TITLE 13. CALIFORNIA AIR RESOURCES BOARD

NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED AMENDMENT S TO THE AIRBORNE TOXIC CONTROL MEASURE FOR IN

- USE DIESEL

- FUELED TRANSPORT REFRIGERATION UNITS (TRU) AND TRU GENERATOR SETS, AND FACILITIES WHERE TRUs OPERATE

The Air Resources Board (ARB or Board) will conduct a public hearing at the time and place noted bel ow to consider the adoption of amendments to the regulation affecting transport refrigeration units (TRU) and TRU generator sets (TRU gen set) (collectively, TRUs and TRU gen sets shall be referred to as TRUs)

. 1 T he proposed amendments
would primarily pro vide model year (MY) 2001 through 2003 TRU engines that complied
with applicable Low Emission TRU (LETRU) in

- use performance standards by specified time periods

, a one or two year extension from the more stringent Ultra

- Low Emission TRU (ULETRU) in

- use per formance standards. This extension would serve to restore competitive fairness to those businesses that elected to comply with the regulation during 2008 through 2010, although other businesses opted to defer their compliance efforts in light of the U.S. EPA’s delay in issuing ARB an authorization to enforce the regulation. The proposed amendments would also clarify manual recordkeeping requirements for electric standby

- equipped TRUs , and ultimately require automated
electroni c tracking system requirement s for such TRUs, establish requirements for businesses that arrange, hire, contract, or dispatch the transport of goods in
TRU

- equipped trucks, trailers or containers (i.e., brokers, shippers or receivers), and
clari fy issues that were identified during the implementation of the regulation

.

DATE: Octo ber 20 , 201 1

TIME: 9:00 a.m.

PLACE: California Environmental Protection Agency
Air Resources Board Byron Sher Auditorium 1001 I Street Sacramento, California 95814

T his item may be considered at a two

- day meeting of the Board, which will commence

at 9:00 a.m., on Thursday, Octo ber 20

, 201 1 , and may continue at 8:30 a.m., Friday, Octo ber 21

, 201 1 . This item may not be considered until Friday, Octo ber 2 1, 201 1

. Please consult the agenda for the meeting, which will be available at least ten days
before Octo ber 20

, 201 1 , to determine the day on which this item will be considered.

1 Title 13, CCR section 2477 is known as the Transport Refrigeration Unit Airborne Toxic Control Measure
and establishes in

- use performance standards, recordkeeping, and facility reporting requirements for TRUs and TRU generator sets.2 INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT
OVERVIEW

Sections Affected : Proposed amendment of section 2477 and adoption of sections 2477.1, 2477.2, 2477.3, 2477.4, 2477.5, 2477.6, 2477.7, 2477.8, 2477.9, 2477.10, 2477.11, 2477.12, 2477.13, 2477.14, 2477.15, 2477.16, 2477.17, 2477.18, 2477.19, 2477.20, and 2477.21

, California Code of Regulations (CCR), title 13, Division 3, Chapter 9, Article 8.

Background : Over 90 percent of Californians breathe unhealthful air at times. To improve air quality and human health, ARB establishes requirements to reduce
emissions from new and i n

- use on

- road and off

- road vehicles, engines, and other

sources.

The California Toxic Air Contaminant Identification and Control Program, established under California law by Assembly Bill 1807 (Stats. 1983, Ch. 1047) and set forth in Health and Safety Cod e (H&S Code) sections 39650

- 39675, requires ARB to identify and control air toxicants in California. In 1998

, the Board identified particulate matter (PM) emissions from diesel

- fueled engines as a toxic air contaminant (TAC) . Two years later, in Septembe r 2000, the Board adopted the Risk Reduction Plan to Reduce
Particulate Matter Emissions from Diesel

- Fueled Engines and Vehicles ( Diesel Risk
Reduction Plan (RRP) )

. The Diesel RRP established a goal of reducing emissions and
the resultant health risk from virtually all diesel

- fueled engines and vehicles within the State of California by the year 2020

, and included the goal of reducing diesel PM by
85 percent in 2020 from the baseline emissions in 2000 . The Diesel RRP also identified
various control measur es for achieving the goals

. These measures includ ed new, more stringent standards for all new diesel

- fueled engines and vehicles, the replacement of
older in

- use engines with new, cleaner engines, the use of diesel emission control strategies on in

- use engines, and the use of low

- sulfur and alternative diesel fuel s

.

TRU diesel engines currently (2011) emit approximately 1. 4 tons per day of diesel PM

. Staff determined that there are situations where the public’s estimated 70

- year potential
cancer risk r esulting from exposure to diesel PM emissions from TRUs is in excess of a
100 in a million

, because of the high cancer

- causing potential of diesel PM and the potential for large numbers of TRUs to operate at one location, such as distribution
centers locat ed near residential areas.

On May 16, 2002, the Board approved the Verifica tion Procedure, Warranty and In

- Use Compliance Requirements for In

- Use Strategies to Control Emissions from Diesel Engines ( title 13 CCR

, s ections 2700

- 2710). This regulation esta blishes procedures for the verification of diesel emission control strategies by ARB that can be utilized in
various diesel

- fueled engines , including those in TRUs, to significantly reduce diesel PM
emissions.

Health and Safety Code (H&S Code) sections 39666 and 39667 require ARB to adopt regulations to achieve the maximum possible reduction in public exposure to TACs3 through the application of best available control technology (BACT), or a more effective control method, in consideration of cost, risk, e nvironmental impacts, and other specified factors.

The TRU ATCM is part of ARB ’s ongoing effort to reduce PM emissions from
diesel

- fueled engines and vehicles

, and to improve air quality. ARB adopted the TRU Airborne Toxic Control Measure ( ATCM ) in 2004

. The TRU ATCM establish ed in

- use performance standards for TRUs and TRU gen sets that were to be phased in commencing on December 31, 2008. In March 2005, ARB requested that the U.S. Environmental Protection Agency ( U.S. EPA) grant ARB authorization to a dopt and enforce the TRU ATCM pursuant to Clean Air Act (CAA) section 209(e)(2 ); U.S. EPA granted California such authorization on January 16, 2009. However, b ecause U.S. EPA’s authorization was granted after the first compliance date specified in the
TRU ATCM, ARB delayed the enforcement of the TRU ATCM’s in

- use performance standards until January 2010.

On February 2, 2011 , the Board adopted amendments to the TRU ATCM that provided
owners of MY 2003 TRU engines in the 25 horsepower (hp) and greater categ ory, and
of MY 2003 and MY 2004 engines in the less than 25 hp category, the option to meet the less stringent L ow

- E mission TRU (LETRU) in

- use performance standard in lieu of complying with the otherwise applicable U ltra

- L ow

- E mission TRU (ULETRU) in

- use performance standard. The Board also adopted amendments to clarify that “flexibility” engines installed in TRUs by original equipment manufacturers before the effective date
of those amendments under either the federal Transitional Program for Equipment
M anufacturers or California’s equipment manufacturer flexibility program (title 13 CCR,
section 2423(d))

, would be provide d seven years of operational life , and that f lexibility engines installed after that date would be subject to shorter operational lives under the
amendments. Finally, the amendments established new reporting requirements on TRU original equipment manufacturers.

Description of the Proposed Regulatory Action : ARB staff is proposing to amend the TRU ATCM to primarily provide model year (MY ) 2001 through 2003 TRU engines that complied with applicable LETRU in

- use performance standards by specified time periods, a one

- or two

- year extension from the more stringent ULETRU in

- use performance standards. The proposed amendments
would also clarif y manual recordkeeping requirements for electric standby

- equipped
TRUs , and ultimately require automated electroni c tracking system requirements for
such TRUs ; establish requirements for businesses that arrange, hire, contract, or dispatch the transport of goods in TRU

- equipped trucks, trailers or containers (i.e., brokers, shippers

, or receivers) ; and clarify issues that were identified during the implementatio n of the regulation. A more detailed description of the proposed amendments is presented below.

Applicability

The proposed amendments would apply to owners of MY 2001 , 2002, and 2003 and older TRU engines that met the LETRU in

- use standards by the ir original ly

- specified4 compliance date s . Freight brokers and forwarders, shippers, and receivers would be affected by the proposed amendments if they arrange the transport of perishable goods on California highways with refrigerated carriers. The amendmen ts would also affect

o wners of TRUs that are equipped with electric standby

, and TRU original equipment manufacturers, dealers, repair shops, lessors and lessee s

, and engine rebuilders.

Extend ULETRU Compliance D ate for MY 2001 and O lder TRU Engines That Complied
With the LETRU In

- Use Performance Standard by December 31

, 2008

This proposed amendment would extend the ULETRU compliance date by one year for
those MY 2001 and older TRU engines that complied with the LETRU in

- use standard by December 31, 2008. This proposed amendment would serve to restore competitive fairness to those businesses that elected to comply with the original TRU regulation during 2008 through 2010, although other businesses opted to defer their compliance efforts given their u ncertainty resulting from U.S. EPA’s delay in issuing ARB an authorization to enforce the regulation. This proposed amendment would accordingly extend the current ULETRU compliance deadline for qualifying TRU engines from
December 31, 2015, until December 31, 2016.

Extend ULETRU Compliance Deadline for MY 2003 and O lder TRU Engines That Complied With the LETRU In

- Use Performance Standard by December 31, 2009 or December 31, 2010

At the Board’s November 18, 2010 public hearing to consider the 2010 amendments to the TRU ATCM, the Board directed staff to evaluate industry’s request that the current

seven

- year operational life for TRUs be extended up to three additional years. Industry’s request would therefore extend the ULETRU compliance dates for M Y 2004 and newer model TRU engines by up to three years. Staff evaluated the public health risk near distribution centers using updated TRU engine activity information and the current U.S. EPA

- sanctioned air dispersion model, and determined that t he publi c health risk at the current seven

- year operational life for TRUs still results in potential cancer risk levels of concern in communities near facilities where TRUs congregate. Extending the operational life of TRU s would only increase these risks. A ccor dingly, staff is not recommending that the current operational life for MY 2004 and newer TRU engines be extended

.

However, staff is proposing to extend the ULETRU compliance date by one year for
MY 2003 and older TRU engines that complied with the LETRU in

- use performance standard by specified dates (December 31, 2009 for MY 2001 and MY 2002 TRU engines; December 31, 2010 for MY 2003 TRU engines). This proposed amendment would operate in conjunction with the proposed amendment described immediately
above , so that MY 2001 and older engines that complied with the LETRU standard by
December 31, 2008 could qualify for a total of a two

- year extension from the ULETRU standard compliance date. This proposed amendment would provide economic relief to
owners who had to take action during the height of the recession . Furthermore, the proposed amendment would only have a minimal emissions impact since most of the5 affected in

- use TRU engines would already be controlled to LETRU levels and the

near

- source public healt h risk impacts associated with those emissions would be
minimal

.

Clarify Operational and Recordkeeping Requirements , and Require Automated Electronic Recordkeeping of Hybrid Electric, Electric

- Standby (E/S) Equipped , and Hybrid Cryogenic TRU s

The TRU AT CM currently allows TRU owner s to utilize hybrid electric, hybrid cryogenic,
and electric

- standby (E/S) equipped TRUs as compliance option s (Alternative Technology compliance option) . This option applies if such TRUs are operated in a
manner that eliminate s diesel engine operations at the facilities where TRUs operate.
When staff established the Alternative Technology compliance provision in the original TRU ATCM, it intended that owners us ing this option needed to document, via recordkeeping , that TRU eng ine operation s at facilities were in fact eliminated

. However, manual records submitted by owners have been incomplete and inconsistent. The proposed amendments would therefore specify the information required to be provided in manual records.

The propo sed amendments clarify that Alternative Technology compliant TRUs are allowed to operate under diesel engine power from the time they enter the facility fence line or property line until they are parked, from a parking spot to the gate upon leaving
the fac ility, and while being moved to and from loading docks to parking spots by yard
hostlers. Engine run time within a facility fence line would be limited to no more than five minutes each time the unit moves within the facility fence line or property bounda ry.

The proposed amendment s also clarify

, that to qualify as an Alternative Techn ology, facilities in California where E/S

- equipped TRUs are based must have electric power plugs located where TRU equipped trucks are parked for the initial van chill

- d own and while awaiting dispatch and at the loading spaces. These power plug requirements also apply to any nonretail facility in California where an E/S

- equipped TRU truck picks up or delivers goods if the van load includes perishable goods. At retail delive ry and pick

- up points, including but not limited to restaurants, grocery stores, convenience stores, and cafeterias, TRU engine run time is allowed, but limited to no more than 30 minutes per delivery/pick

- up point. Electric power plugs are required at retail delivery and pick

- up points if more than 30 minutes of TRU engine run time is necessary. Finally, hybrid electric or E/S TRUs must be equipped with non

- resettable hour meters that record both engine and shore

- powered electric motor run time (separa tely). This will facilitate hour meter reading records that are required.

T he proposed amendments phase

- in electronic recordkeeping for hybrid electric and E/S TRUs. At least 50 percent of an owner’s fleet of hybrid electric or E/S

- equipped
TRUs that h ave passed an in

- use compliance deadline would need to be equipped with electronic tracking systems by December 31, 2012, and the remainder of those units
would be equipped by December 31, 2013. In addition, 100 percent of an owner’s hybrid electric or E/ S

- equipped TRUs that have a December 31, 2013 in

- use6 compliance date would also have to meet the electronic tracking system requirement. Every year thereafter, all of hybrid electric or E/S

- equipped units that are required to
meet an in

- use standard by the end of the year would be required to meet the electronic tracking system requirement. The electronic tracking systems must provide automated Global Positioning System (GPS) tracking, engine run time monitoring, recordkeeping and reporting. Staff believe s that the use of automated tracking and reporting systems will result improve enforceability and labor savings that more than pay for the capital and operating costs of such systems.

The proposed amendments will require o ut

- of

- state owners that elect to use the Alternative Technology compliance option to register those TRUs in ARBER (in

- state owners are already required to register all of their units).

Requirements T hat Freight Brokers and Forwarders, Shippers, and Receivers Ensur e That the Carriers T hey Hire Use California

- Compliant TRUs

This proposed amendment would require a business entity that arranges, hires, contracts for, or dispatches the transport of perishable goods in TRU

- equipped trucks, trailers, shipping contai ners, or railcars to require the carriers they hire or contract with to only dispatch equipment with TRUs that comply with the TRU ATCM’s in

- use standards if they travel on California highways or railways. That business entity would also be required to pr ovide the driver with their company contact information and a bill of lading that includes shipper, carrier, and receiver information. The driver, in turn would be required to provide this information to an ARB inspector, upon request.

Limited Exemption for Mobile Catering Service TRUs

This proposed amendment would provide a limited exemption to mobile catering companies for TRUs that are used during emergencies, such as TRUs on refrigerated
trucks and trailers that are used to feed emergency responders , such as firefighters suppressing wildfires . The proposed exemption would allow qualifying mobile catering
service s to defer compliance with the in

- use performance standards until January 2025.

Clarifying Requirements for Repowering a TRU With a New R eplacement Engine or a Rebuilt Engine

The proposed amendments clarify that new or rebuilt replacement engines used to repower a TRU must meet more stringent emissions standards than the TRU’s original engine, and are subject to the TRU ATCM’s in

- use stan dards that are based on the new or rebuilt replacement engine’s model year or effective model year.

Current tier new replacement engines would use the engine model year shown on the engine emissions label to determine the in

- use standard that must be met and the
in

- use compliance deadline. Prior

- tier new replacement engines would use the effective model year of the engine, as defined, to determine the in

- use standard that must be met
and the in

- use compliance deadline.7 The proposed amendments would require r ebuilt replacement engines to meet the requirements of a new section of the TRU ATCM ( section 2477.16 ) that clarifies federal and State requirements applicable to TRU engines. The amendments also clarify that when a rebuilt engine meets a prior

- t ier new engine emissions standard, the effective model year is used, which is the last year that the tier standard was in effect. However, if a rebuilt engine meets a tier standard for new engines that is currently in effect, then the model year, for the purposes of the TRU ATCM would be the year that the engine
was rebuilt. Section 2477.16 also includes supplemental label requirements that include the model year.

Clarifying TRU Dealer Requirements to Allow California Dealers to Acquire Non

compliant TRU s and to Transmit Registration Information to the Ultimate Purchaser

The proposed amendments allow dealers doing business in California to purchase, receive, or acquire and possess n oncompliant TRUs in California under certain circumstances (e.g., to acce pt non

- compliant trade

- ins when TRU owners buy new or newer compliant TRUs).

The proposed amendments also require dealers that sell new units or replacement engines, whether new or rebuilt, to pass a registration information document to the ultimate pur chaser at point of sale. The registration document would come with the new unit or new replacement engine from the TRU original equipment manufacturer (OEM), or from the rebuilt engine supplier. If a new replacement engine is not supplied with a registra tion information document, then the dealer must provide a registration information document, which would include all of the engine information needed to register the unit in ARBER.

Provide Extensions When Compliance Technology is Not Available or Based on Delays Due to Private Financing, Equipment Manufacture Delays, or Installer Delays

The proposed amendments would authorize the Executive Officer to grant up to an

one

- year extension of a compliance deadline if no compliance technology is available
for a specific TRU or TRU gen set within six months of a compliance date

, or a one

- time extension, not to exceed four months, if financing, delivery, or installation is delayed

. These amendments provide flexibility in addressing issues related to Verified Diese l Emissions Control Strategies ( VDECS ) and other compliance options which may not be fully available on the market immediately prior to a compliance date.

Clarify Exemptions for Obviously Non

- Operational Equipment and Refrigeration Systems Not Powered by Integral Diesel Engines

The proposed amendments clarify that obviously non

- operational TRUs and TRU gen sets are exempt from certain subsections of the TRU ATCM, and that transport refrigeration systems that are not driven by an integral diesel internal c ombustion engine are exempt from the TRU ATCM.8 Clarify Prohibitions on Selling Non

- compliant TRUs

The proposed amendments extend the prohibitions of selling non

- compliant TRUs to any person selling such non

- complaint units. Auctioneers and motor carri ers are now expressly included in the section prohibiting persons from intentionally or negligently import ing , deliver ing, purchasing, or otherwise acquiring non

- compliant new or used TRU or TRU gen set engine s. The proposed amendments also require a seller of a

non

- compliant unit to disclose to a potential buyer located outside of California that the unit is not compliant with the in

- use requirements and cannot be legally operate d in California . In addition, the proposed amendments also pro hibit an o wner of a TRU equipped with an Alternative Technology, such as electric standby, from selling it, without disclosing in writing that it must be used in a way that qualifies it as an
Alternat ive Technology

.

Clarify and Streamline Requirements for Lessors a nd Lessees

The proposed amendments would formalize policies that staff developed in conjunction with companies that lease or rent TRU

- equipped trucks and trailers which streamline issues related to the ARBER registration requirements, Operator Reports, an d the
in

- use standards.

Allow Use of Unit Manufacture Year Instead of Engine Model Year to Determine Compliance Requirements and Dates

The proposed amendments allow the year that a TRU was manufactured, instead of the TRU engine model year, to be used i n determining the applicable in

- use perform ance standards and the related compliance deadline, provided that the difference between the unit manufacture year and the engine model year is no more than one year. If the
difference between the unit manufacture year and model year is greater than one year, the engine model year must be used to determine compliance dates. However, the engine model year must be used when determining VDECS compatibility and must also be entered into the space for engine model year when registering the TRU in ARBER.

Allow the Use of Unique Identification Numbers Instead of Affixing an ARB Identification Number (IDN)

The TRU ATCM currently requires owners of California

- based TRUs to apply for ARB Identification Numbers ( IDN) and affix or paint the IDNs onto the TRU or TRU generator set (gen set) housing. ARB IDNs are voluntary for out

- of

- state

- based units. The proposed amendments will allow the use of Bureau Int ernational des Containers (BIC) codes, or reporting marks i n place of ARB IDNs, provided: t he owner must still apply for
an ARB IDN if the unit is California

- based, t he BIC

- Code or reporting mark must be
uni que for each piece of equipment, and t he BIC

- Code or reporting mark must meet the same readability specific ations currently required for ARB IDNs.9 Additional Requirements for TRU Original Equipment Manufacturers (OEMs)

The proposed amendments require TRU OEMS that plan to equip TRUs with flexibility engines to : notify ARB at least 12 months in advance of the first flexibility engine
installation in production ; b eginning 120 days after the effective date of the regulation

, provide a supplemental engine emissions label for each flexibility engine installed in new TRUs and attach this label to the engine in a n easily accessible place ; and provide a written disclosure to prospective buyers, prior to sale of new TRUs, notifying them when a TRU is equipped with a flexibility engine, the effective model year of the engine, the ULETRU compliance deadline, and that the effective model year must be entered for the model year when the unit is registered in ARBER.

Beginning 120 days after the effective date of the amendments, t he proposed amendments also require TRU OEM s to provide , for prior

- t ier replacement engines

, supple mental engine emissions labels for each new replacement engine they supply

. This label would list all of the engine information needed to register the equipment in
ARBER ( if the engine manufacturer’s emissions control label d oes not provide this
in formation ) . Additionally, TRU OEMs would be required to provide written disclosure with each prior

- tier engine supplied

. This written disclosure would be passed on to interested buyers, notifying them that they are buying a prior

- tier replacement engine that was manufactured to meet a less stringent prior

- tier emissions standard than is currently required. This notification would also provide the effective model year of the prior

- tier replacement engine and the ULETRU compliance deadline . Finally, the OEMs would be required to provide a registration information document with each prior

- tier replacement engine they supply that would be passed on to the end user. The registration information document would include all of the engine inform ation needed to register the equipment in ARBER and be consistent with the information that is on the engine emissions label and supplemental engine label.

B eginning 120 days after the effective date of the amendments, t he proposed
amendments require TRU OEM s provide, for current

- tier replacement engines and new TRUs and TRU Gen Sets

, a registration information document with each current

- tier replacement engine or new TRU or TRU Gen Set they supply that would be passed on
to the end

- user. This document w ould also include all of the engine information needed to register the equipment in ARBER and be consistent with the registration information that is on the engine emissions label and supplemental engine label.

Additional Requirements for Dealers and Repa ir Shops

The proposed amendments require dealers and repair shops to pass the registration information documents, which are supplied with new units, new replacement engines, and rebuilt engines, to the end

- user. If a registration information document was not included with a replacement engine, the dealer or repair shop would have to provide it.10 Additional Requirements for Engine Rebuilders

The proposed amendments require engine rebuilders to follow the federal and State engine rebuild practices of 40 CFR sections 89.130 and 1068.120, and title 13

, CCR
section 2423(l), and provide the supplemental rebuilt engine labels including engine model, engine effective model year (if prior

- tier standard is met) or model year (if

current

- tier standard is met), and horsepower rating. Supplemental engine labels would need to be affixed to the rebuilt engine in a readily accessible location in accordance
with 40 CFR section 89.110 (for Tier 2), or 40 CFR section 1039.135 (for Tier 4i).

Engine rebuilders would al so be required to provide, within 30 days of request,
documentation and engineering arguments demonstrating that they have complied with the engine rebuilding practices of 40 CFR sections 89.130 and 1068.120, and title 1 3 CCR section 2423(l). This technic al demonstration must be completed, signed, and stamped by a licensed mechanical engineer with knowledge of the design and function of diesel engines and the control of their emissions. As part of the evaluation of the demonstration, the Executive Officer may require an emissions test to be conducted if the documentation and engineering arguments are not found to be satisfactory.

E ngine rebuilders would also be required to provide a registration information document with each rebuilt engine that provides all of the engine information required under
section 2477.5(e), with instructions to the dealer or repair shop to pass t his document through to the end

- user. The information on the registration information document
would need to be consistent with the inf ormation that is on the supplemental engine
label.

Clarify Registration Requirements, Consistent with ARBER Screens

During implementation, staff learned that additional information was needed to validate the registration information that was required by the original regulation. Staff believes
that most of the additional data elements fall within the umbrella of existin g data requirements and they are currently implemented in ARBER; however, adding them specifically would clarify the requirements and improve enforceability. The refore, proposed amendments add registration information requirements to section 2477.5(e)

, wh ich are consistent with current ARBER registration screens.

With the above

- described proposed amendments, the TRU ATCM would continue to substantially decrease diesel PM and NO x emissions, but would defer a small portion of emissions one or two years tow ard the end of the in

- use standards phase

- in (2016

- 2018).

COMPARABLE FEDERAL REGULATIONS

There are no federal regulations comparable to the TRU ATCM for in

- use TRUs. Under federal Clean Air Act (CAA) section 213, U.S. EPA is without authority to adopt in

- use11 standards for off

- road (non

- road) e ngines. 2

Section 209(e)(1) of the CAA conclusively preempts states, including California, from adopting requirements for new off

- road engines less than 175 hp that are used in farm or construction equipment. Under section 209(e)(2), California may adopt and enforce emission standards and other requirements for off

- road engines and equipment not conclusively preempted by section 209(e)(1), so long as California applies for and
receives authorization from the Administrator of U.S. EPA. TRU engines are not used
in farm and construction equipment and are thus not preempted. California requested and received authorization from U.S. EPA for the initially adopted TRU ATCM in January 2009. 3

AVAILABILITY OF DOCUME NTS AND AGENCY CONTACT PERSONS

ARB staff has prepared a Staff Report: Initial Statement of Reasons (ISOR) for the proposed regulatory action, which includes a summary of the potential environmental and economic impacts of the proposal. The report is enti tled, Proposed Amendment of the Airborne Toxic Control Measure for In

- Use Diesel

- Fueled Transport Refrigeration Units and TRU Generator Sets, and Facilities Where TRUs Operate

.

Copies of the ISOR and the full text of the proposed regulatory language, in u nderline
and strike

- out format to allow comparison with the existing TRU ATCM , 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 Cen ter, First Floor, Sacramento, California, 95814, (916) 322

- 2990, on September 2

, 201 1

.

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

acces sed on ARB’s website for this rulemaking at: http://www.arb.ca.gov/regact/2011/tru2011/tru2011.htm

.

Inquiries concerning the substance of the proposed regulations may be directed to th e designated agency contact persons, Richard Boyd, Manager of the Process Evaluation Section, Emission Assessment Branch, Stationary Source Division at (916) 322

- 8285

, or Rod Hill, Staff Air Pollution Specialist, Stationary Source Division at (916) 327

- 563 6.

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 & Regulatory Coordination Uni t, (916) 322

- 4011, or Ms. Amy Whiting, Regulations Coordinator, (916) 322

- 6533. The Board has compiled a record for this rulemaking action, which

2 The California term “off

- road” and the federal term “nonroad” refer to the same sources and are used interchangeably.

3 74 Fed Reg 3030 (January 16, 2009).12 includes all the information upon which the proposal is based. This material is available for inspection upo n 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/2011/tru2011/tru2011.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 amendments are presented below. A
detailed assessmen t of the economic impacts of the proposed regulatory action can be found in the Staff Report.

Costs or Savings to Businesses and Private Individuals

In developing this regulatory proposal, ARB staff evaluated the potential economic impacts on representati ve private persons or businesses.

Overall, there will be a net cost savings for compliance with the proposed amendments of approximately $ 1 3 million (2011 dollars) from 2 011 through 2029

. E xtending the
in

- use standard for ULETRU for MY 2003 and older e ngines which met LETRU by their respective compliance dates will result in a one

- time cost savings of approximately $320,000 in 2011 dollars . The cost savings from us ing electronic recordkeeping for electric standby units compared to manual recordkeeping is about $ 3.9 million. The cost to brokers, shippers or receivers for ensuring that the carriers they contract with only dispatch equipment with compliant TRUs is approximately $900,000 annually, with a total of approximately 11 million dollars from 2011 to 2029. A one

- time cost savings for exempti ng TRUs used in emergencies is about $320,000. A cost savings of about $ 21 million is estimated for allowing us e of the TRU model year rather than the engine model year to determine compliance dates. Requiring OEMs, dealers, installers, and
rebuilders to provid e supplemental engine labeling and registration information
documentation will result in costs of approximately $ 2 00,000 annually, with a total of $ 1.6 million from 2011 to 2020.

The Executive O fficer has made an initial determination that the proposed regulatory
action would not have a significant statewide adverse economic impact directly affecting businesses, including the ability of California businesses to compete with businesses in
other st ates, or on representative private persons.

Alternatives to the proposed amendments are described in more detail in the Staff Report.

In accordance with Government Code section 11346.3, the Executive Officer has determined that the proposed regulatory ac tion would not affect the creation or elimination of jobs within the State of California, the creation of new businesses or13 elimination of existing businesses within the State of California, or the expansion of businesses currently doing business within th e State of California. A detailed assessment of the economic impacts of the proposed regulatory action 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 regulatory action would affect small businesses because staff anticipates there will be cost savings if TRU and TRU gen set owners choose the retrofit compliance option. Compliance cost s would not be affected if owners choose the repower option.

In accor dance with Government Code sections 11346.3(c) and 11346.5(a)(11), the Executive Officer has found that the reporting requirements of the regulation which apply to businesses are necessary for the health, safety, and welfare of the people of the State of C alifornia.

Before taking final action on the proposed regulatory a mendments , the Board must determine that no reasonable alternative considered by the Board, or that has otherwise been identified and brought to the attention of the Board, would be more ef fective 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.

Costs or Savings to Local and State Government Agencies

Pursuant to Government Code sections 11346.5(a)(5), the Executive Officer has determined that the proposed regulatory action would not create any costs to or mandates on any local agency or school district that is reimbursable by the State pursuant to Gove rnment Code, title 2, division 4, part 7 (commencing with section 17500).

Pursuant to Government Code sections 11346.5(a)(6), the Executive Officer has further determined, based on estimates prepared in accordance with instruction adopted by the Department of Finance, that the proposed regulatory action would not create addition al 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 S tate.

Several local agencies

, school districts , and S tate agencies own TRUs, so the compliance cost savings discussed above may apply to these agencies if they own
MY 200 3 and older TRU engines or e ngines with a model year that is one year older than the unit manufacture year

.

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 electr onic submittal before the meeting. The public comment period for this regulatory action will begin on14 Septem ber 3 , 201 1 . To be considered by the Board, written comments, not physically submitted at the meeting, must be submitted on or after Septem ber 3 , 2 01 1 , and
received no later than 12:00 noon on Octo ber 1 9 , 201 1

, 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 under the California Public Records Act (Gov. Code, § 6250 et seq.), written and oral comments, attachments, and associated contact in formation (e.g., your mailing address, phone number , email address , 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.

STATUTORY AUTHORITY AND REFERENCES

This regulatory action is proposed under the au thority granted in Health and Safety Code, sections 39600, 39601, 39618, 39658, 39659, 39666, 39667, 39674, 39675,
42400 , 42400.14, 42400.2, 42400.3.5, 42402. 42402.2 , 42410, 43013, 43018. This action is proposed to implement, interpret, and make specific sections 39618, 39650, 39658, 39659, 39666, 39667, 39674, 39675, 42400 , 42400.1, 42400.2, 42400.3.5

, 42402 , 42402.2 , 42410, 40717.9, 43013, and 43018.

HEARING PROCEDURES

The public hearing will be conducted in accordance with the California Administrat ive 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 modif ied 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 mod ifications clearly indicated, will be made available to the public, for written comment, at least
15 days before it is adopted.15 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.

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 soo n as possible,
but no later tha n 10 business days befo r e the scheduled Board hearing. TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service.

Comodidad espe cial 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 acomo dación 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 d e 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: August 3 1 , 201 1