### STAFF REPORT: INITIAL STATEMENT OF REASONS FOR THE

PROPOSED AMENDMENTS TO THE REGULATIONS APPLICABLE T O

PORTABLE DIESEL ENGINES AND DIESEL ENGINES USED IN

OFF-ROAD AND ON-ROAD VEHICLES

Stationary Source Division Program Evaluation Branch

Release Date: December 10, 2009California Environmental Protection Agency

AIR RESOURCES BOARD



### STAFF REPORT: INITIAL STATEMENT OF REASONS

FOR PROPOSED RULEMAKING

Public Hearing to Consider



### Proposed Amendments to the Regulations Applicable t o Portable Diesel Engines and Diesel Engines Used in Off-Road and On- Road Vehicles

To be considered by the Air Resources Board on Janu ary 28, 2010 at:

California Environmental Protection Agency

Headquarters Building

1001 “I” Street Byron Sher Auditorium Sacramento, California

This report has been reviewed by the staff of the C alifornia Air Resources Board and approved for publication. Approval does not signif y that the contents necessarily reflect the views and policies of the Air Resources Board, nor does mention of trade names or commercial products constitute endorsement or recom mendation for use.California Environmental Protection Agency

AIR RESOURCES BOARD



### PROPOSED AMENDMENTS TO THE REGULATIONS APPLICABLE T O

PORTABLE DIESEL ENGINES AND DIESEL ENGINES USED IN

OFF-ROAD AND ON-ROAD VEHICLES

Primary Author

Joseph Gormley

Contributing Authors

David Brown

Zuzana Vona

Cherie Rainforth

Rich Miller

Legal Counsel

George Poppic, Office of Legal Affairs

Reviewed By:

Robert D. Fletcher, Chief, Stationary Source Divisi on Jorge Fernandez, Chief, Program Evaluation Branch Michael Guzzetta, Manager, Rule Evaluation Section

Acknowledgements

This report was prepared with the assistance and su pport from the other divisions and offices of the Air Resources Board. In addition, w e would like to acknowledge the assistance and cooperation that we have received fr om many individuals and organizations.TABLE OF CONTENTS

Section Page

Executive Summary........................................................................ ........i

I. Introduction.......................................................................

..... ....I-1

II. Portable Equipment Use and Existing Regulatory Programs...... ..........II-1

III. Summary of the Proposed Amendments............

................ .............III-1

IV. Environmental Impacts...........

........ .......... .......... .................... ......IV-1

V. Economic Impacts............................

.......................... ........ .........V-1

Appendices

Appendix A: Proposed Amendments to the Statewide Po rtable Equipment

Registration Program Regulation

Appendix B: Proposed Amendments to the Airborne Tox ic Control Measure

For Diesel Particulate Matter From Portable Engines

Appendix C: Proposed Amendments to the Regulation f or In-Use Off-Road

Diesel-Fueled Fleets

Appendix D: Proposed Amendments to the Regulation f or In-Use On-Road

Heavy-Duty Diesel Vehicles

Appendix E: Discussion of the Emission Factor for T ier 1 Engines <175 bhp

Appendix F: List of Acronymsi 

## Executive Summary

A. INTRODUCTION

This report comprises the Initial Statement of Reas ons for the Air Resources Board’s (ARB or Board) proposed amendments to the:

• Statewide Portable Equipment Registration Program Regulation (Statewide PERP Regulation or PERP);

• Airborne Toxic Control Measure for Diesel Particul ate Matter from Portable Engines (Portable Engine ATCM);

• Regulation for In-Use Off-Road Diesel-Fueled Fleet s (Off-Road Vehicle Regulation); and

• Regulation for In-Use On-Road Heavy-Duty Diesel-Fu eled Vehicles (On-Road Vehicle Regulation)

The Initial Statement of Reasons is required pursua nt to the Administrative Procedures Act (Government Code 11340 et seq.).

This Executive Summary provides an overview of the proposed amendments, a summary of staff recommendations, and a brief discu ssion of the environmental and economic impacts resulting from the proposal. The main report provides a more detailed presentation of the technical aspects of t he proposed amendments.

B. BACKGROUND

There are four regulations affected by this rulemak ing as discussed below.

• The Statewide PERP Regulation: The ARB was mandated by California Health and Safety Code (HSC) sections 41750 through 41755 to adopt a regulation to establish a uniform statewide program for the volun tary registration and regulation of portable engines and equipment units in California. Once registered in this voluntary program, portable engines and equ ipment units may operate throughout the State without having to obtain permi ts from the local air pollution control and air quality management districts (distr icts or local air districts). Thus, the program provides industry with the flexibility to operate portable engines and equipment units under a uniform statewide registrat ion program. The Board originally approved the Statewide PERP Regulation o n March 27, 1997, and subsequently amended it on December 10, 1998, Febru ary 26, 2004, June 22, 2006, March 22, 2007, and December 11, 200 8.

• The Portable Engine ATCM: The Board approved the Portable Engine ATCM on February 26, 2004 to reduce the emissions of diesel particulate matter (PM) from diesel-fueled portable engines, and was subsequentl y amended by the Board on March 22, 2007 and December 11, 2008. The Portable Engine ATCM is one element in the implementation of ARB’s “Risk Reduct ion Plan to Reduce PMii

Emissions from Diesel-Fueled Engines and Vehicles” (Diesel Risk Reduction Plan). It establishes requirements for diesel-fuel ed engines that are registered with ARB or permitted by, or registered with, the d istricts.

The Portable Engine ATCM contains a requirement tha t all diesel engines operating with a permit or registration in Californ ia must be certified to an off-road

emission standard contained in 40 CFR Part 89 or st op operating by January 1, 2010, except for those engines designate d as emergency use or low use. This requirement was first established in 199 7 as part of the Statewide PERP Regulation, giving businesses up to 13 years t o plan for the replacement or retirement of the older engines.

In 2004, this requirement was moved from the Statew ide PERP Regulation to the Portable Engine ATCM so that it would apply to all diesel engines statewide, not just those registered in PERP. The Statewide PERP Regulation maintains a similar requirement for older spark-ignition engine s to be put out of service by the same date. The owners of older spark-ignition eng ines have the option of seeking permits with the districts in lieu of compl ying with the January 1, 2010 deadline in PERP. Currently, there are over 4,300 companies and public agencies with about 29,000 engines registered in PE RP. Of these, about 75 percent hold registrations for certified engines only, so they are already in full compliance with the January 1, 2010 requirement.

• Off-Road Vehicle Regulation: The Board approved the Off-Road Vehicle Regulation on July 26, 2007 to reduce the emissions of diesel particulate matter (PM) and nitrogen oxides (NOx) from diesel-fueled e ngines that drive off-road vehicles. The Board subsequently amended the regul ation on December 11, 2008, January 22, 2009, and July 23, 2 009. The Off-Road Vehicle Regulation is part of ARB’s Diesel Risk Reduction P lan. It establishes requirements for the reporting of diesel vehicles t o ARB, as well as the accelerated turnover of engines in these vehicles t o cleaner engines and the installation of verified diesel emission control sy stems. The December 11, 2008 amendments also made both engines on all two-engine cranes subject to the requirements of the Off-Road Vehicle Regulation. P reviously, the lower drive engine was subject to either the Off-Road or On-Roa d Vehicle Regulation and the upper auxiliary engine was subject to the Porta ble Engine ATCM.

• On-Road Vehicle Regulation: The Board approved the On-Road Vehicle Regulation on December 11, 2008 to reduce the emiss ions of PM from dieselfueled engines that drive on-road trucks and buses. The On-Road Vehicle Regulation is another part of ARB’s Diesel Risk Red uction Plan. It establishes requirements for the registration of on-road vehicl e engines with the ARB and reduction of both NOx and PM from the engines on th ese vehicles.

In recent months, numerous owners of portable engin es and some local air districts have expressed concerns about their ability to comp ly with the requirement to replace all uncertified portable engines by January 1, 2010 . Many of these owners haveiii

indicated that, in large part due to the slower eco nomy, they lack the ongoing revenues to replace older engines with new, less polluting m odels. In response, ARB staff is proposing to allow smaller fleet owners the ability to phase-in compliance by deferring a limited number of uncertified engines until January 1, 2011. This phased-in approach is consistent with other ARB diesel rules and provides some relief in recognition of the economic climate and the difficulty in obtaining fi nancing for replacement engines for smaller companies. The staff’s proposal will provi de some relief to over 90 percent of the companies that currently have uncertified engin es, yet retains over 70 percent of the emissions benefits of the rule expected in 2010, an d the full benefits by 2011.

In addition, members of the California Groundwater Association (CGA) expressed concern that the replacement of older deck engines on existing two-engine water well drilling rigs is either technologically infeasible or severely cost prohibitive, which would force these rigs out of service without replacement . Because engine replacement on these drilling rigs is often not possible, the only other option would be to purchase a new drilling rig, which can cost several hundred thousa nd dollars. This would significantly impact the water well drilling industry. There are currently no available assistance funds for the retrofitting of water well drilling rigs. The technical issues are very similar to the issues with two-engine cranes, which were addressed in previous amendments. CGA contends that, with the current drought conditions facing California, the need for these water well drilling rigs is crucial; therefore, the ir retirement could have a detrimental effect on water availability in the State.

To address the issues identified above, ARB staff, in consultation with affected industry and the local air districts, developed proposed ame ndments to the Statewide PERP Regulation, the Portable Engine ATCM, the Off-Road Vehicle Regulation and the OnRoad Vehicle Regulation. The proposed amendments w ould provide a one year

extension of the deadline for certain uncertified e ngines, provide for the eligibility of certain types of engines, and modify the PERP recor dkeeping and reporting requirements. In addition, the amendments would ma ke both engines on all two-engine water well drilling rigs subject to the requirement s of the Off-Road Vehicle Regulation, whereas currently the lower drive engine is subject to the On-Road Vehicle Regulation and the auxiliary deck engine is subject to the Por table Engine ATCM. The proposed amendments would also provide additional clarity an d enforceability to the Statewide PERP Regulation and Portable Engine ATCM, and ensur e consistency between regulatory requirements and registration practices.

C. PORTABLE EQUIPMENT AND CURRENT REGULATIONS

1. What is portable equipment?

Portable equipment is any piston-driven internal co mbustion engine and/or equipment unit that is designed and capable of being carried or moved from one location to another and would remain at a single location for less than 12 consecutive months. Unlike stationary engines and equipment, portable equipmen t may be moved to multiple locations throughout the State, where it may operat e for several hours or several months. Portable engines and equipment units regis tered in the Portable Equipmentiv

Registration Program are used for a variety of appl ications, such as: water pumps; military tactical support equipment (TSE); cranes; oil well drilling; servicing and work-over rigs; power generators; dredging equipmen t; rock crushing; and screening equipment; welding equipment; wood chippers; and co mpressors.

2. What types of businesses and public agencies use portable equipment?

Both private businesses and public agencies operate portable equipment. The types of businesses that own portable equipment include moti on picture studios; amusement parks; utilities; telecommunications; construction services; crushing, screening, and recycling services; industrial cleaning services; m arine construction and dredging services; oil and gas operations; and rental servic es. Public agencies include schools and universities, county landfills, municipal utili ties, wastewater treatment facilities, defense, public works departments, and transportati on agencies.

3. How is portable equipment regulated in Californi a?

a. ARB/U.S. EPA Off-road Engines Standards

Since January 1, 1996, new diesel-fueled portable e ngines sold in California have been subject to ARB’s Off-Road Compression Ignition emis sion standards. These standards are equivalent to the U.S. Environmental Protection Agency (U.S. EPA) emission standards for newly manufactured nonroad engines. In California statutes, nonroad engines are referred to as off-road engines; theref ore, these engines will be referred to as “off-road” in this report. The standards are ti ered (i.e. Tier 1, 2, 3, and 4) with each set of standards phased in over several years based on the power rating of the engine and becoming progressively more stringent with each tier introduced.

Since January 1, 2001, newly-manufactured large (gr eater than 25 bhp) spark-ignition (LSI) engines sold in California have been subject to ARB’s off-road LSI standards. The U.S. EPA also adopted federal standards that we re equivalent to ARB standards, but also included a more stringent standard. Begin ning in 2007, new LSI engines must meet a combined standard for oxides of nitrogen (NO x) and hydrocarbons (HC) of 2.0 grams per brake horsepower-hour (g/bhp-hr).

b. Airborne Toxic Control Measure for Diesel-Fueled Portable Engines

The current Portable Engine ATCM requires portable diesel-fueled engines that have not been permitted or registered prior to January 1 , 2006, to meet the most stringent of

the federal or California emission standards for no nroad engines in effect at the time of registration or permitting, unless they meet certai n California residency criteria. This requirement was also incorporated into the Statewid e PERP Regulation.

c. Portable Equipment Unit Standards

Registered equipment units are required to meet emi ssion limits (82 pounds per day and 10 tons per year per district of PM10 (particul ate matter sized less thanv

10 microns)) as well as emission control requiremen ts based on the type of equipment

unit. d. District Permit Programs

Permit requirements vary from district to district depending on the state of the air quality in the district. While some districts exempt porta ble engines altogether, other districts may require portable engines to meet emission limit s that are equivalent to Best Available Control Technology (BACT). For some dist ricts, BACT for portable engines means that the engine is certified to ARB/U.S. EPA off-road emissions standards. Districts may also restrict the operating hours of portable engines to reduce air quality impacts to acceptable levels. An owner that operat es portable equipment in multiple districts would be required to obtain a permit from each district, pay fees, and adhere to different sets of regulations as they move equipmen t among different districts.

e. Statewide Portable Equipment Registration Progra m

In lieu of obtaining multiple permits from individu al districts, a portable equipment owner can register in PERP. Currently, portable equipmen t owners have registered in PERP over 38,000 engines, equipment units, and military TSE. Of this amount, there are over 29,000 engines registered which represent about 75 percent of the estimated statewide inventory of portable engines. Most of the engines are diesel-fueled engines. The Statewide PERP Regulation was designed to promote t he use of clean portable engines

in California.

f. Portable Engines on Cranes and Street Sweepers

In December of 2008, the Board approved amendments that made the portable engine used on a two-engine crane subject to the Off-Road Vehicle Regulation and the portable engine used on a two-engine street sweeper subject to the On-Road Vehicle Regulation. Because these engines still meet the d efinition of portable, they may still be subject to district permitting requirements, and th erefore have the option to register in PERP. If registered in PERP, the engines are then subject only to the inspection requirements and fees prescribed by the Statewide P ERP Regulation.

D. PUBLIC PROCESS

ARB staff held a public workshop on November 9, 200 9 in Sacramento to solicit comments from the public on the proposed amendments . The Sacramento workshop was also broadcast on the internet for meeting part icipants that were unable to attend in person. Broadcast viewers were able to submit comm ents and questions by email during the workshop so that staff could address the ir concerns or answer their questions. Staff also used an e-mail list serve to notify interested parties of the workshop and the availability of information to be discussed at the workshop. In addition, a web site was developed where interested parties could download information such as the workshop agenda and staff proposal, as well as providing links to

other-related ARB websites. The website address is located at http://www.arb.ca.gov/portable/portable.htm

.vi

Staff also participated in individual meetings and conference calls with affected industries to address specific concerns. In additi on, staff worked closely with the

California Air Pollution Control Officers Associati on (CAPCOA) in drafting the proposed amendments. Staff revised the proposed amendments to the Statewide PERP Regulation and Portable Engine ATCM in consideratio n of the comments received during the public process. Staff made every effort to consider all comments and

recommendations received.

E. SUMMARY OF THE PROPOSED AMENDMENTS

The proposed amendments are summarized below:

1. Non-Certified Engine Extension

ARB staff proposes to allow owners of small fleets to designate certain engines to operate for one additional year beyond the current January 1, 2010 cessation of operations date. Under this proposal, owners of no more than 25 total portable engines would be able to choose either one engine of any si ze or up to five engines that collectively do not exceed 500 bhp to operate until December 31, 2010. These engines must have been previously registered in PERP or per mitted by a district. Qualifying fleet owners will have to submit a written request to designate which engines they want to continue operating under this provision.

2. On-Highway and Marine Engines

ARB staff proposes to allow engines used in portabl e applications that are certified to the on-highway emission standards contained in 40 C FR Part 86 and used in portable applications to operate beyond January 1, 2010. Th ese on-highway engines will become part of the portable fleet and will be subje ct to the fleet emission standards contained in the Portable Engine ATCM. ARB staff a lso proposes to allow on-highway engines and engines certified to marine emission st andards in 40 CFR Part 94 or 40 CFR Part 1042 to be eligible for PERP.

3. Recordkeeping and Reporting

ARB staff proposes to reduce the amount of recordke eping for certified engines registered in PERP which are not subject to any emi ssion limitations. Staff believes that the Statewide PERP Regulation may be effectively im plemented with reduced recordkeeping and reporting requirements. Staff al so proposes to remove the annual reporting requirement for these certified engines. Engines and equipment units with emission limitations will continue to have daily re cordkeeping and annual reporting requirements of the applicable operational data. S taff proposes to require that the specific location and date is recorded on a regular basis for certified engines and each time it is moved for non-certified engines and equi pment units.vii

4. Vendor Sales Report

ARB staff proposes to remove the vendor sales repor t from the Statewide PERP Regulation.

5. Water Well Drilling Rigs

ARB staff proposes to add a definition for two-engi ne water well drilling rigs. Both of the engines on these rigs will be subject to the Off-Ro ad Vehicle Regulation, and exempted from the On-Road Vehicle Regulation and Portable En gine ATCM. Because the auxiliary deck engine still meets the definition of portable, it may be subject to district permitting requirements and therefore has the optio n of being registered in PERP. If registered in PERP, the engines are then subject on ly to the inspection requirements and fees as prescribed by the Statewide PERP Regula tion. The reporting date for water well drilling rigs in the Off-Road Vehicle Re gulation will also be extended to allow time for the owners of drilling rigs that were prev iously not subject to this regulation to enter their rigs into ARB’s reporting system.

6. Miscellaneous Amendments

ARB staff proposes to modify, add, and delete terms in the definitions section, delete outdated provisions, and make minor revisions where needed. These changes are generally non-substantive and are intended to provi de additional clarity and expediency to the Statewide PERP Regulation and Portable Engin e ATCM, and to ensure consistency between regulatory requirements and reg istration processing practices.

F. ENVIRONMENTAL AND ECONOMIC IMPACTS OF THE PROPOS ED

AMENDMENTS

1. What are the expected environmental impacts of the proposed amendments?

It is expected that the proposed amendments to the Statewide PERP Regulation and Portable Engine ATCM would likely result in a one y ear delay of a portion of the reductions of NOx and diesel PM emissions anticipat ed by the current regulations. With the current requirement to remove uncertified engin es, the expected emission reductions are approximately 9,200 tons per year of NOx and 700 tons per year of PM starting January 1, 2010. With the proposed amend ments, certain older engines would be able to continue operating until December 31, 20 10, resulting in an estimated loss of emission reductions of about 2,400 tons for NOx and 200 tons for PM. Thus, even with the proposed amendments, the regulations will retai n over 70 percent of the benefits in

2010.

It is further expected that the proposed amendments to the Off-Road Vehicle Regulation and On-Road Vehicle Regulation will also result in a delay of the reductions of NOx and diesel PM emissions, although the actual amounts ar e difficult to precisely quantify due to lack of complete information regarding the numbe r and size of affected engines. Currently in PERP, there are 80 uncertified engines on water well drilling rigs subject to the January 1, 2010 replacement requirement contain ed in the Portable Engine ATCM. These engines have a total cumulative size of 15,10 0 horsepower. Subjecting theseviii

engines to the Off-Road regulation rather than the Portable Engine ATCM will result in an estimated delay of about 150 tons for NOx and 10 tons for PM per year until the requirements of the Off-Road Vehicle Regulation tak e effect. 1

2. What are the economic impacts of the proposed a mendments?

ARB staff estimates that the total economic impact of the proposed amendments to the Portable Engine ATCM to affected private businesses and public agencies would be a temporary savings of $66 million for one year ($5 5 million for private businesses and $11 million for public agencies). The economic imp act is due to the extension of the deadline for the replacement of non-certified engin es. ARB staff estimates a negligible economic impact from the other proposed amendments to the Statewide PERP Regulation. These impacts would be due to the cha nge in recordkeeping and reporting requirements.

The cost to replace these non-certified engines is significant. The average cost of a new engine is approximately $175 per horsepower. A n estimated 4,300 older engines, with a total of 1,035,000 horsepower, are subject t o the current requirement to be replaced by January 1, 2010. The cost to replace a ll these engines would be about $180 million. With the current proposal, approxima tely 2,000 engines owned by about 1,130 companies and public agencies with a combined horsepower of approximately 375,000 will be eligible to operate for an addition al year. With an expected cost of $66 million to replace these engines, these amendme nts will provide a maximum one year cost savings of that amount to the private bus inesses and public agencies.

The cost to replace an auxiliary deck engine on a t wo-engine water well drilling rig ranges from $30,000 to $300,000 based on data gathe red by contacting drilling rig manufacturers and dealers. Based on this survey da ta, the average cost to replace a deck engine on a water well drilling rig is $165,00 0. There are currently only 80 of these engines registered in PERP. The estimated cost to replace these engines as required by the Portable Engine ATCM would be about $13 mill ion. 2 By moving these deck engines into the Off-Road Vehicle Regulation, the c ost of replacing or retrofitting the engines is delayed by either 3 or 5 years depending on whether the overall fleet size of each company qualifies at medium or small.

1 Other estimates from the California Groundwater As sociation place the number of uncertified deck engines on two-engine water drilling rigs to be nea r 420, but these estimates are not verified and are not used for any analysis. Furthermore, the estimated 420 engines on these rigs are neither permitted nor registered. Some of the drilling rigs operate in l ocal air districts where permits are not required. Using this estimate of 420 engines, the estimated cumulat ive size of these engines would be 79,200 bhp. Usi ng the same assumptions, the estimated emissions from these engines would be 800 tons per year for NOx and 60 tons per year for PM.

2 As discussed in Footnote 1, the California Groundw ater Association place the number of uncertified deck engines on two-engine water drilling rigs to b e near 420 but these estimates are not verified and are not used for any official analysis. Based on these numbers, the cost to replace these estimated 420 engines would be $69 million.ix

G. NEXT STEPS

Upon approval by the Board, ARB staff will continue to implement the Statewide PERP Regulation and conduct outreach efforts with affect ed parties, industry associations, and governmental agencies. ARB staff will also continu e to work with CAPCOA and affected parties to inform owners and operators of PERP registered equipment of the amendments to the Statewide PERP Regulation, Portab le Engine ATCM, Off-Road Vehicle Regulation, and On-Road Vehicle Regulation. ARB staff is also contacting industry associations in an effort to inform owners and operators of the proposed

amendments.

H. RECOMMENDATION

The staff recommends that the Board approve the pro posed amendments to the Statewide PERP Regulation, the Portable Engine ATCM , and the On-Road and OffRoad Vehicle Regulations. The proposed amendments would retain the flexibility of operating registered engines and equipment units th roughout the State without having to obtain multiple district permits. In addition, the amendments would provide clarity, provide limited and temporary relief for small busi ness and government agencies, and give the districts the ability to effectively enfor ce the Statewide PERP Regulation.I-1

I. INTRODUCTION

In this Chapter, the ARB staff provides an overview of this report, discusses the purpose of the proposed amendments, and discusses the regul atory authority ARB has to adopt the proposed amendments. Included in this Chapter are background information on the Statewide PERP Regulation, the Portable Engine ATCM , and the On-Road and OffRoad Vehicle Regulations, as well as a discussion o f the outreach efforts of ARB staff in developing the proposed amendments.

A. OVERVIEW

This staff report outlines ARB staff’s proposed ame ndments to the Statewide PERP Regulation (contained in Appendix A), the Portable Engine ATCM (contained in Appendix B), the Off-Road Vehicle Regulation (conta ined in Appendix C), and the On-Road Vehicle Regulation (contained in Appendix D )

The Board originally approved the Statewide PERP Re gulation on March 27, 1997, and subsequently amended it on December 10, 1998, Febru ary 26, 2004, June 22, 2006, March 22, 2007, and December 11, 2008. The Statewi de PERP Regulation establishes a voluntary program for the registration and regula tion of portable engines and equipment units operating in California. Once regi stered in this voluntary program, portable engines and equipment units can operate th roughout the State without having to obtain permits from the districts. The district s, in conjunction with ARB, are responsible under State law for enforcing the requi rements of the Statewide PERP Regulation.

The Board approved the Portable Engine ATCM on Febr uary 26, 2004, to reduce the emissions of diesel particulate matter (PM) from di esel-fueled portable engines. The Board amended the regulation on March 22, 2007 and December 11, 2008. The Portable Engine ATCM is part of ARB’s Diesel Risk R eduction Plan. It establishes requirements for both the registration of diesel en gines with the ARB and the permitting or registration of diesel engines by the districts.

The Statewide PERP Regulation was designed to promo te the use of clean portable engines in California. By January 1, 2010, only di esel engines certified to ARB/U.S. EPA nonroad engine emission standards (Tie r 1, 2, or 3) can continue to operate in PERP, unless designated as emergency or low use. This means that most diesel engines currently registered in the program that were not manufactured to meet an ARB/U.S. EPA nonroad engine certification standa rd must be replaced with certified engines by that date. The current Portable Engine ATCM clearly states that uncertified diesel engines must be put out of service by Januar y 1, 2010, unless they are emergency use or low use. Therefore, engines must be so designated by that date or they must go out of service. Of the approximately 4,300 companies registered in PERP, about 75 percent hold registrations for certified e ngines only, so they are in full compliance with the January 1, 2010 requirement. A fter January 1, 2010, spark-ignition engines may continue to operate if they are certifi ed to ARB/U.S. EPA LSI engineI-2

standards, or if they can meet the emission standar ds listed in Table 1 of the Statewide PERP Regulation.

The Board approved the Off-Road Vehicle Regulation on July 26, 2007 to reduce the emissions of diesel particulate matter (PM) from di esel-fueled engines that drive off-road vehicles, and subsequently amended it on D ecember 11, 2008, January 22, 2009, and July 23, 2009. The Off-Road Vehicle Regulation is also part of

ARB’s Diesel Risk Reduction Plan. It establishes r equirements for the reporting of off-road vehicle engines with the ARB and reduction of both NOx and PM from the engines on these vehicles. The December 11, 2008 a mendments made both engines on all two-engine cranes subject to the requirement s of the Off-Road Vehicle Regulation. Previously, the lower drive engine was subject to either the Off-Road or On-Road Vehicle Regulation and the upper auxiliary engine was subject to the Portable Engine ATCM.

The Board approved the On-Road Vehicle Regulation on December 11, 2008 to reduce the emissions of diesel particulate matter (PM) fro m diesel-fueled engines that drive on-road trucks and buses. The On-Road Vehicle Regu lation is another part of ARB’s Diesel Risk Reduction Plan. It establishes require ments for the registration of on-road vehicle engines with the ARB and reduction of both NOx and PM from the engines on

these vehicles.

Finally, the Board adopted the Airborne Toxic Contr ol Measure for Diesel Engines on

Commercial Harbor Craft to control in-use emissions from diesel engines on harbor craft such as ferries, excursion vessels, tugboats, and t owboats. This measure also includes new engine requirements for all harbor craft includ ing dredges and barges. Engines on new vessels and engines replacing in-use engines mu st meet the U.S. EPA marine engine standards in effect at the time of vessel or engine acquisition. The U.S. EPA marine engine standards are tiered standards (Tiers 1, 2, 3, or 4) that were promulgated in 40 CFR Part 94 (Tiers 1 and 2) and 40 CFR Part 1 042 (Tiers 3 and 4). The definition of a portable engine definition includes dredge eng ines on a boat or barge and these engines have been historically required to obtain a permit by districts. These engines were eligible for registration in PERP, until that eligibility was removed in the previous amendments adopted on June 22, 2006.

In recent months, numerous owners of portable engin es and some local air districts have expressed concerns about their ability to comp ly with the requirement to replace all uncertified portable engines by January 1, 2010 . Many of these owners have indicated that, in large part due to the slower eco nomy, they lack the ongoing revenues to replace older engines with new, less polluting m odels. In response, ARB staff is proposing to allow smaller fleet owners the ability to phase-in compliance by deferring a limited number of uncertified engines until January 1, 2011. This phased-in approach is consistent with other ARB diesel rules and provides some relief in recognition of the economic climate and the difficulty in obtaining fi nancing for replacement engines for smaller companies. The staff’s proposal will provi de some relief to over 90 percent of the companies that currently have uncertified engin es, yet retains over 70 percent of the emissions benefits of the rule expected in 2010, an d the full benefits by 2011.I-3

In addition, members of the California Groundwater Association (CGA) expressed concern that the replacement of older deck engines on existing two-engine water well drilling rigs is either technologically infeasible or severely cost prohibitive, which would force these rigs out of service without replacement . Because engine replacement on these drilling rigs is often not possible, the only other option would be to purchase a new drilling rig, which can cost several hundred thousa nd dollars. This would significantly impact the water well drilling industry. There are currently no available assistance funds for the retrofitting of water well drilling rigs. The technical issues are very similar to the issues with two-engine cranes, which were addressed in previous amendments. CGA contends that, with the current drought conditions facing California, the need for these water well drilling rigs is crucial; therefore, the ir retirement could have a detrimental effect on water availability in the State.

To address the issues identified above, ARB staff, in consultation with affected industry and the districts, developed proposed amendments to the Statewide PERP Regulation, the Portable Engine ATCM, the Off-Road Vehicle Regu lation and the On-Road Vehicle Regulation. The proposed amendments will provide a one year extension of the deadline for certain uncertified engines, provide f or the eligibility of certain types of engines, and modify the PERP eligibility, recordkee ping, and reporting requirements. In addition, the amendments make both engines on all t wo-engine water well drilling rigs subject to the requirements of the Off-Road Vehicle Regulation, whereas currently the lower drive engine is subject to the On-Road Vehicl e Regulation and the auxiliary deck engine is subject to the Portable Engine ATCM. The proposed amendments will also provide additional clarity and enforceability to th e Statewide PERP Regulation and Portable Engine ATCM, and ensure consistency betwee n regulatory requirements and registration practices.

This report discusses portable equipment use and ex isting regulatory programs for portable equipment and summarizes the proposed amen dments to the Statewide PERP Regulation, Portable Engine ATCM, Off-Road Vehicle Regulation, and On-Road Vehicle Regulation. Chapters IV and V discuss the environm ental and economic impacts of the proposal.

B. PURPOSE

The primary purpose of the proposed amendments to t he Statewide PERP Regulation and Portable Engine ATCM is to address a number of concerns expressed by impacted businesses and to clarify that any registered auxil iary deck engine on a two-engine water well drilling rig is subject to the Off-Road Vehicle Regulation instead of the Portable Engine ATCM. In addition, staff is propos ing minor changes to increase clarity and enforceability of the regulation.

The primary purpose of the amendments to the Off-Ro ad Vehicle Regulation is to make both engines on two-engine water well drilling rigs subject to the regulation. The primary purpose of the amendments to the On-Road Ve hicle Regulation is to exempt the drive engine on two-engine water well drilling rigs from the regulation.I-4

C. REGULATORY AUTHORITY

Statewide PERP Regulation California Health and Safety Code (HSC) sections 41 750 through 41755 mandate that the ARB adopt a regulation to establish a uniform s tatewide program for the registration and regulation of portable engines. In developing these regulations, ARB is required to evaluate emissions, identify emission control techn ologies, hold public hearings, establish emission limits and control requirements, and develop a fee schedule to cover the costs to adopt and administer the program, incl uding the cost of district enforcement. HSC section 41752(e) specifies that t he Board may periodically revise and update the registration regulations including, but not limited to, revising and updating a determination of best available control technology for portable engines. As stated earlier, the Board approved the Statewide PE RP Regulation on March 27, 1997, and amended it on December 10, 1998, February 26, 2 006, June 22, 2006, March 22, 2007, and December 11, 2008.

In addition, HSC sections 39600 (General Powers) an d 39601 (Standards, Definitions, Rules, and Measures) confers on ARB the general aut hority and obligation to adopt rules and measures necessary to execute the Board's powers and duties imposed by State law. The California Clean Air Act of 1988 gr anted ARB authority to adopt standards and regulations for off-road vehicles and equipment. (HSC sections 43013(b) and 43018).

Portable Engine ATCM, Off-Road Vehicle Regulation, and On-Road Vehicle Regulation

Several sections of the HSC provide the ARB with au thority to adopt the proposed Portable Engine ATCM. HSC sections 39600 (General Powers) and 39601 (Standards, Definitions, Rules, and Measures) confer to the ARB the general authority and obligation to adopt rules and measures necessary to execute the Board's powers and duties imposed by State law. In addition, HSC sect ions 43013 and 43018(a) provide broad authority to achieve the maximum feasible and cost-effective emission reductions from all mobile source categories, including both o n-road and off-road diesel engines. Regarding in-use motor vehicles, HSC sections 43600 and 43701(b) respectively grant ARB authority to adopt emission standards and emiss ion control equipment requirements.

More specifically, California's Air Toxics Program, established under California law by Assembly Bill (AB) 1807 (Stats. 1983, Ch. 1047), an d set forth in HSC sections 39650 through 39675, mandates the identification and cont rol of air toxics in California. The identification phase of the Air Toxics Program requ ires the ARB, with participation of other state agencies, such as the Office of Environ mental Health Hazard Assessment (OEHHA), to evaluate the health impacts of and expo sure to substances and to identify those substances that pose the greatest health thre at as toxic air contaminants (TACs). The ARB's evaluation is made available to the publi c and is formally reviewed by the Scientific Review Panel (SRP), established under HS C section 39670. Following the ARB's evaluation and the SRP's review, the Board ma y formally identify a TAC at a public hearing. Following the identification of a substance as a TAC, HSC sectionsI-5

39658 and 39665 require the ARB, with the participa tion of the districts, and in consultation with affected sources and interested p arties, to prepare a report on the need and appropriate degree of regulation for that substance (risk management phase).

In August 1998, the Board identified diesel PM as a TAC, and in September 2000, the ARB adopted the Diesel Risk Reduction Plan. The Di esel Risk Reduction Plan was the first formal product of the risk management phase a nd serves as the needs assessment under the AB 1807 process. In the Diesel Risk Redu ction Plan, the ARB identified the available options to reduce diesel PM and the recom mended control measures to achieve reductions, including a measure to reduce d iesel PM from diesel-fueled portable engines.

In 1999, California’s Air Toxics Program was amende d by Senate Bill 25 (Stats. 1999, Ch. 731) to provide additional requirements for fur ther consideration of health impacts to infants and children. As part of these requirement s, OEHHA was to identify up to five TACs as making children especially susceptible to i llness. OEHHA published the

"Prioritization of Toxic Air Contaminants under the Children's Environmental Health Protection Act" in October 2001, identifying diesel PM as one of the five TACs. Additional requirements established by Senate Bill 25 in Health and Safety Code section 39669.5 directs the ARB to adopt control me asures, as appropriate, to protect public health, particularly infants and children, f rom these specially identified TACs.

This Portable Engine ATCM, the Off-Road Vehicle Reg ulation, and the On-Road Vehicle Regulation were established to fulfill the goals of the Diesel Risk Reduction Plan and to comply with the requirements of HSC section 39666 and 39669.5 to prevent an endangerment to public health.

D. PUBLIC PROCESS

ARB staff held public a workshop on November 9, 200 9 in Sacramento to solicit comments from the public on the proposed amendments . The Sacramento workshop was also broadcast on the internet for meeting part icipants that were unable to attend in person. Broadcast viewers were able to submit comm ents and questions by email during the workshop so that staff could address the ir concerns or answer their questions. Staff also used an e-mail list serve to notify interested parties of the workshop and the availability of information to be discussed at the workshop. In addition, a web site was developed where interested parties could download information such as the workshop agenda and staff proposal, as well as providing links to

other-related ARB websites. The website address is located at http://www.arb.ca.gov/portable/portable.htm

.

Staff also participated in individual meetings and conference calls with affected industries to address specific concerns. In additi on, staff worked closely with the

California Air Pollution Control Officers Associati on (CAPCOA) in drafting the proposed amendments. Staff revised the proposed amendments to the Statewide PERP Regulation and Portable Engine ATCM in consideratio n of the comments receivedI-6

during the public process. Staff made every effort to consider all comments and

recommendations received.II-1

II. PORTABLE EQUIPMENT USE AND EXISTING REGULATORY PROGRAMS

This chapter describes the uses of portable equipme nt (engines and equipment units) that are registered in PERP. In addition, this cha pter describes the types of businesses that use portable equipment and the existing regula tory programs that currently impact portable engines used in California.

A. SUMMARY OF PORTABLE EQUIPMENT USE AND ACTIVITIES

Portable equipment is any piston-driven internal co mbustion engine and/or equipment unit that is designed and capable of being carried or moved from one location to another and would remain at a single location for less than 12 consecutive months. Unlike stationary engines or equipment, portable equipment may be moved to several locations throughout the State, where it may operat e for several hours or several months. Portable engines and equipment units regis tered in PERP are used for a variety of applications, such as: water pumps, mil itary tactical support equipment, cranes, oil well drilling, servicing and work-over rigs, power generators, dredging equipment, rock crushing and screening equipment, w elding equipment, wood chippers, and compressors.

Both private businesses and public agencies operate portable equipment in California. Examples of businesses that use portable engines in their activities include motion picture studios; amusement parks; utilities; constr uction services; crushing, screening, and recycling services; industrial cleaning service s; marine construction and dredging services; oil and gas companies; and rental service s. Examples of public agencies that use portable engines include public schools and uni versities, local governments, county landfills, municipal utilities, wastewater treatmen t facilities, military installations, and the California Department of Transportation.

There is significant variation in the size as well as the way that portable engines are used. The size of engines can range from about 50 horsepower to greater than 3,000 horsepower. The average annual operating hou rs for portable diesel-fueled engines is about 450 hours per year. Due to the mo bile nature of portable engines, the emissions typically would not occur in one location , but would be spread out over many locations over the course of a year. In addition, the actual operation of a specific engine can vary significantly from the average. For examp le, engines used only for emergency applications may operate less than 20 hours per yea r. Conversely, some portable activities can operate more than 2,000 hours per ye ar. Finally, the engine’s load varies, depending upon the application. The average load i s typically 50 percent of maximum load. Similar to the variability in the hours of o perations, an engine's load can vary significantly from application to application, from 25 percent to 80 percent of maximum

load.

B. EXISTING REGULATORY PROGRAMS

This section describes the federal preemption that limits the authority of ARB and districts to regulate portable engines. This secti on also describes specific federal, State, and local programs that currently impact por table engines used in California,II-2

including ARB/U.S. EPA emission standards for newly manufactured off-road engines, marine engines, PERP, and the district permitting p rograms. All of these programs play

a role in the efforts of ARB and the districts to a ttain the State and federal ambient air quality standards, particularly the ozone and parti culate matter standards. Consequently, the focus of the programs has been to reduce emissions of NOx and PM,

and to a lesser extent emissions of carbon monoxide (CO) and hydrocarbons (HC).

1. Federal Preemption

The federal Clean Air Act (CAA) Amendments of 1990 authorized U.S. EPA to regulate new nonroad engines. The amendments created a fede ral preemption that prevents states from adopting emission standards or other re quirements for nonroad engines (CAA, section 209(e)). Portable engines are a subs et of off-road engines. However, recognizing the special circumstances confronting C alifornia, Congress provided that the State of California, upon receiving authorizati on from the U.S. EPA, can adopt and enforce standards for most classes and categories o f off-road engines. In California statutes, nonroad engines are referred to as off-ro ad engines; therefore, these engines will be referred to as “off-road” in this report.

The federal preemption prevents all states, includi ng California, from setting standards for regulating new off-road engines less than 175 h p that are used in farm and construction operations. However, states do mainta in the authority to establish in-use restrictions such as limiting the hours of operatio n.

2. State and Federal New Engine Emission Standards

a. Compression-Ignition Engine Standards

Since January 1, 1996, new diesel fueled portable e ngines sold in California have been subject to ARB’s Off-Road Compression Ignition emis sion standards (title 13, California Code of Regulations (CCR), sections 2320 et seq.), which are equivalent to the U.S. EPA emission standards for newly manufactured nonroad (off-road) engines (40 CFR, Part 89). The standards are tiered (i.e. Tier 1, 2, 3, and 4), with each set of standards phased in over several years based on the power rating of the engine and becoming progressively more stringent with each Tie r introduced.

b. Airborne Toxic Control Measure for Diesel-Fueled Portable Engines

The Portable Engine ATCM requires portable diesel-f ueled engines that have been permitted or registered prior to January 1, 2006, t o be retired or replaced with certified engines by January 1, 2010, with certain limited ex ceptions. The Portable Engine ATCM also imposes fleetwide emissions standards for PM10 which get progressively more stringent by 2013, 2017, and 2020.

c. Spark-Ignition Engine Standards

As mentioned above, the CAA Amendments provided for ARB to adopt and enforce its own standards and regulations for off-road engines. Since January 1, 2001, newly-manufactured large (greater than 25 bhp) spar k-ignition (LSI) engines sold in California have been subject to ARB’s off-road LSI engine standards (Title 13, CCR sections 2410 et seq.). The standards are also tie red. The U.S. EPA also adoptedII-3

federal standards (found in 40 CFR Part 1048 (Contr ol of Emissions from New, Large Nonroad Spark-ignition Engines)) that were equivale nt to ARB standards, but also included a more stringent standard. Beginning in 2 007, new LSI standards must meet a combined standard for NOx and HC of 2.0 grams per b rake horsepower-hour (g/bhp-hr).

d. Marine Engine Standards

The U.S. EPA finalized Tier 1 and Tier 2 engine sta ndards for marine compression ignition engines with less than 30 liters per cylin der (40 CFR Part 94) in December 1999. Tier 3 and Tier 4 standards (40 CFR Part 1042) for these engines were finalized in May 2008. These standards apply to engines typically used in commercial harbor craft including dredges.

3. Statewide Portable Equipment Registration Progra m

In lieu of obtaining multiple permits from individu al districts, a portable engine owner can register the engine in PERP. As of October 26, 200 9, portable engine and equipment unit owners have registered an estimated 38,000 tot al engines, equipment units, and military TSE in PERP. Of this amount, there are ov er 29,000 engines registered which represent nearly half of the estimated statewide in ventory of portable engines. Of the 29,000 engines, approximately 97 percent are diesel -fueled engines while the additional engines are gasoline, natural gas, kerosene, methan ol, or liquid petroleum gas-fueled engines.

There are also approximately 3,700 equipment units registered in PERP. Of these equipment units, approximately 40 percent are used in rock crushing and screening units, 23 percent media blasting units, 14 percent wood chippers. The remaining units include tub grinders, rock drills, conveyors, and o ther miscellaneous units. In addition, there are over 5,000 military TSE registered in the program. Approximately 90 percent of military TSE utilize diesel or JP-8 fueled engin es.

4. District Permit Programs

Portable engines not registered in PERP may be subj ect to district permitting requirements. District permit requirements will va ry, depending on the attainment status in the district. Some districts have implemented r egistration programs specifically for portable engines and equipment units. Owners of po rtable engines in these districts can register engines with the district by demonstra ting the engines meet specific

emission rates. Some districts specifically exempt portable engines from permit requirements or have specific requirements for indi vidual types of portable engines and/or equipment.

5. Portable engines on cranes and street sweepers

In December of 2008, the Board approved amendments that made the portable engine used on a two-engine crane subject to the Off-Road Vehicle Regulation and the portable engine used on a two-engine street sweeper subject to the On-Road Vehicle Regulation. These engines, which continue to meet the definition of portable, may still be subject to district permitting requirements and therefore have the option to register inII-4

PERP. If registered in PERP, the engines are then subject only to the inspection requirements and fees as prescribed by the PERP Reg ulation.III-1

III. SUMMARY OF THE PROPOSED AMENDMENTS

This Chapter is intended to meet the requirements o f Government Code section 11343.2 by providing to the public a "plain English" discus sion of the proposed amendments to the Statewide PERP Regulation, Portable Engine ATCM , Off-Road Vehicle Regulation, and On-Road Vehicle Regulation.

A. MODIFICATIONS TO THE STATEWIDE PERP REGULATION

The proposed amendments will provide a one year ext ension of the deadline for certain uncertified engines, provide for the eligibility of certain types of engines, specify that any water well deck engines registered in PERP are subj ect to the Off-Road Vehicle Regulation, and modify the PERP recordkeeping and r eporting requirements. In addition, the proposed amendments will provide addi tional clarity and enforceability to the Statewide PERP Regulation, and ensure consisten cy between regulatory requirements and registration processing practices.

1. Non-Certified Engine Extension

ARB staff proposes to allow owners of small fleets to choose a limited number of registered spark-ignition engines to operate for on e additional year beyond the current cessation of operation date of January 1, 2010. Th is extension for spark-ignition engines will be in conjunction with the extension offered t o compression-ignition engines in the Portable Engine ATCM. Under this proposal, owners of 25 or fewer total portable engines would be able to choose either one register ed spark-ignition engine of any size or up to five engines that collectively do not exce ed 500 bhp to operate until December 31, 2010. These organizations will have t o submit a written request to specifically select which registered engines they w ant to receive the extension. If a company or agency uses the one year extension for a single large spark-ignition engine or up to five registered spark-ignition engines, th ey will not also get an additional extension for compression-ignition engines that the y may own. However, the five engines receiving the registration extension can be a mix of spark-ignition and compression-ignition.

2. Water Well Drilling Rigs

ARB staff proposes to add a definition for two-engi ne water well drilling rigs as being those only owned by companies with a current, valid C-57 water well drilling contractor’s license issued by the Contractors State License Boa rd of California. The auxiliary deck engine would still meet the definition of portable; therefore, it may still be subject to district permitting requirements and has the option to register in PERP. The owners of the drilling rigs would have to submit a copy of th e C-57 license with the PERP application. The staff is proposing to amend the r egulation to specify that registered engines on water well drilling rigs would be subjec t to the requirements of the Off-Road Vehicle Regulation. If registered in PERP, the eng ines would then be subject only to the inspection requirements and fees as prescribed by t he PERP Regulation. This proposal is the identical approach taken in previous amendme nts for two-engine cranes which

have similar issues.III-2

3. Recordkeeping and Reporting

ARB staff proposes to reduce the amount of recordke eping for certified engines registered in PERP which are not subject to any emi ssion limitations. Staff also proposes to remove the annual reporting requirement for these certified engines. Engines and equipment units with emission limitatio ns will continue to have daily recordkeeping and annual reporting requirements of the applicable operational data.

ARB staff also proposes to require that the owners or operators of all registered engines and equipment units record specific location and da tes of movement for each unit. The current PERP regulation does not require the tracki ng of specific locations. Locations will be tracked by street address and city, or by c ounty and parcel number, or other specific location indicator. Staff proposes to req uire that the specific location and date is recorded on a monthly basis for certified engines a nd each time it is moved for noncertified engines and equipment units. This amendm ent will provide for better enforcement of the requirement that a registered en gine or equipment unit may not reside at a location for longer than 12 months.

4. On-Highway and Marine Engines

ARB staff proposes to allow engines certified to on -highway emission standards in 40 CFR Part 86 and engines certified to marine emissio n standards in 40 CFR Part 94 or 40 CFR Part 1042 to be eligible for PERP. This ame ndment will restore the eligibility that these engines previously enjoyed, which was re moved with the amendments of June 22, 2006. ARB staff will also clarify that au xiliary marine engines located on vessels will be subject to the Commercial Harbor Cr aft ATCM instead of the Portable Engine ATCM.

5. Vendor Sales Report

ARB staff proposes to remove the vendor sales repor t from the Statewide PERP Regulation. The PERP regulation is intended to onl y contain requirements for portable equipment registered in the program. It is not int ended to regulate the sales of new equipment. Because PERP is a voluntary program, it is not appropriate to have a mandatory notification requirement about a program that is not required. If a mechanism is desired to track the sales of equipment for whic h a permit may potentially be required,

then this should be established in the rules and re gulations that establish those mandatory permits.

6. Miscellaneous

ARB staff is proposing minor revisions which are di scussed below.

• Clarify that a change in home district designation shall be based on the most recent annual report prior to the year the arranged inspec tion is due, instead of an average of all three annual reports since the last inspecti on. The most recent annual report will provide a better indication of where the regis tered engine or equipment unit hasIII-3

been operating most of the time prior to the inspec tion. This will allow for a more accurate designation of the home district which is meant to perform the arranged inspection.

• Modify the definition of “Resident Engine” to remo ve the older engines that were operated in California between March 1 2004 and Oct ober 1, 2006. These engines were only intended to be eligible for PERP until th e end of 2009, so this modification serves to remove obsolete language. The definition will also be modified to clarify that only certified engines that have a current dis trict permit or lost their permit exemption due to a change in district rules will be considered resident, and therefore eligible for PERP. ARB does not want to allow any additional uncertified engines into PERP, and this modification will prevent any from r egistering.

• Modify the definition of “Providers of Essential P ublic Service (PEPS)” to clarify that the final determination whether a company or govern ment agency is a PEPS provider shall be made by the Executive Officer. During the course of the implementation of the PERP Regulation, there has been some confusion on the part of registrants over whether their company qualifies as a PEPS. The def inition currently lists several examples of possible PEPS activities. It would be impossible to make a complete list of every organization type that does or does not me et the definition of PEPS. Therefore, this modification will allow the Executi ve Officer to make a final

determination in cases where there is some doubt.

• Modify, add, and delete terms in the definitions s ection, delete outdated provisions,

and make minor clarifications where needed. These changes are considered to be non-substantive and are intended to provide additio nal clarity and expediency to the Statewide PERP Regulation, and ensure consistency b etween regulatory requirements and registration practices.

B. MODIFICATIONS TO THE PORTABLE ENGINE ATCM

The Portable Engine ATCM was designed to promote th e use of clean portable engines in California. By January 1, 2010, only diesel eng ines certified to ARB/U.S. EPA nonroad engine emission standards (Tier 1, 2, or 3) can continue to operate in California, unless they have been designated as emergency use o r low use. This means that most diesel engines that do not meet at least Tier 1 sta ndards must be replaced with certified engines by that date.

The proposed amendments include recommendations to allow certain non-certified engines to operate for one year beyond the current deadline of January 1, 2010, allow all on-highway engines to operate beyond January 1, 201 0, exempt auxiliary deck engines used on two-engine water well drilling rigs, and al low certain types of engines to obtain district permits or register in PERP that would not otherwise qualify.III-4

1. Non-certified Engine Extension

ARB staff proposes to allow owners of small fleets to choose a limited number of registered diesel engines for continued operation f or one year beyond the current cessation of operation date. Under this proposal, owners of 25 or fewer total portable engines would be able to choose either one diesel e ngine of any size or up to five diesel engines that collectively do not exceed 500 bhp to operate until December 31, 2010. The engines selected for the extension would have t o be previously registered in PERP or permitted by a district. These fleet owners wil l have to submit a written request to specifically select which engines they want to rece ive the extension. Although there is no proposed definition of “company”, it is expected that for implementation purposes, any organization with a unique name and mailing address will qualify for this provision. As

discussed in the section on modifications to the St atewide PERP Regulation, sparkignited engines may be substituted for diesel engin es, but in no case can the number of total engines exceed the allowable limits.

An analysis of the companies participating in PERP showed that for companies with more than 25 total engines registered, about 25 per cent of the engines are uncertified. Looking at smaller companies that owned between six and 25 engines, 45 percent of these engines are uncertified. Companies with five or fewer engines registered had 65 percent uncertified engines.

In addition, most larger companies that own more th an 25 engines have been registered in PERP since it started in 1997. Therefore, these companies had sufficient time to plan for the replacement of their Tier 0 engines by the January 1, 2010 deadline. In addition, these larger companies would not suffer the same le vel of financial burden from replacing these older engines as would smaller comp anies that have fewer resources.

2. On-Highway Engines

ARB staff proposes to allow engines used in portabl e applications that are certified to the on-highway emission standards contained in 40 CFR P art 86 engines to operate beyond January 1, 2010. These certified on-highway engine s will become part of the portable fleet, and will be subject to the fleet emission st andards contained in the Portable Engine

ATCM.

Staff also proposes to allow on-highway certified e ngines that are used in portable applications to be eligible for district permit or registration in PERP. On-highway engines were previously eligible for registration in PERP, but that eligibility was removed with the June 22, 2006 amendments. This modification will r estore the eligibility that these engines previously enjoyed.

3. Water Well Drilling Rigs

ARB staff proposes to specify that the auxiliary de ck engine is subject to the Off-Road Vehicle Regulation, effectively exempting it from t he Portable Engine ATCM.III-5

4. Miscellaneous

ARB staff is proposing minor revisions which are di scussed below.

• Modify the brake horsepower (bhp) range for the ap plicable fleet standards in the table in section 93116.3.1 to correctly match the c ertification categories for certified off-road engines. The fleet standard categories sh ould be as follows: less than 175 bhp, 175 to 750 bhp, and greater than 750 bhp. This error was an oversight from the original adoption and subsequent amendments and this modification will correct

that earlier error.

• Add an emission factor for Tier 1 engines less 175 bhp to be used to calculate compliance with the fleet emission standard. The c urrent version states that an

emission factor must be taken from the certificatio n Executive Order. Because Tier 1 engines less than 175 bhp do not have a PM emission standard, there is no emission

factor on the Executive Orders. This error was an oversight from the original adoption and subsequent amendments and this modific ation will correct that earlier error. ARB staff proposes to use the same emission factor that is used for Tier 1 engines in the In-Use Off-Road Vehicle Regulation, but without the deterioration factors. For full analysis of the emission factor used for Tier 1 engines less than 175 bhp, see Appendix E.

• Modify the definition of “in-use” from January 1, 2006 to January 1, 2010. This definition should have been changed with the March 22, 2007 amendments since new permit eligibility requirements for uncertified engines until January 1, 2010 were added at that time. This was an oversight from the March 22, 2007 amendments and

this modification will correct that earlier error.

• Specify the emission factor to be used for certifi ed engines that do not have a family name indicated on the engine label. These engines are those built to flexibility provisions for equipment and vehicle manufacturers and post-manufacture marinizers pursuant to 40 CFR Part 89 or Title 13 of the Calif ornia Code of Regulations. In such cases, the PM emission standard for the tier level to which the engine was built shall

be used.

• Specify that if the engines will be unable to cont inue operation until Tier 4 standards

become effective due to mechanical breakdown or the function that the engine powers will be discontinued, then the owner shall n otify the regulatory agency. These engines will either have to be retired without repl acement, or replaced with an engine that meets the most stringent standard at that time

.

• Allow for the eligibility of certified engines tha t lost their permit exemption due a change in district rules. It has been ARB policy t o allow these engines to register in PERP, and the eligibility was added to the PERP Reg ulation in previous amendments, although it was never addressed in the Portable Engine ATCM. This modification will consistently establish ARB policy in both the PERP Regulation and the Portable Engine ATCM.III-6

• Remove the eligibility of non-certified engines fo r initial permits or registration by a district. When this provision was added in previou s amendments, it was intended for this eligibility to only last until December 31, 20 09. The omission of the expiration date was an oversight from the previous amendments and this modification will correct that earlier error. The section allowing t he permitting or registration of Tier 1 or Tier 2 engines had an expiration date of Decembe r 31, 2009, and will be removed

since it will be obsolete when these amendments are adopted.

• Modify, add, and delete terms in the definitions s ection, delete outdated provisions,

and make minor clarifications where needed. These changes are considered to be non-substantive and are intended to provide additio nal clarity and expediency to the Portable Engine ATCM, and ensure consistency betwee n regulatory requirements and permit and/or registration practices.

C. MODIFICATIONS TO THE OFF-ROAD AND ON-ROAD VEHICL E REGULATIONS

As discussed previously, staff is proposing to amen d the regulations to change the way existing two-engine water well drilling rigs are ad dressed. The proposed amendments include recommendations to exempt the drive engine used on two-engine water well drilling rigs from the On-Road Vehicle Regulation, and to require both engines on two-engine water well drilling rigs to be subject t o the Off-Road Vehicle Regulation.

1. Off-Road Vehicle Regulation

ARB staff proposes to add a definition of two-engin e water well drilling rigs as being those only owned by companies with a current, valid C-57 water well drilling contractors license issued by the Contractors State License Boa rd of California. ARB staff will also specify that both engines on a two-engine water wel l drilling rig are subject to the requirements of the Off-Road Vehicle Regulation. T his proposal is the identical approach taken in previous amendments for two-engin e cranes. The reporting date for water well drilling rigs will also be extended to A ugust 1, 2010 to allow time for the owners of drilling rigs that were previously not su bject to this regulation to enter their rigs into ARB’s reporting system.

2. On-Road Vehicle Regulation

ARB staff proposes to specify that two-engine water well drilling rigs are exempt from the On-Road Vehicle Regulation. This proposal is the i dentical approach taken in previous amendments for two-engine cranes.IV-1

IV. ENVIRONMENTAL IMPACTS

This Chapter describes the potential environmental impacts of the proposed amendments to the Statewide PERP Regulation, the Po rtable Engine ATCM, the OffRoad Vehicle Regulation, and the On-Road Vehicle Re gulation. Based on staff’s analysis, the proposed amendments would not result in any adverse impacts.

A. LEGAL REQUIREMENTS APPLICABLE TO THE ENVIRONMENT AL IMPACT

ANALYSIS

The California Environmental Quality Act (CEQA) and ARB policy require an analysis to determine the potential environmental impacts of pr oposed regulations. The Secretary of Resources, pursuant to Public Resources Code sec tion 21080.5, has certified the ARB regulatory program. Consequently, the CEQA ana lysis requirements may be included in the Initial Statement of Reasons (ISOR) for this rulemaking. The ISOR serves as a functionally equivalent environmental a nalysis. In addition, staff will respond, in the Final Statement of Reasons, to all significant environmental issues raised by the public during the public review perio d or at the Board public hearing.

Public Resources Code section 21159 requires that t he environmental impact analysis conducted by ARB include the following:

• An analysis of reasonably foreseeable environmenta l impacts of the methods of compliance;

• An analysis of reasonably foreseeable feasible mit igation measures; and

• An analysis of reasonably foreseeable alternative means of compliance with the amended Statewide PERP Regulation and Portable Engi ne ATCM.

Regarding mitigation measures, CEQA requires an age ncy to identify and adopt feasible mitigation measures that would minimize an y significant adverse environmental impacts described in the environmental analysis.

B. AIR QUALITY IMPACTS OF THE PROPOSED AMENDMENTS

1. Non-Certified Engines

The proposed amendments to the Statewide PERP Regul ation and Portable Engine ATCM would not result in a change to the existing p hysical environment, but would result in a delay in obtaining reductions in NOx an d diesel PM emissions for one year. The 2009 emission levels from all portable engines are about 42,000 tons per year (tpy) for NOx and 3,000 tpy of PM. These emission levels were calculated using data gathered from the districts and the engines registe red in PERP. Based on these data, there was a total of about 6,500,000 bhp for portab le certified engines under district permit or PERP registration in 2009. Emission fact ors of 5.4 g/bhp-hr for NOx and 0.39 g/bhp-hr for PM were used for these certified engines. The engine population was determined to be 50 percent Tier 1 engines, 25 perc ent Tier 2 engines, and 25 percent Tier 3 engines. A load factor of 0.75 and operatio n of 1,000 hours/year were also used

in the calculations. This results in 2009 certifie d engine emission levels of 29,100 tpy of NOx and 2,100 tpy of PM.IV-2

There was a total of 1,300,000 bhp of uncertified d iesel engines under district permit or registered in PERP for 2009, representing approxima tely 5,500 uncertified engines. About 4,300 of these are registered in PERP, with a pproximately 1,200 permitted or registered by the districts. Assuming about 20 per cent of these engines would be designated as emergency use or low use, approximate ly 4,400 uncertified engines with a total bhp of 1,050,000 will be affected by the Ja nuary 1, 2010 deadline. The emissions from the emergency use and low use engine s are insignificant and not

included in these emission estimates. The emission factors used for the emission calculation for the uncertified engines were 12 g/b hp-hr for NOx and 0.85 for PM. This results in a 2009 uncertified emission level of 13, 000 tpy of NOx and 920 tpy of PM.

To estimate the expected reductions from the Januar y 1, 2010 requirement, we assumed that the uncertified engine bhp would be re placed with certified engines as follows: 25 percent Tier 1, 25 percent Tier 2, and 50 percent Tier 3. This results in an average emission factor of 4.43 g/bhp-hr for NOx an d 0.24 g/bhp-hr for PM for the remaining engines not receiving relief.

In developing the current proposal to extend the de adline for uncertified engines, ARB staff evaluated several options. The total emissio ns for each option were determined by adding the emissions from existing certified engine s, uncertified engines receiving relief, and certified engine replacements. The expected mi nimum emission reductions for each option are determined by subtracting that amou nt from the 2009 levels. The emission reductions could be larger if full utiliza tion of the relief offered does not occur. The owners of portable engines would have to submit written requests to either the district or the ARB to select specific engines to r eceive the relief, and potentially not every owner of portable engines will choose to do s o. The options are discussed below and the resulting emissions reductions from each ar e summarized in the table.

Option 1 – No change The requirement to have all engines be certified as of January 1, 2010 was first established in 1997 as part of PERP, giving busines ses up to 13 years to plan for the replacement or retirement of the older engines. In 2004, this requirement was moved from the PERP regulation to the Portable Engine ATC M so that it would apply to all diesel engines statewide, not just those registered in PERP. The emission reductions expected from replacing 1,050,000 bhp of uncertifie d engines with certified engines are 3,800 tpy of NOx and 220 tpy of PM. Combined with the existing certified emission levels, this results in an overall reduction of 9,2 00 tpy for NOx and 700 tpy for PM.

Option 2 – Allow all companies 500 bhp of Tier 0 en gines If we allow all organizations to operate 500 bhp of uncertified engines, this will result in a potential total of 323,600 bhp to operate. The emi ssions expected from these uncertified engines are 3,200 tpy of NOx and 230 tpy of PM. Th e emissions from the replacement of the remaining engines with certified engines (72 6,400 bhp) are 2,700 tpy of NOx and 140 tpy of PM. Combined with the existing certifie d emission levels, the total overall emissions from this option are 35,000 tpy of NOx an d 2,470 tpy of PM. This will result in emission reductions of 7,100 tpy of NOx and 520 tpy of PM from 2009 levels, resulting in a loss of 2,100 tpy for NOx and 180 tpy for PM comp ared to no change. Under thisIV-3

option, small fleet owners that only have engines r ated over 500 bhp would not receive any benefit. This option retains about 80 percent of the original emission reductions.

Option 3 – Allow companies with small fleets to ope rate all Tier 0 engines This option would apply only to small fleet owners that own a total of 25 portable engines, including uncertified engines. In this op tion, the small fleet owners would be allowed to operate all of their uncertified engines for one year. This option would allow a total of 690,000 bhp of uncertified engines to op erate. The emissions expected from these uncertified engines are 6,900 tpy of NOx and 480 tpy of PM. The emissions from the replacement of the remaining engines with certi fied engines (360,000 bhp) are 1,300 tpy of NOx and 70 tpy of PM. Combined with t he existing certified emission levels, the total emissions from this option are 37 ,300 tpy of NOx and 2,650 tpy of PM. This will result in emission reductions of 4,800 tp y of NOx and 370 tpy of PM from 2009 levels, resulting in a loss of 4,400 tpy for NOx an d 330 tpy for PM compared to no change. This option provided the most extensive re lief, but also resulted in the greatest loss of emission reductions. This option only retai ns about 50 percent of the original

emission reductions.

Current Proposal Under the current proposal, owners with no more tha n 25 engines total will be able to choose either one uncertified engine of any size, o r up to five uncertified engines that collectively do not exceed 500 bhp. This proposal is a hybrid of other options. It gives relief to the small fleet owners by allowing them t o operate up to 500 bhp as in option 2, as well as owners with a single large engine as in option 3. Under this proposal, there would be a maximum of about 390,000 bhp eligible fo r relief, with the remaining 660,000 bhp being replaced with certified engines. The expected emission reductions in 2010 with this proposal would be 6,700 tons for NOx and 500 tons for PM. This proposal retains over 70 percent of the original em ission reductions.

Comparison Chart Option 1 (no change) Option 2

(500 bhp cap) Option 3

(small fleets) Current

proposal

NOx reductions 9,200 7,100 4,800 6,700

PM reductions 700 520 370 500

Allowed uncertified bhp in 2010 0 323,600 690,000 390,000

Note: all emissions are listed in tons per year.

2. Water Well Drilling Rigs

The emission impacts from the amendments to water w ell drilling rigs come largely from moving the auxiliary deck engines from the Portable Engine ATCM and into the Off-Road Vehicle Regulation. With the proposed ame ndments, these engines would not have to be replaced or retrofitted until 2013 o r 2015 depending on the overall fleet size of each company. It is expected that the majo rity of water well drilling companies will fall into the small fleet category with some f alling into the medium fleet size

category.IV-4

Currently, there are 80 uncertified engines on wate r well drilling rigs registered in PERP that are subject to the Portable Engine ATCM. Thes e engines have a total cumulative size of 15,100 horsepower. Subjecting these engine s to the Off-Road Vehicle Regulation rather than the Portable Engine ATCM and using the same assumptions as identified above, would result in emissions of 150 tons per year for NOx and 10 tons per year for PM. 3

C. IMPACTS OF THE PROPOSED AMENDMENTS ON MEETING AM BIENT AIR

QUALITY STANDARDS

HSC section 41754 requires that emissions from engi nes and equipment units registered in PERP shall not, in aggregate, interfe re with the attainment or maintenance of the State and federal ambient air quality standa rds. PERP requires that engines meet an offroad emission standard and requires that any existing engine registered after 2010 must be certified. In addition, after 2 010, engines seeking initial permitting or registration must meet the most stringent emission standard in effect at the time of application, except those on cranes, street sweeper s, and water well drilling rigs. The engines on these machines will have to meet the req uirements of either the Off-Road Vehicle Regulation or On-Road Vehicle Regulation. The Portable Engine ATCM has PM emission standards that will affect all register ed or permitted engines in 2013, 2017 and 2020. The implementation of the Statewide PERP Regulation, Portable Engine ATCM, Off-Road Vehicle Regulation, and On-Road Veh icle Regulation therefore will result in greater reductions of NOx, HC, and diesel PM emissions from diesel engines now and in future years.

D. ANALYSIS OF REASONABLY FORESEEABLE ENVIRONMENTAL IMPACTS

OF THE METHODS OF COMPLIANCE

As specified in HSC section 41755, the districts ha ve an important role in enforcing the requirements of the Statewide PERP Regulation. The districts will continue to implement the Portable Engine ATCM in their local p ermitting and compliance programs. The ARB staff will enforce the requireme nts of the Off-Road Vehicle Regulation and On-Road Vehicle Regulation.

E. REASONABLY FORESEEABLE MITIGATION MEASURES

CEQA requires an agency to identify and adopt feasi ble mitigation measures that would minimize any significant adverse environmental impa cts described in the environmental analysis other than the slight delay in emissions r eductions. Neither ARB staff’s own investigation nor comments from the affected regula tory community has identified any additional adverse impacts; therefore, ARB staff ha s concluded that no significant

3 Other estimates from the California Groundwater As sociation place the number of uncertified deck engines on two-engine water drilling rigs to be nea r 420, but these estimates are not verified and are not used for any analysis. Furthermore, these estimate d 420 engines on these rigs are neither permitted n or registered. Some of the drilling rigs operate in l ocal air districts where permits are not required. Using this estimate of 420 engines, the estimated cumulat ive size of these engines would be 79,200 bhp. Usi ng the same assumptions, the estimated emissions from these engines would be 800 tons per year for NOx and 60 tons per year for PM..IV-5

adverse environmental impact would occur from adopt ion of, and compliance with, the proposed amendments to the Statewide PERP Regulatio n, Portable Engine ATCM, Off-Road Vehicle Regulation, and On-Road Vehicle Re gulation. Therefore, no mitigation measures would be necessary.

F. REASONABLY FORESEEABLE ALTERNATIVE MEANS OF COMP LIANCE

WITH THE PROPOSED AMENDMENTS

ARB, in consultation with CAPCOA and a number of af fected industries, developed proposed amendments to the Statewide PERP Regulatio n, Portable Engine ATCM, Off-Road Vehicle Regulation, and On-Road Vehicle Re gulation. ARB staff has concluded that the proposed amendments provide the most effective and least burdensome approach to ensuring air quality continu es to be protected, that ARB and the districts can continue to implement these regul ations effectively.

G. ENVIRONMENTAL JUSTICE

ARB is committed to evaluating community impacts of proposed regulations including environmental justice concerns. Because some commu nities experience higher exposure to air pollutants, it is a priority of ARB to ensure that full protection is afforded to all Californians. The proposed amendments to th e Statewide PERP Regulation, Portable Engine ATCM, Off-Road Vehicle Regulation, and On-Road Vehicle Regulation are not expected to result in significant negative impacts in any community. The proposed amendments to these four regulations would not result in an increase of

emissions of NOx and diesel PM from current levels

.IV-6V-1

V. ECONOMIC IMPACTS

This Chapter discusses legal requirements that must be satisfied in analyzing the economic impacts of the proposed amendments to the Statewide PERP Regulation, Portable Engine ATCM, Off-Road Vehicle Regulation, and On-Road Vehicle Regulation, and the methodology used to estimate cost impacts, and presents estimates of the economic impacts for the proposed amendments.

A. SUMMARY OF THE ECONOMIC IMPACTS

Staff has not identified any adverse economic impac ts as a result of this proposal. Staff estimates the impact of the proposed amendments on affected businesses and governmental agencies would be a temporary cost sav ings of approximately $79 million. The total economic impact is attributable to allowi ng additional time to replace a subset of uncertified engines under this proposal.

Approximately 4,400 older engines with a total of 1 ,050,000 horsepower are subject to the current requirement to be replaced by January 1 , 2010. When you remove the 80 engines on two-engine water well drilling rigs, the revised total is about 4,300 engines with a total of 1,035,000 horsepower. The cost to replace these engines with new units would be about $180 million. With t he current proposal, approximately 2,000 engines owned by about 1,130 companies and pu blic agencies with a combined horsepower of approximately 375,000 could be operat ed for an additional year before replacement or retirement. The cost to replace the se engines would be approximately $66 million, therefore resulting in a savings for s mall business and public agencies of that amount for one year. The true cost savings wi ll be less, however, because it is not expected that all the eligible engines will utilize the extension in this proposal.

Staff is not proposing any fee for selection of eng ines registered in PERP to receive the extension; therefore, there is no economic impact f rom the selection process for engines registered in PERP. The districts may or m ay not choose a fee to process the extension request for permitted engines, but an ana lysis of the economic impact is impossible due to the lack of information regarding any fees the districts may charge. Due to the effort required to assess and collect a fee, it is expected that most districts will charge either no fee or a very nominal simple fee for the one time transaction.

The cost to replace an auxiliary deck engine on a t wo-engine water well drilling rig ranges from $30,000 to $300,000 based on data gathe red by contacting drilling rig manufacturers and dealers. Based on this survey da ta, the average cost to replace a deck engine on a water well drilling rig is $165,00 0. There are currently only 80 of these engines registered in PERP owned by 25 companies. The estimated cost to replace these engines as required by the Portable Engine AT CM would be about $13 million. 4

4 Other estimates from the California Groundwater As sociation place the number of uncertified deck engines on two-engine water drilling rigs to be nea r 420 but these estimates are not verified and are not used for any official analysis. The cost to replac e these estimated 420 engines would be $69 million. By moving these deck engines into the Off-Road Vehicle Regulation, the cost of replacing or retrofitting the engines is delayed by either 3 or 5 years depending on the overall fleet size of each company.V-2

B. LEGAL REQUIREMENTS

Section 11346.3 of the Government Code requires Sta te agencies to assess the potential for adverse economic impacts on Californi a business enterprises and individuals when proposing to adopt or amend any ad ministrative regulation. The assessment shall include a consideration of the imp act of the proposed regulation on California jobs, business expansion, elimination or creation, and the ability of California business to compete with businesses in other states

.

Also, State agencies are required to estimate the c ost or savings to any state or local agency and school district in accordance with instr uctions adopted by the Department of Finance. The estimate shall include any non-discre tionary cost or savings to local agencies and the cost or savings in federal funding to the State.

Finally, HSC section 57005 requires ARB to perform an economic impact analysis of submitted alternatives to a proposed regulation bef ore adopting any major regulation. A major regulation is defined as a regulation that wi ll have a potential cost to California business enterprises in an amount exceeding ten mil lion dollars in any single year.

Because the estimated cost of the amendments does n ot exceed ten million dollars in a single year, the proposed amendments do not constit ute a major regulation.

C. METHODOLOGY FOR ESTIMATING COSTS

This section provides the general methodology and a ssumptions used to estimate the

costs associated with the amendments to the Statewi de PERP Regulation. ARB staff

describes the method used to estimate the number an d types of engines that may be

able to utilize to the extended deadline. The basi c methodology is also used to analyze the costs to private companies and governmental age ncies.

1. Analysis of the PERP Database and District Permi tting Programs

ARB staff conducted an analysis of the PERP databas e that existed on October 26, 2009 in order to evaluate the cost impa cts from the proposed amendments to the Statewide PERP Regulation for federal, state , local agencies and small businesses. Based on the analysis, staff determine d that there are over 4,000 organizations with about 29,000 engines regis tered in PERP. In addition, there are about 1,600 engines permitted by the districts. Of these, about 1,130 total organizations with about 2,000 uncertified engines will potentially receive relief under these amendments. Of these organizations, staff es timates there are:

• 3 state agencies with about 5 engines consisting o f 1,300 horsepower,;

• 210 local agencies with about 230 engines consisti ng of 58,600 horsepower;

• 9 federal agencies with about 15 engines consistin g of 2,900 horsepower; and

• 910 private businesses with 1,700 engines consisti ng of 312,700 horsepower.

Military TSE is not affected by these proposed amen dments and therefore was not included in this fiscal impact analysis.V-3

ARB staff used these totals to determine the cost o f the proposed amendments to the various organizations. Using an average cost of $1 75 per horsepower, the staff estimated that approximately $66 million in replace ment costs will be delayed by one year due to the amendments to the Statewide PERP Re gulation and Portable Engine

ATCM.

ARB staff used the totals in the existing PERP data base of engines on water well drilling rigs. Using an average replacement cost of $165,00 0 per engine, It is estimated that approximately $13 million in replacement costs will be delayed by either three or five years due to these amendments affecting water well drilling rigs.

2. Initial and Recurring Costs

The cost evaluation considers both initial costs an d ongoing annual costs. Initial costs

were calculated for the estimated number of uncerti fied engines that would potentially receive relief under the proposed amendments. Ther e are no ongoing annual costs from the proposed amendments to the Statewide PERP Regulation, Portable Engine ATCM, Off-Road Vehicle Regulation, or On-Road Vehicle Reg ulation

.

D. BUSINESSES AFFECTED

Any business that owns or operates portable interna l combustion engines and/or equipment units currently registered in PERP is aff ected by the proposed amendments.

The affected businesses fall into different industr y classifications. A list of the industries that may be impacted is provided in Table V-1.V-4 Table V-1

I ndustries Affected by Statewide Registration Progra m and Portable Engine ATCM

SIC Code Industry 1311 Crude petroleum and n atural gas 1321 Natural gas liquids 1381 Drilling oil and gas wells 1382 Oil and gas explorati on services 1389 Oil and gas field ser vices, not elsewhere classified 1521 Single-family housing construction

1522 Residential construct ion, not elsewhere classified 1531 Operative builders 1541 Industrial buildings and warehouses

1542 Nonresidential constr uction, not elsewhere classified 1611 Highway and street co nstruction 1622 Bridge, tunnel, and e levated highway 1623 Water, sewer, and uti lity lines 1629 Heavy construction, n ot elsewhere classified 1711 Plumbing, heating, ai r-conditioning

1771 Concrete work 1781 Water well drilling

1791 Structural steel erec tion

1794 Excavation work 1795 Wrecking and demoliti on work 4925 Gas production and/or distribution 4941 Water supply 4952 Sewerage systems 4953 Refuse systems 4959 Sanitary services, no t elsewhere classified

4961 Steam and air-conditi oning supply 4971 Irrigation systems 7349 Building maintenance services, not elsewhere classified 7353 Heavy construction en gines and equipment units rental 7359 Equipment rental and leasing, not elsewhere classified 7519 Utility trailer renta l 7812 Motion picture and vi deo production

7819 Services allied to mo tion pictures 7996 Amusement parks 9711 National security

E. COST ESTIMATES

The proposed amendments to the Statewide PERP Regul ation, Portable Engine ATCM, Off-Road Vehicle Regulation, and On-Road Vehicle Re gulation will not result in a cost increase to the regulated community. They will ser ve to delay replacement cost for certain engines with a maximum cost delay of $79 mi llion for one year. The actual cost savings may be less if full utilization of the reli ef offered does not occur.V-5

F. POTENTIAL IMPACTS ON EMPLOYMENT

The proposed amendments are not expected to cause a noticeable change in California employment because most businesses will find that t he requirements will not require significant additional staffing.

G. POTENTIAL IMPACTS ON BUSINESS CREATION, ELIMINAT ION, OR

EXPANSION

The proposed amendments results in a cost savings f or certain businesses. Therefore, the proposed amendments are likely to have no adver se impacts on business creation, elimination, or expansion.

H. POTENTIAL IMPACTS ON SMALL BUSINESSES

The total potential economic impact to small busine ss is a cost savings of approximately $55 million dollars for one year. The cost savings are due the proposed delay of uncertified engine replacement until December 31, 2 010. Although it is difficult to quantify, it is expected that any company that owns no more than 25 portable engines falls into the category of a small business.

I. POTENTIAL IMPACTS ON PUBLIC AGENCIES

The total potential economic impact to state agenci es is a cost savings of approximately $11 million for one year. The cost savings are due the proposed delay of uncertified engine replacement until December 31, 2010.

### Appendix A



## Proposed Regulation Order

Amendments to the Statewide Portable Equipment Registration Program Regulation

California Air Resources Board Title 17, California Code of Regulations

Article 5 and sections 2450, 2451, 2452, 2453, 2454 , 2455, 2456, 2457, 2458, 2459, 2460, 2461, 2462, 2463, 2464, and 2465 of Title 13, California Code of Regulations

(Note: Proposed amendments to the regulation are i dentified below. Underline is used to indicate the proposed additions. Strike out is used to indicate proposed deletions from the regulation text.)A-1 

### PROPOSED REGULATION ORDER

Amend sections 2451, 2452, 2453, 2456, 2458, 2460, 2461, and 2462 title 13, California Code of Regulations. Sections 2450, 245 1, 2454, 2455, 2457, 2459, 2463, 2464, and 2465 are not being amended but are included for clarity.

Article 5. Portable Engine and Equipment Registra tion

§ 2450. Purpose.

These regulations establish a statewide program for the registration and regulation of portable engines and engine-associated equipment (p ortable engines and equipment units) as defined herein. Portable engines and equ ipment units registered under the Air Resources Board program may operate throughout the State of California without authorization (except as specified herein) or permi ts from air quality management or air pollution control districts (districts). These reg ulations preempt districts from permitting, registering, or regulating portable engines and equ ipment units, including equipment necessary for the operation of a portable engine (e .g. fuel tanks), registered with the Executive Officer of the Air Resources Board except in the circumstances specified in the regulations.

NOTE: Authority cited: Section 39600, 39601, 41752, 41753, 41754, 41755, 43013(b), and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2451. Applicability.

(a) Registration under this regulation is voluntary for owners of portable engines or equipment units.

(b) This regulation applies to portable engines and equipment units as defined in section 2452. Except as provided in paragraph ( c) of this section, any portable engine or equipment unit may register unde r this regulation. Examples include, but are not limited to:

(1) portable equipment units driven solely by port able engines including confined and unconfined abrasive blasting, Portland concrete batch plants, sand and gravel screening, rock crushing, a nd unheated pavement recycling and crushing operations; (2) consistent with section 209 (e) of the federal Clean Air Act, engines and associated equipment used in conjunction with t he following types of portable operations: well drilling, servi ce or work-over rigs; power generation, excluding cogeneration; pumps; co mpressors; diesel pile-driving hammers; welding; cranes; wood chippers; dredges; equipment necessary for the operation of p ortable engines and equipment units; and military tactical support equipment.A-2

(c) The following are not eligible for registration under this program:

(1) any engine used to propel mobile equipment or a motor vehicle of any kind as defined in section 2452 (aa)(1)(A); (2) any engine or equipment unit not meeting the de finition of portable as defined in section 2452 (dd) of this regulation; (3) engines, equipment units, and associated engine s determined by the Executive Officer to qualify as part of a stati onary source permitted by a district; (4) any engine or equipment unit subject to an appl icable federal Maximum Achievable Control Technology standard, or National Emissions Standard for Hazardous Air Pollutants, or federal New Source Performance Standard, except for equipment units subject to the requirements of 40 CFR Part 60 Subpart OOO (Standards of Performanc e for Nonmetallic Mineral Processing Plants) as they relate to portab le plants as defined in

40 CFR section 60.671 ; (5) any engine or equipment unit operating within t he boundaries of the California Outer Continental Shelf (OCS). [Note: This shall not prevent statewide registration of portable engines and equi pment units already permitted by a district for operation in the OCS. Such statewide registration shall only be valid for operation onshore and in St ate Territorial Waters (STW).]; (6) any dredging operation in the Santa Barbara Har bor; (7) any dredging unit owned by a single port author ity, harbor district, or similar agency in control of a harbor, and operated only within the same harbor; (8) generators used for power production into the g rid, except to maintain grid stability during an emergency event or other unfore seen event that affects grid stability; and (9) generators used to provide primary or supplemen tal power to a building, facility, stationary source, or stationary equipmen t, except during unforeseen interruptions of electrical power from t he serving utility, maintenance and repair operations, electrical upgra de operations including startup, shutdown, and testing that do not exceed 6 0 calendar days, operations where the voltage, frequency, or electri cal current requirements can only be supplied by a portable generator, or re mote operations where grid power is unavailable.

(d) In the event that the owner of an engine or equ ipment unit elects not to register under this program, the engine or equipment unit shall be subject to district permitting requirements pursuant to district regulations.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.A-3

§ 2452. Definitions.

(a) “ Air Contaminant ” shall have the same meaning as set out in section 39013 of the Health and Safety Code.

(b) “ ARB ” means the California Air Resources Board.

(c) “ Certified Compression-Ignition Engine ” means an engine meeting the nonroad engine emission standards for compression-ignition engine s, as set

forth in Title 13 of the California Code of Regulations or 40 CFR Part 86, 40 CFR Part 89, 40 CFR Part 1039, 40 CFR Part 94, 40 CFR P art 1042, or as set forth in the equivalent categories in title 13 of the Califo rnia Code of Regulations in effect at the time of application

.

(d) “ Certified Spark-Ignition Engine ” means an engine meeting the nonroad engine emission standards for spark-ignition engines, as set forth in title 13, CCR Cal. Code Regs. or 40 CFR Part 1048 in effect at the time of appli cation

.

(e) “ Compression-Ignition (CI) Engine ” means an internal combustion engine with operating characteristics significantly similar to the theoretical diesel combustion cycle. Compression-ignition engines usu ally control fuel supply instead of using a throttle to regulate power.

(f) “ Corresponding Onshore District ” means the district which has jurisdiction for the onshore area that is geographically closest to the engine or equipment unit.

(g) “ Crane ” means the same as “Two-Engine Crane” defined in tit le 13, CCR Cal. Code Regs. , section 2449(c)(56 9 ).

(h) “ District ” means an air pollution control district or air qu ality management district created or continued in existence pursuant to provisions of Part 3 (commencing with section 40000) of the California H ealth and Safety Code.

(i) “ Electrical Upgrade ” means replacement or addition of electrical equipme nt and systems resulting in increased generation, transmis sion and/or distribution capacity.

(j) “ Emergency Event ” means any situation arising from sudden and reaso nably unforeseen natural disaster such as earthquake, flo od, fire, or other acts of God

natural disasters , or other unforeseen events beyond the control of the portable engine or equipment unit operator, its officers, em ployees, and contractors that threatens public health and safety and that require s the immediate temporary operation of portable engines or equipment units to help alleviate the threat to public health and safety.

(k) “ Engine ” means any piston driven internal combustion engin e.A-4

(l) “ Equipment Unit ” means equipment that emits PM 10 over and above that emitted from an associated engine.

(m) “ Executive Officer ” means the Executive Officer of the California Air Resources Board or his/her designee.

(n) “ Hazardous Air Pollutant (HAP) ” means any air contaminant that is listed pursuant to section 112(b) of the federal Clean Air Act.

(o) “ Home District ” means the district designated by the responsible official as the district in which the registered engine or equipmen t unit resides most of the time. For registered engines or equipment units based out of California, the responsible official shall designate the home distr ict based on where the registered engine or equipment unit is likely to be operated a majority of the time the registered engine or equipment unit is in Calif ornia.

(p) “ Identical Replacement ” means a substitution due to mechanical breakdown of a registered portable engine or equipment unit w ith another portable engine or equipment unit that has the same manufacturer, t ype, model number, manufacturer’s maximum rated capacity, and rated br ake horsepower; and is intended to perform the same or similar function as the original portable engine or equipment unit; and has equal or lower emissions expressed as mass per unit time; and meets the emission requirements of s ections 2455 through 2457

of this article.

(q) “ In-field Inspection ” means an inspection that is conducted at the loca tion that the portable engine or equipment unit is operated u nder normal load and

conditions.

(r) “ Location ” means any single site at a building, structure, f acility, or installation.

(s) “ Maximum Achievable Control Technology (MACT) ” means any federal requirement promulgated as part of 40 CFR Parts 61 and 63.

(t) “ Maximum Rated Capacity ” is the maximum throughput rating or volume capacity listed on the nameplate of the registered equipment unit as specified by

the manufacturer.

(u) “ Maximum Rated Horsepower (brake horsepower (bhp) ” is the maximum brake horsepower rating specified by the registered engine manufacturer and listed on the nameplate of the registered engine.

(v) “ Mechanical Breakdown ” means any failure of an engine’s electrical system or mechanical parts that necessitates the removal of t he registered engine from

service.

(w) “ Modification ” means any physical change to, change in method of operation of, or an addition to a registered engine or equipm ent unit, which may cause orA-5

result in an increase in the amount of any air cont aminant emitted or the issuance of air contaminants not previously emitted . Routine maintenance and/or repair shall not be considered a physical ch ange. Unless previously limited by an enforceable registration condition, a change in the method of operation shall not include:

(1) an increase in the production rate, unless such increase will cause the maximum design capacity of the registered equipment unit to be exceeded; (2) an increase in the hours of operation; (3) a change of ownership; and (4) the movement of a registered engine or equipmen t unit from one location

to another.

(x) “ New Nonroad Engine ” means a nonroad engine, the equitable or legal ti tle to which has never been transferred to an ultimate pur chaser. If the equitable or legal title to an engine is not transferred to an u ltimate purchaser until after the engine is placed into service, then the engine will no longer be new after it is placed into service. A nonroad engine is placed in to service when it is used for its functional purposes. The term “ultimate purcha ser” means, with respect to a new nonroad engine, the first person who purchases a new nonroad engine for purposes other than resale.

(y) “ New Source Performance Standard (NSPS) ” means any federal requirement promulgated as part of 40 CFR Part 60.

(z) “ Non-field Inspection ” means an inspection that is either conducted at a location that is mutually acceptable to the distric t and the owner or operator or where the engine or equipment unit is stored and do es not require operation of the engine or equipment unit for purposes of the in spection.

(aa) “ Nonroad Engine ” means:

(1) Except as discussed in paragraph (2) of this de finition, a nonroad engine is any engine:

(A) in or on a piece of equipment that is self-prop elled or serves a dual purpose by both propelling itself and performing an other function (such as garden tractors, off-highway mobile cranes and bulldozers); or (B) in or on a piece of equipment that is intended to be propelled while performing its function (such as lawnmowers and str ing trimmers);

or (C) that, by itself or in or on a piece of equipmen t, is portable or transportable, meaning designed to be and capable o f being carried

or moved from one location to another. Indicia of transportability include, but are not limited to, wheels, skids, car rying handles, dolly, trailer, or platform.A-6

(2) An engine is not a nonroad engine if:

(A) the engine is used to propel a motor vehicle or a vehicle used solely for competition, or is subject to standards promulgated under section 202 of the federal Clean Air Act; or (B) the engine is regulated by a federal New Source Performance Standard promulgated under section 111 of the feder al Clean Air

Act; or (C) the engine otherwise included in paragraph (1)( C) of this

definition remains or will remain at a location for more than 12 consecutive months or a shorter period of time for an engine located at a seasonal source. Any engine (or engin es) that replaces an engine at a location and that is intend ed to perform the same or similar function as the engine replaced will be included in calculating the consecutive time period . An engine located at a seasonal source is an engine that rema ins at a seasonal source during the full annual operating pe riod of the seasonal source. A seasonal source is a stationary source that remains in a single location on a permanent basis ( at least two years) and that operates at that single location ap proximately three (or more) months each year.

(bb) “ Outer Continental Shelf (OCS) ” shall have the meaning provided by section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. Section 1331 et seq.).

(cc) “ Placard ” means a visible indicator supplied by the Air Resou rces Board to indicate that an engine or equipment has been regis tered in the Portable Equipment Registration Program and is in addition t o the registration

identification device.

(dd) “ Portable ” means designed and capable of being carried or mo ved from one location to another. Indicia of portability includ e, but are not limited to, wheels, skids, carrying handles, dolly, trailer, or platfor m. For the purposes of this regulation, dredge engines on a boat or barge are c onsidered portable. The engine or equipment unit is not portable if any of the following are true:

(1) the engine or equipment unit or its replacement is attached to a foundation, or if not so attached, will reside at t he same location for more than 12 consecutive months. The period during whic h the engine or equipment unit is maintained at a storage facility shall be excluded from the residency time determination. Any engine or eq uipment unit such as back-up or stand-by engines or equipment units, tha t replace engine(s) or equipment unit(s) at a location, and is intended to perform the same or similar function as the engine(s) or equipment unit (s) being replaced, will be included in calculating the consecutive time per iod. In that case, the cumulative time of all engine(s) or equipment unit( s), including the timeA-7 between the removal of the original engine(s) or eq uipment unit(s) and installation of the replacement engine(s) or equipm ent unit(s), will be counted toward the consecutive time period; or (2) the engine or equipment unit remains or will re side at a location for less than 12 consecutive months if the engine or equipme nt unit is located at a seasonal source and operates during the full annual operating period of

the seasonal source, where a seasonal source is a s tationary source that remains in a single location on a permanent basis ( at least two years) and that operates at that single location at least thre e months each year; or (3) the engine or equipment unit is moved from one location to another in an attempt to circumvent the portable residence time r equirements.

(ee) “ Prevention of Significant Deterioration (PSD )” means any federal requirements contained in or promulgated pursuant t o Part C of the federal Clean

Air Act.

(ff) “ Process ” means any air-contaminant-emitting activity assoc iated with the operation of a registered engine or equipment unit.

(gg) “ Project, for the purposes of onshore operation, ” means the use of one or more registered engines or equipment units operated under the same or common ownership or control to perform a single act ivity.

(hh) “ Project, for the purposes of State Territorial Wate rs (STW), ” means the use of one or more registered engines and equipment uni ts operating under the same or common ownership or control to perform any and a ll activities needed to fulfill specified contract work that is performed in STW. For the purposes of this definition, a contract means verbal or written comm itments covering all operations necessary to complete construction, exploration, ma intenance, or other work. Multiple or consecutive contracts may be considered one project if they are intended to perform activities in the same general area, the same parties are involved in the contracts, or the time period speci fied in the contracts is determined by the Executive Officer to be sequentia l.

(ii) “ Provider of Essential Public Service (PEPS) ” means any privately-owned corporation or public agency whose primary purpose is to own, operate, control, or manage an essential public service. An essentia l public service may be a line, plant, or system for the transportation of people o r property, the transmission of telephone or telegraph messages, or the production, generation, transmission or furnishing of heat, light, water, power, or sanitat ion directly or indirectly to the public. The final determination that a corporation or public agency is providing an essential public service is with the Executive Offi cer.

(jj) “ Registration ” means issuance of a certificate by the Executive Officer acknowledging expected compliance with the applicab le requirements of this article, and the intent by the owner or operator to operate the engine or equipment unit within the requirements established by this article.A-8

(kk) “ Rental Business ” means a business which rents or leases registered engines or equipment units.

(ll) “ Renter ” means a person who rents and/or operates register ed engines or equipment units not owned by that person.

(mm) “ Resident Engine ” means either of the following:

(1) a portable certified engine that at the time of applying for registrati on, has a current, valid district permit or district registration that was issued prior to January 1, 2006 , or an certified engine that lost a permit to operate exemption through a formal district action. Moving an engine from a district that provides a permit to operate exemptio n to a district that requires a permit to operate or registration does n ot qualify for consideration as a resident engine. ; or (2) a certified compression

- ignition engine that operated in California at any time between March 1, 2004 and October 1, 2006. Th e responsible official shall provide sufficient documentation to prove the engine’s residency to the satisfaction o f the Executive Officer. Examples of adequate documentation include but are not limited to: tax records, purchase records, maintenance records, or usage rec ords.

An engine permitted or registered by a district pur suant to title 17, CCR,section 93116.3(b) (6) is not a resident engine.

(nn) “ Responsible Official ” refers to an individual employed by the company or public agency with the authority to certify that th e registered engines or equipment units under his/her jurisdiction comply w ith applicable requirements of

this regulation. A company or public agency may have more than one Responsible Official.

(oo) “ Spark-Ignition (SI) Engine ” means an internal combustion engine with a spark plug (or other sparking device) with operating char acteristics significantly similar to the theoretical Otto combustion cycle. Spark-ig nition engines usually use a throttle instead of using fuel supply to control in take air flow to regulate power.

(pp) “ State Territorial Waters (STW) ” includes all of the following: an expanse of

water that extends from the California coastline to 3 miles off-shore; a 3 mile

wide belt around islands; and estuaries, rivers, an d other inland waterways.

(qq) “ Statewide Registration Program ” means the program for registration of portable engines and equipment units set out in thi s article.

(rr) “ Stationary Source ” means any building, structure, facility or instal lation which emits any air contaminant directly or as a fugitive emission. “Building,” “structure,” “facility,” or “installation” includes all pollutant emitting activities which:

(1) are under the same ownership or operation, or w hich are owned or operated by entities which are under common control ;A-9

(2) belong to the same industrial grouping either b y virtue of falling within the same two-digit standard industrial classification c ode or by virtue of being part of a common industrial process, manufacturing process, or connected process involving a common raw material; and (3) are located on one or more contiguous or adjace nt properties.

[Note: For the purposes of this regulation a stati onary source and nonroad engine are mutually exclusive.]

(ss) “ Storage ” means a warehouse, enclosed yard, or other area e stablished for the primary purpose of maintaining registered engines o r equipment units when not in operation.

(tt) “ Street Sweeper ” means the same as “Dual-engine Street Sweeper” de fined in title 13, CCR Cal. Code Regs. , section 2022(b)(2).

(uu) “ Tactical Support Equipment (TSE) ” means equipment using a portable engine, including turbines, that meets military spe cifications, owned by the U.S. Department of Defense, the U.S. military servi ces, or its allies, and used in combat, combat support, combat service support, tac tical or relief operations, or training for such operations. Examples include, bu t are not limited to, internal combustion engines associated with portable generat ors, aircraft start carts, heaters and lighting carts.

(vv) “ Third-party Rental ” means a non-rental business renting or leasing regi stered engines and/or equipment units to another party by written agreement.

( ww ) “ Tier 1 Engine ” means a certified compression

- ignition nonroad engine according to the horsepower and model year as follo ws:

≥ 50 bhp and <100 bhp; 1998 through 2003

≥ 100 bhp and <175 bhp; 1997 through 2002

≥ 175 bhp and <300 bhp; 1996 through 2002

≥ 300 bhp and <600 bhp; 1996 through 2000

≥ 600 bhp and ≤ 750 bhp; 1996 through 2001 >750 bhp; 2000 through 2005.

( xx ) “ Tier 2 Engine ” means a certified compression

- ignition nonroad engine

acc ording to the horsepower and model year as follows:

≥ 50 bhp and <100 bhp; 2004 through 2007

≥ 100 bhp and <175 bhp; 2003 through 2006

≥ 175 bhp and <300 bhp; 2003 through 2005

≥ 300 bhp and <600 bhp; 2001 through 2005

≥ 600 bhp and ≤ 750 bhp; 2002 through 2005 >750 bhp; 2006 through 2010.

(yy ww ) “ Transportable ” means the same as portable.

(zz xx ) “ U.S. EPA ” means the United States Environmental Protection Agency.A-10

( aaa ) “ Vendor ” means a seller or supplier of portable engines or equipment units for

use in California.

(bbb yy ) “ Volatile Organic Compound (VOC) ” means any compound containing at least one atom of carbon except for the following exempt compounds: acetone, ethane, parachlorobenzotrifluoride (1-chloro-4-trif luoromethyl benzene),

methane, carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonates, methylene chloride (dichloromethane), methyl chloroform (1,1,1-trichloroethane), CFC-113 (trichlorotrifluoroethane), CFC-11 (trichlorofluoromethane), CFC-12 (dichlorodi fluoromethane), CFC-22 (chlorodifluoromethane), CFC-23 (trifluoromethane), CFC-114 (dichlorotetrafluoroethane), CFC-115 (chloropentafl uoroethane), HCFC-123 (dichlorotrifluoroethane), HFC-134a (tetrafluoroeth ane), HCFC-141b (dichlorofluoroethane), HCFC-142b (chlorodifluoroet hane), HCFC-124 (chlorotetrafluoroethane), HFC-23 (trifluoromethane ), HFC-134 (tetrafluoroethane), HFC-125 (pentafluoroethane), H FC-143a (trifluoroethane), HFC-152a (difluoroethane), cyclic, branched, or lin ear completely methylated siloxanes, the following classes of perfluorocarbon s:

(1) cyclic, branched, or linear, completely fluorin ated alkanes; (2) cyclic, branched, or linear, completely fluorin ated ethers with no unsaturations; (3) cyclic, branched, or linear, completely fluorin ated tertiary amines with no unsaturations; and (4) sulfur-containing perfluorocarbons with no unsa turations and with the sulfur bonds to carbon and fluorine, acetone, ethan e, and parachlorobenzotrifluoride (1-chloro-4-trifluoromet hyl benzene).

(zz) “ Water Well Drilling Rig ” means the same as “Two-Engine Water Well Drilling Rig” defined in title 13, Cal. Code Regs., section 2449(c)(60).

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2453. Application Process.

(a) In order for an engine or equipment unit to be considered for registration by the Executive Officer, the engine or equipment unit mus t be portable as defined in section 2452 (dd) and meet all applicable requireme nts established in this article.

(b) For purposes of registration under this article , an engine and the equipment unit it serves are considered to be separate emissions unit s and require separate applications.A-11

(c) For an identical replacement, an owner or opera tor of a registered portable engine or equipment unit is not required to complet e a new application and may immediately operate the identical replacement. Exc ept for TSE, the owner or operator shall notify the Executive Officer in writ ing within five calendar days of replacing the registered engine or equipment unit w ith an identical replacement. Notification shall include company name, responsibl e official, phone number, registration certificate number of the engine or eq uipment unit to be replaced; and make, model, rated brake horsepower, serial num ber of the identical replacement, description of the mechanical breakdow n; and applicable fees as required in section 2461. Misrepresentation of eng ine or equipment unit information or the failure to meet the requirements of this regulation shall be

deemed a violation of this article.

(d) The Executive Officer shall inform the applican t, in writing, if the application is complete or deficient, within 30 days of receipt of an application. If deemed deficient, the Executive Officer shall identify the specific information required to make the application complete.

(e) The Executive Officer shall issue or deny regis tration within 90 days of receipt of a complete application.

(f) Upon finding that an engine or equipment unit m eets the requirements of this article, the Executive Officer shall issue a regist ration for the engine or equipment unit. The Executive Officer shall notify the appli cant in writing or electronic

notification that the engine or equipment unit has been registe red. The written or

electronic notification shall include a registration certific ate, and any conditions to ensure compliance with State and federal requiremen ts,

. For electronic notification, the applicant shall submit an agreeme nt with the application to accept electronic notification in lieu of written n otification. In addition, and a registration identification device shall be mailed by the Executive Officer for each engine or equipment unit registered pursuant to thi s regulation. Except for TSE, the registration identification device shall be aff ixed on the engine or equipment unit at all times, and the registration certificate including operating conditions shall be kept on the immediate premises with the en gine or equipment at all

times and made accessible to the Executive Officer or district upon request. Failure to properly maintain the registration ident ification device shall be deemed

a violation of this article.

(g) Except for TSE, each application for registrati on and the appropriate fee(s) as specified in section 2461, shall be submitted in a format approved by the Executive Officer and include, at a minimum, the fo llowing information:

(1) indication of general nature of business (e.g., rental business, etc.); (2) the name of applicant, including mailing addres s, email address, and telephone number; (3) a brief description of typical engine or equipm ent- unit use;A-12

(4) detailed description, including engine or equip ment- unit make, model, manufacture year (for portable engines only), rated brake horsepower, throughput, capacity, emission control equipment, a nd serial number; (5) necessary engineering data, emissions test data , or manufacturer’s emissions data to demonstrate compliance with the r equirements as specified in sections 2455, 2456, and 2457; (6) for owners of water well drilling rigs, a copy of a current, valid C-57 water well drilling contractors license; (6 7 ) for resident engines, a copy of either a current permit to operate that was granted by a district, or documentation as describe d in section 2452 (mm);

and (7 8 ) the printed name and written or electronic signature of the responsible official and date of the signature.

(h) For TSE, application for registration and the a ppropriate fee(s) as specified in section 2461, shall be submitted in a format approv ed by the Executive Officer and include, at a minimum, the following informatio n: (1) the name of applicant, including mailing addres s, email address, and telephone number; (2) a brief description of typical engine or equipm ent

- unit use; (3) engine or equipment- unit description, including type and rated brake horsepower; and (4) the printed name and written or electronic signature of the responsible official and date of the signature.

(i) All registered engines and equipment units shal l have a designated home district as defined in section 2452 (o) according to the fol lowing:

(1) O o wners holding valid registration(s) prior to the ef fective date shall designate in writing to the Executive Officer a hom e district within 90 days of the effective date of this regulation. The Exec utive Officer shall designate the home district for any and all registe red engines and equipment units for existing registration program p articipants that fail to designate a home district; (2) a home district shall be designated on each app lication for initial registration of an engine or equipment unit; and (3) except for registered engines or equipment unit s owned by a rental business or involved in a third party rental, if the engine or equipment unit, based on averaging of annual operation in each dist rict from the three annual reports submitted during the 3 year registra tion cycle operational and/or location records as required by 2458(a) or t he annual report as required 2458(g) for the calendar year prior to ren ewal , operated the largest percentage of the time in a district other than the designated home district, the owner shall change the home district designation at the time of renewal. The change is not required if the differe nce between the home district operation percentage and the district with the largest operating percentage is 5 percent or less.A-13

(j) Engines or equipment units owned and operated f or the primary purpose of rental by a rental business shall be identified as rental at the time of application for registration and shall be issued a registration specific to the rental business requirements of this article. Misrepresentation of portable engine or equipment unit use in an attempt to qualify under the rental business definition shall be

deemed a violation of this article.

(k) New applications for non-operational engines or equipment units will not be accepted by the Executive Officer.

(l) Once registration is issued by the Executive Of ficer, district permits or district registrations for engines or equipment units regist ered in the Statewide Registration Program are preempted by the statewide registration and are, therefore, considered null and void, except for the following circumstances where a district permit shall be required:

(1) engines or equipment units used in a project(s) operating in the OCS. The requirements of the district permit or registration apply to the registered engine or equipment unit while operating at the pro ject(s) in the OCS; or (2) engines or equipment units used in a project(s) operating in both the OCS and STW. The requirements of the district permit o r registration apply to the registered engine or equipment unit while opera ting at the project(s) in the OCS and STW; or (3) at STW project(s) that trigger district emissio n offset thresholds; or (4) at any specific location where statewide regist ration is not valid. The owner of the engine or equipment unit shall obtain a district permit or registration for the location(s) where the statewid e registration is not valid;

or (5) at any location where an engine or equipment un it that has been determined to cause a public nuisance as defined in Health and Safety

Code Section 41700.

Under no circumstances shall a portable engine or e quipment unit be operated under both statewide registration and a district pe rmit at any specific location. Where both a district permit for operation at a spe cific location and statewide registration have been issued for an engine or equi pment unit, the terms of the district permit shall take precedence at that locat ion.

(m) When ownership of a registered engine or equipm ent unit changes, the new owner shall submit a change of ownership applicatio n. This application shall be filed within 30 days of the change of ownership. D uring the 30 day period the new owner is authorized to operate the registered e ngine or equipment unit. If an application is not received within 30 days, the engine or equipment unit may not operate and the existing registration is not va lid for the new owner until the application has been filed and all applicable fees have been paid. Registration will be reissued to the new owner after a complete application has been approved by the Executive Officer.A-14

(n) Except for TSE, a placard shall be required for every engine or equipment unit registered in the Statewide Registration Program. The placard shall be affixed on the registered engine or equipment unit at all t imes so that it may be easily viewed from a distance. Placards shall be purchase d at the time of the first renewal or at the time of initial registration, whi ch ever occurs first. Failure to properly maintain the placard shall be deemed a vio lation of this article.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2454. Registration Process.

(a) The Executive Officer shall make registration d ata available to the districts via the

Internet. (b) The Executive Officer may conduct an inspection of an engine or equipment unit and/or require a source test in order to verify com pliance with the requirements of this article prior to issuance of registration.

(c) After obtaining registration in accordance with this article, an owner or operator of the registered engines or equipment units:

(1) shall comply with all conditions set forth in t he issued registration. Failure to comply with such conditions shall be deemed a vi olation of this article;

and (2) may operate within the boundaries of the State of California so long as such registered engines or equipment units comply w ith all applicable requirements of this article and any other applicab le federal or State law.

(d) Districts shall provide the Executive Officer w ith written reports or electronic submittals via the Internet, describing any inspect ions and the nature and outcome of any violation of local, State or federal laws by the owner or operator of registered engines or equipment units. The Exec utive Officer shall make

available to all districts such information via the Internet.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2455. General Requirements.

(a) The emissions from engines or equipment units r egistered under this article shall not, in the aggregate, interfere with the attainmen t or maintenance of any California or federal ambient air quality standard. The emissions from one or more registered engines or equipment units, exclusi ve of background concentration, shall not cause an exceedance of any ambient air quality standard. This paragraph shall not be construed as requiring operators ofA-15

registered engines or equipment units to provide em ission offsets for engines or equipment units registered under this article.

(b) Engines or equipment units registered under thi s article shall comply with article 1, chapter 3, part 4, division 26 of the California Health and Safety Code, commencing with section 41700.

(c) Except for engines or equipment units permitted or registered by a district in which an emergency event occurs, an engine or equip ment unit operated during an emergency event as defined in section 2452 (j) o f this article, is considered registered under the requirements of this article f or the duration of the emergency event and is exempt from sections 2455, 2456, 2457, 2458, and 2459 of this article for the duration of the emergency event pro vided the owner or operator

notifies the Executive Officer within 24 hours of c ommencing operation. The Executive Officer may for good cause refute that an emergency event under this provision exists. If the Executive Officer deems t hat an emergency event does not exist, all operation of engines and equipment u nits covered by this provision shall cease operation immediately upon notification by the Executive Officer. Misrepresentation of an emergency event and failure to cease operation under

notice of the Executive Officer shall be deemed a v iolation of this article.

(d) For the purposes of registration under this art icle, the owner or operator of a registered equipment unit must notify the U.S. EPA and comply with 40 CFR

52.21 if:

(1) the registered equipment unit operates at a maj or stationary source under 40 CFR 51.166 or 52.21, and

(A) the major stationary source is located within 1 0 kilometers of a Class I area; or (B) the registered equipment unit, operating in co njunction with other registered equipment units, operates at the major s tationary source and its operation would be defined as a major modif ication to the stationary source under 40 CFR 51.166 or 52.21; or

(2) the registered equipment unit, operating in con junction with other registered equipment units, would be defined as a m ajor stationary source, as defined under 40 CFR 51.166 or 52.21.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2456. Engine Requirements.

(a) For TSE, no air contaminant shall be discharged into the atmosphere, other than uncombined water vapor, for a period or periods agg regating more than three minutes in any one hour which is as dark or darker in shade as that designated as No. 2 on the Ringelmann Chart, as published by t he United States Bureau ofA-16

Mines, or of such opacity as to obscure an observer ’s view to a degree equal to or greater than does smoke designated as No. 2 on t he Ringelmann Chart. No other requirements of this section are applicable t o TSE.

(b) Registered diesel pile-driving hammers shall co mply with the applicable provisions of section 41701.5 of the California Hea lth and Safety Code and are otherwise exempt from further requirements of this section.

(c) Registered diesel engines used on a crane shall comply with the applicable requirements in title 13, CCR Cal. Code Regs. , section 2449 and are otherwise exempt from further requirements of this section, e xcept for subsection (f)(5).

(d) Registered diesel engines used on a street swee per that are not subject to the requirements of title 13, CCR Cal. Code Regs. , section 2022 shall comply with the applicable requirements in title 13, CCR Cal. Code Regs. , section 2025 and are otherwise exempt from further requirements of t his section, except for subsection (f)(5).

(e) To be registered in the Statewide Registration Program, a registered engine rated less than 50 brake horsepower shall be a cert ified compression-ignition engine or a certified spark-ignition engine, unless no emission standards exist for that brake horsepower and year of manufacture. In that event, the engine shall comply with the applicable daily and annual emissio n limits contained in section 2456 (f)(6) of this article. No other requirements of this section are applicable to portable engines rated less than 50 brake horsepowe r.

(f) After January 1, 2006, e E ngines rated equal to, or greater than 50 bhp regis tered

under this article shall:

(1) be certified compression-ignition engines or ce rtified spark-ignition engines that meet the most stringent emissions stan dard in effect for the applicable horsepower range at the time the applica tion for initial registration is submitted by the responsible official. Spark-i gnition engines that are not certified spark-ignition engines may b e registered if they meet the emission standards in Table 1. Subsection (f)(1 ) does not apply to certified compression-ignition engines built under the flexibility provisions listed in 40 CFR Part 89.102, engines that are resi dent engines, changes of ownership, or engines that meet the requirements of title 17, CCR Cal. Code Regs. , sections 93116.3(b)(7 5 ) or 93116.3.1. (2) meet all applicable requirements in title 17, C CR Cal. Code Regs. , sections 93116 through 93116.5, except that engines used on vessels as defined in title 17 Cal. Code Regs. section 93118.5(d)(84) shall meet the applicable requirements of title 17 Cal. Code Regs., section 9 3118.5 ; (3) use only fuels meeting the standards for Califo rnia motor vehicle fuels as set forth in chapter 5, division 3, title 13, CCR Cal. Code Regs.

, commencing with section 2250, or other fuels and/or additives that have been verified through the Verification Procedure fo r In-Use Strategies to Control Emissions from Diesel Engines;A-17

(4) not exceed particulate matter emissions concentrati on of 0.1 grain per standard dry cubic feet corrected to 12 percent CO 2 . This provision does not apply to certified compression-ignition engines , certified spark-ignition engines, or any spark-ignition engine meeting Table 1 requirements; (5) not discharge air contaminants into the atmosph ere for a period or periods aggregating more than three minutes in any one hour which is as dark as or darker than Ringelmann 1 or equivalent 20 percen t opacity; and (6) not exceed the following emission limits:

(A) 550 pounds per day per engine of carbon monoxid e (CO); (B) 150 pounds per day per engine of particulate ma tter less than 10 microns (PM 10 ); (C) for registered engines operating onshore, 10 to ns for each pollutant per district per year per engine for NOx, SOx, VOC, PM 10 , and CO

in nonattainment areas; and (D) for registered engines operating within STW:

(1) the offset requirements of the corresponding on shore district apply. Authorization from the corresponding onshor e district is required prior to operating within STW. If auth orization is in the form of a current district permit, the terms and conditions of the district permit supersede the req uirements of the statewide registration for the project, exce pt that the most stringent of the technology and emission conce ntration limits required by the district permit or statewide registration are applicable. If the registered engine does not have a current district permit, the terms and conditions o f the statewide registration apply, and the corresponding onshore district may require offsets pursuant to district r ules and regulations. The requirement for district offsets shall not apply to the owner or operator of an engine(s) regi stered in the statewide registration program when the engine( s) is operated at a stationary source permitted by the di strict; and (2) the corresponding onshore district may perform an ambient air quality impact analysis (AQIA) for the proposed project prior to granting authorization. The owner or oper ator of engine(s) registered in the statewide registration program shall be required, at the request of the district, to submit any information deemed by the district to be necessary for performing the AQIA. Statewide registration shall not be valid at any location where the AQIA demonstrates a potential violation of an ambient air quality stand ard.

(E) for registered engines operating in the South C oast Air Quality Management District (SCAQMD), 100 pounds nitrogen o xides (NOx) per project per day [An owner may substitute SCAQMD permit or registration limits in effect on or befor e September 17, 1997 (optional)];A-18 (F) 100 pounds NOx per registered engine per day, except in SCAQMD where the limit is 100 pounds NOx per projec t per day.

(7) In lieu of (6)(E) and (6)(F) above, operation o f a registered new nonroad engine rated at 750 brake horsepower or greater for which a federal or California standard pursuant to 40 CFR Part 89 or t itle 13, CCR Cal. Code Regs. has not yet become effective, shall not exceed 12 hours per day. (8) For registered engines that operate in both STW and onshore, the 10 tons per district per year per engine limit in (6)(C) ab ove shall only apply

onshore. (9) For certified compression-ignition engines, ce rtified spark-ignition engines, or any spark-ignition engine meeting Table 1 requir ements, the daily and

annual emission limitations in section 6 above shal l not apply. (10) Effective January 1, 2010, all registered spar k-ignition engines rated at 50 brake horsepower or greater shall be certified spar k-ignition engines or shall meet Table 1 requirements. For those spark ignition engines that are not certified spark

- ignition engines or do not meet Table 1 requirement s, the registration shall expire on December 31, 2009 and the engine will not be allowed to operate under the authority of this r egulation. (11) Notwithstanding the requirements of 2456(f)(10 ), any company, public agency, or military base with no more than 25 total portable engines may choose to select specific registered spark-ignition engines to operate until December 31, 2010. The selections shall be submitt ed to the Executive Officer no later than May 31, 2010, and are subject to the requirements

below:

(A) one spark-ignition engine shall be selected wit h no restriction

for maximum rated horsepower; or (B) no more than five spark-ignition engines shall be selected not to exceed 500 cumulative brake horsepower for t he selected engines. (C) If an owner has selected one uncertified compre ssionignition engines per title 17 Cal. Code Regs. secti on 93116.3(b)(1)(C)(2), then subsection 2456(f)(11)(A) shall not

be used. (D) If an owner has selected less than five uncerti fied compression-ignition engines per title 17 Cal. Code Regs. section 93116.3(b)(1)(C)(3), then the combined tota l of selected spark-ignition engines and compression-ign ition engines shall not exceed five engines with a cumula tive size of 500 brake horsepower.

(g) All registered engines shall be equipped with a functioning non-resettable hour meter, fuel meter or other operation tracking devic e approved by the Executive Officer. Engines regis tered prior to the effective date of this regulatio n, that are not equipped with a functional non

- resettable hour meter, fuel meter or other operation tracking device shall install one and not ify ARB in writing within 6

months of the effective date of this regulation.A-19

(h) Registered TSE is exempt from district New Sour ce Review and Title V programs, including any offset requirements. Furth er, emissions from registered

TSE shall not be included in Title V or New Source Review applicability

determinations.

(i) Registered diesel engines used on a water well drilling rig shall comply with the applicable requirements in title 13, Cal. Code Regs ., section 2449 and are otherwise exempt from further requirements of this section, except for subsection (f)(5).

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

Table 1 Spark-ignition Engine Requirements*



### Pollutant Emission Limits

NOx** VOC ** CO**

80 ppmdv NOx (1.5 g/bhp-hr) 240 ppmdv VOC (1.5 g/bhp-hr) 176 ppmdv CO (2.0 g/bhp-hr)

* These requirements are in addition to requirement s of section 2455 and 2456. ** For the purpose of compliance with this article, ppmdv is parts per million @ 15 percent oxygen ave raged over 15 consecutive minutes. Limits of ppmdv are t he approximate equivalent to the stated grams per brake horsepower hour limit based on assuming the e ngine is 24.2 percent efficient.

§ 2457. Requirements for Registered Equipment Uni ts.

(a) Emissions from a registered equipment unit, ex clusive of emissions emitted directly from the associated portable engine, shall not exceed:

(1) 10 tons per year per district of PM 10 ; and (2) 82 pounds per project per day of PM 10

. (3) For registered equipment units that operate wit hin STW and onshore, emissions released while operating both in STW and onshore shall be included toward the 10 tons per year limit.

(b) Registered equipment units shall also meet the following applicable requirements:

(1) Confined abrasive blasting operations:

(A) no air contaminant shall be discharged into the atmosphere for a period or periods aggregating more than three minut es in any one hour which is as dark as or darker than Ringelmann 1 or equivalent 20 percent opacity; (B) the particulate matter emissions shall be contr olled using a fabric or cartridge filter dust collector;A-20 (C) as a part of application for registration, the applicant shall provide manufacturer’s specifications or engineering data t o demonstrate a minimum particulate matter control of 99 percent fo r the dust collection equipment; (D) except for vent filters, each fabric dust colle ctor shall be equipped with an operational pressure differential gauge to measure the pressure drop across the filters; and (E) there shall be no visible emissions beyond the property line on which the equipment is being operated.

(2) Concrete batch plants:

(A) all dry material transfer points shall be ducte d through a fabric or cartridge type filter dust collector, unless there are no visible emissions from the transfer point; (B) all cement storage silos shall be equipped with fabric or cartridge type vent filters; (C) the silo vent filters shall be maintained in pr oper operating condition; (D) no air contaminant shall be discharged into the atmosphere for a period or periods aggregating more than three minut es in any one hour which is as dark as or darker than Ringelmann 1 or equivalent 20 percent opacity; (E) open areas and all roads subject to vehicular t raffic shall be paved, watered, or chemical palliatives applied to prevent fugitive emissions in excess of 20 percent opacity or Ringel mann 1; (F) silo service hatches shall be dust-tight; (G) as a part of application for registration, th e applicant shall provide

manufacturer’s specifications or engineering data t o demonstrate a minimum particulate matter control of 99 percent fo r the fabric dust collection equipment; (H) except for vent filters, each fabric dust colle ctor shall be equipped with an operational pressure differential gauge to measure the pressure drop across the filters; (I) all aggregate transfer points shall be equipped with a wet suppression system to control fugitive particulate emissions unless there are no visible emissions; (J) all conveyors shall be covered, unless the mate rial being transferred results in no visible emissions; (K) wet suppression shall be used on all stockpiled material to control fugitive particulate emissions, unless the stockpil ed material results in no visible emissions; and (L) there shall be no visible emissions beyond the property line on which the equipment is being operated.

(3) Sand and gravel screening, rock crushing, and pavement crushing and

recycling operations:A-21 (A) no air contaminant shall be discharged into the atmosphere for a period or periods aggregating more than three minut es in any one hour which is as dark as or darker than Ringelmann 1 or equivalent 20 percent opacity; (B) there shall be no visible emissions beyond the property line on which the equipment is being operated; (C) all transfer points shall be ducted through a f abric or cartridge type filter dust collector, or shall be equipped with a wet suppression system maintaining a minimum moisture content unles s there are no visible emissions; (D) particulate matter emissions from each crusher shall be ducted through a fabric dust collector, or shall be equipp ed with a wet suppression system which maintains a minimum moistu re content to ensure there are no visible emissions; (E) all conveyors shall be covered, unless the mate rial being transferred results in no visible emissions; (F) all stockpiled material shall be maintained at a minimum moisture content unless the stockpiled material results in n o visible emissions; (G) as a part of application for registration, the applicant shall provide manufacturer’s specifications or engineering data t o demonstrate a minimum particulate matter control of 99 percent fo r the fabric dust collection equipment; (H) except for vent filters, each fabric dust colle ctor shall be equipped with an operational pressure differential gauge to measure the pressure drop across the filters; (I) open areas and all roads subject to vehicular t raffic shall be paved, watered, or chemical palliatives applied to prevent fugitive emissions in excess of 20 percent opacity or Ringel mann 1; and (J) if applicable, the operation shall comply with the requirements of 40 CFR Part 60 Subpart OOO.

(4) Unconfined abrasive blasting operations:

(A) no air contaminant shall be discharged into the atmosphere for a period or periods aggregating more than three minut es in any one hour which is as dark as or darker than Ringelmann 2 or equivalent 40 percent opacity; (B) only California Air Resources Board-certified a brasive blasting material shall be used [Note: see title 17, CCR Cal. Code Regs.

, section 92530 for certified abrasives.]; (C) the abrasive material shall not be reused; (D) no air contaminant shall be released into the a tmosphere which causes a public nuisance; (E) all applicable requirements of title 17, CCR Cal. Code Regs. shall also apply; and (F) there shall be no visible emissions beyond the property line on which the equipment is being operated.A-22

(5) Tub grinders and trommel screens:

(A) there shall be no visible emissions beyond the property line on which the equipment is being operated; (B) no air contaminant shall be discharged into the atmosphere for a period or periods aggregating more than three minut es in any one hour which is as dark or darker than Ringelmann 1 o r equivalent 20 percent opacity; and (C) water suppression or chemical palliatives shall be used to control fugitive particulate emissions from the tub grinder whenever the tub grinder is in operation, unless there are no visibl e emissions.

(c) Registered equipment units not described in sec tion 2457(b) above, shall be subject to the most stringent district Best Availab le Control Technology (BACT) requirements in effect for that category of source at the time of application for registration.

(d) No change in equipment unit configuration, oper ating scenario, or number of transfer points from that set out in the registrati on for the equipment unit shall be made unless a complete application for modification has been filed and approved by the Executive Officer prior to operation.

(e) Registration is not valid for any equipment uni t operating at a location if by virtue of the activity to be performed hazardous air pollu tants will be emitted (e.g., rock crushing plant operating in a serpentine quarry). [Note: The equipment unit would be subject to the requirements of the distric t in which the equipment unit is operated.]

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2458. Recordkeeping and Reporting.

(a) Except for registered engines owned by a rental business, used in a third-party rental, certified compression-ignition engines and certified spark-ignition engines operated by a PEPS, used on a crane, used on a stre et sweeper, used on a water well drilling rig, or TSE, the owner or operator of registered engines or equipment units , including engines otherwise preempted under secti on 209 (e) of the federal Clean Air Act, or registered equipment units shall maintain records of operation of each registered engine and equipment u nit. Recordkeeping for engines not previously required to maintain records shall begin upon the effective date of the regulation or January 1, 2007, which ev er is later. For engines not previously required to have an hour meter, fuel meter or other device approved by the Executive Officer, the owner or operator sha ll record hours of operation until the hour meter, fuel meter or other device ap proved by the Executive Officer

has been installed. The records shall be maintained at a central place ofA-23

business for five years, and made accessible to the Executive Officer or districts upon request. Records shall be maintained in a for mat approved by the

Executive Officer and include, at a minimum, all of the following:

(1) engine or equipment unit registration number; ( 2 ) recordings from an hour meter, fuel meter, or other device approved by the Executive Officer, and the corresponding dates of the recordings for

eac h registered engine or equipment unit based on the following:

(A) for each project as defined in 2452 (gg) or (hh), r eadings shall be recorded prior to the commencement of operation and at the completion of the project; or (B) for ongoing operation of a registere d engine or equipment unit at multiple locations within a stationary source, read ings shall be recorded at the beginning and end of each calendar week; or (C) for each location, readings shall be recorded prior to commencement of operation and upon completion of operation at

that location.

(3 2 ) For registered engines and equipment units subjec t to a daily and/or

annual operational limitation, daily or annual records as appropriate of either hours of operation, fuel usage, or process t hroughput as applicable. (4 3 ) For equipment units subject to the requirements o f section 2457(b)(3), daily throughput shall be the sum of measurements o f material introduced into the equipment unit by weight . These measurements shall be taken at the initial loading point(s) of the equipment unit. (5) recordings from an hour meter, fuel meter, or other device approved by the Executive Officer and the corresponding dates o f the recordings any time an engine or equipment unit is undergoing serv ice, repair, or maintenance; and (6) f or each start and stop reading specified in (2) and (3) above, the location where the registered engine or equipment is located identified by district, county, or other indicator (i.e., street address, U TM coordinates, etc.) (4) Except for certified engines, the specific loc ation where the registered engine or equipment unit is located (i.e. street ad dress and city, county and UTM coordinates, or other location indicator) s hall be recorded each time the engine or equipment unit is brought to a n ew location. The date the engine or equipment unit was placed at the new location shall also be

recorded. (5) For certified engines, the specific location w here the registered engine is located (i.e. street address and city, county and U TM coordinates, or other location indicator) shall be recorded no less than once a month.

(b) A rental business or the owner of a registered engine or equipment unit involved in a third party rental, shall maintain records for each rental or lease tr ansaction. The written rental or lease agreement, or other equ ivalent document as approved by the Executive Officer shall be kept onsite with the registered engine or equipment unit at all times. Recordkeeping for re gistered engines not previously required to maintain records shall beg in upon the effective date of the regulationA-24

or January 1, 2007, which ever is later. For regis tered engines not previously required to have an hour meter, fuel meter or other device approved by the Executive Officer, the owner or operator shall reco rd ho urs of operation until the hour meter, fuel meter or other device approved by the Executive Officer has

been installed. The owner shall provide each person who rents a r egistered engine or equipment unit with a written copy of app licable requirements of this article, including recordkeeping and notification r equirements, as a part of the agreement. The records, including written acknowle dgment by each renter of the registered engine or equipment unit of having recei ved the above information, shall be maintained by the rental business or the o wner of the registered engine or equipment unit involved in a third-party rental at a central location for five years, and made accessible to the Executive Officer or districts upon request. Records for each rental equipment unit shall be kep t according to section 2458(a). Records shall be maintained in a format approved by the Executive

Officer and include, at a minimum, for each rental engine all of the following:

(1) registered engine registration number; (2) dates for the start and end of the rental trans action; (3) For registered engines, hours of operation for each rental period includin g the hour meter reading at the start of the rental t ransaction and the hour meter reading at the end of the rental transaction; and (4) location of use (by district, county or other indic ator (i.e., street address, UTM coordinates, etc.)). (4) The specific location where the registered engi ne is located while out on rent identified by street address and city, county and UTM coordinates, or

other location indicator shall be recorded no less than once a month (c) For TSE, each military installation shall provi de the Executive Officer an annual report, in a format approved by the Executive Offic er, within 60 days after the end of each calendar year. The report shall include the number, type, and rating of registered TSE at each installation as of December 31 of that calendar year, and be accompanied by the applicable fees pursuant to s ection 2461. Any variation of registered TSE to actual TSE shall be accounted for in this annual report, and the Executive Officer shall issue an updated TSE li st accordingly. A renewal registration will be issued with the updated TSE li st every three years according to expiration date.

(d) For each registered engine subject to the requi rements of title 17, Cal. Code Regs. , section 93116, the owner shall keep records and s ubmit reports in accordance with title 17, CCR Cal. Code Regs. , section 93116.4.

(e) Except for registered certified compression-ign ition and certified spark-ignition engines, engines used on a crane, engines used on a street sweeper, engines used on a water well drilling rig, or TSE, the owner of a registered engine or equipment unit shall provide the Executive Officer an annual report signed by the responsible official, in a format approved by the E xecutive Officer, by March 1 of each calendar year containing all of the following information:

(1) the reporting year;A-25

(2) the registration number of each registered engi ne and/or equipment unit; (3) for registered engines, quarterly summaries for each district or county the total fuel usage in gallons per quarter, or total h ours of operation per quarter, for each registered engine; and (4) for registered equipment units, quarterly summa ries for each district or county in which the registered equipment unit was o perated and the total process weight or throughput.

(f) The owner of a registered engine or equipment u nit owned by a rental business or used in a third-party rental transaction shall p rovide the Executive Officer an annual report signed by the responsible official, i n a format approved by the Executive Officer, by March 1 of each calendar year containing all of the following information:

(1) the reporting year; (2) the registration number of each registered eng ine and/or equipment unit ; (3) total hours of operation for the reporting year for each registered engine based on, and including, beginning and ending annua l hour meter readings and dates upon which the total hours of an nual operation calculation is based; (4) list of all counties in which the registered engine operated in during the reporting year as reported by the entity(ies) that operated the registered engine; (5) estimate of the pe rcentage of total hours for each engine operated in each of the counties identified in (4) above; and (6) for registered equipment units, quarterly and annua l summaries for each district or county in which the registered equipmen t unit was operated and

th e total process weight or throughput.

(g) the owner or operator of a registered engine or equipment unit used by a PEPS shall provide the Executive Officer an annual repor t, in a format approved by the Executive Officer, by March 1st of each calendar ye ar containing all of the following information:

(1) the reporting year; (2) the registration number of each registered eng ine and/or equipment unit; (3) for registered engines, the total annual hours of operation; and (4) for registered equipment units, the total annua l process throughput. estimate of the percentage of hours or fuel usage f or the three counties in which the registered engine or equipment unit opera ted the most. (5) an estimate of the percentage of time spent in the three counties in which the registered engine or equipment unit operated th e most.

(h) Records requests made by a district or Executiv e Officer shall be made to the responsible official. The responsible official sha ll provide the requested records within 30 days from receipt of the request. Failur e to provide the records by the specified date shall be deemed a violation of this article.A-26

(i) Each district shall provide the Executive Offic er with an annual report, in a format approved by the Executive Officer, by March 31 foll owing the year in which the information was collected containing all of the fol lowing information:

(1) the number of portable engines and equipment un its inspected; (2) the number of portable engines and/or equipment units found operating without valid district permits or statewide registr ations; (3) the number of registered engines and equipment units inspected; and (4) summary of results of inspections.

(j) Vendors selling new portable engines and/or equipme nt units in California shall:

(1) notify the buyer about this regula tion; and (2) on a monthly basis submit to the Executive Officer the number of portable engines and/or portable equipment units sold by the vendor for use in California including: the name, address, and contac t information of the purchaser, and description of the engine and/or equipment unit including make, model, and engine family name.

(k j ) Registered diesel engines used on a crane shall c omply with the applicable requirements in title 13, CCR Cal. Code Regs. , section 2449 and are otherwise exempt from the requirements of this section.

(l k ) Registered diesel engines used on a street sweepe r sweeper that are not subject to the requirements of title 13, CCR Cal. Code Regs. , section 2022 shall comply with the applicable requirements in title 13, CCR Cal. Code Regs. , section 2025 and are otherwise exempt from the requirements of t his section.

(l) Registered diesel engines used on a water well drilling rig shall comply with the applicable requirements in title 13, Cal. Code Regs ., section 2449 and are otherwise exempt from the requirements of this sect ion.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2459. Notification.

(a) Except as listed in subsection (d) of this sect ion, if a registered equipment unit will be at a location for more than five days, the owner or operator of that registered equipment unit, shall notify the distric t in writing in a format approved by the Executive Officer, within two working days o f commencing operations in that district. If the registered equipment unit is to be moved to different locations within the same district, the owner or operator sha ll be subject to the notification requirements above, unless the owner or operator an d the district, by mutual agreement, arrange alternative notification require ments on a case-by-case

basis. The notification shall include all of the f ollowing:A-27

(1) the registration number of the registered equip ment unit; (2) the name and phone number of the responsible of ficial or renter with information concerning the locations where the regi stered equipment unit will be operated within the district; and (3) estimated time the registered equipment unit wi ll be located in the district.

(b) If the district has not been notified as requir ed in section 2459(a) above, because the owner or operator did not reasonably expect the duration of operation to trigger the notification requirement in section 245 9(a) above, the owner or operator shall notify the district, in a format app roved by the Executive Officer, within 12 hours of determining the registered equip ment unit will be operating at a location more than five days.

(c) Owners and operators of TSE are not subject to the notification requirements of

this section 2459.

(d) For STW projects, the owner or operator of a re gistered engine or registered equipment unit shall notify the corresponding onsho re district in writing, in a format approved by the Executive Officer at least 1 4 days in advance of commencing operations in that district. The notifi cation shall include all of the following:

(1) the registration number of the registered engin e or equipment unit; (2) the name and phone number of the responsible of ficial with information concerning the locations where the registered engin e or equipment unit will be operated within the district; (3) estimated time the registered engine(s) or equi pment unit(s) will be

located in the district; and (4) calculations showing the estimation of actual e missions expected for the project.

(e) Except as listed in section 2459(d) above, own ers and operators of registered engines are not subject to notification requirement s.

(f) The Executive Officer shall make available via the Internet a list of approved

notification methods for each district.

(g) Failure to provide the required notifications w ithin the timelines specified in this section shall be deemed a violation of this regulat ion.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.A-28

§ 2460. Inspections and Testing.

(a) In determining if a portable engine or equipmen t unit is eligible for registration, the Executive Officer may inspect the portable engi ne or equipment unit and/or require a source test, at the owner’s expense.

(b) Each district shall inspect all registered engi nes and equipment units for which the district has been designated as the home distri ct pursuant to section 2453(i) above, as specified below:

(1) Within 45 days after the date of initial issuan ce or renewal of a registration, the owner or operator shall contact t he home district to arrange for inspection of the registered engine or equipment unit to be completed within one year of the initial registrati on or renewal date. An arranged inspection shall not be required for engin es selected for registration extension per 2456(f)(11) or title 17 Cal. Code Regs., section 93116.3(b)(1)(C). If the registered engine or equipment unit shall be operating in a district, other than the home distri ct, the owner or operator may request the home district to arrange for an ins pection by that other

district.

(2) For portable engines, each home district should conduct no more than 20 percent of the arranged inspections for that distri ct as in-field inspections. All arranged inspections not conducted as in-field inspections shall be conducted as non-field inspections. If a portable engine is found in violation during an in-field inspection, the next a rranged inspection for that engine shall be an in-field inspection. This secti on does not limit the authority of a district to conduct any number of no n-arranged in-field or non-field inspections for which no fee is charged.

(3) For registered equipment units operating with r egistered engines, the owner or operator may not request that the register ed engine be inspected at the hourly rate specified in Table 3 2 for equipment unit inspections. Inspection fees for registered engines are to be pa id as listed in item 14 in

Table 3 2

.

(4) Arranged inspections for PEPS engines and regis tered equipment units shall be non-field inspections unless an in-field i nspection is requested by the holder of the registration and a reasonable in- field inspection location is arranged with the appropriate district.

(5) The time for an arranged inspection shall be ag reed upon in advance with the district and company preferences regarding time of day shall be

accommodated within reason. To the extent that an arranged inspection does not fall within the district’s normal workday, the district may charge for the off-hour time based on a fee as specified i n Table 3 2

.

(6) If an arranged inspection of a registered engin e or registered equipment

unit does not occur due to unforeseen circumstances , the owner or operator and the home district shall reschedule the arranged inspection noA-29 later than 90 days of the initially scheduled inspe ction. Any unreasonable actions on the part of the owner or operator that p revents the inspection to occur within the specified time frame shall be deem ed a violation of this article. Actions taken by the owner or operator th at could be deemed “unreasonable” include, but are not limited to:

(A) failing to respond to the district corresponden ces or other contracts made to schedule the inspection; (B) failing to ensure that the registered engine or equipment unit is in operation for arranged “in-field inspections” or wh ere the district has provided advance notification to the owner or opera tor that the registered engine or equipment unit is required to be observed in operation.

(7) The owner or operator may request the schedulin g of one or more arranged inspections for multiple engines in order to qualify for an inspection fee discount as specified in section 246 1 (d). Within 45 days of date of initial issuance of registration or by Janu ary 30 of each year for renewals, the owner or operator shall submit a lett er of intent including an equipment list and registration numbers to the dist rict to arrange for inspection of multiple engines. The inspections sh all be completed within one year after the registration renewal date for ea ch engine inspected.

(8) If a registered engine or equipment unit is ou t of California for one year or more following initial registration or renewal, the engine or equipment unit shall be excused from having the arranged inspectio n within that period if:

(A) within 45 days after the date of initial issuan ce or renewal of the registration, the owner or operator submitted a let ter to the district noting the registration number of the registered en gine or equipment unit and that the engine or unit is out o f California for the one-year period; and (B) upon the return of the registered engine or equ ipment unit to the State, the owner or operator shall arrange to have the registered engine or equipment unit inspected within 30 days.

(c) After issuance of registration, the Executive O fficer or district may at any time conduct an inspection of any registered engine or e quipment unit in order to verify compliance with the requirements of this article. The district shall not charge the owner or operator an additional inspection fee for that inspection. Source testing of engines for compliance purposes shall not be req uired more frequently than once every three years (including testing at the ti me of registration), except as provided in section 2460 (e), unless evidence of en gine tampering, lack of proper engine maintenance, or other problems or operating conditions that could affect engine emissions are identified. In no event shall the Executive Officer or district require source testing of a registered engine for w hich there is no applicable emission standard, emission limit or other emission related requirement contained in this regulation.A-30

(d) Testing shall be conducted in accordance with t he following methods or other methods approved by the Executive Officer:

Particulate Matter: ARB Test Method 5 with probe catch and filter catch only

VOC: ARB Test Method 100 or U.S. EPA Test Metho d 25A

NOx: ARB Test Method 100 or U.S. EPA Test Meth od 7E

Carbon Monoxide: ARB Test Method 100 or U.S. EPA Test Method 10 Oxygen: ARB Test Method 100 or U.S. EPA Test Met hod 3A Gas Velocity and Flow Rate: ARB Test Method 1 & 2 o r U.S. EPA Test Method 1 & 2

(e) Initial or follow-up source testing of engines to verify compliance with the requirements of this regulation shall not be requir ed for certified compression-ignition engines and spark-ignition en gines. (f) The exemption provided in section 2460 (e) shal l not apply to source testing of engines for compliance purposes where evidence of e ngine tampering, lack of proper engine maintenance, or other problems or ope rating conditions that could affect engine emissions are identified.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2461. Fees.

(a) Except as otherwise set out herein, the Executi ve Officer shall assess and collect reasonable fees for registration, renewal, and asso ciated administrative tasks, to

recover the estimated costs to the Executive Office r for evaluating registration applications, and issuing registration documentatio n.

(b) Fees shall be due and payable to the Executive Officer at the time an application is filed or as part of any request requiring a fee. Fees are nonrefundable except in circumstances as determined by the Executive Off icer.

(c) Except as provided in (k) below, t T he owner or operator of a registered engine or equipment unit shall submit fees to the Executive O fficer and to districts in

accordance with Table 3 2

.

(d) The Executive Officer shall collect an inspecti on fee as listed in Table 3 2 one time per every three calendar years for each regist ered engine to be paid upon initial application and renewal. Except for TSE, w hen multiple registered engines are inspected at a given source or location, the ow ner shall receive a discount if the owner or operator intends to arrange multiple e ngines inspections with the district and complies with the requirements specifi ed in section 2460(b)(7). The discounts shall be applied as follows:

(1) no discount for 1 to 3 engines (2) 25 percent discount for 4 to 9 engines (3) 35 percent discount for 10 or more enginesA-31

(e) Failure to pay renewal fees when due may result in penalties. If a fee payment is not received or postmarked by the specified due dat e, fee penalties may be assessed per unit in accordance with Table 3 2 . Failure to pay renewal fees prior to expiration may result in cancellation of the reg istration. If a registration has expired for an engine or equipment unit that is eli gible for reactivation, a canceled registration may be reactivated after payment of al l renewal and penalty fees. Registration may be reissued under the original reg istration number and expiration date. A portable engine or equipment un it without valid registration is subject to the rules and regulations of the distric t in which it operates.

(f) Fees shall be periodically revised by the Execu tive Officer in accordance with the consumer price index, as published by the United St ates Bureau of Labor

Statistics.

(g) A district may collect a fee for the inspection of a registered equipment unit pursuant to section 2460(b)(3). The district shall bill the owner of the equipment unit at a rate as specified in Table 3 2 of the regulation for actual staff time taken to perform the inspection, not to exceed the amount specified in Table 3 2 . Upon receipt of the invoice for the inspection fee, the owner shall have the right to appeal the district’s fee determination to the dist rict Air Pollution Control Officer pursuant to the provisions of the district’s rules and regulations that govern appeals of fee determinations.

(h) The Executive Officer shall annually distribute district inspection fees collected for that year. General inspection fees will be dis tributed equally among the districts. Home district inspection fees will be d istributed to the corresponding

home district.

(i) TSE fees are due at the time of the report purs uant to section 2458(c). Failure to submit the annual report and applicable fees within six calendar months after the end of the year will result in cancellation of the registration. For TSE, if registration is cancelled or allowed to expire, the applicant shall reapply and pay initial registration fees.

(j) The district may collect an inspection fee as l isted in Table 3 2 one time per calendar year for each registered TSE inspected. W hen multiple registered TSE units are inspected at a given source or location, the inspection fee shall be equal to the lesser of the actual cost, including s taff time, for conducting the inspection or the fee as listed in Table 3 2 per registered portable engine or equipment unit inspected. If the district performs an inspection leading to determination of non-compliance with this article, or any applicable state or federal requirements, the district may charge a fee as listed in Table 3 2 per portable engine or equipment unit for each inspecti on necessary for the

determination and ultimate resolution of the violat ion. In no event shall the total fees exceed the actual costs, including staff time, to the district of conducting the investigations and resolving any violations.A-32

(k) Portable engines qualifying for init ial registration as resident engines per section 2452(mm)(2) shall use the Table 2 fee schedule. The fees collected subject to

this section shall be distributed to the districts, except that $270 dollars per engine for initial registration, and an addition al $80 dollars per engine shall be retained by the Air Resources Board to provide for administrative costs. The fees

shall be determined as follows:

(1) For tier 1 engines, as defined in section 2452(ww), registration fees will be based on the year liste d in Table 2, as determined below:

(A) Where date of purchase can be verified by the Execu tive Officer, the

earlier of: (1) for engines ≥ 50 bhp and <100 bhp: year of purchase or 2004; (2) for engines ≥ 100 bhp and <300 bhp: year of purchase or 2003; (3) for engines ≥ 300 bhp and <600 bhp: year of purchase or 2001; (4) for engines ≥ 600 bhp and ≤ 750 bhp: year of purchase or 2 002; (5) for engines >750 bhp: year of purchase or 2006. (B) Where the date of purchase can not be verified, the model year shall

be used

.

(2) For tier 2 engines, as defined in section 2452( xx ), registration fees as listed

in Table 2 will be based on t he year the engine was purchased (as verified by the Executive Officer) or the model year of the engine (if purchase date is not available).

Table 2 Registration Fees For Resident Engines Per Section 2452(ll mm )(2) Portable Engine

Date* Application

Submit ted on or

Before 12/31/07 Application

Submitted in

2008 Application

Submitted in

2009

1996 $2,353 $3,130 $5,000

1997 $2,195 $2,920 $4,685

1998 $2,038 $2,710 $4,370

1999 $1,880 $2,500 $4,055

2000 $1,723 $2,290 $3,740

2001 $1,565 $2,080 $3,425

2002 $1 ,408 $1,870 $3,110

2003 $1,250 $1,660 $2,795

2004 $1,093 $1,450 $2,480

2005 $935 $1,240 $2,165

2006 $778 $1,030 $1,850

*As determined in section 2461(k)A-33 Table 3 2 Fees for Statewide Registration Program (Fees are per registered unit except where noted ot herwise)

1 Initial Registration $270.00

2 TSE, initial registration

A Registration of first 25 units (or portion thereof) $750.00

B Registration of every additional 50 units (or porti on thereof) $750.00

3 Change of status from non-operational to operationa l

A Where initial evaluation has not been previously co mpleted $180.00

B Where initial evaluation has been previously comple ted $90.00

4 Identical replacement $75.00

5 Renewal, non-TSE $225.00

6 Penalty fee for late renewal payments, non-TSE

A Postmarked within 2 calendar months prior to regist ration expiration date $45.00

B Postmarked within the calendar month prior to regis tration expiration date $90.00

C Postmarked after the registration expiration date $250.00

7 Annual TSE inventory fee

A first 25 units (or portion thereof) $375.00

B every additional 50 units (or portion thereof) $375.00

8 Modification to registered portable engine or equip ment unit $75.00

9 Change of ownership $75.00

10 Replacement of registration identification device o r placard $30.00

11 Correction to an engine or equipment unit descripti on $45.00

12 Update company information, copy of registration do cuments $45.00

13 Copy of registration documents $45.00

14 Total district inspection fee per registered portab le engine, paid once every 3 years $345.00

A General district inspection fee $30.00

B Home district inspection fee $315.00

15 District off-hour service fee per hour $50.00

16 District inspection fees for equipment units:

A General district inspection fee, paid once every 3 years $75.00

B District inspection fee per equipment unit, per hou r $98.00 (not to

exceed $500.00)

17 TSE inspection fees:

A General district inspection fee per TSE unit, paid annually $10.00

B District inspection fee per TSE unit per inspection $75.00

18 Placard $5.00A -34

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2462. Duration of registration.

(a) Except for registrations that will expire on De cember 31, 2009 pursuant to sections 2456(f)(10) and title 17 CCR Cal. Code Regs. section 93116.3(b)(1)(A), and except for registrations that expire on December 31, 2010 per sections 2456(f)(11) and title 17 Cal. Code Regs. section 93116.3(b)(1)(C), registrations and renewals will be valid for three years from date of issuance. For c hange of ownership, the registration shall retain the original expiration d ate, except where the registration has expired.

(b) The Executive Officer shall mail to the owner o f a registered engine or equipment unit a renewal invoice at least 60 days prior to th e registration expiration. Failure to

send or receive a renewal invoice does not relieve the responsible official from paying all applicable fees when due.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sections 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2463. Suspension or Revocation of Registration.

(a) The Executive Officer for just cause may suspen d or revoke registration in any of the following circumstances:

(1) the holder of registration has violated one or more terms and conditions of registration or has refused to comply with any of t he requirements of this

article; (2) the holder of registration has materially misr epresented the meaning, findings, effect or any other material aspect of th e registration application, including submitting false or incomplete informatio n in its application for registration regardless of the holder’s personal kn owledge of the falsity or incompleteness of the information; (3) the test data submitted by the holder of regis tration to show compliance with this regulation have been found to be inaccurate or invalid; (4) enforcement officers of the ARB or the distric ts, after presentation of proper credentials, have been denied access, during normal business hours or hours of operation, to any facility or location whe re registered engines and equipment units are operated or stored and are prev ented from inspecting such engines or equipment units as provided for in this article (the duty to provide access applies whether or not the holder of registration owns or controls the facility or location in question);A -35

(5) enforcement officers of the ARB or the district s, after presentation of proper credentials, have been denied access to any records required by this regulation for the purpose of inspection and duplic ation; (6) the registered engine or equipment unit has fa iled in-use to comply with the findings set forth in the registrat ion. For the purposes of this section, noncompliance with the registration may in clude, but is not limited to:

(A) a repeated failure to perform to the standards set forth in this article;

or (B) modification of the engine or equipment unit t hat results in an increase in emissions or changes the efficiency or operating conditions of such engine or equipment unit, without prior notice to a nd approval by the Executive Officer; or

(7) the holder of registration has failed to take requested corrective action as set forth in a Notice of Violation or Notice to Comply within the time period set forth in such notice or as otherwise specified in w riting by the issuing district. (8) the holder of the registration has failed to pa y fees assessed by either the

Executive Officer or district within 120 after the specified due date and there is no pending appeal.

(b) A holder of registration may be subject to a su spension or revocation action pursuant to this section based upon the actions of an agent, employee, licensee, or other authorized representative.

(c) The Executive Officer shall notify each holder of registration by certified mail of any action taken by the Executive Officer to suspend or revoke any registration granted

under this article. The notice shall set forth the reasons for and evidence supporting the action(s) taken. A suspension or revocation is effective upon receipt of the

notification.

(d) A holder of registration having received a noti ce to revoke or suspend registration may request that the action be stayed pending a hea ring under section 2464. In determining whether to grant the stay, the Executiv e Officer shall consider the reasonable likelihood that the registration holder will prevail on the merits of the appeal and the harm the holder of registration will likely suffer if the stay is not granted. The Executive Officer shall deny the stay if the adverse effects of the stay on the public health, safety, and welfare outweigh the harm to the holder of registration if the stay is not granted.

(e) Once a registration has been suspended pursuant to (a) above, the holder of registration shall satisfy and correct all noted re asons for the suspension and submit a written report to the Executive Officer advising him or her of all such steps taken by the holder before the Executive Officer will con sider reinstating the registration.A -36

(f) After the Executive Officer suspends or revokes a registration pursuant to this section and prior to commencement of a hearing unde r section 2464, if the holder of registration demonstrates to the Executive Officer’ s satisfaction that the decision to suspend or revoke the registration was based on err oneous information, the Executive Officer will reinstate the registration.

(g) Nothing in this section shall prohibit the Exec utive Officer from taking any other action provided for by law for violations of the He alth and Safety Code.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sect ions 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2464. Appeals.

(a) Hearing Procedures.

(1) Any applicant for registration whose applicati on has been denied or a holder of registration whose registration has been

, suspended

, or revoked may request a hearing to review the action taken by sen ding a request in writing to the Executive Officer. A request for hearing sh all include, at a minimum, the following:

(A) name of applicant or holder of registration; (B) registration number; (C) copy of the Executive Order revoking or suspen ding registration or the written notification of denial; (D) a concise statement of the issues to be raised , with supporting facts, setting forth the basis for challenging the denial, suspension, or revocation (mere conclusory allegations will not su ffice); (E) a brief summary of evidence in support of the statement of facts required in (D) above; and (F) the signature of an authorized person requesti ng the hearing.

(2) A request for a hearing shall be filed within 20 days from the date of issuance of the notice of the denial, suspension, or revocat ion. (3) A hearing requested pursuant to this section s hall be heard by a qualified and impartial hearing officer appointed by the Exec utive Officer. The hearing officer may be an employee of the ARB, but may not be any employee who was involved with the registration at issue. In a request for a hearing of a denial of registration, after reviewing the request for a hearing and supporting documentation provided under subsection (1) above, the hearing officer shall grant the request for a hearing if he or she finds that the request raises a genuine and substantial question of law or fact.A -37

(4) Except as provided in (3) above, the hearing o fficer shall schedule and hold, as soon as practicable, a hearing at a time and pla ce determined by the hearing officer. (5) Upon appointment, the hearing officer shall es tablish a hearing file. The file shall consist of the following:

(A) the determination issued by the Executive Offi cer which is the subject of the request for hearing; (B) the request for hearing and the supporting doc uments that are submitted with it; (C) all documents relating to and relied upon in m aking the determination to deny registration or to suspend or revoke regist ration; and (D) correspondence and other documents material to the hearing.

(6) The hearing file shall be available for inspec tion by the applicant at the office of the hearing officer. (7) An applicant may appear in person or may be re presented by counsel or by any other duly-authorized representative. (8) The ARB may be represented by staff or counsel familiar with the registration program and may present rebuttal evidence. (9) Technical rules of evidence shall not apply to the hearing, except that relevant evidence may be admitted and given probati ve effect only if it is the kind of evidence upon which reasonable persons are accustomed to relying

in the conduct of serious affairs. No action shall be overturned based solely on hearsay evidence, unless the hearsay evidence wo uld be admissible in a court of law under a legally recognized exception t o the hearsay rule. (10) The hearing shall be recorded either electron ically or by a certified shorthand

reporter. (11) The hearing officer shall consider the totalit y of the circumstances of the denial, suspension, or revocation, including b ut not limited to, credibility of witnesses, authenticity and reliabi lity of documents, and qualifications of experts. The hearing office r may also consider relevant past conduct of the applicant including any prior i ncidents involving other ARB programs. (12) The hearing officer’s written decision shall s et forth findings of fact and conclusions of law as necessary. (13) Within 30 days of the conclusion of a hearing, the hearing officer shall submit a written proposed decision, including proposed fin ding as well as a copy of any material submitted by the hearing participants as part of that hearing and relied on by the hearing officer, to the Executive Officer. The hearing officer may recommend to the Executive Officer any of the f ollowing:

(A) uphold the denial, suspension, or revocation a ction as issued; (B) reduce a revocation to a suspension; (C) increase a suspension to a revocation if the r egistration holder's conduct so warrants; orA -38 (D) overturn a denial, suspension, or revocation i n its entirety.

(14) The Executive Officer shall render a final wri tten decision within 60 working days of the last day of hearing. The Executive Off icer may do any of the following:

(A) adopt the hearing officer’s proposed decision; (B) modify the hearing officer’s proposed decision ; or (C) render a decision without regard to the hearin g officer’s proposed

decision.

(b) Hearing conducted by written submission.

(1) In lieu of the hearing procedure set forth in ( a) above, an applicant may request that the hearing be conducted solely by wri tten submission. (2) In such case the requestor must submit a writte n explanation of the basis for the appeal and provide supporting documents within 20 days of making the request. Subsequent to such a submission the follo wing shall transpire:

(A) ARB staff shall submit a written response to t he requestor’s submission and documents in support of the Executiv e Officer's action no later than 10 days after receipt of requestor’s submission; (B) The registration holder may submit one rebutta l statement which may include supporting information, as attachment(s), b ut limited to the issues previously raised; (C) If the registration holder submits a rebuttal, ARB staff may submit one rebuttal statement which may include supporting inf ormation, as attachment(s), but limited to the issues previously raised; and (D) the hearing officer shall be designated in the same manner as set forth in (a)(3) above. The hearing officer shall r eceive all statements and documents and submit a proposed written decisio n and such other documents as described in (a) 13 above to the Executive Officer no later than 30 working days after the final deadl ine for submission of papers. The Executive Officer’s final decision sha ll be mailed to the holder of registration no later than 60 days after the final deadline for submission of papers. (E) The Executive Officer shall render a final writ ten decision within 60 working days of the last day of hearing. The Execu tive Officer may do any of the following:

(1) adopt the hearing officer’s proposed decision; (2) modify the hearing officer’s proposed decision ; or (3) render a decision without regard to the hearin g officer’s proposed decision.A -39

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sections 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.

§ 2465. Penalties.

Violation of the provisions of this article may res ult in civil, and/or criminal penalties pursuant to the California Health and Safety Code. Each day during any portion of which a violation occurs is a separate violation.

NOTE: Authority cited: Sections 39600, 39601, 41752 , 41753, 41754, 41755, 43013(b) and 43018, Health and Safety Code. Reference: Sections 41750, 41751, 41752, 41753, 41754, and 41755, Health and Safety Code.A -40

### Appendix B



## Proposed Regulation Order

Amendments to the Airborne Toxic Control Measure For Diesel Particulate Matter From Portable Engine s

California Air Resources Board

Sections 93116, 93116.1, 93116.2, 93116.3, 93116.4, and 93116.5, title 17, California Code of Regulations.

(Note: Proposed amendments to the regulation are i dentified below. Underline is used to indicate the proposed additions. Strikeout is used to indicate proposed deletions from the regulation text.)B-1 PROPOSED REGULATION ORDER

Amend sections 93116.1, 93116.2 and 93116.3 title 1 7, California Code of Regulations. Sections 93116, 93116.4, and 93116.5 are not being amended, but are included for clarity.

93116 Purpose.

The purpose of this airborne toxic control measure (ATCM) is to reduce diesel particulate matter (PM) emissions from portable die sel-fueled engines having a rated brake horsepower of 50 and greater (> 50 bhp).

Authority cited: Sections 39600, 39601, 39650, 396 58, 39659, 39666, 41752, 43013 and 43018 Health and Safety Code. Reference: Secti ons 39650, 39666, 41752 Health and Safety Code.

§ 93116.1 Applicability.

(a) Except as provided below, all portable engines having a maximum rated horsepower of 50 bhp and greater and fueled with di esel are subject to this regulation.

(b) The following portable engines are not subject to this regulation:

(1) Any engine used to propel mobile equipment or a motor vehicle of any

kind;

(2) Any portable engine using an alternative fuel;

(3) Dual-fuel diesel pilot engines that use an alte rnative fuel or an alternative diesel fuel;

(4) Tactical support equipment;

(5) Portable diesel-fueled engines operated on eith er San Clemente or San

Nicolas Island;

(6) Engines preempted from State regulation under 4 2 USC §7543(e)(1);

(7) Portable diesel-fueled engines operated at airp orts that satisfy the following requirements:

(A) the equipment is subject to the South Coast Gro und Service Equipment Memorandum of Understanding (MOU); andB-2 (B) the participating airlines have demonstrated to the satisfaction of the

Executive Officer that the diesel PM reductions ach ieved by satisfying the requirements of the MOU are equivale nt to the reductions achieved by this control measure.

(8) Engines used exclusively on cranes shall meet a ll applicable requirements in Title 13 of the California Code of Regulations commencing with section 2449; and

(9) Engines used exclusively on street sweepers tha t are not subject to Title

13 CCR Cal. Code Regs. section 2022 shall meet all applicable requirements in Title 13 of the California Code of Regulations commencing with section 2025. ; and

(10) Engines used exclusively on two-engine water w ell drilling rigs as defined in Title 13, Cal. Code Regs., section 2449( c)(60) shall meet all applicable requirements in Title 13 of the Californ ia Code of Regulations commencing with section 2449.

Authority cited: Sections 39600, 39601, 39650, 3965 8, 39659, 39666, 41752, 43013 and 43018 Health and Safety Code. Reference: Secti ons 39650, 39666, 41752 Health and Safety Code.

§ 93116.2 Definitions.

(a) For the purposes of these regulations, the foll owing definitions apply:

(1) “ Air Pollution Control Officer or APCO ” means the air pollution control officer of a district, or his/her designee.

(2) “ Alternative Fuel

” means gasoline, natural gas, propane, liquid petr oleum gas (LPG), hydrogen, ethanol, or methanol.

(3) “ Alternative Diesel Fuel ” means any fuel used in a compression ignition (CI ) engine that is not, commonly or commercially known, sold or represented by the supplier as diesel fuel No. 1-D or No. 2-D, pur suant to the specifications in ASTM Standard Specification for Diesel Fuel Oils D9 75-81, or an alternative fuel, and does not require engine or fuel system mo difications for the engine to operate, although minor modifications (e.g., rec alibration of the engine fuel control) may enhance performance. An emission cont rol strategy using a fuel

additive will be treated as an alternative diesel f uel based strategy unless:

(A) the additive is supplied to the engine fuel by an on-board dosing mechanism, or

(B) the additive is directly mixed into the base fu el inside the fuel tank of the engine, orB-3 (C) the additive and base fuel are not mixed until engine fueling commences, and no more additive plus base fuel comb ination is mixed than required for a single fueling of a single engi ne.

(4) “ CARB Diesel Fuel ” means any diesel fuel that is commonly or commercia lly known, sold, or represented by the supplier as dies el fuel No. 1-D or No. 2-D, pursuant to the specification for Diesel Fuel Oils D975-81, and that meets the specifications defined in Title 13 CCR Cal. Code Regs. , sections 2281, 2282,

and 2284.

(5) “ Certified Nonroad Engine ” refers to an engine meeting an applicable nonroad engine emission standard as set forth in Title 13 o f the California Code of Regulations or

40 CFR 40 Part 89, Part 86, or set forth in the equivalent categories in Title 13 of the California Code of Re gulations

.

(6) “ Crane ” means the same as “Two-Engine Crane” defined in Tit le 13, CCR Cal. Code Regs. , section 2449(c)(56 9 )

(7) “ Diesel Fuel

” means any fuel that is commonly or commercially k nown, sold, or represented by the supplier as diesel fuel, incl uding any mixture of primarily liquid hydrocarbons—organic compounds con sisting exclusively of the elements carbon and hydrogen—that is sold or re presented as suitable for use in an engine.

(8) “ Diesel-Fueled

” means fueled by diesel fuel, or CARB diesel fuel, i n whole or

part.

(9) “ Diesel Particulate Matter (PM) ” means the particles found in the exhaust of diesel-fueled engines which may agglomerate and ads orb other species to form structures of complex physical and chemical pr operties.

(10) “ District

” means a District as defined in Health and Safety Code

section 39025.

(11) “ Dual-fuel Diesel Pilot Engine ” means a dual-fueled engine that uses diesel fuel as a pilot ignition source at an annual averag e ratio of less than 5 parts diesel fuel to 100 parts total fuel on an energy eq uivalent basis.

(12) “ Emergency

” means providing electrical power or mechanical wo rk during any of the following events and subject to the followin g conditions:

(A) the failure or loss of all or part of normal el ectrical power service or normal natural gas supply to the facility:

1. which is caused by any reason other than the enf orcement of a contractual obligation the owner or operator has wi th a third party or any other party; andB-4 2. which is demonstrated by the owner or operator t o the district APCO’s satisfaction to have been beyond the reasona ble control of the owner or operator;

(B) the failure of a facility’s internal power dist ribution system: 1. which is caused by any reason other than the enf orcement of a contractual obligation the owner or operator has wi th a third party or any other party; and 2. which is demonstrated by the owner or operator t o the district APCO’s satisfaction to have been beyond the reasona ble control of the owner or operator;

(C) the pumping of water or sewage to prevent or mi tigate a flood or sewage overflow;

(D) the pumping of water for fire suppression or pr otection;

(E) the pumping of water to maintain pressure in th e water distribution system for the following reasons:

1. pipe break; or 2. high demand on water supply system due to high u se of water for fire suppression;

(F) the breakdown of electric-powered pumping equip ment at sewage treatment facilities or water delivery facilities;

(G) the training of personnel in the use of portabl e equipment for emergency

purposes.

(13) “ Emergency Event ” refers to a situation arising from a sudden and rea sonably unforeseen natural disaster such as an earthquake, flood, fire, or other acts of God, or other unforeseen event that requires the us e of portable engines to help alleviate the threat to public health and safe ty.

(14) “ Engine ” means any piston-driven internal combustion engin e.

(15) “ Engines Used Exclusively in Emergency Applications ” refer to engines that are used only during an emergency or emergency even t, and includes appropriate maintenance and testing.

(16) “ Executive Officer ” means the Executive Officer of the California Air Resources Board (CARB) or his/her designee.

(17) “ Fleet

” refers to a portable engine or group of portable engines that are owned and managed by an individual operational enti ty, such as a business, business unit within a corporation, or individual c ity or state department under the control of a Responsible Official. Engines tha t are owned by differentB-5 business entities that are under the common control of only one Responsible Official shall be treated as a single fleet.

(18) “ Fuel Additive ” means any substance designed to be added to fuel or fuel systems or other engine-related systems such that i t is present in-cylinder during combustion and has any of the following effe cts: decreased emissions, improved fuel economy, increased performance of the engine; or assists diesel emission control strategies in decreasing em issions, or improving fuel economy or increasing performance of the engine. F uel additives used in conjunction with diesel fuel may be treated as an a lternative diesel fuel.

(19) “ In-Use Engines

” refers to portable diesel-fueled engines operatin g under valid permits or registrations as of December 31, 2 005 09

.

(20) “ Level-3 Verified Technology ” means a technology that has satisfied the requirements of the “Verification Procedure for In- Use Strategies to Control Emissions from Diesel Engines” in Title 13, Califor nia Code of Regulations, commencing with section 2700, and has demonstrated an reduction in diesel particulate matter of 85 percent or greater.

(21) “ Location ” means any single site at a building, structure, f acility, or

installation.

(22) “ Low-Use Engines ” refers to portable diesel-fueled engines that ope rate 80 hours or less in a calendar year.

(23) “ Maximum Rated Horsepower (brake horsepower (bhp)) ” is the maximum brake horsepower rating specified by the portable e ngine manufacturer and listed on the nameplate of the portable engine.

(24) “ Nonroad Engine ” means:

(A) Except as discussed in paragraph (2) of this de finition, a nonroad engine is any engine:

1. in or on a piece of equipment that is self-prope lled or serves a dual purpose by both propelling itself and performing an other function (such as garden tractors, off-highway mobile cranes and bulldozers); or

2. in or on a piece of equipment that is intended t o be propelled while performing its function (such as lawnmowers and str ing trimmers); or

3. that, by itself or in or on a piece of equipment , is portable or transportable, meaning designed to be and capable o f being

carried or moved from one location to another. Ind icia of transportability include, but are not limited to, w heels, skids, carrying handles, dolly, trailer, or platform.B-6 (B) An engine is not a nonroad engine if:

1. the engine is used to propel a motor vehicle or a vehicle used solely for competition, or is subject to standards promulgated under section 202 of the federal Clean Air Act; or

2. the engine is regulated by a federal New Source Performance Standard promulgated under section 111 of the feder al Clean Air

Act; or

3. the engine otherwise included in paragraph (1)(C ) of this definition

remains or will remain at a location for more than 12 consecutive months or a shorter period of time for an engine lo cated at a seasonal source. Any engine(s) that replace(s) an engine at a location and that is intended to perform the same o r similar function as the engine replaced will be included in calculat ing the consecutive time period. An engine located at a se asonal source is an engine that remains at a seasonal source during the full annual operating period of the seasonal source. A seasona l source is a stationary source that remains in a single location on a permanent basis (at least two years) and that operates at tha t single location approximately three (or more) months each year.

(25) “ Off-Road Engine ” means the same as nonroad engine.

(26) “ Outer Continental Shelf (OCS )” shall have the meaning provided by section 2 of the Outer Continental Shelf Lands Act (43 USC Se ction 1331 et seq.).

(27) “ Participating Airlines ” means the collective group of Individual Particip ating Airlines under the MOU, which currently is as follo ws: ABX Air, Inc. (formerly Airborne Express), Alaska Airlines, America West Ai rlines, American Airlines, ATA Airlines (formerly American Trans Air), Contine ntal Airlines, Delta Air Lines, Astar Air Cargo (formerly DHL Airways), Fede ral Express, Hawaiian Airlines, Jet Blue Airways Corp., Midwest Airlines (formerly Midwest Express Airlines), Northwest Airlines, Southwest Airlines, United Airlines, United Parcel Service, and US Airways. Participating Airl ines does not mean the Air Transportation Association of America, Inc.

(28) “ Permit

” refers to a certificate issued by the Air Polluti on Control Officer acknowledging expected compliance with the applicab le requirements of the district’s rules and regulations.

(29) “ Portable ” means designed and capable of being carried or mo ved from one location to another. Indicia of portability includ e, but are not limited to, wheels, skids, carrying handles, dolly, trailer, or platform. For the purposes of this regulation, dredge engines on a boat or barge are considered portable. The engine is not portable if:B-7 (A) the engine or its replacement is attached to a foundation, or if not so attached, will reside at the same location for more than 12 consecutive months. The period during which the engine is main tained at a storage facility shall be excluded from the residency time determination. Any engine, such as a back-up or stand-by engine, that replace engine(s) at a location, and is intended to perform the same or similar function as the engine(s) being replaced, will be included in calcu lating the consecutive time period. In that case, the cumulative time of all engine(s), including the time between the removal of the original engine (s) and installation of the replacement engine(s), will be counted toward t he consecutive time period; or

(B) the engine remains or will reside at a location for less than 12 consecutive months if the engine is located at a se asonal source and operates during the full annual operating period of the seasonal source, where a seasonal source is a stationary source that remains in a single location on a permanent basis (at least two years) and that operates at that single location at least three months each yea r; or

(C) the engine is moved from one location to anothe r in an attempt to circumvent the portable residence time requirements

.

(30) “ Project

” means the use of one or more registered or permitte d portable engines or equipment units operated under the same or common ownership or control to perform a single activity.

(31) “ Registration ” refers to either:

(A) a certificate issued by the Executive Officer a cknowledging expected compliance with the applicable requirements of the Statewide Portable Equipment Registration Program; or

(B) a certificate issued by the Air Pollution Contr ol Officer acknowledging expected compliance with the applicable requirement s of the district's Portable Equipment Registration Program.

(32) “ Responsible Official ” refers to an individual employed by the company o r public agency with the authority to certify that th e portable engines under his/her jurisdiction comply with applicable require ments of this regulation. A company or public agency may have more than one Res ponsible Official.

(33) “ Selective Catalytic Reduction (SCR) System ” refers to an air pollution emissions control system that reduces oxides of nit rogen (NOx) emissions through the catalytic reduction of NOx by injecting nitrogen-containing compounds into the exhaust stream, such as ammonia or urea.B-8

(34) “ Stationary Source ” means any building, structure, facility or instal lation that emits any air contaminant directly or as a fugitive emission. Building, structure, facility, or installation includes all p ollutant emitting activities which:

(A) are under the same ownership or operation, or w hich are owned or operated by entities which are under common control ; and

(B) belong to the same industrial grouping either b y virtue of falling within the same two-digit standard industrial classificati on code or by virtue of being part of a common industrial process, manufact uring process, or connected process involving a common raw material; and

(C) are located on one or more contiguous or adjace nt properties.

[Note: For the purposes of this regulation a stati onary source and nonroad engine are mutually exclusive.]

(35) “ Stock Engine ” means a certified diesel-fueled engine that has n ever been placed in service and is part of a supply of engine s offered for sale, rent, or lease by a person or company who offers for sale, r ent, or lease engines and related equipment for profit.

(36) “ Storage ” means a warehouse, enclosed yard, or other area e stablished for the primary purpose of maintaining portable engines when not in operation.

(37) “ Street Sweeper

” means the same as “Dual-engine Street Sweeper” de fined in Title 13, CCR Cal. Code Regs. , section 2022(b)(2).

(38) “ Tactical Support Equipment (TSE) ” means equipment using a portable engine, including turbines, that meets military spe cifications, owned by the U.S. Department of Defense and/or the U.S. military services or its allies, and used in combat, combat support, combat service supp ort, tactical or relief operations, or training for such operations. Examp les include, but are not limited to, engines associated with portable genera tors, aircraft start carts, heaters and lighting carts.

(39) “ Tier 4 Emission Standards ” refers to the final emission standards adopted by the U.S. EPA for newly manufactured nonroad engines

.

(40) “ Transportable ” means the same as portable.

(41) “ Verified Emission Control Strategy ” refers to an emission control strategy, designed primarily for the reduction of diesel PM e missions which has been verified pursuant to the “Verification Procedure fo r In-Use Strategies to Control Emissions from Diesel Engines” in Title 13, California Code of Regulations, commencing with section 2700, and inco rporated by reference.

(42) “ U.S. EPA ” refers to the United States Environmental Protect ion Agency.

Authority cited: Sections 39600, 39601, 39650, 3965 8, 39659, 39666, 41752, 43013 and 43018 Health and Safety Code. Reference: Secti ons 39650, 39666, 41752 Health and Safety Code.B-9

§ 93116.3 Requirements.

(a) Diesel-fueled portable engines shall only use o ne of the following fuels:

(1) CARB diesel fuel; or

(2) alternative diesel fuel that has been verified through the Verification Procedure for In-Use Strategies to Control Emission s from Diesel Engines; or

(3) CARB diesel fuel utilizing fuel additives that have been verified through the Verification Procedure for In-Use Strategies to Control Emissions from Diesel Engines.

[Note that credit for diesel PM reductions for dies el fuel or CARB diesel

fuel blends that use an alternative diesel fuel suc h as biodiesel, FischerTropsch fuels, or emulsions of water in diesel fuel is available only for fuel blends that been verified through the Verifica tion Procedure for InUse Strategies to Control Emissions from Diesel Eng ines. The credit granted is based upon the verified level approved b y the Executive

Officer within the Executive Order for the fuel ble nd.]

(b) Diesel PM Standards

(1) Requirements for in-use portable diesel-fueled engines:

(A) Except as provided in sections 93116.3(b)(1)(B) and 93116.3(b)(1)(C) , starting January 1, 2010, all portable dieselfueled engines shall be certified to meet a federal or California standard for newly manufactured nonroad engines pursuant to 40 CFR Part 89, Part 86, or the equivalent categories in Title 13 of the California Code of Regulations. (that is, certified to Tier 1, 2 or 3 nonroad engine stand ards). 5

(B) In lieu of complying with section 93116.3(b)(1) (A), owners of portable diesel-fueled engines used exclusively in emergency applications or portable diesel-fueled engines that qualify as lowuse engines may commit to replacing these engines w ith Tier 4 engines, subject to the requirements below:

5 Tier 1, 2, 3, and 4 refer to nonroad engine emissi on standards promulgated by ARB and U.S. EPA for newly manufactured engi nes pursuant to 40 CFR Part 89 or Title 13 of the C alifornia Code of Regulation. Each successive Tier represents more stringent emis sion standards and the requirements are phased

- in over time with the Tier 1 engine standards becoming effective for some en gines manufactured in 1996 and becoming effective for all engines by 2000. Ti er 2 engine standards are phased in for engines manufactured beginning in 2001 and becomes effectiv e for all engines by 2006. Similarly, Tier 3 engin es are phased in for engines manufactured beginning in 2006, and Tier 4 engines are phased in for engines manufactured beginning in 2011.B-10 1. the Responsible Official shall submit written no tification identifying the specific portable diesel-fueled eng ines intended to be replaced with portable diesel-fueled engines certified to

the Tier 4 emission standards; and

2. for engines that power functions that will conti nue after the Tier 4 emission standards take effect, each class and category of nonroad engine, replace each portable diesel-fueled engine so identified within two years of the first engine being offered

for sale that satisfies the Tier 4 emission standar ds. ;

3. for engines that will not continue operating unt il the Tier 4 emission standards take effect, the owner of the en gine shall submit written notification to the applicable regul atory agency within 30 days of the engine ceasing operation, and is subject to the requirements below:

a. for functions that will not continue for busines s or economic reasons, the owner shall retire the engine without replacement; and b. for engines that irreparably break down, the rep lacement engine shall be subject to the requirements of sect ion 93116.3(b)(2)

(C) Notwithstanding the requirements of section 931 16.3(b)(1)(A), any company, public agency, or military base with no mo re than 25 total permitted or registered portable engines as of Dece mber 31, 2009 may select specific engines to continue to operate until December 31, 2010. The selections shall be submitt ed to the appropriate regulatory agency no later than May 31, 2010, and are subject to the requirements below:

1. The engine(s) selected shall have current, valid p ermits or registrations as of December 31, 2009; and

2. one engine with no restriction for maximum rated h orsepower;

or

3. no more than five engines not to exceed 500 cumula tive brake horsepower for the selected engines.

4. If an owner has selected one spark ignition engine per title 17 Cal. Code Regs. subsection 2456(f)(11)(A), then sec tion 93116.3(b)(1)(C)(2) shall not be used.

5. If an owner has selected less than five spark igni tion engines per title 17 Cal. Code Regs. subsection 2456(f)(11) (B) then the combined total of selected spark-ignition engin es and compression-ignition engines shall not exceed five engines with a cumulative size of 500 brake horsepower.B-11 (2) Portable diesel-fueled engines that have not be en permitted or registered prior to January 1, 2006 10 , are subject to the following requirements: shall be certified to the most stringent of the fed eral or California emission standard for nonroad engines, w ith the following exceptions:

(A) exce pt as specified in 93116.3(b)(4), 93116.3(b)(5), an d 93116.3(b)(6), and except as allowed under flexibility provisions for equipment and vehicle manufacturers and post

- manufacture marinizers pursuant to 40 CFR Part 89 or Title 13 o f the California

Code of Regulations, the portable diesel

- fueled engine shall meet the most stringent of the federal or California emi ssion standard for nonroad engines; or

,

(B) upon approval by the air pollution control officer, a diesel

- fueled portable engine not certified to an emission standard pursuant to 40

CFR Part 89 or Title 13 of the California Code of R egulations used exclusively in emergency applications or qualifying as a low

- use engine designation may only be permitted or registe red by a district. Any engine used exclusively in emergency applications or qualifying as a low

- use engine designation is subject to the requirements of section 93116.3(b)(3).

(A) engines that qualify under section 93116.3(b)(4 );

(B) engines that qualify under section 93116.3(b)(5 );

(C) engines built under flexibility provisions for equipment and vehicle manufacturers and post-manufacture marinizers pursu ant to 40

CFR Part 89 or Title 13 of the California Code of R egulations; or

(D) certified engines that lost permit exemption du e to a change in

district rules.

(3) Except as provided in section 93116.3(b)(1)(B), portable certified dieselfueled engines used exclusively in emergency applic ations or qualifying as low-use engines shall satisfy one of the followi ng requirements by January 1, 2020:

(A) the portable diesel-fueled engine is certified to Tier 4 emission standards for newly manufactured nonroad engines; or (B) the portable diesel-fueled engine is equipped w ith a properly functioning level-3 verified technology; or (C) the portable diesel-fueled engine is equipped w ith a combination of verified emission control strategies that have been verified together to achieve at least 85 perce nt

reduction in diesel PM emissions.B-12 (4) Engines operated in California between March 1, 200 4 and October 1, 2006 may be permitted or registered by a district o r registered in the Statewide Portable Equipment Registration Program u ntil 12/31/09 if they meet an emission standard pursuant to 40 CFR P art 89 or Title 13 of the California Code of Regulation s.

(5 4 ) Upon approval by the air pollution control office r, a district may permit or register engines operated in California between Mar ch 1, 2004 and October 1, 2006 that are not certified to an emissi on standard pursuant

to 40 CFR Part 89 or Title 13 of the California Code of Regulations. Engines that have never been permitted or registere d may be permitted or registered by a district or registered in the St atewide Portable Equipment Registration Program if they are certifie d to the on-road emission standards pursuant to 40 CFR Part 86, or t he equivalent category in Title 13 of the California Code of Regu lations.

(6 5 ) An engine owner, operator, dealer, or distributor may permit or register an engine not meeting the most stringent emission s tandard providing the following are met:

(A) The engine met the most stringent emission stan dard in effect prior to the change for that horsepower range; and

(B) The application for permit or registration of t he engine is submitted

within six months of the effective date of the chan ge in emission

standards.

(c) Fleet Requirements

(1) Each fleet is subject to and shall comply with the following weighted PM emission fleet averages expressed as grams per brak e horsepower-hour (g/bhp-hr) by the listed compliance dates:

Fleet Standard Compliance Date Engines <175 hp (g/bhp-hr) Engines > 175 to

749 50 hp (g/bhp-hr) Engines >750 hp

(g/bhp-hr)

1/1/13 0.3 0.15 0.25

1/1/17 0.18 0.08 0.08

1/1/20 0.04 0.02 0.02

(2) For the purposes of this regulation, the portab le diesel-fueled engines affected by the fleet provisions of this regulation include all portable diesel-fueled engines operated in California, inclu ding portable dieselfueled engines registered with the Statewide Portab le Equipment Registration Program or permitted by or registered with a district.B-13 (3) The following portable diesel-fueled engines sh all be excluded from the fleet requirements: (A) portable diesel-fueled engines operated exclusi vely outside of California or operated only within the OCS.

(B) portable diesel-fueled engines used exclusively in emergency applications.

(C) portable diesel-fueled engines that qualify as low-use engines.

(4) Portable diesel-fueled engines that qualify as low-use engines and subsequently exceed the allowed hours of operation in a calendar year, or portable diesel-fueled engines that are identifi ed to be used exclusively in emergency applications but subsequen tly are used in nonemergency applications, become immediately subject to the requirements of section 93116.3(c) in the year such exceedence or use occurs. For low-use engines, the hours of operatio n used for an emergency event shall not be counted toward the all owed hours of operation.

(5) Portable alternative-fueled engines may be incl uded in a fleet if the engine satisfies the requirements in section 93116. 3(d)(2)(B).

(6) Portable diesel-fueled portable engines equippe d with SCR systems.

(A) The diesel PM fleet emission standards in secti on 93116.3(c)(1) do not apply to:

1. portable diesel-fueled engines equipped with pro perly operating SCR systems as of January 1, 2004; and

2. with the approval of the Executive Officer, port able dieselfueled engines equipped with properly operating SCR systems after January 1, 2004.

(B) At the request of the Responsible Official, por table diesel-fueled engine(s) equipped with a SCR system(s) may be incl uded in the company's fleet for the purpose of complying with a n applicable fleet emission standard. Once the engine(s) is inc luded in a fleet, compliance with applicable fleet emission standards shall always include these diesel-fueled portable engine(s).

(C) For all diesel-fueled portable engines equipped with SCR systems, the following information shall be submitted to the Executive Officer to demonstrate that the SCR system is operating pro perly:

1. Tests results for NOx, PM, and ammonia slipB-14 a. the following tests methods shall be used to dem onstrate compliance:

i. NOX shall be measured with CARB test method100 dated July 1997, or equivalent districtapproved test method; and

ii. diesel PM shall be measured with CARB testmethod 5 dated July 1997 or equivalent districtapproved test method. For the purposes of this requirement, only the probe catch and filter catch ("front half") is used to determine the emission rate, g/bhp-hr, and shall not include PM captured in the impinger catch or solvent extract; and

iii. ammonia slip shall be measured with Bay Area A ir Quality Management District Source Test Procedure ST-1B, Ammonia Integrated Sampling, dated January 1982, or other equivalent district approved test method.

b. the duration of the emission test shall be suffi cient to document the typical operation of the portable dies elfueled engine(s); and

c. testing shall be performed at the frequency requ ired by the permit or registration. In no event shall the time between emission tests exceed three years.

(7) Beginning on January 1, 2013, the weighted aver age PM emission rate

for the fleet cannot exceed the fleet standard that is in effect. Changes in the fleet, including portable engine additions a nd deletions, shall not result in noncompliance with this standard.

(d) Fleet Average Calculations

(1) General Provisions

(A) The average PM emission factor for the fleet is determined by the following formula:

∑ Summation for each portable engine in the fleet (b hp x emission factor)

∑ Summation for each portable engine in the fleet (bh p)

where:

bhp = maximum rated horsepower.

emission = diesel PM emission rate, as determined below:B-15 factor

(B) The following diesel PM emission rates shall be used with the above formula to determine the weighted average fle et emission

rate:

1. for portable diesel-fueled engines certified to a nonroad engine standard, the results of emission measuremen ts submitted to either the U.S. EPA or CARB for the pu rposes of satisfying the appropriate emission standard; or

2. for Tier 1 engines less than 175 bhp for which n o particulate matter emission standard exists, an emission rate o f 0.87 g/bhp-hr shall be used for engines less than 120 bh p and 0.46 shall be used for engines 120 to 174 bhp; or

3. for engines built under the flexibility provisio ns for equipment and vehicle manufacturers and post-manufacture mari nizers pursuant to 40 CFR Part 89 or Title 13 of the Calif ornia Code of Regulations that do not have a family name indic ated on the engine, the emission standard of the tier level to which the engine was built shall be used; or

2 4 . results from emission measurements from a verifie d emission control strategy may be used in conjunctio n with engine emission information; or

3 5 . for portable diesel-fueled engine(s) equipped wit h SCR system(s), results from valid emission tests.

(2) The following incentives may be used to revise the fleet average, as

outlined below:

(A) Where equipment uses grid power for more than 2 00 hours in lieu of operating a portable diesel-fueled engine for a given project, the time period grid power is used may be used to r educe each affected engine's emission factor. The emission fa ctor for each affected portable engine will be reduced proportion ally by the percentage of time the equipment uses grid power. To receive credit for grid power in the fleet calculation, the recordkeeping and reporting requirements in section 93116.4(c)(3) sha ll be satisfied.

(B) Alternative-fueled portable engines

1. Alternative-fueled portable engines operating 10 0 or more hours may be included toward determining compliance with the applicable fleet emission standards. A diesel PM

emission rate of zero shall be used in the fleet ca lculations for these engines.B-16 2. Alternative-fueled portable engines operating 10 0 or more hours per calendar year and added to a fleet prior to January 1, 2009, may be counted twice in the company's flee t average determination toward compliance with the 20 13 and

2017 fleet emission standards. The alternative-fue led engine shall be certified to meet a federal or Cali fornia standard for newly manufactured nonroad engines pur suant

to 40 CFR Part 89 or Title 13 of the California Cod e of Regulations.

(B) Portable diesel-fueled engines certified to Tie r 4 nonroad engine standards that are added to a fleet prior to Januar y 1, 2015, may be counted twice in the company's fleet average det ermination toward compliance with the 2013 and 2017 fleet emis sion

standards.

Authority cited: Sections 39600, 39601, 39650, 396 58, 39659, 39666, 41752, 43013 and 43018 Health and Safety Code. Reference: Secti ons 39650, 39666, 41752, Health and Safety Code.

§ 93116.3.1 Compliance Flexibility for Diesel PM Standards.

If the Executive Officer finds, based on verifiable information from the engine manufacturer, distributor, or dealer, that current model year engines meeting the

current emission standards are not available or not available in sufficient numbers or in a sufficient range of makes, models, and hors epower ratings, then the Executive Officer may allow the sale, purchase, or installation of a new stock engine meeting the emission standards from the prev ious model year to meet the emission standards in section 93116.3(b).

Authority cited: Sections 39600, 39601, 39650, 396 58, 39659, 39666, 41752, 43013 and 43018 Health and Safety Code. Reference: Secti ons 39650, 39666, 41752, Health and Safety Code.

§ 93116.4 Fleet Recordkeeping and Reporting Requirements.

(a) The owner or operator of a fleet is not subject to the requirements of this section if each portable diesel-fueled engine in th e fleet satisfies any one of the following requirements:

(1) the portable diesel-fueled engine is certified to Tier 4 emission standards for newly manufactured nonroad engines; or

(2) the portable diesel-fueled engine is equipped w ith a properly functioning level-3 verified technology; orB-17 (3) the portable diesel-fueled engine is equipped w ith a combination of verified emission control strategies that have been verified together to achieve at least 85 percent reduction in diesel PM emissions.

(b) Portable diesel-fueled engine(s) equipped with properly operating SCR system(s) shall be excluded from the requirements o f section 93116.4(a) if the engine(s) is not subject to section 93116.3(c)( 1).

(c) Effective January 1, 2012, the Responsible Offi cial of a fleet shall:

(1) Keep and maintain records for:

(A) alternative-fueled portable engines used as par t of a company's fleet average, except as provided in section 93116. 4(d); and

(B) portable diesel-fueled engines affected by the use of electrification;

and

(C) portable diesel-fueled engines qualifying as lo w-use engines; and

(D) portable diesel-fueled engines used exclusively in emergency applications.

(2) The Responsible Official, for all portable engi nes subject to section 93116.4(c)(1), shall:

(A) install or cause to be installed and properly m aintained on each portable engine subject to recordkeeping a non-rese ttable hourmeter; and

(B) maintain on a calendar year basis a record of t he total hours of operation for each portable engine. If the portabl e engine is used out-of-state, then the records may account for oper ation within California only, excluding operation within the OCS ; and

(C) maintain all required records at a central plac e of business for five years. The records shall clearly identify each por table engine subject to the recordkeeping requirement as well as the annual hours of operation. These records are to be made a vailable, upon request for inspection, to local air pollution cont rol district or CARB personnel. The requested records shall be provided to the appropriate personnel within ten business days of t he request.

(3) The Responsible Official of a fleet electing to use electrification in determining the fleet average shall:B-18 (A) notify the Executive Officer identifying the da tes, location, duration of the project, and a description of the project th at will rely on electrification instead of using portable diesel-fu eled engines. The notification shall be provided prior to the start o f the project; and

(B) identify each affected portable diesel-fueled e ngine, including: make, model, serial number, year of manufacture for each engine, emission factor (g/bhp-hr) and district permit or S tate/district registration number; and

(C) shall clearly identify the electrification acti vity, including indicating the amount of electricity used and the time period for the project;

and

(D) shall retain copies of contracts or other docum entation, with the project proponent and/or applicable utility, suppor ting the use of grid power.

(4) Test results for SCR compliance shall be mainta ined at a central place of business for five years. At the request of CARB or district personnel, the Responsible Official shall have three business days to provide a copy of

the most recent test results.

(d) Effective January 1, 2008, for alternative-fuel ed engines added to a fleet prior to January 1, 2009, the Responsible Official shall:

(1) install or cause to be installed and properly m aintained on each portable engine subject to recordkeeping a non-resettable ho ur-meter; and

(2) maintain on a calendar year basis a record of t he total hours of operation for each portable engine. If the portable engine i s used out-of-state, then the records may account for operation within C alifornia only, excluding operation within the OCS; and

(3) maintain all required records at a central plac e of business for five years. The records shall clearly identify each portable en gine subject to the recordkeeping requirement as well as the annual hou rs of operation. These records are to be made available, upon reques t for inspection, to local air pollution control district or CARB person nel. The requested records shall be provided to the appropriate person nel within ten business days of the request.

(e) The Responsible Official of the fleet shall pro vide the following reports to the

Executive Officer:

(1) A status report, due to the Executive Officer b y March 1, 2011, that includes the following items:B-19 (A) the fleet's weighted average PM emission rate f or the 2010 calendar year, including a summary for each portabl e engine that is part of the fleet and each engine's emission rate ( g/bhp-hr); and

(B) inventory of portable engines in the fleet iden tifying whether the engine is state-registered or permitted/registered with the district. Alternative-fueled engines should be identified by fuel type. The inventory shall identify the make, model, serial nu mber, year of manufacture, primary fuel type, emission factor (g/ bhp-hr), and district permit or State/district registration numb er for each engine to be used in the fleet average determination; and

(C) identify, if applicable, each portable diesel-f ueled engine that the owner commits to replacing with a Tier 4 engine, in cluding: make, model, serial number, year of manufacture for each engine, and district permit or State/district registration numb er; and

(D) listing of portable diesel-fueled engines, if a pplicable, used exclusively in emergency applications. The listin g shall identify each engine claiming use only in emergency applicat ions, including: make, model, serial number, year of ma nufacture for each engine, emission factor (g/bhp-hr), and distri ct permit or State/district registration number; and

(E) listing of portable diesel-fueled engines, if a pplicable, satisfying the low-use engine requirements. The listing shall id entify each engine, including: make, model, serial number, ye ar of manufacture for each engine, emission factor (g/bhp -hr), and district permit or State/district registration numb er; and

(F) listing of portable alternative-fueled engines, if applicable, added to the fleet prior to January 1, 2009, pursuant to sec tion 93116.3(d)(2)(B)2. The listing shall identify each engine, including: make, model, serial number, year of manufacture for each engine, U.S. EPA engine family name, emission factor (g/bhp -hr), and district permit or State/district registration numb er; and

(G) for portable diesel-fueled engine(s) equipped w ith SCR system(s), documentation demonstrating that the SCR system is operating properly.

(2) A statement of compliance signed by the Respons ible Official that the fleet standards are being achieved and a summary th at identifies each portable engine in the fleet and the associated emi ssion rate (g/bhp-hr). Portable engines included in the fleet are those th at are part of the fleet

at the time the fleet standard became effective. T he engine identification

shall include, at a minimum, the make, model, seria l number, and year of manufacture for each engine. Alternative-fueled en gines should be identified by fuel type. The statements of complia nce are due to the Executive Officer by the following dates:B-20 (A) March 1, 2013, for the fleet standards that bec ome effective January 1, 2013; and

(B) March 1, 2017, for the fleet standards that bec ome effective January 1, 2017; and

(C) March 1, 2020 for the fleet standards that beco me effective January 1, 2020.

(3) The Responsible Official shall identify to the Executive Officer, as part of each compliance report, the specific portable diese l-fueled engines, if any, used exclusively in emergency applications and the specific portable diesel-fueled engines, if any, claimed to be low-use engine. The list shall include for each portable diesel-fue led engine: the make, model, serial number, year of manufacture for each engine, emission factor (g/bhp-hr), and district permit or State/dis trict registration number.

(4) The Responsible Official shall identify to the Executive Officer, as part of each compliance report, the specific portable diese l-fueled engines, if any, excluded from the fleet because the portable d iesel-fueled engine operated exclusively outside of California or opera ted only within the OCS. The list shall include for each portable dies el-fueled engine: the make, model, serial number, year of manufacture, an d, district permit or State/district registration number for each engine.

(5) If compliance with the fleet average includes t he use of electrification, the Responsible Official shall provide documentatio n supporting the

credit claimed for electrification.

(6) As part of each compliance report, the Responsi ble Official shall, if applicable, certify the following:

(A) all portable alternative-fueled engines include d in the fleet average operated at least 100 hours during the previous 12 months prior to the fleet emission standard becoming effective.

(B) for all portable diesel-fueled engines used exc lusively in emergency applications, the engines were used only for emerge ncy applications.

(C) for all portable diesel-fueled engines using th e low-use designation, the engines operated no more than 80 hours for the reporting period.

(D) for all portable diesel-fueled engines equipped with SCR, the engine complies with applicable district or Statewi de Portable Equipment Registration Program requirements.

(7) After March 1, 2013, the APCO or the Executive Officer may require the submittal of information demonstrating compliance w ith the applicableB-21 fleet standard. Upon receiving the request, the Re sponsible Official shall provide the requested information within 30 days.

(f) For fleets that are exempted from the requireme nts of section 93116.4 pursuant to section 93116.4 (a), the Responsible Of ficial shall certify that all portable diesel-fueled engines in the fleet satisfy the requirements of section 93116.4(a). The Responsible Official shall provide the certification statement and a list of the portable diesel-fueled engines in the fleet to the Executive Officer when the fleet initially satisfies the requ irements of section 93116.4(a). The list of engines shall identify the make, model, serial number, and district permit or State/district registration number for ea ch engine.

Authority cited: Sections 39600, 39601, 39650, 396 58, 39659, 39666, 41752, 43013 and 43018 Health and Safety Code. Reference: Secti ons 39650, 39666, 41752 Health and Safety Code.

§ 93116.5 Enforcement of Fleet Requirements.

(a) Both the Executive Officer and the APCO have th e authority to review or seek

enforcement action for violation of the fleet emiss ion standard.

(b) The CARB will make available to the districts t he information the Responsible Official has provided to CARB to demonstrate compli ance with the fleet

standard.

Authority cited: Sections 39600, 39601, 39650, 396 58, 39659, 39666, 41752, 43013 and 43018 Health and Safety Code. Reference: Secti ons 39650, 39666, 41752 Health and Safety Code.

.

### Appendix C



## Proposed Regulation Order

REGULATION FOR IN-USE OFF-ROAD DIESEL VEHICLES

California Air Resources Board

Sections 2449, title 13, California Code of Regulat ions.

(Note: Proposed amendments to the regulation are i dentified below. Underline is used to indicate the proposed additions. Strikeout is used to indicate proposed deletions from the regulation text.)C-1 Proposed Regulation Order

REGULATION FOR IN-USE OFF-ROAD DIESEL VEHICLES

Amend sections 2449 and 2449.3 in title 13, article 4.8, chapter 9, California Code of Regulations (CCR) to read as follows: Sections 244 9.1 and 2449.2 are not being amended so they are not included. The symbol “*****” indicates that regulatory language not being amended is not shown.

Article 4.8 In-Use Off-Road Diesel-Fueled Fleets

Section 2449 General Requirements for In-Use Off-Ro ad Diesel-Fueled Fleets

(a) Purpose

The purpose of this regulation is to reduce diesel particulate matter (PM) and criteria pollutant emissions from in-use off-road diesel-fue led vehicles.

(b) Applicability

Except as provided in the paragraphs below, the reg ulation applies to any person, business, or government agency who owns or operates within California any dieselfueled or alternative diesel fueled off-road compre ssion ignition vehicle engine with maximum power of 25 horsepower (hp) or greater that is used in a two-engine crane or to provide motive power in a workover rig or to provide motive power in any other motor vehicle that (1) cannot be registered and dri ven safely on-road or was not designed to be driven on-road, and (2) is not an im plement of husbandry or recreational off-highway vehicle. Unless they are workover rigs or two-engine cranes or two-engine water well drilling rigs , vehicles that were designed to be driven on-road, have on-road engines, and still mee t the original manufacturer’s onroad engine emission certification standard are con sidered on-road and are specifically excluded from this regulation, even if they have been modified so that they cannot be registered and driven safely on-road . Off-road vehicles that were designed for off-road use and have off-road engines are considered off-road and are subject to this regulation, even if they have been modified so that they can be driven safely on-road.

This regulation also applies to any person who sell s a vehicle with such an engine

within California.

Persons who provide financing in the form of “finan ce leases,” as defined in California Uniform Commercial Code Section 10103(a) (7), for in-use off-road dieselfueled vehicles, do not “own” such vehicles for the purposes of this regulation.C-2

Vehicles with engines subject to this regulation ar e used in construction, mining, rental, government, landscaping, recycling, landfil ling, manufacturing, warehousing, ski industry, composting, airport ground support eq uipment, industrial, and other operations. The regulation does not cover locomotives, commerci al marine vessels, marine engines, recreational vehicles, or combat an d tactical support equipment. The regulation also does not cover stationary or po rtable equipment, equipment or vehicles used exclusively in agricultural operation s, or equipment already subject to the Regulation for Mobile Cargo Handling Equipment at Ports and Intermodal Rail Yards. Off-road diesel vehicles owned and operated by an individual for personal, non-commercial, and non-governmental purposes are e xempt from the provisions of this regulation.

(c) Definitions

*****

(59) “Two-Engine Crane” means a mobile diesel-powered machine with a hoisting mechanism mounted on a specially construct ed truck chassis or carrier; one engine provides motive power, and a se condary engine is used to lift and move materials and objects.

(60) “Two-Engine Water Well Drilling Rig” means a mobile diesel-powered drilling rig owned by a water well drilling contrac tor with a current, valid C-57 license issued by the Contractors State License Boa rd of California and used exclusively to drill water wells with a drilling me chanism mounted on a specially constructed truck chassis or carrier; one engine provides motive power, and a secondary engine is used to power the drilling mechanism.

(60 1 ) “Verified Diesel Emission Control Strategy” (VDEC S) means an emissions control strategy, designed primarily for the reduction of diesel PM emissions, which has been verified pursuant to the Verification Procedures

. VDECS can be verified to achieve Level 1 diesel PM reductions (25 percent), Level 2 diesel PM reductions (50 percent), or Level 3 diesel PM reductions (85 percent). VDECS may also be verified to achiev e NOx reductions. See also definition of Highest Level VDECS.

(61 2 ) “VDECS Failure” means the condition of not achieving the emissions

reductions to which the VDECS is verified. Such co ndition could be due to inappropriate installation, damage, or deterioratio n during use. If a Level 3 VDECS is emitting visible smoke, it should be assum ed to have failed.C-3

(62 3 ) “Workover rig”

means a mobile self-propelled rig used to perform one or more remedial operations, such as deepening, pluggi ng back, pulling and resetting liners, on a producing oil or gas well to try to restore or increase the well’s production.

*****

(e) Special Provisions/Compliance Extensions

*****

(14) Two-Engine Cranes – Both engines in a two-engine crane are subject to this regulation. For purposes of the rounding provi sions in section 2449.1(a)(2)(a)7., neither engine in the two-engine crane is required to be turned over until the horsepower required to be tur ned over under section 2449.1(a)(2)(A) is at least half the sum of the max imum power of the primary and secondary engine in the two-engine crane.

(15) On-road Registered Vehicles with Off-road Engi nes – If a workover rig or other on-road registered vehicle subject to this re gulation with an off-road engine is repowered and will be registered and driv en on-road, it must be repowered with an on-road certified engine of the s ame model year or newer as the engine being replaced.

(16) Two-Engine Water Well Drilling Rigs – Both engines in a two-engine water well drilling rig are subject to this regulat ion. For purposes of the rounding provisions in section 2449.1(a)(2)(a)7, ne ither engine in the twoengine water well drilling rig is required to be tu rned over until the horsepower required to be turned over under section 2449.1(a)( 2)(A) is at least half the sum of the maximum power of the primary and seconda ry engine in the twoengine water well drilling rig.

*****

(g) Reporting

– Reporting is required for each and every fleet. La rge and medium fleets may report separately for different divisions or subsidiaries of a given company or agency. Fleet owners may submit reporting information using forms (paper or electronic) approved by the Executive Officer.

(1) Initial reporting – All fleet owners must submit the information in section 2449(g)(1)(A) through (G) to ARB by their initial r eporting date. In the initial reporting, fleet owners must report information reg arding each vehicle subject to this regulation that was in their fleet on March 1, 2009. Systems or non-C-4 diesel fueled vehicles that are used in place of a vehicle that would be subject to this regulation must also be reported. The init ial reporting date for large fleets is April 1, 2009. The initial reporting dat e for medium fleets is June 1, 2009. The initial reporting date for small fleets is August 1, 2009. Notwithstanding the aforementioned reporting dates, the initial reporting date for two-engine water well drilling rigs is August 1 , 2010. Reports must include the following information:

(A) Fleet Owner

– 1. Fleet owner’s name; 2. Corporate parent name (if applicable); 3. Corporate parent taxpayer identification number (if applicable); 4. Company taxpayer identification number;

5. Address; 6. Responsible person name; 7. Responsible person title; 8. Contact name; 9. Contact phone number; 10. Contact email address (if available); 11. Whether the fleet owner is a low population cou nty local municipality fleet; 12. Whether the fleet owner has an approval from th e Executive Officer to be treated as if in a low-population county; 13. Whether the fleet owner is a non-profit trainin g center; 14. Whether the fleet has an idling policy document ed and available to employees; 15. Whether the fleet is using a fuel-based strateg y as an emissions control strategy; 16. Whether the fleet is a Captive Attainment Area Fleet.

(B) Vehicle List – A list of each vehicle subject to this regulatio n along with the following information for each vehicle: 1. Vehicle type; 2. Vehicle manufacturer;

3. Vehicle model; 4. Vehicle model year; 5. Vehicle serial number; (i.e., for workover rigs and two-engine cranes and two-engine water well drilling rigs , vehicle identification number);

6. Whether the vehicle is a low-use vehicle; 7. If the vehicle is a low-use vehicle, whether the vehicle was operated outside of California during the previous complianc e year; 8. Whether the vehicle is a specialty vehicle; 9. Whether the vehicle is a vehicle used solely for emergency operations;

10. Whether the vehicle is a dedicated snow removal vehicle; 11. Whether the vehicle is used for agricultural op erations for over half of its annual operating hours;C-5 12. Whether the vehicle is an electric vehicle that replaced a diesel vehicle; 13. Whether the vehicle has been retrofit, repowere d, or replaced with Surplus Off-road Opt-in for NOx program funding and , if so, the start and end dates of the contract period; 14. Whether the vehicle has been retrofit, repowere d, or replaced with Carl Moyer program funding; 15. Whether the vehicle has been retrofit through a demonstration program, and - if so - which program; 16. EIN if it has already been assigned. 17. License plate number, if vehicle has a license plate.

*****

Note: Authority cited: Sections 39002, 39515, 395 16, 39600, 39601, 39602, 39650,

39656, 39658, 39659, 39665, 39667, 39674, 39675, 40 000, 41511, 42400, 42400.1,

42400.2, 42400.3.5, 42402, 42402.1, 42402.2, 42402. 4, 42403, 43000, 43000.5, 43013, 43016, 43018, and 43018.2 , Health and Safety Code. Reference: Sections

39002, 39515, 39516, 39600, 39601, 39602, 39650, 39 656, 39657, 39658, 39659,

39665, 39667, 39674, 39675, 40000, 41511, 42400, 42 400.1, 42400.2, 42402.2, 43000, 43000.5, 43013, 43016, 43018, and 43018.2, H ealth and Safety Code.

§ 2449.3. Surplus Off-Road Opt-In for NOx (SOON) Pr ogram

(a) Purpose

*****

(b) Applicability

*****

(1) District Applicability

– *****

(2) Fleet Applicability – Section 2449.3 applies to a fleet that: (A) Operates individual vehicles within the air dis trict; (B) As of January 1, 2008, on a statewide level, co nsisted of more than 40 percent Tier 0 and Tier 1 vehicles, and; (C) Has a statewide fleet with maximum power greate r than 20,000 horsepower (hp), excluding the hp from engines in t wo-engine cranes and the hp from single engine cranes formerly subject t o the Cargo Handling Equipment Regulation and the hp from two-engine wat er-well drilling rigs

.

***** Note: Authority cited: Sections 39002, 39515, 39516 , 39600, 39601, 39602, 43000, 43000.5, 43013, 43016 and 43018, Health and Safety Code. Reference: SectionsC-6

39002, 39515, 39516, 39600, 39601, 39602, 39650, 39 656, 39657, 39658, 39659, 39665, 39667, 43000, 43000.5, 43013, 43016 and 4301 8, Health and Safety Code.

### Appendix D



## Proposed Regulation Order

REGULATION FOR IN-USE ON-ROAD HEAVY-DUTY DIESEL VEH ICLES

California Air Resources Board

Sections 2025, title 13, California Code of Regulat ions.

(Note: Proposed amendments to the regulation are i dentified below. Underline is used to indicate the proposed additions. Strikeout is used to indicate proposed deletions from the regulation text.)D-1 PROPOSED REGULATION ORDER TO REDUCE EMISSIONS OF DIESEL PARTICULATE MATTER, OXIDES OF NITROGEN, AND OTHER

POLLUTANTS FROM IN-USE HEAVY-DUTY DIESEL-FUELED VEH ICLES

Amend section 2025, in title 13, article 4.5, chapt er 1, California Code of Regulations (Cal. Code Reg.) to read as follows: (Note that on ly subsection 2025(c) is being revised, so the subsections that follow are not inc luded.)

Section 2025. Regulation to Reduce Emissions of Die sel Particulate Matter,

Oxides of Nitrogen and Other Criteria Pollutants, f rom In-Use Heavy-Duty Diesel-Fueled Vehicles

(a) Purpose.

The purpose of this regulation is to reduce emissio ns of diesel particulate matter (PM), oxides of nitrogen (NOx) and other cri teria pollutants, and greenhouse gases from in-use diesel-fueled vehicles.

(b) Scope and Applicability.

(1) Except as provided in subsection (c), this regu lation applies to any person, business, federal government agency, school distric t or school transportation provider that owns or operates, leases, or rents, a ffected vehicles that operate in California. The regulation also applies to pers ons that sell affected vehicles in California. Affected vehicles are those that op erate on diesel-fuel, dual-fuel, or alternative diesel-fuel that are registered to b e driven on public highways, were originally designed to be driven on public hig hways whether or not they are registered, yard trucks with on-road or off-roa d engines, both engines of two engine sweepers, schoolbuses, and have a manufa cturer’s gross vehicle weight rating (GVWR) greater than 14,000 pounds. A ffected vehicles also include shuttle vehicles defined in section 2025(d) (68).

(c) Exemptions

This regulation does not apply to:

(1) Vehicles subject to the solid waste collection vehicle rule commencing with title 13, CCR, section 2021;

(2) On-road diesel-fueled heavy-duty vehicles over 14,000 pounds owned or operated by a municipality, that comply with the Be st Available Control Technology (BACT) requirements of title 13, section 2022.1(a)(1);

(3) Vehicles subject to the fleet rule for transit agencies commencing with title 13, CCR, section 2023;

(4) Vehicles subject to the rule for mobile cargo h andling equipment at ports and intermodal rail yards commencing with title 13, CCR , section 2479;

(5) Military tactical support vehicles, as describe d in title 13, CCR, section 1905;D-2

(6) Authorized emergency vehicles as described in C alifornia Vehicle Code (Veh. Code), section 165;

(7) Off-road vehicles subject to title 13, CCR, sec tions 2401, 2411, 2421, 2432, and 2449;

(8) Dedicated snow-removal vehicles as defined in s ection 2025(d)(18);

(9) Two-engine cranes as defined in title 13, CCR, section 2449(c)(56 9 );

(10) Historic vehicles as defined in section 2025(d )(41);

(11) Motor homes for non-commercial private use;

(12) Vehicles subject to the regulation for drayage trucks commencing with title 13, CCR, section 2027 until January 1, 2021; and

(13) Trucks with a GVWR of 19,500 pounds or less wi th originally equipped pick-up beds used exclusively for personal use, non-commerc ial, non-governmental

use.

(14) Two-engine water well drilling rigs as defined in title 13, CCR, section 2449(c)(60);

## Appendix E

Discussion of Emission Factor for Tier 1 Engines <1 75 bhp.E-1 Appendix E

The Portable Diesel Engine ATCM requires owners to meet emission standards for PM, on a fleet average basis, starting in 2013 and continuing in 2017 and

2020. Emission factors to be used to demonstrate c ompliance with the

standards are those submitted to U.S. EPA and/or AR B for the purposes of engine certification. However, since no PM standar d exists for Tier 1 engines under 175 bhp, there are no certification emission factors available. There are approximately 6,000 engines in this category regist ered in the statewide registration program.

To determine emission factors for these engines, we began with PM emission factors that were developed by MSCD for their Off-R oad Mobile Equipment ATCM and adjusted them for applicability to the Por table Engine ATCM. They used an equation that begins with a zero-hour (new) Carl Moyer Program emission factor which is adjusted to account for em issions deterioration and changes in fuel.

PM deteriorated emission factor = [(useful life x d eterioration factor x fuel correction) + zero hour emission factor] / 0 .8

We have decided to use the above equation to determ ine the PM emission factor to be used for fleet averaging purposes for engines in the 50 to 174 bhp size range, except that we will not divide by 0.8 becaus e it was shown that actual test results of engines in other size ranges were found to be about 20 percent lower than the emission standard levels. This “adjustmen t factor” was used because the Off-road Mobile Equipment ATCM requires emissio n standard values to be used in order to meet their average fleet limit. H owever, since the Portable Engine ATCM requires actual tested values to be use d (instead of emission standard values), we have determined not to use thi s adjustment factor.

If there is PM emission data from the engine manu facturer, then we will evaluate this data for the purposes of compliance with the A TCM on a case by case basis. In certain cases, we may decide to use this data fo r the fleet average instead of

the deteriorated PM default values.

The following PM emission factors will be used for calculating the ATCM fleet averages for engines in the 50 to 174 bhp range:

For 50-119 bhp (8000 hr x 0.0000502 g/bhp-hr 2 x 0.80) + 0.552 g/bhp-hr = 0.87 g/bhp-hr

For 120-174 bhp (8000 hr x 0.0000276 g/bhp-hr 2 x 0.80) + 0.274 g/bhp-hr = 0.46 g/bhp-hrE-2

Where: 8000 hours is the useful life of the engine,

0.80 is a factor to adjust for improvement in diese l fuel in California since engine certification, and

0.0000502 g/bhp-hr 2 and 0.0000276 g/bhp-hr 2 are the deterioration factors from the Off-Road Model which is used by AR B to develop offroad emission inventories

0.552 g/bhp-hr and 0.274 g/bhp-hr are the new or ze ro-hour PM emission factors as published in the most current C arl Moyer Program Guidelines dated April 2008.

## Appendix F

List of AcronymsF-1 Appendix F

List of Acronyms

AB Assembly Bill AQIA Air Quality Impact Analysis

ARB or Board Air Resources Board

ARB staff or Staff Air Resources Board Staff Portable Engine ATCM Airborne Toxic Control Measure BACT Best Available Control Technology bhp Brake-horsepower

CAA Federal Clean Air Act

CAPCOA California Air Pollution Control Officers As sociation CCR California Code of Regulations CEQA California Environmental Quality Act CFR Code of Federal Regulations

CO Carbon Monoxide

Districts Air Pollution Control Districts or Air Qu ality Management

Districts DOF Department of Finance g/bhp-hr Grams per Brake Horsepower-hour

HAP Hazardous Air Pollutant HC Hydrocarbons HSC California Health and Safety Code

ISOR Initial Statement of Reasons

LAER Lowest Achievable Emission Rate MACT Maximum Achievable Control Technology NMHC Non-methane Hydrocarbons NOx Oxides of Nitrogen

NSR New Source Review

OCS Outer Continental Shelf

PEPS Provider of Essential Public Service PERP Statewide Portable Equipment Registration Prog ram

PM Particulate Matter ppmvd Parts Per Million by Dry Volume PSD Prevention of Significant Deterioration

SB Senate Bill SCAQMD South Coast Air Quality Management District

SOx Oxides of Sulfur

STW State Territorial Waters Statewide PERP Regulation Statewide Portable Equipm ent Registration Program Regulation

TACs Toxic Air Contaminants TSE Tactical Support Equipment

U.S. EPA United States Environmental Protection A gency UTM Universal Transverse Mercator VOC Volatile Organic Compounds Workgroup Portable Equipment Workgroup