## Appendix E

Proposed Amendments to the Drayage Truck RegulationE-1

PROPOSED AMENDMENTS TO THE DRAYAGE TRUCK REGULATION

On December 12, 2007, the California Air resources Board approved a new regulation to significantly reduce emissions from drayage truc ks operating at California’s ports and intermodal rail yards. The regulation became law i n December of 2008 and saw its first emission compliance date on January 1, 2010.

The proposed changes to the regulation are being br ought forth to:

• Close a loophole where noncompliant drayage trucks are avoiding the regulation’s requirements by operating outside port and rail yar d properties.

• Achieve the Air Resources Board’s goal of one stat ewide regulation for trucks in

California.

• Maintain the expected near term diesel PM emission reductions at the ports and rail yards.

• Provide flexibility and relief to stakeholders.

A. Current Regulation

The regulation for in-use, on-road diesel-fueled he avy duty drayage trucks (Drayage Truck regulation) was adopted by ARB in December 20 07 to reduce emissions from diesel-fueled heavy duty drayage trucks – described as trucks that predominantly transport containers, bulk, and break-bulk goods to or from ports and intermodal rail yards. The regulation is applicable to owners and operators of tractors with a gross vehicle weight rating (GVWR) greater than 33,000 po unds. Staff estimated that initially there were approximately 25,000 drayage tractors in frequent or semi-frequent service at the major California ports and intermodal rail y ards that were subject to the provisions of the regulation. The Drayage Truck regulation is expected to provide significant reductions in premature death, cancer risk, and non -cancer health impacts from the public’s exposure to diesel particulate matter (PM) in communities located near California’s major ports and intermodal rail yards.

The requirements of the regulation are being implem ented in two phases. In Phase 1, by December 31, 2009, all drayage trucks were requi red to be equipped with a 1994 to 2003 model year (MY) engine and a Level 3 verified diesel emission control strategy (VDECS) for PM emissions or be equipped with a 2004 MY or newer engine. In Phase 2, all drayage trucks are required to meet the 2007 MY engine standard by December 31, 2013. Additionally, drayage trucks must be reg istered in the ARB’s drayage truck registry (DTR) before entering California’s ports a nd rail yards.

Subsequently, on December 11, 2008, the Board appro ved modifications to the Drayage Truck regulation that were proposed during the hearing to consider the adoption of the Truck and Bus regulation. The modi fications provided clarity on the applicability of alternative and duel-fueled diesel trucks, a change in the applicability of liquefied natural gas trucks, and added a Phase 1 r equirement that mandated drayage trucks with 2004-2006 MY engines be retrofitted wit h Level 3 VDECS starting in 2012.

These modifications became law in December of 2009.E-2

B. Proposed Regulatory Amendments

Staff is proposing modifications to align the Draya ge Truck regulation’s requirements with those of the Truck and Bus regulation. The mo dified regulation will facilitate the transition to one statewide truck and bus regulatio n in 2017. Key elements of the proposed amendments include the delay of the Phase 2 compliance requirement that all trucks in California port and intermodal rail yard service meet or exceed 2007 model year California or federal engine emissions standar ds in 2014, additional requirements for Class 7 vehicles (GVWR greater than 26,000 poun ds but less than 33,001 pounds) to be retrofitted with a PM filter by 2014, and for mal provisions to sunset the regulation at the end of 2016. The text of the proposed amend ed drayage truck regulation is contained in Appendix B.

In developing the amendments for the Drayage Truck regulation, staff’s main objectives

were as follows:

• Harmonize the requirements of the Drayage Truck re gulation with those of the Truck and Bus regulation to facilitate the transition int o one statewide rule.

• Provide flexibility to ease the burden of complian ce, wherever possible, in

consideration of the current economic climate.

• Ensure the requirements and goals that reduce expo sures of diesel particulate matter emissions to communities near ports and rail yards remain in effect.

• ‘Level the playing field’ between owners of compli ant drayage trucks that have invested significant funds modernizing their fleets with owners of noncompliant drayage trucks circumventing regulatory requirement s by engaging in dray-off activities outside of port and intermodal rail faci lities.

Staff is proposing several amendments to the existi ng Drayage Truck regulation. The proposed changes are designed to synchronize the re gulation with the Truck and Bus regulation, provide compliance relief to drayage tr uck owner-operators as well as lower the annualized compliance cost of the regulation by extending the period during which drayage vehicles with retrofitted equipment will re main compliant, improve the enforceability of the regulation by minimizing the impacts from dray-off activities occurring near port or rail facilities, formally su nset the Drayage Truck regulation facilitating the transition to one statewide truck and bus regulation, and ensure that diesel PM exposure reduction goals for communities located near port and rail yards are continually being met. The proposed amendments are discussed further as follows.

1. Delay Phase 2 Requirement

Extend the compliance period for vehicles with retr ofitted PM filters by delaying the Phase 2 requirement that drayage trucks meet Califo rnia or federal 2007 model year heavy-duty engine emissions standard by January 1, 2014. The proposed changes would allow trucks to operate with Level 3 VDECS un til Truck and Bus regulation requirements mandate modernization – in the 2020 ti meframe.E-3

2. Sunset Drayage Truck regulation

Staff proposes to sunset the Drayage Truck regulati on on December 31, 2016. This corresponds to the date after which Truck and Bus r egulation requirements effectively require PM controls on trucks in California. After this date, requirements of the Drayage Truck regulation will cease and all trucks in Calif ornia will fall under one rule – the Truck and Bus regulation.

3. Mitigate Dray-Off

Mitigate dray-off activities by expanding the defin ition of a ‘Drayage Truck’ to include trucks hauling cargos, containers, or chassis that are either bound from or destined for a port or intermodal rail yard. These proposed modif ications will allow enforcement to curtail dray-off activity occurring off of port and rail yard properties and hold noncompliant drayage trucks and their dispatching m otor carriers accountable.

4. Include Class 7 Trucks and New Phase 2 PM Emissi ons Control Requirement

To ensure that the Board’s goal of effectively redu cing diesel PM exposures at communities located near the ports and rail yards i s upheld, staff is proposing amendments to expand the definition of a drayage tr uck to include Class 7 trucks and require them to operate with a Level 3 VDECS for PM emissions by 2014. Class 7 trucks are vehicles with GVWR greater than 26,000 p ounds but less than 33,001 pounds and are currently exempt from the requiremen ts of the Drayage Truck regulation. Originally, the Truck and Bus regulati on required all Class 7 trucks statewide (with few exceptions) to operate with a m odel year 2004 or newer engine equipped with a Level 3 VDECS by January 1, 2014. The proposed changes to the Truck and Bus regulation would now allow certain Cl ass 7 trucks to extend their operations until 2017 without additional PM control s. The proposed amendments to the Drayage Truck regulation would keep the original 20 14 PM emission control requirements for Class 7 drayage trucks. Additiona lly, staff’s proposed amendments would eliminate the increasingly popular practice o f operating older and dirtier Class 7 trucks at the ports and rail yards in place of emis sion compliant Class 8 drayage trucks. Therefore, to achieve the Board’s goals of quickly reducing PM emissions exposures to communities located near the ports and intermodal r ail yards, staff is proposing modifications to the Drayage Truck regulation to re quire PM emission controls on Class

7 trucks.