TITLE 13. CALIFORNIA AIR RESOURCES BOARD

NOTICE OF PUBLIC HEARING TO CONSIDER AMENDMENTS TO THE 

REGULATION FOR MOBILE CARGO HANDLING EQUIPMENT AT PORTS AND

INTERMODAL RAIL YARDS

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

place noted below to consider adoption of amendments to the Regulation for Mobile 

Cargo Handling Equipment at Ports and Intermodal Rail Yards (section 2479, title 13, 

California Code of Regulations (CCR)).

DATE: September 22, 2011

TIME: 9:00 a.m.

PLACE: California Environmental Protection Agency

Air Resources Board

Byron Sher Auditorium, Second Floor

1001 I Street

Sacramento, California 95814

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

9:00 a.m., September 22, 2011, and may continue at 8:30 a.m., September 23, 2011. 

This item may not be considered until September 23, 2011. Please consult the agenda 

for the hearing, which will be available at least 10 days before September 22, 2011, to 

determine the day on which this item will be considered.

INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT 

OVERVIEW

Sections Affected: Proposed amendment of section 2479, title 13, California Code of 

Regulations, the Regulation for Mobile Cargo Handling Equipment at Ports and 

Intermodal Rail Yards (CHE Regulation or regulation). The following documents would 

be incorporated in the regulation by reference: (1) Society of Automotive Engineers 

(SAE) Snap-Acceleration Smoke Test Procedures for Heavy-Duty Diesel Powered 

Vehicles as set forth in SAEJ1667 issued February 1996; (2) International Standard ISO 

8178-4(E):1996, “Reciprocating Internal Combustion Engines – Exhaust Emission 

Measurement – Part 4: Test Cycles for Different Engine Applications”; (3) International 

Standard ISO 8178-2(E):1996, “Reciprocating Internal Combustion Engines – Exhaust 

Emission Measurement – Part 2: Measurement of Gaseous and Particulate Exhaust 

Emissions at Site, and (4) International Standard ISO 8178-1(E):1996, “Reciprocating

Internal Combustion Engines – Exhaust Emission Measurement – Part 1: Test Bed 

Measurement of Gaseous and Particulate Exhaust Emission.
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Background:

In December 2005, the ARB approved for adoption the CHE Regulation as one of many 

steps to reduce emission from goods movement activities.1 The regulation reduces 

emissions of diesel particulate matter (PM) and oxides of nitrogen (NOx). The 

regulation also fulfills an element of the Diesel Risk Reduction Plan, adopted by the 

Board in 2000, that identified available strategies for reducing diesel PM. Diesel PM 

emission reductions are needed to reduce the potential cancer risk and other adverse 

impacts from exposure to this toxic air contaminant (TAC) for the people who live in the 

vicinity of California’s major ports and intermodal rail yards. The regulation reduces 

diesel PM and NOx that contribute to regional PM and assist California in its goal of 

achieving state and federal air quality standards. Reductions in NOx, a precursor in the 

formation of ozone, also helps reduce regional ozone levels.

The regulation, effective December 6, 2006, establishes best available control 

technology (BACT) for new and in-use mobile cargo handling equipment (CHE) that 

operate at California’s ports and intermodal rail yards. The regulation requires yard 

trucks that operate at a port or intermodal rail yard in California to meet in-use 

performance standards through accelerated turnover of older yard trucks to ones 

equipped with cleaner, on-road engines. Non-yard truck equipment is also required to 

meet BACT. This equipment includes retrofits and/or replacement to cleaner on-road or 

off-road engines. Owners or operators are required to maintain records of their 

equipment, compliance method, and compliance dates, as well as periodically report to 

ARB their compliance plans and demonstrations of compliance.

The proposed amendments would provide owners/operators with additional flexibility for 

the purpose of reducing compliance costs, maintain the emissions reduction benefits of 

the regulation, initiate an opacity based monitoring program, and clarify several of the 

regulation’s provisions. The proposed amendments would continue to protect the 

public’s health while providing cargo handling equipment (CHE) owners/operators with

additional flexibility to comply with the regulation in the most cost-effective manner. The 

proposed amendments are summarized below.

DESCRIPTION OF THE PROPOSED REGULATORY ACTION

The proposed amendments were designed to provide additional compliance flexibility, 

maintain the anticipated emission reductions, and clarify several provisions in the 

regulation. The proposed amendments address several areas including: retrofit 

requirements, operational requirements, emission standards, compliance provisions, 

definitions, and other clarifying language. 

 1 The regulation was formally adopted October 17, 2006 and became effective on December 31, 2006.
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Retrofit Requirements

Additional time for equipment with no VDECS available: Staff is proposing to add two 

years to the current two years maximum annual compliance extensions for in-use nonyard truck equipment for which there are no VDECS available to provide 

owner/operators the flexibility to use the least costly compliance option. 

Add a safety provision for VDECS: Staff is proposing to add VDECS safety as a reason 

for determining that there is “No VDECS Available” and granting an annual extension. 

Under the amendment, the owner/operator would have to demonstrate that there is no 

VDECS that can be safely and feasibly used for a particular type of equipment. The 

extension would be reviewed annually and additional extensions would be contingent 

upon a re-evaluation of whether or not there continues to be no VDECS available for 

reasons of safety or feasibility. 

Allow more time for extension application: The time frame to apply for the “No VDECS

Available” extension would be changed from 6 months to 60 days prior to the 

compliance deadline in order to give operators more time to determine if a compliance 

extension is needed. 

Require equipment with a “No VDECS Available” extension to be brought into 

compliance within 6 months after a VDECS does become available: Staff is proposing 

that the “No VDECS Available” extension be amended to require the installation of 

VDECS, or another compliance option, within six months of notification that a VDECS 

has become available for the equipment. This is consistent with the current 

requirements for new equipment that must be retrofitted. 

Allow extensions for experimental diesel PM emissions control strategies for gathering 

verification data: Staff is proposing to expand the “No VDECS Available” extension for 

an experimental diesel emission control strategy to allow CHE owners/operators to 

gather information needed for verification. 

Operational Practices

Low-use compliance extension: Staff is proposing two one-year annual compliance 

extensions for equipment that operates 200 hours per year or less. The amendment 

would allow ARB to limit the number of extensions per fleet to two pieces of equipment 

or two percent of the fleet equipment.

Non-yard truck equipment transfers: Staff is proposing to allow non-yard truck 

equipment owned or leased by one party to be transferred to another location within 

California that is owned or leased by the same party. Transfers could not be used to 

comply, or delay compliance, with the regulation. The equipment would be required to 

apply BACT prior to being used in the new location. ARB would approve transfer 

requests, on a case-by-case basis, for non-yard truck equipment only. 
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Warranty engine replacement: Staff is proposing an amendment to allow, in cases of 

premature engine failure, owners/operators to replace an engine under the original 

equipment manufacturers warranty with a like-engine even when newer engine 

standards are in place.

Allow rental of non–compliant equipment for manufacturer delivery delays: Staff is 

proposing, in cases where new compliant equipment has been purchased but there is a 

delay in delivery, to allow owners/operators, for period of up to six months or until new 

equipment can be delivered, to rent or lease equipment that does not meet current 

emission standards, if rental equipment meeting current standards are not available and 

the owner/operator can demonstrate the need to use such equipment. The rental or 

leased equipment that could be used under the amendment can only be one Tier lower 

than required engine standards (i.e., if Tier 4 engine standards are in place, only Tier 3 

engines could be rented).

Initiate CHE opacity based monitoring program: Staff is proposing that an opacitybased monitoring program be incorporated into the CHE Regulation. This program 

would establish work practice requirements for annual opacity monitoring of all CHE to 

ensure proper operation and maintenance such that engines continue to perform as 

designed or certified. Retrofitted engines would be monitored annually to ensure that 

the engine continues to be incompliance with the VDECS executive order. 

Emission Standards

Treat Tier 4 Engines Certified to Alternate PM Emissions Standards as Tier 3 Engines: 

Staff is proposing to require that any engine certified to Tier 4 Family Emission Limit

(FEL) Alternate PM standards (Alt PM standards) be retrofitted with highest level 

VDECS within one year of acquisition. The U.S. EPA allows engine manufacturers to 

produce a specified percentage of Tier 4 engines built to alternative, less stringent, PM 

and NOx emissions limits. These engines are referred to as FEL or Averaging, Banking, 

and Trading (AB&T) engines. The Tier 4 Alt PM standards are essentially Tier 3 

standards. Their use would effectively undermine the emission reductions that were 

anticipated to be achieved by the CHE Regulation with the introduction of Tier 4 

engines. 

Allow demonstration of emissions equivalency for alternative technology: Staff is 

proposing an amendment to allow owners/operators to use power systems that they can 

demonstrate compliance with the applicable new or in-use emissions limits. Hybrid 

power systems are an example of a type of systems that could benefit from this 

amendment.

Compliance Requirements

Allow compliance schedule modification to bring older engines into compliance first: 

Staff is proposing to allow CHE owners/operators to modify their non-yard truck 

compliance schedules to permit them to bring older model-year engines into compliance 
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prior to newer model-year engines that are otherwise required to come into compliance

before the older model-year engines. The number of engines required to comply each 

year would remain the same. 

Exempt equipment at rural low-throughput ports: Staff is proposing that any port that 

has an average annual throughput of less than one million tons and is located more 

than 75 miles from an urban area would be exempt from the requirements of the CHE 

Regulation. The Port of Humboldt Bay is the only port that currently meets this set of 

criteria. If adopted, CHE with off-road engines at an exempted port would be subject to 

ARB’s off-road in-use equipment regulation. CHE with on-road engines would be 

subject to the on-road truck and bus regulation. The Port of Humboldt Bay is in an 

ozone attainment area and does not contribute to any downwind violations. 

Amendments to Clarify Language and Intent

Definitions: Staff is proposing to clarify the intent of the CHE Regulation by modifying 

several existing definitions including: port; owner or operator; intermodal rail yard; 

newly, purchased, leased or rented cargo handling equipment; rubber-tired gantry 

crane; retirement or retire; and compression ignition engines.

In addition, staff is proposing to add definitions for the following terms to support both 

modified definitions and other amendments: alternate PM standard; two-year average 

annual cargo throughput; water-borne commerce; construction activities; cargo; Class I 

Railroad; low-throughput port; opacity; otto cycle engine; safe; urban area; warranty 

period; and Family Emissions Limit. 

Clarifying Language: Staff is also proposing to clarify that equipment brought onto a 

port or intermodal rail yard solely for construction or unexpected repairs are exempt 

from the regulation and other clarifying changes.

COMPARABLE FEDERAL REGULATIONS

Presently, no federal law has been promulgated addressing emission reductions from 

in-use CHE engines. Unless specifically preempted under Section 209(e)(1), California 

is the only state allowed to adopt emission requirements for off-road engines that are 

different from those of the federal government. Section 209(e)(2)(A) of the federal 

Clean Air Act (CAA) authorizes California to adopt and enforce emission standards and 

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

preemption, so long as the California standards “will be, in the aggregate, at least as 

protective of public health and welfare as the applicable Federal standards.” However, 

California must apply for, and receive authorization from, the administrator of the United 

States Environmental Protection Agency (U.S. EPA) before ARB may enforce its 

regulations.

In January 2007, the ARB submitted a waiver and authorization request to the U.S. 

EPA, pursuant to section 209(e)(2) of the federal Clean Air Act. On January 25, 2011, 
6

the U.S. EPA initiated a public comment period on ARB’s authorization request. This 

comment period ended March 17, 2011. As of this publication, the U.S. EPA has not 

yet made a decision on the request. 

The proposed amendments to the regulation continue to rely on the implementation of 

U.S. EPA’s Tier 4 nonroad emission standards for new diesel engines, with which the 

ARB has harmonized, since engine replacement continues to be one of many 

compliance pathways. While under CAA Section 213, U.S. EPA may only adopt new 

emission standards for nonroad engines; California is the only government agency in 

the nation that may adopt in-use emission standards for non-road engines.

AVAILABILITY OF DOCUMENTS AND AGENCY CONTACT PERSONS

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

proposed amendments to the regulation, which includes a summary of the potential 

environmental and economic impacts, if any, of the proposed amendments. The ISOR 

is entitled, “Staff Report: Initial Statement of Reasons for the Proposed Amendments to 

the Regulation for Mobile Cargo Handling Equipment at Ports and Intermodal Rail 

Yards.”

Copies of the ISOR and the full text of the proposed regulatory language, in underline 

and strikeout format to allow comparison with existing regulations, may be accessed on 

ARB’s website listed below, or may be obtained from the Public Information Office, Air 

Resources Board, 1001 I Street, Visitors and Environmental Services Center, First

Floor, Sacramento, California 95814, (916) 322-2990, on August 3, 2011.

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

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

accessed on ARB’s website listed below.

Inquiries concerning the substance of the proposed regulation may be directed to the 

designated agency contact persons, Cherie Rainforth, Manager of the Control 

Strategies Section, at (916) 327-7213 or Kirk Rosenkranz, Air Pollution Specialist, at 

(916) 327-7843.

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

nonsubstantive inquiries concerning the proposed administrative action may be directed 

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

Unit, (916) 322-4011, or Ms. Trini Balcazar, Regulations Coordinator, (916) 445-9564. 

The Board has compiled a record for this rulemaking action, which includes all the 

information upon which the proposal is based. This material is available for inspection 

upon request to the contact persons.

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

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

http://www.arb.ca.gov/regact/2011/cargo11/cargo11.htm. 
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COSTS TO PUBLIC AGENCIES AND TO BUSINESSES AND PERSONS AFFECTED

The determinations of the Board's Executive Officer concerning the costs or savings 

necessarily incurred by public agencies and private persons and businesses in 

reasonable compliance with the proposed regulations are presented below.

Pursuant to Government Code sections 11346.5(a)(5) and 11346.5(a)(6), the Executive 

Officer has determined, with the exception noted below, that the proposed regulatory 

action would not create costs or savings to any State agency or in federal funding to the 

State, costs or mandate 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), or other nondiscretionary cost or savings to State or 

local agencies. The proposed amendments would impose a mandate on some local 

agencies established for the oversight of ports that also own CHE, but any costs 

incurred are not reimbursable under Government Code section 17500 et seq. 

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

impacts on representative private persons or businesses. ARB staff estimated that 

while the amendments would result in both costs and savings to businesses, the overall 

total statewide impact on businesses would be a net savings of $1 to $2 million in 2011 

dollars over the time period of 2011 to 2020. The annual net savings range from 

$100,000 to $200,000 statewide. 

For those businesses that operate at ports or intermodal rail yards, and have diesel 

powered cargo handling equipment, the costs due to the amendments will vary 

depending on the age, number and type of equipment operated. While the costs due to 

the amendments implementing an opacity based monitoring program are fairly 

predictable for a typical business, the various savings provided by the amendments, 

such as those due to the additional two years of extensions for equipment with “No 

VDECS Available”, or due to the flexibility to move equipment when business needs 

arise, are less predictable. Additionally, the only other cost due to the amendments, the 

cost to retrofit Tier 4 engines certified to the FEL Alt PM standards, may be an 

avoidable cost as owners/operators may have the choice to purchase Tier 4 engines 

meeting the non-FEL standards. 

It would be expected that the costs and savings associated with the different 

amendments would impact the different sectors of the industry in a relatively uniform 

manner. The one exception to this would be the amendment to exempt small rural 

ports. The approximately $1 million savings associated with this amendment would 

impact only those businesses operating at the Port of Humboldt Bay.

The Executive Officer has determined that, because there are net savings from the 

proposed regulatory actions, no significant impact on mobile cargo handling equipment 

owner/operators, businesses that import or export goods, California port 

competitiveness, or on individuals purchasing such goods is expected, even if all these 

costs were passed on to the consumer. 
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The Executive Officer 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 states, or on representative private persons. A number of businesses are 

integrally linked to the goods that travel through California ports and intermodal rail 

yards. However, we do not believe that the added costs of some of the proposed 

regulatory actions would result in vessel operators or shippers choosing alternative 

ports and intermodal rail yards outside California. 

In accordance with Government Code section 11346.3, the Executive Officer has 

determined that the proposed regulatory action would not significantly affect the creation 

or elimination of jobs within the State of California, the creation of new businesses or 

elimination of existing businesses within the State of California, or the expansion of 

businesses currently doing business within the State of California. A short delay in 

capital investment could be expected due to the amendments that provide for a two 

year delay in compliance for equipment with no VDECS available and low-use 

equipment. This delay is expected to benefit equipment owners/operators and has no 

adverse impact on VDECS manufactures because these manufacturers are unable to 

supply a marketable VDECS at this time. No other impacts on business would be 

expected. 

The Executive Officer has also determined, pursuant to title 1, CCR, section 4, that the 

proposed regulatory action would affect, but not adversely impact, small businesses. 

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

Executive Officer has found that the proposed regulatory action will have no significant

impact with regard to reporting requirements since only minor changes are proposed to 

these provisions of the regulations. 

Before taking final action on the proposed regulatory action, 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 effective 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.

A detailed assessment of the economic impacts of the proposed regulatory action can 

be found in the ISOR.
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SUBMITTAL OF COMMENTS

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

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

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

August 8, 2011. To be considered by the Board, written comments, not physically 

submitted at the meeting, must be submitted on or after August 8, 2011 and received no 

later than 12:00 noon on September 21, 2011, 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 

*New Feature*

You can now sign up online in advance to speak at the Board meeting when you 

submit an electronic board item comment. For more information go to: 

http://www.arb.ca.gov/board/online-signup.htm.

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

seq.), your written and oral comments, attachments, and associated contact information 

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

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

available via Google, Yahoo, and any other search engines.

ARB requests that written and email statements on this item be filed at least 10 days 

prior to the hearing so that ARB staff and Board members have additional time to 

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.

Additionally, the Board requests but does not require that persons who submit written

comments to the Board reference the title of the proposal in their comments to facilitate

review.

STATUTORY AUTHORITY AND REFERENCES

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

Code, sections 39002, 39600, 39515, 39516, 39600, 39601, 39602, 39650, 39655, 

39656, 39658, 39659, 39665, 39666, 39667, 39674, 39675, 40000, 41511, 43000.5, 

43013, and 43018. This action is proposed to implement, interpret, and make specific 

Health and Safety Code sections 39002, 39515, 39516, 39600, 39601, 39602, 39650, 

39655, 39656, 39657, 39658, 39659, 39665, 39666, 39667, 39674, 39675, 40000, 

41511, 43000.5, 43013, and 43018.
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HEARING PROCEDURES

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

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

with section 11340). 

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

proposed, or with non-substantial or grammatical modifications. The Board may also 

adopt the proposed regulatory language with other modifications if the text as modified 

is sufficiently related to the originally proposed text that the public was adequately 

placed on notice that the regulatory language as modified could result from the 

proposed regulatory action; in such an event, the full regulatory text, with the 

modifications clearly indicated, will be made available to the public, for written comment,

at least 15-days before it is adopted.

The public may request a copy of the modified regulatory text from ARB's Public 

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

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

document will also be posted on ARB’s website listed above.

SPECIAL ACCOMODATION 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 alternative 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 soon as possible, 

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

TTY/TDD/Speech-to-Speech users may dial 7-1-1 for the California Relay Service.

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

siguientes:

• Un interprete que este disponible en la audiencia.

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

en impresion grande) u otro idioma.

• Una acomodacion razonable relacionados con una incapacidad.
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Para solicitar estas comodidades especiales o necesidades de otro idioma, por favor 

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

pronto possible, pero no menos de 10 dias de trabajo antes del dia programado para la 

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

el 7-1-1 para el Servicio de Retransmision de Mensajes de California.

CALIFORNIA AIR RESOURCES BOARD

/s/

________________________________

James N. Goldstene

Executive Officer

Date: July 26, 2011

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

For a list of simple ways you can reduce demand and cut your energy costs, see our Web-site at www.arb.ca.gov."