1. Working together for clean air Central Puget Sound Diesel Emission Reduction Program Dave Kircher Manager, Air Resources Department June 7, 2007 Dave Kircher Manager, Air Resources Department June 7, 2007 Option: customize this presentation to your audience (i.e. construction dust, asbestos, etc.) by placing a topical photo over this photo. Be sure to match your new photo to this photo’s size, use the “Crop” tool (looks like barbed wire) in the “Picture” tool bar to remove the part of your picture that is too wide or too long. Delete this box before presenting (left click in the box, then click on the hash-mark border, then click “Delete”).

2. Presentation Overview How we got started Five year funding from the WA Legislature How we are implementing the program Next steps toward sustainable funding How we got started Five year funding from the WA Legislature How we are implementing the program Next steps toward sustainable funding

3. History of the Puget Sound Diesel Solutions Program A local program developed in collaboration with EPA’s National Voluntary Retrofit Program Focused on introducing cleaner fuels and emission retrofits on diesel engines in the four central Puget Sound counties Began in early 2001, starting with EPA and local fleet funding Initial focus on transit fleets, school buses and other municipal vehicles A local program developed in collaboration with EPA’s National Voluntary Retrofit Program Focused on introducing cleaner fuels and emission retrofits on diesel engines in the four central Puget Sound counties Began in early 2001, starting with EPA and local fleet funding Initial focus on transit fleets, school buses and other municipal vehicles

4. WA State Funding for School Buses Senate Bill 6072 passed in 2003. Our Agency and our lobbyist promoted this legislation Provides $25 million statewide over five years Initially focused on retrofitting school buses In 2005, House Bill 1397 amended program to allow the funds to be used for all public diesel equipment Program extended until 2020. Current funding expires 2008 Additional State funding has been available from Governor’s Budget Senate Bill 6072 passed in 2003. Our Agency and our lobbyist promoted this legislation Provides $25 million statewide over five years Initially focused on retrofitting school buses In 2005, House Bill 1397 amended program to allow the funds to be used for all public diesel equipment Program extended until 2020. Current funding expires 2008 Additional State funding has been available from Governor’s Budget

5. Diesel Solutions Program Implementation School buses Transit fleets Municipal fleets Marine-related projects Rail Solid waste trucks Other School buses Transit fleets Municipal fleets Marine-related projects Rail Solid waste trucks Other

6. Diesel Solutions Program Implementation (continued) A major implementation challenge has been timely installation of retrofits Agency worked with Ecology to develop a statewide contract (one contractor) and developed competitive contracts of our own for some individual projects. With half the school buses in the State, our Agency needed a better contracting tool For school buses, we developed a “master contract” with four installation firms. We issue work orders under this contract for specific projects. A major implementation challenge has been timely installation of retrofits Agency worked with Ecology to develop a statewide contract (one contractor) and developed competitive contracts of our own for some individual projects. With half the school buses in the State, our Agency needed a better contracting tool For school buses, we developed a “master contract” with four installation firms. We issue work orders under this contract for specific projects.

7. Sustainable Funding Since state funding sunsets July 1, 2008, Agency and Ecology co-sponsored a Diesel Funding Task Force in the Summer of 2006 Diverse representation Task force felt that up to $20 million annually was needed Considered a variety of revenue options including title transfer fees, motor vehicle excise tax, battery and/or tire tax, and a carbon/emission tax. Since state funding sunsets July 1, 2008, Agency and Ecology co-sponsored a Diesel Funding Task Force in the Summer of 2006 Diverse representation Task force felt that up to $20 million annually was needed Considered a variety of revenue options including title transfer fees, motor vehicle excise tax, battery and/or tire tax, and a carbon/emission tax.

8. Sustainable Funding (continued) During the past legislative session, Agency and partners developed an “omnibus” clean air and clean fuels bill. Aimed at both climate and diesel emission reduction HB 1303 passed legislature without diesel funding since the lawmakers could not decide on a source of funding. Bill does enhance the diesel program... accelerated school bus replacement program, specifically addresses private fleets, gives Ports authority to provide retrofit grants to their tenants. We will be working on long term funding in 2008 session. During the past legislative session, Agency and partners developed an “omnibus” clean air and clean fuels bill. Aimed at both climate and diesel emission reduction HB 1303 passed legislature without diesel funding since the lawmakers could not decide on a source of funding. Bill does enhance the diesel program... accelerated school bus replacement program, specifically addresses private fleets, gives Ports authority to provide retrofit grants to their tenants. We will be working on long term funding in 2008 session.

9. Conclusions, Next Steps Diesel Solutions has been a very successful voluntary/incentive program State funding has helped and has been leveraged with federal grants and partner contributions Sustainable funding like TERP and Carl Moyer are still necessary and will be pursued in 2008 The Agency is also developing a diesel risk reduction strategy which will include criteria for project selection in anticipation of sustained funding Diesel Solutions has been a very successful voluntary/incentive program State funding has helped and has been leveraged with federal grants and partner contributions Sustainable funding like TERP and Carl Moyer are still necessary and will be pursued in 2008 The Agency is also developing a diesel risk reduction strategy which will include criteria for project selection in anticipation of sustained funding

10. Thanks!