1 State of California

AIR RESOURCES BOARD

Notice of Public Availability of Modified Text and Availability of Additional Documents

PUBLIC HEARING TO CONSIDER THE ADOPTION OF REGULATI ONS TO REDUCE

EMISSIONS FROM COMMERCIAL HARBOR CRAFT OPERATED WIT HIN

CALIFORNIA WATERS AND 24 NAUTICAL MILES OF THE CALI FORNIA BASELINE

Public Hearing Date: October 26, 2007 Public Continuation Hearing Date: November 15, 200 7

Public Availability of Modified Text Date: June 18

, 2008

Deadline for Public Comment: July 3, 2008

At its November 15, 2007 public hearing, the Air Re sources Board (Board or ARB) approved the adoption of section 2299.5, title 13, California Code of Regulations (CCR), and section 93118.5, title 17, CCR. The approved s ection 2299.5 is a regulation for commercial harbor craft. Approved section 93118.5 is an essentially identical airborne toxic control measure (ATCM). Both sections will b e referred to collectively hereafter as the “regulations.”

The regulations will reduce the public’s exposure t o air pollutants from the use of diesel engines on commercial harbor craft operating in any port, roadstead or terminal facility or within all California inland waters; all Califor nia estuarine waters; and within 24 nautical miles of the California shoreline (baselin e), except as otherwise specified in this proposal. The emissions from these diesel engines are transported onshore where they contribute to higher levels of diesel particulate m atter (PM) and ozone pollution in California’s coastal air basins, making attainment of State and federal ambient air quality standards more difficult. Citizens living in portside communities are also exposed to high levels of diesel PM and associated risk of cancer and other health effects. The regulations support the air quality g oals defined in the “Risk Reduction

Plan to Reduce Particulate Matter Emissions from Di esel-Fueled Engines and Vehicles” (approved by the Board on September 30, 2000), and the Goods Movement Emission Reduction Program (approved by the Board on April 2 1, 2006).

The Board’s Action

At the November 15, 2007 hearing, the Board adopted Resolution 07-47 (Resolution) (appended to this notice as Attachment 1), approvin g the adoption of the regulations

with several modifications. The November 2007 hear ing was continued from the October 26, 2007 Board hearing to allow additional time for the Board to consider several issues and for staff to respond to question s raised by the Board. Appended to the Resolution were the initially noticed regulator y text (as Attachment A) and the staff’s2

suggested modifications to that text (as Attachment s B and C), all of which were made available at the hearing. In approving the regulat ions, the Board directed the Executive Officer to incorporate the approved modifications t o the initially noticed text, along with such other conforming modifications as may be appro priate, and to make such modifications available for a supplemental comment period of at least 15 days.

The staff’s proposed substantive modifications are discussed below and set forth in detail in the document appended to this notice as A ttachment 2. Additions to the initially noticed regulatory text are denoted by underline and deletions by strikeout

.

Modified Text Being Made Available

Board Resolution 07-47 (Attachment 1) and the revis ed regulatory text (Attachment 2), may be downloaded from ARB’s Internet website at th e following address: http://www.arb.ca.gov/regact/2007/chc07/chc07.htm . If you would like a hardcopy of either or both attachments sent to you through post al mail, please call Mr. Todd Sterling at (916) 445-1034 and give your name, company name, if any, and mailing address.

Summary of Proposed Modifications

The following is a summary of the proposed substant ive modifications to the regulation and staff’s rationale for making them. Essentially identical changes are made to both regulations. All references to section 2299.5 and section 93118.5 are to titles 13 and 17, CCR, respectively, unless otherwise noted.

Definitions: Staff clarified the definitions for ferries and e xcursion vessels to help differentiate between the two vessel types. (Secti on 2299.5(d) and section 93118.5(d)).

Also, the definition for “ocean-going vessel” was m odified to delete reference to a “registry” and foreign-flagged vessels because staf f believes the remaining three definitions for “ocean-going vessels” sufficiently describe such vessels.

The definition for “Regulated California Waters” wa s modified to correct a slight error in

the coordinates for the overwater Mexico-California border.

Definitions for “Tier 3 Standards” and “Tier 4 Stan dards” were added, along with appropriate citations to the federal rulemaking, to reflect the recent EPA adoption of these standards in May 2008. Also, the definitions for “Tier 1 Standards,” “Tier 2 Standards,” “Tier 3 Standards,” and “Tier 4 Standar ds” were modified to make it clear that in the event of a conflict between a particula r standard in the summaries of those standards in this regulation and the actual corresp onding EPA standard, the EPA

standard will control.

Compliance Schedules and Determination of Engine Mo del Year: Staff modified the applicability of the determination of the engin e model year using the “Engine Model Year +5” method. The modified regulation would res trict the engine model year3

determination to those vessel engines with home por ts outside the South Coast Air Quality Management District (SCAQMD). This modific ation prevents any delay in engine replacement emission reductions in the SCAQM D. (Section 2299.5(e)(6)(C) and section 93118.5(e)(6)(C)).

Compliance Schedules and Determination of Engine Mo del Year: Staff modified the vessels and engine compliance section of the re gulations to accelerate the compliance dates for specific ferry vessel (1996-19 99) model year engines with home ports outside the SCAQMD. In the originally propos ed compliance schedule, 1996- 1999 ferries were required to comply in 2015 or 201 6, depending on the annual engine hours of operation. The Board directed staff to ac celerate the compliance schedule for these ferry engines to 2014. These engines will st ill be replaced with Tier 3 engines, maintain a 15 year engine life on the original engi nes, and accelerate the emission reductions by 1 to 2 years. (Section 2299.5 (e)(6) (D) and section 93118.5 (e)(6)(D)).

Compliance Requirements: Staff clarified when the compliance option involv ing demonstration that the in-use engine meets Tier 2 s tandards may be used. (Section 2299.5(e)(6)(C) and section 93118.5(e)(6)(C)).

Compliance Extensions: Staff added a compliance extension for owners wit h multiple vessels who would need to comply in the first two c ompliance years (2009 and 2010). This extension would allow a phased compliance sche dule providing an additional three to four years for compliance while ensuring that al l engines are in compliance by the end of 2013 maintaining the early reductions necess ary in the SCAQMD and the rest of California. (Section 2299.5(e)(6)(E) and section 9 3118.5(e)(6)(E)).

Special Provisions for DECS: Staff added a repair requirement for a person to m eet when a diesel emission control strategy (DECS) fail s. This requirement gives the option to either repair the DECS within 90 days of a failu re or, if it cannot be repaired, to replace it with another working DECS or use a diffe rent compliance method that meets the requirements of the section. (Section 2299.5(e )(6)(F) and section 93118.5(e)(6)(F)).

Initial and Compliance Plan Reporting Requirements: Staff modified the date when ferry, excursion vessel, tugboat, and towboat owner s would be required to report how they will comply with the in-use emission limit req uirement from the time of the initial reporting in 2009 to February 28 of the year compli ance is required. This would allow vessel owners to develop a plan based on technology available at the time compliance is required and their current economic status. Ves sel owners who choose to comply early can report compliance at that time. (Section 2299.5(h) and section 93118.5(h)).

Violations: Staff modified this provision to make it clear that violations are also subject to the penalties prescribed in Health and Safety Co de §42402 et seq.

In addition to the modifications detailed in Attach ment 2, staff rearranged subsections and paragraphs and made other minor modifications t hroughout the regulatory text to4

improve clarity; to correct spelling, typographical errors, and grammar; to make numbering adjustments; and to correct citations and references.

Supporting Documents and Information

In accordance with Government Code section 11347.1, staff has added to the rulemaking record the following documents that supp ort the proposed action:

• “Assumptions for Estimating Greenhouse Gas Emissio ns from Commercial Harbor Craft Operating in California” -- This docum ent is appended to this notice as Attachment 3 and serves as new Appendix G to the Technical Support Document: Initial Statement of Reasons for Proposed Rulemaking (Technical Support Document), released in September 7, 2007.

• “Estimated Ticket Price Increase for Ferry/Excursi on Businesses” -- This document is appended to this notice as Attachment 4 and serves as new Appendix H to the Technical Support Document.

• “Survey of Ferry Vessel Owner/Operators” -- This d ocument is appended to this notice as Attachment 5 and serves as new Appendix I to the Technical Support

Document.

By this notice, the modified regulations and additi onal documents and information are being made available for public comment prior to th e final action by the Board’s

Executive Officer. All of the documents referenced above are available for public inspection at the ARB’s Internet website at the fol lowing address: http://www.arb.ca.gov/regact/2007/chc07/chc07.htm , or from the Public Information Office, Air Resources Board, 1001 I Street, Visitor s and Environmental Services Center,

1 st Floor, Sacramento, California, 95814.

Comments and Subsequent Action

In accordance with section 11346.8 of the Governmen t Code, the Board directed the Executive Officer to adopt section 2299.5, title 13 , CCR and section 93118.5, title 17, CCR, after making the modified regulatory language available to the public for a supplemental written comment period of at least 15 days. The Board further provided

that the Executive Officer shall consider such writ ten comments as may be submitted during this period, shall make such modifications a s may be appropriate in light of comments received, and shall present the regulation s to the Board for further

consideration if he determines that this is warrant ed.

Written comments on the modifications approved by t he Board must be submitted by postal mail, electronic mail, or facsimile as follo ws:5

Postal mail is to be sent to:

Clerk of the Board

Air Resources Board 1001 “I” Street, 23 rd Floor Sacramento, California 95814

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

Facsimile submissions must be transmitted to the Cl erk of the Board at (916) 322-3928.

Please note that under the California Public Record s Act (Government Code section 6250 et seq.), your written and oral commen ts, attachments, and associated contact information (e.g., your address, phone, ema il, etc.) become part of the public record and can be released to the public upon reque st. Additionally, this information may become available via Google, Yahoo, and any oth er search engines.

In order to be considered by the Executive Officer, comments must be directed to the

ARB in one of the three forms described above and r eceived by ARB by 5:00 p.m., on the deadline date for public comment listed at the beginning of this notice. Only comments relating to the modifications to the text of the regulation or to the additional documents referenced above shall be considered by t he Executive Officer.

Attachments (5)