1 State of California

AIR RESOURCES BOARD

Notice of Public Availability of Modified Text and Supporting Documents and Information

PUBLIC HEARING TO CONSIDER THE ADOPTION OF NEW EMIS SION STANDARDS, FLEET REQUIREMENTS, AND TEST PROCEDURES FOR

FORKLIFTS AND OTHER INDUSTRIAL EQUIPMENT

Public Hearing Date: April 20, 2006 Postponed to: May 25, 2006 Public Availability Date: December 1, 2006 Deadline for Public Comment: December 18, 2006

At its public hearing on May 25, 2006, the Air Reso urces Board (ARB or Board) approved amendments and adoptions to title 13, Cali fornia Code of Regulations (CCR), and to several documents incorporated by reference therein. The regulations approved for amendment are sections 2430, 2431, 2433, 2434, and 2438. The regulations approved for adoption are sections 2775, 2775.1, 27 75.2, 2780, 2781, 2782, 2783, 2784, 2785, 2786, 2787, 2788, and 2789.

The approved documents incorporated by reference ar e: 1) the amendment of incorporated “California Exhaust Emission Standards and Test Procedures for New 2001 and Later Off-Road Large Spark-Ignition Engine s,” Parts I and II; 2) the adoption of incorporated “California Exhaust Emission Standa rds and Test Procedures for New 2007 through 2009 Model-Year Off-Road Large Spark-I gnition Engines;” 3) the adoption of incorporated “California Exhaust Emissi on Standards and Test Procedures for New 2007 and Later Model-Year Off-Road Large Sp ark-Ignition Engines;” and 4) the adoption of incorporated “California Exhaust and Em ission Standards and Test

Procedures for New 2010 and Later Model-Year Off-Ro ad Large Spark-Ignition Engines.”

The approved regulations are designed to reduce the ozone-forming emissions of hydrocarbons and oxides of nitrogen (HC + NOx) from new and in-use forklifts and other industrial equipment. The regulations meet a commitment made in the 2003 State and Federal Strategy for the State Imple mentation Plan, approved by the Board on October 23, 2003.

The Board’s Action

At the hearing, the Board adopted Resolution 06-11, approving the amended and adopted regulations with modifications (Attachment B of the Resolution). In the Resolution, the Board directed the Executive Office r to incorporate the approved modifications into the proposed regulatory text, wi th such other conforming modifications as may be appropriate, and to make th e modified text available for a supplemental comment period.2

Modified Text Being Made Available

Subsequent to the hearing, staff has identified oth er conforming modifications that are needed to provide flexibility to fleet operators an d to clarify the requirements of the regulations. The Board’s approved modified text, i ncluding staff’s subsequent modifications, is appended to this notice as Attach ment 1. Staff also identified additional references that support the regulations. By this notice, the modified text, the additional references, and Resolution 06-11 are bei ng made available for public comment prior to the final action by the Board’s Ex ecutive Officer. All of these documents are available online for public inspectio n at ARB’s Internet website for this rulemaking at http://www.arb.ca.gov/regact/lore2006/lore2006.htm . Copies of these documents may be obtained from the Board’s Public I nformation Office by calling (916) 322-2990 or by visiting the 1 st floor Visitors and Environmental Services Center, 1001 I Street, Sacramento, California 95814. They may also be obtained from Ms. Kathy Leuterio at (916) 322-1731, or by email a t kleuteri@arb.ca.gov

.

Summary of Proposed Modifications

The following summarizes the proposed substantive m odifications and the rationale for making them. The section numbers and paragraphs ar e referenced as renumbered in

the modified text.

Title 13, California Code of Regulations, § 2430. A pplicability (a)(1) The engine size to which the proposal applies is cl arified. The existing California LSI engine regulations define the engine as one tha t produces a power of 25 horsepower or greater ( ≥ ), and the emission standards are stated in terms o f grams per brake horsepower-hour (g/bhp-hr). In contrast, the U.S. Environmental Protection Agency (U.S. EPA) uses kilowatt as the unit of powe r for these same engines, and the federal standards are expressed in terms of grams p er kilowatt-hour (g/kW-hr). Additionally, the newly amended California small of f-road engine regulations apply to engines that produce a gross power at or below ( ≤ ) 19 kW. This results in a temporary overlap in the California regulatory definition of large versus small off-road engines (e.g., engines with displacement equal to 19 kW can either be certified under small off-road engines or LSI regulations). The modifica tions provide consistency with the federal program definition of engine size and addre ss the overlap by clarifying that engines certifying in California at 19 kW [25 horse power] would certify as small off-road engines.

(a)(3) The reference to the U.S. EPA’s Off-Highway regulat ions is removed as the reference to U.S. EPA’s program could leave gaps in regulatory coverage and uncertainty to interested parties regarding how veh icles are classified. ARB staff’s modifications to ARB’s Off-Highway Recreational Veh icles regulations presented at the July 20, 2006 Public Hearing provides additional cl arification as to how these vehicles

are classified.3

Title 13, California Code of Regulations, § 2431. D efinitions (a)(19) A definition is added for “family emission level or FEL.” This definition prescribes the HC+NOx and CO emission level numbers to be used in the alternative

emissions certification formula contained in sectio n 2433 (b)(2).

(a)(28) The definition is amended to address kilowatts as a unit of power as described for the change made in section 2430(a)(1).

Title 13, California Code of Regulations, § 2433 Em ission Standards and Test Procedures – Off-Road Large Spark-ignition Engines (b ) (1) For clarification, this section is divided into sub paragraphs (b)(1)(A) and (b)(1)(B). Subparagraph (b)(1)(A) contains the required exhaus t emission standards while (b)(1)(B) contains the optional exhaust emission st andards. Additionally, a correction is made to the first row of the table in subparagraph (b)(1)(A) to show that the exhaust emission standards in that row are for engines with displacement of equal to or less than one liter. The symbol for “equal to” was inad vertently omitted from the table. Errors in the standards table and the optional stan dards table for the carbon monoxide standard for model years 2007 through 2009 and for model year 2010 and subsequent

are corrected. The carbon monoxide standard has be en harmonized with the federal

standard and the alternative certification formula contained in subparagraph (b)(2).

(b)(2) An optional certification formula is added to be c onsistent with U.S. EPA. The term “family emission level” is added to clarify th at the HC+NOx and CO numbers used

in the formula do not have to be actual test result s. This term is more consistent with U.S. EPA’s intent to provide engine manufacturers a nother engine certification element.

(b)(4)(A) A clarification to the evaporative emissions stand ards is added to apply the requirements to engines over one liter, consistent with the federal program.

(b)(4)(D) An option to use design-based certification for th e evaporative emission

standards is added to be consistent with the federa l program.

(c) The references for the incorporated test procedures for determining certification and compliance with the standards for exhaust emissions are corrected and added.

Title 13, California Code of Regulations, § 2438. I n-Use Compliance Program (e)(7)(A) The term “STD” in the credit calculation is redefin ed by adding the phrase “or family emission level” after the phrase “the emissi on standard.”

Incorporated “California Exhaust Emission Standards and Test Procedures for New 2001 through 2006 Off-Road Large Spark-Ignition Engines, Part I”

A second reference is added to reflect that there i s now a second document prescribing exhaust emission standards and test procedures for small off-road engines (2005 and later). The last amended date of the first documen t (1995-2004) is corrected.4

Incorporated “California Exhaust and Evaporative Em ission Standards and Test Procedures for New 2007 through 2009 Off-Road Large Spark-ignition Engines” (40 CFR, Part 1048) The caption for the incorporated standards and test procedures for model years 2007 through 2009 is corrected to reference the applicab le engine model years.

§1048.101 What exhaust emission standards must my engines meet? (a)(2) The portion of the emission standards table prese nted in Title 13, California Code of Regulations, Article 4.5, section 2433 (b)( 1)(A) for 2007 through 2009 model year engines is reiterated here. This reflects ARB practice of including standards in test procedures and identifies these as California stand ards. The standards for LSI engines with a total displacement of 1000 cc or less are al so reiterated.

(e) The subsection numbering scheme is changed for cons istency.

(f) Language is changed to clarify that smaller engines within the LSI category (at or less than 1.0 liter displacement) must certify unde r the standards for LSI engines, and not the standards for small off-road engines. The applicability section states that small off-road engines are those with a brake horsepower of 19 kW or less; those engines must certify to the applicable standards in Title 1 3, California Code of Regulations, Chapter 9, Article 1.

§1048.140 What are the provisions for certifying B lue Sky Series engines? The section on Blue Sky Series engines and Blue Sky standards is replaced by a section on optional lower-emission standards (OLES) engines. This conforms to the establishment of OLES engines in the 2007-2009 time frame in Title 13, California Code of Regulations, § 2433 Emission Standards and Test Procedures – Off-Road Large Spark-ignition Engines.

§1048.401 What testing requirements apply to my en gines that have gone into

service? (b)(1) The change proposed for this section is deleted. T his section was originally replaced in error because the reference to number o f engines was believed to be

related to the small business definition. In actua lity, the number is related to production line testing and should be consistent with the U.S. EPA number.

§1048.615 What are the provisions for exempting en gines designed for lawn and garden applications? This section is deleted. The U.S. EPA provides man ufacturers an option to certify engines with a total displacement of 1000 cc or les s as small off-road engines in section 1048.101(f) and this section provided assoc iated requirements. However, ARB staff has modified section 1048.101(f) to stipulate that small engines are now considered to be LSI engines unless they have a bra ke horsepower of 19 kW or less. Thus, there is no need for the requirements contain ed in section 1048.615.5

Incorporated “California Exhaust and Evaporative Em ission Standards and Test Procedures for New 2010 and Later Off-Road Large Sp ark-ignition Engines” §1048.101 What exhaust emission standards must my engines meet? (a)(2) The portion of the emission standards table prese nted in Title 13, California Code of Regulations, Article 4.5, section 2433 (b)( 1)(A) for 2010 and later model year engines is reiterated here in a format consistent w ith section 1048.101 (a)(2) in the Incorporated “California Exhaust and Evaporative Em ission Standards and Test Procedures for New 2007 through 2009 Off-Road Large Spark-ignition Engines” (40 CFR, Part 1048). The standards for LSI engines with a total displacement of

1000 cc or less are also reiterated.

(e) The subsection numbering scheme is changed for cons istency.

(f) Language is changed to clarify that smaller engines within the LSI category (at or less than 1.0 liter displacement) must certify unde r the standards for LSI engines, and not the standards for small off-road engines. The applicability section states that small off-road engines are those with a brake horsepower of 19 kW or less; those engines must certify to the applicable standards in Title 1 3, California Code of Regulations, Chapter 9, Article 1.

§1048.120 What emission-related warranty requireme nts apply to me? The formula for determining the dollar value of a h igh-cost part is corrected by subscripting the “n” in “Limitn” and the “n-2” in t he term “CPI n-2.”

§1048.140 What are the provisions for certifying B lue Sky Series engines? The section on Blue Sky Series engines and Blue Sky standards is replaced by a section on optional lower-emission standards (OLES) engines. This conforms to the establishment of OLES engines in the 2010 and later time frame in Title 13, California Code of Regulations, § 2433 Emission Standards and Test Procedures – Off-Road Large Spark-ignition Engines.

§1048.401 What testing requirements apply to my en gines that have gone into

service? (b)(1) The change proposed for this section is deleted. T his section was originally replaced in error because the reference to number o f engines was believed to be

related to the small business definition. In actua lity, the number is related to production line testing and should be consistent with the U.S. EPA number.

§1048.615 What are the provisions for exempting en gines designed for lawn and garden applications? This section is deleted. The U.S. EPA provides man ufacturers an option to certify engines with a total displacement of 1000 cc or les s as small off-road engines in section 1048.101(f) and this section provided assoc iated requirements. However, ARB staff has modified section 1048.101(f) to stipulate that small engines are now considered to be LSI engines unless they have a bra ke horsepower of 19 kW or less. Thus, there is no need for the requirements contain ed in section 1048.615.6

Title 13, California Code of Regulations, § 2775(d) Definitions

“Agricultural Crop Preparation Services” The Agricultural Crop Preparation Services definiti on is clarified by defining the word “dehydrators” and the phrase “nut hullers and proce ssors,” and by modifying the phrase

“and other related activities” to read “and other related activities that fall within the

United States Census Bureau NAICS definition for In dustry 115114 – Postharvest Crop

Activities.” The definition further clarifies “and other related activities” by excluding manufacturing activities such as the freeze drying of fruits and vegetables, the slicing and dicing of garlic or onions, the flaking of pota to products, and the making of bouillon, noodle mixes, rice mixes, soup mixes, sauce mixes, and salad dressing mixes.

These clarifications and modifications respond to i nquiries from affected businesses about the intent of the word “processors” in the ph rase “nut hullers and processors,” the intent of the word “dehydrators,” and the intent of the phrase “and other related activities.” They also reflect our intent that the “Agricultural Crop Preparation Services”

definition follow the United States Census Bureau N AICS (North American Industry Classification System) definition for “Postharvest Crop Activities” as closely as possible.

“Airport Ground Support Equipment” Language is added to the definition to clarify that some of the categories of equipment to be included in the fleet average calculations ar e vehicles designed for on-road use, but dedicated to GSE operations and not licensed fo r on-road use. This definition is based on the 24 categories of equipment included in section B.3. of Appendix 2 of the South Coast Ground Support Equipment (GSE) Memorand um of Understanding, dated November 27, 2002.

“Dehydrators” A definition is added to clarify the use of the wor d “dehydrators” in the “Agricultural Crop Preparation Services” definition. The definition c losely follows the intent of “sun drying”

in the United States Census Bureau NAICS definition for Industry 115114 – Postharvest Crop Activities, but additionally includes the arti ficially drying and dehydrating portion of the manufacturing processes included in the NAICS d efinition for Industry 311423 – Food Processing.

“Fleet Average Emission Level” The phrase “or verification level (absolute emissio ns)” is appended to the phrase

“emissions certification standard” to reflect that the operator’s fleet average emission level calculations include in-use equipment with ve rified retrofit emissions control systems. Verified retrofits are one of the tools f or compliance with the fleet average emission level requirements, and definitions for “r etrofit,” “verification,” and “verification level” were all included in section 2775(d). Addit ionally, section 2772(e)(1)(A) was originally included to provide for extensions to th e fleet average compliance dates if retrofit emission control systems are not verified or commercially available.7

The gram per kilowatt-hour (g/kW-hr) equivalent emi ssions are added to the definition. This is consistent with our effort to provide the g /kW-hr conversion in all places where emissions have been listed in grams per brake horse power-hour.

Additional language is added to the definition to c larify that fleet operators may exclude electric-powered equipment from their fleet average emission level calculations. This allows operators the flexibility to apply electric equipment in excess of that needed to comply with the LSI fleet average emission level ca lculations to be applied to non-LSI fleet average requirements as are being proposed in the off-road compression ignition engine rulemaking.

“Label” The label definition requires that new engine label s specify the emission standard to which the new engine certified. Modifications to t he definition clarify that engines with retrofit emission control systems are required to h ave a label specifying the verification level (absolute emissions) to which the engine is v erified.

“Military Tactical Support Equipment” The Military Tactical Support Equipment definition is modified to be consistent with the same definition in other Board regulations, in part icular, adding the phrase “or its allies.” This modification responds to requests from militar y representatives to be consistent in

our definition.

“Nut Hullers and Processors” A definition is added to clarify the use of the wor d “processors” in the “Agricultural Crop Preparation Services” definition. The definition d istinguishes the activities that fall

within the United States Census Bureau NAICS defini tion for Industry 115114 – Postharvest Crop Activities from those which do not

.

“Verification Level” The gram per kilowatt-hour (g/kW-hr) equivalent abs olute emission level has been

added to Table 1. This is consistent with our effo rt to provide the g/kW-hr conversion in all places where emissions have been listed in gram s per brake horsepower-hour.

“Zero Emission Vehicle” or “ZEV” The definition is deleted as it is no longer necess ary because the requirements in section 2775.1(b) for a specified portion of ground support equipment to be ZEV equipment has been deleted.

Title 13, California Code of Regulations, § 2775.1. Standards

(a) Language has been added to clarify that operators m ust first establish their fleet size before identifying exceptions and subsequent f leet average emission level requirements. This language conforms to the intent of the original language but more clearly spells out for operators that they may not exclude equipment before determining

fleet size.8

(a)(2) The fleet average emission standards are based on the assumption that all equipment procured by dealers or operators in 2004 would have controlled engines. This was not the case as model year 2004 equipment contained in many instances uncontrolled engines produced in 2003. To alleviat e the economic burden on dealers who would otherwise be responsible for addressing t his equipment, new language has been added to exempt uncontrolled 2004 rental equip ment from the operator fleet average calculations for an additional year and equ ipment leased prior to May 25, 2006.

(b) Requirements related to requiring a specified perce ntage of ground support equipment at airports in the South Coast Basin to b e zero emission equipment has

been deleted because air carriers have demonstrated that they have already attained the specified percentage of electric equipment and have assured the Board that factors operating in the south coast air basin will act to increase the electric component over

time.

(c)(3) The exclusion for rental and leased forklifts in a gricultural crop preparation services fleets now provides an additional year for equipment with uncontrolled 2003-2004 model year engines. The original exclusi on required all rental and leased forklifts to be controlled to a 3.0 gram per brake horsepower-hour emission standard or better on or after January 1, 2009. The extension of the exclusion takes into account

the lifetime of the rental and leased forklifts wit h uncontrolled 2003-2004 model year engines. These leased forklifts are now excluded f rom the 3.0 gram emission standard for the life of the lease or until January 1, 2010 as long as the lease agreement was initiated before the Board hearing. These rental f orklifts are now excluded from the 3.0 gram emission standard until January 1, 2010.

Title 13, California Code of Regulations, § 2775.2. Compliance Requirements for Fleet Operators

(a) Language is changed in this section to clarify th at only medium and large facilities (those subject to the requirements in 2775.1(a)) ar e required to conduct a baseline inventory.

(b) Language is changed in this section to clarify th at only medium and large facilities (those subject to the requirements in 2775.1(a)) ar e required to keep records. The record keeping requirement is clarified to state th at operators are only required to obtain written statements (bills of lading?) from the fuel supplier indicating that the fuel meets state and federal law (i.e., the fuel meets motor v ehicle grade), if such statements (product delivery tickets or receipts) are availabl e.

(d) The effective date of the requirements for agricult ural crop preparation services fleets is delayed by 18 months to reflect modificat ions made in the requirements themselves. The reference to section 2775.1(d) is corrected to read 2775.1(c).9

Title 13, California Code of Regulations, § 2783. Emissions Reduction Testing Requirements

(e) Modifications are made to the test cycle language t o correct: (1) the title of the reference containing the steady-state test procedur e, (2) the location of the reference, and (3) the reference adoption date.

(k) Modifications are made to correct the reference.

Title 13, California Code of Regulations, § 2786. Other Requirements (c)(1) A correction is made to the retrofit emission contr ol group name within the system labeling requirement.

Title 13, California Code of Regulations, § 2789. In-Use Compliance Requirements (e)(2) A correction is made to the reference adoption date

.

Supporting Documents and Information

In accordance with section 11347.1 of the Governmen t Code, staff has added to the rulemaking record the following documents, which ar e incorporated by reference in the regulation:

Almond Hullers and Processors Association flowchart of tree nut processing (California Almond Hullers & Processors Association , Huller/Sheller Good Manufacturing Practices and Sanitation Manual; from Almond Hullers and Processors Association website copyrighted 2003)

Discussion of almond processing (United States Envi ronmental Protection Agency, AP 42, Fifth Edition, Volume 1, Chapter 9: Food and Agricultural Industries; January 1995)

United States Census Bureau NAICS codes for post ha rvest crop activities and food processing (2002 NAICS Definitions 115114 and 31142 3; May 5, 2003)

Comments and Subsequent Action

In accordance with section 11346.8 of the Governmen t Code, the Board directed the Executive Officer to amend sections 2430, 2433, and 2434, and adopt sections 2775,
2775.1, 2775.2, 2780, 2781, 2782, 2783 2784, 2785, 2786, 2787, 2788, and 2789, title 13, CCR, and the amendments and adoptions of docume nts incorporated therein, after making the modified regulatory language available t o the public for a supplemental written comment period of at least 15 days. The Bo ard further provided that the

Executive Officer shall consider such written comme nts as may be submitted during this period, shall make such modifications as may be app ropriate in light of comments10

received, and shall present the regulations to the Board for further consideration if she

determines that this is warranted.

Written comments on the modifications approved by t he Board in Resolution 05-61 may be submitted by postal mail, electronic mail, or fa csimile as follows:

Postal Mail is to be sent to:

Clerk of the Board

Air Resources Board 1001 “I” Street, 23 rd Floor Sacramento, California 95814

Electronic submittal: http://www.arb.ca.gov/lispub/ comm/bclist.php

Facsimile submissions are to be transmitted to: (9 16) 322-3928

In order to be considered by the Executive Officer, comments must be directed to the

ARB in one of the three forms described above and r eceived by the ARB by 5:00 p.m. on the deadline date for public comment listed at t he beginning of this notice. Only comments relating to the above-described modificati ons to the text of the regulations and the additional supporting documents and informa tion will be considered by the

Executive Officer.

Attachments