1 FINAL REGULATION ORDER

AIRBORNE TOXIC CONTROL MEASURE FOR DIESEL ENGINES ON

COMMERCIAL HARBOR CRAFT OPERATED WITHIN

CALIFORNIA WATERS AND 24 NAUTICAL MILES OF THE CALIFORNIA BASELINE

Adopt new section 93118.5, title 17, chapter 1, sub chapter 7.5, California Code of Regulations (CCR), to read as follows:

(Note: The entire text of section 93118.5 is new l anguage.):

Section 93118.5. Airborne Toxic Control Measure fo r Commercial Harbor Craft.

(a) Purpose.

The purpose of this section is to reduce diesel par ticulate matter (PM), oxides of sulfur (SOx), and oxides of nitrogen (NO

x ) from diesel propulsion and auxiliary engines on harbor craft that operate in any of the waters subj ect to this section (“Regulated California Waters”). This section implements provi sions of the Goods Movement Emission Reduction Plan, adopted by the California Air Resources Board (ARB or CARB) in April 2006, to reduce emissions and health risk from ports and the movement of goods in California.

(b) Applicability.

(1) Except as provided in subsections (b) and (c), this section applies to any person who sells, supplies, offers for sale, purchases, ow ns, operates, leases, charters, or rents any new or in-use diesel fueled harbor cra ft that is operated in any of the Regulated California Waters.

(2) Engine Subject to Multiple ARB Regulations. The requirements of this section shall control in the event an engine on a harbor cr aft is subject to the requirements:

(A) of this section, and either (B) the regulation for portable compression ignitio n (CI) engines and equipment (sections 93116-93116.5, title 17, California Code of Regulations (CCR)), or (C) the regulation for off-road CI engines and equ ipment (sections 2420-2427, title 13, CCR).

This provision shall apply only to each engine on t he vessel that meets the above requirements and is permanently affixed to the vess el (i.e., the engine, its fueling system, or its exhaust system is welded or otherwis e physically connected to the2

vessel or other vessel system in such a way that th e engine cannot be easily removed for use in a land-based application without modifications).

(3) This section applies to towboats and tugboats e ngaged in or intending to engage in the service of pulling, pushing, or hauling alon gside tank vessels or tank barges.

(4) Notwithstanding the provisions of title 13, CCR , section 2299.1 and title 17, CCR, section 93118, this section shall apply to any ocea n-going tugboats and towboats and shall supersede the requirements of 13 CCR 2299 .1 and 17 CCR 93118 in their entirety for ocean-going tugboats and towboat s. For purposes of this paragraph, “ocean-going tugboats and towboats” shal l mean tugboats and towboats with a “registry” (foreign trade) endorsem ent on its United States (U.S.) Coast Guard certificate of documentation, or tugboa ts and towboats that are registered under the flag of a country other than t he United States.

(5) Nothing in this section shall be construed to a mend, repeal, modify, or change in any way any other applicable State, U.S. Coast Guar d, or other federal requirements. Any person subject to this section s hall be responsible for ensuring compliance with both U.S. Coast Guard regu lations and the requirements of this section and any other applicab le State and federal requirements, including but not limited to, obtaini ng any necessary approvals, exemptions, or orders from the U.S. Coast Guard.

(6) This section shall not apply to any engine and equipment that fall within the scope of the preemption of Section 209(e)(1)(A) of the Federal Clean Air Act (42 United States Code (U.S.C.) 7543(e)(1)(A)) and as defined by regulation of the U.S. Environmental Protection Agency (U.S. EPA)

.

(c) Exemptions.

All or portions of this section do not apply to the following, as provided below, but vessels that are partly or wholly exempt from this section may be subject to other State or federal regulations and requirements. A person subject to such other State or federal regulations and requirements is solely responsible for ensuring the vessel complies with those regulations and requirements. All other port ions of this section shall apply unless otherwise specified:

(1) The requirements of this section do not apply t o harbor craft voyages that are comprised of continuous and expeditious navigation through any of the Regulated California Waters for the purpose of trav ersing such bodies of water without entering California internal or estuarine w aters or calling at a port, roadstead, or terminal facility. “Continuous and e xpeditious navigation” includes stopping and anchoring only to the extent such stop ping and anchoring are required by the U.S. Coast Guard; rendered necessar y by force majeure or distress; or made for the purpose of rendering assi stance to persons, ships, or aircraft in danger or distress. This exemption doe s not apply to the passage of a3

harbor craft that engages in any of the prejudicial activities specified in United Nations Convention on the Law of the Seas (U NCLOS) 1982, Article 19, subpart 2. Further, notwithstanding any U.S. Coast Guard mandated stops or stops due to force majeure or the rendering of assi stance, this exemption does not apply to a vessel that was otherwise scheduled or intended to enter California internal or estuarine waters or call at a port, roa dstead or terminal facility;

(2) Except as provided in Paragraph (3) below, a te mporary replacement vessel is exempt only from the requirements set forth in subs ection (e)(6) and only upon written approval by the ARB’s Executive Officer (E. O.). All other provisions in this section shall apply to a temporary replacement vessel subject to this paragraph. An owner or operator, who has or will h ave a vessel taken out of service, may apply in writing to the E.O. to operat e a temporary replacement vessel pursuant to the following:

(A) The E.O. shall approve or disapprove such a req uest within 15 days of receipt. The E.O. shall not unreasonably withhold approval of the request to operate the temporary replacement vessel; (B) If the approval is granted, the temporary repl acement vessel’s operating time will be specified in the approval by the E.O., along with any other terms, conditions, or requirements the E.O. deems n ecessary, but in no case shall the approved operating time in Regulated California Waters for a specific temporary replacement vessel exceed one ye ar total for any single vessel that is temporarily replaced; and (C) No temporary replacement vessel exemptions shal l be approved for a

vessel that is taken out of service more than 12 mo nths in any 24-month period or if the E.O. cannot determine the length o f time a vessel has been taken out of service within any 24-month period;

(3) A temporary replacement vessel used to replace a vessel that has its homeport in the South Coast Air Quality Management District (SCAQMD) is exempt only from the compliance dates set forth in Table 8 of s ubsection (e)(6) and only upon written approval from the E.O. All other provision s in this section, including but not limited to, the compliance dates specified in T able 7 of subsection (e)(6), shall apply to a temporary replacement vessel subje ct to this paragraph. An owner or operator, who has or will have a vessel ta ken out of service, may apply in writing to the E.O. to operate a temporary repla cement vessel pursuant to the following:

(A) The E.O. shall approve or disapprove such a re quest within 15 days of receipt. The E.O. shall not unreasonably withhold approval of the request to operate the temporary replacement vessel; (B) If the approval is granted, the temporary repla cement vessel’s operating time will be specified in the approval by the E.O., along with any other terms, conditions, or requirements the E.O. deems n ecessary, but in no case shall the approved operating time in Regulated California Waters for a4 specific temporary replacement vessel exceed one ye ar total for any single vessel that is temporarily replaced; and (C) No temporary replacement vessel exemptions sha ll be approved for a

vessel that is taken out of service more than 12 mo nths in any 24-month period or if the E.O. cannot determine the length o f time a vessel has been taken out of service within any 24-month period;

(4) A temporary emergency rescue/recovery vessel is exempt from this section in its entirety;

(5) A recreational vessel is exempt from this secti on in its entirety;

(6) An ocean-going vessel, except for ocean-going t ugboats and towboats as provided in subsection (b)(4), is exempt from this section in its entirety;

(7) The following engines are exempt from this sect ion in its entirety:

(A) Notwithstanding section (b)(2), a vessel engin e, including an engine on a barge, which is registered with ARB’s Portable Engi ne Registration Program (PERP) (sections 2450 through 2465, title 13, CCR) before January 1, 2009; (B) A vessel engine that is registered with PERP on or after January 1, 2009 and is not permanently affixed to the vessel (i.e., the engine, its fueling system, and its exhaust system are not welded or ot herwise physically connected to the vessel or other vessel system, whi ch permits the engine to be easily removed for use in a land-based applicati on without modifications); and (C) A vessel engine that is registered and permitte d under local air district regulations before January 1, 2009;

(8) A registered historic vessel is exempt only fro m subsection (e)(6);

(9) A U.S. Coast Guard vessel is exempt from this s ection in its entirety;

(10) A military tactical support vessel is exempt f rom this section in its entirety;

(11) An engine rated less than 50 horsepower (hp) i s exempt only from subsection (e)(6);

(12) An engine or vessel that is operated less than 300 hours per calendar year is exempt only from the requirements of subsection (e) (6); and

(13) Near-Retirement Vessels. A harbor craft is exempt from the requirements of subsection (e)(6)(C) and (e)(6)(D) if all of the fo llowing criteria have been met:5

(A) the vessel is scheduled to be taken out of serv ice and retired permanently; (B) the vessel is actually taken out of service and retired on or before the retirement date scheduled under (A) above; and (C) the vessel has an engine with a compliance date , as set forth in subsection (e)(6)(D), that is within one year of the vessel’s scheduled retirement date under (A) above.

Operation of a vessel subject to this provision aft er the scheduled retirement date or the engine’s compliance date, whichever occurs l ater, is a separate violation of this section for each and every engine and each and every day of operation during which an engine on the vessel does not meet the requirements of subsection (e)(6)(C) or other parts of this section

.

(d) Definitions.

For purposes of this section, the definitions of He alth and Safety Code (H&S) sections 39010 through 39060 shall apply except as otherwise specified in this section:

(1) “Air District” means one of the local air pollu tion control districts (APCDs) or air quality management districts (AQMDs) established un der H&S section 40000 et

seq.

(2) “Alternative Diesel Fuel” means any fuel used i n a diesel engine that is not commonly or commercially known, sold, or represente d by the supplier as diesel fuel No. 1-D or No. 2-D, pursuant to the specificat ions in American Society for Testing and Materials (ASTM) D975-81, “Standard Spe cification for Diesel Fuel Oils,” as modified in May 1982, which is incorporat ed herein by reference, and does not require engine or fuel system modification s for the engine to operate, although minor modifications (e.g., recalibration o f the engine fuel control) may enhance performance. Examples of alternative diese l fuels include, but are not limited to, biodiesel and biodiesel blends not meeting the definition of CARB diesel fuel; Fischer-Tropsch fuels; emulsions of wa ter in diesel fuel; and fuels with a fuel additive, unless:

(A) the additive is supplied to the engine fuel by an on-board dosing mechanism, or (B) the additive is directly mixed into the base fu el inside the fuel tank of the engine, or (C) the additive and base fuel are not mixed until engine fueling commences, and no more additive plus base fuel combination is mixed than required for a single fueling of a single engine.

(3) “Alternative Fuel” means natural gas, propane, ethanol, methanol, gasoline, hydrogen, electricity, or other technologies that d o not meet the definition of

CARB diesel or alternative diesel fuel. "Alternati ve fuel" also means any mixture that only contains these fuels.6

(4) “Annual Hours of Operation” means the total num ber of hours, rounded to the nearest whole hour, a vessel engine is used for all commercial purposes in Regulated California Waters in the calendar year (J anuary 1 to December 31) immediately prior to the engine’s applicable compli ance date set forth in subsection (e)(6)(D). For example, if a vessel is used for commercial fishing and commercial non-fishing purposes, the total number o f hours combined for both uses shall be the total annual hours of operation f or that vessel.

(5) “Auxiliary Engine” means an engine designed pri marily to provide power for uses other than propulsion.

(6) “Averaging” means an exchange of excess reduced regulated emissions among engines on vessels in the same owner’s or operator’ s fleet.

(7) “Baseline” means the emissions level of a diese l engine using CARB diesel fuel as configured upon initial marine installation.

(8) “Barge” means a vessel having a flat-bottomed r ectangular hull with sloping ends and built with or without a propulsion engine.

(9) “California Air Resources Board (CARB) Diesel F uel” means any diesel fuel that meets the specifications of vehicular diesel fuel, as defined in title 13 CCR, sections 2281, 2282, 2284, 2299, and title 17 CCR s ection 93116.

(10) “California Baseline” means the mean lower low water line along the California coast, as shown on the following National Oceanic a nd Atmospheric Administration (NOAA) Nautical Charts as authored b y the NOAA Office of Coast Survey, which are incorporated herein by reference:

(A) Chart 18600, Trinidad Head to Cape Blanco (Jan uary 2002); (B) Chart 18620, Point Arena to Trinidad Head (Jun e 2002); (C) Chart 18640, San Francisco to Point Arena (Aug ust 2005); (D) Chart 18680, Point Sur to San Francisco (June 2005); (E) Chart 18700, Point Conception to Point Sur (Ju ly 2003); (F) Chart 18720, Point Dume to Purisima Point (Jan uary 2005); and (G) Chart 18740, San Diego to Santa Rosa Island (A pril 2005).

(11) “CARB” means the California Air Resources Boar d. CARB may also be referred

to as “ARB.”

(12) “Carbon Monoxide (CO)” is a colorless, odorles s gas resulting from the incomplete combustion of hydrocarbon fuels.

(13) “Category 1 engine” means any marine engine wi th a displacement of less than 5.0 liters per cylinder and with a maximum horsepow er (hp) rating of 50 hp or
greater

.7

(14) “Category 2 engine” means any marine engine wi th a displacement of 5.0 to less than 30 liters per cylinder.

(15) “Category 3 engine” means any marine engine wi th a displacement of greater than 30 liters per cylinder.

(16) “Certified engine” means an engine that is cer tified by U.S. EPA as meeting the requirements of title 40, Code of Federal Regulatio ns (CFR), Part 94.

(17) “Coast Guard Vessel” means any vessel or boat owned or operated by the U.S. Coast Guard, including, but not limited to, U.S. Co ast Guard cutters and patrol boats that are used for law enforcement, defense op erations, marine science, search and rescue missions, training missions, coas tal surveillance, servicing aids to navigation, and marine environmental respon se.

(18) “Compliance Date” means the date by which time a vessel engine must meet the requirements set forth in subsection (e)(6)(C). Th e “compliance date” for a vessel engine is set forth in either Table 7 or Tab le 8 in subsection (e)(6)(D), whichever is applicable.

(19) “Crew and Supply Vessel” means a self-propelle d vessel used for carrying personnel and/or supplies to and from off-shore and in-harbor locations (including, but not limited to, off-shore work plat forms, construction sites, and other vessels).

(20) “Date of Acquisition” means, for a vessel or e ngine subject to this regulation, the date of purchase as defined by the date shown on th e front of the cashed check, the date of the financial transaction, or the date on the vessel or engine purchasing agreement, whichever is earliest of the three dates.

(21) “Diesel Engine” means an internal combustion, compression-ignition (CI) engine, or pilot ignition engine with operating characteris tics significantly similar to the theoretical diesel combustion cycle. The regulatio n of power by controlling fuel supply in lieu of a throttle is indicative of a com pression ignition engine.

(22) “Diesel Fuel” means any fuel that is commonly or commercially known, sold, or represented by the supplier as diesel fuel, includi ng any mixture of primarily liquid hydrocarbons (HC) - organic compounds consisting ex clusively of the elements carbon and hydrogen - that is sold or represented b y the supplier as suitable for use in an internal combustion, compression-ignition engine.

(23) “Diesel-Fueled” means a diesel engine fueled i n whole or part by diesel fuel.

(24) “Diesel Oxidation Catalyst (DOC)” means an emi ssion control technology that employs a catalyst to promote oxidation processes i n diesel exhaust gases,8

usually designed to reduce emissions of the organic fraction of diesel particulates, gas-phase HC, and CO.

(25) “Diesel Particulate Filter (DPF)” means an emi ssion control technology that reduces diesel PM emissions in engine exhaust gases by trapping the particles in a flow filter substrate and periodically removes th e collected particles by either physical action or by oxidizing (burning off) the p articles in a process called regeneration.

(26) “Diesel Particulate Matter (Diesel PM)” means the particles found in the exhaust of diesel engines, which may agglomerate and adsorb other species to form structures of complex physical and chemical propert ies.

(27) “Direct Control” means owning, operating, havi ng a contract, lease, or other arrangement to operate a harbor craft.

(28) “Emission Control Strategy” means any device, system, or strategy employed to reduce emissions from an engine, including, but not limited to, diesel oxidation catalysts, selective catalytic reduction systems, d iesel particulate filters, alternative diesel fuels, water emulsified fuels, a nd any combination of the above.

(29) “Estuarine Waters” means an arm of the sea or ocean that extends inland to

meet the mouth of a river.

(30) “Excursion Vessel” means a self-propelled vess el that transports passengers for purposes including, but not limited to, dinner crui ses; harbor, lake, or river tours; scuba diving expeditions; and whale watching tours. “Excursion Vessel” does not include crew and supply vessels, ferries, and r ecreational vessels.

(31) “Executive Officer” means the Executive Office r (E.O.) of the California Air Resources Board or his/her designee.

(32) “Ferry” means a harbor craft having provisions only for deck passengers or vehicles, operating on a short run, on a frequent s chedule between two points over the most direct water route, and offering a pu blic service of a type normally attributed to a bridge or tunnel.

(33) “Fishing Vessel” means a self-propelled vessel that is either:

(A) a commercial vessel dedicated to the search fo r, and collection of, fish for the purpose of sale at market or directly to a purc haser(s), or (B) a charter vessel used for hire by the general public and dedicated to the search for and collection of, fish for the purpose of general consumption.9

(34) “Fleet” means the total number of harbor craft owned, rented, or leased by an owner or operator in an air district or distinct lo cale within Regulated California Waters or the statewide population of a specific ve ssel type.

(35) “Fuel Additive” means any substance designed t o be added to fuel or fuel systems or other engine-related engine systems such that it is present in-cylinder during combustion.

(36) “Harbor Craft” (also called “Commercial Harbor Craft”) means any private, commercial, government, or military marine vessel i ncluding, but not limited to, passenger ferries, excursion vessels, tugboats, oce an-going tugboats, towboats, push-boats, crew and supply vessels, work boats, pi lot vessels, supply boats, fishing vessels, research vessels, U.S. Coast Guard vessels, hovercraft, emergency response harbor craft, and barge vessels that do not otherwise meet the definition of ocean-going vessels or recreation al vessels.

(37) “Homeport” means the port in which a vessel is registered or permanently based.

(38) “In-Use Harbor Craft” means a harbor craft tha t is not a new harbor craft.

(39) “In-Use Marine Engine” means a marine engine t hat is not a new marine engine.

(40) “Lease” means a contract by which the owner (l essor) of a property, such as a vessel or engine, grants the right to use or occupy the property to another person (lessee) for a specified term and for a specified r ent.

(41) “Level” means, unless the context requires oth erwise, one of three categories of ARB-verified diesel emission control strategies as set forth in title 13, CCR, section 2700 et seq.: Level 1 means the strategy re duces engine diesel PM emissions by between 25 and 49 percent; Level 2 mea ns the strategy reduces engine diesel PM emissions by between 50 and 84 per cent; and Level 3 means the strategy reduces engine diesel PM emissions by 85 percent or greater, or reduces engine diesel PM emissions to less than or equal to 0.01 grams per brake horsepower-hour (g/bhp-hr).

(42) “Low-Use” means the operation of any compressi on-ignition engine associated

with a harbor craft vessel for less than 300 total annual hours of operation in Regulated California Waters, based on the immediate ly preceding calendar year.

(43) “Military Tactical Support” means a vessel tha t meets military specifications, is owned by the U.S. Department of Defense, the U.S. C oast Guard, the U.S. Military services or its allies, and is used in com bat, combat support, combat services support, tactical or relief operations or training for such operations.10

(44) “Model Year” means the diesel engine manufactu rer’s annual production period, which includes January 1st of a calendar year, or i f the manufacturer has no annual production period, the calendar year.

(45) “Multipurpose Harbor Craft” means a harbor cra ft that serves as a ferry, excursion vessel, tugboat, or towboat but is also u sed as a work, crew and supply, pilot, fishing, supply, or other vessel.

(46) “New Harbor Craft” means a harbor craft for wh ich both of the following criteria

are true:

(A) it is built, or its keel is laid, on or after J anuary 1, 2009, and (B) the equitable or legal title to the harbor craf t has never been transferred to an ultimate purchaser.

Where the equitable or legal title to the harbor cr aft is not transferred to an ultimate purchaser prior to the harbor craft being placed into service, the harbor craft ceases to be new when it is placed into servi ce. A harbor craft is placed into service when it is used for its functional pur poses.

(47) “New Marine Engine” means a marine engine for which both of the following

criteria are true:

(A) it is manufactured or imported on or after Janu ary 1, 2009, and (B) the equitable or legal title to the engine has never been transferred to an ultimate purchaser.

Where the equitable or legal title to the engine is not transferred to an ultimate purchaser prior to the engine being placed into ser vice, the engine ceases to be new when it is placed into service. An engine is p laced into service when it is used for its functional purposes.

(48) “Nitrogen Oxides or Oxides of Nitrogen (NO

x )” means compounds of nitric oxide (NO), nitrogen dioxide (NO 2 ), and other oxides of nitrogen, which are typicall y created during combustion processes and are major c ontributors to smog formation and acid deposition.

(49) “Non-Methane Hydrocarbons (NMHC)” means the su m of all hydrocarbon (HC) air pollutants except methane.

(50) “Ocean-going Vessel” means a commercial, gover nment, or military vessel meeting any one of the following criteria:

(A) a vessel greater than or equal to 400 feet in l ength overall (LOA) as defined in 50 CFR § 679.2, as adopted June 19, 1996;11

(B) a vessel greater than or equal to 10,000 gross tons (GT ITC) per the convention measurement (international system) as de fined in 46 CFR 69.51-.61, as adopted September 12, 1989; or (C) a vessel propelled by a marine compression-igni tion engine with a percylinder displacement of greater than or equal to 3 0 liters.

(51) “Operate” means steering or otherwise running the vessel or its functions while the vessel is underway, moored, anchored, or at doc k.

(52) “Own” means having all the incidents of owners hip, including the legal title, whether or not that person lends, rents, or pledges the vessel; having or being entitled to the possession of a vessel as the purch aser under a conditional sale contract; or being the mortgagor of a vessel.

(53) “Particulate Matter (PM)” means any airborne f inely divided material, except uncombined water, which exists as a liquid or solid at standard conditions (e.g., dust, smoke, mist fumes, or smog).

(54) “Person” includes all of the following:

(A) any person, firm, association, organization, pa rtnership, business trust, corporation, limited liability company, or company; (B) any state or local governmental agency or publi c district, or any officer or employee thereof; and (C) the United States or its agencies, to the exten t permitted by federal law.

(55) “Pilot Vessel” means a vessel designed for, bu t not limited to, the transfer and transport of maritime pilots to and from ocean-goin g vessels while such vessels are underway.

(56) “Port” means any facility used for water-borne commerce. “Port” includes, but is not limited to, facilities also known as “marine te rminals” and “roadsteads.”

(57) “Portable CI Engine” means a compression-ignit ion (CI) engine designed and capable of being carried or moved from one location to another. Indicators of portability include, but are not limited to, wheels , skids, carrying handles, dolly, trailer, or platform. Portable engines are not sel f-propelled.

(58) “Portable Engine Registration Program (PERP)” means the statewide program designed to promote the use of clean portable engin es in California, as provided for in title 13, CCR, sections 2450 through 2465. Once registered in the program, engines and equipment units can operate th roughout the State without being required to obtain individual permits from ea ch air pollution control or air quality management district in which they operate.12

(59) “Pre-Tier 1 Engine” means an engine that was b uilt before the effective date of U.S. EPA’s Tier 1 marine engine emission standards (Tier 1 standards), as set

forth in 40 CFR 94.

(60) “Propulsion Engine” means an engine that provi des power to move a vessel through the water or directs the movement of a vess el.

(61) “Purchase Date” means the date shown on the fr ont of the cashed check; the date of the financial transaction; or the date on t he engine or harbor craft purchase, rental, or lease agreement, whichever is earliest.

(62) “Push Boat” means any self-propelled vessel en gaged in or intending to engage in the service of pulling, pushing, or hauling alon g side barges or other vessels, or any combination of pulling, pushing, or hauling along side barges or other vessels. “Push boats” is interchangeable with “tow boats.”

(63) “Recreational Vessel” means a vessel that is i ntended by the vessel manufacturer to be operated primarily for pleasure or leased, rented, or chartered to another for the latter’s pleasure, excluding the following vessels: (1) vessels of less than 100 gross tons that carry more than 6 pas sengers, (2) vessels of 100 gross tons or more that carry one or more passe ngers, and (3) vessels used solely for competition.

(64) “Registered Historic Vessel” means a vessel li sted in the National Register of Historic Places pursuant to the National Historic P reservation Act of 1966 (16 U.S.C. 470).

(65) “Regulated California Waters” means all of the following:

(A) all California internal waters; (B) all California estuarine waters; (C) all California ports, roadsteads, and terminal facilities (collectively “ports”); (D) all waters within 3 nautical miles of the Calif ornia baseline, starting at the California-Oregon border and ending at the Californ ia-Mexico border at the Pacific Ocean, inclusive; (E) all waters within 12 nautical miles of the Cali fornia baseline, starting at the California-Oregon border and ending at the Californ ia-Mexico border at the Pacific Ocean, inclusive; (F) all waters within 24 nautical miles of the Cali fornia baseline, starting at the California-Oregon border to 34.43 degrees North, 12 1.12 degrees West; inclusive; and (G) all waters within the area, not including any i slands, between the California baseline and a line starting at 34.43 degrees North , 121.12 degrees West; thence to 33.50 degrees North, 118.58 degrees West; thence to 32.65 degrees North, 117.81 degrees West; and ending at t he California-Mexico border at the Pacific Ocean, inclusive.13

(66) “Rent” means payment for the use of harbor cra ft or diesel engine for a specified

term.

(67) “Retirement” means the act of taking an engine or harbor craft out of service (i.e., to “retire”) so that it subsequently never again op erates in any of the Regulated

California Waters. “Retirement” does not include a n engine or harbor craft that is sold for use outside California then subsequently o perated in any of the Regulated California Waters.

(68) “SCAQMD” means the South Coast Air Quality Man agement District, as defined in Health and Safety Code section 40410 et seq. and described in section 60104, title 17, California Code of Regulations, and shall include all waters subject to the jurisdiction of the SCAQMD.

(69) “Supply Vessel” means a self-propelled vessel used for carrying supplies to and from off-shore and in-harbor locations including, b ut not limited to, off-shore work platforms, construction sites, and other vessels.

(70) “Take Out of Service” means the act of dry-doc king, mooring, anchoring, or otherwise tying up a harbor craft at dock to conduc t maintenance, repairs, replacements, or upgrades such that the vessel cann ot be operated in Regulated

California Waters while such acts are conducted on the vessel.

(71) “Tank Barge” means a non-self-propelled vessel constructed or adapted primarily to carry, or that carries, oil or hazardous materia l in bulk as cargo or cargo

residue.

(72) “Tank Vessel” or “Tanker” means a self-propell ed vessel constructed or adapted primarily to carry, or that carries, oil or hazardo us material in bulk as cargo or cargo residue.

(73) “Temporary emergency rescue/recovery vessel” m eans a self-propelled vessel whose homeport is not within California and is brou ght into California for the immediate use of emergency rescue or recovery and r eturns to its homeport

outside of California at the conclusion of its emer gency rescue/recovery mission.

(74) “Temporary replacement vessel” means a self-pr opelled vessel that is brought into service to temporarily replace a California ve ssel that has been temporarily taken out of service. For purposes of this section , “temporary replacement vessel” includes only the following:

(A) vessels that are used in the SCAQMD but have a homeport in California outside of the SCAQMD; and (B) vessels that are used anywhere in California, i ncluding the SCAQMD, but have a homeport outside of California.14

(75) “Tier 1 Marine Engine Emission Standards (Tier 1 standards)” means the U.S. EPA marine engine Tier 1 emission standards, as pro mulgated by U.S. EPA and

set forth in “Control of Emissions of Air Pollution from New Marine CompressionIgnition Engines at or Above 37 kW” (64 Federal Reg ister (FR) 73299-73373, December 29, 1999)(40 CFR Part 94), both of which a re incorporated herein by

reference. The standards from 40 CFR Part 94 are s ummarized in Table 1.

Table 1: U.S. EPA Tier 1 Marine Engine Emission St andards

Category Power (kilowatt

(kW)) & Displacement (liters/cylinder (l/cyl)) Engine Speed

(Revolutions per minute (rpm)) Tier 1

Model

Year PM

(g/bhphr) NO

x +HC

(g/bhp-hr)* CO

(g/bhphr)

rpm ≥ 2000 2004 - 7.3 -

130 ≤ rpm <2000 2004 - 33.57 x rpm -0.2

- 1, 2, 3, including

Recreational ≥ 37 kW & ≥ 2.5

l/cyl rpm <130 2004 - 12.7 - (40 CFR Part 94) *converted emission standards from 40 CFR 94, which are expressed in grams per kilowatt–hour (g/kW-hr) to g/hp-hr by the following: g/kW-hr * ( 0.746) = g/hp-hr.

(76) “Tier 2 Marine Engine Emission Standards (Tier 2 standards)” means the U.S. EPA marine engine Tier 2 emission standards, as pro mulgated by U.S. EPA and

set forth in “Control of Emissions of Air Pollution from New Marine CompressionIgnition Engines at or Above 37 kW” (64 FR 73299-73 373, December 29, 1999)(40 CFR Part 94), both of which are incorporat ed herein by reference.15 Table 2: U.S. EPA Tier 2 Marine Engine Emission St andards for

NO
x + HC, PM, and CO

Category Displacement (Disp.)

(liters/cylinder) Date NO

x +HC (g/bhp-hr)* PM

(g/bhp-hr)* CO

(g/bhp-hr)* Disp.< 0.9 and power ≥ 50 hp* 2005 5.6 0.30 3.7

0.9 ≤ Disp. < 1.2 2004 5.4 0.22 3.7

1.2 ≤ Disp. < 2.5 2004 5.4 0.15 3.7 1

2.5 ≤ Disp. < 5.0 2007 5.4 0.15 3.7

5.0 ≤ Disp. < 15 2007 5.8 0.20 3.7

15 ≤ Disp. < 20 (power < 4424 hp*) 2007 6.5 0.37 3.7

15 ≤ Disp. < 20 (power ≥ 4424 hp*) 2007 7.3 0.37 3.7

20 ≤ Disp. < 25 2007 7.3 0.37 3.7 2

25 ≤ Disp. < 30 2007 8.2 0.37 3.7 (40 CFR Part 94) *converted emission standards and maximum power rat ing from 40 CFR 94, which are expressed in g/kW-hr and kW to g/hp-hr and hp, respectively, by the following: g/kW-hr (0.746) = g/hp-hr or kW (1.34) = hp

(77) “Tier 3 Marine Engine Emission Standards (Tier 3 standards)” means the U.S. EPA marine engine Tier 3 emission standards, as pro mulgated by U.S. EPA and

set forth in “Final Rule: Control of Emissions of A ir Pollution from Locomotive and Marine Compression-Ignition Engines Less Than 30 Li ters Per Cylinder” (73 FR 25245 et seq., May 6, 2008) (40 CFR Part 1042), bot h of which are incorporated herein by reference. The standards from 40 CFR Par t 1042 are summarized in Table 3, Table 4, and Table 5. [Note: No Tier 3 st andards apply for commercial Category 1 engines at or above 3700 kW. See “Tier 4 Marine Engine Emission Standards” for the standards that apply to these en gines.]16 Table 3: U.S. EPA Tier 3 Standards for Marine Diesel Category 1 Commercial Standard Power Density Engines below 3700 kW

Rated kW L/Cylinder PM g/bhp-hr e NOx + HC d

g/bhp- hr e Model Year

0.22 5.6 2009 19 to < 75 kW <0.9 a 0.22 b 3.5 b 2014

<0.9 0.10 4.0 2012

0.9 - <1.2 0.09 4.0 2013

1.2 - <2.5 0.08 c 4.2 2014

2.5 - <3.5 0.08 c 4.2 2013 75 to <3700 kW

3.5 - <7.0 0.08 c 4.3 2012
(a) <75 kW engines at or above 0.9 L/cylinder are s ubject to the corresponding

75-3700 kW standards. (b) Option: 0.15 g/bhp-hr PM / 4.3 g/bhp-hr NOx+HC in 2014. (c) This standard level drops to 0.07 g/bhp-hr in 2 018 for <600 kW engines. (d) Tier 3 NOx+HC standards do not apply to 2000-37 00 kW engines. (e) Converted emission standards from 40 CFR part 1 042, which are expressed in g/kW-hr to g/hp-hr by the following: g/kW-hr (0.746) = g/hp-hr

.

Table 4: U.S. EPA Tier 3 Standards for Marine Diesel Category 1 Recreational and Commercial High Power D ensity

Engines below 3700 kW

Rated kW L/Cylinder PM g/bhp- hr c NOx + HC

g/bhp- hr c Model Year

0.22 5.6 2009 19 to <75 kW <0.9 a 0.22 b 3.5 b 2014

<0.9 0.11 4.3 2012

0.9 - <1.2 0.10 4.3 2013

1.2 - <2.5 0.09 4.3 2014

2.5 - <3.5 0.09 4.3 2013 75 to < 3700 kW

3.5 - <7.0 0.08 4.3 2012

(a) <75 kW engines at or above 0.9 L/cylinder are subject to the corresponding

75-3700 kW standards. (b) Option: 0.15 g/bhp-hr PM / 4.3 g/bhp-hr NOx+HC in 2014. (c) Converted emission standards from 40 CFR part 1042, which are expressed in g/kW-hr to g/bhp-hr by the following: g/kW-hr (0.746) = g/bhp -hr.17 Table 5: U.S. EPA Tier 3 Standards for Marine Diesel Category 2 Engines below 3700 kW a,b

L/Cylinder Rated kW PM g/bhp- hr c NOx+HC

g/bhp- hr c Model

Year

<2000 0.10 4.6 2013 7 - <15 ≥ 2000 0.10 5.8 2013

15 - <20 a <2000 0.25 5.2 2014

20 - <25 a <2000 0.20 7.3 2014

25 - <30 a <2000 0.20 8.2 2014
(a) No Tier 3 standards apply for Category 2 engine s with per-cylinder displacement above 15.0 liters if maximum engine power is at or above 2000 kW. See “Tier 4 Marine Engine Emission Standards” for the standards that apply fo r these engines. (b) For Category 2 engines at or above 1400 kW, opt ional Tier 3 and Tier 4 standards are available with some manufacturer restrictions, PM / NOx+HC at 0.10 / 5.8 g/bhp-hr in 2012,

with Tier 4 standards in 2015. (c) Converted emission standards from 40 CFR part 1 042, which are expressed in g/kW-hr to g/bhp-hr by the following: g/kW-hr * (0.746) = g/b hp-hr.

(78) “Tier 4 Marine Engine Emission Standards (Tier 4 standards)” means the U.S. EPA marine engine Tier 4 emission standards, a s promulgated by U.S. EPA

and set forth in “Final Rule: Control of Emissions of Air Pollution from Locomotive and Marine Compression-Ignition Engines Less Than 3 0 Liters Per Cylinder” (73 FR 25245 et seq., May 6, 2008) (40 CFR Part 104 2), both of which are incorporated herein by reference. Table 6 summariz es the Tier 4 standards from

40 CFR Part 1042.18 Table 6: U.S. EPA Tier 4 Standards for Marine Dies el Category 1 and Category 2 Engines above 600 kW

(a) Converted emission standards from 40 CFR part 1 042, which are expressed in g/kW-hr to g/bhp-hr by the following: g/KW-hr (0.746) = g/bhp -hr (b) Optional compliance start dates may be used wit hin these model years; see 40 CFR part

1042. (c) For Category 2 engines at or above 1400 kW, opt ional Tier 3 and Tier 4 standards are available with some manufacturer restrictions, PM / NOx+HC at 0.10 / 5.8 g/bhp-hr in 2012,

with Tier 4 standards in 2015. (d) The Tier 3 PM standards continue to apply for Category 1 and Category 2 engines with percylinder displacements below 15.0 liters in model y ears 2014 and 2015 only. For Category 2 engines with per-cylinder displacement at or above 15.0 liters, the PM standard is 0.25 g/bhphr for engines at or above 2000 kW and below 3300 k W, and 0.20 g/bhp-hr for engines at or above 3300 kW and below 3700 kW, in model years 201 4 and 2015 only.

(79) “Total Hydrocarbons (THC)” or “Hydrocarbons (H C)” means the total mass of open chain and cyclic hydrocarbon molecules.

(80) “Towboat” means any self-propelled vessel enga ged in or intending to engage in the service of pulling, pushing, or hauling along s ide barges or other vessels, or any combination of pulling, pushing, or hauling alo ng side barges or other

vessels.

(81) “Tugboat” means any self-propelled vessel enga ged in, or intending to engage in, the service of pulling, pushing, maneuvering, berth ing, or hauling along side other vessels, or any combination of pulling, pushi ng, maneuvering, berthing or hauling along side such vessels in harbors, over th e open seas, or through rivers and canals. Tugboats generally can be divided into three groups: harbor or short-haul tugboats, ocean-going or long-haul tugbo ats, and barge tugboats. “Tugboat” is interchangeable with “towboat” and “pu sh boat” when the vessel is used in conjunction with barges.

(82) “Verification Procedure, Warranty and In-Use C ompliance Requirements for In-Use Strategies to Control Emissions from Diesel Engines (Verification Rated kW L/Cylinder PM g/bhp- hr a NOx

g/bhp- hr a HC

g/bhp- hr a Model Year

<15.0 0.09 1.3 0.14 2014 b

15.0 to

<30.0 0.19 1.3 0.14 2014 b At or above 3700 kW

all 0.04 1.3 0.14 2016 b

2000 to <3700 kW all 0.03 d 1.3 0.14 2014 b,c,d

1400 to <2000 kW all 0.03 1.3 0.14 2016 b,c

600 to <1400 kW all 0.03 1.3 0.14 201719

Procedure)” means the ARB regulatory procedure codi fied in title 13, CCR, commencing with section 2700

, which is incorporated herein by reference, that engine manufacturers, sellers, owners, or operators may use to verify the

reductions of diesel PM or NO

x from in-use diesel engines through the use of a particular diesel emission control strategy.

(83) “Verified Diesel Emission Control Strategy (VD ECS)” means an emission control strategy, designed primarily for the reduction of d iesel PM emissions, which has been verified pursuant to the “Verification Procedu re for In-Use Strategies to Control Emissions from Diesel Engines” in title 13, CCR, commencing with

section 2700. VDECS can be verified to achieve Lev el 1 diesel PM reductions (25-49 percent), Level 2 diesel PM reductions (50-8 4 percent), or Level 3 diesel PM reductions (85 percent or greater). VDECS may a lso be verified to achieve

NOx reductions.

(84) “Vessel” or “Marine Vessel” means any tugboat, tanker, freighter, passenger ship, barge, or other boat, ship, or watercraft, ex cept those used primarily for

recreation.

(85) “Work Boat” means a self-propelled vessel that is used to perform duties such as fire/rescue, law enforcement, hydrographic surveys, spill/response, research, training, and construction (including drilling).20

(e) Fuel Use and Engine Emission Requirements.

[Note: The plain English narrative in this overvie w is intended as a convenient guide for the reader and in no way adds, deletes, m odifies, or otherwise affects the legal requirements and substantive provisions s pecified in subsection (e) or any other part of this section. Subsection (e) set s forth the various fuel and emission requirements for harbor craft subject to t his regulation, and can be

broken down as follows:

• Subsection (e)(1) specifies low sulfur fuel use re quirements that apply to all harbor craft, new and in-use.

• Subsection (e)(2) specifies the requirement for in stalling hour-meters on all harbor craft, new and in-use.

• Subsection (e)(3) establishes requirements that ap ply to transactions involving new engines to be installed on in-use ves sels, including a limited 6-month “sell-through” provision for non-complying engines.

• Subsection (e)(4) sets forth requirements that app ly to newly acquired new harbor craft, including ferries.

• Subsection (e)(5) sets forth requirements that app ly only to newly acquired new ferries, above and beyond those established in subsection (e)(4). These provisions include requirements for applying Best Available Control Technology (BACT) to new ferries and their engines.

• Subsection (e)(6) is the key provision of this reg ulation, as it achieves emission reductions by requiring the eventual repla cement or cleanup of engines in the fleet of in-use ferries, excursion v essels, tugboats, towboats, push boats, and multipurpose harbor craft . This subsection requires that owners and operators eventually repla ce or otherwise bring into compliance with the specified engine standards all of their pre-Tier 1 and Tier 1-certified engines in their in-use vessel s by the dates shown in the specified compliance schedules. The compliance dates are designed to clean up the fleet’s oldest and dirtiest engines first, while giving more time for relatively newer, Tier 1 engines to be upg raded or replaced. Vessels with their homeport in the SCAQMD have an a ccelerated compliance schedule to reflect that district’s grea ter need for expedited emission reductions. The compliance schedules are grouped by vessel type, location of the vessel’s homeport, the engine ’s model year, and the engine’s annual hours of operation.

• Subsection (e)(6)(E) provides for a limited set of circumstances under which the E.O. may grant short extensions to the co mpliance dates if warranted.]21

(1) All Harbor Craft – Low Sulfur Fuel Use Requirement.

Beginning January 1, 2009, a person subject to this section may only fuel a diesel engine on a harbor craft with one of the fol lowing:

(A) CARB diesel fuel; or (B) an alternative diesel fuel as defined in subsec tion (d)(2); or (C) any alternative diesel fuel that does not meet subsection (e)(1)(B) above but is certified by CARB as meeting the requirements of the Verification Procedure; or (D) CARB diesel fuel used with fuel additives that meet the requirements of the Verification Procedure; or (E) any combination of subsection (e)(1)(A) through (D) above.

(2) All Harbor Craft – Installation and Use of Non-Rese ttable Hour Meters.

Beginning January 1, 2009, a person subject to this section may not operate a harbor craft without an installed and properly oper ating, non-resettable hour meter, which accurately measures the number of hour s an engine operates. The hour meter must be installed on each diesel engine on the vessel in a manner that allows reasonable personnel access to the hour meter without impediment.

(3) All In-Use Harbor Craft – Requirements for Newly Ac quired Engines.

Beginning January 1, 2009, a person subject to this section may not sell, purchase, offer for sale, lease, rent, import, or o therwise acquire a new or in-use diesel engine for an in-use harbor craft, which is intended to operate or actually operates in any of the Regulated California Waters, unless that engine on the date of acquisition:

(A) is certified to meet the Tier 2 or Tier 3 stand ards in effect on that date for a new engine of the same power rating and displacemen t. The newly acquired engine is not required to meet the Tier 4 standards unless it is replacing an engine on the in-use vessel that was c ertified as meeting Tier 4 standards; or

(B) is newly acquired within the allowable 6 month “sell-through” period, as set forth in this paragraph. For purposes of this para graph only, the allowable sell-through period runs through 6 months after the date the Tier 2, Tier 3, or

Tier 4 standards have come into effect for a new en gine of the same power rating and displacement as the engine being replace d on the in-use vessel. Engines that are subsequently sold, supplied, offer ed for sale, or otherwise newly acquired after the 6 month sell-through perio d are subject to the requirements specified in paragraph (A) of this sub section, even if the engine was previously newly acquired within the 6 m onth sell-through period.22

(4) All New Harbor Craft (Including All New Ferries) – Requirements for Newly Acquired Vessels.

Beginning January 1, 2009, a person subject to this section may not sell, purchase, offer for sale, lease, rent, import, or o therwise acquire a new harbor craft for use in any of the Regulated California Wa ters unless each of the diesel engines on the vessel meets the applicable Tier 2, Tier 3, or Tier 4 standards in effect on the date of vessel acquisition. The pers on must also meet the additional requirements set forth in subsection (e) (5) below for diesel propulsion engines in newly acquired new ferries.

(5) Selected New Ferries Only – Additional Requirements for All Newly Acquired Propulsion Engines.

(A) Beginning January 1, 2009, a person subject to this section may not sell, purchase, offer for sale, import, or otherwise acqu ire a new ferry with the capacity to transport 75 or more passengers for use in any of the Regulated California Waters unless each propulsion diesel eng ine on the vessel:

1. meets either the Tier 2 or Tier 3 standards that are in effect on the date of vessel acquisition; and

2. will be operated only in conjunction with the us e of Best Available Control Technology (BACT), as determined and pre-ap proved by the E.O. pursuant to this provision.

(B) In lieu of installing or using BACT pursuant to paragraph (A)2 above, the person may comply with paragraph (A)2 by installing on the new ferry a propulsion engine(s) that is certified to the Tier 4 standards, if a Tier 4- certified engine is available at the time that the new ferry is delivered. If no Tier 4-certified engines are available at the time of ferry delivery, the person must meet the provisions of paragraphs (A)1 and (A) 2.

(C) For purposes of this section, “BACT” is the die sel emission control strategy (DECS), whether verified or unverified pursuant to 13 CCR section 2700 et seq., that is determined by the E.O. as meeting all of the following criteria:

1. it provides or is expected to continuously provi de the greatest reduction

feasible of NOx or diesel PM when used with the fer ry’s propulsion diesel engine;

2. the use of BACT does not result in an increase o f 10 percent or more of any air pollutant, including NOx and diesel PM, rel ative to the engine’s emissions of that air pollutant without the use of BACT; and23 3. either the DECS manufacturer or an authorized de aler of the DECS determines or otherwise agrees with the E.O. that u se of the DECS on or with the new ferry’s propulsion engine(s) would not invalidate or otherwise adversely affect the propulsion engine’s original warranty.

For purposes of this section, DECS may include, but is not be limited to,

exhaust treatment controls and the use of alternati ve fuels or fuel additives.

(D) The E.O. shall determine the appropriate level of BACT and specify such BACT in an Executive Order granting such approval. Applications to comply with the requirements of paragraph (A)2 by using BA CT must follow the application and review procedure set forth below:

1. Application Process.

For all new ferries for which the keel is laid on or after January 1, 2009, the application for BACT approval must be submitted in writing to the

E.O. for evaluation before the keel is laid. The B ACT application must contain, at a minimum, the following information:

a. the applicant company’s name, address, and conta ct information;

b. information specific to the harbor craft and eng ine(s) on which BACT will be used, including the vessel name and identif ication number(s); engine make, model, and serial numbers; and all oth er information that uniquely identify the engine;

c. certification documentation, engineering calcula tions, emissions test data, or other information that establishes the die sel PM and NO

x emissions of the engine in combination with the pro posed BACT.

Emissions and emission reduction estimates must inc lude both diesel

PM and NO

x

emissions and be expressed in grams per brake horsepower-hour (g/bhp-hr) unless otherwise specifi ed by the E.O. Information submitted pursuant to this provision wi ll be used as

follows:

i. The E.O. shall use the information to compare th e emissions resulting from the proposed use of BACT with the em issions quantified in BACT determinations previously approv ed by the E.O.; ii. If there are no previous BACT determinations av ailable for comparison, the E.O. shall use ARB staff’s best eng ineering judgment to determine if the proposed BACT provides the greatest feasible reduction of diesel PM or NOx; an d iii. The E.O. may require the applicant to submit a dditional emissions data for other air pollutants if the E.O. believes that the proposed24 use of BACT may increase any air pollutant by 10 pe rcent or more relative to the engine emissions without the p roposed BACT; and

d. the proposed recordkeeping, reporting, monitorin g, and testing procedures that the applicant plans to use to demon strate continued

effectiveness of the BACT.

2. E.O. Review and Final Decision-Making Process.

a. Within 15 days after receiving a BACT applicati on, the E.O. shall notify the applicant whether the application is dee med sufficiently complete to proceed with further evaluation. If th e application is deemed incomplete, the notification must identify t he application’s

deficiencies. The E.O. shall have an additional 15 -day period for reviewing each set of documents or information subm itted in response to an incomplete determination. Nothing i n this subsection prohibits the E.O. from requesting additional infor mation from the applicant, during any part of the BACT application process, which the E.O. determines is necessary to evaluate the applic ation.

b. Within 30 days of deeming an application comple te, the E.O. shall take final action to either approve or deny a BACT application, and the E.O. shall notify the applicant accordingly. I f the application is denied or modified, the E.O. shall state the reason s for the denial or

modification in the notification. The E.O. shall s pecify all terms, conditions, and requirements the E.O. believes are necessary for the ferry engine and BACT to operate properly and reduc e emissions of air pollutants consistent with this section. The r eporting and recordkeeping requirements specific to the use of B ACT must
include, at a minimum:

i. hours of operation for the engine and BACT and f uel usage; ii. usage of any alternative fuels, additives, ag ents, flow rates, and

emission test results; iii. maintenance procedures for the engine(s) and its BACT; and iv. any other measurements or recordings specifie d by the E.O.

The E.O. shall make the approval/disapproval noti fication to the applicant and identification of the approved/disapp roved BACT available to the public on ARB’s internet site.

3. Post-Approval Vessel, Engine, and BACT Operation

.

A person subject to this provision must maintain op erating records and other information in the manner and form specified by the E.O. in the25 BACT approval. The person must submit to ARB upon request all records and reports created pursuant to this provis ion, which must be maintained and retained for ARB inspection a minimu m of three years after the records or reports were created.

(6) In-Use Engines and Vessels – Schedules for Meeting Tier 2 or Tier 3 Standards.

(A) For Pre-Tier 1 and Tier-1 Certified Engines on Ferr ies, Excursion Vessels, Tugboats, Towboats, Push Boats, and Multipurpose Ha rbor Craft Only.

1. Applicability

.

This subsection (e)(6) applies to any person who ow ns, operates, sells, purchases, offers for sale, leases, rents, imports, or otherwise acquires an in-use ferry, excursion vessel, tugboat, towboat , push boat, or multipurpose harbor craft with a pre-Tier 1 or Tier -1 certified engine for use in any of the Regulated California Waters. Thi s subsection applies to all such engines on all such vessels.

2. General Requirement.

After January 1, 2009, a person subject to this pro vision may not own, operate, sell, purchase, offer for sale, lease, ren t, import, or otherwise acquire an in-use engine, or a vessel with an in-us e engine, unless that engine complies with at least one of the compliance methods set forth in subsection (e)(6)(C) by the applicable compliance d ate. The compliance methods set forth in subsection (e)(6)(C) involve e ither replacement of the in-use engine with a cleaner engine or demonstr ating that the in-use engine already meets specified standards, as set fo rth below.

For purposes of this subsection, “applicable compli ance date” is either the compliance date, as set forth in subsection (e) (6)(D) for the in-use engine, or the compliance date from subsection (e)( 6)(D) for the in-use engine, as extended pursuant to subsection (e)(6)(E ), whichever applies

and occurs later.

(B) [Reserved for Future Use]

(C) Compliance Methods.

1. Method C1 – Replacement of the in-use engine with a U.S. EPA certified Tier 2 engine or one with a higher certification le vel (e.g., Tier 3- certified).

A person may comply under this method by replacing the in-use engine with a Tier 2- or Tier 3-certified engine, as set f orth in this paragraph.26 The replacement engine must meet the U.S. EPA Tier 2 or Tier 3 standards that would apply to a new engine, of the same size and configuration as the in-use engine, at the time of the applicable compliance date set forth in subsection (e)(6)(D).

[Note: For example, if the applicable compliance da te is January 1, 2010, and the Tier 2 standards would be in effect a t that time for a new engine of the same size and configuration as the in -use engine, the replacement would need to meet Tier 2 standards. H owever, if the applicable compliance date is instead January 1, 20 13, and the Tier 3 standards would be in effect for a new engine of th e same size and configuration as the in-use engine, the replacement engine would need to meet Tier 3 standards.]

Once the in-use engine has been replaced with an en gine that is U.S. EPA-certified to meet Tier 2 or Tier 3 standards, a s set forth above, the engine is deemed to be in compliance with this subs ection (e)(6) and no further replacements of this engine are required un der this subsection. Tier 3-certified engines may be used as the replace ment engine to comply with this paragraph, even if Tier 4-certifie d engines become available by the applicable compliance date;

2. Method C2 – Demonstrate to the E.O.’s written satis faction that the inuse engine already meets the Tier 2 standards that apply or would apply to new engines on the date the Tier 2 standards bec ame effective.

a. A person may comply under this method by demonst rating to the

E.O.’s written satisfaction that:

i. the in-use engine already meets the Tier 2 st andards, ii. which apply to new engines of the same power rating and displacement as the in-use engine.

b. This compliance method is available only if the person makes the required demonstration before the date Tier 3 stand ards become effective for new engines of the same size and conf iguration as the in-use engine. The person may rebuild the in-use e ngine to a cleaner standard or implement a diesel emission con trol strategy to aid in meeting these standards. [Note: For example , if the Tier 3 standards would have become effective on January 1, 2015 for a new engine of the same size and configuration as th e in-use engine, the person would need to provide the Tier 2-complia nce demonstration to the E.O.’s written satisfaction by January 1, 2015.]27 c. For purposes of the demonstration, the person ma y, upon approval by the E.O., rely on any source of reliable and cre dible information, including but not limited to, any of the following:

i. the results from using the test method specified in section (j) or an alternative method approved by the E.O.; ii. the in-use engine manufacturer’s certification test data or other emissions test data for that in-use engine;

iii. emissions test data derived from another in-us e engine that is configured and used in a substantially similar way to the in-use engine; iv. emissions test data used to meet the regulatory requirements of

ARB’s Verification Procedure for the non-verified e mission control strategy implemented; or v. emissions test data used to meet the requirement s for U.S. EPA certification for systems providing remanufacture t o a cleaner

standard.

The E.O. may, in his/her sole discretion and based on good engineering judgment, exclude any information he/sh e determines is

not reliable or credible.

3. Method C3 – Demonstrate to the E.O.’s written satis faction that the inuse engine already meets the Tier 2 or Tier 3 stand ards in effect or would be in effect for new engines at the time of t he applicable compliance date.

a. A person may comply under this method by demonst rating to the

E.O.’s written satisfaction that:

i. the in-use engine already meets the Tier 2 or Ti er 3 standards, ii. which apply to new engines of the same power ra ting and displacement as the in-use engine, iii. at the time of the applicable compliance date for the in-use engine.

b. To comply with this method, the person may demon strate that the inuse engine meets the Tier 3 standards, even if Tier 4 standards come into effect by the applicable compliance date. The person may rebuild the in-use engine to a cleaner standard or implement a diesel emission control strategy to aid in meeting these s tandards.

c. For purposes of the demonstration, the person ma y, upon E.O. approval, rely on any source of reliable and credib le information, including but not limited to, any of the following:28 i. the results from using the test method specified in section (j) or an alternative method approved by the E.O.; ii. the in-use engine manufacturer’s certification test data or other emissions test data for that in-use engine;

iii. emissions test data derived from another in-us e engine that is configured and used in a substantially similar way to the in-use engine; iv. emissions test data used to meet the regulatory requirements of

ARB’s Verification Procedure for the non-verified e mission control strategy implemented; or v. emissions test data used to meet the requirement s for U.S. EPA certification for systems providing remanufacture t o a cleaner

standard.

The E.O. may, in his/her sole discretion and based on good engineering judgment, exclude any information he/sh e determines is

not reliable or credible.

4. Method C4 – Demonstrate to the E.O’s written satisfaction that the inuse engine has not and will not operate 300 or more hours per calendar

year.

A person may comply under this method by demonstrat ing to the E.O.’s written satisfaction that the engine is a low-use e ngine. This compliance method requires the person to provide records to th e E.O. of the engine’s total annual hours of operation for the ca lendar year immediately preceding the demonstration. The perso n must also provide documentation sufficient for the E.O. to pr oject future annual hours of operation for the engine. The person will be deemed in compliance with this method only if such records an d documentation

demonstrate to the E.O.’s written satisfaction that the in-use engine has not and will not operate 300 or more hours per cale ndar year.

(D) Compliance Dates.

Table 7 and Table 8 below set forth the compliance dates by which a person must meet the requirements of subsection (e)(6)(A). Table 7 applies only to vessels with a homeport outside of the SCAQMD; Tabl e 8 applies only to vessels with a homeport within the SCAQMD. The com pliance dates are set forth by engine model year and total annual hou rs of operation (for all uses) of the vessel in Regulated California Waters. For Table 7, Method D1, D2, or D3 below may be used for determining the actual or effective engine model year. For Table 8, only Method D1 or D3 may be used for determining the actual or effective engine model ye ar.29 1. Method D1 – the engine’s actual model year of manuf acture.

A person may determine an engine’s compliance date under this method by using the engine’s actual model year of manufact ure, as documented by the sales contract, invoice, purchase order, or other legitimate proof of purchase for the engine. The actual model year of manufacture may also be shown on a label permanently affixed to the engine by the

manufacturer. In the event of a conflict between t he proof of purchase and the permanent label, the date of manufacture sh own on the permanent label controls.

2. Method D2 – the engine’s effective model year based on the “Engine’s

Model Year + 5” method.

A person may determine an engine’s compliance date under this method by calculating the engine’s effective model year as the actual model year, using Method D1 above, and adding to that num ber 5 more years. To use this method, the person must use a diesel em issions control strategy (DECS) with the engine, as set forth below :

a. Relative to the emissions without the use of the DECS, the engine

with the DECS must be demonstrated to the E.O.’s wr itten satisfaction as emitting at least 25 percent less d iesel PM or NOx, and neither of those pollutants are increased by mo re than 10 percent. This requirement is met automatically if the DECS is a verified DECS (VDECS);

b. If the DECS is not a VDECS, the person must demo nstrate compliance with this paragraph by submitting to the E.O. emissions

data that demonstrate the non-verified emission con trol technology

achieves a diesel PM or NOx emission reduction of 2 5 percent or better, using the test methods specified in subsect ion (j). Upon approval of the E.O., the person may submit data de rived from the

use of other test methods to demonstrate to the E.O .’s written satisfaction the required 25 percent minimum emissi on reductions,

such as:

i. marine engine certification test data for the ha rbor craft propulsion or auxiliary engine, or engine manufacturer emissio ns test data; ii. emissions test data derived from another engine that is configured and used in a substantially similar way to the in-u se engine on which the emission control strategy is to be used; or iii. emissions test data used to meet the regulator y requirements of

the ARB Verification Procedure for the non-verified emission control strategy implemented.30 The E.O. may, in his/her sole discretion and based on good engineering judgment, exclude any data derived from the test methods under paragraph b above that he/she determi nes are not

reliable or credible.

A person’s use of a DECS or VDECS, which meets the requirements of this provision, extends the engine’s compliance date to the compliance date for a similar engine that is five m odel years newer (i.e., the actual model year for the engine with th e emissions control strategy + 5).

[Note: For example, the owner of a 1995 model year engine on a tugboat, which has a homeport outside of SCAQMD and operates in Regulated California Waters for 750 hours in 2013, would normally be required to meet a December 31, 2014 compliance date, as set forth in Table 7. However, if a DECS that meets th e requirements of this provision is implemented with this engine prio r to the 2014 nominal compliance date, the engine’s actual compli ance date would be extended to the compliance date for a 2000 model year engine (i.e., the effective model year = the 1995 model ye ar + 5). Accordingly, in that scenario, the engine’s effecti ve model year would extend the compliance date to December 31, 2016];

3. Method D3 – the engine’s effective model year based on the “Engine’s

Tier 1 Rebuild Model Year” method.

A person may determine an engine’s compliance date by demonstrating, to the E.O.’s written satisfaction, that the engine is an existing pre-2004 model year engine that was rebuilt to conform with U.S. EPA Tier 1 standards prior to January 1, 2008. If the E.O. is thus satisfied, the effective model year of the Tier 1 rebuilt engine, for purposes of determining the compliance date in Table 7 or Table 8, is the actual year

in which the Tier 1 rebuild occurred.31

Table 7: Compliance Dates for Vessels with Homepor ts Outside SCAQMD

[Note: For example, if a 1982-model year diesel eng ine on a tugboat operating in Regulated California Waters is used for 750 hours in 2011, the owner or operator must bring the engine into compliance wit h the requirements of subsection (e)(6)(C) by Decemb er 31, 2012.]. Engine Model Year Total Annual Hours of Operation Compliance

Date

1975 and earlier ≥ 1500 12/31/2009

1975 and earlier ≥ 300 and < 1500 12/31/2010

1976 - 1985 ≥ 1500 12/31/2011

1976 - 1985 ≥ 300 and < 1500 12/31/2012

1986 - 1995 ≥ 1500 12/31/2013

1986 - 1995 ≥ 300 and < 1500 12/31/2014

Ferries Only

1996 - 1999 ≥ 300 12/31/2014

Vessels Other Than

Ferries

1996 - 1999 ≥ 1500 12/31/2015

Vessels Other Than

Ferries

1996 - 1999 ≥ 300 and < 1500 12/31/2016

2000 ≥ 1500 12/31/2015

2000 ≥ 300 and < 1500 12/31/2016

2001 - 2002 ≥ 300 12/31/2017

2003 ≥ 300 12/31/2018

2004 ≥ 300 12/31/2019

2005 ≥ 300 12/31/2020

2006 ≥ 300 12/31/2021

2007 ≥ 300 12/31/202232

Table 8: Compliance Dates for Vessels with Homepor t in SCAQMD

[Note: For example, if a 1982-model year diesel eng ine on a tugboat operating in Regulated California Waters is used for 300 or more hours in 2009, the o wner or operator must bring the engine into compliance with the requirements of subsection (e)( 6)(C) by December 31, 2010.].

(E) Compliance Extensions.

Pursuant to this subsection (e)(6)(E), a person s ubject to the requirements of subsection (e)(6)(C) may request in writing to the E.O. an extension to a compliance date set forth in subsection (e)(6)(D) ( i.e., extension to the “nominal” compliance date). The E.O. may grant the person an extension to the nominal compliance date for any one of the reasons set fort h below. A person granted such an extension is deemed to be in compliance wit h the requirements of subsection (e)(6)(C) during the extension period, b ut only upon written authorization from the E.O. made pursuant to this p rovision and only until the end of the extension period. During the extension, the person must meet all other requirements of this section. Immediately upon the end of the extension period, the person must meet all the applicable requirement s of this section, including but not limited to, subsection (e)(6)(C).

Except as provided in paragraph (e)(6)(E)3 below, the E.O. may not combine compliance extensions granted pursuant to this prov ision with any other compliance date extensions, including those set for th in this provision and in subsection (e)(6)(D)2 and (D)3. And except as prov ided in paragraphs (e)(6)(E)2 and (e)(6)(E)3 below, under no circumstances may th e E.O. grant more than one compliance extension for any individual engine, set of engines, or harbor craft.

1. Change in Annual Hours of Operation

.

The E.O. may grant a one-time, maximum one year ext ension to the nominal compliance date set forth in subsection (e) (6)(D), provided the Engine Model Year Total Annual Hours of Operation Compliance Date

1979 and earlier > 300 12/31/2009

1980 – 1985 > 300 12/31/2010

1986 – 1990 > 300 12/31/2011

1991 – 1995 > 300 12/31/2012

1996 – 2000 > 300 12/31/2013

2001 > 300 13/31/2014

2002 > 300 12/31/2015

2003 > 300 12/31/2016

2004 > 300 12/31/2017

2005 > 300 12/31/2018

2006 > 300 12/31/2019

2007 > 300 12/31/202033 person demonstrates to the E.O.’s written satisfact ion that the all of the following have occurred:

a. The person reasonably determined the vessel engi ne’s nominal compliance date based on the engine’s hours of oper ation two years before the nominal compliance date; and

b. In the year immediately prior to the nominal com pliance date, the engine’s annual hours of operation increased signif icantly from the prior year such that the engine’s nominal complianc e date would have been accelerated from one compliance date to a n earlier compliance date.

[Note: For example, suppose an operator has a 1982 -model year engine on a tugboat, which has a homeport outside o f SCAQMD and operates for 750 hours in Regulated California Wate rs in 2010. If it is reasonable for the operator to assume the annual ho urs of operation in 2011 will be similar to 2010, the operator would pr oject from Table 7 that the engine’s compliance date is December 31, 2012, and would plan his operations accordingly. However, if the vessel eng ine’s operation increased substantially to 1600 hours in 2011, the engine normally would then have its compliance date accelerated to Decemb er 31, 2011, according to Table 7. The one-year extension would , therefore, extend the engine’s actual compliance date back to what it would have been without the change in hours of operation (i.e., bac k to December 31, 2012).].

2. No Suitable Engine Replacement for Harbor Craft

.

The E.O. may grant to a person a one year extension , which can be renewed annually, only if the person demonstrates t o the E.O.’s written

satisfaction that there is no suitable Tier 2-certi fied or Tier 3-certified replacement engine available anywhere that can be u sed in the person’s specific vessel, and the person cannot otherwise me et the requirements of subsection (e)(6)(C).

The E.O., in his/her sole discretion, may use any i nformation available to the E.O. to rebut the person’s demonstration. For purposes of this paragraph, the E.O. may deem an engine as suitable to replace an existing engine if the replacement engine is simila r in horsepower to the existing engine, the replacement engine can fit wit hin the vessel’s engine compartment, and installation of the replacement en gine would not

cause the vessel to violate U.S. Coast Guard or oth er applicable safety regulations. The E.O. may not consider the cost of the replacement engine, by itself or including installation and dow ntime costs, in determining its suitability as a replacement.34 The application for and issuance of an initial exte nsion and subsequent extensions pursuant to this paragraph are subject t o the following requirements:

a. For an initial extension and all subsequent annu al extensions to be granted pursuant to this paragraph, the E.O. shall follow the same procedures for applying, determining completeness, allowing public review and considering public comments, taking fina l action, and publishing E.O. decisions that are set forth in sub section (f) for Alternative Control of Emissions (ACE) applications ;

b. The E.O. shall consider all information submitte d by the public, including but not limited to, information related t o the availability of replacement engines suitable for the person’s vesse l;

c. Except for the engine(s) for which the extension is sought, the person must demonstrate that all other engines subject to the person’s direct control meet the requirements of subsection (e)(6);

d. The person must submit the application for an ex tension so that it is received by the E.O. no later than 6 months before the nominal compliance date of the engine for which the extensi on is requested;

e. The person must identify in the application each engine for which the extension is requested;

f. For each engine identified in paragraph 2 above, the person must provide in the application a detailed description o f the reasons and

factors that serve as the basis for the claim that no suitable replacement engine is available. This description must include, at a minimum, detailed engineering diagrams, calculation s, and citations to applicable U.S. Coast Guard regulations that sup port the person’s claim that there are no suitable replacement engine s available.

g. After the initial extension, the E.O. may grant additional one year extensions, provided the following requirements are met:

i. All procedures specified in paragraph (e)(6)(E )2.a and (e)(6)(E)2.b above are followed;

ii. The application for an additional extension dem onstrates the engines identified in paragraph (e)(6)(E)2.c remain in compliance with this section;35 iii. The application is received by the E.O. no soo ner than 6 months but no later than 2 months before the expiration of the previous extension; iv. The application identifies the engine(s) for wh ich the additional extension is requested; v. For each engine identified in paragraph (e)(6)(E )2.g.iv above, the person must provide in the application a detailed d escription of

the reasons and factors that serve as the basis for the claim that suitable replacement engines remain unavailable. T his description must include, at a minimum, detailed en gineering diagrams, calculations, and citations to applicable U.S. Coast Guard regulations that support the person’s claim t hat there are still no suitable replacement engines available.

3. Equipment Manufacturer Delays or Installation Diffi culties

.

Upon written request, the E.O. may grant to a perso n a 6-month extension to the nominal compliance date set forth in subsection (e)(6)(D), provided all the following criteria are met:

a. the person ordered the new replacement engine or other equipment necessary to comply with the requirements of subsection (e)(6)(C) prior to the nominal complianc e date set forth in subsection (e)(6)(D);

b. the purchase order identified in paragraph a abo ve was placed

with the manufacturer no later than 6 months before the engine’s nominal compliance date;

c. the new engine or equipment has not been receive d or installed since it was ordered due to manufacturing delays or excessive difficulties encountered by the engine or equipment installer; and

d. the applicant for the extension provides documen tation to the

E.O.’s satisfaction that demonstrates the criteria in subparts a. through c. above have been met. The E.O. may, in h is/her sole discretion, use any information available to rebut any of the documentation submitted pursuant to subparts a thro ugh c above.

4. Multiple Engines on Multiple Vessels Within Same Fl eet and With Same Compliance Dates.

This provision applies only to fleets of 2 or more vessels that are owned by the same person. Upon written request, th e E.O. may grant to the person an extension to the nominal com pliance date(s) for engines on vessels within such fleets, as set f orth below;36 a. For each set of engines on two or more vessels with compliance dates of 2009 or 2010 (a “set” means 2 or more engi nes), the E.O. may grant a one-time extension of the complian ce date to December 31, 2013, provided the E.O. receives and a pproves a compliance schedule from the person that meets the requirements set forth below:

i. The compliance schedule is received by the E.O. no later than December 31, 2009;

ii. For each year, up to and including 2013, that t he extension will be in effect, the compliance schedule must identify , at a minimum, the engines on specified vessels in the fl eet that will meet the requirements of subsection (e)(6)(C) withi n any given

year;

iii. The compliance schedule must show that all eng ines with compliance dates of 2009 or 2010 on the specified v essels in the fleet will be in compliance with subsection (e) (6)(C) by December 31, 2013. [Note: For example, an approvab le plan may show that 25% of these engines on the specified vessels in a fleet will be in compliance in 2010, 50% in 20 11, 75% in 2012, and 100% by December 31, 2013.]; and

iv. The compliance schedule must include all other information the E.O. deems necessary and appropriate for implem enting this provision.

b. For each set of engines on two or more vessels with a compliance date of 2011 or later (a “set” means 2 or more engi nes), the E.O. may grant to a person a one-time, maximum one-year extension of the nominal compliance date. To receive an exte nsion under this provision, the person must submit a written re quest to the E.O. that meets the following requirements:

i. The request must be received by the E.O. no late r than December 31st of the year immediately preceding the nominal compliance date for the set of engines; and

ii. The request identifies the engines in each set of engines and the vessels in the person’s fleet that are subject to the requested extension.

For all engines within a person’s fleet that have n ot been granted an extension pursuant to paragraphs a or b above, t he37 compliance dates for such engines remain as set for th in subsection (e)(6)(D).

(F) Special Provisions Applicable to the Use of a Diese l Emission Control Strategy (DECS), including Verified Diesel Emission Control Strategies (VDECS).

The following requirements apply to any person’s us e of a DECS pursuant to subsections (e)(5) or (e)(6) and are in addition to any other applicable requirements:

1. Once the DECS is installed or otherwise employ ed on a person’s vessel, the person must continue to operate and maintain th e DECS, in accordance with the manufacturer’s directions, to a chieve the original

level of emission reductions that the DECS was desi gned and intended to achieve;

2. In the event a DECS fails, breaks down, or is ot herwise damaged (collectively referred to hereinafter as “fail” or “failure”), the vessel owner or operator must, within 90 days of the DECS failur e, do at least one of the following:

a. repair the DECS to good working order;

b. replace the failed DECS with another working DEC S, if it cannot be repaired; or

c. employ another method that meets the requirement s of subsection (e)(6)(C) and other applicable provisions of this s ection, if the DECS cannot be repaired.

3. The determination in subpart 2.b and 2.c above o f whether a DECS cannot be repaired may only be made by either the D ECS manufacturer

or an authorized dealer.

4. For each replacement DECS installed under subpar t 2.b above, the person must provide to the E.O. the same documentat ion for the replacement DECS that was required for the DECS tha t failed, and the person must obtain the same E.O. approvals that wer e required with the

failed DECS.38

(f) Alternative Control of Emissions (ACE).

(1) Requirements

.

(A) The purpose of this subsection is to allow a pe rson (“person” or “applicant”) the option of complying with the requirements of th is subsection in lieu of the requirements of subsection (e). As set forth i n this subsection, a person may be deemed in compliance with subsection (e) by implementing an alternative emission control strategy(ies) (AECS) a pproved by the E.O. In no case may the E.O. approve an AECS that results i n or has the potential to result in any increase of diesel PM and NOx emis sions or any increase in emissions greater than 10 percent for any other pol lutant, relative to the emissions of diesel PM, NOx, and other pollutants t hat would have occurred under compliance with subsection (e).

(B) An applicant wishing to participate in an ACE m ay include one or more harbor craft in the ACE, but the applicant may only include harbor craft that the person owns or operates under the person’s dire ct control.

(C) No harbor craft may be included in more than one ACE plan.

(D) Harbor craft included in an ACE must continue to be included in and operated pursuant to the approved ACE for the durat ion of the ACE.

(E) AECS may include, but are not limited to, any c ombination of the following:

1. engine modifications; 2. exhaust treatment control; 3. engine repower; 4. use of alternative fuels or fuel additives; 5. shore-side power; 6. fleet averaging; and 7. any other measures that sufficiently reduce emis sions.

(F) A person complying under this provision must ob tain E.O. approval of an ACE application that demonstrates compliance with t his subsection and contains, at a minimum, the following information:

1. the company name, address, and contact informati on; 2. the harbor craft and engine(s) subject to the AC E, including the vessel name and identification number(s), engine make, mod el, and serial numbers, and other information that uniquely identi fy the engine; 3. documentation, calculations, emissions test data , or other information

that establishes the diesel PM and NO

x reductions, expressed in pounds, are equal to or greater than the emission r eductions that would have been achieved upon compliance with subsection (e), including but39 not limited to the requirements specified in subsec tion (e)(6)(C) and (e)(6)(D); and 4. the proposed recordkeeping, reporting, monitorin g, and testing procedures that the applicant will use to demonstra te continued compliance with the ACE.

(G) For each ACE, the emission reduction calculatio ns demonstrating equivalence with the requirements of subsection (e) may include only those

diesel PM and NO

x

emissions from harbor craft with its homeport with in a single specified California air district, or anothe r defined geographic area approved by the E.O.

(H) A person subject to an approved ACE must mainta in operating records in the manner and form as specified by the E.O as an e lement of any approved ACE. Required records must include, at a minimum:

1. all the reporting and recordkeeping requirements specified in subsections (g) and (h); 2. maintenance procedures; and

3. emissions test results.

A person subject to an approved ACE must retain rec ords and reports on each vessel or at an office at the vessel’s homepor t for the lifetime of each engine and must submit these records and reports to the E.O. in the manner specified in the approved ACE or upon request by th e E.O.

(I) Emission reductions included in an ACE may not include reductions that are otherwise required by any local, State, or federal rule, regulation, or statute, or that are achieved or estimated from equipment no t located in the region to which the ACE applies.

(J) A person subject to an approved ACE may not op erate any harbor craft under the ACE unless the person has first been noti fied in writing by the E.O. of the ACE’s approval. Prior to such approval , the applicant must comply with the provisions of this section, includi ng the requirements in subsection (e)(6)(C) and (e)(6)(D).

(2) Application Process.

(A) Applications for an ACE must be submitted in wr iting to the Executive

Officer for evaluation.

(B) The E.O. shall establish an internet site (“ACE internet site”) in which all documents pertaining to an ACE application shall be made available for public review. The E.O. shall also provide a copy of all such documents to each person who has requested copies of the documen ts; these persons40 shall be treated as interested parties. The E.O. s hall provide two separate public comment periods during the ACE application p rocess, as specified in subsection (f)(2)(D) and (f)(2)(E).

(C) Completeness Determination.

Within 15 days after receiving an ACE application, the E.O. shall notify an applicant whether the application is deemed suffici ently complete to proceed with further evaluation. If the application is dee med incomplete, the notification shall identify the application’s defic iencies. The E.O. shall have an additional 15-day period for reviewing each set of documents or information submitted in response to an incomplete determination. Nothing in this subsection prohibits the E.O. from requesti ng additional information from the applicant, during any part of the ACE appl ication process, which the E.O. determines is necessary to evaluate the ap plication.

(D) Notice of Completeness and 30-Day First Public Comment Period.

After an ACE application has been deemed complete, the E.O. shall provide a 30-day public comment period to receive comments on any element of the ACE application and whether the E.O. should approve or disapprove the ACE application based on the contents and merits of the application. The E.O. shall notify all interested parties of the fol lowing:

1. the applicant(s); 2. the start and end dates for the 30-day first com ment period; and

3. the address of the ACE internet site where the a pplication is posted.

The E.O. shall also make this notification availabl e for public review on the

ACE internet site.

(E) Proposed Action and 15-Day Second Public Commen t Period.

Within 30 days after the first public comment peri od ends, the E.O. shall notify the applicant and all interested parties of ARB’s proposed approval or disapproval. This notification shall propose to ap prove the application as submitted, disapprove the application, or approve t he ACE application with modifications as deemed necessary by the E.O. The notification shall identify the start and end dates for the 15-day sec ond public comment period.

During the second public comment period, any perso n may comment on the E.O.’s proposed approval or disapproval of the ACE application and any element of the application. The E.O. shall also ma ke this notification available for public review on the ACE internet sit e.41

(F) Final Action.

Within 15 days after the second public comment peri od ends, the E.O. shall take final action to either approve or deny an ACE application and shall notify the applicant accordingly. If the applicati on is denied or modified, the

E.O. shall state the reasons for the denial or modi fication in the notification. The notification to the applicant and approved ACE plan, if applicable, shall be made available to the public on the ACE internet site. In addition, the

E.O. shall consider and address all comments receiv ed during the first and second public comment periods, and provide response s to each comment

on the ACE internet site.

(G) Renewal of an Approved ACE.

An applicant may apply for renewal of an approved A CE by forwarding the E.O. updated information for all elements of the ap proved ACE for review and re-approval. The applicant must submit the ren ewal application so that the E.O. receives the application no later than 30 days prior to the end of the ACE compliance period.

(H) Notification to the E.O. of Changes to an Appro ved ACE.

A person with an approved ACE must notify the E.O. in writing within 30 days upon learning of any information that would alter the emissions estimates submitted during any part of the ACE appl ication process. If the E.O. has reason to believe that an approved ACE has been granted to a person that no longer meets the criteria for an ACE , the E.O. may, pursuant to subsection (f)(3) below, modify or revoke the AC E as necessary to assure that the applicant and subject vessel(s) meet the e mission reduction requirements in this section.

(3) Revocation or Modification of Approved ACEs.

With 30 days of notice of violation to the ACE hol der, the E.O. may revoke or modify, as needed, an approved ACE if any of the fo llowing apply:

(A) there have been multiple violations of the ACE provisions or the requirements of the approved ACE plan;

(B) the E.O. has reason to believe that an approved ACE has been granted that no longer meets the criteria or requirements for an ACE; or

(C) the person can no longer comply with the requir ements of the approved

ACE in its current form.42

Public notification of a revocation or modification of an approved ACE shall be

made available on the ACE internet site.

(g) Recordkeeping Requirements.

Beginning January 1, 2009, the owner or operator of a harbor craft must maintain the records specified in this subsection on the vessel or at the vessel’s homeport for the life of each engine subject to this section. The owner or operator must provide such records for inspection to an agent or employee of A RB upon request for all harbor craft subject to this section. Records may be provided a s a hard copy, electronic, or any alternative reporting strategy approved by the E.O. Records provided by the person under this provision must include, at a minimum, th e following:

(1) Owner or Operator Contact Information: (A) Company name; (B) Contact name, phone and fax number, address, e- mail address; (C) Address where vessel is registered; and (D) Reporting year.

(2) Vessel information: (A) Harbor craft name; (B) Specify vessel use(s) (ferry, excursion vessel, tugboat, ocean-going tugboat, towboat, push boat, work boat, commercial fishing vessel, charter fishing vessel, crew and supply vessel, pilot vesse l, or other if none of the preceding apply); (C) Vessel homeport; (D) Vessel build year; (E) U.S. Coast Guard documentation number; (F) California Fish and Game license number; (G) International Maritime Organization (IMO) numbe r; (H) Call Sign number; and (I) Maritime Mobile Service identity number.

(3) Engine Information (for each diesel engine on t he vessel): (A) Current hour meter reading; (B) Make of engine; (C) Model of engine; (D) Engine family (if applicable); (E) Engine serial number; (F) Year of manufacture of engine (if unable to det ermine, provide its approximate age); (G) Rated brake horsepower; (H) Total engine displacement; and (I) Number of cylinders.43

(4) Operational Information: (A) Describe the general use of engine (propulsion or auxiliary engine); (B) Total annual hours of operation, based upon rea dings of the non-resettable hour meters for previous calendar year per engine ( for engines without an hour meter before 2009, provide an estimate); (C) Estimated annual fuel usage per engine; and (D) Estimated percent operating time as a function of distance from shore at the

distances below:

1. 0-3 nautical miles; and 2. >3-24 nautical miles; and

3. >24 nautical miles from shore.

(5) Control Equipment (if applicable): (A) Type of diesel emission control strategy; (B) Manufacturer of installed diesel emission contr ol strategy; (C) Model of installed diesel emission control stra tegy; (D) Level of control – air pollutants controlled an d percent reductions; (E) Emission control serial number; and (F) Date control equipment installed.

(6) Maintenance records for each installed engine a nd diesel emission control strategy: (A) Hour meter reading at last top end rebuild (i.e ., less than full rebuild); (B) Hour meter reading at last full engine rebuild; and (C) Number of times full engine rebuild completed.

(7) The retirement date for each near-retirement ve ssel for which an owner or operator is claiming an exemption pursuant to subse ction (c)(13).

(8) For each engine for which the model year is det ermined using the “Engine’s Model Year + 5” method pursuant to subsection (e)(6 )(D)2:

(A) the name and contact information (representativ e, address, and phone number) for the manufacturer of the emission contro l strategy; (B) the name and type of emission control strategy; (C) the installation date of the emission control s trategy; and, (D) if a VDECS is not being used for this purpose, the test plan, and the data demonstrating the emission reductions achieved due to the emission control strategy.

(9) For each engine for which an owner or operator is claiming an extension pursuant to subsection (e)(6)(E)3, the purchase ord er or signed contract between the owner or operator and seller of the new engine or equipment that has been purchased to comply with subsection (e)(6)(C) and ( e)(6)(D).44

(10) For each engine an owner or operator claims to have replaced, written documentation that the engine has been dismantled o r destroyed.

(11) Records for each engine must be retained by th e owner or operator for the entire engine life.

(12) All records specific to an E.O. approved ACE p lan.

(13) All records specific to a BACT approved by the E.O. pursuant to subsection (e)(5).

(h) Initial and Compliance Plan Reporting Requirements.

(1) Initial Reporting of California Harbor Craft Fleet. By February 28, 2009, a person subject to this section must submit the information specified in subsections (g)(1) through (g)(6) for all harbor craft vessels in his/ her California fleet. For purposes of this paragraph, “California fleet” means the tot al population of harbor craft under the person’s direct control as of January 1, 2009.

(2) Compliance Plan. By February 28 of the year vessel engine complian ce is required, a person subject to the requirements of s ubsection (e)(6)(C) and (e)(6)(D) must submit a Compliance Plan to the E.O. that describes in detail the engine replacements, rebuilds, upgrades, use of DEC S, and any other measures the person plans to use to meet the requirements of subsection (e)(6)(C) and (e)(6)(D) for each of the person’s engines and harb or craft. The person may revise the Compliance Plan, as needed, but the pers on must notify the E.O. within 10 business days of any changes to the Compl iance Plan after the initial Compliance Plan is submitted. The Compliance Plan is for the E.O.’s informational and planning use only, and the substa ntive contents of the plan are not binding on either the E.O. or the person who su bmitted the Compliance Plan. The E.O.’s receipt and acceptance of a submitted Co mpliance Plan shall not constitute or be interpreted as evidence of complia nce with the requirements of subsection (e)(6)(C) or (e)(6)(D).

(3) Demonstration of Compliance . By no later than the applicable compliance date specified in subsection (e)(6)(D), a person subject to the requirements of subsection (e) must provide the following informati on to the E.O.:

(A) All information specified in subsections (g)(1) through (g)(6), and

(B) The implementation date and the emission contro l strategy implemented for each engine in accordance with the requirements of subsection (e)(6)(D) and (e)(6)(C), respectively, for purposes of demons trating compliance.45

(4) Reporting for Change of Annual Hours of Operation, Vessel Category/Use, Transfers of Vessels, or a Change of Ownership of V essel or Engine

.

(A) A person subject to this section must submit to the E.O. the information specified in subsection (g)(1) through (g)(6) withi n 30 days of a significant change of annual hours of operation (i.e., enough t o change the engine’s compliance date), vessel category/use, purchase, le ase, rental, or change of ownership of the vessel or engine. In the case of a purchase, lease, rental, or change in ownership, the party in contro l or possession of the engine or vessel after the transaction is responsib le for meeting the requirements of this paragraph;

(B) Within 90 days of a significant change of annua l hours of operation, vessel category/use, purchase, lease, rental, or change of ownership, or by the earliest applicable compliance date specified in su bsection (e)(6)(D), whichever is later, a person subject to subsection (e)(6) shall submit a new Compliance Plan with the updated information pursua nt to the Compliance Plan requirements specified in paragraph 2 above.

(i) Violations.

(1) A person who is subject to this section and com mits a violation of any provision, standard, criteria, or requirement in th is section is subject to the penalties, injunctive relief, and other remedies sp ecified in H&S section 42400 et seq.; H&S section 42402 et seq.; other applicable s ections in the Health and Safety Code; and other applicable provisions as pro vided under California law for each violation. Nothing in this section shall be c onstrued to limit or otherwise affect any applicable penalties or other remedies a vailable under federal law.

(2) Any failure to meet any provision, standard, cr iteria, or requirement in this section, including but not limited to the applicabl e emission limits; recordkeeping requirements; and ACE provision, incl uding the requirements of any approved ACE plans, shall constitute a single, separate violation of this section for each hour that a person operates a vess el within the Regulated California Waters until such provision, standard, c riteria, or requirement has been

met.

(3) A person who is subject to this section is liab le for meeting the requirements of this section, notwithstanding any contractual ar rangement that person may have with any third-parties.

(j) Methods to Demonstrate Compliance with Engine and F uel Standards.

(1) Diesel PM, NO

x , NO, CO, HC, NMHC, and CO 2 testing must be done in accordance with the applicable method specified in the following procedures: International Organization for Standardization (ISO ) 8178-2: 1996(E) (“ISO 817846

Part 2”); (2) ISO 8178-4: 1996(E) (“ISO 8178 Part 4 ”); and applicable methods and procedures specified in 40 CFR Part 94 (as amen ded in 2007), all of which are incorporated herein by reference.

(2) The E.O. may approve in writing any alternative test methods not specified in paragraph (1) above that the method’s proponent has demonstrated to the E.O.’s satisfaction provides equivalent or better results to the methods in paragraph (1).

(k) Right of Entry.

An agent or employee of the ARB has the right of e ntry to board any harbor craft for the purpose of inspecting propulsion and auxili ary engines, emission control strategies, fuel systems, and fuel storage; collect ing fuel sample(s) not to exceed one liter per fuel tank; and acquiring and inspecti ng records required pursuant to

this section.

(l) Severability

.

If any subsection, paragraph, subparagraph, senten ce, clause, phrase, or portion of this regulation is, for any reason, held invalid , unconstitutional, or unenforceable by any court of competent jurisdictio n, such portion shall be deemed as a separate, distinct, and independent pro vision, and such holding shall not affect the validity of the remaining port ions of the regulation.

(m) Submittal of Documents.

(1) All documents required under this regulation mu st be submitted to the Executive

Officer as follows:

California Air Resources Board Stationary Source Division

Emissions Assessment Branch Control Strategies Section, Harbor Craft

P.O. Box 2815 Sacramento, California 95812-2815

(2) Electronic submittals of information associated with compliance with this section may be approved by the E.O. upon request, provided such electronic submittals use digital signatures that meet the requirements s pecified in Government Code section 16.5. The E.O. may request the submittal o f a hard copy of any

electronic submittal.

NOTE: Authority cited: Sections 39600, 39601, 39650, 39658, 39659, 39666, and 41511, Health and Safety Code. Reference: Sections 39650, 39658, 39659, 39666, 41510, and 41511, Health and Safety Code.