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Date: Tuesday, September 9, 2008

Re: 

Clean Trucks Program - Southern California

On October 1, 2008, the Ports of Los Angeles and Long Beach (the Ports) plan to implement their long-anticipated Clean Trucks Program to reduce diesel engine emissions. Below is a recent letter from the Executive Director of the Port of Los Angeles to their customers that outlines this program.

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Dear Valued Customer:

Last October, the Los Angeles Board of Harbor Commissioners (Board) approved a tariff that will result in substantial reduction in air pollution through the progressive ban of older, dirtier trucks calling at the Port of Los Angeles. The new tariffs at the ports of Los Angeles and Long Beach require by the year 2012, that drayage trucks must meet United States Environmental Protection Agency, 2007 (USEPA) heavy duty truck emissions standards to be allowed entry into terminals at either ports.

Last December, the Board continued implementation of the Clean Trucks Program (CTP) with the approval of a tariff implementing a Clean Truck Fee (CTF) to help finance the retrofit or replacement of banned trucks. In addition, the Board established a Clean Truck Fund to hold the monies collected under the CTF. The Port developed a Truck Concession Program that includes incentives to turnover dirty trucks as rapidly as possible, ensure sustainability, provide reliable truck service, and enhance efficiency and security. These concessions will be issued to Licensed Motor Carriers (LMC) that meet the criteria outlined in the concession program. Key components of the program include insurance requirements, safety and maintenance plans, parking requirements, and a transition to employees over a five-year period.

The CTP process will work as follows:

* Beginning October 1, 2008 all pre-1989 truck engines will be banned at the Port of Los Angeles. This will be verified using the VIN numbers of each truck;

* Beginning October 1, 2008 any truck entering the gate with an engine model year between 1989 and 2006, including non-compliant 2007 USEPA standard trucks, will be assessed a $35 per loaded Twenty-Foot Equivalent Unit (TEU) CTF;

* The fee will be collected from the Beneficial Cargo Owners (BCO) by the terminal operators;

* The BCO will secure credit, acknowledge cargo ownership for both local and intermodal cargo and be invoiced via an existing web system;

* CTF will NOT be assessed on privately funded 2007 model year diesel trucks and privately or Port-funded 2007 model year Liquefied Natural Gas (LNG) trucks;

* 2007 model year diesel trucks funded by Port grants or other public funding will be assessed the CTF of $35 per TEU; and

* Grants are available to the LMC to assist in the purchase of USEPA compliant 2007 diesel and alternative fuel trucks. The Port will also assist in low cost credit opportunities for the remaining balance;

We recognize that some confusion may exist due to pending litigation by the American Trucking Association. This litigation affects the Concession Program only. It does not affect the truck ban or CTF. As such the ban and fee will become effective on October I, 2008, regardless of the status of this litigation. On this date all pre-1989 trucks will be banned from the Port and BCO's that do not use USEPA 2007 compliant alternate fuel or privately funded diesel vehicles will be assessed a fee of $35 per TEU for cargo that moves through the port.

The Port is committed to reducing emissions. Removing polluting trucks from the supply chain is a key element in achieving this goal. We are committed to implementing the CTP on October 1, 2008, and look forward to your support in our efforts to dramatically reduce Port related truck emissions.

In early September, the Port of Los Angeles will be conducting a web seminar to discuss the CTP in further detail and answer any questions. We will communicate those dates and times once they have been scheduled.

In the meantime, if you have further questions or would like additional information, please contact the Marketing Division at (310)732-3840 or visit our website at www.portoflosangeles.org.

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