California’s Proposed Strategy 

Reduce Emissions from On-Ro

Diesel Vehicles

California Environmental Protection Agency

Air Resources Board

December 11, 2008
Today’s Presentation

• Introduction and overview• Truck and Bus Regulation • Truck and Trailer Efficiency Regulation• Integration of the proposed regulations• Availability of incentive funding • Recap and closing
We Cannot Afford to Wait to Clean

Exhaust Emissions

• Largest source of emissions• State Implementation Plan (SIP)

– Majority of reductions from trucks

• Cancer risk from diesel PM is high• Thousands of lives lost each year• No equivalent federal programs• California leadership is critical
We Cannot Afford to Wait to Redu

Greenhouse Gas Emissions

• Discrete early action measure in Scoping • Progress towards meeting AB32 commitm• Demonstrates California’s leadership• Substantial cost savings• Benefits environment and economy
Timing is Challenging but the Need is 

• Cost of inaction outweighs costs of clean• Actions not required for several years• Significant flexibility provided• Minimizes costs and meets air quality goa• Minimizes potential overlap of costs
Staff’s Proposals

• Shaped by input from stakeholders• Provisions to reduce costs • Savings from improved efficiency• Incentives• No barriers to technology
Proposed Truck and Bus Regula
Truck and Bus Regulation Overv

• Need for emissions reductions• Proposed requirements• Emissions benefits and costs• Alternatives considered
Stationa

and Oth

3%

Locomotives 

5%

Off-Road

37%

Other OnRoad

2%

Trucks and 

Buses, 28%

Off-Road, 22%

Locomotives, 

5%

Marine, 6%

Other OnRoad, 25%

Stationary 

and Other, 

15%

Significant Contributors to Statew

Emissions: 2005

NOx Diesel P
Diesel Particulate Matter Expos

• Trucks and buses largest source of diese• 70% of known cancer risk from all air toxi• Diesel Risk Reduction Plan adopted in 20

– Risk reduction goals by 2010 and 2020
Area Designations for National Amb

Air Quality Standards for Ozone and P

8-Hour Ozone PM2.5 Annua

Unclassified/Attainment

Nonattainment

15 areas violate the standard

2 areathe sta
State Implementation Plan

• Approved in September 2007• Trucks largest component of SIP

– Most significant measure

• Critical to attaining ozone and PM standa

– South Coast: 2014 and 2023– San Joaquin Valley: 2014, 2017, and 2023
Significant Health Impacts from Truck

Buses (2008)

Numbe

Case

Effect

Restricted activity days 2,600,Work loss days 450,0

71,00

Asthma related and lower respiratory symptomsPremature deaths 4,50
Truck and Bus Regulation: 

Proposed Requirements
Proposed Truck and Bus Regula

• Diesel vehicles operating in California

– Interstate, intrastate, international, and other

• Vehicles over 14,000 GVWR and shuttle • Any person, business, or government age

who owns, leases, rents, or sells a vehiclCalifornia

• Excludes certain vehicles
Diverse Vehicle Types Covere

Water Truck Hay Squeeze Tow Tr

Fuel Tank Truck Passenge

Concrete Mixer

Reefer Van

Dump Truck Drill 
Overview of Proposed Regulat

• Phase-in most PM requirements 2011-20

– No action if not available or not safe

• Phase-in NOx requirements 2013-2023

– New vehicles never required

• Certain special provisions• Three compliance options
Compliance Options

• Best available control technology (BACT) 

schedule

• Percentage limits• Fleet averaging
Only Older Vehicles Replace

2023 142022 142021 1420202019 No replacement requirements 2018

2017 11-122016 12-132015 21+2014 12-142013 14 -19

Engine Age

To Be Replaced

(Years)

Calendar

Year
Accelerated Replacement Not Requir

Every Truck

No Requirement

64%

PM Retrofits

23%

Accelerated 

Replacements

13%

Number of Different Trucks Operating in California in 2008 = 941
How Emissions Change with Eng

Model Year

22.0

12.0

7.0

1.6

05

10152025

Pre-2004 2004-2006 2007-2009 2010

Engine Model Year

NOx Emission Factors (g/mile)

3.36

1.25

0.81

0.01.02.03.04.0

Pre-1991 1991-1993 1994-200

Engine Model Year

PM Emission Factors (g/mile)

NOx 

Note: For Heavy Heavy-Duty Vehicles (GVWR >33,000 lbs)
Percentage of California Trucks

by Fleet Size

1 Truck

32%

2 Trucks

10%

3 Trucks

4 Trucks 6%

4%

21 ~ 50 Trucks

8%

51 ~ 100 Trucks

4%

> 100 Trucks

16%

6 ~ 10 Trucks

9% 5 Trucks

3%

11 ~ 20 Trucks

8%

2006 DMV DATA: Heavy Heavy-Duty & Medium Heavy-Duty vehic
Optional Small Fleet Provision

• Additional time for fleets up to 3 vehicles• No clean up requirements before 2013

– First vehicle with 2004 model year engine an

until 2018

• Remaining vehicles upgraded 2014-2016• Cleanest engines by 2023
Provisions to Delay Replacemen

Requirements

• Unique vehicles• Cab-over engine truck tractors• Early credit for filters• Lower usage vehicles• Attainment area operation

AttaCou

Attainment Area Counties - Alpine, Colusa, Del Norte, Glenn, Humboldt, LaMendocino, Modoc, Monterey, Plumas, San Benito, San Luis Obispo, Santa Santa Cruz, Shasta, Sierra, Siskiyou, Trinity, Tehama, and Yuba
Other Key Provisions

• Very low use vehicles exempt from clean• Credits for hybrid and alternative fueled v• Retrofit safety• Manufacturer delays• Three day pass for out-of-state trucks
Agricultural Vehicle Provision

• Used exclusively in agricultural operation• Exempt below mileage thresholds

– 15,000/20,000/25,000 annual miles until 2017– 10,000 miles starting 2017

• Specialty farm vehicles exempt until 2023• All trucks cleaned up by 2023
Screening Evaluation of Localized 

• Analysis of 

processing 

• Potential fo

localized ris

– Dependen

uncontrollactivity

• Further ana

and report tBoard

Risk greater than 10 in 1 million

Roadway

First Processor 280 meters

Assumes 80 trips per day
School Buses

• PM requirements necessary

– Pre-1977 bus replacements

• $200 million in Lower-Emission School B

Program funding

– Sufficient for 95% of costs

• Staff will monitor implementation
Technology Already Exists

• PM control technology

– New engines equipped with filters nationwide– Thousands of retrofit filters in use

• NOx control technology

– 2010 model year engines on schedule– SCR retrofit systems being demonstrated

• Sufficient new and used trucks available
Changes to Existing Regulatio

• Improve enforceability and clarity• Includes: 

– Drayage truck regulation– Public fleet and utility regulation– Off-road vehicle regulation– Cargo handling regulation– Idling provisions– Portable Engine Registration Program– Portable engine regulation
Truck and Bus Regulation:

Emissions Benefits and Cos
Updated Truck and Bus Emissi

• Builds on EMFAC2007• Reflects multiple new data sources• More detailed truck and bus categories• Category-specific population, age distribu

and mileage accrual
Statewide NOx Emissions

0

100200300400500600700800

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

NOx Emissions (tpd) Without Regulation With Proposed Regulation 124 tpd

98 tpd
Statewide PM2.5 Emissions

05

1015202530

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

PM2.5 Emissions (tpd) Without Regulat

With Proposed

Regulation

12.8 tpd

5.2 tp
Overall Health Benefits

• Provides major health benefits

– About 9,400 fewer premature deaths– 150,000 fewer lower respiratory and asthma-

symptoms

– 950,000 fewer lost work days

• Value estimated to range from $48 to $68 • Meets combined PM and NOx SIP target

years

• No other measures can provide same be
Statewide Costs

• Estimate at $5.5 billion (2010-2025)

– $4.5 billion for California registered vehicles– $1.0 billion for out-of-state vehicles

• Cost effective compared to other regulati
Vehicle Prices Vary by Age

Conventional Truck Without Sleepe

0

20406080

100120

0 1 2 3 4 5 6 7 8 9 10 11 12 13 

Vehicle Age

Price (thousands of $)
PM Retrofit Costs

1994 and newer $12,000*Pre-1994 $15,000PM Retrofits Installed Cost

* $11,000 for medium heavy-duty vehicles

Add retrofit picture xxx

Wall Flow Filter 
Potential Cumulative Costs

• Evaluated impact with other rules

– Transportation Refrigeration Units– Off-Road Regulation

• Evaluated several individual fleets• Impacts relatively small• Little overlap with Truck GHG regulation• Lowered costs

– Sweepers– Cranes
Impact on California’s Economy is S

• California is a $3.1 trillion economy

– Could reduce GDP by 0.014 percent– May slow job growth in some sectors, increas

• Impact on consumers not noticeable

– $0.01-$0.02 per pair of shoes– $3 to $10 for new car 
Compliance Example:

Actual Trucking Company

• Regional haul trucking fleet

– Average age of vehicles 11 years– Normally replaces 2-3 per year– Normally buys 4 year old used – Annual revenue $3,500,000

5

Total 

89

12131415

N

Truck Engine 

Age
What Actions Would be Neede

02468

101214

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Calendar Year

Number of Replacements or Retrofits PM Retrofit Replacement 

Normal Repla
Capital Investments

$0

$50,000

$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Calendar Year

Capital Costs (Current Year Dollars) PM Retrofit Replacemen

Normal Repla
Implementation, Outreach, and Educ

• Committed to work with industry• Extensive outreach and education• Compliance assistance• Planning tools
Truck and Bus Regulation:

Alternatives Considered
Fewer Benefits with Industry Pro

0

100200300400500600700800

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

NOx (tpd)

BaselineProposed ReguDTCC Proposal
Impact of Recession on Emissi

• Recession has resulted in fewer miles dri

lower diesel fuel sales, and reduced new sales

• Fewer miles driven lowers emissions• But reduced truck sales means older high

emitting trucks stay on the road

• Higher emission rates associated with old

trucks may offset lower emissions due to driving
Staff Recommended Modification

Proposed 15-Day Changes

• Add retirement credit provisions• More operating time for back-up sweeper• Delay replacements for motor coaches• Other clarifying and corrective changes
Proposed Truck and Traile

Efficiency Regulation
California GHG Emissions

2002-2004 Average

Transportatio

38%

CA GHG Emissions

(469 MMTCO2E1

)

Electricity

23

%

Commercial & 

Residential

9%

Industrial

20%

Agriculture

6%

High GWP

3%

Recycling & 

Waste

1%

1MMTCO2E = million metric tons carbon dioxide equivalent emissions
California GHG Emissions

2002-2004 Average

Transportation 

(179 MMTCO2E)

Heavy-Duty 

Trucks

19%

Passenger Cars

75%

Ships

2%

Aviation (Intrastate Only)

2% Rail

2%

1MMTCO2E = million metric tons carbon dioxide equivalent emissions
Goals of Proposed Regulatio

• Reduce GHG emissions from long haul tractors 

reducing 

– Tractor and trailer aerodynamic drag – Tire rolling resistance

• Tractor aerodynamics 

– Streamlined hood, sleeper cab roof fairings, gap fairin

tank fairings, aerodynamic bumper, and mirrors

• Trailer aerodynamics

– 53-foot or longer box-type trailers– Side skirts, front gap fairings, rear trailer fairings

• Low rolling resistance tires
Goals of Proposed Regulation

(continued)

• U.S. EPA SmartWay Program

– Voluntary partnership – Test protocols and guidelines– Certifies fuel efficient tractors, trailers, and 

technologies

• Staff proposal establishes a California 

mandatory program based on SmartWProgram
Impacted Tractors and Traile

Trailers 93,000 997,000 1,08

Tractors 37,000 399,000 43

CA Out-of-State T

Calendar Year 2010
Available Technology (New)

New SmartWay Certified Trac

• Fully aerodynamic tractor with low 

rolling resistance tires

• Manufacturers: 

– Freightliner, International, Kenworth, 

Mack, Peterbilt, Volvo

• Fuel efficiency improvement 3% -

4.5% - resulting in annual fuel cost savings of $1,800

• Average incremental cost: $2,100
Available Technology (New)

NEW SmartWay Certified Trai

• Purchased directly from trailer 

manufacturer/dealer:

– Great Dane, Hyundai Translead, Manac, 

Stoughton Trailers, Strick Corp., Trailmobile Canada, Utility Trailer Manufacturing, Wabash National Corp.

• Fuel efficiency improvement of 6.5% 

minimum - resulting in annual fuel cost savings of $1,300 to $3,300

• Trailer incremental cost: $2,900• Refrigerated-van certification coming soon
Available Technology (In-Use Retrofit

SmartWay Verified 

Aerodynamic Technologies

• Side skirts

– 4% or greater fuel efficiency improvement– Fleets have experienced positive results– Average cost: $1,900
Available Technology (In-Use Retrofit)

SmartWay Verified 

Aerodynamic Technologies 

(continued)

• Front gap fairings

– 1% or greater fuel efficiency 

improvement

– Average cost: $870

• Rear trailer fairings

– 1% or greater fuel efficiency 

improvement

– Average cost: $2,800
Available Technology (New and In-Use R

SmartWay Verified Low Rolli

Resistance Tires

• Dual or single wide tires

– 3% or greater fuel efficiency 

improvement (tractor-trailer combination)

– Incremental cost: $0 to $50 per tire 

($0 to $900 per tractor-trailer) 
Emerging Technologies

• Manufacturers continuously 

developing & improving product functionality & durability

– Retractable skirts– Flexible skirts– Double channel skirts– Flow control devices

Flow Control Devices

Retractab

Double Channel Skirts Flexible S
Scope of Regulation

• Tractors that pull box-type trailers that are 

53-foot or longer 

– Greater than 26,000 pounds (Class 7 and 8)– Operate in California

• 53-foot or longer box-type trailers

– Dry van and Refrigerated van 

• California and out-of-state registered• Primary responsible parties: Owners • Other responsible parties: drivers, motor 

carriers/ CA-based brokers, and CA-based shippers
Proposed Requirements

Tractors

• 2011+ model year (MY) sleeper cab tract

– SmartWay certified – January 1, 2010

• 2011+ MY day cab tractors

– SmartWay verified low rolling resistance tires– January 1, 2010

• All pre-2011 MY tractors 

– SmartWay verified low rolling resistance tires– January 1, 2012 
Proposed Requirements

Trailers

• 2011+ MY 53-foot or longer box-type

– SmartWay certified or– Retrofitted with SmartWay Technologies:

• Low rolling resistance tires

– Minimum of 1.5% fuel efficiency improvemen

• Aerodynamic devices

– Minimum of 5% fuel efficiency improvement 

van, and

– Minimum of 4% fuel efficiency improvement 

refrigerated van
Proposed Requirements

Trailers 

(continued)

• Pre-2011 MY 53-foot or longer box-type

– Same requirements as 2011+ MY trailers – Delayed compliance until January 1, 2013– Three Optional Plans

• Small Fleet Compliance Plan• Large Fleet Compliance Plan• Reefer Van Compliance Plan
Proposed Requirements

Optional Compliance Schedu

- 2010 and Older MY Trailers -

• Small fleet – 20 or less trailers

– Phase-in: 2013 - 2016

• Large Fleet – 21 or more trailers 

– Phase-in: 2010 - 2015– Early compliance credit

• Refrigerated van – 2003-2008 MY

– Phase-in: 2017 - 2019
Proposed Requirements

Exemptions

• Short haul tractors and trailers

– 100 mile radius or less than 50,000 miles per year

• Drayage tractors and trailers

– Operate 100 mile radius of port or intermodal rail

yard

• Container chassis• Drop frame vans• Curtain side vans• Authorized emergency vehicles• Military tactical vehicles
GHG Emission Benefits 

(MMTCO2E)

7.8

0

102030405060

G H G R e d u c tio n s 

(M M T C O 2 E )

California Na

Cumulative GHG Benefit

1

6.7

01234567

G H G R e d u c tio n s 

(M M T C O 2 E )

California Nationwide

2020 GHG Emission Benefits
Additional Benefits

• NOx reductions in California 

– 2014 = 4.3 tons per day– 2020 = 1.4 tons per day

• Contribute towards SIP commitment

• Cumulative fuel savings (2010-2020

– California = 750 million gallons diesel f– Nationwide = 5 billion gallons diesel fue
Costs and Benefits

1.22.3

Payback period in years

(Trailer : Tractor = 1:1)(Trailer : Tractor = 2.5:1)

Assume: baseline fuel economy of 5.8 miles per gallon, and an average lo

annual mileage accrual rate of 100,000 miles.

Annual Savings @ $3.14/gallon $4,060 Fuel savings (gallons/year) 1293 Trailer incremental cost $2,900 Tractor incremental cost $2,100 Fuel Savings (%) 10% 

I

Re

New SmartWay

Certified

Tractor-Trailer Comb
Economic Impacts

• Initial capital cost to businesses signifi

– But so are the fuel savings

• Costs and savings to businesses 2010

– Costs 

≅ $8.5 billion

– Savings 

≅ $17.1 billion

• Net savings (2010-2020) 

≅ $8.6 billion
Proposed 15-Day Changes

• Remove 100-mile operating range exem

for tire requirement 

• Remove reporting requirements for refri

van compliance provision 

• Exempt solid waste trailers• Other minor modifications
Integration of Proposed Regulat
Each Regulation Targets Different 

• Truck and Trailer GHG Regulation

– Newer long haul fleets

• Truck and Bus Regulation

– Older in-state fleets

• Different compliance timelines• Incentives available for both
-1 1 3 5 7 9 11 13 15 17 19 21 23 25 

Truck Tractor Age

Poplulation of Truck Tractors

Potential Overlap is Minim

In-State and Out-of-State Tractors

Ahead of 

Regulation

Efficiency

Only

Exhau

Clean-up 

Poten

Over

More

Less

50,000 Miles

Truck Tractor Age (Years)
Few Trucks Have Overlapping C

No Impacts

24%

Truck and 

Trailer GHG 

Only

40%

Potentially 

Affected by 

Both

5%

Truck and Bus 

Only

31%
Enforcement to Ensure Equit

• Expand existing inspection efforts

– Weigh stations, random roadside, and fleet

• Web based database for vehicle records• Crosscheck other programs• Record audits • Additional resources requested
Availability of Incentive Fund
Incentive Funding Will Play An Impo

Role

• Economic challenges• Obtaining traditional credit difficult• Substantial grants available• Couple with loan guarantees • Funding provides critical role
Incentives Portfolio

• Carl Moyer Program

– About $140 million per year– Funds available for grants and vouchers

• Proposition 1B

– $1 billion over several years– Funds available for grants and loan guarante

• Assembly Bill (AB) 118

– $350+ million for low interest loans

• Lower Emission School Bus Program

– About $200 million for replacements and retro
Selected 2009 Changes to

Carl Moyer Guidelines

• Facilitate funding for small fleets• Add three years of model year eligibility• Add additional flexibility for minimum project lif

e

• Add “Two Vehicles to One” option• Grantees: use BACT Compliance Schedule duri

contract
Carl Moyer Program: Vouchers 

• New grant option beginning in 2009• Provides approx. $30,000 - $35,000 per • Simplified requirements 

– Quick turn around (1 week) – Voucher good at participating truck dealers– Available statewide

• Can be combined with loan guarantee
AB118 Loan Guarantee Progr

• Priority for small fleets and those with “financial 

hardship”

• Target “nearly bankable” small businesses • Loans available by Spring 2009• Loans for used trucks, new trucks, SmartWay pr

and exhaust retrofits

bankable unba

target
Proposition 1B Funding

• $1 billion over several years

– First installment of $250 million in 2007-2008– Second installment of $250 million in 2008-2009

• Replacement funds available for 2003 and olde• Available for large and small fleets• Grants competitive: cost-effectiveness & reduct• Loan guarantee program for small fleets in deve• Guideline revisions scheduled for February 200

– Add funding options for Class 7 trucks (over 31,000 G– Fund small fleets 2 years before compliance deadline
Funding Options for Small Flee

(1-3 trucks)

• Fleet Modernization Grants (old truck 1993 or ol

– Up to $50,000 for 2007-2009 replacement truck– Up to $75,000 for 2010+ replacement truck– Exhaust retrofits (up to 100% of cost)

• Voucher Program (old truck 1993 or older)

– Approx. $30,000 - $35,000 for replacement truck– Focus on quick turn-around (one week)

• Truck Replacement Grants (old truck 2003 or ol

– Up to $35,000 for 2007-2009 used replacement truck– Up to $45,000 for 2007-2009 new replacement truck– Up to $50,000 for 2010+ replacement truck– Funding also available for retrofits and repowers

• Loan Guarantees

– Lower interest rates and qualification criteria– Loans for new & used trucks and SmartWay products
• Truck Replacement Grants (old truck 2003 or ol

– Up to $35,000 for 2007-2009 used replacement truck– Up to $45,000 for 2007-2009 new replacement truck– Up to $50,000 for 2010+ replacement truck– Funding also available for retrofits and repowers

• Loan Guarantees

– Potential funding for fleets in “financial hardship”

• Retrofits

– Limited funding for Level 3 exhaust retrofits– Future funding opportunities for NOx retrofits that bring 

trucks into compliance

Funding Options for Large Fle

(4 or more trucks)
• Agricultural Vehicles

– Limited use vehicles: through 2013– Low use & specialty vehicles: through 2019

• School Buses 

– $200 million Lower Emission School Bus Pro

• At least 3,500 exhaust retrofits • Funding could retrofit every eligible public school b

– Additional local and state funds

Funding Options for Other Flee
Truck

Dealerships

Truck Stops Banks

Air Districts

Air Resources

Board

Truck

Owner

Program Provides Multiple Access 
Incentives Portfolio Summar

Fleet Type Programs For What SouSmall fleet(1-3 trucks)

Grants; Vouchers; Loan guarantee

Replacement of 1993 or older truck with 2007 or newer truck;

Carl AB 1

Replacement of 1993 or older truck with 2010 or newer truckExhaust retrofit

Fleets moving goods in a trade corridor

Grants Replacement of 2003 

or older truck with 2007 or newer truck;Exhaust retrofit;

Prop

1-10 trucks(financial hardship)

Loan guarantee

2007 or newer truck;Exhaust retrofit;GHG Efficiency

AB 1
Tying it all Together

• Many funding options, significant aid• Coordinated programs: grant programs a

down-payment, loans can complement

• Integrated outreach to best assist affecte• Coordinated approach can get new truck 

per month
Recap and Closing
Importance of Proposed Truck and 

Regulation

• Largest component of SIP reductions

– Cannot attain PM and ozone standards

• Billions in transportation funding at risk• Thousands of lives at stake• Benefits outweigh costs• State’s obligations cannot be delayed

– Industry alternatives do not meet SIP targets
Importance of Proposed Truck GH

Regulation

• Key early action measure in Scoping Plan• Investment pays for itself• Environmental benefits
Needed Technology is Available 

• Numerous retrofits verified• New trucks already have filters• 2010 engines on track• Low-rolling resistance tires common• Smartway tractors available• Trailer retrofits now in use
Minimizes Economic Impacts

• No actions required until 2010• Significant flexibility provided• Small fleets have additional time• Newer trucks ahead of exhaust requirem• Little overlap from both regulations
Incentives Will Play an Important 

• Over $1 billion is available• Will target those most in need...small flee• Numerous ARB programs being coordina• Private lenders will be key partners
Recommendation

• Adopt staff proposal with 15-day changes• Direct staff to:

– Evaluate and report on localized impacts from 

agricultural provisions by end of 2009

– Monitor potential impacts on pupil transportat