TITLE 13. CALIFORNIA AIR RESOURCES BOARD

NOTICE OF PUBLIC HEARING TO CONSIDER THE ADOPTION OF

A PUBLIC TRANSIT BUS FLEET RULE AND

EMISSION STANDARDS FOR NEW URBAN BUSES

The Air Resources Board (the “Board” or “ARB”) will conduct a public hearing at the

time and place noted below to consider the adoption of a public transit bus fleet rule and

emission standards for new urban bus engines.

DATE: January 27, 2000

TIME: 9:30 a.m.

 PLACE: South Coast Air Quality Management District

Auditorium

21865 East Copley Drive

Diamond Bar, California

This item will be considered at a two-day meeting of the Board, which will commence at

9:30 a.m., January 27, 2000, and may continue at 8:30 a.m., January 28, 2000. This

item may not be considered until January 28, 2000. Please consult the agenda for the

meeting, which will be available at least 10 days before January 27, 2000, to determine

the day on which this item will be considered.

This facility is accessible to persons with disabilities. If accommodation is needed,

please contact the ARB’s Clerk of the Board at (916) 322-5594, or the

Telecommunications Device for the Deaf (TDD) at (916) 324-9531, or (800) 700-8326

for TDD calls from outside the Sacramento area by January 13, 2000.

INFORMATIVE DIGEST OF PROPOSED ACTION/PLAIN ENGLISH POLICY

STATEMENT OVERVIEW

Proposed Actions and Sections Affected:

Proposed amendments to section 1956.8 of title 13, California Code of Regulations

(CCR) and the incorporated “California Exhaust Emission Standards and Test

Procedures for 1985 and Subsequent Model Heavy-duty Engines and Vehicles,” and

proposed adoption of new sections 1956.1, 1956.2, 1956.3, and 1956.4 of title 13, CCR.

Background

Pursuant to Health and Safety Code section 43806, the ARB adopted amendments to

the emission standards and test procedures for urban transit buses and engines and

other heavy-duty vehicles and engines in June 1993 and June 1995, respectively. The

ensuing regulations set the California particulate matter (PM) emission standard at

0.05 grams per brake horsepower-hour (g/bhp-hr) and the oxides of nitrogen (NOx)

emission standard at 4.0 g/bhp-hr for all 1996 and later California urban bus engines.

For other heavy-duty engines (exclusive of urban transit buses), the PM and NOx
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emission standards for all 1998 and later California heavy-duty engines and vehicles,

were set at 0.10 and 4.0 g/bhp-hr, respectively. Since 1998, California and U.S. EPA

emission standards have been consistent for heavy-duty vehicles and urban buses.

To further reduce emissions, however, the U.S. EPA adopted regulations in October

1997 that specified more stringent emission standards for all 2004 and subsequent

model year heavy-duty diesel engines, including urban bus engines (Federal Register,

Vol. 62, No. 203, October 21,1997, pp.54694-54730). In April 1998, the ARB adopted

more stringent emission standards for all 2004 and subsequent model year heavy-duty

diesel engines that aligned with those already adopted by the U.S. EPA. Like the

federal standards, the California standards included a NOx plus non-methane

hydrocarbon (NMHC) emission standard of 2.4 g/bhp-hr; or 2.5 g/bhp-hr with a 0.5

g/bhp-hr NMHC cap.

Subsequent to the adoption of those regulations, the U.S. EPA, the ARB, and seven

manufacturers of heavy-duty engines signed the Heavy-duty Diesel Settlement

Agreements in 1998. The Settlement Agreements, applicable to engines produced for

sale in California, are a result of engine manufacturers using alternative emission

control devices that increased emissions of NOx beyond what would be expected on the

Federal Test Procedure. The Settlement Agreements require a variety of mitigating

measures, including requiring most engine manufacturers to produce engines meeting

the 2004 standards beginning in late 2002. Similar agreements, referred to collectively

as the federal Consent Decree, are applicable to engines produced for sale outside of

California.

The regulatory proposal summarized below focuses strictly on urban buses and does

not include requirements to reduce emissions from school buses. However, reducing

emissions from school buses and reducing students’ direct exposure to toxic diesel PM

is a high priority for the ARB. A shortage of grant funds to subsidize the purchase of

low-emission, alternative-fuel school buses and the necessary alternative-fuel

infrastructure has been a barrier to including school buses in this proposal. As part of

the ARB’s continuing efforts to achieve California’s air quality goals, it will consider a

separate proposal to reduce emissions from school buses at a later date.

Proposal

This regulatory proposal is intended to further reduce emissions of both ozone

precursors and toxic air contaminants from the California urban transit bus sector.

California is the only state that has the authority, under both state and federal law, to

establish motor vehicle standards different from federal standards. These standards

must be equivalent to or more stringent than the federal standards. This regulatory

proposal contains: a) a multi-component urban transit bus fleet rule applicable to transit

agencies; and b) more stringent emission standards for new urban bus engines

applicable to manufacturers of such engines.

I. Adopt a Fleet Rule for Urban Transit Bus Operators –

Section 1956.2, Title 13, CCR.
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The proposed urban transit bus fleet rule is designed to reduce ozone precursor

emissions (NOx and NMHC) and toxic air contaminants (diesel PM) by encouraging

transit agencies to purchase or lease low-emission, alternative-fuel urban buses. To

provide transit agencies with flexibility in determining their optimal fleet mix, the

proposed rule allows transit agencies to choose between two compliance paths, either

the diesel path or the alternative-fuel path. For transit agencies choosing the

alternative-fuel path, a minimum 85 percent of new bus purchases would have to be

low-emission, alternative-fuel buses, beginning with the adoption of the proposed

regulation through model year 2015. The proposed fleet rule contains six components:

1) a NOx fleet average requirement; 2) PM retrofit requirements; 3) low-emission bus

purchase requirements; 4) a zero-emission bus (ZEB) demonstration project; 5) ZEB

purchase requirements; and 6) requirements for transit agencies to use low-sulfur diesel

fuel. The NOx fleet average requirements, PM retrofit requirements, and low-sulfur

diesel fuel requirements are the same for transit agencies on either the diesel or

alternative-fuel path. The two paths differ in applicable emission standards (proposed

new section 1956.1, Title 13, CCR), ZEB demonstration project requirements, and ZEB

purchase requirements.

The table below summarizes the applicable fleet rule requirements proposed in section

1956.2, and the emission standards proposed in section 1956.1, for transit agencies on

both the diesel and alternative-fuel path.

Proposed Urban Transit Bus Fleet Rule Requirements

and Emission Standards

“Diesel” Path “Alternative-Fuel” Path

Model

Year

NOx (g/bhp-hr) PM (g/bhp-hr) NOx (g/bhp-hr) PM (g/bhp-hr)

2000 4.0 0.05 2.5 optional(1) 0.05

10/2002 2.5 NOx+NMHC 0.05 1.8

NOx+NMHC

optional(1)

0.03

10/2002 4.8 NOx fleet average 4.8 NOx fleet average

2003-09 PM Retrofit requirements PM Retrofit Requirements

7/2003 3 bus demo of ZEBs

for large fleets (>200)

2004 0.5 0.01

2007 0.2 0.01 0.2 0.01

2008 15% of new purchases are ZEBs

for large fleets (>200)

2010 15% of new purchases are ZEBs

for large fleets (>200)

Notes: Shaded area shows existing requirements and existing optional emission standards

(1) Although transit agencies on the alternative-fuel path are not required to purchase engines certified to

these optional standards, the staff expects that they will do so in order to qualify for incentive funding. At

present, the only alternative-fuel engines available are certified to optional, lower-emission NOx standards.
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In addition to the PM retrofit requirements proposed here, the U.S. EPA also has

requirements for an urban bus retrofit/rebuild program (40 CFR 85.1401 - 1415) as

required by the Clean Air Act Amendments of 1990. The program applies to 1993 and

earlier model year urban buses whose engines are rebuilt or replaced after January 1,

1995. The program is limited to urban buses operating in metropolitan areas with 1980

populations of 750,000 or more. The PM retrofit requirements proposed as part of this

urban transit bus fleet rule apply to all 2003 and earlier model year diesel urban buses,

with a delay for only small transit agencies (with an active fleet of less than 20 urban

buses) in ozone attainment areas.

California required new urban bus engines to meet a 0.10 g/bhp-hr PM standard in

1991, two years prior to the federal 0.10 g/bhp-hr PM went into effect. As a result, in

California, the federal retrofit requirements only apply to 1990 and earlier urban bus

engines. While the proposed urban transit bus fleet rule does include a retrofit

requirement for urban bus engines certified to 0.60 g/bhp-hr PM, which, in California,

are 1990 and earlier model year engines, it is anticipated that the proposed requirement

will be met by retiring the 0.60 g/bhp-hr PM engines, rather than retrofitting them.

A. 4.8 g/bhp-hr NOx Fleet Average Standard

In order to reduce NOx emissions from the in-use urban bus fleet, transit agencies on

both the diesel and alternative-fuel paths must meet and maintain a minimum fleet

average standard of 4.8 g/bhp-hr NOx by October 2002. The ARB staff expects that the

fleet average requirement can be achieved by most transit agencies simply by retiring

their pre-1988 buses and replacing them with new buses. Transit fleets on the

alternative-fuel path will have lower fleet average NOx levels than those on the diesel

path and most likely can continue doing business “as usual.” The ARB staff estimates

that the fleet average requirement will reduce NOx emissions statewide by more than

two tons per day (tpd) in 2002. However, most of the reduction in NOx emissions will

be occurring through normal fleet turnover and therefore this reduction is not considered

part of the cost-effectiveness determination.

B. PM Retrofit Requirements

The PM retrofit requirements, applicable to transit agencies on both the diesel and

alternative-fuel path, are intended to reduce toxic diesel PM emissions from existing

diesel buses and those model year buses up to the year 2004. Because the PM retrofit

requirements are not applicable to alternative-fuel buses, transit fleets on the

alternative-fuel path will have a smaller percentage of buses to retrofit. Below is the

schedule for the required PM retrofits. All retrofit devices must be certified by the ARB

to have an 85 percent or greater efficiency for reducing diesel PM. The staff estimates

that the retrofit requirements will reduce toxic PM emissions statewide by 300 pounds

per day (lbs/day) in 2005, and by 100 lbs/day in 2010.

TIER 1 – 1990 and Earlier Buses

100 percent of these buses must be retrofitted by January 1, 2003.

TIER 2 – 1991 through 1995 Buses

20 percent of these buses must be retrofitted by January 1, 2003.
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75 percent of these buses must be retrofitted by January 1, 2004.

100 percent of these buses must be retrofitted by January 1, 2005.

TIER 3 – 1996 through 2003 Buses

20 percent of these buses must be retrofitted by January 1, 2007.

75 percent of these buses must be retrofitted by January 1, 2008.

100 percent of these buses must be retrofitted by January 1, 2009.

C. Low-Emission Buses

Beginning January 1, 2004, transit agencies on the diesel path may not take delivery of

any buses certified to emission levels in excess of the following standards, as proposed

in Section 1956.1, Title 13, CCR:

Proposed Emission Standards for 2004-2006 Model Year Diesel or Dual-Fuel

Urban Bus Engines

 (g/bhp-hr)

NMHC Formaldehyde NOx PM CO

0.05 0.01 0.5 0.01 5.0

Engine manufacturers can choose to meet these standards with an engine certified at

the 2.5 g/bhp-hr standard and an applied aftertreatment system that demonstrates NOx

at 0.5 g/bhp-hr and PM at 0.01 g/bhp-hr. Manufacturers are responsible for full

certification of the base engine: durability, testing, in-use compliance, and emissions

warranty requirements. For the aftertreatment device, the ARB is proposing that

manufacturers have reduced certification requirements but full functional warranty

requirements. The staff estimates that the standards for 2004 – 2006 model year diesel

or dual-fuel urban bus engines will reduce NOx emissions statewide by 5 tpd and PM

emissions by 50 lbs/day in 2010. In 2020, the staff estimates that the standards will

reduce NOx emissions by 6 tpd and PM emissions by 60 lbs/day.

D. Zero-emission Bus Demonstration for Transit Agencies Choosing the Diesel Path

Transit agencies on the diesel path with more than 200 urban buses in their active fleets

must place at least three ZEBs in service by July 1, 2003, as required by the ZEB

demonstration project proposed in Section 1956.3, Title 13, CCR. At least one

manufacturer, Ballard Power Systems, expects to commercially produce ZEBs by 2002.

E. Zero-emission Bus Purchase

Transit agencies with more than 200 urban buses in their active fleets would be required

to purchase (or lease) ZEBs. For transit agencies on the diesel path, a minimum 15

percent of new urban bus purchases/leases must be ZEBs beginning in model year

2008. For transit agencies on the alternative-fuel path, a minimum 15 percent of new

urban bus purchases/leases must be ZEBs beginning in model year 2010. These

requirements would sunset in the model year 2015. This requirement, discussed in

Section 1956.3 below, is intended to provide long-term emission benefits and foster

significant advances in advanced, alternative-fuel technologies.
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F. Requirements for Low-Sulfur Diesel Fuel

Low-sulfur diesel fuel is necessary for most aftertreatment technologies to function more

efficiently and reliably. Therefore, the proposed urban transit bus fleet rule requires any

transit agency (on both the diesel and alternative-fuel paths) using diesel fuel to

purchase and use low-sulfur diesel fuel with a cap of 15 parts per million sulfur. The

requirement is effective beginning July 1, 2002, in order to comply with the proposed

PM retrofit requirements.

II. Adopt Zero-emission Bus Requirements – Section 1956.3, Title 13, CCR.

This proposed new section defines a ZEB as an urban bus certified by the Executive

Officer to produce zero exhaust emissions of any criteria pollutant (or precursor

pollutant) under any and all possible operational modes and conditions. This would

include hydrogen-powered fuel cell buses, electric trolley buses, and battery-electric

buses.

Under this regulatory proposal, transit agencies with more than 200 urban buses in their

active fleets would be required to purchase ZEBs. A minimum 15 percent of all new

bus purchases (or leases) must be ZEBs for transit agencies on the diesel path, from

model year 2008 through model year 2015. For transit agencies on the alternative-fuel

path, the 15 percent ZEB purchase/lease requirement begins in model year 2010 and

also ends in model year 2015.

Additionally, transit agencies on the diesel path with more than 200 urban buses in their

active fleets must participate in a ZEB demonstration project. Such transit agencies

would be required to place at least three ZEBs in service by July 1, 2003. The

proposed regulation also includes provisions for multiple transit agencies in the same air

basin to participate in a joint ZEB demonstration project, based on approval of the

Executive Officer.

III. Adopt California Exhaust Emission Standards and Test Procedures for

1985 and Subsequent Model Year Heavy-Duty Urban Bus Engines and

Vehicles -- Section 1956.1, Title 13, California Code of Regulations (CCR).

For 2007 and all subsequent model year urban bus engines, the proposed emission

standards for NMHC, formaldehyde, NOx, PM, and carbon monoxide (CO) are shown in

the table below.

Proposed Emission Standards for 2007 and Subsequent Model Year

Urban Bus Engines

 (g/bhp-hr)

NMHC Formaldehyde NOx PM CO

0.05 0.01 0.2 0.01 5.0

These standards are expected to reduce NOx emissions statewide by less than one ton

per day in 2010 and by just over one ton per day in 2020. There is no PM emission
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benefit associated with the 2007 standards since the PM emission standard does not

change from 2004. The U.S. EPA is expected to adopt equivalent emission standards

for heavy-duty engines and vehicles, including urban buses, for the 2007 model year.

In addition to the proposed emission standards for 2007 and subsequent model year

urban bus engines, the staff is proposing new emission requirements for the 2004 –

2006 model year diesel or dual-fuel urban bus engines, as discussed in the previous

section on fleet rule requirements.

IV. Adopt Reporting Requirements for Urban Transit Bus Operators – Section

1956.4, Title 13, CCR.

Under the provisions of the proposed urban transit bus fleet rule, transit agencies are

required to submit reports containing plans and schedules for compliance with the urban

transit bus fleet rule. This proposed new section specifies the required reports and the

dates on which they are due.

V. Amend the California Exhaust Emission Standards and Test Procedures for

1985 and Subsequent Model Heavy-Duty Engines and Vehicles – Section

1956.8, Title 13, CCR.

The amendments to this section remove from Section 1956.8 the urban bus exhaust

emission standards, which are now included in Section 1956.1, Title 13, CCR. In

addition, the amendments change the heavy-duty vehicle (exclusive of urban buses)

optional emission standards used for generating mobile source emission reduction

credits to reflect changes to the emission standards for 2004 model year engines and

vehicles based on provisions in the Settlement Agreements.

AVAILABILITY OF DOCUMENTS AND CONTACT PERSON

The Board staff has prepared a Staff Report: Initial Statement of Reasons (Staff

Report) entitled “Proposed Regulation for a Public Transit Bus Fleet Rule and Emission

Standards for New Urban Buses” that includes a summary of the environmental impacts

of the proposal, if any. Copies of the Staff Report and the full text of the proposed

regulatory language may be obtained from the Board’s Public Information Office, 2020 L

street, Sacramento, California, 95814, (916) 322-2990, at least 45 days prior to the

scheduled hearing. In addition, the Board staff has compiled a record, which includes

all information upon which the proposal is based. This material is available for

inspection upon request to the contact person identified below. Copies of the

documents may also be obtained from the Public Information Office at the address

above.

The ARB has determined that it is not feasible to draft the regulation in plain English

due to the technical nature of the regulations; however, a plain English summary of the

proposed regulation is available from the agency contact person named in this notice,

and/or is also contained in the Staff Report for this regulatory action.
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To obtain this document in an alternative format, please contact the ARB’s Americans

with Disabilities Act Coordinator at (916) 323-4916, or TDD (916) 324-9531, or

(800) 700-8326 for TDD calls from outside the Sacramento area.

Inquiries regarding this matter should be directed to Mr. Robert Nguyen at

(916) 327-2939 or rnguyen@arb.ca.gov, or to Ms. Roberta Hughan at (916) 324-7583

or rhughan@arb.ca.gov, in the Special Projects Section, Mobile Source Control

Division.

COSTS TO PUBLIC AGENCIES AND TO BUSINESSES AND PERSONS AFFECTED

The determinations of the Board’s Executive Officer concerning the costs or savings

necessarily incurred in reasonable compliance with the proposed regulations are

presented below.

The Executive Officer has determined that the proposed regulatory action will create

costs, as defined in Government Code section 11346.5(a)(6), for transportation planning

agencies and commissions (the entities that fund transit agencies), and transit agencies

statewide. The Executive Officer has also determined that the proposed regulatory

action will not create additional costs or savings, as defined in Government Code

section 11346.5(a)(6) to any state agency or in federal funding to the state, costs or

mandates to any other local agency or school district whether or not reimbursable by

the state pursuant to Part 7 (commencing with section 17500), Division 4, Title 2 of the

Government Code, or other nondiscretionary costs or savings imposed upon local

agencies. The proposed regulatory action does not impose a mandate on local

government agencies that are required to be reimbursed by Section 6 of Article XIII B of

the California Constitution.

The costs created for transportation planning agencies and transit agencies statewide is

due to the proposed requirements for a NOx fleet average standard, the proposed

requirements to retrofit existing engines to reduce PM emissions, the proposed

requirements for low-sulfur diesel fuel, and the proposed requirements for new bus

purchases. The following discussion provides a summary of the expected costs to

agencies for compliance with the proposed regulatory action.

Fleet NOx Average Emission Requirements

The ARB staff projects that most transit agencies will comply with the fleet average NOx

emission standard by retiring 1987 model year and earlier buses and by replacing them

with new buses meeting more stringent standards. The ARB staff anticipates that in

most cases, transit agencies will be able to obtain sufficient funding from available local,

state, and federal sources to purchase the new buses. As a result, no significant

additional costs to transit agencies are expected for compliance with the 4.8 g/bhp-hr

fleet average NOx emission standard in 2002. There may be, however, instances

where a transit agency is not able to obtain sufficient funds to purchase the new buses

necessary for compliance with the fleet average NOx emission standard. In these

cases, there will be some cost to transit agencies in complying with the fleet average

NOx emission standard through the use of retrofits or engine repowers.
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PM Retrofit Requirements

Under the proposed PM retrofit requirements, transit agencies are responsible for the

phased installation of PM retrofit devices that are certified with a conversion efficiency of

at least 85 percent. To provide sufficient time to accomplish the PM retrofit

requirements, they are divided into three Tiers. The ARB staff estimates that for Tier 1,

800 buses statewide will be required to be retrofitted at a cost of $3,000 per bus. For

Tier 2, staff estimates that 1,500 buses will be required to be retrofitted also at a cost of

$3,000 per bus. For Tier 3, staff estimates that 2,200 buses will be required to be

retrofitted at a moderately lower cost of $2,250 each. The table below provides

estimated costs for a “typical” 200-bus fleet, as well as statewide costs.

Average Annual Cost of PM Retrofit Requirements

(2003-2009)

“Typical “ 200-bus Fleet Statewide Transit Costs

Tier 1 (by 1/1/03) $50,000 $2,400,000

Tier 2 (by 1/1/05) $200,000 $4,500,000

Tier 3 (by 1/1/09) $300,000 $5,000,000

Total(average annual cost

2002-2008)

$80,000 $1,700,000

Low-sulfur Diesel Fuel Requirement

The ARB staff is proposing that by July 1, 2002, all diesel fuel used by transit agencies

must be low-sulfur diesel fuel. The incremental cost of the lower sulfur diesel fuel is

initially estimated to be five cents per gallon in this time frame for the quantities needed

to supply transit agencies within California. For a 200-bus fleet of entirely diesel buses,

the estimated incremental cost would be $120,000 per year. Total statewide annual

costs are expected to be approximately $3,000,000 in 2003, dropping to $2,000,000 by

2010 with the introduction of more alternative-fuel buses.

New Bus Purchase Requirements

The ARB staff projects that a total of about 420 buses will be purchased annually that

would meet the proposed 2004 model year emission standards of 0.5 g/bhp-hr NOx and

0.01 g/bhp-hr PM. The staff projects that about 440 buses will be purchased annually

that would meet the proposed 2007 model year emission standards of 0.2 g/bhp-hr NOx

and 0.01 g/bhp-hr PM. For large transit fleets (fleets greater than 200 urban buses), the

ARB staff estimates that 18 demonstration ZEBs will be purchased in 2004, 30

commercial ZEBs will be purchased in 2008, and 80 commercial ZEBs in 2010.

The incremental costs for the low-emission buses are estimated at $8,000 to meet the

proposed 2004 standards, and an additional $1,000 to meet the lower standards in

2007. For ZEB technology, staff estimates incremental costs at $275,000 per bus in

2002, $50,000 per bus in 2007, and a nominal incremental cost in 2010.
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Combining the total number of buses needed with the incremental cost allows the ARB

staff to calculate the total annual cost of the requirement. In 2004 - 2006, the total cost

of the program is $5,900,000, including the cost of the ZEB demonstration projects. In

2007 - 2009, this total becomes $5,300,000 per year. This total is reduced by

80 percent due to Federal Transit Administration (FTA) Section 5307 grants and results

in a cost to transit agencies of $1,200,000 per year in 2004 – 2006, and a cost of

$1,300,000 per year in 2007 - 2009. The estimated statewide incremental cost to transit

agencies in 2010 of $800,000 is attributable to the expected reductions in costs of ZEBs

in that timeframe.

Alternative-Fuel Buses

This section provides estimates of the costs that could be incurred if a transit agency

elects to go on the alternative-fuel path as a means of compliance with the proposed

regulation. Based on current fleet composition of transit agencies that have a significant

presence of alternative-fuel buses, the ARB staff estimates that about 300 alternativefuel buses would be purchased annually, which could increase to about 320 buses in

2007. Thus, the total incremental bus purchase cost to transit agencies, based on an

incremental cost of $40,000 per bus and an 83 percent fund match from FTA grants, is

about $2,200,000 per year. This cost is based on current purchasing trends from transit

agencies that already have a significant number of alternative-fuel buses in their fleets.

These transit agencies would be expected to continue to purchase alternative-fuel

buses in the absence of this proposed regulation. Incentive funding by state and local

air quality agencies has been available in the past to offset the incremental bus

purchase cost not covered by FTA grants. It is not clear whether sufficient funding will

continue to be available to offset the entire incremental purchase and infrastructure

costs. Based on information obtained from transit agencies that already have significant

numbers of alternative-fuel buses, operating costs vary significantly from one transit

agency to another. Some transit agencies have shown cost savings.

The Executive Officer has determined that the adoption of the proposed regulatory

action will not have a significant adverse economic impact on businesses, including the

ability of California businesses to compete with businesses in other states.

The Executive Officer has also determined that there will be no, or an insignificant,

potential cost impact, as defined in Government Code section 11346.5(a)(9), on private

persons or businesses directly affected resulting from the proposed action.

In accordance with Government Code sections 11346.3 and 11346.5, the Executive

Officer has determined that the proposed regulatory action is expected to have some

cost impact to any companies involved in the manufacture and production of engines

and transit buses. There are currently no urban bus engine manufacturers located in

California and only one urban bus manufacturer. The staff estimates that the cost of the

proposed regulation to engine and bus manufacturers would be less than $10,000 per

bus. The total impact on businesses in California will be determined by the extent to

which these companies choose to expand in California, as well as the extent to which

any increases in costs could be passed on to the final purchasers of engines and buses.

As an example, Ballard Fuel Cells has recently opened a research and development
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site in San Diego, California, to promote the use of fuel cell technology in passenger

cars and urban transit buses. This expansion is a result of the expected new business

opportunities created by the need for lower-emitting transportation technologies.

The Executive Officer has also determined, pursuant to Government Code section

11346.3, that the regulation will not have a significant adverse economic impact on

businesses or individuals. The directly affected California businesses include heavy

heavy-duty diesel or alternative-fuel urban bus engine manufacturers, urban bus

manufacturers, engine retrofit kit manufacturers, exhaust aftertreatment emission

control manufacturers, and manufacturers of advanced, alternative-fuel technologies,

such as batteries and fuel cells. Since there are no urban bus engine manufacturers

located in California and only one urban bus manufacturer in California, most impacts to

businesses, both positive and negative, will occur in other states. California transit

agencies are expected to absorb the increased costs associated with the proposed

regulations. However, there may be costs to bus riders in the form of higher fares if

transit agencies choose to pass the increased costs on to them.

Before taking final action on the proposed regulatory action, the Board must determine

that no alternative considered by the agency would be more effective in carrying out the

purpose for which the action is proposed or would be as effective and less burdensome

to affected private persons than the proposed action.

SUBMITTAL OF COMMENTS

The public may present comments relating to this matter orally or in writing. To be

considered by the Board, written submissions must be addressed to and received by

the Clerk of the Board, Air Resources Board, P.O. Box 2815, Sacramento, California,

95812, no later than 12:00 noon on January 26, 2000, or received by the Clerk of the

Board at the meeting.

The Board requests, but does not require, that 25 copies of any written comments be

submitted and that all written statements be filed at least 10 days prior to the hearing.

The Board encourages members of the public to bring to the attention of staff in

advance of the hearing any suggestions for modification of the proposed regulatory

action.

STATUTORY AUTHORITY AND HEARING PROCEDURES

This regulatory action is proposed under that authority granted in California Health and

Safety Code sections 39600, 39601, 43013, 43018, 43101, 43103, 43105, 43200,

43806, and Vehicle Code section 28114. This action is proposed to implement,

interpret, and make specific California Health and Safety Code sections 39002, 39003,

43000, 43009.5, 43013, 43018, 43100, 43101.5, 43102, 43103, 43104, 43105, 43106,

43107, 43200, 43204, 43205.5, and 43806.

The public hearing will be conducted in accordance with the California Administrative

Procedure Act, Title 2, Division 3, Part 1, Chapter 3.5 (commencing with section 11340)

of the Government Code.
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Following the public hearing, the Board may adopt the regulatory language as originally

proposed, or with nonsubstantial or grammatical modifications. The Board may also

adopt the proposed regulatory language with other modifications if the text as modified

is sufficiently related to the originally proposed text that the public was adequately

placed on notice that the regulatory language as modified could result from the

proposed regulatory action. In such an event, the full regulatory text, with the

modifications clearly indicated, will be made available to the public, for written comment,

at least 15 days before it is adopted. The public may request a copy of the modified

regulatory text from the Board’s Public Information Office, 2020 L Street, Sacramento,

California, 95814, (916) 322-2990.

CALIFORNIA AIR RESOURCES BOARD

Michael P. Kenny

Executive Officer

Date: November 30, 1999