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Reports that New York City, in an effort to reduce harmful emissions while raising the fuel economy of its huge fleet of vehicles, is set to impose strict environmental standards on cars and vans it buys, and to require that diesel trucks and buses be modified. Outlook for the City Council to approve a wide-ranging package of environmental bills intended to reduce tailpipe emissions; How the additional costs of using clean fuel and modifying existing engines with filters will be offset by savings in fuel consumption and lower health care costs; Implications for the city; Other changes, including antipollution devices for school buses; The city's focus on cleaning up diesel engines that have been identified as major sources of pollution.