June, 2007 1

California Air Resources Board Regulations

John McClelland

Mike Graboski

June, 2007 2

State Government Players

• Cal Legislature approves bill• Governor signs bill into law• Governor with legislative approval

appoints Air Resources Board (ARB)• ARB directs ARB staff(Cal EPA) to

develop regulation implementing law• ARB approves regulation and authorizes

ARB staff to implement and enforce

June, 2007 3

National Ambient Air Quality Standards NAAQS

• Health Based – population exposure

• PM2.5, PM10, Ozone, CO, NO2

• States can use economics to find least cost approach to meeting NAAQS but cannot use cost as an argument for avoiding NAAQS

June, 2007 4

Link Between Engine Emissions and NAAQS

NOX (exhaust) + atmospheric gases = PM2.5

NOX, Hydrocarbon (exhaust) + atmospheric gases = ozone

June, 2007 5

Authority to Regulate Emissions

• California must meet NAAQS as required by Federal Clean Air Act (CCA) and Cal Clean Air Act

• CAA defers certain legal authorities to California to control engine emissions

June, 2007 6

NAAQS Legal Requirements

• California must meet PM2.5 NAAQS by 2015• All California air districts must meet ozone

NAAQS between present and 2023• California must provide EPA PM2.5 (2008)and

Ozone (2007) State Implementation Plans (SIP’s) showing how the state will comply with NAAQS

• SIP planning provides emission budgets to various emitting groups

June, 2007 7

Diesel Risk Reduction Program

http://www.arb.ca.gov/diesel/dieselrrp.htm1983: California Legislature enacted Bill (AB) 1807:

Health and Safety Code 39650-39674) to reduce exposure to toxic air contaminants (TACs)

8/1998: ARB identified diesel PM as a TAC (71.2% of statewide cancer risk)

9/2000: Board approves Diesel Risk Reduction Plan that requires specific (ATCMs) regulations designed to reduce diesel PM emissions to the greatest extent feasible & at least 85% by 2020

June, 2007 8

Regulatory Process

• Legal Authorization to regulate is established

• Regulating Agency analyzes technology and feasibility – seeks input from regulated sector

• Agency refines analysis & proposes regulatory language

• Public Meetings & public comment

June, 2007 9

Regulatory Process- Concluded

• Agency proposes final rule at Public Hearing with Statement of Reason (SOR)

• Legal entity ( For Air, Air Resources Board) approves rule

• Office of General Counsel approves rule

• Agency implements rule

June, 2007 10

How Businesses Can Affect Regulations

• Generally, a regulatory action cannot be stopped once initiated

• Business cannot benefit by entering late in the regulatory process

• Business must interact with the Agency and provide honest information regarding the impact of the proposed rule

June, 2007 11

ARB Regulations Affecting ARA Members

• PERP

• Mobile Off-Road In-Use (2007)

• Mobile On-Road In-Use (2007 or 2008)

• Agricultural Engines ( future)

• LSI (2007)-Large Spark Ignition

• SORE ( 2003)-Small Off Road Engines

• Air Toxic “Hot Spots” Act (1987)

June, 2007 12

Off Road Engine Tiers by Date

Min hp 25 50 75 100 175 300 600Max hp 49 74 99 174 299 599 749 >= 750

Tier Engine Model Year

1 1999 1998 1998 1997 1996 1996 1996 20002 2004 2004 2004 2003 2003 2001 2002 20063 2008 2007 2006 2006 20064I 2008 20084 2013 2013 2012 2012 2011 2011 2011 2011

June, 2007 13

Off-road SI Standards by Date

Engines with > 1 liter Displacement

2007 Model Year Standard

2010 Model Year Standard

June, 2007 14

Questions?

June, 2007 15

Portable Equipment Regulations

“Equipment You Tow”

June, 2007 16

Regulations

• Portable ATCM: Sets out emission requirements to the AQMD’s

• PERP (Registration): Sets out a statewide registration option to permitting each portable engine in affected districts

June, 2007 17

AIR Toxic Control Measure

http://www.arb.ca.gov/regact/porteng/fro.pdf

• ATCM is used as the primary legal authority to regulate fleet emissions

• Portable ATCM specifies fleet emission and reporting requirements

June, 2007 18

Portable ATCM

• Applies to 50 hp and larger portable engines• January 1, 2006: most stringent standards are

required for new engines• 93116.3(b) Requires all portable engines

(exceptions) to be Tier 1 or higher January 1, 2010

• 93116.3(c) Requires portable fleets (exceptions) to meet increasingly stringent average emissions weighted by horsepower by 1/13 , 1/17, 1/20

June, 2007 19

Portable ATCM

• 93116.4 Record Keeping: Begins January 1, 2008 for alternative fueled engines

Ends when fleet is Tier 4 or “equal”

• March 1, 2011 Provide fleet inventory report and fleet average for 2010

• March 1, 2013, 2017, 2020- Provide Compliance Certifications and Reports

June, 2007 20

PERP- Registration

• Applies to 50 hp and larger portable engines and Portable Equipment Units. Under 50 hp certified engines may be registered

• DI and SI engines• Portable engine- Compressor, welder,

generator etc- cannot be driven!• Equipment Unit produces PM-10 as well as

PM2.5 from engine (e.g. crushing plant)• Located at a fixed site for less than 1 year

June, 2007 21

PERP

• Voluntary program– Legally, all portable engines must be

registered in the state program or permitted in each district where the engine operates

– Harmonized with ATCM so permitting requirements at District are at least as stringent as PERP

June, 2007 22

PERP

• Engines and equipment units must be registered separately

• Misrepresentation is a violation subject to enforcement

• ARB has 90 days to issue or deny a registration• Legally, you cannot put portable equipment into

service without an issued registration

June, 2007 23

PERP

Eligible Engines – New Registration• Certified diesel engine• Certified spark-ignition engine• Must be one of the following:

1. Most stringent emission standard engine2. Flexibility Engine3. Resident Engine

• Must have non-resettable hour meter

June, 2007 24

PERP

Most Stringent Standard– If you order with 6 months before a change

in standards– You can verify the order– You take possession after change in

standards– You have 6 months after the standards

change to register previous standard unit

June, 2007 25

PERP

Most Stringent Standard– This means newest Tier or most modern SI– ARB can waive most stringent standard

requirement if sufficient most stringent standard engines do not exist

June, 2007 26

PERP

Flexibility Engine– These are engines of older emissions standards that

are allowed to be sold by a volume formula established by EPA to help smooth out supply problems during transition to new standards

– The flexibility engine might have a tag such as:

– THIS ENGINE IS EXEMPT UNDER 40 CFR 89.102 FROM EMISSION STANDARDS AND RELATED REQUIREMENTS

June, 2007 27

PERP

Resident Engine• A Tier 1 or higher engine that was provenly operated

in California Between 1/1/04 & 10/1/06– Can be registered between 1/1/07 and 12/31/09 – Total fees include new registration, mandatory

inspection, back fees to date specified by ARB (typically purchase date), penalty

– Penalties increase with time• ATCM allows Tier 0 engines to be permitted at the

discretion of a local district - not eligible for PERP

June, 2007 28

PERP

How to Registerhttp://www.arb.ca.gov/portable/perp/perp.htm

Forms1. General Information1-A. Fee Calculation2. Engine Data2-A. Proof of Residency3-A through 3-F Equipment Unit7. Modification to Existing Registration (ownership)8. Administrative Actions for Existing Registrations

PERP- Engine Purchases

Flexibility Engines

These engines are certified to a lower Tier.

You should specify in your purchase contract that only the most current Tier engine must be delivered as part of the equipment.

June, 2007

June, 2007 30

PERP

1. Most Current Tier Engine– Fill out forms 1, 1-A, 22. Flexibility Engine– Fill out forms 1, 1-A, 2 and provide a photograph

of the Engine Tag proving flexible engine3. Resident Engine– Fill out forms 1, 1-A, 2, 2-A4. Equipment Unit– In addition to the engine forms, fill out

appropriate form 3A through 3F

June, 2007 31

PERP

Fees

For most current Tier and Flexibility Engines see

http://www.arb.ca.gov/portable/perp/fees.htm

For Resident Engines seehttp://www.arb.ca.gov/portable/perp/fee_tables.htm

June, 2007 32

PERP

How to submit an application:

http://www.arb.ca.gov/portable/perp/apprcss.htm

For further information regarding the program, please contact Statewide Portable Equipment Registration Information Line at (916) 324-5869 (24 hours) or during business hours, you may call Jon Pederson at (916) 327-5981. You may also send email to portable@arb.ca.gov. The fax machine number is (916) 324-5864.

June, 2007 33

PERP

Reporting1. Record Keeping Section 2458(b)

– Registration Document must be with the unit– As a part of the rental agreement, you should

attach the rental agreement to fulfill the “notification requirements” of this section

– Obtain written acknowledgement that renter received the registration document

– Ask and record where the renter plans to use the equipment

PERP-Reporting

– Record keeping began 1/2007- Each Transaction

• Registration Number

• Start and end dates

• Hours of operation

• Location of use

• Maintain record for minimum of 5 years at a central location

• Records must be made available upon request

June, 2007

PERP-Reporting

Annual Report Section 2458(f) Begins March 1 2008 for all 2007 transactions

Report Contents– Year– For each engine

– Registration Number

– Documented total hours of use

– Breakdown of usage by counties

June, 2007

June, 2007 36

PERP

• Section 2459 details notification requirements for equipment units to be located at a site for more than 5 days. You should pass on this responsibility to the renter

• For an STW projects, incorporate 2459(d) in the contract

• If you rent equipment units, you should incorporate Section 2459(a) into your contract

June, 2007 37

PERP

Inspections and Testing-Section 2460• Each district shall inspect all engines and

equipment units and a mandatory fee is set• With 45 days of issuance of registration, owner

must contact local district to arrange inspection• At least 80% of inspections must be at yard• Multiple inspections qualify for a discount• Source testing could be required for Tier 0

engines

June, 2007 38

Fleet Average Example

June, 2007 39

Question on Portable Engines

June, 2007 40

Proposed Mobile In-Use Off-Road Rule

“Equipment You Drive”

June, 2007 41

Mobile In-Use

• Applies to 25 hp and larger off-road Diesel mobile engines (affected fleet)

• Off-road means cannot be driven safely on road

• Construction, mining, rental, landscaping, landfilling, industrial, mobile oil drilling rigs

• Does not include rail, marine, agriculture and dedicated snow removal

June, 2007 42

Mobile In-Use

Private Fleet Types1. Small: California small business with

less than 1501 hp in its affected fleet2. Large: Affected fleet with more than

5,000 hp3. Medium: All other affected fleets4. Fleet size: Sum of all affected hp from

business’s California operations

June, 2007 43

Mobile In-Use

• Exempted Vehicles– Low Use- Less than 100 annual hours annual

use– Specialty vehicles – Emergency vehicles

June, 2007 44

Mobile In -Use

Fleet Average Requirements1. Large and Medium Fleets: Meet NOX and PM fleet

averages2. Small Fleet: Meet PM fleet average only3. Fleets doing 100% business in attainment areas

(Captive attainment area fleet): Meet PM fleet average only

4. No engine Tier limitations5. Emission Credits for averaging

– Electric and alternative fueled vehicles

June, 2007 45

Mobile In-Use

Averaging Calculation• Average can be statewide or by location• Weighted emission average by horsepower -

ARB provides emission factors to be used for all engines

• Emission targets - ARB provides targets for all years beginning in 2010

• Fleet average cannot exceed either NOX or PM target

June, 2007 46

Mobile In-Use

• Impact on Rental Fleets:– If a fleet contains models with 11 model years or

less equally distributed over model years, it will probably pass the fleet average requirements

– For lower horsepower fleets, NOX is limiting

– For larger horsepower fleets, PM is limiting

– If a fleet fails the averaging requirements, it must comply through Best Available Control Technology (BACT)

June, 2007 47

Mobile In-Use

Fleet Size Changes with Averaging1. Rules for changing fleet categories

related to reporting2. Rules for movement in and out of the

state during a given year3. Fleets can grow and shrink as long as

averaging requirements are “continuously” met

June, 2007 48

Mobile In-Use

BACT RequirementsIf fleet fails NOX average • Replace 8%( until 2015) and 10% (after March 1

2015) of fleet annually with higher Tier vehicles ( can be used vehicles)

• If SCR becomes available, it can be used instead of replacement

• Owner can bank credits for early retirement• Order of turnover rules• Vehicles less than 10 years old exempt

June, 2007 49

Mobile In-Use

BACT RequirementsTest fleet PM average• If fails, retrofit 20% vehicles annually with VDECS

(state approved particulate filters with 50% or more efficiency)

• Owner can bank credits for early retrofit• Exempt if VDECS not available or make for unsafe

operation• Order and replacement of retrofit rules• VDECS less than 6 years old exempt

June, 2007 50

Mobile In-Use

Adding vehicles under BACT• Fleets can grow and shrink• Can add vehicles if Tier 2 or higher• All fleets: emission factor equal to or less

than current fleet target for PM• Large and Medium fleets: emission

factor equal to or less than current fleet target for NOX

June, 2007 51

Mobile In-Use

BACT Tier 1 Provision

• If no exempted Tier 0 vehicles in fleet, no turnover requirements until 2013

• Retrofit still required for PM

June, 2007 52

Mobile In-Use

Labeling and Enforcement Responsibility

1. All vehicles must be labeled according to ARB specifications

2. ARB assigns numbers

3. No “registration” requirements or fees

4. ARB not districts enforce

June, 2007 53

Mobile In-Use

Reporting

• Initial Reporting: – Initial report due in 2009, date depending on

fleet size– ARB plans to provide computerized

standard form

June, 2007 54

Mobile In-Use

Compliance Reporting• Record Keeping 2449(g), 2449(h)• Annual report due date depends on fleet size• Starting date: Large-2010, Medium 2013, Small

2015• Ending date:

– Large and medium fleets 2020 if Tier 4 compliant or later

– Small fleet 2025 if Tier 4 compliant or later

New and Merged Fleets

• New Fleet: Must meet averaging beginning 3 months after entering the state

• Entire fleet transferred by sale to a previous non-fleet owner keeps its status (averaging or BACT) till next reporting year

• Entire fleet transferred by sale to fleet owner; if fleets are both complying, no conditions until next reporting period

• Portions of fleets added to existing fleets must meet fleet addition rules

June, 2007

June, 2007 56

Mobile In-Use

• Averaging examples

June, 2007 57

Questions on Mobile In-Use Off-Road Equipment

June, 2007 58

On-Road In Use Diesel Trucks

• Regulatory concepts published but no regulatory language

• Will apply to private fleets of on-road medium and heavy duty vehicles (>14,000 GVWR)

• “Trucks bigger than F-350”• Will apply to all vehicles traveling in

California (???? To enforce)

Concepts

• Exempt Vehicles– 1000 mile per year or less– 2007 or newer engine

June, 2007

Proposed Concepts

• Fleet Average ( 5 or more vehicles)– Declining NOX and PM targets– NOX permits some pre-2007 engines in fleet

through 2020– All vehicles need a filter by 2015 to meet

averaging

June, 2007

June, 2007 61

BACT

• If you trucks are 2007 and newer, no requirements

• BACT means retrofit of pre 2007 trucks• Vehicles by model year w Compliance Start• Group 1: 65-94 Compliance Date 12/09• Group 2: 95-97Compliance Date 12/10• Group 3 98-99 Compliance Date 12/11• Group 4 00-02 Compliance Date 12/12• Group 5: 03-06 Compliance Date 12/13

Proposed Concepts

• BACT Phase out schedule in development

• BACT Approaches– Retrofit to 2007 standard or other for NOX

and PM– Use 2007 engine– Retire vehicle

June, 2007

June, 2007 63

On-Road In Use Trucks

• SIP and Diesel Risk Reduction Plan targets have been assigned

• Rule will provide assigned requirements.

• Next possible workshop in July

• Rule will begin in 2008 or 2009

• Rule will consider Toxic Hot Spots

• Staff is collecting and analyzing fleet data

June, 2007 64

Questions for in-Use On-Road Trucks

June, 2007 65

Large Spark Ignition Engines Fleet Requirements (LSI)

• Article 1 applies to engine manufacturers• Article 2 beginning with section 2775 applies to

fleets• Applies to 25 and greater horsepower• Approved in April 2007 by OAL• Gasoline and propane powered Otto cycle

mobile (e.g. forklifts and turf care equipment ) and portable equipment (generator sets)

June, 2007 66

Large Spark Ignition Engines

• All pre 2001 and 50% of 2001 to 2003 engines are uncontrolled

• First standards in 2004• New very low emission standards in 2007 and

2010• Establishes declining fleet averages beginning

in 2009• Attempts to force retrofit and replacement of

uncontrolled equipment

June, 2007 67

Large Spark Ignition Engines

Who must meet this regulation?• Applies to fleet operators with owned equipment and

equipment leased or rented for more than 1 year period• Operator “means a person with legal right of

possession and use of LSI engine equipment other than a person whose usual and customary business is the rental or leasing of LSI engine equipment. Operator includes a person whose usual and customary business is the rental and leasing of LSI engine equipment for ant LSI engine equipment not solely possessed or used for rental or leasing”

June, 2007 68

Large Spark Ignition Engines

• Rental fleets have no direct regulatory requirements as long as equipment is used exclusively for rental or leasing

• Don’t use LSI equipment in the yard unless you are a small LSI fleet

• Rental fleets are impacted by how renters can use their equipment

June, 2007 69

Large Spark Ignition Engines

• For rental equipment:– Renter need not average short term rental into his

fleet if it meets 2004 standards between 1/1/2009 and 12/31/2010

– Renter need not average short term rental into his fleet if engine meets 2007 standard or higher after 12/31/2010

– If rental company has “new equipment”, fleet operator may benefit by averaging rental in

June, 2007 70

Small Off-Road Engines (SORE)

• Applies to gasoline fueled under 25 hp engines

• This rule is related to the manufacture and selling of certified equipment

• There are currently no in-use rules related to SORE that impact rental businesses

June, 2007 71

Toxic Hot Spots Rule

• Air Toxic Hot Spots: Authorized by AB 2588, September 1987

• Controls routine release of toxic emissions from facilities located close to receptors like homes, schools and hospitals

• Rental Yards might be “facilities” • Rule applies to individual yards, not statewide

fleets

June, 2007 72

Toxic Hot Spots

• You do not want your rental yard to be a hot spot!

June, 2007 73

Toxic Hot Spots

• “Facilities” applies to stationary equipment in rental yard

• Diesel stationary equipment operated more than a total of 20 cumulative hours per year could result in a hot spot designation

• Portable diesel equipment is considered to be stationary equipment for this rule

June, 2007 74

Toxic Hot Spots

Stationary Engines• Rule is in effect • Enforced by local district• Refers to any diesel equipment fixed in your

yard. Such applications could be sump pumps, pressure washers, generators, air compressors etc.

• Refers to any stationary spark engine allowed but emissions are much greater

June, 2007 75

Toxic Hot Spots

Portable Engines• For hot spots, all portable diesel engines, count,

including engines above and below 50 hp • Hot spot designations based upon portable

engines start in 2010• Before 2010, you are exempted from

controlling emissions from portable diesel engines

June, 2007 76

Toxic Hot Spots

• Mobile diesel equipment is not considered under “facility” definition

June, 2007 77

Toxic Hot Spots

20 Hour Criteria• Actually, the allowed hours of operation

depends on how close the nearest receptor is, how large your fleet is, how dirty the fleet is, and home many hours you operate the fleet

• Practically, you might have no problems if nearest receptor is 500 to 1000 feet from the source and/or your “stationary” equipment is high Tier

June, 2007 78

Toxic Hot Spots

What do you need to do?

It is the local district’s responsibility to ask you for compliance data.

If you are located in a metropolitan area, and especially the South Coast:– Minimize all diesel operation on your site

– Do not give neighbors reason to call inspector

– Quantify your diesel emissions from your “stationary” sources

June, 2007 79

Toxic Hot Spots

Hot Spot Example

June, 2007 80

All Remaining Questions