1. June, 20071 California Air Resources Board Regulations John McClelland Mike Graboski

2. June, 20072 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

3. June, 20073 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

4. June, 20074 Link Between Engine Emissions and NAAQS NOX (exhaust) + atmospheric gases = PM2.5 NOX, Hydrocarbon (exhaust) + atmospheric gases = ozone

5. June, 20075 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

6. 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

7. June, 20077 Diesel Risk Reduction Program http://www.arb.ca.gov/diesel/dieselrrp.htm 1983: 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

8. June, 20078 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

9. June, 20079 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

10. June, 200710 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

11. June, 200711 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)

12. June, 200712 Off Road Engine Tiers by Date

13. June, 200713 Off-road SI Standards by Date Engines with > 1 liter Displacement 2007 Model Year Standard 2010 Model Year Standard

14. June, 200714 Questions?

15. June, 200715 Portable Equipment Regulations “Equipment You Tow”

16. June, 200716 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

17. June, 200717 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

18. June, 200718 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

19. June, 200719 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

20. June, 200720 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

21. June, 200721 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

22. June, 200722 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

23. June, 200723 PERP Eligible Engines – New Registration Certified diesel engine Certified spark-ignition engine Must be one of the following: 1.Most stringent emission standard engine 2.Flexibility Engine 3.Resident Engine Must have non-resettable hour meter

24. June, 200724 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

25. June, 200725 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

26. June, 200726 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

27. June, 200727 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

28. June, 200728 PERP How to Register http://www.arb.ca.gov/portable/perp/perp.htm Forms 1.General Information 1-A. Fee Calculation 2. Engine Data 2-A. Proof of Residency 3-A through 3-F Equipment Unit 7.Modification to Existing Registration (ownership) 8.Administrative Actions for Existing Registrations

29. 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

30. 30 PERP 1. Most Current Tier Engine –Fill out forms 1, 1-A, 2 2. Flexibility Engine –Fill out forms 1, 1-A, 2 and provide a photograph of the Engine Tag proving flexible engine 3. Resident Engine –Fill out forms 1, 1-A, 2, 2-A 4. Equipment Unit –In addition to the engine forms, fill out appropriate form 3A through 3F

31. June, 200731 PERP Fees For most current Tier and Flexibility Engines see http://www.arb.ca.gov/portable/perp/fees.htm For Resident Engines see http://www.arb.ca.gov/portable/perp/fee_tables.htm

32. June, 200732 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.portable@arb.ca.gov

33. June, 200733 PERP Reporting 1.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

34. 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

35. 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

36. 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

37. June, 200737 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

38. June, 200738 Fleet Average Example

39. June, 200739 Question on Portable Engines

40. June, 200740 Proposed Mobile In-Use Off- Road Rule “Equipment You Drive”

41. June, 200741 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

42. June, 200742 Mobile In-Use Private Fleet Types 1.Small: California small business with less than 1501 hp in its affected fleet 2.Large: Affected fleet with more than 5,000 hp 3.Medium: All other affected fleets 4.Fleet size: Sum of all affected hp from business’s California operations

43. June, 200743 Mobile In-Use Exempted Vehicles –Low Use- Less than 100 annual hours annual use –Specialty vehicles –Emergency vehicles

44. June, 200744 Mobile In -Use Fleet Average Requirements 1.Large and Medium Fleets: Meet NOX and PM fleet averages 2.Small Fleet: Meet PM fleet average only 3.Fleets doing 100% business in attainment areas (Captive attainment area fleet): Meet PM fleet average only 4.No engine Tier limitations 5.Emission Credits for averaging –Electric and alternative fueled vehicles

45. June, 200745 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

46. June, 200746 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)

47. June, 200747 Mobile In-Use Fleet Size Changes with Averaging 1.Rules for changing fleet categories related to reporting 2.Rules for movement in and out of the state during a given year 3.Fleets can grow and shrink as long as averaging requirements are “continuously” met

48. June, 200748 Mobile In-Use BACT Requirements If 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

49. June, 200749 Mobile In-Use BACT Requirements Test 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

50. June, 200750 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

51. June, 200751 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

52. June, 200752 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

53. June, 200753 Mobile In-Use Reporting Initial Reporting: –Initial report due in 2009, date depending on fleet size –ARB plans to provide computerized standard form

54. June, 200754 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

55. 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

56. 56 Mobile In-Use Averaging examples

57. June, 200757 Questions on Mobile In-Use Off- Road Equipment

58. June, 200758 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)

59. Concepts Exempt Vehicles –1000 mile per year or less –2007 or newer engine June, 2007

60. 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

61. 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

62. 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

63. 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

64. June, 200764 Questions for in-Use On-Road Trucks

65. June, 200765 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)

66. June, 200766 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

67. June, 200767 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”

68. June, 200768 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

69. June, 200769 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

70. June, 200770 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

71. June, 200771 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

72. June, 200772 Toxic Hot Spots You do not want your rental yard to be a hot spot!

73. June, 200773 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

74. June, 200774 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

75. June, 200775 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

76. June, 200776 Toxic Hot Spots Mobile diesel equipment is not considered under “facility” definition

77. June, 200777 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

78. June, 200778 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

79. June, 200779 Toxic Hot Spots Hot Spot Example

80. June, 200780 All Remaining Questions