E - 1

APPENDIX E: PROPOSED MINOR AMENDMENTS TO THE OFF-RO AD

AND LSI FLEET REGULATIONS
This appendix gives an in-depth description of the proposed minor amendments to the off-road and LSI fleet regulations.
A. Proposed Minor Modifications to the Off-road Reg ulation The following sections describe, in detail, the pro posed minor amendments to the off-road regulation.
The proposed minor amendments include:

• Replace the word “should” with “shall” wherever itappears in the regulation;

• Modify the captive attainment area fleet definitio n to address the proposed major modification to combine the PM and N Ox fleet average and BACT requirements;

• Clarify the low use vehicle definition;

• Modify the flexibility engine provisions to simpli fy the reporting requirements for post-2007 flexibility engines and remove the requirement to account for such “flex” engines differently in t he fleet average calculations;

• Clarify the alternative fuel regulatory language;

• Add additional incentives for electric vehicles;

• Include a provision to incentive the use of hybrid vehicles;

• Remove the hours in fleet average compliance optio n;

• Add language to the new fleet provisions to clarif y what requirements must be met by new fleets;

• Simplify the adding vehicle provisions;

• Combine the final compliance requirements for all fleets, and clarify that after the final compliance date, the turnover and retrofit exemptions are still applicable;

• Modify the reporting deadlines for all fleets;

• Modify the labeling requirements for all vehicles;

• Clarify the Compliance Certification process;

• Revise the order of turnover language to avoid req uiring fleets to distinguish between Tier 1s with a PM standard and those without;

• Clarify the turnover exemption for vehicles with e arly VDECS installations by adding additional descriptive language; and

• Modify the SOON NOx targets to be consistent with the revised fleet average targets.

1. Take out the word “should” The regulation contains the word “should” in many p laces throughout the regulation. Staff believes the word “should” could incorrectly be interpreted toE - 2

mean that many provisions in the regulation are opt ional, rather than mandatory as intended. Therefore, staff is proposing to remo ve all instances of the word “should” throughout the regulation, and will replac e this word with “shall”.

2. Captive attainment area fleet definition Currently in the regulation, a captive attainment a rea fleet (defined in section 2449(c)(6)) is exempt from all the NOx (i.e., turno ver) requirements of the regulation and is instead subject only to the PM (i .e., retrofit) requirements. The regulation was structured this way to recognize tha t such fleets operate only in the areas of the State with the cleanest air (and h ence with the least need for NOx reductions) but still ensure such fleets reduce d their toxic diesel PM emissions. Now that staff is proposing to remove s ection 2449.2 (the PM portion of the regulation), staff is proposing to modify th is definition to designate a captive attainment area fleets a small fleet, regardless of the total horsepower in the fleet. This will still allow such fleets to ha ve reduced compliance costs but still make progress toward reducing their toxic die sel PM emissions.

3. Low-use vehicle definition The off-road regulation implicitly contains two typ es of low-use vehicles – yearby-year low-use and permanent low-use (ARB, 2009a). Therefore, staff is proposing to explicitly identify the two types of l ow-use within the regulation by including language currently available in the guida nce document listed above.

4. Modify post-2007 flexibility engine provision Currently per section 2449(c)(43) of the regulation , if a fleet contains a flexibility (FLEX) engine certified prior to January 1, 2007, t he fleet can ignore the certification value of the FLEX engine, and instead use the emissions charts located in Appendix A of the off-road regulation to determine the appropriate emission factor to use for that engine. However, for post-2007 FLEX engines, the fleet must use the emission standard to which t he engine is certified. Such engines are required per Title 13 Section 2423(d)(5 ) to be clearly labeled as flex engines on the engine label as follows: ” THIS ENGINE COMPLIES WITH CALIFORNIA EMISSION REQUIREMENTS UNDER 13 CCR 2423( d). SELLING OR INSTALLING THIS ENGINE FOR ANY PURPOSE OTHER THA N FOR THE EQUIPMENT FLEXIBILITY PROVISIONS CITED MAY BE A VIO LATION OF STATE LAW SUBJECT TO CIVIL PENALTY ”. However, they are not required to be labeled with the emission standard to which the engine is flexed.
While complying with the regulation’s initial repor ting requirements in 2009, many fleets had trouble determining what standard their post-2007 FLEX engines were flexed to. ARB staff attempted to assist such flee ts and found in many cases that it was difficult or even impossible to determine wh at standard to which the engine was flexed. Even the engine certification executiv e order does not list the information, again simply noting that the listed en gine family is a FLEX engine. As a result, fleets with post-2007 FLEX engines mayspend an inordinate amountE - 3

of time trying to determine the standard, and – eve n after attempting to find the correct standard - may report the standard incorrectly.
Staff is proposing to modify the Post-2007 flexibil ity provisions to no longer require the reporting of the actual emission factor for these engines. Similarly to pre-2007 flex engines, a fleet would ignore that th e engine had been “flexed”, and would instead use the emissions charts located in Appendix A of the off-road regulation to determine the appropriate emission fa ctor to use for that engine.

5. Alternative fuel provisions Currently in section 2449(d)(1) of the regulation, electric vehicles can be incorporated in a fleet (using 0 for the PM and NOxemission factors) and help meet compliance with the regulation’s requirements. However, for some fleets, adding electric vehicles into their off-road fleet will increase the fleet’s total horsepower and could result in (1) bumping the flee t up into the next fleet size category, and/or (2) increasing the amount of vehic le turn over and retrofitting required under the BACT requirements. These conseq uences have discouraged some fleets from using electric vehicles, which was counter to the intent of this provision. Therefore, staff is proposing to remove electric vehicle horsepower from the fleet’s total horsepower calculation, whic h will also result in removing this horsepower from all BACT calculations as well.
Additionally, section 2449(d)(1) allows fleets to replace, repower, and convert diesel vehicles to alternative fuel vehicles as com pliance options in the regulation. However, as implementation of the regu lation began, staff became aware of several inconsistencies within the alterna tive fuel provisions. Therefore, staff is also proposing to modify various provision s in this section to clarify or remove ambiguous parts of the language. Staff does not anticipate that these clarifications or modifications will change the int ent or tighten the stringency of the provisions.
6. Incentivize hybrid off-road vehicles Hybrid electric-diesel off-road excavators and doze rs are now available for purchase by California fleets. This technology sho ws promise in providing criteria pollutant and greenhouse gas emission redu ctions, while also achieving significant fuel economy benefits and fuel cost sav ings. Currently, there are only two manufacturers – Caterpillar and Komatsu – that offer hybrid equipment for sale in California; however, other manufacturers are expected to offer hybrid equipment over the next year. This technology offe rs an opportunity for lower emissions and fuel economy savings, but as the regu lation is currently written, there is very little incentive for fleets to purcha se these hybrid vehicles for compliance. Although these vehicles may have lower NOx and/or PM emission factors, a fleet that purchases hybrid off-road veh icles must still use the same emission factors as an equivalent tier diesel vehic le. Staff is proposing to incentivize the use of hybrid off-road vehicles by allowing fleets to use a lowerE - 4

emission factor(s) for hybrid equipment used in a f leet. In order to use a lower emission factor(s), the equipment must have complet ed in-use emissions testing, and it must be shown through emissions testing thatthe emission factors of the hybrid vehicle are less than the emission factor(s)of an equivalent tier diesel vehicle. The fleet can then apply to the Executive Officer to use the lower emission factor(s).

7. Remove hours in fleet average provision Many stakeholders have commented that they do not l ike the hours in fleet average option in section 2449(d)(2) because in ord er to use this provision, the fleet average calculated is increased by 18 percent . Stakeholders view this as a penalty that prevents them from utilizing the hours in fleet average provisions. The 18 percent increase was included in the regulat ion to account for the fact that newer vehicles operate more than older vehicle s. Based on activity data submitted by fleets to ARB for the purpose of claim ing AB 8 2X Reduced Activity Credit (AB 8 2X, 2009), staff still believes this 1 8 percent factor necessary; newer equipment is still being utilized more than older e quipment (see Figure E-1 below). During the May and June 2010 workshops, s taff polled workshop attendees regarding whether any fleets intended to utilize the hours in fleet average option as written, and no fleets indicated that they intended to do so.

Figure E-1: Average Vehicle Activity by Year in DO ORS

0 200 400 600 800 1000 1200

0 5 10 15 20 25 30 35 40 Equipment Age (Years)Hours/yr 2007

2009

Staff does not believe it is appropriate to remove the 18 percent factor; doing so would inadvertently decrease the stringency of the regulation and forego emission reductions. Therefore, since staff receiv ed feedback at the amendment workshops that this provision will not be used by f leets while the 18 percentE - 5

factor remains in place, to simplify the regulation , staff is proposing to remove this compliance option from the regulation.

8. New fleet requirements Currently in the regulation (section 2449(d)(5)), i f a fleet is new (i.e., either newly formed, or entering the state for the first time), it must be meeting the fleet average targets immediately upon forming, or enteri ng the state. These requirements were developed to assure that 1) fleet s cannot be formed with older Tier 0 equipment discarded by California fleets (i. e., would result in keeping older equipment within the state), and 2) that out-of-sta te fleets can only bring the newest, cleanest vehicles into the state. Addition ally, by requiring new fleets to have cleaner equipment, it assures that in-state fl eets already complying with the regulation would not be put at a competitive disadvantage to newly formed or out-of-state fleets (requires all fleets working in California to have invested in cleaner equipment). Although the intent of this provision is clear, currently it is ambiguous regarding whether or not a new fleet alwa ys has to meet the fleet average targets, or if the new fleet may, after hav ing initially met the fleet average targets, meet the BACT requirements on othe r compliance dates after their first compliance date. Additionally, it does not specify what fleet targets (which compliance year, whether for large, medium, or small fleets) the fleet must meet. Staff is proposing to clarify exactly what f leet averages must be met, and when the fleet can start complying with the BACT re quirements if they want to do
so. Staff is proposing upon purchasing vehicles or brin ging vehicles into the state for the first time, a fleet must meet the following req uirements:

• Large or Medium fleets:A new large or medium fleet must meet the fleet average target for the closest future large fleet compliance date upon initial formation or upon entrance into the state a fter the effective date of the proposed amendments.

• Small fleet:A new small fleet must meet the fleet average target for the closest future small fleet compliance date upon ini tial formation or upon entrance into the state after the effective date of the proposed amendments.
For any size fleet, the new fleet would have the ch oice of meeting either the fleet average target or the BACT requirements for subsequ ent compliance dates.
For example, if a medium fleet enters the state in June 2013, the fleet must be meeting the next future large fleet average target, which is January 1, 2014, immediately upon entering the state. After meeting this target, the fleet would have no other compliance requirements until the first medium fleet compliance date, which is January 1, 2017; for this compliance date, the fleet could meet either the fleet average target, or comply with the BACT requirements.E - 6 9. Adding vehicle requirements The provisions in section 2449(d)(7) have requireme nts for adding vehicles that differ based on whether or not a fleet meets the fl eet averages (i.e., is complying via the fleet average or BACT requirements). The c hart below is an illustration of the adding vehicle provisions for fleets complying via the BACT requirements, and indicates the lowest tier vehicle that can be a dded in each year by a large or medium fleet. The requirements differ depending on the horsepower of the vehicle.
Figure E-2: Current Adding Vehicles Requirements

Horsepower Group 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

25-49 hp 50-74 hp 75-99 hp 100-174 hp 175-299 hp 300-599 hp 600-750 hp
Greater than 750 hp Horsepower Group 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

25-49 hp 50-74 hp 75-99 hp 100-174 hp 175-299 hp 300-599 hp 600-750 hp
Greater than 750 hp 

## T2 T3
T4I T4 T4I T4

The adding vehicle requirements for small fleets or fleets meeting the fleet average targets are not shown, but have a similar l evel of complexity as that demonstrated by the chart above for large or medium fleets meeting BACT. Fleets have indicated that complying with this prov ision will be complicated and confusing if the provisions are not changed. Staff agree, believe fleets are likely to misunderstand the adding vehicle provisions if t hey are not simplified, and do not feel the complexity of this provision is necess ary. Additionally, fleets have expressed uncertainty as to whether the adding vehi cle requirements can or will be enforced prior to U.S. EPA granting authorizatio n for ARB to enforce the performance requirements of the off-road regulation

. Staff is proposing to simplify this provision in th e following ways: Adding Vehicle Requirements - Amend this provision to require that:

• A ban on adding vehicles with Tier 0 engines to an y fleet would begin only after:

o The proposed amendments to the off-road regulation are certified by the Secretary of State; and

o The Administrator of the U.S. EPA grants authoriza tion to enforce the off-road regulation.

• Beginning March 1, 2011, large and medium fleets would be allowed to add only vehicles with Tier 2 or higher engines, ex cept as follows. AE - 7 vehicle with a Tier 1 engine could still be added d uring this time, as long as all the following conditions are met:

o The added vehicle with the Tier 1 engine must have been registered in DOORS before March 1, 2011;

o The fleet adding the vehicle with the Tier 1 engin e must be registered in DOORS; and

o The fleet removing the vehicle with the Tier 1 eng ine must be registered in DOORS.

• Without exception, beginning January 1, 2013, larg e and medium fleets would be allowed to add only vehicles with Tier 2 o r higher engines; beginning January 1, 2016, the restrictions would a pply to small fleets; and

• Beginning January 1, 2018, large and medium fleets would be allowed to add only vehicles with Tier 3 or higher engines; be ginning January 1, 2023, the restrictions would apply to small fleets.
These revised requirements will apply to all fleets regardless of compliance path, and to all horsepower categories, further simplifyi ng this provision.

10. Compliance after the final target date The current language regarding turnover exemptions is ambiguous as to whether or not these exemptions expire after 2020 (Complian ce after the Final Target Date – section 2449(d)(10)). Additionally, with th e delay in fleet requirements and the deletion of the PM portion of the regulatio n (section 2449.2), the dates and some of the requirements listed in this section are no longer applicable.
Staff is proposing to clarify in section 2449(d)(10 ), Compliance after the Final Compliance Date, that turnover and retrofit exempti ons do not expire after the final compliance date. Additionally, staff is prop osing to change the final compliance date for large and medium fleets to Janu ary 1, 2023 (from March 1, 2020), and for small fleets to January 1, 2028 (fro m March 1, 2026). Because staff is proposing to remove the PM requirements of the regulation, there will be no final PM compliance requirements. Therefore, staff is proposing that small fleets be required to meet the same final complianc e requirements as large and medium fleets (i.e., they must meet the final fleetaverage); however, they will not need to meet those requirements until January 1, 20 28, and there are no mandatory turnover requirements proposed for small fleets.

11. Modify the reporting dates Staff is proposing to change the annual reporting d ates in section 2449(g)(2) to make these dates more consisted with the new compli ance deadlines. In the current regulation, all fleets must be in complianc e by March 1 of each compliance year, and then report their fleet inform ation to ARB by April, June, or August, depending on their fleet size. However, be cause staff is proposing to change the yearly compliance date from March 1 to J anuary 1, staff is alsoE - 8

proposing to move the reporting date for all fleets to March 1. This means that instead of having large fleets report in April, med ium fleets in June, and small fleets in August, all fleets would report on March 1 each year they are required to report.
Additionally, since the initial compliance requirem ents for all fleets have been delayed four years, staff is proposing to delay the annual reporting requirements as follows:

• Large fleets must report annually each year from 2 010 to 2024;

• Medium fleets must report annually each year 2016 to 2024; and

• Small fleets must report annually each year from 2 018 to 2029.

12. Modify labeling requirements Staff has received feedback that the labeling provi sions in the regulation (section 2449(f)(2)) would be easier to enforce if the EINs were required on both sides of the vehicle; currently only the right (starboard) s ide of the vehicle is required to be labeled. Therefore, staff is proposing to requi re that fleets label both sides of their affected vehicles.
Staff has also received feedback that the captive a ttainment area fleet provisions, which provide delayed requirements for vehicles tha t only operate in counties that meet federal air quality standards, will be di fficult to enforce if vehicles that fall under this provision have labels that are iden tical to the labels of all other vehicles in the state. Therefore, staff is current ly proposing to change the labeling requirements of these captive attainment a rea vehicles to require the EINs to be green with white letters, instead of red with white letters.
Fleets would be required to label both sides of the vehicle, and modify the labels for captive attainment area vehicles, by January 1, 2013, providing approximately two years to comply.

13. Compliance certification Per section 2449(f)(2) of the regulation, fleets mu st submit, each compliance year, certification by the responsible official tha t the fleet information submitted to ARB is accurate, and that the fleet is in complianc e with all regulatory requirements. Alternatively, the responsible offic ial can designate a representative to sign on his or her behalf. This process is called Compliance Certification. This certification is commonly conf used with the Certificate of Reported Compliance that ARB issues to the fleet on ce the Compliance Certification from the fleet is received by ARB. M any fleets have found this process confusing because “Certificate” and “Certif ication” are such similar words, and because Compliance Certification was notrequired during the initial reporting period, and will only be required going forward once the regulation’s requirements are being enforced. Therefore, staff is proposing to change the name of the Compliance Certification process (that must be submitted by a fleetE - 9

each compliance year) to instead be called the “Res ponsible Official Affirmation of Reporting” process, which is not easily confused with “Certificate”, and to add clarifying language regarding designating a represe ntative that will take the place of a responsible official.

14. Order of turnover When fulfilling the NOx BACT requirements, a fleet must turn over all vehicles without a PM standard (i.e., Tier 0 and Tier 1 “unc ontrolled” vehicles) before the turnover of higher tiered vehicles can be counted toward the BACT requirements (section 2449.1(a)(2)(A)3.). Many fleets are not a ware that Tier 1 engines between 50 and 175 hp are considered “Tier 1 uncont rolled” engines, and therefore would also not be aware that turning over a Tier 1 vehicle with 200 horsepower would not provide credit towards the req uirements if a Tier 1 vehicle with 150 horsepower remained in the fleet. Staff i s concerned that once the regulation is in effect, many fleets may inadverten tly find themselves out of compliance because they kept a Tier 1 “uncontrolled ” vehicle in their fleet and therefore were not able to take credit for turning over other Tier 1 vehicles. To simplify this provision, staff is proposing to revi se this language to require fleets to turn over all Tier 0 and Tier 1 vehicles first, before the turnover of other higher tiered vehicles can be counted toward the BACT requ irements in the fleet.

15. Turnover exemption for vehicles with early VDECS installations Section 2449.1(a)(2)(A)4. allows a fleet to exempt up to 15 percent of its horsepower from later turnover requirements if it retrofits the vehicles with the highest level PM verified diesel emission control s ystem (VDECS) by March 1, 2011. This provision was adopted to encourage earl y retrofitting. Several questions on the applicability of this exemption ha ve arisen that staff believe should be addressed and the language clarified as s hown below. The delay of all turnover and retrofit requirements also provide s an opportunity to encourage additional early VDECS installations by extending t he deadline for fleets to receive this credit.
Staff is proposing to add language to this section to extend the deadline for this provision from March 1, 2011 to January 1, 2013, an d to clarify: 1. If a fleet has more than 15 percent of its vehic le retrofit before January 1, 2013, the fleet may choose any of those vehicles to be counted under this exemption, as long as the 15 percent cap is not exc eeded; and 2. Specify that a fleet must keep the VDECS on the vehicle in order to maintain the exemption.

16. Recalibrating the SOON NOx targets The NOx targets used in the program to achieve supp lemental NOx reductions in the South Coast AQMD (the SOON program) in section 2449.3 begin in 2011,E - 10

and were set up to be more stringent than the fleetaverage targets for the offroad regulation. However, since staff is proposing to delay the regulation start date by four years and to modify the NOx fleet average targets, the SOON targets need to be adjusted accordingly to remain consistent. The current SOON NOx targets are shown in Table E-1 below.

Table E-1: Current SOON NOx Targets Compliance Date: March 1 of Year 25-49

hp 50-74 hp 75-99 hp 100-174

hp 175-299

hp 300-599

hp 600-750

hp >750

hp
2011 5.6 6.2 6.7 6.0 5.4 5.1 5.3 6.4 2014 4.9 5.1 5.2 4.7 2.8 2.7 2.7 4.2 2017 4.2 4.1 3.8 3.4 1.5 1.5 1.5 3.2 2020 3.5 3.2 2.4 2.2 0.9 0.9 0.9 2.6 2023 3.5 3.2 2.4 2.2 0.9 0.9 0.9 2.6
Staff is proposing to make no change to the 2011 SO ON NOx target, but would make the remaining SOON targets more consistent wit h the new fleet average targets proposed by staff and shown in Appendix A o f this staff report. The proposed SOON targets in Table E-2 below have incre ased in the earlier years, and decreased in the later years of the regulation.

Table E-2: Proposed SOON NOx Targets Compliance Date: January 1 of Year 25-49

hp 50-74

hp 75-99

hp 100- 174

hp 175-299

hp 300- 599

hp 600- 750

hp >750

hp
2011 5.6 6.2 6.7 6.0 5.4 5.1 5.3 6.4 2014 5.8 6.5 7.1 6.4 3.9 3.7 3.7 5.3 2017 5.0 5.4 5.5 4.9 2.2 2.2 2.2 4.3 2020 4.1 4.2 3.4 3.1 1.4 1.3 1.4 3.4 2023 3.3 3.0 1.4 1.3 0.7 0.7 0.7 2.7
B. Proposed Minor Modifications to the LSI Fleet Re gulation The following sections describe in more detail the proposed minor amendments to the LSI fleet regulation.

1. Add an “Agricultural Operations” definition The LSI fleet regulation does not define “Agricultu ral Operations”, only “Agricultural Crop Preparation Services.” The latt er definition is a subset of the former and does not provide sufficient information. It also doesn’t discuss how equipment used in both agricultural operations and non-agricultural operations should be treated. Staff proposes to add an Agricu ltural Operations definition, along with modifications to the FAEL definition, toclarify that: (1) LSI equipment used in agricultural operations is not subject to t he FAEL standards, (2) nurseryE - 11

and forestry operations are considered agricultural operations, and (3) more than half of the annual operating hours of a mixed use p iece of equipment must be in agricultural operations for the vehicle to be consi dered engaged in agricultural operations.
2. Clarify the “Airport Ground Support Equipment”

definition The LSI fleet regulation defines “Airport Ground Su pport Equipment” or “GSE” as any large spark-ignition engine or electric-powered equipment contained in the 24 categories of equipment included in section B.3 of Appendix 2 of the South Coast Ground Support Equipment Memorandum of Unders tanding, dated November 27, 2002. Two of these categories are “ca rts” and “other,” which, for the purposes of electric-powered equipment, can be interpreted very broadly. The intent of the GSE definition is to allow operat ors to include electric equipment in their FAEL standards calculations onlyas long as the equipment performs the work equivalent of an LSI engine-powered piece of equipment. Staff proposes to add clarifying language to the de finition to reflect this intent.

3. Clarify the “Baseline Inventory” definition The LSI fleet regulation requires operators to cond uct a baseline inventory. The Baseline Inventory definition states that this inve ntory should reflect all equipment owned at the time of the inventory. The intent of the regulation was that the baseline inventory should reflect all operated equipment subject to the FAEL standards. Staff proposes to modify the Basel ine Inventory definition to reflect this intent.

4. Add a “Boneyard” definition Boneyards, which are repositories for surplus or en d of service LSI equipment, contain entire fleets of retired equipment awaiting scrap or reuse by other entities. The LSI fleet regulation does not have a mechanism for dealing with decommissioned fleets. The ARB intends for these f leets to be excluded from FAEL standards calculations. Staff proposes to add a “boneyard” definition and modify the FAEL definition to exclude boneyard flee ts.

5. Modify the “Fleet Average Emission Level” definition
There are two issues that the ARB wishes to addressin this definition. First, the definition states that electric-powered equipment o f less than 19kW shall be allowed to be included in the FAEL calculation if t he operator can demonstrate it performs the work equivalent of LSI equipment. By definition, LSI engines have a power of 19kW or greater, so the intent of this l anguage was that electric vehicles with a power rating of less than 19kW woul d have to demonstrate that they performed the work equivalent of the same cate gory of LSI equipment prior to being allowed into FAEL standard calculations. However, electric forklifts andE - 12

GSE that do the work of a typical forklift or piece of GSE typically are rated at less than 19kW.
Second, the definition does not describe how experi mental equipment, boneyard equipment, retired equipment, and in-field or agric ultural operations equipment should be treated in FAEL standard calculations. A RB committed, during the LSI fleet regulation rulemaking, to exempt in field agr icultural forklifts. It is also ARB’s intent that boneyard, experimental, and retired equipment be excluded from FAEL standard calculations.
Staff proposes to modify the definition to exclude agricultural operations, boneyard, experimental, and retired equipment from the FAEL standards calculations. Staff further proposes to allow electric equipment of less than 19 kW to be included in FAEL standards calculations as long as the equipment performs, with similar efficiency, the same functio n as an LSI engine-powered piece of equipment subject to the standards. Final ly, staff proposes to clarify that the default emission rate for uncontrolled LSI equi pment is 12.0 g/bhp-hr HC+NOx.
6. Add an “In-field Equipment” definition As mentioned above, the ARB committed to exempt agr icultural forklifts used primarily in field, but this commitment was never c odified. The ARB is now proposing to modify the fleet average emission leve l definition to exclude in-field LSI equipment, but must define “in-field.” Staff p roposes to add a definition for “in-field equipment.”

7. Clarify the “Operator” definition This definition states that “operator” includes a p erson whose usual and customary business is the rental or leasing of LSI engine equipment for any equipment not solely possessed or used for rental o r leasing. The intent of the regulation was to allow dealers some de minimis lev el of use of their rental and used equipment fleet vehicles without triggering th e FAEL standard requirements. As it currently stands, a dealer cou ld become an operator if they use any four vehicles, regardless of duration of us age, for their own purposes. Staff proposes to modify the “operator” definition to stipulate a de minimis usage level that reflects this intent.

8. Add a “Retired Equipment” definition Operators may retire LSI equipment as part of their compliance strategy. This retired equipment often remains on site awaiting sa le or scrap. Through Mail Out #MSC 10-08, the ARB has established procedures for designating equipment as retired, but needs to include a retired equipment d efinition in the text of the regulation. Staff proposes to add a “retired equip ment” definition.E - 13 9. Modify the record-keeping requirements The LSI fleet regulation requires operators to reco rd identifying and emissions information for each piece of LSI equipment in thei r fleet. It also requires them to obtain product delivery tickets or a like surrogate , if obtainable, stipulating that the fuel they are using meets motor vehicle grade p ropane specifications. The ARB added this second requirement in an attempt to force operators to put pressure on their fuel suppliers to provide unconta minated and low-olefin (propene) content motor vehicle grade fuel. However , operators have been unable to obtain this documentation from their fuel suppliers. Staff proposes to remove the fuel quality record-keeping requirement. Staff also proposes to clarify the ARB’s intent that the record-keeping requiremen t apply to each piece of LSI equipment.

C. References ARB, 2009a. California Air Resources Board. In-Use Off-Road Diesel Vehicle Regulation Frequently Asked Questions: Low-Use Prov isions. California Air Resources Board, April, 2009. http://www.arb.ca.gov/msprog/ordiesel/faq/faqlowuse .pdf