TULARE, CA — O2Diesel Corporation announced on December 8 that it began fueling a range of heavy-duty diesel-powered equipment operated by the County of Tulare, CA, on O2Diesel in what could become the company´s first one million gallon per year customer. Located in California´s agriculturally-rich Central Valley, the County of Tulare could use in excess of 300,000 gallons of O2Diesel fuel a year operating its entire 198 diesel-powered vehicles used for road maintenance and construction projects as well as towing services. According to Dan Hurt, equipment superintendent with the County of Tulare, "O2Diesel offers an alternative to more expensive and less user-friendly fuel options like compressed natural gas (CNG) and water-diesel emulsions. Fleets like ours are under pressure from the California Air Resources Board (CARB) to deploy emissions-reducing technologies verified and required under the state´s diesel emission-control strategy regulations." By mid-2005, O2Diesel expects its product O2Diesel will be verified by CARB as a "diesel emission control strategy" (DECS) which will give fleets another emission-reduction option to more costly fuels and/or new equipment choices. In September 2003, O2Diesel was verified by CARB as an "alternative diesel fuel," setting the stage for widespread interest in the fuel for its emissions benefits for centrally fueled fleets, such as those operated by municipalities like the County of Tulare. Working with its fuel supply and distribution partners in California, O2Diesel will terminal-blend its fuel to specification using the latest technology, and deliver it to the County of Tulare through the Fresno, CA-based Silvas Oil Co. O2Diesel is available in California and any fuel market using the existing diesel fuel storage, supply, and distribution network.