1 State of California

AIR RESOURCES BOARD

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

PUBLIC HEARING TO CONSIDER ADOPTING THE REGULATION FOR MOBILE

CARGO HANDLING EQUIPMENT AT PORTS AND INTERMODAL RA IL YARDS

Public Hearing Date: December 8, 2005 Public Availability of Modified Text Date: May 18, 2006

Deadline for Public Commen t: June 2, 2006

At its December 8, 2005, public hearing, the Air Re sources Board (Board or ARB) approved the adoption of section 2479, title 13, Ca lifornia Code of Regulations (CCR). The approved section 2479 is a regulation for mobil e cargo handling equipment at ports and intermodal rail yards.

The proposed regulation for Mobile Cargo Handling E quipment at Ports and Intermodal Rail Yards is designed to use the best available co ntrol technology (BACT) to reduce the general public’s exposure to diesel particulate matter and oxides of nitrogen emissions from mobile cargo handling equipment at p orts and intermodal rail yards. The regulation supports the Risk Reduction Plan to Reduce Particulate Matter Emissions from Diesel-Fueled Engines and Vehicles, which was approved by the Board on September 30, 2000.

The Board’s Action

At the December 8, 2005, hearing, the Board adopted Resolution 05-62 (appended to this notice as Attachment 1), approving the adoptio n of the regulation with modifications. In the Resolution, the Board directed the Executive Officer to incorporate the approved modifications into the proposed regulatory text, al ong with such other conforming modifications as may be appropriate, and to make su ch modifications available for a supplemental comment period of at least 15 days.

Modified Text Being Made Available

At the Board’s direction, staff worked with members of the affected industries and associations to develop the proposed modifications. A discussion of the proposed modifications is provided below. The proposed regu latory text, including staff’s proposed modifications, is appended to this notice as Attachment 2. Additions to the initially noticed regulatory text are denoted by un derline and deletions by strikeout

.

Board Resolution 05-62 and the revised regulatory t ext, as provided in Attachment 2, may be downloaded from ARB’s Internet website at th e following address: http://www.arb.ca.gov/regact/cargo2005/cargo2005.ht m . If you would like a hardcopy of2

Attachment 2 sent to you through postal mail, pleas e call Ms. Linda Keifer at (916) 327-1505 and give your name, company name, if any, and mailing address.

Summary of Proposed Modifications

As a result of public comments and testimony receiv ed prior to and during the December 8, 2005 hearing, the Board directed staff to propose changes to the regulation that would primarily allow for public co mment during the Alternative Compliance Plan application process and address the Department of Defense’s concerns regarding military tactical support equipm ent. In addition, staff has proposed changes that would clarify specific provisions of t he regulation and correct clerical

errors.

The following is a summary of the proposed substant ive modifications and staff’s rationale for making them:

Title 13, CCR, Section 2479(c) Exemptions

Military Tactical Support Cargo Handling Equipment: At the Board’s direction, staff added an exemption for military tactical support ca rgo handing equipment.

Title 13, CCR, Section 2479(d) Definitions

Alternative Diesel Fuel: Staff modified this definition relative to the incl usion of

biodiesel to be consistent with the treatment of ce rtain biodiesel blends meeting the

definition of CARB diesel fuel.

California Air Resources Board (CARB) Diesel Fuel: Staff added this definition to support the existing fuel requirements of the regul ation.

Cargo Handling Equipment: Staff modified this definition to clarify the inclu sion of maintenance equipment that is used routinely or for predictable process upsets.

Contiguous Properties: Staff added this definition to support the revise d definition for
port.

Intermodal Rail Yard: Staff modified the definition to include addition al clarification, since the previous definition could have been inter preted to include intermodal distribution centers, which was not the intent.

Military Tactical Support Cargo Handling Equipment: Staff added this definition as part of the new exemption for military tactical sup port cargo handling equipment (see above).

Ocean-going Vessel: Staff added this definition as part of the revise d definition for
port.3

Port: Staff revised this definition to clarify the inclus ion of military terminals and docks that are part of, or on contiguous properties with, non-military terminals and docks.

Terminal: Staff modified this definition to include facilit ies owned and/or operated by the Department of Defense.

Top Handler or Top Pick: Staff modified this definition to correct a cleri cal error.

Verification Procedure: Staff modified this definition to correct a cleri cal error.

Title 13, CCR, Section 2479(e) Requirements

In-Use Performance Standards for Yard Trucks: Compl iance Schedules for In-Use

Yard Trucks. Staff modified the date used to determine the perce ntage of yard trucks that must meet the requirements for each compliance deadline. The percentage will be determined based on the total population of yard tr ucks for a specific model year or model year group that exist in the owner’s or opera tor’s fleet as of January 1 of the first compliance deadline year for that model year or mod el year group. This change allows for early compliance without penalty and is consist ent with staff’s original intent.

In-Use Performance Standards for Non-Yard Truck Mob ile Cargo Handling Equipment: Compliance Option for Basic Container Ha ndling Equipment, Bulk Cargo Handling Equipment, and Rubber-tired Gantry C ranes. Staff modified the text for compliance option (c) for each equipment t ype to correct a clerical error, which had omitted pre-Tier 1 engines.

In-Use Performance Standards for Non-Yard Truck Mob ile Cargo Handling Equipment: Compliance Schedule for Non-Yard Truck Mobile Cargo Handling Equipment. Staff modified the date used to determine the per centage of equipment that must meet the requirements for each compliance deadline. The percentage will be determined based on the total population of non-yar d truck equipment for a specific model year or model year group that exist in the ow ner’s or operator’s fleet as of January 1 of the first compliance deadline year for that model year or model year group. This change allows for early compliance without pen alty and is consistent with staff’s original intent.

Title 13, CCR, Section 2479(h) Alternative Complian ce Plan for Non-Yard Truck Cargo Handling Equipment

Requirements. At the Board’s direction, staff modified the altern ative compliance plan (ACP) language to make it clear that qualifying equ ipment must be located at the same port or intermodal rail yard to which the ACP appli es and cannot be included in more

than one ACP.

Application Process. Numerous modifications were made to the ACP Applica tion Process in the original proposal to address the Boa rd’s directive to require the ACP to4

include provisions for public comment. Under the p roposed modifications, all documents pertaining to ACP applications will be ma de available for public review. In addition, two separate public comment periods will be provided during the application process. The first will be provided after the Exec utive Officer has deemed the application to be “complete.” The second will be p rovided after the Executive Officer proposes to approve or disapprove the application. This comment period will allow the public to comment on the proposed decision by the E xecutive Officer before final action is taken, as well as a second opportunity to commen t on the application.

Revocation or Modification of Approved ACPs. This provision was added to enable the Executive Officer to revoke or modify an ACP if there have been violations to the ACP, or if the Executive Officer has reason to beli eve that the applicant no longer meets

the criteria for an ACP.

Title 13, CCR, Sections 2479(j) Reporting Requireme nts

Demonstration of Compliance. This paragraph was revised to clarify that the Demonstration of Compliance pertains to each in-use cargo handling equipment engine or vehicle subject to the requirements of subsectio n (e).

Annual Reporting. This paragraph was revised to require annual repo rting of the population (number) of equipment in each yard truckmodel year group and each nonyard truck model year group in order to determine c ompliance percentage requirements.

Supporting Documents and Information

. In accordance with Government Code section 11347.1, staff has added to the rulemaking record the following documents, which are incorporated by reference in the regulati on:

Diesel Particulate Matter Exposure Assessment Study for the Ports of Los Angeles and Long Beach

The document cited above is the final version of th e draft document included as Appendix C in the Initial Statement of Reasons (Sta ff Report).

By this notice, the modified regulation and additio nal 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 ARB’s Internet website at the followi ng address: http://www.arb.ca.gov/regact/cargo2005/cargo2005.ht m , 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 2479, title 13, CCR after making the modified5

regulatory language available to the public for a s upplemental written comment period of at least 15 days. The Board further provided th at the Executive Officer shall consider such written comments as may be submitted during th is period, shall make such modifications as may be appropriate in light of com ments received, and shall present the regulations to the Board for further considerat ion if she determines that this is

warranted.

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

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 are to be transmitted to t he Clerk of the Board at (916) 322-3928.

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 and other information made available by this notice shall be considered b y the Executive Officer.

Attachments