(f) In order to comply with the requirements of subdivision (e) of this section, the BART regulated entity or contractor shall first perform a HDV inventory according to a department prescribed format. The BART regulated entity or contractor shall then select one of the following three options for each of its inventoried HDVs:

1. (1) Option 1 - replacement or retirement:

   1. (i) replacement/re-power with an engine certified to the applicable 2007 EPA standard for particulate matter (0.01 g/bhp-hr) as set forth in section 86.007-11 of title 40 of the Code of Federal Regulations (see Table 1, section 200.9 of this Title) or to any subsequent USEPA standard for such pollutant that is at least as stringent; or
   2. (ii) replacement with an alternative fuel engine or vehicle which does not operate on diesel fuel; model year 2004 - 2006 alternative fuel engines must be certified to the optional, reduced emission standards as specified in title 13, California Code of Regulations, section 1956.8(a)(2)(A) (see Table 1, section 200.9 of this Title); or
   3. (iii) retirement of the vehicle or removal of the vehicle's engine.

2. (2) Option 2 - BART evaluation and selection process:

   1. (i) BART shall be selected from the diesel retrofit technologies (products) verified by either the EPA or CARB.

   2. (ii) The specific procedures for evaluating and selecting BART for each applicable HDV are as follows:

      1. (a) The BART regulated entity or contractor shall review the EPA and CARB list of BART classification level 3 products to determine if any of the classification level 3 products are applicable and available for the inventoried specific HDV engine and application. In no case shall a product(s) be selected which results in a net increase in the emissions of either PM or NO_x.
      2. (b) If more than one classification level 3 product is applicable and available and the product(s) provides an additional NO_x reduction benefit, a cost analysis shall be performed in accordance with clause (c) of this subparagraph.
      3. (c) If the cost of the product(s) that provides the greatest NO_x reduction is less than or equal to 30 percent more than that of the other applicable and available classification level 3 products, then the product(s) with the greatest NO_x reduction shall be selected. For the purpose of the cost analysis, criteria that shall be considered are the cost of the products themselves and the cost of installation.
      4. (d) If more than one classification level 3 product is applicable and available and none of which contain an additional NO_x reduction benefit, then any of those applicable and available classification level 3 products may be selected.
      5. (e) If no classification level 3 product is determined applicable and available for use on a specific HDV engine and application, then the BART regulated entity or contractor shall continue the evaluation and selection process for classification level 2 products as indicated in clause (f) of this subparagraph.
      6. (f) The same evaluation and selection process as noted in clauses (a) through (d) of this subparagraph performed for classification level 3 products shall be performed for classification level 2 products.
      7. (g) If no classification level 2 product is determined applicable and available for use on a specific HDV engine and application, then the BART regulated entity or contractor shall continue the evaluation and selection process for classification level 1 products as indicated in clause (h) of this subparagraph.
      8. (h) The same evaluation and selection process as noted in clauses (a) through (d) of this subparagraph, performed for classification level 3 products shall be performed for classification level 1 products.
      9. (i) If no classification level 1 product is determined applicable and available for use on a specific HDV engine and application, then the BART regulated entity or contractor shall apply for a waiver for the specific HDV according to the procedures specified in section 248-4.1(b) of this Part.
3. (3) Option 3 - heavy duty vehicle/engine useful life waiver. Provisions for obtaining a heavy duty vehicle/engine useful life waiver are described in section 248-4.1(c) of this Part.

(g) The BART regulated entity and contractor:

1. (1) shall fully document all steps in the option 1 or 2 selection process as noted in subdivision (f) of this section;
2. (2) make available or provide all documentation to the department upon its request; and
3. (3) shall retain all documentation generated in the option 1 or 2 selection process for five years or as long as the selected option is in use, whichever is longer.

(j) If an option 1 technology is selected and installed, then the selected technology shall remain in use for the remainder of the vehicle's or engine's useful life, or, in the case of a contractor for the duration of the regulated entity work. If the selected engine or vehicle experiences a failure, then the BART regulated entity or contractor shall select and install for replacement:

1. (1) an option 1 technology; or
2. (2) an option 2 technology using the evaluation and selection process in accordance with paragraph (f)(2) of this section.

(k) If an option 2 technology is selected and installed, then the selected BART product shall remain in use until the end of the vehicle's or engine's useful life, or, in the case of a contractor for the duration of the regulated entity work at a minimum. If the selected and installed BART product experiences a failure, then the BART regulated entity or contractor shall select and install:

1. (1) the same BART product; or
2. (2) a BART product using the evaluation and selection process in accordance with paragraph (f)(2) of this section; or
3. (3) an option 1 technology.

(l) For HDVs that meet the applicability requirements of this Part and are subject to the consent decree, those HDVs must:

1. (1) have the approved low NO_x rebuild kits installed. Low NO_x Rebuild Kits shall be installed on the vehicle's engine prior to the installation of any classification level 1, 2 or 3 BART device; and
2. (2) have readily observable low NO_x rebuild labels permanently affixed to their respective engines.