1. Martin Labbe Associates 2007 Emissions TMC Meeting March 2004 Economic Consequences

2. Martin Labbe Associates US Retail Sales

3. Martin Labbe Associates US Retail Sales

4. Martin Labbe Associates US Retail Sales

5. Martin Labbe Associates Inventory-To-Sales Ratios Retail Wholesale Manufacturing Total

6. Martin Labbe Associates Transportation Services Segmentation Line Haul, Regional, Local DISTRIBUTION PRODUCTION Line Haul FINAL GOODS INTERMEDIATE GOODS CRUDE MATERIALS DISTRIBUTION CENTERS PRODUCERS/ DISTRIBUTORS

7. Martin Labbe Associates Retail Outlets Distribution Centers Producers/ Distributors Regional/ Local Wholesalers End Users Line Haul/ Regional Line Haul/ Regional Line Haul/ Regional/Local Local Regional/ Local Regional/ Local DISTRIBUTION Transportation Services Segmentation Line Haul, Regional, Local

8. Martin Labbe Associates Class 8 Population Change Percent Change Year Ago

9. Martin Labbe Associates US Class 8 Vehicle Population Age Trends

10. Martin Labbe Associates Areas Impacted vDirect Economic u Cost of goods sold u Fuel cost increase u Pre-buy issues

11. Martin Labbe Associates Areas Impacted vIndirect Economic u Regional economic disruption u Cost of hiring u Layoff restrictions

12. Martin Labbe Associates Areas Impacted vEquipment u Unknown maintenance u Pre-buy quality u Component suppliers u Where to put it

13. Martin Labbe Associates Areas Impacted vOperations u Increased fuel consumption u Unscheduled downtime u Scheduled downtime u Increased training u Enforcement issues

14. Martin Labbe Associates Areas Impacted vEnvironment u Fuel issues u Cleaning traps u Disposing of waste u Disposing of traps u Diesel to gas switch

15. Martin Labbe Associates Current Estimates Fuel – 6 to 20 cents per gallon Fuel Economy – 6% to 9% loss Equipment - $6,000 to $15,000 Additional Maintenance - $1,500 to $3,000 per year Waste material handling - $???? Roadside fines - $?,??? per incident

16. Martin Labbe Associates Net Profit Margins $5 to 25 million Over $25 Million

17. Martin Labbe Associates Timing – MLA Estimates 1/1/2007 – Engines in all vehicles 9/1/2006 – Final version to production 8/1/2005 – Current estimate of availability 10/1/2005 – Estimate of production 10 months of testing

18. Martin Labbe Associates General Conclusions Gross misestimate of impact –Economic –Operations –Carrier profitability –Environment –Fuel economy –Energy conservation