CALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1579this notice is published in the Notice Register, the rule-
making file consists of this notice, the proposed text of
the regulations, the initial statement of reasons, the textof the California End of Life Option Act and relevantfederal law in conflict with the Act. Copies may be ob-
tained by contacting Phil McAllister at the address or
phone number listed above
A V AILABILITY OF CHANGED OR
MODIFIED TEXT
After holding the hearing and considering all timely
and relevant comments received, CalVet may adopt the
proposed regulations substantially as described in thisnotice. If CalVet makes modifications which are suffi-ciently related to the originally proposed text, it willmake the modified text (with the changes clearly indi-
cated) available to the public for at least 15 days before
CalVet adopts the regulations as revised. Please send re-
quests for copies of any modified regulations to the at-
tention of Phil McAllister at the address indicatedabove. CalVet will accept written comments on the
modified regulations for 15 days after the date on which
they are made available.
A V AILABILITY OF THE FINAL STATEMENT
OF REASONS
Upon its completion, copies of the Final Statement of
Reasons may be obtained by contacting Phil McAllister
at the above address.
A V AILABILITY OF DOCUMENTS ON
 THE INTERNET
Copies of the Notice of Proposed Action, the Initial
Statement of Reasons, and the text of the regulations in
underline and strikeout can be accessed through ourwebsite at https://www .calvet.ca.gov/about−us/laws−
regulations .TITLE 13. AIR RESOURCES BOARD
NOTICE OF PUBLIC MEETING TO
CONSIDER PROPOSED REGULATION TO
PROVIDE CERTIFICATION FLEXIBILITY
FOR INNOV ATIVE HEA VY−DUTY ENGINES
AND CALIFORNIA CERTIFICATION AND
INSTALLATION PROCEDURES FOR
MEDIUM− AND HEA VY−DUTY VEHICLE
HYBRID CONVERSION SYSTEMS
(INNOV ATIVE TECHNOLOGY REGULATION)
The Air Resources Board (ARB or Board) will con-
duct a public hearing at the time and place noted below
to consider approving for adoption the proposed Regu-
lation to Provide Certification Flexibility for Innova-
tive Heavy−Duty Engines and California Certificationand Installation Procedures for Medium− and Heavy−Duty Vehicle Hybrid Conversion Systems (Innovative
Technology Regulation or ITR), and to approve for
adoption proposed amendments to Exhaust EmissionsStandards and Test Procedures — 1985 and Subsequent
Model Heavy−Duty Engines and V ehicles.
DATE: October 20, 2016
TIME: 9:00 a.m.
LOCATION: San Joaquin V alley Air Pollution 
Control District Of fice
1990 East Gettysburg A venue
Fresno, California 93726
This item will be considered at a one−day meeting of
the Board, which will commence at 9:00 a.m., on Octo-
ber 20, 2016. Please consult the agenda for the meeting,
which will be available at least 10 days before October
20, 2016, to determine the order in which this item will
be considered.
WRITTEN COMMENT PERIOD AND
SUBMITTAL OF COMMENTS
Interested members of the public may present com-
ments orally or in writing at the meeting, and may pro-
vide comments by postal mail or by electronic submittal
before the meeting. The public comment period for this
regulatory action will begin on September 2, 2016. To
be considered by the Board, written comments notphysically submitted at the hearing, must be submitted
no later than 5:00 p.m., October 17, 2016, and must
be addressed to the following:CALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1580Postal 
mail: Clerk of the Board, Air Resources 
Board 
1001 I Street,
Sacramento, California 95814
Electronic
submittal: http://www.arb.ca.gov/lispub/
comm/bclist.php
Please note that under the California Public Records
Act (Government Code section 6250 et seq.), your writ-
ten and oral comments, attachments, and associated
contact information (e.g., your address, phone, email,etc.) become part of the public record and can be re-leased to the public upon request.
ARB requests that written and email statements on
this item be filed at least 10 days prior to the meeting, so
that ARB staff and Board members have additional time
to consider each comment. The Board encourages
members of the public to bring any suggestions for
modifications of the proposed regulatory actions tostaff’s attention in advance of the hearing.
AUTHORITY AND REFERENCE
These regulatory actions are proposed under the au-
thority granted in California Health and Safety Code
sections: 38501, 38510, 38560, 38580, 39500, 39515,39516, 39600, 39601, 40000, 43004, 43006, 43008.6,
43009.5, 43000, 43011, 43012, 43013, 43018, 43100,
43101, 43102, 43103, 43104, 43105, 43106, 43107,43204, 43205, 43205.5, 43806; and Vehicle Code sec-tions: 27156, 281 14, and 38391. These actions are pro-
posed to implement, interpret, and make specific Health
and Safety Code sections: 38501, 38505, 38510, 38560,39002, 39003, 39010, 39017, 39033, 39500, 39602.5,39650, 39657, 39667, 39701, 43000, 43000.5, 43004,
43006, 43008.6, 43009, 43009.5, 43010, 43013, 43017,
43018, 43100, 43101, 43101.5, 43102, 43104, 43105,43106, 43107, 43202, 43204, 43205, 43205.5, 43206,43210, 43211, 43212, 43213 and 43806; and Vehicle
Code, § 27156, 28114, and 38391.
INFORMATIVE DIGEST OF PROPOSED
ACTIONS AND POLICY STATEMENT
OVERVIEW (GOV . CODE. § 11346.5, subd. (a)(3))
Sections Affected:
 Proposed adoption to California
Code of Regulations, title 13, sections 2208, 2208.1,2208.2, including the following document incorporated
by reference herein: “California Certification and In-
stallation Procedures for Medium− and Heavy−Duty
Vehicle Hybrid Conversion Systems.” Proposedamendments to California Code of Regulations, title 13,
section 1956.8, including the following documents in-corporated by reference therein: “California Exhaust
Emission Standards and Test Procedures for 2004 and
Subsequent Model Heavy−Duty Otto−Cycle Enginesand V ehicles,” as last amended September 2, 2015, and
the “California Exhaust Emission Standards and Test
Procedures for 2004 and Subsequent Model Heavy−Duty Diesel Engines and Vehicles,” as last amendedSeptember 2, 2015.
Documents Incorporated by Refer ence: 
The following documents are proposed for incorpo-
ration by reference in proposed California Code of Reg-
ulations, title 13, sections 2208, 2208.1 and 2208.2:
/C0068 U.S. EPA National Vehicle and Fuel Emissions
Laboratory guidance letter CD−12−07 (Revised),
dated March 30, 2012;
/C0068 “California Interim Certification Procedures for
2004 and Subsequent Model Hybrid−Electric and
Other Hybrid Vehicles, in the Urban Bus andHeavy−Duty V ehicle Classes”, amended on
October 21, 2014;
/C0068 40 Code of Federal Regulations, Part 1036.705(d),
as last amended September 15, 2011
/C0068 40 Code of Federal Regulations, Part 86.098−24,as last amended April 28, 2014
/C0068 40 Code of Federal Regulations, Part 89.1 12(d), as
last amended July 13, 2005
/C0068 40 Code of Federal Regulations, Part 1065.270, as
last amended April 28, 2014
/C0068 40 Code of Federal Regulations, Part 86.004−2, as
last amended on August 8, 2014
The following documents are proposed for incorpo-
ration by reference in the amendments to the “Califor-nia Exhaust Emission Standards and Test Procedures
for 2004 and Subsequent Model Heavy−Duty Diesel
Engines and V ehicles” and are thereby incorporated by
reference in the proposed California Code of Regula-tions, title 13, sections 1956.8.
/C0068 40 Code of Federal Regulations, Part 1036.108, as
amended September 15, 2011
The following documents are proposed for incorpo-
ration by reference in the proposed new test procedures
“California Certification and Installation Proceduresfor Medium− and Heavy−Duty V ehicle Hybrid Conver-
sion Systems,” and thereby incorporated by reference
in the proposed California Code of Regulations, title 13,
sections 2208, 2208.1 and 2208.2:
/C0068 40 Code of Federal Regulations, Part 1065,
Subpart K, as amended April 28, 2014
/C0068 40 Code of Federal Regulations, Part 1037.510(a),
as amended September 15, 2011
/C0068 40 Code of Federal Regulations, Part 86,
Appendix I, as amended April 28, 2014CALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1581/C0068 40 Code of Federal Regulations, Part 1066.801(c),
as amended February 19, 2015
/C0068 40 Code of Federal Regulations, Part 1037,Appendix I, as amended September 15, 2011
/C0068 California Code of Regulations, title 13, section
1965, as amended October 8, 2015
/C0068 California Code of Regulations, title 13, section
1968.2, as amended July 25, 2016
/C0068 California Code of Regulations, title 13, section
1971.1, as amended July 25, 2016
/C0068 40 Code of Federal Regulations, Part 1065,
Subpart J, as amended April 28, 2014
/C0068 40 Code of Federal Regulations, Part
86.004−28(i)(1), as amended April 28, 2014
/C0068 40 Code of Federal Regulations, Part 86, as
amended February 19, 2015
/C0068 40 Code of Federal Regulations, Part 1037.525, as
amended June 17, 2013
/C0068 40 Code of Federal Regulations, Part 1037.550, as
amended June 17, 2013
/C0068 40 Code of Federal Regulations, Part
1037.615(b)(2)(iii) as amended June 17, 2013
/C0068 California Code of Regulations, title 13, sections
2112 through 2121 as amended December 5, 2014
/C0068 “California Exhaust Emission Standards and TestProcedures for 2018 and Subsequent ModelZero−Emission V ehicles and Hybrid Electric
Vehicles, in the Passenger Car, Light−Duty T ruck
and Medium−Duty Vehicle Classes”, amendedSeptember 3, 2015;
/C0068 “California Interim Certification Procedures for
2004 and Subsequent Model Hybrid Electric andOther Hybrid Vehicles, in the Urban Bus and
Heavy−Duty V ehicle Classes”, amended on
October 21, 2014;
/C0068 “Procedures for Exemption of Add−on or
Modified Parts”, amended June 1, 1990;
/C0068 “California Evaporative Emission Standards and
Test Procedures for 2001 and Subsequent Model
Motor V ehicles”, amended September 2, 2015;
/C0068 Society of Automotive Engineers (SAE)
International J1094: Constant V olume Sampler
System for Exhaust Emissions Measurement,
September 2011;
/C0068 SAE International J1526: SAE Fuel Consumption
Test Procedure (Engineering Method), September2015;
/C0068 SAE International J1711: Recommended Practice,
for Measuring the Exhaust Emissions and FuelEconomy of Hybrid−Electric Vehicles, IncludingPlug−in Hybrid V ehicles, June 2010;/C0068 SAE International J1939: Serial Control and
Communications Heavy Duty V ehicle Network —
Top Level Document, August 2013;
/C0068 SAE International J1939−73: Applications Layer— Diagnostics, July 2013;
/C0068 SAE International J1979 “E/E Diagnostic Test
Modes”, August 2014;
/C0068 SAE International J1979−DA: “Digital Annex of
E/E Diagnostic Test Modes”, June 2014.
/C0068 SAE International J2711: Recommended Practicefor Measuring Fuel Economy and Emissions ofHybrid−Electric and Conventional Heavy−Duty
Vehicles, September 2002;
/C0068 SAE International J2841: Utility Factor
Definitions for Plug−In Hybrid Electric Vehicles
Using T ravel Survey Data, September 2010.
Background and Effect of the Proposed Regulation
and Amendments
California must transition to zero− and near zero−
emission transportation and freight movement tech-nologies to meet its air quality and climate goals. These
goals include:
/C0068 Reducing greenhouse emissions to 40 percent
below 1990 levels by 2030;1
/C0068 Reducing greenhouse gas (GHG) emissions from
the transportation sector to 80 percent below 1990
levels by 2050;2
/C0068 Deploying 1.5 million zero−emission vehicles
(ZEV) by 2025, as directed in Executive Order
B−16−2012, and the related goal of deploying one
million ZEVs and near−ZEVs by January 1, 2023,as codified in Health and Safety Code Section
44258.4(b). The California Sustainable Freight
Action Plan also includes a related goal ofdeploying 100,000 freight vehicles and equipment
capable of zero emission operation by 2030;
3 and
/C0068 Meeting federal health−based eight−hour ozone
standards, as required, by 2023 and 2031 in the
South Coast, which will require a reduction in
oxides of nitrogen (NOx) emissions ofapproximately 70 percent by 2023 and 80 percent
by 2031 from today’s levels.
4
While a diversity of new zero− and near−zero emis-
sion trucks and buses will be needed to meet these goals,
ARB’s comprehensive heavy−duty engine and vehicle
certification requirements may deter some manufactur-
1 Governor Brown’s Executive Order B−30−2015: http://gov .
ca.gov/news.php?id=18938 .
2 Governor Brown’s Executive Order B−16−2012: http://gov .
ca.gov/news.php?id=17472 .
3 ARB, California Sustainable Freight Action Plan, July 2016:
http://www.casustainablefreight.org/app_pages/view/154 .
4 Mobile Source Strategy, May 2016. http://www.arb.ca.
gov/planning/sip/2016sip/2016mobsrc.htm .CALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1582ers from developing promising new heavy−duty vehi-
cle technologies, in part because of high initial certifica-
tion costs and engineering challenges. One element ofcertification — on−board diagnostic (OBD) require-
ments — can be particularly resource−intensive, and
can pose engineering challenges for some new tech-nologies. OBD is a critical emissions control programconsisting mostly of added software to identify and ad-
dress potential engine and aftertreatment failures that
can lead to an increase in emissions. The initial chal-lenge of OBD compliance could lead a manufacturer to
choose not to develop, or to delay introduction of, inno-
vative new truck or bus technologies that are uncertain
to achieve market acceptance.
To address these challenges and encourage additional
needed technology innovation, the proposed ITR would
provide a more flexible short−term certification path-way, described below, for the following innovativetruck and bus technologies:
/C0068 New heavy−duty engine technologies:
/C0100 A heavy−duty spark−ignition engine
(through the 2021 model year (MY)) or a
heavy−duty compression−ignition engine
(through th e 2024 MY) meeting California’s
optional low−NOx emission standards;
/C0100 A heavy−duty engine that will be installed in
a hybrid heavy−duty vehicle (hybrid engine)
through the 2021 or 2024 MY , if the vehicle is
capable of at least 35 miles all−electric range
(AER);
/C0100 A heavy−duty engine that meets the proposed
ITR’s optional low−CO 2 emission standards,
reflecting a 15 percent CO 2 reduction relative
to a 2017 baseline engine, through the 2027
MY;
and
/C0068  Hybrid conversion systems:  A hybrid conversion
system installed on an ARB−certified vehiclebetween 6,001 and 14,000 pounds Gross Vehicle
Weight Rating (GVWR) or on an ARB−certified
engine installed in a vehicle over 8,500 poundsGVWR.
These technologies, described in further detail below,
each play a role in helping California meet its air quality
and climate goals, yet each could face certification chal-
lenges inherent in certifying a new technology for thefirst time.
Innovative New Heavy−Duty Engines 
The proposed ITR would provide short−term, target-
ed certification flexibility, particularly OBD compli-
ance flexibility, for new heavy−duty engines meetingCalifornia’s optional low−NOx standards, hybridheavy−duty engines, and high−efficiency heavy−dutyengines. To be eligible, the engine would be required to
be cleaner than required by, and not used to demonstrate
compliance with, the applicable mandatory engineemission standards for NOx or CO
2 for the given MY in
which the manufacturer seeks certification flexibilityfor the engine. Proposed ITR structure and certificationflexibility, summarized below, is tailored specifically to
each proposed technology category in order to acceler-
ate that technology’s deployment, while still ensuring itachieves the anticipated in−use emission benefits.
Heavy−duty Engines Meeting California’ s Optional
Low−NOx Standar ds. California needs significant de-
ployment of heavy−duty engines meeting ARB’s op-tional low−NOx engine standards to attain the National
Ambient Air Quality Standard for ozone, particularly in
the South Coast Air Basin, by 2023 and 2031. The pro-
posed ITR would provide a heavy−duty spark−ignition
engine meeting California’s optional 0.05 or 0.02 grams
per brake−horsepower hour (g/bhp−hr) NOx standard,and a compression−ignition engine meeting the 0.10,0.05, or 0.02 g/bhp−hr NOx standard, with up to threeMYs of modest certification flexibility. This flexibilitywould be available to manufacturers through the 2021MY for a spark−ignition engine, and through the 2024MY for a compression−ignition engine. This proposedstructure recognizes the relative technology readinessof spark−ignition and compression−ignition low−NOxengines, and is intended to encourage certification of a
diversity of low−NOx engine sizes and types before
ARB may propose a mandatory low−NOx standard inthe 2024 timeframe.
Heavy−duty Hybrid Engines. Hybrid trucks and bus-
es, particularly plug−in hybrids with significant AER,can potentially reduce both criteria pollutant and GHGemissions in vocational applications, and help pave the
way for zero−emission heavy−duty vehicle technology.The proposed ITR would provide an engine certified byARB for use in a hybrid heavy−duty vehicle with up tofour or six consecutive MYs of ARB certification flexi-
bility, depending upon whether or not the engine is cer-
tified for use in a vehicle that achieves at least 35 miles
AER.
A hybrid engine to be installed in a vehicle that does
not achieve at least 35 miles AER (including non−plug−in hybrids) would be eligible for up to two MYs of moresubstantial “Tier 1” certification flexibility, followedby up to an additional two MYs of more modest “Tier 2”certification flexibility, through the 2021 MY . An en-gine to be installed in a hybrid vehicle that achieves atleast 35 miles AER would be eligible for the same Tier 1
and Tier 2 certification flexibility provisions, but for upto four MYs of Tier 1 and two MYs of T ier 2 flexibility,
through the 2024 MY .
The proposed ITR also includes provisions that
would enable an engine originally certified for off−roadCALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1583or light− or medium−duty use to be certified as a range
extender in a heavy−duty hybrid that achieves at least
35 miles AER, through the 2024 MY . The engine wouldhave to operate at steady state to charge the vehicle bat-
teries, would be prohibited from directly propelling the
vehicle, and would be required to meet other emissionand performance criteria. Should any of these hybridconfigurations gain a market foothold, information
gained during ITR−based certification would enable
ARB staff to propose updated certificationrequirements.
Recent studies have illustrated the potential for some
hybrid heavy−duty vehicles to emit significantly more
in−use NOx relative to their non−hybrid counterparts.
5
In order to be eligible for the proposed ITR’s certifica-
tion flexibility, a new heavy−duty hybrid vehicle would
be required to achieve at least a ten percent CO 2 reduc-
tion without increasing in−use NOx, carbon monoxide(CO), hydrocarbon (HC), or particulate matter (PM)
emissions. Compliance with these emission criteria
would need to be demonstrated pursuant to the pro-posed ITR’s hybrid technology emission testprocedures.
High−Efficiency Heavy−Duty Engines. The proposed
ITR would also provide certification flexibility to sig-nificantly more−efficient 2017 through 2027 MYheavy−duty engines. In order to identify such engines,
the proposed amendments add optional low−CO
2 emis-
sion standards, which reflect a 15 percent CO 2 reduc-
tion relative to a 2017 baseline diesel engine, and a
greater than ten percent CO 2 reduction relative to Fed-
eral Phase 2 GHG Standards for the 2027 MY .6 The
stringency of these proposed optional low−CO 2 stan-
dards is based upon what ARB’s Technology and Fuels
Assessment7 and interested manufacturers indicate can
be achieved by potentially transformational, newheavy−duty engine architectures (such as a camless or
opposed piston engine), which could provide signifi-
cant efficiency gains but face initial OBD and other cer-
tification challenges. However, the standards are per-formance−based, such that any heavy−duty engine
meeting the standard would qualify. The proposed ITR
5 National Renewable Energy Laboratory; Data Collection, Test-
ing, and Analysis of Hybrid Electric Trucks and Buses Operatingin California Fleets — Final Report; June 2015; www.nrel.
gov/docs/fy15osti/62009.pdf .
6 United States Environmental Protection Agency and National
Highway Traffic Safety Administration; Greenhouse Gas Emis-
sions and Fuel Efficiency Standards for Medium− and Heavy−Duty Engines and Vehicles — Phase 2 (Final Rule); August 16,
2016; https://www3.epa.gov/otaq/climate/
documents/2016−08−ghg−hd−final−rule−phase2−preamble.pdf .
7 ARB; Draft Technology Assessment; Engine/Powerplant and
Drivetrain Optimization and Vehicle Efficiency; June 2015;
http://www.arb.ca.gov/msprog/tech/techreport/epdo_ve_tech_
report.pdf .would provide heavy−duty engines meeting these pro-
posed optional low−CO 2 emission standards with up to
four MYs of T ier 1 certification flexibility , followed by
an additional two MYs of T ier 2 flexibility, through the
2027 MY .
Truck and Bus Hybrid Conversion Systems
The proposed ITR incorporates “California Certifi-
cation and Installation Procedures for Medium− and
Heavy−Duty V ehicle Hybrid Conversion Systems.”
These proposed procedures would provide ARB certifi-
cation criteria, including emission, diagnostic, warran-
ty, reporting, and other requirements, for hybrid truck
and bus conversion systems to be sold and installed onCalifornia−certified base engines or vehicles. The pro-posed ITR would allow a manufacturer to sell increas-
ing California volumes of its hybrid conversion system
by certifying to progressively more stringent Tier 1,Tier 2, and T ier 3/Final requirements.
For hybrid conversion systems that do not achieve at
least 35 miles AER, the opportunity for conversion sys-
tem manufacturers to apply for less stringent Tier 1 and
2 certification requirement s would suns et on January 1,
2022. For conversions that do achieve at least 35 miles
AER, the opportunity for manufacturers to apply forTiers 1 and 2 hybrid conversion system certificationwould sunset on January 1, 2025. A hybrid conversion
system first certifying after th ese sunset dates would be
required to meet the more stringent Tier 3/Final certifi-
cation requirements.
This structure is intended to encourage early develop-
ment and market launch of a diversity of hybrid conver-
sion systems, particularly from the smaller, indepen-dent manufacturers that make up today’s market, by
minimizing initial engineering challenges and certifica-
tion compliance costs and scaling up certification re-quirements as the market develops. Staff anticipatesthat a flourishing market for hybrid conversion sys-
tems, particularly in the medium−duty sector, could
achieve near−term CO
2 reductions, and encourage larg-
er, original vehicle manufacturers to enter the marketwith robust, vertically integrated hybrid trucks and
buses.
OBJECTIVES AND BENEFITS OF THE
PROPOSED REGULATORY ACTIONS
The proposed ITR and amendments are intended to
encourage development and deployment of the next
generation of truck and bus technologies that California
needs to meet its air quality and climate goals. Early de-
ployment of these technologies achieves direct emis-
sion reductions sooner than would otherwise occur, and
would support development of more robusttechnology−advancing rulemakings. For example, ear-
ly technology deployment of low−NOx engines wouldCALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1584enable manufacturers, fleets, ARB staff, and others to
assess technology feasibility, consumer acceptance,
benefits, and costs, and to prepare necessary infrastruc-
ture, supply lines, and workforce training. Likewise,
this proposed regulation would encourage accelerated
development of robust plug−in hybrid heavy−duty ve-hicle technology that would support implementation of
ARB’s potential Advanced Clean Transit Regulation
and Last Mile Delivery Regulation, if adopted. Early,
accelerated technology deployment would help reduce
per−unit technology cost as production volumes in-
crease in advance of regulatory requirements. Finally,
early deployment would provide an opportunity for
manufacturers to anticipate and address potential tech-
nology failures before more widespread deployment
could be required by regulation.
The proposed regulatory actions are also geared to
support implementation of California’s portfolio offunding programs for demonstrating and deploying the
next generation of clean vehicles and equipment.
ARB’s Air Quality Improvement Program (AQIP) andGreenhouse Gas Reduction Fund (GGRF) have invest-
ed over $200 million over the past seven years to accel-
erate California’s transition to zero− and near−zero
emission vehicles and equipment. These programs’proposed Fiscal Year 2016−17 Funding Plan, approved
by the Board in June 2016, would invest an additional
$59 million to demonstrate, and $116 million to deploy,
the next generation of truck and bus technologies (con-tingent upon funding appropriation by the Legisla-
ture).
8 These include incentives to demonstrate zero−
and near−zero−emission heavy−duty vehicles andequipment, and to deploy hybrid, zero−emission, andlow−NOx trucks and buses. However , only two heavy−
duty engines meeting optional low−NOx standards, and
two hybrid heavy−duty engines (neither of which en-able zero emission operation), were ARB−certified asof June 1, 2016. The regulatory actions, taken together,
are intended to facilitate near−term certification of
these technologies, enabling a greater diversity ofpromising heavy−duty engines and vehicles to be eligi-
ble for these investments and fulfilling the goal of these
investment programs to foster needed technology de-velopment. The proposed regulatory actions are partic-
ularly timely given California’s financial commitment
to these heavy−duty vehicle demonstration and deploy-
ment projects.
ARB staff developed the proposed regulatory actions
through an extensive public process. Staff made a con-
8 ARB; Proposed Fiscal Year 2016−17 Funding Plan for Low Car-
bon T ransportation and Fuels Investments and the Air Quality Im-
provement Program, Approved June 23, 2016; http://www.arb.
ca.gov/msprog/aqip/fundplan/proposed_fy16−17_
fundingplan_full.pdf . siderable effort to inform, involve, and update the pub-
lic and stakeholders on staff’s progress developing the
proposed regulatory actions. ARB has held three public
workshops, 15 topic−specific public work group meet-
ings, and over 50 individual stakeholder meetings to in-
form development of the proposed regulatory actions.The workshop and work group meeting notices wereposted on the Innovative Technology Regulation web-
page at http://www.arb.ca.gov/msprog/itr/itr.htm
, and
distributed to the ITR rulemaking list serve, which in-clude over 700 subscribers as of June 1, 2016.
An Evaluation of Inconsistency or Incompatibility
with Existing State Regulations  (Gov. Code,
§ 11346.5, subd. (a)(3)(D)): 
During the process of developing the proposed regu-
latory actions, ARB staff has conducted a search for
similar regulations on this topic and has concluded that
these regulations are neither inconsistent nor incompat-
ible with existing state regulations.
DISCLOSURE REGARDING THE PROPOSED
REGULATION AND AMENDMENTS
Fiscal Impact/Local Mandate Determination
Regarding the Proposed Actions (Gov.  Code.
§ 11346.5. subds. (a)(5)&(6)): 
The proposed ITR is anticipated to require hiring two
additional engineering staff persons by ARB, at a total
cost of $290,000, beginning in the 2017−2018 fiscal
year and thereafter. These additional personnel would
be responsible for helping review technical documents,and to test and determine OBD and overall engine or ve-
hicle certification compliance on increasingly more
complex and diverse medium−duty, heavy−duty, andhybrid vehicles. Further detail is provided in the Eco-nomic and Fiscal Impacts Statement (Form 399) pre-
pared for these proposed regulatory actions.
Under Government Code sections 11346.6, subdivi-
sion (a)(5) and 11346.5, subdivision (a)(6), the Execu-tive Officer has determined that the proposed regulato-
ry actions would not impose other costs on, nor create
savings for, federal, state, or local agencies. In addition,
the proposed regulatory actions are unlikely to create
any cost or savings in federal funding to the State.
Cost or Savings to State Agencies
The Executive Officer has made the determination
that the proposed regulatory actions would not provide
a cost or savings to state or local agencies other than theadditional ARB staf fing costs described above.
Local Mandate
The Executive Officer has made the determination
that the proposed regulatory actions do not impose amandate upon local agencies.CALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1585Costs to any Local Agency or School District Requiring
Reimbursement under Section  17500 et seq.:
The Executive Officer has made the determination
that the proposed regulatory actions would not impose
any costs to any local agency or school district requiring
reimbursement.
Other Non−Discr etionary Costs or Savings to Local
Agencies
The Executive Officer has made the determination
that the proposed regulatory actions would not imposeother non−discretionary costs or savings to localagencies.
Costs or Savings in Federal Funding to the State
The Executive Officer has made the determination
that the proposed regulatory actions would not result in
a significant cost or savings in federal funding to the
state.
Housing Costs
The Executive Officer has made the determination
that the proposed regulatory actions would not have an
effect on housing costs.
Significant Statewide Adverse Economic Impact
Directly Affecting Business, Including Ability to
Compete (Gov. Code §§ 11346.3, subd. (a). 11346.5.
subds.  (a)(7)&(8)):
The Executive Officer has made the determination
that the proposed regulatory actions would not have a
significant statewide adverse economic impact directly
affecting businesses, including the ability of California
businesses to compete with businesses in other states, or
on representative private persons.
Cost Impacts on Representative Private Persons or
Businesses (Gov. Code. §  1 1346.5, subd. (a)(9)):
In developing this regulatory proposal, ARB staff
evaluated the potential economic impacts on represen-tative private persons or businesses. ARB is not awareof any cost impacts that a representative private person
or business would necessarily incur in reasonable com-
pliance with the proposed regulatory actions.
Results of the Economic Impact Analysis (Gov.
Code, § 1 1346.5 subd. (a)(10))
Staff anticipates there are between 25 and 50 busi-
nesses that could be directly affected by the proposedregulatory actions. These include new heavy−duty en-
gine, vehicle, and hybrid driveline manufacturers, and
manufacturers and installers of aftermarket hybrid con-
version systems. The thousands of truck and bus fleetsin California, particularly larger fleets that are most
likely to be early adopters of zero− and near−zero−
emission truck and bus technologies, would also be in-
directly affected by the proposed regulatory actions.These proposed regulatory actions are not expected toeliminate any businesses in California. One hybrid
heavy−duty vehicle manufacturer and two hybrid truck
conversion system manufacturers have facilities in Cal-
ifornia at this time.
These proposed regulatory actions are not expected
to eliminate any jobs in the state of California, since theproposed ITR is anticipated to provide certificationcompliance cost savings for participating manufactur-
ers. Should the proposed ITR increase the number of
manufacturers able to certify their systems in Califor-nia, staff anticipates the proposed regulatory actionscould potentially lead to some minor level of job and
business creation for hybrid conversion system manu-
facturers and installers as the market expands. The pro-
posed regulatory actions are not anticipated to have any
impacts on worker safety.
Depending upon the level of manufacturer participa-
tion, the proposed regulatory actions could provide amodest reduction in NOx and CO
2 emissions, resulting
in a modest benefit to the health and welfare of Califor-
nia residents, and to the state’s environment.
Effect on Jobs/Businesses
The Executive Officer has determined that the pro-
posed regulatory actions could potentially lead to some
level of business expansion within California as themarket for eligible truck and bus technologies expands.
However, it is not anticipated that any new businesses
would be created or eliminated within California as a re-
sult of the proposed regulatory actions. If the proposed
regulatory actions result in the expansion of California
businesses, there may be a small number of new jobscreated within California. It is not anticipated that theproposed regulation will result in the elimination of any
jobs in California or nationally. A detailed assessment
of the economic impacts of the proposed regulatory ac-tions can be found in the Economic Impact Analysis in
the Initial Statement of Reasons (ISOR).
Benefits of the Pr oposed Regulation
The objective of the proposed regulation is to encour-
age accelerated development and deployment of inno-
vative truck and bus technologies by providing manu-
facturers of these technologies tar geted, short−term cer-
tification flexibility. The proposed regulatory actionsare one of a suite of strategies ARB is pursuing to transi-
tion to a zero− and near−zero−emission transportation
system, as needed to meet the State’s air quality and cli-
mate goals.
Effect on Small Business (Cal. Code Regs., tit. 1, § 4,
subds. (a)&(b): 
The Executive Officer has also determined under
California Code of Regulations, title 1, section 4, that
the proposed regulatory actions would potentially af-fect small businesses. The proposed regulatory actionsare anticipated to provide a potential net economic ben-CALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1586efit to participating innovative technology manufactur-
ers, including small businesses. While few manufactur-
ers have existing, certified innovative technologies thatcould potentially be eligible for this proposed regula-
tion’s certification flexibility, staff anticipates that these
numbers could increase as the technologies mature. Ingeneral, existing heavy−duty low−NOx, low−CO
2, and
hybrid new engines tend to be manufactured and certi-
fied by larger, multi−national engine manufacturers.
The certification flexibility provided by the proposedITR (including the proposed amendments) for newlymanufactured engines will likely therefore primarily
benefit lar ger businesses.
Hybrid conversion system manufacturers, on the oth-
er hand, tend to be small businesses. These manufactur-
ers typically purchase a truck or bus chassis from large
original vehicle manufacturers for retrofit with their hy-
brid conversion systems. Staff anticipates that hybridconversion systems will continue to be manufactured
almost exclusively by small businesses for the foresee-
able future. Should these procedures increase the num-ber of manufacturers able to certify their systems in Cal-
ifornia, as intended, staff anticipates th e proposed regu-
latory actions, particularly the proposed ITR, could lead
to some minor level of business creation or expansion,including small business creation and expansion.
ALTERNATIVES STATEMENTS 
(Gov. Code, § 11346.5, subds. (a)(13))
Before taking final action on the proposed regulatory
actions, the Board must determine that no reasonable al-
ternative considered by the Board, or that has otherwise
been identified and brought to the Board’s attention,
would be more effective at carrying out the purpose for
which the actions are proposed, would be as effectiveand less burdensome to affected private persons thanthe proposed actions, or would be more cost−effective
to affected private persons and equally effective in im-
plementing the statutory policy or other provisions oflaw.
BUSINESS REPORTS
The Executive Officer has found that the require-
ments of the proposed regulatory actions, which apply
to businesses, are necessary for the health, safety, andwelfare of the people of California.
ENVIRONMENTAL ANALYSIS
ARB, as the lead agency for the proposed regulatory
actions, has prepared an environmental analysis (EA)under its certified regulatory program (California Code
of Regulations, title 17, sections 60000 through 60008)
to comply with the requirements of the California Envi-ronmental Quality Act (CEQA; Public Resources Code
section 21080.5). The  EA determined that the proposed
regulatory actions would not result in any significantadverse impacts on the environment. The basis forreaching this conclusion is provided in Chapter IV of
the ISOR. Written comments on the EA will be accept-
ed during a 45−day public review period starting onSeptember 2, 2016 and ending at 5 p.m. on October
17, 2016.
A V AILABILITY OF DOCUMENTS AND
AGENCY CONTACT PERSONS
ARB staff has prepared an ISOR for the proposed
regulatory actions, which includes a summary of the
economic and environmental impacts of the proposals.
The report is entitled: Proposed Certification and After-
market Part Approval Flexibility for Innovative Medi-um− and Heavy−Duty Engine and Vehicle Technolo-
gies Regulation (Innovative T echnology Regulation).
Copies of the ISOR and the full text of the proposed
regulatory language, with the amendments in underline
and strikeout format to allow for comparison with the
existing regulations, may be accessed on ARB’s web-site, listed below, or may be obtained from the PublicInformation Of fice, Air Resources Board, 1001 I Street,
Visitors and Environmental Services Center, First
Floor, Sacramento, California, 95814,  (916)322−2990, as of August 30, 2016.
Inquiries concerning the substance of the proposed
regulatory actions may be directed to the agency repre-
sentative: Joe Calavita, Staff Air Pollution Specialist,Off−Road Implementation Section, at (916) 445−4586,
or (designated back−up contact) Mr. David Chen, Man-
ager, Advanced Emission Control Strategies Section, at
(626) 350−6579.
Further, the agency representative to whom non−sub-
stantive inquiries concerning the proposed administra-
tive actions may be directed is Nicole Hutchinson, 
Reg-
ulations Coordinator, (916) 322−6533. The Board staff
has compiled a record for this rulemaking, which in-
cludes all the information upon which the proposals are
based. This material is available for inspection upon re-
quest to the contact persons.
HEARING PROCEDURES
The public hearing will be conducted in accordance
with the California Administrative Procedure Act,Government Code, title 2, division 3, part 1, chapter 3.5
(commencing with section 1 1340).CALIFORNIA REGULATORY NOTICE REGISTER 2016, VOLUME NO. 36-Z
 1587Following the public hearing, the Board may adopt
the regulatory language as originally proposed, or with
non−substantial or grammatical modifications. The
Board may also adopt the proposed regulatory language
with other modifications, if the text, as modified, is suf-
ficiently related to the originally proposed text, suchthat the public was adequately placed on notice andsuch that the regulatory language, as modified, could
result from the proposed regulatory actions; in such
event, the full regulatory text, with the modificationsclearly indicated, will be made available to the public,for written comment, at least 15−days before it is
adopted.
The public may request a copy of the modified regu-
latory text, if applicable, from ARB’s Public Informa-
tion Of fice, Air Resources Board, 1001 I Street, V isitors
and Environmental Services Center, First Floor, Sacra-mento, California, 95814, (916) 322−2990.
FINAL STATEMENT OF
REASONS A V AILABILITY
Upon its completion, the Final Statement of Reasons
(FSOR) will be available, and copies may be requested
from, the agency contact persons in this notice, or it may
be accessed on ARB’s website, listed below.
INTERNET ACCESS
This notice, the ISOR, and all subsequent regulatory
documents, including the FSOR, when completed, areavailable on ARB’s website for this rulemaking at
http://www.arb.ca.gov/regact/2016/itr2016/itr2016.
htm.
SPECIAL ACCOMMODATION REQUEST
Consistent with California Government Code section
7296.2, special accommodation or language needs may
be provided for any of the following:
/C0068 An interpreter to be available at the meeting;
/C0068 Documents made available in an alternate formator another language;
/C0068 A disability−related reasonable accommodation.
To request these special accommodations or lan-
guage needs, please contact the Clerk of the Board at
(916) 322−5594 or by facsimile at (916) 322−3928 assoon as possible, but no later than 10 business days be-
fore the scheduled Board meeting. TTY/TDD/Speech
to Speech users may dial 711 for the California Relay
Service.
Consecuente con la sección 7296.2 del Código de
Gobierno de California, una acomodación especial onecesidades lingüísticas pueden ser suministradas para
cualquiera de los siguientes:
/C0068 Un intérprete que esté disponible en la audiencia;
/C0068 Documentos disponibles en un formato alterno u
otro idioma;
/C0068 Una acomodación razonable relacionados con una
incapacidad.
Para solicitar estas comodidades especiales o necesi-
dades de otro idioma, por favor llame a la oficina del
Consejo al (916) 322−5594 o envíe un fax a (916)
322−3928 lo más pronto posible, pero no menos de 10
días de trabajo antes del día programado para la audien-
cia del Consejo. TTY/TDD/Personas que necesiten este
servicio pueden marcar el 711 para el Servicio de Re-
transmisión de Mensajes de California.
GENERAL PUBLIC INTEREST
DEPARTMENT OF TOXIC SUBSTANCES
CONTROL
Former T echnichem, Inc., Site 
Proposed Consent Decree
4245 Halleck Street, Emeryville, California 94608
NOTICE OF PUBLIC COMMENT PERIOD:
September 2, 2016, through October 2, 2016
Si usted desea informacion en espanol sobre este avi-
so, favor de llamar a Jesus Cruz sin cos to al (866)495−5651.
The Department of Toxic Substances Control
(“DTSC”) invites you to review and co mment on a pro-
posed consent decree (the “Consent Decree”) with
Stephen S. Tung regarding the former Technichem,
Inc., site located at 4245 Halleck Street, Emeryville,Alameda County, California 94608 (the “Site”). TheConsent Decree resolves DTSC’s claims against
Stephen S. T ung and also against Technichem, Inc., and
Mark J. Ng under the Comprehensive EnvironmentalResponse, Compensation and Liability Act(“CERCLA”), 42 U.S.C. section 9601, et seq., for the
Site. DTSC filed a CERCLA lawsuit against several
parties, including Stephen S. Tung, Technichem, Inc.,and Mark J. Ng, to recover DTSC’s costs of investigat-
ing and cleaning up hazardous substances releases at the
Site. Under the Consent Decree, Stephen Tung will pay
to DTSC $940,000 to reimburse DTSC for costs it hasincurred responding to the tetrachloroethylene contam-
ination at the Site. Provided the payment is made as re-
quired by the Consent Decree, Technichem, Inc., andMark J. Ng will be dismissed from the case withoutprejudice.