILY RENTAL VEHICLE:  A light-duty or medium-duty motor
                   vehicle   which   is   rented  to  a  person,  business,
                   government   agency,  or  special   district   under   a
                   contractual agreement with the legal or registered owner
                   of the vehicle,  for  a period of fewer than thirty (30)
                   days.

              212  DIESEL-CYCLE ENGINE:  A vehicle engine classified by the
                   California  Air  Resources  Board  as  a  "diesel  cycle
                   engine".

              213  EMERGENCY VEHICLE:   Any  motor  vehicle  operated  by a
                   public  law  enforcement  agency, public fire protection
                   agency,  or  a  public  or  private  ambulance/paramedic
                   service, which is used or intended to be used solely for
                   response to an emergency (an  unforeseen  combination of
                   circumstances that calls for immediate action to prevent
                   further injury, loss of life, or damage to property).

              214  EMFAC:   The  computer model approved by the  California
                   Air Resources Board  for  estimating emission rates from
                   mobile and transportation sources.

              215  EXCHANGE VEHICLE:  A vehicle or vehicles, which is (are)
                   part of a larger fleet under  the same common ownership,
                   of the same weight class and engine  type,  and which is
                   (are) brought into a fleet, in exchange for an  existing
                   fleet vehicle.

              216  FLEET:  Except as provided in Section 218, fifteen  (15)
                   or more active vehicles under common ownership or common
                   operation, operated within the District, and which are:
                   216.1   Operated  by  any  business which is required to
                           have a business license  in  the  District,  and
                           which is located within the District; or
                   216.2   Operated  by  any  federal,  state, regional, or
                           local   agency   from  a  location  within   the
                           District.

              217  FLEET CLASSES:
                   217.1   Class  1:Fleets  that  are  privately  owned  or
                                   operated,  except  as  provided  for  in
                                   Section 217.2(b)
                   217.2   Class 2:
                           (a)     Fleets   owned   and/or  operated  by  a
                                   government  agency  (including  military
                                   and   post  office),   public   utility,
                                   special district, or school district.
                           (b)     Privately  owned  fleets  which  are not
                                   regulated by this rule, which opt-in for
                                   the purpose of obtaining credits.

              218  FLEET:  OPT-IN:   Two  (2) or more active vehicles under
                   common  ownership  or  common  operation  and  used  for
                   commercial or public purposes  that  are  not a fleet as
                   defined  in  Section  216, if the owner or operator  has
                   voluntarily chosen to be  subject  to this rule and Rule
                   1002 - FLEET INVENTORY.

              219  FLEET   OPERATOR:    The   person,  company,   business,
                   corporation, organization or  public  entity  that is in
                   charge  of managing a fleet pursuant to the criteria  in
                   Section 208.

              220  FLEXIBLE  FUEL VEHICLE:  A motor vehicle that is capable
                   of being operated  on  gasoline  or  diesel  fuel and an
                   alternative fuel.

              221  INDIRECT  SOURCE:  Any facility, building, structure  or
                   installation,  land  use,  or  combination thereof which
                   generates  or  attracts  mobile  source   activity  that
                   results in emissions of any pollutant for which there is
                   a  state  ambient  air  quality  standard.  Examples  of
                   indirect  sources  include,  but  are  not  limited  to:
                   employment  sites,  shopping  centers,  schools,  sports
                   facilities, recreation facilities  and  amusement parks,
                   airports,   and  residential  commercial  or  industrial
                   developments, or parking lots and garages.

              222  MOBILE SOURCE  EMISSION REDUCTION CREDIT (MERC):  Actual
                   emissions  reductions   that  are  registered  with  the
                   District in accordance with  the  requirements  of  Rule
                   1005 - MOBILE SOURCE EMISSION REDUCTION CREDITS/BANKING.

              223  MODEL  YEAR:   The  year  in  which  a  motor vehicle is
                   manufactured,  as  encoded in the vehicle identification
                   number (VIN).

              224  MOTOR VEHICLE, OR VEHICLE:  Any self-propelled motorized
                   transportation   device    of    any    vehicle   weight
                   classification,  or combination of such classifications,
                   that is certified  by the California Air Resources Board
                   for, and designed for, on-road use.

              225  NEW VEHICLE:  Any motor  vehicle  for  which  the  first
                   Certificate  of  Ownership  is  issued by the California
                   Department  of  Motor Vehicles, or  a  heavy-duty  fleet
                   vehicle three years old or older in which the engine has
                   been rebuilt or the  vehicle  has  been  repowered after
                   (date of rule adoption).

              226  OBLIGATION:   The  requirement  of  a fleet operator  to
                   reduce emissions of reactive organic  gases (ROG) and/or
                   oxides  of  nitrogen (NOx), when adding,  replacing,  or
                   repowering vehicles  in  a fleet; or when rebuilding the
                   engine in a fleet vehicle.   Obligation  is expressed in
                   terms of the average pounds of emissions per vehicle per
                   year.

              227  OTTO-CYCLE ENGINE:  A vehicle engine classified  by  the
                   California   Air   Resources  Board  as  an  "otto-cycle
                   engine".

              228  PM10:  Particulate matter  with  an aerodynamic diameter
                   smaller  than  or  equal  to  a nominal  10  microns  as
                   measured  by  an  applicable reference  test  method  or
                   methods found in Article  2,  Subchapter  6,  Title  17,
                   California  Code of Regulations (commencing with Section
                   94100).

              229  PREVIOUSLY CLAIMED  REV:   A  REV which has been used to
                   meet  an  obligation  or  generate  MERC/CAP  (or  local
                   equivalent thereof), anywhere in California.

              230  PUBLIC PURPOSE:  Any federal,  state,  regional, special
                   district,  or  local  governmental  function,  including
                   military activities.

              231  REACTIVE ORGANIC GAS (ROG):  Any organic  gas containing
                   carbon   except:    methane,   carbon  monoxide,  carbon
                   dioxide, carbonic acid, metallic carbides or carbonates,
                   ammonium carbonates, and halogenated hydrocarbons.

              232  REBUILT ENGINE:  A motor vehicle  engine  in  which  the
                   crankshaft and/or pistons have been removed to allow for
                   the  repair  and/or  replacement  of any internal engine
                   components, in a vehicle more than three (3) model years
                   old.

              233  REDUCED-EMISSION VEHICLE (REV):  Any  motor vehicle that
                   is:
                   233.1   Certified by the California Air  Resources Board
                           as one of the following:
                           a)  Transitional low-emission vehicle (TLEV).
                           b)  Low-emission vehicle (LEV).
                           c)  Ultra-low-emission vehicle (ULEV).
                           d)  Zero-emission vehicle (ZEV), or
                   233.2   A heavy-duty vehicle meeting either:
                           a)  California   Air  Resources  Board-certified
                               low-emission standards, or
                           b)  A heavy-duty vehicle  powered  by  an engine
                               certified  to one of the federal clean  fuel
                               fleet  emission   standards  for  heavy-duty
                               engines (40 CFR Section  88.105-94). LEV (on
                               California fuel), ULEV, or ZEV standards (40
                               CFR Parts 86 and 88).  The  LEV  standard is
                               3.5  g/bhp-hr NMHC+NOx for certification  on
                               California  diesel  fuel.  The ULEV standard
                               is  2.5  g/bhp-hr  NMHC+NOx,   and  the  ZEV
                               standard   is   zero  NMHC+NOx.   Heavy-duty
                               engines certified  to  the  federal  LEV (on
                               California  fuel),  ULEV,  and ZEV standards
                               are to be considered as 3.5,  2.5,  and zero
                               g/bhp-hr NOx engines, respectively, for  the
                               purpose  of calculating compliance with Rule
                               1003.
                           c)  Reduced  emission   standards  for  NOx,  or
                               combined  hydrocarbons  plus  NOx,   may  be
                               adopted   by   the   federal   Environmental
                               Protection  Agency  or  the  California  Air
                               Resources  Board.   As used in this Section,
                               "reduced emission" means  that the numerical
                               value  of the reduced emission  standard  is
                               less than the numerical value of the highest
                               NOx standard  otherwise  applicable  in  the
                               Sacramento    area   to   the   engine   and
                               application under consideration.

              234  REGISTER:  The record maintained  by the District of all
                   CAP   deposits,   withdrawals,  transfers,   and   other
                   transactions that result from this rule.

              235  REPOWER:  A new engine which is placed into service in a
                   motor vehicle more than three (3) model years old.

              236  RETROACTIVE CREDIT:   MERC  and/or  CAP, approved by the
                   District, for an emissions reduction  occurring prior to
                   (six months after date of adoption).

              237  STACKING:   The use of short term MERC to  meet  a  long
                   term obligation  which  provides  disproportionate  high
                   emissions   reductions   in   one  time  period  of  the
                   obligation, and disproportionate  low  (or no) emissions
                   reductions at another time period of the obligation.

              238  TRANSITORY  VEHICLES:   A vehicle or vehicles  which  is
                   (are)  part  of a larger fleet  under  the  same  common
                   ownership, brought into a fleet for a period of time not
                   to exceed twelve (12) months, and following that time is
                   (are) removed from the fleet.

              239  URBAN  BUS:   Any  heavy-duty  fleet  vehicle  used  for
                   transit or shuttle operations.

              240  USED REV:  A used  vehicle  that is a REV, which has not
                   been previously claimed.

              241  USED VEHICLE:
                   241.1   Any motor vehicle which  has  had  one  or  more
                           changes  in ownership recorded by the California
                           Department  of  Motor  Vehicles,  or  comparable
                           agency in any other state, province, or country;
                           or
                   241.2   Any motor vehicle, registered in another  state,
                           province,  or  country,  which  is  brought into
                           service in the District, and for which  there is
                           no change of ownership.

              242  VEHICLE   WEIGHT   CLASSIFICATION:    A   motor  vehicle
                   classification that is one of the following:
                   242.1   Light-duty vehicle:  This class includes:
                           a)  Passenger   car:    any   vehicle   designed
                               primarily for transportation of persons  and
                               having  a  design  capacity of 12 persons or
                               less,  and  rated  at  0-3750   pounds  test
                               weight, or
                           b)  Light-duty  truck:  any motor vehicle  rated
                               at 6,000 pounds gross vehicle weight or less
                               which is designed  primarily for purposes of
                               transportation   of   property   or   is   a
                               derivative of such vehicle.
                   242.2   Medium-duty vehicle:  This  class  includes  any
                           motor  vehicle  having  a  gross  vehicle weight
                           (GVR) of 6,001-14,000 pounds.
                   242.3   Heavy-duty  vehicle:   This  class includes  any
                           motor vehicle with a gross vehicle weight rating
                           of over 14,000 pounds.
                           a)  Medium-heavy-duty vehicle (MHD):  This class
                               includes any motor vehicle, or a combination
                               of  a  motor  vehicle  and  semi-trailer  or
                               trailers  with a total gross vehicle  weight
                               of 14,001 to 33,000 pounds.
                           b)  Heavy-heavy-duty  vehicle (HHD):  This class
                               includes any motor vehicle, or a combination
                               of  a  motor  vehicle  and  semi-trailer  or
                               trailers with a  total  gross vehicle weight
                               of more than 33,000 pounds.

          300 STANDARDS

              301  OBLIGATION:  Except as provided for in  Section 301.4, a
                   fleet  operator shall incur obligation for  each  active
                   vehicle added, repowered, or rebuilt in a fleet.
                   301.1   a)  The   obligation   may   be   satisfied   by
                               incorporating    REV's   into   the   fleet.
                               Alternatively,  the   options  described  in
                               Section 302 may be used.
                           b)  The life of any obligation  incurred and the
                               life  of  any MERC/CAP used to  satisfy  the
                               obligation  shall  be  coterminous,  as  set
                               forth  in  Sections  301.2(b),  301.3(b) and
                               305.
                           c)  When  calculating  the obligation,  ROG  and
                               oxides  of  nitrogen  shall  be  treated  as
                               precursors to the formation  of  ozone  on a
                               1:1 basis (i.e. 1 pound of ROG = 1 pound  of
                               NOx).
                   301.2   The  obligation  for  light-duty and medium-duty
                           Class 1 and Class 2 fleet  vehicles is set forth
                           in Tables 1-A through 1-E, inclusive,  and Table
                           6 (6A through 6F).
                           a)  The  obligation  for  light-duty and medium-
                               duty vehicles is satisfied  by incorporating
                               the number of new reduced emission  vehicles
                               into  the  fleet,  specified in Table 6  (6A
                               through 6F), or when  the arithmetic average
                               of the lifetime annual average emissions for
                               the light-duty and/or medium-duty vehicle(s)
                               added to or replaced in a fleet is equal to,
                               or less than, the applicable  obligation for
                               the  calendar  year in which the  obligation
                               is/was  incurred.    When   determining  the
                               obligation  for  light-duty and  medium-duty
                               vehicles, the fleet operator shall use Table
                               6 (6A through 6F)  exclusively,  or  Table 1
                               (1-A through 1-E) exclusively.
                           b)  The  life  of the obligation for used light-
                               duty or medium-duty vehicles is three years.
                               The life of  the  obligation  for new light-
                               duty or medium-duty vehicles is five years.
                           c)  The  lifetime  average annual emissions  for
                               light-duty and medium-duty  vehicles are set
                               forth in Tables 2-A through 2-E,  inclusive,
                               and Tables 3-A through 3-J, inclusive.
                           d)  The  obligation  for  light-duty and medium-
                               duty  vehicles is calculated  by  completing
                               Worksheet 1A.  One or two worksheets must be
                               completed   for  vehicles  having  different
                               obligations.    Worksheet   1A-1   must   be
                               completed  for  vehicles  added  to  a fleet
                               where  the  model  year  is  the same as the
                               current calendar year and all prior calendar
                               years.   Worksheet  1A-2  must be  used  for
                               vehicles added to a fleet with  a model year
                               after the current calendar year.  Worksheets
                               are not required if the obligation  for  new
                               light-duty   and   new   medium-duty   fleet
                               vehicles is taken directly from Table 6  (6A
                               through 6F).
                   301.3   The  obligation  for  heavy-duty vehicles is set
                           forth in Tables 4-B or 4-C.
                           a)  The obligation for  heavy-duty  vehicles  is
                               satisfied when the arithmetic average of the
                               lifetime average annual emissions for heavy-
                               duty  vehicles  added  to,  or  rebuilt,  or
                               repowered  in  a  fleet is equal to, or less
                               than,  the  applicable  obligation  for  the
                               calendar year in which the obligation is/was
                               incurred.
                           b)  The life of the  obligation  for  heavy-duty
                               vehicles  with  a  gross  vehicle weight  of
                               14,001 to 26,000 pounds is  six  years.  The
                               life   of   the  obligation  for  heavy-duty
                               vehicles with  a  gross  vehicle  weight  of
                               26,001  to 33,000 pounds is nine years.  The
                               life  of  the   obligation   for  heavy-duty
                               vehicles  with  a  gross vehicle  weight  of
                               33,000 pounds or more is twelve years.
                           c)  The lifetime average  annual  emissions  for
                               heavy-duty  vehicles  are set forth in Table
                               4,  and  are calculated by  multiplying  the
                               relevant certification standard (Table 4-A-1
                               or   Table   4-A-2)   by   the   appropriate
                               conversion factor (Table 4-D).
                           d)  The obligation  for  heavy-duty  vehicles is
                               calculated  by  completing Worksheet  2.   A
                               separate worksheet  must  be  completed  for
                               each  category  of heavy-duty vehicle listed
                               separately in Tables 4-B and 4-C.
                   301.4   A fleet operator adding  REV  for which MERC/CAP
                           was/were  previously  claimed  does   not  incur
                           obligation  for  those vehicles, and cannot  use
                           such vehicles to receive additional MERC/CAP.
                   301.5   A fleet operator shall  incur  an obligation for
                           each used REV added to the fleet.   MERC/CAP may
                           be  issued  for the vehicle pursuant to  Section
                           402.  The used  REV  may count toward satisfying
                           an  obligation,  or  may  be  banked  under  the
                           provisions of Rule 1005 - MOBILE SOURCE EMISSION
                           REDUCTION CREDIT/BANKING.
                   301.6   A  fleet  operator  who rebuilds  an  engine  or
                           repowers a vehicle that is more than three model
                           years  old incurs the  same  obligation  as  set
                           forth in Section 301.2 and 301.3.
                   301.7   The owner  of  more  than  one (1) vehicle under
                           common  ownership  or  operation  and  used  for
                           commercial purposes may  opt-in  to this rule in
                           order to earn MERC/CAP.  Any person opting-in to
                           this Rule incurs an obligation and is subject to
                           all of the requirements of this Rule.
                   301.8   The obligation is incurred when a  fleet vehicle
                           is added, repowered, or has the engine  rebuilt,
                           and  the  vehicle  becomes active.  The calendar
                           year in which the fleet  operator  commits  over
                           fifty  percent  (50%)  of the funds or financing
                           for  fleet vehicle acquisition  establishes  the
                           reporting  year  in Rule 1002 - FLEET INVENTORY,
                           and the calendar year from Table 1 to be used in
                           completing Worksheet  1A-1 and/or 1A-2, or Table
                           6 (6A through 6F).
                   301.9   If  funding  or  financing   for  fleet  vehicle
                           acquisition is the same from year  to  year, the
                           Air  Pollution  Control  Officer shall determine
                           the calendar year which is the reporting year in
                           Rule 1002 - FLEET INVENTORY,  and  the  calendar
                           year  from  Table  1  to  be  used in completing
                           Worksheet 1A-1 and/or 1A-2

              302  UNMET OBLIGATION:
                   302.1   If a fleet operator does not meet the obligation
                           established  by  this  rule, the fleet  operator
                           shall demonstrate to the  Air  Pollution Control
                           Officer:
                           a)  that  the  unmet light-duty and  medium-duty
                               portion of the  obligation will be satisfied
                               through  the submission  of  sufficient  CAP
                               acquired pursuant to this rule, and/or
                           b)  that the unmet  portion  of  the  obligation
                               will  be  met through MERC obtained pursuant
                               to  Rule  1005   -  MOBILE  SOURCE  EMISSION
                               REDUCTION CREDIT/BANKING,  and  submittal of
                               the MERC to the District, or
                   302.2   Alternatively, if a fleet operator is  not  able
                           to  comply  with  the  requirements  of  Section
                           302.1,  the  fleet  operator  shall  indicate in
                           writing  how  the  obligation  for  the  current
                           reporting  period, plus the following two annual
                           reporting periods, will be met by the end of the
                           third  year  after   the  obligation  was  first
                           incurred.  Three years  is  the  maximum  period
                           over which a fleet operator's obligation may  be
                           averaged.
                   302.3   The  obligation for a fleet operator choosing to
                           comply  with this rule pursuant to Section 302.2
                           shall be  multiplied by a factor of 1.2 for each
                           year  of  the   three  year  period,  compounded
                           annually over the three year period.

              303  MOBILE     SOURCE     EMISSION     REDUCTION      CREDIT
                   (MERC)/CERTIFICATE OF ADVANCE PLACEMENT (CAP):
                   303.1   Fleet  owners exceeding the obligation for Class
                           1 or Class  2 fleets may earn CAP for light-duty
                           and/or medium-duty  vehicles,  as  calculated in
                           the   worksheet  in  Worksheet  1,  subject   to
                           compliance with Sections 401, and 402.
                   303.2   Fleet owners  exceeding the obligation for Class
                           1 or Class 2 fleets may earn MERC for heavy-duty
                           vehicles, as calculated  in Worksheet 2, subject
                           to compliance with Section 401.
                   303.3   All  MERC  earned  pursuant  to   this  rule  by
                           exceeding an obligation for heavy-duty vehicles;
                           or the use of an alternative fuel in  light-duty
                           or   medium-duty  vehicles  creating  reductions
                           greater  than the obligation, in compliance with
                           Section  307,   shall  be  processed  under  the
                           provisions of Rule 1005 - MOBILE SOURCE EMISSION
                           REDUCTION CREDIT/BANKING.
                   303.4   A   fleet  owner  introducing   reduced-emission
                           vehicles  prior  to  the  effective date of this
                           rule may apply to the District  for  approval of
                           retroactive  MERC  and/or  CAP,  subject to  the
                           requirements  of  Rule  1005  -  MOBILE   SOURCE
                           EMISSION REDUCTION CREDIT/BANKING.

              304  USE OF CAP:
                   304.1   CAP  may  only be used to satisfy the light-duty
                           and medium-duty portion of the fleet obligation.
                   304.2   CAP may be  saved to offset a future obligation,
                           sold, or traded;  subject  to  the provisions of
                           Section 403.
                   304.3   CAP  may be processed pursuant to  Rule  1005  -
                           MOBILE SOURCE EMISSION REDUCTION CREDIT/BANKING.
                   304.4   CAP  may   be   spread   over  the  life  of  an
                           obligation.  This means that  the  obligation in
                           Section 301 may be satisfied by using  a part of
                           the lifetime of a longer term CAP.
                   304.5   CAP stacking shall be permitted over the life of
                           an  obligation,  provided  that  the obligation,
                           averaged over any three year period of its life,
                           is met with sufficient CAP or MERC.

              305  MERC/CAP LIFE:
                   305.1   The  life of CAP or MERC is based on  the  fleet
                           average  life  of  the  reduced emission vehicle
                           used to earn the CAP or MERC,  and  is specified
                           in this Section.
                   305.2   CAP  issued  for  used light-duty or medium-duty
                           REV shall be valid for a period of three years.
                   305.3   CAP issued for new light-duty or medium-duty REV
                           shall be valid for a period of five years.
                   305.4   MERC issued for heavy-duty  REV,  with  a  gross
                           vehicle weight of 14,000 to 25,999 pounds, shall
                           be valid for a period of six years.
                   305.5   MERC  issued  for  heavy-duty  REV, with a gross
                           vehicle weight of 26,000 to 32,999 pounds, shall
                           be valid for a period of nine years.
                   305.6   MERC  issued for heavy-duty REV,  with  a  gross
                           vehicle  weight  of 33,000 pounds or more, shall
                           be valid for a period of twelve (12) years.
                   305.7   CAP or MERC life begins  on the date of issuance
                           by the District, and may be  held  for a maximum
                           of  three  (3)  years without losing any  credit
                           life.
              306  CAP VALUE:
                   306.1   Except  as  provided   by   Section  305.7,  the
                           remaining  life for CAP shall  decrease  by  one
                           year for each  full  calendar year following the
                           date  of credit issuance,  and  by  one  quarter
                           calendar   year   for   each   calendar  quarter
                           following  the  date  of  issuance,  or  portion
                           thereof, until it has no remaining life.
                   306.2   The actual dollar value of  CAP  traded  or sold
                           shall  be  reported to the District pursuant  to
                           the requirements of Section 403.

              307  ALTERNATIVE FUEL CREDIT:
                   307.1   Pursuant to Section 307.2, CAP may be issued for
                           the use of an  alternative  fuel  in a flexible-
                           fuel  fleet  vehicle,  or  dedicated alternative
                           fuel vehicle, and used to meet the obligation of
                           the  fleet.   CAP  is  earned for  the  emission
                           benefits  from  transfer  and   refueling   with
                           alternative  fuels.   The CAP benefits are based
                           on the total gallons, or  therms,  or  kilowatt-
                           hours used, and is determined by completing  the
                           appropriate sections of Worksheet 1B.
                   307.2   Notwithstanding the provisions of Section 307.1,
                           no  CAP  shall  be  granted  for  fuel transfer,
                           refuelling, and evaporative emissions for heavy-
                           duty diesel-powered vehicles that are  converted
                           to operate on an alternative fuel.
                   307.3   CAP issued for each dual-certified flexible-fuel
                           fleet   vehicle   will   acknowledge   the  more
                           stringent  certification  category  and  may  be
                           registered,  sold, or traded pursuant to Section
                           303,  403  and/or  Rule  1005  -  MOBILE  SOURCE
                           EMISSION  REDUCTION   CREDIT/BANKING,   provided
                           that:
                           a)  The  alternative fuel meets the requirements
                               of the California Air Resources Board.
                           b)  At least 75% (by volume) of the fuel used to
                               power  the  vehicle  is  an alternative fuel
                               (where 1 therm of gaseous fuel = 1 gallon of
                               liquid    fuel   =   1   kilowatt-hour    of
                               electricity).
                   307.4   Fleet  owners  who  retrofit  or  repower  fleet
                           vehicles  with California  Air  Resources  Board
                           low-emission  conversions  (Air  Resources Board
                           Resolution 92-34, or as subsequently  amended by
                           the  Air  Resources  Board) to allow the use  of
                           alternative fuels may apply for MERC, subject to
                           the provisions of this  section.  The provisions
                           of this section shall not  apply  if  the  fleet
                           owner  is  required to retrofit or repower their
                           fleet vehicles  with low-emission conversions by
                           any  other local,  state,  or  federal  rule  or
                           regulation.
                   307.5   For  1994  and  later  model  year  vehicles, no
                           MERC/CAP  shall be issued for any flexible  fuel
                           vehicle, where  the  fuels are commingled in the
                           same  tank,  that  does  not   have   a  factory
                           installed  meter  to register the percentage  of
                           fuel in the tank that is an alternative fuel.

              308  VEHICLE MAINTENANCE:  A fleet operator shall comply with
                   the following conditions for all fleet vehicles operated
                   in the District:
                   308.1   Vehicles shall be maintained at a level at least
                           equal to the manufacturer's  minimum recommended
                           maintenance requirements.
                   308.2   Any  motor  vehicle  pollution  control  devices
                           installed  on  the engine when originally  built
                           shall  be in place  and  kept  in  good  working
                           order.
                   308.3   The engine  fuel  system  shall  be  set to, and
                           maintained  at,  the  manufacturer's recommended
                           fuel supply settings.

          400 ADMINISTRATIVE REQUIREMENTS

              401  CALCULATION OF COMPLIANCE:
                   401.1   The  fleet operator shall  calculate  compliance
                           status    by    completing    the    appropriate
                           worksheet(s),  or by satisfying the requirements
                           of Table 6 (6A through 6F).
                   401.2   For  purposes  of   this  Section  a  "complete"
                           worksheet  means  a  separate   worksheet   that
                           includes  applicable  information for each class
                           of   fleet   vehicles,   each   vehicle   weight
                           classification,  and  for  each  otto-cycle  and
                           diesel-cycle  engine  in  weight  classes  above
                           8,500 pounds.
                   401.3   The  fleet operator shall submit  the  completed
                           worksheets  to the Air Pollution Control Officer
                           within 45 days  after  the date of the reporting
                           period established for the  fleet in Rule 1002 -
                           FLEET INVENTORY.
                   401.4   The   completed   worksheet(s)   shall   clearly
                           demonstrate  that the obligation for  the  fleet
                           for the reporting  period  established  by  Rule
                           1002 - FLEET INVENTORY:
                           a)  has been exceeded.
                           b)  has been met.
                           c)  has not been met.

              402  ISSUANCE OF CAP:
                   402.1   The  Air  Pollution  Control Officer shall issue
                           CAP for light-duty and  medium-duty vehicles, if
                           the calculations prepared  pursuant  to  Section
                           401  clearly  demonstrate that the fleet exceeds
                           the obligation,  and  otherwise comply with this
                           rule.
                   402.2   No  CAP  shall  be  issued  for  any  previously
                           claimed REV.
                   402.3   The Air Pollution Control Officer shall list the
                           title to CAP in the Register.
                   402.4   The Air Pollution Control  Officer  shall  issue
                           one  copy  of  the  CAP certificate to the fleet
                           owner by mail or in person.  The issuance of any
                           CAP certificate shall not constitute evidence of
                           compliance with the rules and regulations of the
                           District, or a representation  or  assurance  to
                           the  recipient upon which reliance is authorized
                           or intended  that the CAP represented by the CAP
                           certificate are available from the Register.
                   402.5   Each CAP shall contain:
                           1)  Name of the  person  or  company to whom the
                               CAP is issued.
                           2)  CAP identification number, and
                           3)  Date of issuance, and
                           4)  Signature   of   one  responsible   District
                               official, and
                           5)  Life of the CAP.
                           6)  A  statement regarding  the  possibility  of
                               invalidation  of  the CAP if, upon audit, it
                               is determined by the  Air  Pollution Control
                               Officer   that   the  CAP  was  fraudulently
                               acquired, and absolving  the  District  from
                               any liability from any transaction involving
                               the CAP Certificate.
                   402.6   The  issuance  of  a  CAP  shall  not constitute
                           compliance with the rules and regulations of the
                           District,  or  a representation or assurance  to
                           the recipient upon  which reliance is authorized
                           or intended that the  CAP represented by the CAP
                           Certificate  are  available  from  the  Register
                           established  by  Rule   1005   -  MOBILE  SOURCE
                           EMISSION REDUCTION CREDITS/BANKING.

              403  CAP TRACKING:
                   403.1   The sale or transfer of any CAP must be recorded
                           in  the  Register, by the Air Pollution  Control
                           Officer,  and   must   include   the   following
                           information:
                           1)  Name  and address of the current CAP  owner,
                               and
                           2)  Name and  address  of  the  proposed new CAP
                               owner, and
                           3)  Proposed  use of the credit if  appropriate,
                               and
                           4)  The  amount   of   credit   to  be  sold  or
                               transferred, and
                           5)  The dollar value of the transaction.
                   403.2   Multiple   owners  of  CAP  shall  be  separated
                           according to agreements, filed with the District
                           between the  owners,  with  CAP  issued  to each
                           owner for their respective portion.
                   403.3   Upon   transfer  of  CAP  between  parties,  the
                           transferor's   CAP  Certificate,  a  copy  of  a
                           writing, signed  by the transferor and notarized
                           by  a notary public,  which  warrants  that  the
                           transferor  right  to  transfer the CAP free and
                           clear   of   any   and   all  liens   or   other
                           encumbrances, and authorizes the transfer of the
                           CAP  to the transferee.  This  writing  must  be
                           surrendered to the Air Pollution Control Officer
                           by the transferee, within 30 days of the date of
                           the writing  authorizing  the  transfer  of CAP.
                           The  transferor shall indemnify District in  any
                           action by a third party arising out of a dispute
                           over the transfer of the CAP.
                   403.4   Upon receipt and review of documents referred to
                           in Section  403.3,  the  Air  Pollution  Control
                           Officer shall issue a new CAP Certificate in the
                           name  of  the  transferee.   By  issuing  a  new
                           certificate  to  a transferee, the Air Pollution
                           Control Officer does not warrant that the CAP is
                           free   and  clear   of   any   lien   or   other
                           encumbrance.    If   fewer   than   all  of  the
                           transferor's   CAP   are   transferred,   a  new
                           Certificate  shall  be  issued to the transferor
                           showing  the remaining CAP.   The  District  may
                           refuse to  recognize  any  transfer  of CAP that
                           does  not comply with the requirements  of  this
                           section.
                   403.5   The original  CAP certificate surrendered by the
                           registered owner shall be filed in the Register,
                           and marked with  the date of issuance of the new
                           CAP   certificate(s),    the   amount   of   CAP
                           transferred, the dollar value  of the CAP at the
                           time   of   registration,   and   the  new   CAP
                           certificate  number(s).  If fewer than  all  CAP
                           are transferred,  the new balance in the name of
                           the  original owner  shall  be  entered  in  the
                           Register.
                   403.6   Prior  to  acquiring  MERC/CAP, as a result of a
                           sale or a trade, the person proposing to acquire
                           the MERC/CAP should verify with the District the
                           District's records of current  ownership and the
                           remaining life of the MERC/CAP.

              404  OPT-IN/OPT-OUT REQUIREMENTS:
                   404.1   The  owner  of  more than one (1) motor  vehicle
                           which are used for  commercial purposes may opt-
                           in to this rule in order  to earn CAP for light-
                           duty  and  medium-duty vehicles,  and  MERC  for
                           heavy-duty vehicles,  if  each  of the following
                           conditions is met:
                           a)  The vehicle owner must enter into a contract
                               with the District, agreeing to  be  bound by
                               all the terms and conditions of this rule.
                           b)  The agreement must contain provisions  which
                               detail the consequences for withdrawal from,
                               or violation of, this Rule.
                   404.2   A fleet owner who has opted-in to this rule  and
                           wishes to opt-out of this rule shall provide the
                           Air   Pollution  Control  Officer  with  written
                           notification  of  the  intent to opt-out of this
                           rule.

              405  REV/ALTERNATIVE FUEL AVAILABILITY/PERFORMANCE:   The Air
                   Pollution  Control Officer may waive the requirement  to
                   add REV/ALTERNATIVE  FUEL  for medium-duty and/or heavy-
                   duty fleet vehicles if the fleet  operator  demonstrates
                   to   the  satisfaction  of  the  Air  Pollution  Control
                   Officer:
                   405.1   The   medium-duty   and/or  heavy-duty  reduced-
                           emission   vehicle   and/or    engine   is   not
                           commercially available; or
                   405.2   If  available,  that  the  REV/ALTERNATIVE  FUEL
                           vehicle  is  not  able to perform  to  the  same
                           standard of operation; or
                   405.3   The refuelling/recharging  and  service  support
                           infrastructure  necessary  for the operation  of
                           the vehicle in its normal area  of  operation is
                           not available; or
                   405.4   If a medium-duty or heavy-duty reduced  emission
                           engine  is  available  for repowering a vehicle,
                           but   would   void   the   original    equipment
                           manufacturer's  warranty  for  the  chassis   or
                           drivetrain,  the  fleet  operator  shall  not be
                           required to use that engine.



          500 MONITORING AND RECORDS:
              501.1   A  fleet  operator  shall  keep  vehicle  maintenance
                      records  for each fleet vehicle while the vehicle  is
                      in the fleet, and for a period of two years after the
                      vehicle is removed from the fleet.

                                            APPENDIX A

                                                       TABLE 1

                              NOTE:  ZERO-EMISSION  VEHICLES  DO  NOT INCUR
          ANY OBLIGATION.

          TABLE 1-A  OBLIGATION  FOR  LIGHT-DUTY  AUTOMOBILES (ROG AVERAGE,
                     POUNDS/YEAR/VEHICLE)

          NOTE:     CALENDAR     FLEET        1994        1995         1996         1997          1998
         CY=CALENDAR  YEAR       CLASS
            YEAR,  CORRESPONDING
          MY=MODEL      TO
           YEAR    REPORTING
                   PERIOD

             1999     CLASS 2      MYóCY       13.90       12.90        10.30         8.28          3.85
                                  MY=CY+1      12.90       10.30         8.28         3.85          3.71

             3.71     CLASS 1      MYóCY       14.00       13.50        11.60         9.40          4.89
              NC                  MY=CY+1      13.50       11.60         9.40         4.89          3.85

                 3.85
                  NC


          TABLE 1-B  OBLIGATION   FOR  LIGHT-DUTY  TRUCKS   (ROG   AVERAGE,
                     POUNDS/YEAR/VEHICLE)

                 CALENDAR     FLEET        1994        1995         1996         1997          1998
                   YEAR       CLASS
              CORRESPONDING
                    TO
                 REPORTING
                  PERIOD

         1999     CLASS 2      MYóCY       17.10       15.80        13.30        10.60          5.85
                              MY=CY+1      15.80       13.30        10.60         5.85          5.59

         5.59     CLASS 1      MYóCY       17.30       16.80        15.60        12.60          7.78
          NC                  MY=CY+1      16.80       15.60        12.60         7.78          5.83
         5.83
          NC


          TABLE 1-C  OBLIGATION FOR  MEDIUM-DUTY GASOLINE POWERED VEHICLES,
                  6,000  TO  8,500  LBS.   GROSS  VEHICLE  WEIGHT   (ROG
                     AVERAGE, POUNDS/YEAR/VEHICLE)

                 CALENDAR     FLEET        1994        1995         1996         1997          1998
                   YEAR       CLASS
              CORRESPONDING
                    TO
                 REPORTING
                  PERIOD
         
         1999     CLASS 2      MYóCY         -           -          23.30        20.00         15.10
                              MY=CY+1        -         23.30        20.00        15.10         12.60

        12.60     CLASS 1      MYóCY         -           -            -          22.70         17.80
          NC                  MY=CY+1        -           -          22.70        17.80         15.20

        15.20
          NC


          TABLE 1-D  OBLIGATION FOR MEDIUM-DUTY  GASOLINE POWERED VEHICLES,
                     8,500  TO  14,000  LBS.  GROSS  VEHICLE  WEIGHT   (ROG
                     AVERAGE, POUNDS/YEAR/VEHICLE),

                 CALENDAR     FLEET        1994        1995         1996         1997          1998
                   YEAR       CLASS
             CORRESPONDING
                   TO
                 REPORTING
                  PERIOD

           1999     CLASS 2      MYóCY         -           -          16.90        16.10         14.40
                                MY=CY+1        -         16.90        16.10        14.40         13.70
    
          13.70     CLASS 1      MYóCY         -           -            -          16.60         14.90
             NC                  MY=CY+1        -           -          16.60        14.90         14.30

          14.30
             NC


          TABLE 1-E  OBLIGATION  FOR MEDIUM-DUTY DIESEL  POWERED  VEHICLES,
                     8,500  TO  14,000  LBS.  GROSS  VEHICLE  WEIGHT   (ROG
                     AVERAGE, POUNDS/YEAR/VEHICLE)

                CALENDAR     FLEET        1994        1995         1996         1997          1998
                  YEAR       CLASS
            CORRESPONDING
                  TO
               REPORTING
                PERIOD

        1999     CLASS 2      MYóCY         -           -          23.20        19.90         16.50
                             MY=CY+1        -         23.20        19.90        16.50         13.40

       13.40     CLASS 1      MYóCY         -           -            -          23.10         19.80
         NC                  MY=CY+1        -           -          23.10        19.80         16.50

       16.50
         NC
   
                                               TABLE 2

          TABLE 2-A  LIFETIME  AVERAGE  EMISSIONS FOR  LIGHT-DUTY  GASOLINE
                     POWERED AUTOMOBILES (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   23.53   23.40  20.80   19.60   14.30   13.90   12.80    11.90
                                          REV

               8.44               8.43    TLEV    N/A     N/A    N/A    12.50   12.40   12.00   10.10     9.17

               5.71               5.70    LEV     N/A     N/A    N/A     N/A    10.60   10.20    8.30     7.40

               3.94               3.95    ULEV    N/A     N/A    N/A     N/A     9.88    9.51    7.58     6.68

               3.22               3.22    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


          TABLE 2-B  LIFETIME  AVERAGE EMISSIONS  FOR  LIGHT-DUTY  GASOLINE
                     POWERED TRUCKS (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   25.20   24.20  22.20   20.70   18.00   17.80   17.90    17.20
                                          REV

               14.40             14.40    TLEV    N/A     N/A    N/A    13.20   13.20   12.90   11.70    11.00

               8.17               8.17    LEV     N/A     N/A    N/A     N/A    11.00   10.70    9.56     8.84

               6.01               5.98    ULEV    N/A     N/A    N/A     N/A     9.26    8.98    7.81     7.09

               4.23               4.19    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


          TABLE 2-C  LIFETIME AVERAGE  EMISSIONS  FOR  MEDIUM-DUTY GASOLINE
                     POWERED  VEHICLES, 6,000 TO 8,500 LBS.  GROSS  VEHICLE
                     WEIGHT (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   36.40   37.00  32.70   29.30   27.90   26.20   26.30    25.70
                                          REV

               23.50             23.50    LEV     N/A     N/A    N/A     N/A    17.30   16.60   15.50    14.90

               12.70             12.80    ULEV    N/A     N/A    N/A     N/A    13.20   12.50   11.40    10.70

               8.64               8.63    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


          TABLE 2-D  LIFETIME AVERAGE  EMISSIONS  FOR  MEDIUM-DUTY GASOLINE
                     POWERED VEHICLES, 8,500 TO 14,000 LBS.  GROSS  VEHICLE
                     WEIGHT (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   24.30   24.30  22.50   22.40   22.10   18.90   17.60    17.30
                                          REV

               16.00             16.10    LEV     N/A     N/A    N/A     N/A     N/A    16.60   15.50    15.20

               14.00             13.90    ULEV    N/A     N/A    N/A     N/A     N/A    12.40   11.30    10.90

               9.69               9.75    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00

          TABLE 2-E  LIFETIME  AVERAGE  EMISSIONS  FOR
           MEDIUM-DUTY  DIESEL
                     POWERED  VEHICLES,  8,500 TO 14,000 LBS. GROSS VEHICLE
                     WEIGHT (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE  MODEL   1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL    YEAR
                                  YEAR    (MY)

               1998               1999    NON-   30.40   29.50  28.60   27.80   27.00   27.00   26.80    26.80
                                          REV

               26.80             26.80    LEV     N/A     N/A    N/A     N/A     N/A    13.60   13.60    13.60

               13.60             13.60    ULEV    N/A     N/A    N/A     N/A     N/A     8.23    8.23     8.23

               8.23               8.23    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


               *     FOR VEHICLES BUILT PRIOR  TO  THE 1990 MODEL YEAR, USE
                                                                                             THE
                                                                                             FIGURES
                                                                                             FOR
                                                                                             1990
                                                       TABLE 3

          TABLE 3-A  LIFETIME AVERAGE EMISSIONS  FOR M85 POWERED LIGHT-DUTY
                     AUTOMOBILES (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   21.10   21.00  18.90   17.60   12.30   12.00   11.30    10.60
                                          REV

               7.90               7.89    TLEV    N/A     N/A    N/A    10.60   10.40   10.11    8.59     7.89

               5.17               5.16    LEV     N/A     N/A    N/A     N/A     8.63    8.35    6.82     6.13

               3.40               3.30    ULEV    N/A     N/A    N/A     N/A     7.91    7.63    6.10     5.41

               2.68               2.68    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


          TABLE 3-B  LIFETIME AVERAGE EMISSIONS FOR  M85 POWERED LIGHT-DUTY
                     TRUCKS (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   23.30   22.20  20.60   19.00   16.40   16.10   16.60    16.00
                                          REV

               13.80             13.80    TLEV    N/A     N/A    N/A    11.50   11.50   11.30   10.40     9.90

               7.62               7.63    LEV     N/A     N/A    N/A     N/A     9.36    9.14    8.22     7.68

               5.46               5.44    ULEV    N/A     N/A    N/A     N/A     7.58    7.37    6.47     5.92

               3.69               3.65    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


          TABLE 3-C  LIFETIME AVERAGE EMISSIONS FOR M85 POWERED MEDIUM-DUTY
                     VEHICLES,  6,000  TO 8,500 LBS. GROSS  VEHICLE  WEIGHT
                     (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   34.40   35.00  31.10   27.70   26.30   24.70   25.10    24.70
                                          REV

               22.90             23.00    LEV     N/A     N/A    N/A     N/A    15.80   15.10   14.30    13.90

               12.20             12.30    ULEV    N/A     N/A    N/A     N/A    11.60   11.10   10.20     9.69

               8.11               8.10    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


          TABLE 3-D  LIFETIME AVERAGE EMISSIONS FOR M85 POWERED MEDIUM-DUTY
                     VEHICLES, 8,500 TO  14,000  LBS.  GROSS VEHICLE WEIGHT
                     (ROG AVERAGE, POUNDS/YEAR/VEHICLE)  -  (GASOLINE OTTO-
                     CYCLE ENGINE APPLICATIONS)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   20.80   20.80  19.60   19.40   19.30   16.10   15.10    14.90
                                          REV

               13.90             13.90    LEV     N/A     N/A    N/A     N/A     N/A    13.80   13.00    12.80

               11.80             11.70    ULEV    N/A     N/A    N/A     N/A     N/A     9.59    8.82     8.47

               7.49               7.55    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00

          TABLE 3-E  LIFETIME AVERAGE EMISSIONS FOR M85 POWERED MEDIUM-DUTY
                     VEHICLES,  8,500  TO 14,000 LBS. GROSS VEHICLE  WEIGHT
                     (ROG  AVERAGE,  POUNDS/YEAR/VEHICLE)  -  (DIESEL-CYCLE
                     ENGINE APPLICATIONS)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   30.40   29.50  28.60   27.80   27.00   27.00   26.80    26.80
                                          REV

               26.80             26.80    LEV     N/A     N/A    N/A     N/A     N/A    13.60   13.60    13.60

               13.60             13.60    ULEV    N/A     N/A    N/A     N/A     N/A     8.23    8.23     8.23

               8.23               8.23    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00

               *     FOR VEHICLES BUILT  PRIOR  TO THE 1990 MODEL YEAR, USE
                     THE FIGURES FOR 1990

          TABLE 3-F  LIFETIME AVERAGE EMISSIONS FOR  NG/LPG  POWERED LIGHT-
                     DUTY AUTOMOBILES (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   12.70   12.60  12.50   10.70    5.37    5.35    6.21     6.22
                                          REV

               6.21               6.20    TLEV    N/A     N/A    N/A     3.66    3.49    3.48    3.48     3.48

               3.48               3.46    LEV     N/A     N/A    N/A     N/A     1.72    1.71    1.71     1.71

               1.71               1.71    ULEV    N/A     N/A    N/A     N/A     1.00    0.99    0.99     0.99

               0.99               0.99    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


          TABLE 3-G  LIFETIME  AVERAGE EMISSIONS FOR NG/LPG POWERED  LIGHT-
                     DUTY TRUCKS (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   16.90   15.90  15.40   13.50   10.80   10.80   12.10    12.10
                                          REV

               12.10             12.10    TLEV    N/A     N/A    N/A     5.94    5.94    5.94    5.94     5.94

               5.94               5.94    LEV     N/A     N/A    N/A     N/A     3.76    3.76    3.76     3.76

               3.76               3.76    ULEV    N/A     N/A    N/A     N/A     2.01    1.99    1.99     1.99

               1.98               1.97    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


          TABLE 3-H  LIFETIME AVERAGE  EMISSIONS FOR NG/LPG POWERED MEDIUM-
                     DUTY  VEHICLES, 6,000  TO  8,500  LBS.  GROSS  VEHICLE
                     WEIGHT (ROG AVERAGE, POUNDS/YEAR/VEHICLE)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   28.00   28.60  25.90   22.60   21.20   21.20   21.20    21.20
                                          REV

               21.20             21.20    LEV     N/A     N/A    N/A     N/A    10.60   10.60   10.60    10.60

               10.60             10.60    ULEV    N/A     N/A    N/A     N/A     6.48    6.48    6.48     6.48

               6.48               6.48    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00

          TABLE 3-I  LIFETIME  AVERAGE EMISSIONS FOR NG/LPG POWERED MEDIUM-
                     DUTY VEHICLES,  8,500  TO  14,000  LBS.  GROSS VEHICLE
                     WEIGHT  (ROG  AVERAGE, POUNDS/YEAR/VEHICLE)  -  (OTTO-
                     CYCLE ENGINE APPLICATIONS)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   12.10   12.10  12.10   12.00   12.00    9.06    9.06     9.06
                                          REV

               9.06               9.06    LEV     N/A     N/A    N/A     N/A     N/A     6.89    6.89     6.89

               6.89               6.89    ULEV    N/A     N/A    N/A     N/A     N/A     2.67    2.67     2.67

               2.67               2.67    ZEV     O.OO    O.OO   O.OO    O.OO    O.OO    O.OO    O.OO     O.OO

               O.OO               O.OO


          TABLE 3-J  LIFETIME AVERAGE  EMISSIONS FOR NG/LPG POWERED MEDIUM-
                     DUTY VEHICLES, 8,500  TO  14,000  LBS.  GROSS  VEHICLE
                     WEIGHT  (ROG  AVERAGE, POUNDS/YEAR/VEHICLE) - (DIESEL-
                     CYCLE ENGINE APPLICATIONS)

                                VEHICLE          1990*    1991   1992    1993    1994    1995    1996     1997
                                 MODEL
                                  YEAR

               1998               1999    NON-   30.40   29.50  28.60   27.80   27.00   27.00   26.80    26.80
                                          REV

               26.80             26.80    LEV     N/A     N/A    N/A     N/A     N/A    13.60   13.60    13.60

               13.60             13.60    ULEV    N/A     N/A    N/A     N/A     N/A     8.23    8.23     8.23

               8.23               8.23    ZEV     0.00    0.00   0.00    0.00    0.00    0.00    0.00     0.00

               0.00               0.00


               *     FOR VEHICLES BUILT  PRIOR  TO THE 1990 MODEL YEAR, USE
                     THE FIGURES FOR 1990

                                                       TABLE 4

                     NOTE:     1.   ZERO EMISSION VEHICLES DO NOT INCUR ANY
                                    OBLIGATION,  AND THEIR LIFETIME AVERAGE
                                    EMISSIONS IS ZERO (0.00).
          TABLE 4-A-1:
          NOx CERTIFICATION STANDARDS (GRAMS/ BRAKE HORSEPOWER-HOUR)

                                        NOx         ENGINE MODEL                 DIESEL-CYCLE
                                   CERTIFICATION        YEAR
                                     STANDARDS
                                     (g/bhp-hr)

                   OTTO-CYCLE       URBAN BUSES         1987                         5.1

                      10.6            SAME AS        1988-1990                       6.0
                                     COMPARABLY
                                   POWERED HEAVY-
                                     DUTY TRUCK

                      6.0             SAME AS          1991+                         5.0
                                     COMPARABLY
                                   POWERED HEAVY-
                                     DUTY TRUCK

                      5.0             SAME AS           1996                         5.0
                                     COMPARABLY
                                   POWERED HEAVY-
                                     DUTY TRUCK

                      5.0               4.0                ALSO, ARB OPTIONAL LOW-EMISSION STANDARDS,
                                                                                AS APPLICABLE

          TABLE 4-A-2:
          FEDERAL NOx CERTIFICATION STANDARDS

                      FEDERAL EMISSIONS CERTIFICATION                  USE THIS VALUE FOR CALCULATING
                   MODEL YEAR 1998+, HEAVY-DUTY VEHICLES               COMPLIANCE - NOx (g/bhp-hour)


                           LEV (California Fuel)                                    3.5

                                    ULEV                                            2.5

                                    ZEV                                             0.0


          TABLE 4-B
          HD TRUCK AND SCHOOL BUS ROLL-IN AND OBLIGATION SCHEDULE  (Roll-in
          of engines @ 1/2 the current standard.
                     Numbers Represent Pounds of NOx per new or replacement
                     vehicle averaged for compliance)

                                          OBLIGATION         1996    1997     1998    1999    2000     2001
                                           INCURRED
                                             FOR
                                             EACH
                                            MODEL
                                             YEAR

               2002                          2003     %       0%      2%       2%      2%      5%      10%
                                                    ROLL-
                                                      IN

               15%                           25%    WEIGHT
                                                CLASSIFICATION

                                                     DC[1]   N/A     577      577     577     568      553
                                                    MHD[2]

               539                           510      DC     N/A     1713     1713    1713    1687     1644
                                                    HHD[3]

               1601                          1514   OC[4]    N/A     165      165     165     163      159
                                                     MHD

               154                           146     MHD     N/A     459      459     459     452      440
                                                    SCHOOL
                                                    BUSES

               429                           406     HHD     N/A     539      539     539     531      517
                                                    SCHOOL
                                                    BUSES

               503                           476


          **FOOTNOTES**

          [1]:DC = DIESEL CYCLE

          [2]:MHD = MEDIUM HEAVY DUTY

          [3]:HHD = HEAVY HEAVY DUTY

          [4]:OC = OTTO CYCLE

          TABLE 4-C:
          URBAN BUS ROLL-IN AND OBLIGATION SCHEDULE   (Roll-in of engines @
          1/2 the current standard.
               Numbers  Represent  Pounds  of  NOx per new  or  replacement
               vehicle averaged for compliance)

                                                       VEHICLE            1993     1994
                                                        MODEL
                                                         YEAR

               1995                                     1996+      %       0%      100%
                                                                 ROLL-
                                                                   IN

               100%                                      100%

                                                                 DIESEL   N/A      987
                                                                   OR
                                                                METHANOL
                                                                POWERED
                                                                 URBAN
                                                                  BUS

               987                                       789    NATURAL   N/A      941
                                                                  GAS
                                                                POWERED
                                                                 URBAN
                                                                  BUS

               941                                       753


          TABLE 4-D:
          CONVERSION FACTORS:  These  factors  convert   NOx  standards  in
                               g/bhp-hr   to   average   annual   emissions
                               (lbs/year).   Conversion  factors  use  mean
                               load factors and average annual mileage from
                               the California Air Resources Board.

               VEHICLE GVW (LBS)     DIESEL-CYCLE        OTTO-CYCLE     URBAN BUSES        SCHOOL BUSES

               14,001 TO 33,000          117                 33             395                 93

                   33,000 +              346                 -              395                109

                     CNG             117(MHD) or             33             376        93(MHD) or 109(HHD)
                                       346(HHD)

                   METHANOL          117(MHD) or             33             395        93(MHD) or 109(HHD)
                                       346(HHD)



                                                RULE 1003 REDUCED-EMISSION FLEET VEHICLES/ALTERNATIVE FUELS
                                                                          TABLE 5

               TABLE 5-A

               FUEL FACTORS USED TO DETERMINE CREDIT FOR THE USE OF ALTERNATIVE FUELS:
               EMISSIONS CREDIT (POUNDS OF ROG PER 1000 GALLONS, OR 1000 THERMS OF ALTERNATIVE FUEL, OR POUNDS OF ROG PER KwH)

                                         LPG (lb/1000                               M100

               FUEL FACTOR          gal)               (lb/1000 gal)                      M85 (lb/1000 gal)   CNG (lb/1000
                                                                                                              therms)

               Non-vented                     2.158                                       Station with blend
               ELECTRIC VEHICLE     Vented    0.000    0.913                                                        pump:2.571
                                                                                                                    0.513
               (lb/1000 KwH)                                                              Station without
                                                                                          blend pump:               0.355


               0.387

                            RULE 1003 - REDUCED-EMISSION FLEET VEHICLES/ALTERNATIVE FUELS
                                                       TABLE 6

          NOTES:

          THESE NOTES PERTAIN TO TABLE 6 (6A THROUGH 6F, INCLUSIVE):

          1.   TABLE 6 MAY BE USED TO DETERMINE AN OBLIGATION,  IN  LIEU  OF THE OBLIGATION SPECIFIED IN TABLE 1,
               AND IN LIEU OF COMPLETING THE WORKSHEETS REFERRED TO IN SECTION  301.2  (Worksheets 1-A-1 and 1-A-
               2).

          2.   WHEN USING TABLE 6 TO DETERMINE AN OBLIGATION, DUAL-CERTIFIED VEHICLES CAPABLE OF OPERATING ON TWO
               FUELS WILL BE TREATED AS CERTIFIED TO THE CATEGORY APPLICABLE TO OPERATION  ON GASOLINE, OR DIESEL
               FUEL, REGARDLESS OF THE EXTENT TO WHICH ANY ALTERNATIVE FUEL IS USED IN THE VEHICLE.

          3.   TABLE 6 ONLY APPLIES WHEN ALL OF THE VEHICLES ADDED TO A FLEET ARE NEW, THAT  IS MY=CY OR MY=CY+1.
               TABLE  6  DOES  NOT  APPLY TO NEWLY ADDED USED VEHICLES, OR REBUILT, OR REPOWERED VEHICLES.   FEET
               OPERATORS ADDING USED VEHICLES OR REBUILDING ENGINES, OR REPOWERING VEHICLES, MUST USE TABLES 1-4,
               AS APPLICABLE, AND THE  WORKSHEETS  PROVIDED  TO CALCULATE COMPLIANCE ON A POUNDS OF EMISSIONS PER
               YEAR BASIS.

          4.   MY = MODEL YEAR, CY = CALENDAR YEAR

          5.   TO DETERMINE THE MINIMUM NUMBER OF NEW VEHICLES  NECESSARY  TO  MEET  AN  OBLIGATION, MULTIPLY THE
               NUMBER OF VEHICLES BY THE PERCENTAGE IN EACH CERTIFICATION LEVEL, FOR EACH  FLEET  CLASS AND MODEL
               YEAR

          6.   IF  THE COMBINATION OF THE NUMBER OF VEHICLES ADDED AND THE PERCENTAGE REQUIREMENTS RESULTS  IN  A
               FRACTION  OF  A  VEHICLE, THE NUMBER SHALL BE ROUNDED TO THE NEXT HIGHEST NUMBER.  IN OTHER WORDS,
               THE PERCENTAGES GIVEN BELOW ARE MINIMUM REQUIREMENTS.

          7.   PERCENTAGE REQUIREMENTS MUST BE MET SEPARATELY FOR:

                     a)  Light-duty automobiles
                     b)  Light-duty trucks (under 6,000 lbs GVW)
                     c)  Medium-duty trucks (6,000 - 8,500 lbs GVW)
                     d)  Gasoline medium-duty trucks (8,500 -14,000 lbs GVW)
                     e)  Diesel medium-duty trucks (8,500 - 14,000 lbs GVW)

          TABLE 6A:  THIS TABLE CONTAINS  THE  OBLIGATION  FOR  LIGHT-DUTY  AND  MEDIUM-DUTY  FLEETS BASED ON THE
                     PERCENTAGE OF VEHICLES CERTIFIED TO A SPECIFIC EMISSION LEVEL


               CALENDAR                                                         CLASS 2    CLASS 1
               CERTIFICATION
                 YEAR                                                            FLEET      FLEET      LEVEL OF
            CORRESPONDING                                                                             LIGHT-DUTY
                  TO                                                                                   VEHICLE
              REPORTING
                PERIOD

               MY=CY+1    MY