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The Alternative Fuel Vehicles Institute held a webcast about alternative fuels for school buses on March 13, 2007. The concern is about the health impacts of vehicle exhaust, especially particulate matter and NOx emissions:
Over the past decade, dozens of studies from all over the world have shown that spending time in close proximity to heavy traffic, especially diesel truck traffic, is associated with a wide range of morbidity effects, as well as increased mortality
Diesel exhaust particulate (DEP) declared a toxic air contaminant by ARB in 1998
http://www.afvi.org/webcast/13mar07.html (look for the link to the webcast).
The webcast is about 90 minutes long so get yourself some coffee and unplug the phone before you start.