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CIAQC-E12CIAQC-E13Comments Received on SOON Program and PR 2449 and R esponse to Comments

1 

### Response to Comment Letter CIAQC (Dated April 22, 2008)

Response CIAQC-1 AQMD staff does not believe that the SOON Program w ill diminish the fleet’s ability or flexibility to manage their fleets. The SOON Progr am applies to the largest fleets (over 20,000 hp) and as such, affected fleets will have a large number of vehicles to select for participation in the SOON program. Actual fleet in formation collected and used by California Air Resources Board (CARB) during the de velopment of the In-Use Off-Road Diesel Regulation was used in the AQMD’s socioecono mic analysis, and this information shows that SOON fleet populations average well over 200 vehicles. It is expected that fleets on average will be required to include 5 to 15 vehicles (or approximately 3 to 7% of their fleet) in the SOON program. With this sma ll fraction of the fleet subject to the additional SOON contractual requirements, staff str ongly believes that this will cause minimal if any impacts on fleet owners’ ability to flexibly manage their fleets as business opportunities change.

Response CIAQC-2

As indicated in CARB’s Final Statement of Reasons f or Rulemaking (FSOR), neither the California Health and Safety Code nor the Carl Moye r Program guidelines prohibit CARB or the local air districts from compelling fle ets to apply for funding. The SOON Program funded through Moyer money is required to f ollow the Carl Moyer Program guidelines. In addition, AQMD staff has developed additional guidelines for implementing the SOON Program in the South Coast Ai r Basin. Incentive funding is indeed provided in the SOON Program to eligible fle ets to achieve additional NOx reductions beyond those achieved under the Statewid e regulation.

Response CIAQC-3 The SOON Program was never presented as a fully fun ded program. Under the Carl Moyer Program guidelines, the SOON funds are only r equired to cover the incremental cost of cleaner engines (i.e., 85% of total cost fo r a Tier 3 repower). Although fleets would still be responsible for the remaining small portion of the total cost (i.e., 15%), they would realize substantial savings in statewide compliance costs when the SOON funded vehicles complete the SOON contract and are then counted toward compliance with the statewide regulation. Under CARB’s final SOON regulation, vehicles repowered with SOON funds are not required to be re trofitted with PM filters. Please also refer to the responses in CARB’s FSOR Section III.B.6) a) on page 645, and Section III.C.1) r) on page 698.

Response CIAQC-4 Staff recognizes that repower options are available for a subset of off-road vehicles, but the number of these options is constantly growing. The comment was made that seven models of scrapers, four models of compactors, two loaders, one bulldozer and one motor grader currently can be repowered to Tier 3. Howev er, the Carl Moyer Program has funded more models in each vehicle category than st ated in the comment, and staff

believes that current and future demand will stimul ate availability of various new Tier 3 repower solutions. Furthermore, the SOON Program i s not solely a repower program.Comments Received on SOON Program and PR 2449 and R esponse to Comments

2 Because the SOON Program is funded by Carl Moyer mo nies, in accordance with 2008 Carl Moyer Guidelines, fleets may apply for SOON fu nding to replace a vehicle as well as add a NOx retrofit device to an existing vehicle . Thus, Proposed Rule 2449 has been fashioned to allow flexibility in the vehicle ident ification process. Staff does not envision that fleets will apply for funding for all potentia l SOON projects. Rather, staff envisions that only the most promising projects will be submi tted for SOON funding. To that end, staff has been reaching out to fleets and actively participating in the process by which fleets are identifying potential SOON projects. We envision the SOON Program to be run similarly for its duration.Comments Received on SOON Program and PR 2449 and R esponse to Comments

3 

### Response to Comment Letter CIAQC (Dated April 22, 2008)

Attachment A

Response CIAQC-A1 The SOON program applies to the largest fleets (ove r 20,000hp) and as such affected fleets will have a large number of vehicles to sele ct for participation in the SOON Program. Actual fleet information collected and us ed by CARB during the development of the In-use Off-Road Diesel Vehicle Regulation wa s used in the AQMD’s socioeconomic analysis and this information shows t hat SOON fleets average well over

200 vehicles in their fleets. Affected fleets must first meet the statewide regulation. Vehicles eligible for the SOON Program would subseq uently be considered.

It is expected that fleets on average will be requi red to include 5 to 15 vehicles (or approximately 3 to 7% of their fleet) in the SOON p rogram. With this small fraction of the fleet subject to the additional SOON contractua l requirements, staff is confident that this will cause minimal if any impacts on a fleet’s ability to flexibly manage their fleet as business opportunities change.

Additionally, we do not agree that Section 2449.3(e )(8) compels a vehicle to operate 75% of its time in the AQMD. The AQMD requires SOON fu nded vehicles to operate at least 75% of their time in the AQMD to ensure that the re ductions funded by the AQMD occur in the AQMD boundaries. As such, the 75% requireme nt applies only to the historical operating hours within the AQMD jurisdiction (avera ge annual hours of operation over the previous two years) and does not include hours operated outside of the district. For example, if a SOON vehicle has historically operate d 1000 hours in the AQMD and 500 hours in other districts, the 75% operational requi rement of operating in the AQMD would apply only to the 1000 hours and the vehicle’ s minimum required time in the AQMD would be 750 hours. While over the life of th e SOON contract the vehicle must average the 1000 hours contracted, the 75% criteria gives fleet additional flexibility of moving vehicles out of the district for short perio ds of time to address changing business

climate.

Overall because only a small portion of the fleets vehicles will be included in the SOON program and because the vehicles are given addition ally flexibility to move out of the AQMD boundaries to address short-term changes in bu siness climate, staff believes that a fleet’s ability to flexibly manage its vehicles wil l be minimally, if at all, impacted.

Response CIAQC-A2 We do not agree that the compliance plan will compe l a fleet to manage their fleet in a specific way for seven years, thereby limiting the fleet’s flexibility to respond to changing business conditions. The compliance plan is a “living” document that the fleets can update frequently and represent the fleet manag er’s best estimate as how the fleet will be managed to meet the requirements of the base reg ulation and the SOON requirements at the time of applying for SOON funding. Fleets w ill have every opportunity to update the plan as their fleet changes and the business cl imate changes providing the necessary flexibility to meet the fleet’s business needs each time they are required to apply forComments Received on SOON Program and PR 2449 and R esponse to Comments

4 funding. Because of this flexibility, AQMD staff b elieve that fleets can change their compliance plan to ensure that changes in the fleet such as selling a vehicle can be allowed while complying with the SOON and base regu lation requirements. In addition, SOON funded vehicles have some flexibility incorpor ated in the contract language to move out or the district for short periods of time. The contract allows a vehicle to move out of the district boundaries for up to 25% of the time.

Response CIAQC-A3 The structure of the SOON program provides the flee t owner with many choices as to which vehicle could potentially receive incentive f unds, as well as choosing a compliance path among many that best meets the needs of the fl eet. Based on AQMD staff analyses and responses to comments provided in CARB’s FSOR o n the In-Use Off-Road Diesel Vehicle Regulation, we believe that in almost all c ases, fleets participating in the SOON program will realize cost savings which should be a strong incentive to participate.

Response CIAQC-A4 AQMD staff believes that because the SOON eligible fleets are the largest, they should have the resources as well as the appropriate busin ess and accounting practices to have generated and stored the necessary information to a dequately demonstrate the location and hours of operation of a vehicle for the past th ree years. AQMD staff has been and

will continue to work with fleets to determine the most appropriate method of documenting vehicle location and hours of operation for each fleet that provides the necessary accuracy with the least amount of resourc es expended by the fleets. It should be noted that fleets participating in the tradition al Carl Moyer Program have consistently been able to provide the required historical operat ing data.

Response CIAQC –A5 AQMD staff does not believe that the SOON NOx emiss ion targets and the base regulation NOx targets are inconsistent and could r esult in a doubling of the regulation requirements. The more stringent SOON NOx targets provide the basis to identify a sufficient number of SOON projects for each fleet t o ensure that enough cost effective projects apply for funding to achieve the AQMD’s SO ON NOx reduction goals. Fleets are required to use the SOON NOx targets only to id entify and apply for the required amount of SOON projects. Also, fleets are not requ ired to meet the SOON NOx targets, however, fleets already meeting the SOON targets do not need to apply for SOON funding.

Response CIAQC – A6 The socioeconomic analysis performed for the SOON p rogram covers a time period of 17 years (2008-2025), the period the regulation covers and as such does not quantify the effects of relatively short duration changes in eco nomic conditions such as the recent economic downturn being experienced by the construc tion industry. The report quantifies the effects of the regulation over a suf ficiently long timeframe to account for the effects of the economic cycles of the affected industries. While staff recognizes the

difficult economic conditions the construction indu stry is experiencing now, we expect over the 17-year time frame of the analysis that th e economic health of the construction industry to continue to enjoy the long term growth it has historically experienced.Comments Received on SOON Program and PR 2449 and R esponse to Comments

5 Response CIAQC – A7 We do not agree that the analysis is based on fault y assumptions that are not adequately substantiated or supported by evidence. The analys is is based on appropriate assumptions and best represents the true impacts of the SOON program on the affected industries. AQMD staff has through the rulemaking process (CARB and AQMD) learned much about the affected industry. Staff ha s held numerous workshops and meetings with the affected industry, formed a worki ng group (which include representatives from the affected industries) to as sist in implementing the SOON program, as well as met individually with 25 fleets to better understand their needs and operations. Through this process, staff has gained substantial insight as to the operations of the impacted industries.

Response CIAQC-A8 Over the past several years, AQMD staff has funded close to 1,000 construction equipment repowers and has gained a very good under standing of the abilities of the repowering industry. Several characteristics of th e repowering industry lead us to believe

that it can meet the increased demand of the SOON a nd base regulation program. First, the industry has had some time to prepare for the b ase regulation and the SOON program and will have another 4 to 5 years to improve and s treamline its process. Second, in addition to expanded dealer repowering services, se veral fleets have begun to or plan to begin to repower their own vehicles increasing the capacity of the repowering industry. Third, AQMD staff have discussed with engine manufa cturers on the need for additional resources to meet the implementation needs of the s tatewide regulation and the SOON regulation. One of the leading manufacturers of of f-road engines provided comments to

CARB on their commitment to meet market demands. A ll this leads staff to believe that, while challenging, the repowering industry can repo wer the 1,300 engines in the designated time period.

Response CIAQC – A9 While it is true the socioeconomic analysis did not consider retirement of vehicles, inclusion of this would have no impact on the resul ts. The benefit of the SOON program to the fleet is that the SOON program allows the fl eets to delay action on a vehicle for three years. Therefore, if the fleet would decide to retire the SOON vehicle, the retirement would be modeled to occur three years la ter than it would have been modeled to occur under the base case (SOON program not impl emented). Because the action modeled during the SOON scenario is the same action modeled in the base case, there will be no stranded costs. Independent of the acti on modeled, the three year delay would incur cost savings for the fleet.

Response CIAQC – A10 Staff does not believe the compliance costs modeled under the SOON and base cases are inconsistent. In all cases, it was consistently as sumed that the newest available technology was used at the time of repower. As the Tier 4 technology is not available until 2011, repowers modeled in the 2008 to 2010 ti meframe used the Tier 3 (the newest technology available). We have assumed that there will be differences in costs between the two technologies as the Tier 4 technology is mo re technologically advanced; however, these differences in costs are the same in the base case and SOON scenarios and affect both scenarios similarly. While Tier 3 technology has higher emissions thanComments Received on SOON Program and PR 2449 and R esponse to Comments

6 the Tier 4 technology, they both are significantly cleaner than the Tier 0 and Tier 1 technology being replaced, and as shown in the soci oeconomic report, the early investment (heavily subsidized with incentive funds ) in the Tier 3 technology will result in significant cost savings to the fleet over the l ife of the regulation.

Response CIAQC –A11 The socioeconomic analysis assumes all engines are repowered and it is expected that most of the actions taken by fleets in the early ye ars 2008 to 2012 will be repowers. Staff believes that the costs and technological feasibili ty of Tier 0 and 1 repowers to Tier 3 engines are real and accurate based on the many yea rs of repowers funded through our Moyer Program. While repowers to Tier 4 technology is more speculative, it is no more so than assuming the availability and costs of retr ofit technology, or costs of new equipment. Regardless, the choice of fleet action in the later years (2015 and later) will have little or no impact on the results as it is as sumed that the fleet will take the same

action on the vehicle in both the SOON and the base case scenarios. In all cases the three year delay in action realized by the participating in the SOON program will result in cost savings to the fleets.

Response CIAQC – A12 The socioeconomic analysis was performed in “real” terms. As such, the six percent line of credit rate represents an approximately 10 perce nt market rate based on an inflation rate of four percent. The interest rate concept mi mics the opportunity cost of money; i.e., the rate of return if the same amount of money were invested elsewhere. Under today’s economic circumstances, earning a 10 percent rate o f return on investment, on average, is considered unusually high, and results in a conserv ative analysis. The economic

condition of a business is also one of several fact ors used to determine the line of credit rate for the business. Large companies (those subj ect to the SOON program) will most likely get a lower rate than smaller companies.

Response CIAQC – A13 The four percent interest rate used in the analysis represents a real interest rate. It is commonly accepted that the real interest rate is on the order of four percent. Based on a four percent inflation rate, the four percent real interest rate is equivalent to an eight percent market rate. Staff also does not believe t hat changing the useful life of the vehicle in the later years will significantly affec t the results of the analysis as the

modified vehicle life would be modeled both in the SOON and base case scenarios affecting each similarly.

Response CIAQC – A14 Information from the 18 sample fleets used in the f leet specific analysis was obtained

from CARB. CARB used the same information and info rmation from 182 additional

fleets to determine the economic and emission reduc tions from their regulation. The information was obtained from surveys and from flee ts who voluntarily shared their fleet information with CARB. Furthermore, CARB conducted an additional survey collecting

information from over 250 fleets as well shared the results with staff. Staff has also met with over 25 fleets to discuss their fleet composit ion and practices over the last few months. Based on the average age of the fleets, th e type and ages of the vehicles in theComments Received on SOON Program and PR 2449 and R esponse to Comments

7 fleets, the average horsepower of the fleets, and s taffs discussions with numerous fleets, we believe that the 18 fleets do adequately represe nt the actual fleet population.

Response CIAQC – A15 The fleet analysis assumed the 15% cost share was p art of normal business practices (i.e. the cost of an engine rebuild) and was not included as an additional cost in either the SOON or base case. However, the impact of includin g the 15% cost share in the analysis should not change the results as evidenced by the c onclusions of the socioeconomic analysis which shows that fleets will enjoy cost sa vings from participating in the SOON

program.

Response CIAQC – A16

Staff believes that the 84% of the fleets at market risk will most likely pass their increased costs through to their customers. An ind ividual business considers several factors to decide whether to raise prices or face r educed profits in light of additional cost of doing business. These factors may include compe titiveness, project sales, and supply chain management, among others. The balance betwee n price increase and profit reduction is a strategic decision made by individua l businesses. As such, staff does not believe it is appropriate to include this factor in the analysis.

Response CIAQC – A17 We do not agree. The fleet specific analysis did i nclude actions to shrink the fleet to comply with the CARB regulation. For all fleets it was assumed that compliance with the NOx requirements for the first year of the base reg ulation was accomplished through vehicle retirements (up to 8% of the fleet).

Response CIAQC – A18 The analysis was conducted in “real” terms in 2000 dollars. Costs and other socioeconomic impacts were estimated yearly from 20 08 to 2025 to allow year by year comparison. Although the report presents statistic s in key years, complete year by year statistics are available upon request.

Response CIAQC – A19 Staff does not believe it is necessary or appropria te to analyze the impacts of the removal of the 10 year or newer vehicle age exemption, the Tier 1 turnover exemption (applicable only until 2013), and the 5 year or newer vehicle r etrofit exemption. Staff believes that vehicles under 10 years of age will not be cost-eff ective candidates for the SOON program and will not participate. Similarly for Ti er 1 vehicles, very few will be costeffective SOON candidates (in the early years of th e SOON program) and would also not participate. Finally, the 5 year or newer vehicle age exemption would apply only to vehicle replacements as repowered engines are not e xempt if the vehicle is older than 5 years (which will most likely be the case). In sum mary, the impacts of these exemptions on the typical SOON project will be minimal and as such do not warrant additional analysis.Comments Received on SOON Program and PR 2449 and R esponse to Comments

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### Response to Comment Letter CIAQC (Dated December 7, 2007)

Attachment C

Response CIAQC-C1 Since the CARB Board hearing on July 26, 2007, AQMD staff has worked closely with CARB staff and the affected fleets on the SOON Prog ram. CARB released the revised SOON language in its Second Notice of Public Availa bility of Modified Text on February 5, 2008 and extended the required 15- day public comment period to 30 days, allowing additional time for stakeholder comments. In addition, in October 2007, AQMD staff formed an implementation working group ( consisting of representatives from CARB, San Joaquin Valley APCD, and public and private fleets) to solicit input from stakeholders on the SOON Program. Given the f lexibilities allowed in the SOON Program, AQMD staff believes that the emission redu ctions anticipated from this program are achievable. For additional response on the development of the SOON provision of the State regulation, please also refe r to the responses in CARB’s FSOR Section III.C.1)uu) on pages 725-726.

Response CIAQC-C2 The latest proposed SOON Program would allow the fi rst year (2008) to be voluntary in accordance with CARB’s final regulation. Regardless , affected fleets are still encouraged to submit for funding in the first year so that sta ff can evaluate as early as possible, how fleets would be complying with the statewide regula tion and the SOON Program. Since the SOON Program will be voluntary in the first yea r, fleets recommended for SOON funding would have the option to not accept funding in the first year. Staff also believes that the cost of overall compliance with the statew ide regulation will be reduced with participation in the SOON Program because SOON fund ed vehicles will, at the end of contract period, be credited toward compliance with the statewide regulation. In addition, the design of the statewide regulation and the SOON provision allow fleets significant flexibility to determine the least costly complianc e path. Please also refer to the responses in CARB’s FSOR Section III.A.3)a)iii) on pages 146-149, Section III.C.1)b) on pages 679-682 and Section III.C.1)f on page 685.

Response CIAQC-C3 The SOON Program does not require retaining older e ngines (which were targeted for

retirement or had reached the end of their useful l ife) in order to be repowered for the purpose generating additional NOx reductions. In c omplying with the SOON Program, fleets can choose to meet the SOON NOx targets thro ugh any combination of their own actions (e.g., retire, replace, repower, sell/move outside Basin) using their own funds or apply for SOON funding to meet these targets. Only projects that receive SOON funding are then required to be implemented. Surplus Tier 0 vehicles are still expected to be available after compliance with the statewide regul ation and those with high operating hours would be potential candidates for participati ng in the SOON Program.

Response CIAQC-C4 Please refer to Response CIAQC-C2. AQMD staff beli eves that implementation of the SOON Program as a mandatory program (i.e., after Ap ril 2009) will ensure that theComments Received on SOON Program and PR 2449 and R esponse to Comments

9 emission reductions targeted for this program in th e 2007 SIP are achieved and these reductions are approvable by the U.S. EPA. In addi tion, a mandatory program will result in a larger pool of eligible vehicles from which on ly the most cost-effective and high priority projects would be funded by SOON, thus min imizing any financial impacts on

the fleets.

Response CIAQC-C5 Please refer to Response CIAQC-3.

Response CIAQC-C6 While it is financially prudent to fund the most co st-effective projects, the award criteria have a 10% cap on the amount of funding that can be awarded to one fleet. Additionally, 25% of the funding will be distributed to ensure th at at least one project in each fleet requesting high priority is funded as long as it is below the mandated Moyer costeffectiveness cap. These criteria would allow more fleets to receive funding.

Response CIAQC-C7 AQMD staff understands the needs of fleets for oper ational flexibility and understands the limitations seven year contract duration may ha ve on some fleets. However, the SOON Program NOx reductions, critical for meeting t he PM2.5 ambient air quality standards, must carry through and beyond 2015, and as such require the minimum seven year contract life. Staff believes that there is s ufficient flexibility in current contracting practices to address this concern. Regardless, staff will continue to evaluate on a case-bycase basis to include flexibility in terms of contr act duration as the program progresses.

Response CIAQC-C8 Please refer to the response in CARB’s FSOR Section III.C.1)c) on pages 682-684.

Response CIAQC-C9 Staff considered this approach but at this time bel ieves that there is insufficient information available on all fleets subject to the SOON Program to develop such a criterion and still ensure that enough fleets and v ehicles would be subject to the SOON Program to realize the necessary NOx reductions. W hile repowering may be a more viable option for some engines (e.g., larger engine s with high operating hours), replacement may viable for other types of engines. Please also refer to CARB’s FSOR Section III.C.1)v on pages 700-702.

Response CIAQC-C10 Fleets will be required to file a compliance plan f or meeting the requirements of the district from which SOON funding is being requested . Given that the first SOON target year is 2011 and every three years thereafter, staf f believes that fleets can develop plans to meet the annual statewide targets and have suffi cient time to plan for compliance with the SOON targets. However, since there is the pote ntial that multiple compliance plan formats and reporting requirements could be realize d, staff is working with CARB and other air district staff to ensure that the complia nce plan formats and reporting requirements are as consistent as possible.Comments Received on SOON Program and PR 2449 and R esponse to Comments

10 Response CIAQC-C11 The SOON provision of the base regulation is intend ed to complement the base regulation and could not be separated since affecte d fleets must demonstrate compliance beyond the base regulation to achieve the surplus r eductions. Please also refer to the responses in CARB’s FSOR Section III.B.6)b) on page 646.

Response CIAQC-C12 The eligibility language was adopted to ensure that only the older fleets with the largest number of Tier 0 and Tier 1 equipment would partici pate in the SOON Program. The design of the program and the associated emission r eductions require that the fleets, once included in the program, need to stay in the progra m. Under the SOON Regulation, the January 1, 2008 deadline provides a baseline for th e eligibility of fleets to participate in the SOON Program.

Response CIAQC-C13 While the administrative requirements are somewhat more involved because of the two different NOx target timeframes, staff does not bel ieve this makes the development of the compliance plan untenable. Staff believes that the compliance plan will most likely need to be updated on an annual basis which coordinates well with the annual reporting requirements of the statewide rule. Please also re fer to CARB’s FSOR Section III.A.9)e) on page 499.Comments Received on SOON Program and PR 2449 and R esponse to Comments

11 

### Response to Comment Letter CIAQC (Dated January 25, 2008)

Attachment D

Responses CIAQC-D1 and CIAQC-D2 Please refer to Responses CIAQC-C2, CIAQC-C4 and CI AQC-C5.

Response CIAQC-D3 Staff believes that compliance with the statewide r egulation will not completely eliminate Tier 0 equipment within the next few years and adeq uate supply of Tier 0 (and Tier 1) vehicles will still be available and eligible for S OON funding. The applicability of the SOON Program to fleets with more than 40% Tier 0 an d 1 equipment is intended to achieve surplus NOx reductions by accelerating the clean-up of these older engines. Fleets which choose to retire their Tier 0 equipmen t at rates higher than that required under the State regulation may already be in compli ance with the SOON targets and may not be required to apply for SOON funding.

Response CIAQC-D4 Assuming that all other eligibility criteria are me t, a vehicle will be eligible for SOON funding if it spends a majority of its time in the AQMD relative to all other air districts. For example, if it spends 34% of its time in the So uth Coast and 33% in two other districts, it would be eligible for funding. Fundi ng and cost-effectiveness will be based on the historical hours of operation in the distric t (in this example, 34% of the vehicles total historical hours of operation). If the proje ct receives funding, the vehicle must spend at least 75% of its operating time in the Sou th Coast or 26% (i.e., 75% of 34%) of the vehicles total historical operating hours durin g the contract period.

Response CIAQC-D5 Please refer to Response CIAQC-C7.

Response CIAQC-D6 Please refer to CARB’s FSOR Section III.C.1)b on pa ge 679.

Response CIAQC-D7 Please refer to Response CIAQC-C10.

Response CIAQC-D8 In order to minimize impacts on fleets in terms of preparation of SOON applications and compliance plans, staff has developed a compliance tool and has also conducted one-onone consultations with a number of eligible fleets over the last few months. Staff will continue these efforts during the SOON program anno uncements. In addition, services of outside consultants have been retained to help flee ts prepare their SOON applications and compliance plans.

Response CIAQC-D9 Under the SOON Program, fleets have the option of a pplying for SOON funds and implementing SOON funded projects (e.g., repowers) or meeting the SOON NOx targetsComments Received on SOON Program and PR 2449 and R esponse to Comments

12 through any combination of their own actions (e.g., retire, replace, repower, sell/move outside Basin) using their own funds.

Response CIAQC-D10 The hypothetical emissions reductions that may have resulted from the slow down of construction operations over the past year are not permanent reductions. Regardless of the magnitude of these reductions, the emissions wi ll increase to original levels as the construction industry rebounds and operations incre ase. The purpose of the state regulation and SOON Program are to achieve permanen t emissions reductions from offroad diesel vehicles.

Response CIAQC-D11 While the SOON Program is voluntary for 2008, staff believes that a mandatory program will be required in order to ensure that the target ed 12 tons per day of NOx reductions are achieved by 2014. On May 2, 2008, the AQMD Governi ng Board will consider opting-in to the SOON Program and also whether the program sh ould be mandatory or voluntary after April 2, 2009. Furthermore, the adoption of Proposed Rule 2449 on May 2, 2008 will allow staff the opportunity to evaluate the SO ON Program during 2008. Opting in to SOON and adopting Proposed Rule 2449 will also allo w time for staff to develop additional guidelines (if necessary) and submit for CARB approval before the 2009 SOON Program Announcement. Fleets that are volunt arily participating in the SOON Program in 2008 will be required to submit complian ce plans with their SOON applications.

Response CIAQC-D12 Please refer to Response CIAQC-4.Comments Received on SOON Program and PR 2449 and R esponse to Comments

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### Responses to Comment Letter CIAQC (Dated March 6, 2008)

Attachment E

Responses to the comment letter submitted by the Co nstruction Industry Air Quality Coalition (CIAQC) to the California Air Resources B oard dated, March 6, 2008 are provided by CARB staff in the Final Statement of Re asons for Rulemaking (FSOR). Below, the AQMD staff is identifying the relevant s ections and page numbers of these responses from CARB’s FSOR.

Response CIAQC-E1 Please see response in Section III.C.1) pp) on page s 720-723.

Response CIAQC-E2 Please see response in Section III.A.9) b) on page 498, and Section III.C.1) uu) on pages

725-726.

Response CIAQC-E3 Please see response in Section III.C.1) f) on pages 685-686, Section III.C.1) k) on page 691, and Section III.A.6) a) on pages 645-646.

Response CIAQC-E4 Please see response in Section III.C.1) n) on pages 693-694 and Section III.C.1) rr) on page 723.

Response CIAQC-E5 Please see response in Section III.C.1) v) on pages 702-703.

Response CIAQC-E6 Please see response in Section III.C.1) c) on pages 682-684.

Response CIAQC-E7 Please see response in Section III.C.1) b) on pages 679-682.

Response CIAQC-E8 Please see response in Section III.C.1) i) on pages 688-690 and Section III.A.3)e)v) on page 237.

Response CIAQC-E9 Please see response in Section III.C.1) b) on pages 679-682 and Section III.A.9)e) on pages 499-502.

Response CIAQC-E10 Please see response in Section III.C.1) b) on pages 679-682 and Section III.C.1)o) on pages 694-696.Comments Received on SOON Program and PR 2449 and R esponse to Comments

14 Response CIAQC-E11 Please see response in Section III.C.1) tt) on page s 724-725.

Response CIAQC-E12 Please see response in Section III.C.1) ll) on page s 710-715. In addition, AQMD staff has prepared a draft socioeconomic report for the S OON Program, which was made available for public review and comments on April 2 , 2008.

Response CIAQC-E13 Following is a list of CARB’s FSOR sections address ing all of these comments.

III.C.1) c) on pages 728-729 III.A.3) b)xiv) on pages 177-179 III.B.1) s) on pages 620-622 III.A.11) a) on pages 513-515, 517-518, and 520-521 III.A.16) f) on page 547 III.A.19) b) on pages 570-571 III.B.8) a) on pages 648-651 III.C.1) ii) on pages 711-713