TITLE 13. CALIFORNIA AIR RESOURCES BOARD 

NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED AMENDMENTS TO THE 

REGULATIONS FOR IN-USE OFF-ROAD DIESEL-FUELED FLEETS AND OFFROAD LARGE SPARK IGNITION ENGINE FLEET REQUIREMENTS

The Air Resources Board (ARB or Board) will conduct a public hearing at the time and 

place noted below to consider adoption of amendments to its regulations for In-Use 

Off-Road Diesel-Fueled Fleets (off-road regulation), California Code of Regulations 

(CCR), title 13, sections 2449 through 2449.3, and for Large Spark Ignition Engine Fleet 

Requirements (LSI fleet regulation), CCR, title 13, sections 2775 through 2775.2. This 

notice summarizes the specific amendments being proposed. The Staff Report: Initial 

Statement of Reasons (ISOR) presents the proposed amendments for both regulations 

and information supporting the adoption of the amendments in greater detail. 

DATE: December 16, 2010 

TIME: 9:00 a.m. 

PLACE: California Environmental Protection Agency 

Air Resources Board 

Byron Sher Auditorium 

1001 I Street 

Sacramento, California 95814 

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

at 9:00 a.m., December 16, 2010, and may continue at 8:30 a.m., on 

December 17, 2010. This item may not be considered until December 17, 2010. 

Please consult the agenda for the hearing, which will be available at least 10 days 

before December 16, 2010, to determine the day on which this item will be considered. 

INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT 

OVERVIEW

Off-Road Regulation

Sections Affected: Proposed amendments to California Code of Regulations, title 13, 

sections 2449, 2449.1, 2449.2, and 2449.3, the regulation for In-Use Off-Road Diesel 

Vehicles. 

Regulation Background 

The off-road regulation was originally approved by the Board on July 26, 2007, and 

became effective on June 15, 2008. Additional amendments were approved by the 

Board on December 11, 2008, and January 26, 2009, and became effective on 

January 8, 2010, and January 1, 2010, respectively. On February 20, 2009, the 

Governor signed Assembly Bill 8 2X (AB 8 2X) in which the Legislature added section 
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43018.2 to the Health and Safety Code, directing ARB to amend the off-road regulation. 

The Board approved the AB 8 2X amendments and additional minor amendments to 

the off-road regulation on July 23, 2009. The AB 8 2X became effective on 

December 3, 2009 (the AB 8 2X amendments were exempt from the Administrative 

Procedure Act and OAL review); the additional amendments approved by the Board in 

July 2009, became effective on August 15, 2010. 

The off-road regulation is intended to significantly reduce emissions of diesel particulate 

matter (PM) and oxides of nitrogen (NOx) from over 150,000 in-use off-road diesel 

vehicles that operate in California and consequently significantly reduce the public’s 

exposure to these pollutants and their byproducts. The off-road regulation is structured 

to achieve these environmental benefits by requiring fleet owners of in-use off-road 

diesel vehicles to modernize their fleets by accelerating the use of cleaner engines and 

exhaust retrofits in their vehicles. The off-road regulation was designed to support the 

Diesel Risk Reduction Plan to Reduce Particulate Matter Emissions from Diesel-Fueled 

Engines and Vehicles, which was adopted by the Board on September 30, 2000, as well 

as the 2007 State Implementation Plans (SIP) for the South Coast and San Joaquin 

Valley air basins. 

The scope of the off-road regulation is far reaching, affecting dozens of vehicle types 

used in thousands of fleets, in industries as diverse as construction, air travel, 

manufacturing, landscaping, and ski resorts, as well as public agencies. The off-road 

regulation affects, among others, the warehouse with one diesel forklift, the landscaper 

with a fleet of a dozen diesel mowers, the county that maintains rural roads, the landfill 

with a fleet of dozers, as well as the large construction firm or government fleet with 

hundreds of diesel loaders, graders, scrapers, and rollers. To punctuate the scope of 

the off-road regulation, as of September 20, 2010, 8,815 fleets have reported over 

150,000 vehicles to the Diesel One-stop Online Reporting System (DOORS), the 

reporting system for the off-road regulation. 

The off-road regulation’s requirements vary depending on the size of the fleet and on 

the age of its vehicles. Fleets are defined in the off-road regulation as small, medium, 

or large based on their total statewide horsepower (hp). The off-road regulation 

requires that the largest fleets, which have the most significant emissions, meet the 

most stringent requirements. The smallest fleets and local municipal fleets located in 

low-population counties are required to meet less stringent provisions. 

In general, the off-road regulation requires owners to modernize their fleets by replacing 

engines with newer, cleaner ones (repowering), replacing vehicles with newer vehicles 

equipped with cleaner engines, retiring older vehicles, operating higher emitting vehicles 

less often (designating them as low-use vehicles), or by applying exhaust retrofits that 

capture and destroy pollutants before they are emitted into the atmosphere. 

To meet the PM and NOx emission reduction requirements, fleets have the option of 

meeting fleet average emissions targets, or meeting the Best Available Control 

Technology (BACT) requirements. The PM BACT requirements consist of installing 
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retrofits that have been approved by ARB as verified diesel emission control strategies 

(VDECS) on 20 percent of their maximum horsepower in each year of compliance. To 

meet the NOx BACT requirements, large and medium fleets must turnover eight percent 

of their maximum horsepower in each year of compliance until 2015, after which there is 

a 10 percent turnover requirement. Small fleets are not required to meet the NOx 

emission reduction requirements. 

In April 2010, the Board directed staff to consider the impact of the recession and 

emission inventory changes from both on-road and off-road diesel vehicles operating in 

the state. The Board also directed staff to provide regulatory relief to fleets affected by 

the Regulation to Reduce Emissions of Diesel Particulate Matter, Oxides of Nitrogen 

and Other Criteria Pollutants from In-Use On-Road Diesel-Fueled Vehicles (on-road 

regulation) at title 13, CCR, section 2025 and/or the off-road regulation such that any 

appropriate economic relief could be targeted most cost effectively between the two 

regulations, and staff could ensure the combined emissions benefits achieved by the 

two regulations would continue to meet state implementation plan (SIP) requirements 

for the combined SIP categories. 

On April 22, 2010, staff presented a preliminary update to the Board on the emissions 

inventory used to develop the off-road regulation, as well as a summary of the impact of 

the recession on emissions from off-road vehicles. Based on this new information, the 

Board asked staff to draft changes to the regulation that will mitigate the potential 

effects of an unfavorable economy on affected businesses, while recognizing the need 

to protect public health, meet federal clean air deadlines, and continue moving forward 

even through uncertain times. 

In summer and fall of 2010, staff also worked with representatives from the Associated 

General Contractors of America (AGC), and came to an agreement with AGC in 

October 2010 to include a number of provisions in staff’s proposal, including delaying 

initial compliance dates to no earlier than 2014 and raising the low-use threshold. 

Finally, in December 2008, by Resolution 08-43, the Board approved amendments to 

bring two-engine cranes under the off-road regulation. In January 2010, by 

Resolution 10-2, the Board approved amendments to include two-engine water well 

drilling rigs within the scope of the off-road regulation. 

Description of Proposed Regulatory Action 

The first section below describes the more major modifications to the off-road 

regulation. The next section describes additional minor modifications and clarifications 

proposed by staff to clarify or simplify regulatory provisions. 

Major Amendments

Staff’s proposed major amendments to the off-road regulation are described in more 

detail in the sections below. 
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1. Delay Initial Compliance Dates 

Staff is proposing to modify section 2449.1(a) to delay the initial compliance date of the 

off-road regulation for all fleets as described below: 

• Large fleets: from March 1, 2010, to January 1, 2014, 

• Medium fleets: from March 1, 2013, to January 1, 2017, and 

• Small fleets: from March 1, 2015, to January 1, 2019. 

Throughout the regulation, staff is proposing to modify dates to reflect the fact that 

compliance dates would be on January 1 rather than March 1 of each year. 

 

2. New Combined PM and NOx Fleet Average Requirements 

 Staff is proposing to combine the PM and NOx fleet average targets in sections 2449.1 

and 2449.2. The fleet average targets would be based on the fleet’s NOx fleet average. 

However, the combined fleet average targets would be adjusted and shifted so as to 

require the appropriate amount of actions to reduce emissions (i.e., such that fleets that 

meet the NOx targets in the current regulation, but exceed the PM targets, would still be 

required to take some actions to reduce emissions). Considering the proposed new 

singular fleet average, section 2449.2 would be deleted completely. By combining the 

PM and NOx requirements, the regulation would become significantly less complicated 

as fleets will only have to meet a single annual fleet average. The targets in section 

2449.3 for the Surplus Off-road Opt-in for NOx (SOON) program would also be revised 

to be more consistent with the amended fleet targets. 

In addition, staff is proposing to change the final compliance date for large and medium 

fleets to January 1, 2024 (from March 1, 2020), and for small fleets to January 1, 2029 

(from March 1, 2025). Since staff is proposing to remove the PM requirements of the 

regulation, there will be no final PM compliance requirements. 

Staff is also proposing to modify section 2449.1(a)(1)(A)1. to increase the stringency of 

the final fleet average targets. This will result in fleets having to turn over additional 

older, dirtier vehicles such that a greater proportion of their vehicles are equipped with 

Tier 4i and Tier 4 engines. By lowering the final fleet average targets, additional 

emission reductions will be realized. 

3. Modify the Best Available Control Technology (BACT) Requirements 

Staff is proposing to combine the PM and NOx BACT requirements in sections 2449.1 

and 2449.2. The combined BACT requirements would require annual actions on no 

more than 4.8 to 10 percent of a fleet’s horsepower (depending on year) in each year 

the fleet did not meet the fleet average target. 

All fleets would have the following compliance options for meeting the proposed 

combined BACT requirements: 

• Replace older vehicles with new or cleaner, used vehicles; 

• Replace diesel vehicles with electric or alternative fuel vehicles; 

• Repower older engines with Tier 2 or higher engines; 
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• Retire vehicles from fleet; 

• Designate vehicles as permanent low-use; or 

• Install verified diesel emission control strategies (VDECS). 

Staff’s proposal would reduce the overall annual requirements as well as allow fleets the 

option to choose installing exhaust retrofits, turning over their oldest vehicles to newer, 

cleaner vehicles, or some combination thereof. 

4. Credit Provisions 

Staff’s proposal is intended to allow fleets to maintain credits for actual efforts already 

made to reduce emissions and to further incentivize early actions by fleets, as described 

below. 

In addition, the Board may consider additional amendments to provide fleets flexibility to 

take credit for actions to reduce emissions between the off-road regulation and the onroad regulation. 

Extend Double Retrofit Credit Period

Staff is proposing to amend section 2449.2(a)(2)(A)2. (now moved to 

2449.1(a)(2)(A)2.a.ii.) to extend the period during which a fleet may receive double 

credit for the installation of a VDECS until 12 months prior to the initial compliance 

deadline for that fleet. The impact of this proposal would be to incentivize continued 

progress toward cleaner air and support clean technology. It would encourage critical 

near term reductions of diesel PM and also helps ensure the investment that 

businesses and the State have made in retrofit technology is not lost due to the delay in 

the start of the fleet requirements. 

In addition, the Board may consider additional amendments to further incentivize 

retrofitting prior to fleets’ initial compliance deadlines. 

Changes to Other Credit Provisions 

Staff’s proposal is intended to allow fleets to maintain credits for actual efforts already 

made to reduce emissions; however, credits would be adjusted to reflect the delay of 

compliance start dates. Staff is proposing to amend section 2449.1(a)(2)(A)2.a.v. to 

reduce each fleet’s early retirement credits by 50 percent and provide that fleets may 

not use early retirement credits granted per section 2449.1(a)(2)(A)2.a.v. to satisfy all or 

part of their BACT requirements for the March 1, 2014, compliance date. Also, because 

reduced activity credits were scheduled to expire on March 1, 2011, if not used, per AB 

8 2X, and because the proposed amendments would delay the initial requirements for 

fleets until January 1, 2014, staff is proposing to remove the regulatory language 

implementing reduced activity credits. 
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5. Increase Low-Use Threshold 

Staff is proposing to explicitly identify and define the two types of low-use vehicles 

within the regulation as either year-by-year low use or permanent low use, and to 

increase the low-use threshold in section 2449.1(a)(2)(A)6 for both permanent low-use 

vehicles and year-to-year vehicles from 100 hours annually to 200 hours annually. 

Increasing the low-use threshold would provide additional relief, by exempting additional 

vehicles and increasing the cost effectiveness of the regulation by focusing turnover and 

retrofit requirements on vehicles that operate greater hours. 

6. New Provisions for Fleets Under 500 Horsepower 

Staff is proposing a new provision (section 2449(e)(17)) to allow fleets with under 500 

horsepower to choose to comply with the BACT requirements of the regulation solely by 

phasing out their Tier 0 and Tier 1 vehicles over a prescribed schedule between 2019 

and 2029. Compliance for these fleets using this phase-out schedule would be optional, 

as these fleets could instead opt to meet the fleet average requirements or the BACT 

requirements. This provision would provide a very streamlined and relaxed compliance 

path for the owners of the smallest fleets. 

7. Additional Minor Amendments 

Staff is proposing a number of minor amendments to clarify the off-road regulation, 

simplify compliance, and provide consistency with the major amendments discussed 

above. These proposed changes include, but are not limited to: 

Captive Attainment Area Fleet Definition - modify the definition to designate these fleets 

as small fleets, regardless of their total horsepower. 

Modify post-2007 flexibility engine definition - simplify the reporting requirements for 

Post-2007 flexibility engines. 

Alternative Fuel and Hybrid Provisions - remove electric vehicle horsepower from the 

fleet’s total horsepower calculation, which will also remove this horsepower from all 

BACT calculations, and incentivize the use of hybrid off-road vehicles by allowing fleets 

to use a lower emission factor(s) for hybrid equipment used in a fleet. 

Remove Hours in Fleet Average Provision –delete this provision since no fleets have 

taken advantage of it or plan to. 

New Fleet Requirements - clarify that upon purchasing vehicles or bringing vehicles into 

the state for the first time, a fleet must meet the following requirements: 

• Large or Medium fleets: Require a large or medium fleet to meet the fleet

average target for the closest future large fleet compliance date upon initial 

formation or upon entrance into the state after the effective date of the proposed 

amendments. 
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• Small fleet: Require a small fleet to meet the fleet average target for the closest 

future small fleet compliance date upon initial formation or upon entrance into the 

state after the effective date of the proposed amendments. 

For any size fleet, the fleet would be required to meet either the fleet average target or 

comply with the BACT requirements by the next applicable compliance date. 

Adding Vehicle Requirements - amend the adding vehicle requirements: 

• Beginning January 1, 2012, large and medium fleets would be allowed to add 

only vehicles with only Tier 2 or higher engines; beginning January 1, 2016, the 

restrictions would apply to small fleets; and 

• Beginning January 1, 2018, large and medium fleets would be allowed to add 

only vehicles with Tier 3 or higher engines; beginning January 1, 2021, the 

restrictions would apply to small fleets. 

These revised requirements would apply to all fleets (regardless of compliance path) 

and to all horsepower categories, providing additional clarity and simplification to the 

regulation. 

Compliance after the Final Target Date - clarify that the turnover and retrofit exemptions 

do not expire after the final compliance date. 

Reporting Dates - change the reporting dates to make them more consistent with the 

changes and delays to the compliance dates. 

Labeling - require equipment identification numbers (EIN) on both sides of a vehicle, 

instead of just on the right (starboard) side. Additionally, staff is proposing to require 

captive attainment area fleets to label their vehicles with EINs that are green with white 

letters (instead of red with white letters) if they choose to take advantage of the captive 

attainment area fleet provision. 

Order of Turnover - simplify the order of turnover provisions by only requiring fleets to 

turn over all Tier 0 and Tier 1 vehicles before they can count other higher tiered vehicles 

in meeting the fleet’s BACT requirements. 

15 Percent Turnover Exemption - clarify that if a fleet has more than 15 percent of its 

vehicles retrofitted before March 1, 2011, the fleet may choose any of those vehicles to 

be counted under this exemption and be exempt from turnover, as long as the 15 

percent cap is not exceeded and the exempted vehicle(s) continue to be equipped with 

the installed VDECS. 

In addition to the above, the Board may consider amending the off-road regulation to 

cover other two engine vehicles, as appropriate, for reasons similar to its past decisions 

to include two-engine cranes and well drilling rigs within the regulation’s scope. 
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LSI Fleet Regulation 

Sections Affected: Proposed amendments to CCR, title 13, sections 2775(c), 

2775.1(d)(1)(D), 2775.2(b), and 2775.2(e)(1)(A), the Large Spark-Ignition (LSI) Engine 

Fleet Requirements regulation. 

Regulation Background 

At its October 22, 1998, public meeting, ARB approved the Off-Road LSI Engine 

Regulation (LSI Regulation) with the adoption of California Code of Regulations, title 13, 

sections 2775 through 2775.2. The LSI Regulation established new engine emission 

standards and test procedures for manufacturers of off-road spark-ignited engines of 

25 horsepower or greater (greater than 19 kilowatts). 

On May 12, 2006, the ARB approved a second LSI rulemaking. The rulemaking 

included modifications to the existing emission standards and test procedures to make 

them more stringent. The rulemaking also included fleet requirements for operators of 

in-use LSI fleets (the LSI fleet regulation) and verification procedures for manufacturers 

of LSI retrofit emission control systems (retrofit kits). 

The intent of the LSI new engine emission standards and fleet requirements was to 

reduce hydrocarbon and oxides of nitrogen (HC+NOx) emissions from the nearly 90,000 

pieces of LSI equipment sold into and operating in the state by accelerating the 

introduction of new zero- and near zero-emissions equipment and the retrofit or 

retirement of uncontrolled in-use equipment, respectively. 

Applicability

The new engine emission standards and test procedures apply to LSI engines used in 

airport ground support equipment (GSE), forklifts, generator sets, mining equipment not 

otherwise primarily used in the construction industry, off-highway recreational vehicles, 

refrigeration units less than 50 horsepower, industrial (non-road) sweeper/scrubbers, 

industrial tow tractors (tugs), turf care equipment, and other industrial equipment. 

The LSI fleet regulation affects any operator of four or more forklifts, 

sweepers/scrubbers, tugs, and GSE, the four largest categories of LSI engine 

equipment. These vehicles are found in thousands of fleets in California, in industries 

as diverse as manufacturing, wholesale, transportation and utilities, retail, services, and 

construction, as well as public agencies. 

Regulatory Requirements

The 1998 rulemaking required LSI engine manufacturers to certify 25 percent of their 

new engines to a 3.0 gram per brake horsepower-hour (g/bhp-hr) combined HC+NOx 

standard beginning with the 2001 engine model year. The percentage increased by 

25 percent each subsequent model year so that 100 percent of the engines were 
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emission-controlled by the 2004 model year. To achieve this standard, manufacturers 

relied upon the same emission control technologies used in automotive engines – three 

way catalytic converters, electronic fuel/air controllers, and oxygen sensors. The 

3.0g /bhp-hr standard represented a 75 percent reduction in emissions versus 

LSI engines with no emission controls.

The 2006 rulemaking required manufacturers to certify their new LSI engines to a 

2.0 g/bhp-hr HC+NOx standard effective January 1, 2007 and a 0.6 g/bhp-hr standard 

effective January 1, 2010. The latter standard represents a 95 percent emission 

reduction versus uncontrolled LSI engines. 

The 2006 rulemaking also required operators of in-use fleets to achieve specific 

HC+NOx fleet average emission level standards that are more stringent with fleet size 

and time. The standards are also more stringent for forklifts than they are for non-forklift 

LSI equipment. The stringency of the standards reflects the availability of retrofit 

devices for LSI equipment as well as the greater ability of large fleets to incorporate 

zero- and near zero-emission new and used equipment into their operations. 

Description of Proposed Regulatory Action 

Staff is proposing several minor changes and clarifications to the LSI fleet regulation. 

The minor changes include: (1) extending the limited hours of use provisions, (2) 

broadening compliance extension flexibility, (3) adding definitions, and (4) clarifying 

definitions and modifying record keeping requirements. 

Proposed Amendments

1. Limited Hours of Use Provision 

Staff proposes to amend section 2775.1(d)(1)(D) to extend the limited hours of use 

(LHU) exclusion for LSI equipment operated fewer than 251 hours per year. Currently, 

LHU equipment may be excluded from fleet average emission level standard 

calculations, but only until January 1, 2011. After that date, LHU equipment that has 

been retrofitted to a 3.0 g/bhp-hr standard may continue to be excluded from fleet 

average emission level standard calculations. If not retrofitted, the LHU piece of 

equipment may have to be retired or replaced, resulting in a significant economic impact 

on some operators. Staff proposes to extend the LHU provisions for equipment 

operated no more than 200 hours per year and intends to clarify that operators desiring 

to exclude equipment under the LHU provisions must use non-resettable hour meters. 

2. Compliance Extension Provision 

Staff proposes to amend section 2775.2(e)(1)(A) to extend the length of compliance 

extensions. Currently, an LSI equipment operator may request a one-year compliance 

extension in cases where retrofit emission control devices (retrofit kits) are not available 

for a given engine/equipment combination. After that time, if no retrofit kit has become 
10

available, the operator is expected to retire or replace their piece of equipment to come 

into compliance with their fleet average emission level standards. However, 

replacement is not an economically feasible option for specialized LSI equipment with 

either very large engine displacements or an Underwriters Laboratories (UL) issued 

LPS/GS (propane/gas) safety designation. Staff proposes to allow a two-year 

compliance extension with a provision for an additional two years in the event of 

non-availability of retrofit kits. After the extension(s) expire(s), the operator may no 

longer exclude the LSI equipment from the fleet average emission level standard and 

may have to retire or replace it to achieve the standard. Staff also proposes to clarify an 

incomplete reference in section 2775.2(e)(1)(A) to “subsections 2775.1(a), (c), and (d). 

3. Modified Definitions 

Agricultural Operations - The “Agricultural Operations” definition would also clarify that 

forestry and nursery operations are considered agricultural operations. The “Fleet 

Average Emission Level” definition would also clarify two items for fleet average 

emission level standards calculations: (1) the default emission rate for uncontrolled LSI 

equipment is 12.0 grams HC+NOx per brake horsepower-hour, and (2) electric 

equipment of less than 19 kilowatts power may be included in calculations as long as it 

performs, with similar efficiency, the same function as an LSI engine-powered piece of 

equipment subject to the standards. 

Airport Ground Support Equipment or GSE - “GSE” currently means any LSI engine or 

electric-powered equipment contained in the 24 categories of equipment included in 

section B.3 of Appendix 2 of the South Coast Ground Support Equipment Memorandum 

of Understanding, dated November 27, 2002. Two of these categories are “carts” and 

“other,” which, for the purposes of electric-powered equipment, can be interpreted very 

broadly. Under the proposal, staff would eliminate the “other” category and limit the 

“cart” category so that it only allows electric carts into fleet average emission level 

standards calculations if they perform the work equivalent of an LSI engine-powered 

cart. These proposed modifications bring the definition in line with the original intent of 

the LSI fleet regulation. 

Baseline Inventory - The “Baseline Inventory” definition currently states that this 

inventory should reflect all equipment owned at the time of the inventory. The intent of 

the regulation was that the baseline inventory should reflect all operated equipment 

subject to the fleet average emission level requirements. Staff proposes to clarify that 

the baseline inventory requirement applies to all operated LSI equipment by replacing 

the word “owned” with the word “operated.” 

Operator - The “Operator” definition currently states that “operator” includes a person 

whose usual and customary business is the rental or leasing of LSI engine equipment 

for any equipment not solely possessed or used for rental or leasing. The intent of the 

regulation was to allow rental equipment companies and equipment dealers some de 

minimis level of use of their rental and used equipment fleet vehicles without triggering 
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the fleet average emission level standards requirements. Staff proposes to modify the 

“operator” definition to stipulate a de minimis usage level that reflects this intent. 

4. Record-keeping Requirements 

Staff proposes to modify the record-keeping requirements in section 2775.2(b) of the 

existing regulation. This section requires operators to record identifying and emissions 

information for each piece of LSI equipment in their fleet. It also requires them to obtain 

product delivery tickets or a like surrogate, if obtainable, stipulating that the fuel they are 

using meets motor vehicle grade propane specifications. The ARB added this second 

requirement in an attempt to force operators to put pressure on their fuel suppliers to 

provide uncontaminated and low-olefin (propene) content motor vehicle grade fuel. 

However, operators have been unable to obtain this documentation from their fuel 

suppliers. Staff proposes to remove the fuel quality record-keeping requirement. Staff 

also proposes to clarify the ARB’s intent that the record-keeping requirement apply to 

each piece of LSI equipment and that serial numbers be recorded for both engines and 

equipment. 

COMPARABLE FEDERAL REGULATIONS

Off-Road Regulation

The United States Environmental Protection Agency (U.S. EPA) has promulgated 

federal emission standards for new non-road engines. However, no federal standards 

have been promulgated addressing emission reductions from in-use diesel vehicle 

engines. 

Under section 209(e)(2), California may adopt and enforce emission standards and 

other requirements for off-road engines and equipment not expressly subject to federal 

preemption, so long as California applies for and receives authorization from the 

Administrator of U.S. EPA. California submitted its initial request for authorization on 

August 12, 2008, and filed a supplemental request on February 11, 2010. EPA 

conducted hearings on the requests on October 27, 2008, and April 14, 2010. The 

requests for authorization are presently pending. 

LSI Fleet Regulation

In 2002, the U.S. EPA followed California’s lead and adopted emission standards for 

new LSI engines (Volume 67, Federal Register, page 68242, November 8, 2002; title 

40, Code of Federal Regulations, part 1048). As the preamble to the federal regulations 

notes, the federal regulations extend California’s 1998 standards for new LSI engines to 

the rest of the United States in 2004 through 2006 and adopt more stringent standards 

for new LSI engines beginning in 2007. 

In 2006, the ARB harmonized with the federal standards for new 2007 through 2009 

model year LSI engines, but went a step further adopting more stringent California new 
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engine standards that became effective January 1, 2010. The ARB also adopted fleet 

average emission level standards for operators of LSI engine-powered equipment. The 

federal regulations do not impose the more stringent 2010 new engine standards. They 

additionally do not impose requirements on fleet operators or on in-use engines. 

Under section 209(e)(2), California may adopt and enforce emission standards and 

other requirements for off-road engines and equipment not expressly subject to federal 

preemption, so long as California applies for and receives authorization from the 

Administrator of U.S. EPA. California’s request for authorization was submitted on 

December 10, 2008; the request for authorization is presently pending. 

AVAILABILITY OF DOCUMENTS AND AGENCY CONTACT PERSONS

ARB staff has prepared a Staff Report: Initial Statement of Reasons (ISOR) for the 

proposed regulatory actions, which includes a summary of the economic and 

environmental impacts of the proposal. The report is entitled: “Proposed Amendments 

to the Regulations for In-Use Off-Road Diesel Fueled Fleets and Off-Road Large 

Spark-Ignition Fleet Requirements.” 

Copies of the ISOR and the full text of the proposed regulatory language for both the 

off-road regulation and the LSI fleet regulation, in underline and strikeout format to allow 

for comparison with the existing regulations, may be accessed on ARB’s website listed 

below, or may be obtained from the Public Information Office, Air Resources Board, 

1001 I Street, Visitors and Environmental Services Center, First Floor, Sacramento, 

California, 95814, (916) 322-2990, at least 45 days prior to the scheduled hearing on 

December 16, 2010. 

Upon its completion, the Final Statement of Reasons (FSOR) will be available and 

copies may be requested from the agency contact persons in this notice, or may be 

accessed on ARB’s website listed below. 

Inquiries concerning the substance of the proposed off-road regulation amendments 

may be directed to the designated agency contact persons, Ms. Kim Heroy-Rogalski, 

Manager of the Off-Road Implementation Section, at (916) 327-2200, or 

Ms. Elizabeth Yura, Off-Road Implementation Staff, at (916) 323-2397. 

Inquiries concerning the substance of the proposed LSI fleet regulation amendments 

may be directed to the designated agency contact persons, Ms. Elise Keddie, Manager 

of the ZEV Implementation Section, at (916) 323-8974, or Mr. Mark Williams, ZEV 

Implementation Staff, at (916) 327-5610. 

Further, the agency representative and designated back-up contact persons, to whom 

nonsubstantive inquiries concerning the proposed administrative action may be 

directed, are Ms. Lori Andreoni, Manager, Board Administration and Regulatory 

Coordination Unit, (916) 322-4011, or Ms. Trini Balcazar, Regulations Coordinator, 
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(916) 445-9564. The Board has compiled a record for this rulemaking action, which 

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

for inspection upon request to the contact persons.

This notice, the ISOR and all subsequent regulatory documents, including the FSOR, 

when completed, are available on ARB’s website for this rulemaking at

http://www.arb.ca.gov/regact/2010/offroadlsi10/offroadlsi10.htm

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 by public agencies and private persons and businesses in 

reasonable compliance with the proposed regulations are presented below. 

Pursuant to Government Code sections 11346.5(a)(5), the Executive Officer has 

determined that the proposed regulatory actions would not create any costs to or 

mandates on any local agency or school district that is reimbursable by the State 

pursuant to Government Code, title 2, division 4, part 7 (commencing with section 

17500). 

Pursuant to Government Code sections 11346.5(a)(6), the Executive Officer has 

determined, based on estimates prepared in accordance with instruction adopted by the 

Department of Finance, that the amendments to the off-road regulation or the LSI fleet 

regulation would not create additional costs to any State agency or to any local agency 

or school district, whether or not reimbursable by the State pursuant to Government 

Code, title 2, division 4, part 7 (commencing with section 17500), create other 

nondiscretionary costs on local agencies, and affect costs or savings in federal funding 

to the State. 

The proposed amendments to both regulations will provide significant relief from 

compliance requirements, and are expected to decrease the compliance costs for both 

public and private fleets alike; it is not expected that any of the proposed amendments 

will increase compliance costs for fleets. 

In developing this regulatory proposal, ARB staff evaluated the potential economic 

impacts on representative private persons or businesses. ARB is not aware of any cost 

impacts, other than the aforementioned savings, that a representative private person or 

business would necessarily incur in reasonable compliance with the proposed action. 

Additionally, as stated above, the proposed amendments to both regulations are 

expected to decrease compliance costs for fleets, which will result in a cost savings for 

fleets. 

Pursuant to Government Code section 11346.5(a)(8), the Executive Officer has made 

an initial determination that the proposed regulatory actions would not have a significant 

statewide adverse economic impact directly affecting businesses, including the ability of 

California businesses to compete with businesses in other states, or on representative 
14

private persons. In accordance with Government Code sections 11346.5(a)(10) and 

11346.3(b), the Executive Officer has further determined that the proposed regulatory 

actions will overall decrease the elimination of jobs within the State of California, and 

decrease the elimination of existing businesses within the State of California. The 

amendments to both regulations are expected to provide significant relief to affected 

fleets and, therefore, will not have an adverse affect on California businesses. 

Although these proposed amendments are not expected to adversely impact the 

economy overall, these modifications could have a negative economic impact on retrofit 

manufacturers and installers, and firms that provide repowers or new or used vehicles 

because they would receive fewer orders in the next few years. However, the off-road 

regulation will still provide incentives that are intended to encourage early retrofitting, 

repowering, and replacement, and the LSI fleet regulation does not preclude a fleet from 

voluntarily cleaning up there fleet, which could help mitigate potential impacts on retrofit 

and repower jobs and businesses. 

A detailed assessment of the economic impacts of the proposed regulatory actions and 

their effect on California businesses can be found in the ISOR. 

In accordance with Government Code section 11346.3, except as stated above with 

respect to retrofit manufacturers and installers, and firms that provide repowers or new 

or used vehicles, by providing significant relief to affected fleets, the Executive Officer 

has determined that the proposed regulatory actions would overall positively affect the 

number of jobs created or, at least, decrease the number of jobs eliminated within the 

State of California; positively affect the number of new businesses created or, at least, 

decrease the number of existing businesses eliminated within the State of California, 

and positively affect the expansion of businesses currently doing business within the 

State of California. A detailed assessment of the economic impacts of the proposed 

regulatory actions can be found in the ISOR. 

The Executive Officer has also determined, pursuant to California Code of Regulations, 

title 1, section 4, that the proposed off-road regulatory action would affect small 

businesses. It is expected that the proposed amendments to the off-road regulation will 

result in an overall cost savings to small businesses. However, as stated above, the 

amendments could have a negative economic impact on small businesses associated 

with retrofit manufacturing and installation because they would receive fewer orders in 

the next few years. The proposed LSI fleet regulatory action would not affect small 

businesses as they are already exempt from the requirements of the LSI fleet 

regulation. 

In accordance with Government Code sections 11346.3(c) and 11346.5(a)(11), the 

Executive Officer has found that the reporting requirements of the regulations which 

apply to businesses are necessary for the health, safety, and welfare of the people of 

the State of California. 
15

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

that no reasonable alternatives considered by the Board, or that has otherwise been 

identified and brought to the attention of the Board, would be more effective in carrying 

out the purpose for which the actions are proposed, or would be as effective and less 

burdensome to affected private persons than the proposed actions. 

SUBMITTAL OF COMMENTS

Interested members of the public may also present comments orally or in writing at the 

meeting, and comments may be submitted by postal mail or by electronic submittal 

before the meeting. The public comment period for this regulatory action will begin on 

November 1, 2010. To be considered by the Board, written comments, not physically 

submitted at the meeting, must be submitted on or after November 1, 2010 and 

received no later than 12:00 noon on December 15, 2010, and must be addressed to 

the following: 

Postal mail: Clerk of the Board, Air Resources Board 

1001 I Street, Sacramento, California 95814 

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

Please note that the webpage provided above for electronic submittal is for comments 

on the following on-road and off-road regulations: 

• Truck and Bus 

• Drayage Truck 

• Tractor-Trailer GHG 

• Off-Road 

• Large Spark Ignition 

To ensure that all comments are properly considered and responded to, please identify 

in the subject heading of each comment letter the regulation(s) for which comments are 

being submitted. 

Please note that under the California Public Records Act (Gov. Code, § 6250 et seq.), 

your written and oral comments, attachments, and associated contact information (e.g., 

your address, phone, email, etc.) become part of the public record and can be released 

to the public upon request. Additionally, this information may become available via 

Google, Yahoo, and any other search engines. 

The Board requests, but does not require, that 20 copies of any written statement be 

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

that ARB staff and Board members have time to fully consider each comment. 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. 
16

STATUTORY AUTHORITY AND REFERENCES

Off-Road Regulation

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

Code sections 39002, 39003, 39500, 39600, 39601, 39602, 39602.5, 39650, 39656, 

39658, 39659, 39665, 39667, 41511, 43000, 43000.5, 43013, 43018, and 43018.2. 

This action is proposed to implement, interpret and make specific 39002, 39003, 

39500, 39600, 39601, 39602, 39602.5, 39650, 39656, 39658, 39659, 39665, 39667, 

41511, 43000, 43000.5, 43013, 43018, and 43018.2. 

LSI Fleet Regulation

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

Code, sections 39002, 39003, 39500, 39600, 39601, 43000, 43011, 43013, 43017, 

43018, 43600, and 43700. This action is proposed to implement, interpret, and make 

specific sections 43000, 43013, 43017, 43018, 43101, 43102, 43104, 43105, 43106, 

43150, 43151, 43152, 43153, 43154, 43204, 43205, 43205.5, 43210, 43210.5, 43211, 

and 43212. 

HEARING PROCEDURES

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

Procedure Act, Government Code, title 2, division 3, part 1, chapter 3.5 (commencing 

with section 11340). 

Following the public hearing, the Board may adopt the regulatory language as originally 

proposed, or with non-substantial 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 and that the regulatory language as modified could result from the 

proposed regulatory action; in such 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 ARB’s Public 

Information Office, Air Resources Board, 1001 I Street, Visitors and Environmental 

Services Center, First Floor, Sacramento, California, 95814, (916) 322-2990. 

SPECIAL ACCOMMODATION REQUEST

Special accommodation or language needs can be provided for any of the following: 

• An interpreter to be available at the hearing; 

• Documents made available in an alternate format (i.e., Braille, large print, etc.) or 

another language; 

• A disability-related reasonable accommodation. 
17

To request these special accommodations or language needs, please contact the Clerk 

of the Board at (916) 322-5594 or by facsimile at 916) 322-3928 as soon as possible, 

but no later than 10 business days before the scheduled Board hearing. 

TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service. 

Comodidad especial o necesidad de otro idioma puede ser proveído para alguna de las 

siguientes: 

• Un intérprete que esté disponible en la audiencia 

• Documentos disponibles en un formato alterno (por decir, sistema Braille, o en 

impresión grande) u otro idioma. 

• Una acomodación razonable relacionados con una incapacidad. 

 

Para solicitar estas comodidades especiales o necesidades de otro idioma, por favor 

llame a la oficina del Consejo al (916) 322-5594 o envíe un fax a (916) 322-3928 lo más 

pronto posible, pero no menos de 10 días de trabajo antes del día programado para la 

audiencia del Consejo. TTY/TDD/Personas que necesiten este servicio pueden marcar 

el 711 para el Servicio de Retransmisión de Mensajes de California. 

CALIFORNIA AIR RESOURCES BOARD 

 /s/ 

_________________________________ 

James N. Goldstene 

Executive Officer 

Date: October 19, 2010 

The energy challenge facing California is real. Every Californian needs to take immediate action to 

reduce energy consumption. For a list of simple ways you can reduce demand and cut your energy 

costs, see our website at www.arb.ca.gov.