CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1690of reasons, and the information the proposal is based
upon, from the Commission on POST at 860 Stillwater
Road, Suite 100, West Sacramento, CA 95605−1630.These documents are also located on the POST W ebsite
at: http://www .post.ca.gov/regulatory−actions.aspx
.
A V AILABILITY AND LOCATION OF THE
RULEMAKING FILE AND THE FINAL
STATEMENT OF REASONS
The rulemaking file contains all information upon
which POST is basing this proposal and is available for
public inspection by contacting the person(s) namedabove.
To request a copy of the Final Statement of Reasons
once it has been prepared, submit a written request tothe contact person(s) named above.
TITLE 13. AIR RESOURCES BOARD
NOTICE OF PUBLIC HEARING TO
CONSIDER PROPOSED REVISIONS TO
ON−BOARD DIAGNOSTIC SYSTEM
REQUIREMENTS, INCLUDING THE
INTRODUCTION OF REAL EMISSIONS
ASSESSMENT LOGGING (REAL), FOR
HEA VY−DUTY ENGINES, PASSENGER CARS,
LIGHT−DUTY TRUCKS, AND MEDIUM−DUTY
VEHICLES AND ENGINES
The California Air Resources Board (CARB or
Board) will conduct a public hearing at the time and
place noted below to consider approving for adoptionthe proposed amendments to California’s Heavy Duty
Engine On−Board Diagnostic System Requirements
(HD OBD) and On−Board Diagnostic System Require-ments for Passenger Cars, Light−Duty Trucks, andMedium−Duty V ehicles and Engines (OBD II).
DATE: November 15, 2018
TIME: 9:00 a.m.
LOCATION:  California Environmental
Protection Agency
California Air Resources Board
Byron Sher Auditorium1001 I StreetSacramento, California 95814
This item will be considered at a meeting of the
Board, which will commence at 9:00 a.m., November15, 2018, and may continue at 8:30 a.m., on November
16, 2018. Please consult the agenda for the hearing,which will be available at least ten days before Novem-
ber 15, 2018, to determine the day on 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 hearing and may pro-
vide comments by postal mail or by electronic submittal
before the hearing. The public comment period for this
regulatory action will begin on September 28, 2018.Written comments not physically submitted at the hear-
ing must be submitted on or after September 28, 2018,
and received no later than 5:00 p.m. on November 13,
2018. CARB requests that when possible, written and
email statements be filed at least 10 days before the
hearing to give CARB staff and Board members addi-
tional time to consider each comment. The Board alsoencourages members of the public to bring to the atten-
tion of staff in advance of the hearing any suggestions
for modification of the proposed regulatory action.Comments submitted in advance of the hearing must be
addressed to one of the following:
Postal
mail: Clerk of the Board
California 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 (Gov. Code, § 6250 et seq.), your written and oral
comments, attachments, and associated contact infor-mation (e.g., your address, phone, email, etc.) becomepart of the public record and can be released to the pub-
lic upon request.
Additionally, the Board requests but does not require
that persons who submit written comments to the Board
reference the title of the proposal in their comments to
facilitate review.
AUTHORITY AND REFERENCE
This regulatory action is proposed under that authori-
ty granted in Health and Safety Code, sections 38501,38505, 38510, 39010, 39500, 39600, 39601, 39602.5,40000, 43000.5, 43013, 43016, 43018, 43100, 43101,
43104, 43105, 43105.5, 43106, 43154, 43211, and
43212; and Engine Manufacturers Association v. Cali-
fornia Air Resources Board (2014) 231 Cal.App.4th
1022. This action is proposed to implement, interpretCALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1691and make specific sections 38501, 38505, 38510,
39002, 39003, 39010, 39018, 39021.5, 39024, 39024.5,
39027, 39027.3, 39028, 39029, 39031, 39032, 39032.5,39033, 39035, 39037.05, 39037.5, 39038, 39039,
39040, 39042, 39042.5, 39046, 39047, 39053, 39054,
39058, 39059, 39060, 39515, 39600, 39601, 39602.5,43000, 43000.5, 43004, 43006, 43013, 43016, 43018,43100, 43101, 43102, 43104, 43105, 43105.5, 43106,
43150, 43151, 43152, 43153, 43154, 43155, 43156,
43204, 43211, and 43212 of the Health and SafetyCode.
INFORMATIVE DIGEST OF PROPOSED ACTION
AND POLICY STATEMENT OVERVIEW
 (GOV . CODE, § 11346.5, subd. (a)(3))
Sections Affected
: Proposed amendments to Cali-
fornia Code of Regulations (Cal. Code Regs.), title 13,
sections 1968.2, 1971.1, and 1971.5.
Documents Incorporated by Reference (Cal. Code
Regs., tit. 1, § 20, subd. (c)(3))
The following documents and models would be in-
corporated in the regulation by reference as specified by
section:
/C0068 EMFAC2014, section 1971.5(b)(3)(A)(iv)
/C0068 40 Code of Federal Regulations (CFR)
86.004−28(i), August 21, 2018; section
1971.1(d)(6)
/C0068 40 CFR 1065.680, August 21, 2018; section
1971.1(d)(6)
/C0068 International Organization for Standardization
(ISO) 2575 “Road vehicles — Symbols for
controls, indicators and tell−tales,” July, 2010;
section 1971 .1(h)(1.12)
/C0068 SAE International (SAE) J1699−3 — “Vehicle
OBD II Compliance Test Cases,” July, 2017;section 1971.1(h)(1.9)
/C0068 SAE J1930 “Electrical/Electronic Systems
Diagnostic Terms, Definitions, Abbreviations,and Acronyms — Equivalent to ISO/TR15031−2,” March, 2017; section 1971.1(h)(1.1)
/C0068 SAE J1930−DA “Electrical/Electronic Systems
Diagnostic Terms, Definitions, Abbreviations,and Acronyms Web Tool Spreadsheet,” March,2017; section 1971.1(h)(1.1.1)
/C0068 SAE J1939 “Serial Control and Communications
Heavy Duty Vehicle Network — Top LevelDocument,” August, 2013; section1971.1(h)(1.7.1)
/C0068 SAE J1939−DA “J1939 Digital Annex of SerialControl and Communication Heavy Duty Vehicle
Network Data,” February, 2018; section1971.1(h)(1.7.1)(A)/C0068 SAE J1939−1 “On−Highway Equipment Control
and Communication Network,” November, 2012;
section 1971.1(h)(1.7.2)
/C0068 SAE J1939−11 “Physical Layer, 250 Kbps,
Twisted Shielded Pair,” December, 2016; section
1971.1(h)(1.7.3)
/C0068 SAE J1939−13 “Off−Board Diagnostic
Connector,” October, 2016; section
1971.1(h)(1.7.4)
/C0068 SAE J1939−15 “Physical Layer, 250 Kbps,
Un−Shielded Twisted Pair (UTP),” August, 2015;section 1971.1(h)(1.7.5)
/C0068 SAE J1939−21 “Data Link Layer,” March, 2016;
section 1971.1(h)(1.7.6)
/C0068 SAE J1939−31 “Network Layer,” April, 2014;
section 1971.1(h)(1.7.7)
/C0068 SAE J1939−71 “Vehicle Application Layer,”
October, 2016; section 1971.1(h)(1.7.8)
/C0068 SAE J1939−73 “Application Layer —
Diagnostics,” May, 2017; section1971.1(h)(1.7.9)
/C0068 SAE J1939−81 “Network Management,” March,2017; section 1971.1(h)(1.7.10)
/C0068 SAE J1939−84 “OBD Communications
Compliance Test Cases for Heavy DutyComponents and Vehicles,” October, 2017;section 1971.1(h)(1.7.11)
/C0068 SAE J1962 “Diagnostic Connector,” July, 2016;
section 1971.1(h)(1.2)
/C0068 SAE J1979 “E/E Diagnostic Test Modes,”
February, 2017; section 1971.1(h)(1.4)
/C0068 SAE J1979−DA “Digital  Annex of  E/E Diagnostic
Test Modes,” February, 2017; section
1971.1(h)(1.4.1)
/C0068 SAE J2012 “Diagnostic Trouble Code
Definitions,” December, 2016; section
1971.1(h)(1.5)
/C0068 SAE J2012−DA “Digital Annex of Diagnostic
Trouble Code Definitions and Failure Type Byte
Definitions,” December, 2016; section1971.1(h)(1.5.1)
/C0068 SAE J2403 “Medium/Heavy−Duty E/E SystemsDiagnosis Nomenclature,” February, 2014;section 1971.1(h)(1.8)
/C0068 SAE J3162 “In−Use Monitor Performance Ratio
(IUMPR) Data Collection Tool Process,” June,2018; section 1971.1(h)(1.11)
/C0068 Data Record Reporting Procedures for
Over−the−Air Reprogrammed Vehicles and
Engines, August 16, 2018; sections 1971.1(h)(6)and 1968.2(g)(8)CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1692Background and Effect of the Proposed Regulatory
Action :
On−Board Diagnostic (OBD) systems serve an im-
portant role in helping to ensure that engines and vehi-
cles maintain low emissions throughout their full lives.
OBD systems monitor virtually all emission controls onengines and vehicles, including catalysts, particulatematter (PM) filters, exhaust gas recirculation systems,oxygen sensors, evaporative systems, fuel systems, and
electronic powertrain components, and other compo-nents and systems that can affect emissions when mal-functioning. The systems also provide specific diagnos-
tic information in a standardized format through a stan-dardized serial data link on−board the vehicles. The use
and operation of OBD systems ensure reductions of in−
use motor vehicle and motor vehicle engine emissionsthrough improvements in emission system durabilityand performance.
The Board originally adopted comprehensive OBD
regulations in 1990, requiring all 1996 and newer model
year passenger cars, light−duty trucks, and medium−duty vehicles and engines to have OBD II systems. The
Board subsequently updated the OBD requirements in2002 with the adoption of California Code of Regula-
tions, title 13, sections 1968.2 and 1968.5, which estab-
lished OBD II requirements (CCR, title 13, §1968.2)and enforcement requirements (Cal. Code Regs., title13, §1968.5) for 2004 and subsequent model year vehi-cles. The Board has modified the OBD II regulation inseveral updates since initial adoption to address manu-
facturers’ implementation concerns and, where needed,
to strengthen specific monitoring requirements. In2005, CARB adopted Cal. Code Regs., title 13, section
1971.1, which established comprehensive OBD re-quirements for 2010 and subsequent model year heavy−
duty engines and vehicles (i.e., vehicles with a gross ve-
hicle weight rating greater than 14,000 pounds), re-ferred to as HD OBD. The Board subsequently updated
the HD OBD regulation in 2009 and adopted HD OBD−specific enforcement requirements (Cal. Code Regs., ti-
tle 13, §1971.5). The Board last adopted updates to theOBD II requirements in 2015 and to the HD OBD regu-lation in 2012 to address several concerns and issues re-
garding the regulations.
Since then, CARB staff has identified a number of
proposed amendments to the HD OBD regulations that
it believes are warranted. Some of the proposed amend-ments address manufacturers’ implementation con-cerns and provide clarification on existing require-ments. Staff is also proposing amendments that it be-lieves are needed to ensure the integrity of the HD OBD
systems and to provide valuable information for otherCARB programs through the adoption of Real Emis-sions Assessment Logging (REAL). The proposed
amendments to the HD OBD regulation include:
/C0068 Clarifying the requirements for intrusive
diagnostics
/C0068 Revising the in−use monitor performance ratio(IUMPR) requirements, including increasing the
minimum required ratio, adding monitors required
to track and report the in−use monitor performance
ratio data, and revising the requirements to address
plug−in hybrid electric vehicles
/C0068 Revising the criteria manufacturers must meet to
be exempt from monitoring the feedgas generation
performance of the non−methane hydrocarbon
(NMHC) catalyst and catalyzed particular matter
(PM) filter
/C0068 Revising the gasoline and diesel crankcase
ventilation system monitoring requirements
/C0068 Specifying more detailed monitoring
requirements for hybrid vehicles
/C0068 Updating the SAE International (SAE) and
International Organization for Standardization
(ISO) document references
/C0068 Revising the readiness status requirements for
exhaust gas/oxygen sensors and sensor heaters
/C0068 Adding data collection requirements as part of
over−the−air reprogramming events
/C0068 Adding data stream parameters required to be
reported to assist with CARB programs (e.g.,
REAL)
/C0068 Revising the certification demonstration testing
requirements to revise the test engine agingrequirements, clarify the allowable test sequence
procedure, and add more data to be collected
during testing
/C0068 Adding items required to be submitted as part of
the certification application
/C0068 Revising the fines applicable to deficiencies
/C0068 Revising the production engine/vehicle evaluation
testing requirements to require permanent fault
code erasure testing and to collect more data from
in−use engines/vehicles
Staff is also proposing similar amendments to the
OBD II regulation section 1968.2, where necessary, formedium−duty diesel engines and vehicles to harmonize
the requirements of the two regulations. Additionally,
while staff was not planning to do an update to the OBD
II regulation this year that would affect light−duty vehi-cles, staff has determined based on comments from
manufacturers that a few additional regulation changes
are needed immediately in order to ensure manufactur-ers are able to certify near future vehicles that complywith the OBD II regulation. Staff has also found an issueCALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1693related to the definition of “active of f−cycle credit tech-
nology” in the OBD II regulation and is proposing an
amendment to address this.
Staff is also proposing amendments to the HD OBD
enforcement regulation (section 1971.5) to align with
some of the proposed changes to the HD OBD regula-
tion, correct some oversights and errors, and address
manufacturers’ workload issues. These include
changes to the nonconforming criteria to account for the
proposed revised in-use monitor performance ratios, re-
laxations to the mandatory recall interim thresholds for
alternate−fueled engines, and relaxations to the manu-
facturer self−testing requirements.
CARB may also consider other changes to the sec-
tions affected, as listed above, during the course of this
rulemaking process.
Objectives and Benefits of the Proposed Regulatory
Action:
The proposed HD OBD and OBD II amendments will
provide manufacturers with greater compliance flexi-
bility, and strengthen and clarify the performance re-
quirements they are expected to meet in designing and
developing robust OBD systems. This will encourage
manufacturers to design and build more durable en-
gines and emission-related components, all of which
will help ensure that forecasted emission reduction ben-
efits from adopted light−, medium−, and heavy−duty
vehicle and engine emission control programs are
achieved in−use. The implementation of REAL through
added nitrogen oxide and greenhouse gas emission
tracking requirements will allow CARB to characterize
emissions performance in−use, providing information
that will allow for better modeling and technology per-
formance evaluation to inform future program adjust-
ments. Ultimately, the proposed action will further the
goal of CARB which is to promote and protect public
health, welfare and ecological resources through the ef-
fective and ef ficient reduction of air pollutants, and pro-
vide safe, clean air to Californians. No quantifiable ben-
efit to worker safety is expected.
CARB developed the proposed regulatory actions
through an extensive public process. The HD OBD reg-
ulatory update process began in 2016, when CARB
staff started having meetings with stakeholders (mainly
engine manufacturers) to discuss the development of
proposed amendments for the HD OBD regulations.
CARB held a public workshop in El Monte on Novem-
ber 2, 2017 to discuss the proposal and to seek com-
ments. The workshop notice and workshop presenta-
tion were posted on the OBD Program website prior to
the workshop, and interested stakeholders participated
in the workshop in person or via webinar . Additionally,
draft regulatory language was sent to members of the
Truck and Engine Manufacturers Association (EMA),which represents the main stakeholders affected by the
proposed rulemaking. CARB staff also presented and
sought comments regarding elements of the upcomingproposed amendments to the HD OBD regulations dur-
ing several SAE OBD symposiums, including sympo-
siums held in March, 2016 (Stuttgart, Germany); Sep-tember, 2016 (Indianapolis, Indiana); March, 2017(Turin, Italy); September, 2017 (Anaheim, California);
and March, 2018 (Barcelona, Spain). These sympo-
siums were attended by vehicle and engine manufactur-
ers, scan tool manufacturers, and individuals involvedin various other aspects of the automotive industry.
Throughout the rulemaking process, CARB staff held
17 meetings, including 1 in−person meeting with EMAheld in El Monte, California, as well as numerous meet-
ings and correspondences (comprising of teleconfer-
ences, in−person meetings, and e−mail correspon-dences) with individual manufacturers. CARB staff al-
so participated in numerous teleconferences with SAE
committee members to help develop the specifications
related to the proposed new data stream parameter andtracking requirements in the SAE standards. The pro-posal was developed in close collaboration with these
stakeholders. As a result of the comments received
throughout the regulatory process, staff made signifi-cant changes to the proposed amendments to the HDOBD regulations, which are reflected in the final
proposal.
Comparable Federal Regulations:
CARB initially adopted the HD OBD regulation in
2005. A waiver for the regulation was granted by U.S.EPA in 2008.
1 CARB amended the regulation in 2010,
and was granted another waiver action by U.S. EPA in
2012.2 On November 7, 2016, the U.S. EPA formally
granted California’s request for a waiver regarding theHD OBD regulation, as last amended on June 26,2013,
3 recognizing that the HD OBD regulation is at
least as stringent in protecting public health and welfare
as the federal regulation, and that unique circumstancesexist in California necessitating the need for the State’s
own motor vehicle regulations program.
The U.S. EPA has also adopted OBD requirements
for vehicles and engines above 14,000 pounds, which is
1 California State Motor Vehicle Pollution Control Standards;
Notice of Waiver of Clean Air Act Pr eemption; California’ s 2010
Model Y ear Heavy−Duty V ehicle and Engine On−Board Dia gnos-
tic Standards, 73 Fed. Reg. 52042 (September 8, 2008).
2 California State Motor Vehicle Pollution Control Standards;
Notice of Waiver of Clean Air Act  Preemption; California’ s 2010
Model Y ear Heavy−Duty V ehicle and Engine On−Board Dia gnos-
tic Standards, 77 Fed. Reg. 73459 (December 10, 2012).
3 California State Motor Vehicle Pollution Control Standards;
Malfunction and Diagnostic System  Requirements for 2010 and
Subsequent Model Year Heavy−Duty Engines; Notice of Deci-
sion, 81 Fed. Reg. 78149 (November 7, 2016).CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1694the weight range for California’s “heavy−duty” class.
The federal regulation (40 CFR 86.010−18) was pub-
lished on February 24, 2009, and subsequently amend-
ed on September 15, 2011 and June 17, 2013.
The federal regulation is consistent with CARB’s
California regulation in the most important aspects.However, the California HD OBD regulation in general
still establishes more comprehensive and stringent re-quirements than the federal OBD regulation. For exam-
ple, the HD OBD regulation generally requires Califor-
nia OBD systems on diesel engines to detect malfunc-tions before emissions exceed more stringent thresh-olds than those required by the federal HD OBD regula-
tion. Further, the federal regulation does not require the
OBD system to detect diesel oxidation catalyst mal-
functions before a specific emission threshold is ex-
ceeded like the California OBD regulations — it is only
required to detect a failure if the catalyst completelylacks NMHC conversion capability. As another exam-ple, under the federal HD OBD regulation, the malfunc-
tion thresholds for the emission threshold monitors arenot required to be adjusted to account for emissions dueto infrequent regeneration events.
The proposed 2018 amendments would continue
California’s ef forts to require more comprehensive and
robust monitoring of emission related systems andcomponents than required by federal OBD regulations.
The amendments also incorporate some new require-
ments (e.g., incorporation of REAL for new data pa-
rameters required to be tracked by the engine) thatwould assist other California mobile source emissionsprograms. Although differences would exist betweenthe state and federal requirements, heavy−duty OBDsystems can be designed to comply with both the federal
and California programs. In fact, U.S. EP A’s regulation
directly allows acceptance of systems that have beencertified to California’s HD OBD regulation and todate, all heavy−duty engine manufacturers have chosen
this path for certification.
Concerning the OBD II regulation, in 2014, the U.S.
EPA adopted Tier 3 regulations that include provisionsthat generally align federal OBD requirements for 2017
and subsequent model year light duty vehicles, light−
duty trucks, medium−duty passenger vehicles, andcomplete heavy−duty vehicles between 8,501 and14,000 lbs. GVWR with CARB’s California OBD IIregulation, as last amended in 2013.
Although the federal OBD regulation (40 CFR
86.1806−5) is now generally harmonized with Califor-nia’s OBD II regulation, the federal requirements differ
from corresponding California OBD requirements inseveral respects. California’s OBD II regulation still es-
tablishes more comprehensive and stringent require-ments than the amended federal regulation. The OBD II
regulation requires California OBD systems to complywith monitoring requirements earlier than federal OBD
systems must comply with the federal OBD regulation.
For example, California’s OBD II regulation requiresOBD systems in medium−duty diesel vehicles and en-
gines to detect PM filter performance faults before
emissions exceed 0.03 grams per brake−horsepowerhour (g/bhp−hr) beginning in the 2013 model year, and
allows exclusions of specific failure modes until the
2015 model year. However, the federal OBD regulation
requires federal OBD systems to detect PM filter per-formance faults at these same levels beginning in the2019 model year. Therefore, California OBD systems
must comply with this requirement (without excluding
specific failure modes) at least three model years earlier
than federal OBD systems. Additionally, the federal
OBD requirements do not incorporate the anti−tamper-
ing provisions of the OBD II regulation (that preventunauthorized modifications of the computer−coded en-
gine operating parameters of the on−board computer) or
the deficiency provisions of the OBD II regulation (that
allow certification of vehicles with non−fully compli-ant OBD systems provided manufacturers demonstratea good−faith effort to comply with OBD requirements
as expeditiously as possible, pay fines, and provided the
deficiency would not trigger an ordered recall for theOBD system). The federal OBD regulations, howeverretain the provision that allows U.S. EPA to deem Cali-
fornia−certified OBD II systems to comply with the
federal OBD regulation.
4
Historically, virtually every vehicle sold in the U.S. is
designed and certified to California’s OBD II require-
ments in lieu of the federal OBD requirements.
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 action, CARB conducted a search of any similar
regulations on this topic and concluded these regula-
tions are neither inconsistent nor incompatible with ex-
isting state regulations.
DISCLOSURES REGARDING THE
PROPOSED REGULATION
Fiscal Impact/Local Mandate Determination
Regarding the Proposed Action (Gov. Code,
§ 11346.5, subds. (a)(5 ) & (6)):
The determinations of the Board’s Executive Officer
concerning the costs or savings incurred by public
agencies and private persons and businesses in reason-
able compliance with the proposed regulatory actionare presented below.
4 40 CFR 86.1806−5(j).CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1695Under Government Code sections 11346.5, subdivi-
sion (a)(5) and 11346.5, subdivision (a)(6), the Execu-
tive Officer must determine whether the proposed regu-
latory action would create costs to any State agency or
in federal funding to the State, costs or mandate to any
local agency or school district, whether or not reim-
bursable by the State under Government Code, title 2,
division 4, part 7 (commencing with section 17500), or
other nondiscretionary cost or savings to State or local
agencies. Accordingly, the Executive Officer’s deter-
mination is as follows:
Cost to any Local Agency or School District Requiring
Reimbursement under sections 17500 et seq.:
The proposed amendments will not have any fiscal
impacts on local agencies on the current year and the
next two subsequent years because the earliest imple-
mentation date for the proposal is the 2022 model year.
Beginning with the 2021/2022 fiscal year, however, lo-
cal government agencies will pay a higher purchaseprice for new heavy− and medium−duty vehicles with
engines covered by the proposed amendments if manu-
facturers pass on costs. CARB’s EMFAC model indi-
cates local government heavy− and medium−duty vehi-
cles represent about 8.1 percent of the total State vehicle
population. According to annual sales numbers provid-
ed by engine manufacturers to CARB, approximately
34,735 heavy− and medium−duty vehicles are sold an-
nually in California. Assuming that local government
fleets also purchase 8.1 percent of all new heavy− and
medium−duty vehicles sold in California, a total of
2,814 of these vehicles are purchased annually (8.1% *
34,735 annual CA vehicles sales) by local government
fleets. This indicates that approximately 16,884 vehi-
cles (2,814 * 6) would be impacted over the six−year
life of the proposal and the regulatory cost to local gov-
ernment fleets is estimated to be approximately
$119,500 per year (i.e., $42.46 * 2,814) on average in
the 2021/2022 fiscal year and thereafter. In addition, lo-
cal agencies purchased 5,681 light−duty vehicles on av-
erage for the past five years, according to interagency
analysis of new vehicle registration records. Since the
proposed amendments would increase the price of a
new light−duty vehicle by $0.34, local agencies will in-
cur additional annual cost of about $2,000 (i.e., $0.34 *
5,681). Therefore, the total annual costs to local agen-
cies will amount to $121,500 (i.e., $119,500 + $2,000)
beginning with the 2021/2022 fiscal year and thereafter.
Any cost to local government is not reimbursable by
the State, pursuant to Government Code, title 2, divi-
sion 4, part 7 (commencing with section 17500) be-
cause the additional costs associated with the proposed
amendments apply generally to all entities that pur-
chase affected engines and vehicles, private fleets and
owners as well as state and local agencies. The pro-posed amendments do not mandate a new program or
higher level of service on any local government.
Cost or Savings for State Agencies:
The proposed amendments will not have any cost im-
pacts on State agencies in the current fiscal year and
next two subsequent fiscal years because the earliest
implementation date for the proposed amendments isthe 2022 model year. Beginning with the 2021/2022 fis-cal year, however, State agencies would be expected to
pay a higher purchase price for new heavy− and medi-
um−duty vehicles like any other purchasers of these ve-hicles. According to CARB’s EMFAC model, the State
government heavy− and medium−duty vehicle popula-
tion is about 3.1 percent of the total State vehicle total.
Assuming that State government fleets also purchase3.1 percent of all new heavy− and medium−duty vehi-
cles sold in California, a total of 1,077 of these vehicles
are purchased annually by State government fleets (i.e.,3.1% * 34,735 annual HD vehicles sold in CA). Thus,the regulatory cost to State government fleets is esti-
mated to be $45,700 (i.e., $42.46 * 1,077) per year on
average in the 2021/2022 fiscal year and thereafter. Inaddition, State agencies purchased 797 light−duty vehi-
cles on average for the past five years, according to in-
teragency analysis of new vehicle registration records.
Since the proposed amendments would increase theprice of a new light−duty vehicle by $0.34, State agen-
cies will incur additional annual cost of about $270 (i.e.,
$0.34 * 797). Therefore, the total annual costs to Stateagencies will amount to about $46,000 (i.e., $45,700 +
$270) beginning with the 2021/2022 fiscal year and
thereafter.
The amendments may require negligible additional
time for CARB staff to review HD OBD and OBD II ap-
plications, but is not anticipated to require additional
staff positions.
Other Non−Discr etionary Costs or Savings on Local
Agencies:
No other non−discretionary costs or savings to local
agencies are expected.
Cost or Savings in Federal Funding to the State:
No costs or savings in federal funding is anticipated.
Housing Costs (Gov. Code,§ 11346.5, subd. (a)(12)):
The Executive Officer has also made the initial deter-
mination that the proposed regulatory action will not
have a significant effect on housing costs.
Significant Statewide Adverse Economic Impact
Directly Affecting Business, Including Ability to
Compete (Gov. Code, §§ 1 1346.3, subd. (a), 1 1346.5,
subd. (a)(7), 1 1346.5, subd. (a)(8)):
The Executive Of ficer has made an initial determina-
tion that the proposed regulatory action would not have
a significant statewide adverse economic impact direct-CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1696ly affecting businesses, including the ability of Califor-
nia businesses to compete with businesses in other
states, or on representative private persons. Support for
this determination is set forth in the Initial Statement of
Reasons (ISOR).
Results of The Economic Impact
Analysis/Assessment (Gov. Code, § 11346.5, subd.
(a)(10)):
NON−MAJOR REGULATION: Statement of the
Results of the Economic Impact Assessment (EIA):
Effect on Jobs/Businesses:
The Executive Officer has determined that the pro-
posed regulatory action would have a minor or no im-
pact on the creation or elimination of jobs within theState of California, the creation of new businesses orelimination of existing businesses within the State of
California, or the expansion of businesses currently do-
ing business within the State of California. A detailedassessment of the economic impacts of the proposed
regulatory action can be found in the Economic Impacts
Assessment in the ISOR.
Benefits of the Pr oposed Regulation:
The objective of the proposed amendments is to
strengthen the HD OBD and OBD II requirements, pro-
vide manufacturers with greater compliance flexibility,
and clarify the performance requirements they are ex-pected to meet in designing and developing robust HD
OBD and OBD II systems. This will encourage manu-
facturers to design and build more durable engines and
emission−related components, all of which will help
ensure that forecasted emission reduction benefits from
adopted light−, medium−, and heavy− duty vehicle and
engine emission control programs are achieved in−use.
A summary of these benefits is provided, please refer
to “Objectives and Benefits”, under the Informative Di-
gest of Proposed Action and Policy Statement Over-view Pursuant to Government Code 11346.5(a)(3) dis-
cussion above.
Business Report (Gov. Code, §§ 11346.5, subd.
(a)(11); 1 1346.3, subd. (d)):
In accordance with Government Code sections
11346.5, subdivisions (a)(11) and 1 1346.3, subdivision
(d), the Executive Officer finds the reporting require-
ments of the proposed regulatory action which apply to
businesses are necessary for the health, safety, and wel-
fare of the people of the State of California.
Cost Impacts on Representative Private Persons or
Businesses (Gov. Code, §  11346.5, subd. (a)(9)):
In developing this regulatory proposal, CARB staff
evaluated the potential economic impacts on represen-
tative private persons or businesses. For the proposedchanges to the HD OBD regulation, the incrementalcost to heavy− and medium−duty engine manufacturersis estimated to be $35.14 per engine. Similarly, the pro-
posed changes to the OBD II regulations are estimated
to increase the cost to light−duty and medium−dutygasoline vehicle manufacturers by $0.30 per vehicle.
These costs will likely be passed on to the consumer in
the form of increases to the retail price of an engine. Theincremental cost to consumers is estimated to rangefrom $0.34 for purchasers of light− and medium−duty
gasoline vehicles and $42.46 for purchasers of heavy−
and medium− duty engines, which is negligible com-pared to the typical price of a vehicle or engine.
Effect on Small Bu siness (Cal. Code Regs., tit. 1, § 4,
subds. (a) and (b)):
The Executive Officer has also determined under
California Code of Regulations, title 1, section 4, thatthe proposed regulatory action would affect small busi-
nesses. Small businesses are estimated to include some
heavy−duty engine manufacturers, heavy− and
medium−duty engine repair shops, and the smaller
heavy− and medium−duty vehicle fleets. The cost im-
pact to the small businesses in these industries is expect-
ed to range from zero to $582 assuming these business-es purchase zero to 20 engines per year. Since small en-gine manufacturers purchase engines from large engine
manufacturers for modifications before reselling them,
small engine manufacturers would be expected to passthe higher engine purchasing costs on to the purchaserof their engine in the form of an increased retail price for
the modified engine as noted above in the cost impacts
on private persons or businesses. In addition, small ve-hicle fleets are expected to incur an incremental annual
cost ranging from zero to $66.32 for a fleet purchasing
zero to two vehicles. Engine repair shops may experi-
ence increased business.
Alternatives Statement (Gov. Code, § 1 1346.5. subd.
(a)(13)):
Before taking final action on the proposed regulatory
action, the Board must determine that no reasonable al-
ternative considered by the Board, or that has otherwise
been identified and brought to the attention of the
Board, would be more ef fective in carrying out the pur-
pose for which the action is proposed, would be as ef-fective and less burdensome to affected private persons
than the proposed action, or would be more cost−
effective to affected private persons and equally effec-
tive in implementing the statutory policy or other provi-
sions of law. Alternatives to the proposed rulemakingthat were considered are described in the ISOR.
STATE IMPLEMENTATION PLAN REVISION
If adopted by CARB, CARB plans to submit the pro-
posed regulatory action to the United States Environ-mental Protection Agency (U.S. EPA) for approval as a
revision to the California State Implementation PlanCALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1697(SIP) required by the federal Clean Air Act (CAA). The
adopted regulatory action would be submitted as a SIP
revision because it amends regulations intended to re-duce emissions of air pollutants in order to attain and
maintain the National Ambient Air Quality Standards
promulgated by U.S. EPA pursuant to the CAA.
ENVIRONMENTAL ANALYSIS
CARB, as the lead agency under the California Envi-
ronmental Quality Act (CEQA), has reviewed the pro-
posed regulatory amendments and concluded that theproposed action is exempt pursuant to CEQA Guide-lines § 15308, because the action is an action taken by
regulatory agencies for the protection of the environ-
ment. A brief explanation of the basis for reaching thisconclusion is included in Chapter IV of the ISOR.
SPECIAL ACCOMMODATION REQUEST
Consistent with California Government Code Sec-
tion 7296.2, special accommodation or language needs
may be provided for any of the following:
/C0068 An interpreter to be available at the hearing;
/C0068 Documents made available in an alternate formator another language; and
/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 hearing. TTY/TDD/Speech to
Speech users may dial 711 for the California RelayService.
Consecuente con la sección 7296.2 del Código Gob-
ierno de California, una acomodación especial o necesi-
dades lingüísticas pueden ser suministradas paracualquiera de los siguientes:
/C0068 Un intérprete que esté disponible en la audiencia;
/C0068 Documentos disponibles en un formato alterno u
otro idioma; y
/C0068 Una acomodación razonable relacionados con unaincapacidad.
Para solicitar estas comodidades especiales o necesi-
dades de otro idioma, por favor llame a la oficina delConsejo al (916) 322−5594 o envié 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 esteservicio pueden marcar el 711 para el Servicio de Re-transmisión de Mensajes de California.AGENCY CONTACT PERSONS
Inquiries concerning the substance of the proposed
regulatory action may be directed to the agency repre-sentative Leela Rao, Manager, On−Board Diagnostics
Program Development Section, at (626) 350−6469 or
(designated back−up contact) Adriane Chiu, Air Re-
sources Engineer, On−Board Diagnostics Program De-
velopment Section, at (626) 350−6453.
A V AILABILITY OF DOCUMENTS
CARB staff has prepared a Staff Report: Initial State-
ment of Reasons (ISOR) for the proposed regulatory ac-
tion, which includes a summary of the economic andenvironmental impacts of the proposal. The report is en-
titled: Public Hearing to Consider the Proposed Revi-
sions to the Malfunction and Diagnostic System Re-quirements for Heavy−Duty Engines (HD OBD) andPassenger Cars, Light−Duty Trucks, and Medium−
Duty V ehicles and Engines (OBD II).
Copies of the ISOR and the full text of the proposed
regulatory language, in underline and strikeout formatto allow for comparison with the existing regulations,
may be accessed on CARB’s website listed below, or
may be obtained from the Public Information Office,Air Resources Board, 1001 I Street, Visitors and Envi-ronmental Services Center, First Floor, Sacramento,
California, 95814, on September 25, 2018.
Further, the agency representative to whom nonsub-
stantive inquiries concerning the proposed administra-
tive action may be directed is Chris Hopkins, Regula-
tions Coordinator, (916) 445−9564. The Board staff has
compiled a record for this rulemaking action, which in-
cludes all the information upon which the proposal is
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).
Following the public hearing, the Board may take ac-
tion to approve for adoption the regulatory language as
originally proposed, or with non−substantial or gram-
matical modifications. The Board may also approve for
adoption the proposed regulatory language with other
modifications if the text as modified is sufficiently re-
lated to the originally proposed text that the public was
adequately placed on notice and that the regulatory lan-
guage as modified could result from the proposed regu-
latory action. If this occurs, the full regulatory text, with
the modifications clearly indicated, will be made avail-
able to the public, for written comment, at least 15 daysbefore final adoption.CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z
 1698The public may request a copy of the modified regu-
latory text from CARB’ s Public Information Office, Air
Resources Board, 1001 I Street, Visitors and Environ-mental Services Center, First Floor, Sacramento, Cali-
fornia, 95814.
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 may
be accessed on CARB’s website listed below.
INTERNET ACCESS
This notice, the ISOR and all subsequent regulatory
documents, including the FSOR, when completed, are
available on CARB’s website for this rulemaking athttps://www.arb.ca.gov/regact/2018/hdobd2018/
hdobd18.htm .
TITLE 14. STATE MINING AND
GEOLOGY BOARD
CALIFORNIA CODE OF REGULATIONS
TITLE 14. NATURAL RESOURCES
Division 2. Department of Conservation
Chapter 8. Mining and Geology
Subchapter 1. State Mining and Geology Board
Article 7. Financial Assurances Appeal Procedures
Office of Administrative Law Notice File Number:
Z−2018−0918−05
NOTICE IS HEREBY GIVEN that the State Min-
ing and Geology Board (SMGB) proposes to amendand adopt the regulations described below after consid-
ering all comments, objections, or recommendations
regarding the proposed action.
PROPOSED REGULATORY ACTION
The SMGB proposes to amend and adopt new sec-
tions in Article 7 of the California Code of Regulations
(CCR), Title 14, Division 2, Chapter 8, Subchapter 1
pertaining to financial assurances appeal procedures.
Specifically, CCR sections 3680−3690 will be amended
to conform appeal procedures to recent statutoryamendments and new CCR sections 3691.1−3691.10
will be added to set forth procedures for the Department
of Conservation, Division of Mine Reclamation’s(DMR) statutory authority to appeal lead agency ap-proved financial assurance cost estimates (F ACEs).WRITTEN COMMENT PERIOD AND
PUBLIC HEARING
Any person, or his or her authorized representative,
may submit written statements, arguments, or com-ments related to the proposed regulatory action to theSMGB. Comments may be submitted by email to
smgb@conservation.ca.gov, by facsimile (FAX) to
(916) 445−0738, or by mail to:
State Mining and Geology Board
801 K Street, MS 20−15
Sacramento, CA 95814ATTN: F ACE Appeals
The written comment period closes at 5:00 p.m. on
November 13, 2018. The SMGB will only consider
comments received at the SMGB office by that time.
The SMGB will hold a hearing if it receives a written
request for a public hearing from any interested person,
or his or her authorized representative, no later than 15days before the close of the written comment period.
AUTHORITY AND REFERENCE
The SMGB is proposing to amend and adopt new sec-
tions of Article 7 of Title 14, Division 2, Chapter 8, Sub-
chapter 1 of the CCR pursuant to the authority grantedin the Surface Mining and Reclamation Act of 1975
(Public Resources Code (PRC) section 2710 et seq.,
hereinafter “SMARA”), specifically PRC sections2755 and 2759, to implement, interpret, and make spe-
cific PRC sections 2736 and 2770.
INFORMATIVE DIGEST/POLICY STATEMENT
OVERVIEW
On April 18, 2016, Governor Brown signed Assem-
bly Bill (AB) 1142 (Gray) into law and thereby enacted
significant reform to SMARA. In order to enact the re-
visions to SMARA, SMGB must address these changes
by way of regulations.
SMARA was enacted in part to ensure that any signif-
icant adverse impacts of mining to the environment are
prevented or mitigated and public health and safety are
protected. Under SMARA, surface mining operators
are required to submit to their respective local govern-
ments (lead agency) for approval a plan for reclaiminglands disturbed by mining activities as well as proof of
financial assurances to ensure that those disturbed lands
are reclaimed in accordance with the approved reclama-tion plan. Lead agencies are responsible for ensuringtheir surface mining operators are in compliance with
SMARA’s requirements, including permitting and con-
ditions of approval that relate to the conduct of mining,
the operation’s reclamation plan, and financial assur-ance requirements.