Legislative and Regulatory Overview Diesel Engine Emission Legislation & Compliance Illinois Equipment Distributors October 14, 2009 Bob Jones SES, Inc Powis Road West Chicago, IL 60185

Legislative and Regulatory Overview O’Hare Modernization Program Illinois Tollway Cook County State of Illinois

O’Hare Modernization

O’Hare Modernization Program

EffectiveCurrently. Fuel UseUltra low sulfur diesel 50+ HP 1)Off road equipment used by contractors, subs and suppliers on site for 14 consec- utive days. 2)OR On road equipment transporting materials to and from site exceeding 5 days/month.

OMP - continued Equipment TechnologyOn site 14 consecutive days. Diesel Oxygen Catalysts OR Diesel Particulate Filters. 1) On EPA verified retrofit technology list verified by Californian Resources Board. 2) OR Verified by EPA or represented by Mfg. to provide reduction of 20% PM, 20% CO and 40% HC with ultra low sulfur fuel. 3) OR EPA Tier II or newer. 4) OR HP 2004 Model Year HP 2003 Model Year HP 2001 Model Year HP 2002 Model Year UP 2006 Model Year

OMP - continued ComplianceSubmit monthly fuel use for each vehicle. Prior to start.Contractor must submit detailed list of equipment and vehicles on site. 1)Contractor name. 2)Equipment number, type, make, model, year, HP rating, VIN. 3)EPA Tier-Rule compliant level or emission control device make, model and EPA or manufacturer verification letter.

OMP - continued PenaltyPenalty for not submitting fuel report or machine information is withholding monthly progress payments. Idling Restrictions Diesel powered vehicles and equipment: No more than 5 consecutive minutes per 60 minute period, if not in use, occupied by operator or otherwise in motion. Exemptions are for traffic conditions, ambient temperatures and/or repair.

Illinois Tollway Timing: Currently in effect. Applies to all 50 HP+ Diesel Equipment used on Project either; 1) Retrofitted with emission control device and use “on-road” <500 ppm in sulfur content, 2) Or use ULSD. All construction motor vehicles, on-road, off-road, gas or diesel shall comply with state and federal emission controls, including opacity.

Illinois Tollway – continued The Retrofit Device Must Be: 1. EPA Verified Retrofit Technology list. 2. Minimum Reduction of 20% PM, 40% CO and 50% HC with on-road diesel fuel.

Illinois Tollway – continued Contractor submits a list of equipment. 1. Using on-road diesel and an emission control device. 2. Or ultra low sulfur diesel. List Includes: A) Equipment Number Type, Make, Contractor Name B) Emission Control Device Make, Model, EPA Verification Number C) Type and Source of Clean Fuel 3) Submit monthly report updating equipment and certified copies of fuel delivery slips by machine.

Illinois Tollway – continued Penalty 1. Non-compliant equipment cannot be on site. 2. Notice of Non-compliance. 3. Environmental deficiency deduction.

Illinois Tollway – continued Idling Law Public Act (June 2006) restricts diesel truck and bus idling to 10 Minutes, 5 minute load and unload exemptions for driver comfort, safety and cargo. Penalty First Offense – warning. Second Offense – Environmental Deficiency Deduction.

Cook County

Effective NowAll contracts $2 million or more, Ultra Low Sulfur Diesel. On Road Technology Within two years from 05/28/09 for heavy duty diesel vehicles, 8500 pounds gross vehicle weight, verified diesel emission control device, 85% particulate matter reduction. OR Reduces emissions to less than.01 grams of PM per brake horsepower-hour. OR Repower or replace with an engine meeting USEPA 2007 heavy duty highway diesel standards. OR For non-road, an engine meeting Tier 4 non-road diesel standards. OR New diesel engines meeting said emission standards.

Cook County - continued Exceptions A)Heavy duty vehicle on site working 3 days or less over life of project. B)If Cook County finds vehicle cannot be retrofit with Level 3 controls then Level 2 controls apply. If Cook County finds vehicle can not be retrofit with Level 2 controls then Level 1 controls apply. C)Any heavy duty diesel vehicle with Level 2 controls installed prior to effective date (05/28/09) shall have one additional year to comply. D)Any contractor that owns or operates 5 or less HD diesel vehicles shall have additional 2 years to comply.

Cook County – continued Non-Road Within two years from 05/28/09. Technology Level 2 controls verified diesel emission control device achieving 50% particulate matter reduction. Exceptions: a) Non-road vehicle working 3 days or less over life of project. b) If Cook County finds vehicle can not be retrofit with Level 2 controls then level 1 controls apply. c) Any non-road vehicle with Level 1 controls installed prior to 05/28/09 shall have one additional year to comply. d) Any contractor that own or operates 5 or less non-road vehicles shall have additional two years to comply.

Cook County - continued Non-Road Effective January 1, 2014 Technology Level 3 controls 85% PM reduction; OR Less than.01 grams PM per brake HP – hour; OR Tier 4 non-road diesel; OR New diesel engines meeting said emission standards.

Cook County - continued Exceptions A)Non-road diesel vehicles on site working three days or less over life of project. B)Contractors operating 5 or fewer diesel non-road vehicles have additional two years to comply.

Cook County – continued Compliance Thirty days before beginning work, contractor submits list of HD vehicles, non-road and generators to be used on project. 1)Name and contact person submitting list. 2)Equipment type, manufacturer, engine model year, engine certification (Tier rating), HP, plate, serial number, expected fuel usage or hours of operation. 3)Pollution control technology installed, technology type, serial number, make, model, manufacturer, EPA/CARB verification number/level, installation date. 4)Must submit a request to add equipment not on list for prior approval. Idling During periods of inactivity, idling shall not exceed time allowed under state and local laws.

Cook County – continued Enforcement1)Contractor liable for a fee of $200 for review of contractors compliance. 2)Random inspections. 3)Non compliant equipment removed or retrofit within 24 hours. Penalty - Liquidated Damages 1)$5,000 for each violation. (Each piece of non-complying equipment and each day is a separate violation), not to exceed $50,000 for any one piece of equipment. 2)Any false statement by contractor in any matter relating to compliance will result in the contractor paying $10,000 to the County for each such statement. 3)Fees and liquidated damages to Cook County Environmental Management Fund.

State of Illinois

AuthorityExecutive Order Number 11 issued by Governor Quinn April 22, 2009 EffectiveNow All state funded road construction in non-attainment zones. FuelUltra low sulfur diesel. EquipmentAll off-road vehicles: Verified diesel emission control device that achieves a particulate matter emission reduction of 50%.

PM Grams per brake horsepower – hour. HPTier 1Tier 2Tier 3Tier 4 InterimFinal

SUMMARY O’Hare Modernization Program (OMP) Tollway EffectiveNow FuelULSDControl device and on road fuel or ULSD Equipment14 Days EPA/DOC or DPF 20% PM 20% CO 40% HC or Tier II or – up 2006 EPA Tech listed On Road Fuel 20 PM 40 CO 50 HC

SUMMARY OMP Tollway Contractor Submit Detailed Equip. List Control Device Fuel Type Fuel Use - Monthly Detailed Equipment List and Control Device Idling5 Min/60Min.Full use-monthly 10 Min.–truck & bus 5 Min. Load and Unload