2. Emissions Solutions Al Gray Technical Communicator Cashman Equipment

3. What is Driving California Regulations Clean Air Act Federal Implementation Plan State Implementation Plan State of California out in front of the Fed’s Diesel particulate matter (PM) listed as toxic air contaminant (TAC) Diesel Risk Reduction Plan 75% reduction by 2010 85% reduction by 2020 Staff manages the rule development process ARB Board adopts the rules –other states can also adopt.

4. Emission Trends

5. Definitions BACT: Best Available Control Technology VDECS: Verified Diesel Emissions Control System CARB: California Air Research Board DOORS: Diesel Off-Road Online Reporting System

6. Vehicle Applicability Regulation applies to all off-highway, self propelled, diesel vehicles greater than or equal to 25 hp that operate in California “Off-Road” means cannot be registered or driven safely on-road Vehicle global exemptions are: Vehicles used greater than ½ of their time for agriculture Marine, Recreational, Combat/Tactical Support, Locomotives, Port and Intermodal Rail yard equipment Dedicated emergency or snow removal vehicles Specialty vehicles Low-use vehicles (operated less than 100 hours annually in the state of California) The information for exempt vehicles is required for yearly reporting, but are not included in any of the calculations

7. Achieving Compliance Each fleet must be compliant for NOx and PM each year (except small fleets for NOx) There are two paths for achieving compliance each year Target Best available control technology (BACT) These methods can be changed year to year Extreme example for a large or medium fleet Year 1, PM BACT and NOx target Year 2, PM target and NOx BACT Year 3, PM BACT and NOx BACT

8. Requirements by Fleet Size Large Fleet –HP > 5,000 –Initial report on April 1, 2009 –First emissions compliance date is March 1, 2010 –Subject to NOx and PM requirements Medium Fleet –HP > 2,501 & <5,000 –Initial report on June 1, 2009 –First emissions compliance date is March 1, 2013 –Subject to NOx and PM requirements Small Fleet – –HP < 2500 –Initial report on August 1, 2009 –First emissions compliance date is March 1, 2015 –Subject to only PM requirements

10. BACT for NOx Before 2015 requires 8% per year of fleet horsepower to be retired, or replaced or repowered with higher tier vehicle –i.e Tier 2 or better; 10% after 2015 Start with lowest tiered engines No Tier 0 equipment can be added after March 2009 Vehicles re-designated as low-use count as turnover Exemptions: Vehicles less than 10 years old, Specialty vehicles, Vehicles retrofitted within last 6 years with highest VDECS, Engines meeting the Tier 4 interim or final standards No turnover requirement until 2013 if all vehicles with Tier 0 engines have been turned over for NOx

11. General Requirements Each vehicle labeled CARB-issued ID number Vehicle idling limited to 5 consecutive minutes Exceptions -machines in queue, safety inspections, etc. Will require a written policy by May 2009

13. Caterpillar Emissions Tool

14. Cat Tool Fleet Data

18. Proposed Modifications

20. Rules for Adding Vehicles Beginning March 1, 2009, no Tier 0 engines can be added to an owner’s fleet  this includes Tier 0’s that are equipped with a DPF already The following apply only during the years that the fleet is required to report –For fleets meeting fleet average targets, new fleet averages must be compliant within three months of a vehicle’s addition –For large and medium fleets using BACT, additional vehicles must have at least Tier 2 engines and a NOx emissions factor equal to or better than the NOx fleet average target for the most recent compliance date –For small fleets using BACT, the additional vehicle must have at least a Tier 2 engine

21. Compliance Dates

22. After Treatment

23. Web Page Please visit www.cat.com

24. Filters

25. Installed DPF Filter

26. Summary We trust that the information presented will assist you in making knowledgeable emission decisions as it relates to: Equipment repowers Equipment retrofit options Registered equipment rental from Cashman for use in California Equipment fleet planning and optimization in order to meet CARB regulations Fleet compliance reporting For additional questions pertaining to Emissions, please contact your PSSR (Product Support Sales Representative).

27. Thank you! Q & A